HPCL bets on non-fuel products

Hindustan Petroleum Corp. Ltd (HPCL) is betting big on business from retailing non-fuel products. While the segment is very nascent netting Rs 10 crore, HPCL is hoping that it will grow to contribute a sizable chunk of the turnover.
In developed countries, allied retail business forms up to 60 % of the total revenue earned by fuel stations. Apart from retailing fuel, HPCL has signed up with banks and fast food companies in urban circles and is looking at stocking fertilisers, seeds and LPG cylinders in its rural fuel stations.

HPCL executive director (retail SBU) S.P. Chaudhry said the growth in non-fuel retail is expected to come out of rural stations. HPCL plans to set up 500 of these Hamara Pumps for the rural markets in the near future. At present, there are 50 such rural pumps.
Mr Chaudhry said HPCL has tied up with 15 banks who have set up their ATMs in urban stations. The revenue sharing agreement ranges from fixed rentals to a portion of the turnover in case of fast food counters. In some of its urban fuel stations, fast food chains like US Pizza and Cafi Coffee Day have opened shop.

HPCL has also embarked on a beautification drive of all its petrol stations to bring it under the Club HP brand umbrella.
HPCL has already given a facelift to 150 such outlets at Rs 10 lakh per station. It is expected to cover 500 stations by 2005.