Indian Oil Corporation (IOC), a prominent state-owned entity, is poised to diversify its offerings by launching its own brand of packaged drinking water. This initiative will see the new product sold across IOC's extensive network of more than 43,000 petrol pumps nationwide.
The move is part of a broader strategy to expand the company's non-fuel revenue streams and provide additional value-added products to customers at its retail outlets. IOC has issued an Expression of Interest (EoI) seeking partners to manage manufacturing, quality assurance, supply chain logistics, and the overall rollout of the new water brand.
Phased Rollout to Maximize Reach
The introduction of the packaged drinking water will occur in phases, commencing with IOC's highway retail outlets. These 21,435 stations, out of a total of 43,603, are identified as prime locations for "on-the-go" demand for bottled water. Following a successful establishment on highways, the product will then expand to urban and semi-urban fuel stations.
Initially, the product line will feature polyethylene terephthalate (PET) bottles in 250 ml, 500 ml, and 1-liter sizes, with the 1-liter pack expected to be the flagship offering. Looking ahead, IOC is also exploring the introduction of premium water, natural mineral water, alkaline water, and various functional hydration products, alongside additional pack sizes.
Boosting Non-Fuel Revenue
Pricing for the new bottled water will be determined by Indian Oil, aligning with its ambitious target to increase non-fuel revenue from approximately ₹200 crore to ₹760 crore. The current proposal focuses exclusively on IOC's fuel outlets, encompassing company-owned company-operated (COCO) stations, dealer-owned dealer-operated pumps, and Kisan Seva Kendras.
At this stage, the initiative does not extend to LPG agencies, institutional clients, corporate offices, e-commerce platforms, or general trade. By venturing into the fast-moving consumer goods (FMCG) segment through its existing retail infrastructure, Indian Oil joins other fuel retailers in diversifying beyond traditional petrol and diesel sales, leveraging its significant last-mile presence.