India: Essar Oil Caps Retail Expansion
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Thursday, 03 November 2011 |
Essar Oil has announced that it will cap the expansion of its retail outlets to 1,700 fuel service stations. The company, which has 1,388 operational sites and 252 under construction, cited uncertainties in the fuel retail business.
“We do not wish to expand further. We will control expansion of retail network so long as auto fuel deregulation does not happen. There is lot of uncertainty in terms of auto fuel pricing,” said CEO and Managing Director Naresh Nayyar in an interview with national publication Business Standard. Nayyar added that, despite deregulation of petrol in June, the price at the pump has not reflected international changes.
Despite deregulation, Nayyar said the company has experienced strong demand for fuel in the domestic market. In the three months to September 30, sales of petrol grew 125% over the same quarter in 2010. However, the company posted a net loss of Rs 166 crore for the quarter.
PetrolWorld 02112011
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