India: IOC Petrol Retail Market Share Grows to 48.9%
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Tuesday, 06 May 2008 |
IndianOil Corporation's marketing has cashed in by raising its overall
market share to 48.9% through an impressive 8.7% year-on-year growth in
sales volume till March 31.
Ironically though, with daily losses on fuel sales estimated at Rs 238
crore, a good marketing performance means higher losses because the company
has to retail fuels at an artificially low price set by the government.
Indications are that IndianOil could end 2008-09 by taking a hit of Rs
10,000 crore on its books if the government keeps pump prices suppressed and
international crude keeps rising.
"IndianOil's market leadership has come from its expanded reach, innovations
and consumers' increased awareness of quality and quest for better products.
XtraPremium petrol is available in 38% of our outlets and XtraMile diesel in
58%. We are selling auto-LPG through 157 outlets across 75 cities and will
be adding 100 more stations this year. We have also benefited from
successful amalgamation of IBP's business," IOC director (marketing) G C
Daga said.
IOC had acquired IBP, a standalone retailer, during the NDA regime's
disinvestment drive. On the ground, IndianOil's marketing performance was
top-notch in the industry in all fuel segments. Overall domestic sales stood
at 58.3 million tonnes, while exports stood at 3.3 million tonnes. This
marks a growth rate of 8.7% and 8.5%, respectively. Similarly in branded
motor fuels, which are costlier than normal fuels, IndianOil's market share
grew to 48.2% in petrol and 58.6% in diesel. In volume terms, growth stood
at 89% for petrol and 65% for diesel. In auto-LPG too volumes grew 53%, with
an average monthly sale of 8,000 tonnes.
Daga said the increased thrust on rural markets through the string of Kisan
Seva Kendras' too had yielded results. The number of these low-cost retail
outlets have crossed 2,500 and cover 85% of the districts and 42% tehsils in
India.
PetrolWorld 050508
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