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Shell to set up 2,000 retail outlets in India
Wednesday, 08 December 2004, 20:30 IST
BANGALORE: Shell India Ltd, the Indian subsidiary of the global Royal Dutch Shell BV, will set up 2,000 retail outlets across the country for marketing petrol, diesel and auto gas.
In the first phase, the company will invest 
2.5 billion ($57.2 million) over the next 12 months to set up several petrol stations in south India, including in remote areas and on state and national highways.
"The second and third phases will be taken up on the success of the first phase. We have been granted licences for 2,000 retail outlets throughout the country in coming years. There is no time limit set for opening them," Shell India chairman Vikram Singh Mehta told reporters here.
"A majority of the outlets, however, will be company-owned and operated, while the rest may come up through the franchise route later."
Within three months of securing the license, the only multinational firm in the marketing of petro products in India launched its first retail outlet in Bangalore last week.
"For the first time in India, we have introduced the double walled fibreglass underground tank, reinforced by plastic for maximum safety and security. The flexible pipeline system on our retail sites is leak-proof with no physical joints," Mehta said.
The $12.5-billion global oil and energy major left India in 1976, but returned in 1994 after the petroleum sector was thrown open to multinationals.
During the past decade, the company invested $850 million (38 billion) in 10 group subsidiaries to do business in a range of products, including lubricants, liquefied petroleum gas, liquefied natural gas, bitumen and marketing of petrol and diesel.
Shell also forayed into IT for outsourcing its global requirements in partnership with Wipro and IBM, besides providing technology to Indian petro firms in upstream and downstream products.
Though the company will be sourcing retail products like petrol and diesel from the Mangalore Petroleum Corporation Ltd of the ONGC, it plans to set up its own refining facility in the long term after achieving a significant market share.
"We consider India an important market. We intend to be a significant player in the retail segment," Mehta said.
"In the event of any public sector undertaking being divested, we will certainly look at it for strategic acquisition."
With the entry of Reliance, Essar and Shell in the retail distribution of petro products, the competition will intensify for state-owned oil firms for a share of the multibillion-rupee market.
Public sector giants IOC, HPCL and BPCL control around 99 percent of the market with over 20,000 outlets across the country. Reliance and Essar have started setting up their petrol pumps in select cities.
Out of a consumption of 2.2 million barrels of oil a day, India imports 1.4 million barrels.
Source: IANS
2.5 billion ($57.2 million) over the next 12 months to set up several petrol stations in south India, including in remote areas and on state and national highways.
"The second and third phases will be taken up on the success of the first phase. We have been granted licences for 2,000 retail outlets throughout the country in coming years. There is no time limit set for opening them," Shell India chairman Vikram Singh Mehta told reporters here.
"A majority of the outlets, however, will be company-owned and operated, while the rest may come up through the franchise route later."
Within three months of securing the license, the only multinational firm in the marketing of petro products in India launched its first retail outlet in Bangalore last week.
"For the first time in India, we have introduced the double walled fibreglass underground tank, reinforced by plastic for maximum safety and security. The flexible pipeline system on our retail sites is leak-proof with no physical joints," Mehta said.
The $12.5-billion global oil and energy major left India in 1976, but returned in 1994 after the petroleum sector was thrown open to multinationals.
During the past decade, the company invested $850 million (38 billion) in 10 group subsidiaries to do business in a range of products, including lubricants, liquefied petroleum gas, liquefied natural gas, bitumen and marketing of petrol and diesel.
Shell also forayed into IT for outsourcing its global requirements in partnership with Wipro and IBM, besides providing technology to Indian petro firms in upstream and downstream products.
Though the company will be sourcing retail products like petrol and diesel from the Mangalore Petroleum Corporation Ltd of the ONGC, it plans to set up its own refining facility in the long term after achieving a significant market share.
"We consider India an important market. We intend to be a significant player in the retail segment," Mehta said.
"In the event of any public sector undertaking being divested, we will certainly look at it for strategic acquisition."
With the entry of Reliance, Essar and Shell in the retail distribution of petro products, the competition will intensify for state-owned oil firms for a share of the multibillion-rupee market.
Public sector giants IOC, HPCL and BPCL control around 99 percent of the market with over 20,000 outlets across the country. Reliance and Essar have started setting up their petrol pumps in select cities.
Out of a consumption of 2.2 million barrels of oil a day, India imports 1.4 million barrels.
Source: IANS