Indian Oil Corporation Ltd. (IOCL) is considering the launch of its own packaged drinking water brand across its extensive network of fuel stations in India.
The proposal is part of Indian Oil’s broader strategy to increase non-fuel revenue while providing additional products and services to customers visiting its retail outlets.
Packaged Water To Be Rolled Out In Phases
According to Indian Oil’s Expression of Interest (EoI), the company is exploring an aggregator-led revenue-sharing model for the initiative.
Under the proposed arrangement, Indian Oil would retain ownership of the brand, while selected aggregators would manage the end-to-end operations. This could include manufacturing through approved facilities, quality assurance, supply chain management, logistics and product rollout.
The company’s retail network currently covers more than 43,000 outlets nationwide, providing a large distribution platform for the proposed product.
Highway Outlets Expected To Lead
Highway fuel stations are expected to play an important role in the initial rollout because of the strong demand for drinking water among travellers and other on-the-go customers.
Indian Oil has identified around 21,435 highway retail outlets, representing nearly half of its overall network. Urban and semi-urban outlets are also expected to be covered as the rollout progresses.
The proposed initial product range includes PET bottles in:
- 250 ml
- 500 ml
- 1 litre
The 1-litre bottle is expected to be positioned as the lead product during the initial phase.
Potential Expansion Into Premium Water
Indian Oil may consider expanding the portfolio in the future depending on market response.
Potential categories mentioned in the proposal include:
- Premium packaged water
- Natural mineral water
- Alkaline water
- Functional hydration products
- Additional pack sizes
These products could allow the company to address different consumer segments beyond conventional packaged drinking water.
Focus On Non Fuel Revenue
The proposed water business is part of Indian Oil’s wider effort to strengthen revenue streams beyond fuel sales.
The company has been expanding the range of products and services available at its retail outlets. Its network has partnerships with brands across categories, including consumer goods, banking, food and entertainment.
Indian Oil has also highlighted non-fuel retail as an area of focus as mobility, urbanisation and infrastructure development continue to expand the role of fuel stations as retail destinations.
Indian Oil Has A Large Retail Footprint
Indian Oil operates a significant retail network across the country, with millions of customers visiting its facilities every day.
The company has increasingly been exploring ways to use its extensive retail footprint to offer customers additional products and services alongside conventional fuel.
A company-owned packaged water brand could therefore provide Indian Oil with another opportunity to utilise its existing network and customer traffic.
Initial Plan Limited To Fuel Outlets
At the current proposal stage, the initiative is focused specifically on Indian Oil’s fuel retail outlets.
The EoI covers different categories of outlets, including company-owned and company-operated locations, dealer-owned and dealer-operated outlets and Kisan Seva Kendras.
Other Indian Oil business channels, such as LPG agencies, institutional customers, offices, e-commerce platforms and general trade markets, are not included in the current proposal.
Indian Packaged Water Market Continues To Expand
The proposed entry comes as India’s packaged drinking water market continues to attract companies due to increasing consumer demand for branded and convenient drinking water.
Growing urbanisation, rising mobility, increasing per-capita consumption and wider availability of packaged water are among the factors supporting market expansion.
If Indian Oil proceeds with the plan, its large network of retail outlets could provide the company with a substantial distribution platform for its packaged water brand.
The proposal is currently part of the company’s EoI process, and the final rollout will depend on the outcome of the selection and implementation process.
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