Supplyco to expand petroleum retailing in Kerala

The day when Supplyco lays claim to be the largest network of petroleum retail outlets in the State is not far going by the ambitious plans chalked out by the public sector undertaking.

Intent on augmenting its income, the Kerala State Civil Supplies Corporation (Supplyco) is in the process of taking over not less than 21 fuel stations from the Indian Oil Corporation (IOC) across the State.

This will take the total number of fuel outlets owned or operated by the corporation to 36, the largest by a single agency in the State.

The new business plan is already being executed with Supplyco taking over a fuel station each at Ayarkkunam in Kottayam and Thalassery in Kannur about a fortnight ago.

“The plan is to engage with the IOC to share its retail infrastructure on an annual lease and then take on the business on our own,” Civil Supplies Minister Anoop Jacob told The Hindu.

Seven more pumps have been lined up for immediate takeover while the rest of the pumps have been earmarked for gradual takeover by the end of this fiscal.

“All the fuel stations on our priority list either remain closed or are on the verge of closure owing to a variety of issues ranging from litigation to family disputes. But Supplyco, being a State-run agency, will be able to tide over these challenges and run these outlets effectively,” he said.

Going by initial estimates, Supplyco expects an average daily collection of Rs.1 lakh from each of these fuel stations.

Market intervention

Mr. Jacob said the corporation’s foray into petroleum retailing was part of its greater plan to set up a special fund for market intervention. The fund would be used for providing subsidy to essential commodities, procuring paddy from farmers, and such other services.

Meanwhile, Supplyco is also contemplating to diversify its Sabari brand by increasing the product basket while making it readily available in the open market.

“The plan is to make available our products, including bottled water, at public places such as bus and railway stations thereby improving the brand visibility and sales,” the Minister said.

Source: The Hindu