Indian Oil weighs own-brand bottled water across 43,000 outlets
Indian Oil Corporation is seeking partners to manufacture and distribute packaged drinking water through a phased rollout across its 43,603 fuel stations. The proposal is part of the state-owned company’s drive to increase non-fuel revenue, with highway outlets expected to lead demand for the initial bottle sizes.
Indian Oil Corporation is considering launching packaged drinking water under its own brand across its network of 43,603 retail outlets in India. The state-owned refiner and fuel retailer has invited expressions of interest from aggregators that could manage manufacturing, quality assurance, supply chains, logistics and the rollout. Indian Oil would retain ownership of the brand under a proposed multi-year revenue-sharing arrangement.
The rollout would take place in phases. Highway outlets, which number 21,435 and account for nearly half the network, are expected to be prioritised because of demand from travellers. Urban and semi-urban stations would follow.
The initial range would include polyethylene terephthalate bottles of 250 millilitres, 500 millilitres and one litre, with the one-litre pack positioned as the main product. Indian Oil said it could later consider premium or specialist products, including mineral, alkaline and functional hydration water. The company would control pricing, the relationship between dealer landed price and maximum retail price, and dealer margins.
The proposal currently applies only to fuel outlets, including company-operated stations, dealer-operated outlets and Kisan Seva Kendras. LPG agencies, offices, institutional customers, e-commerce and general trade are excluded. Indian Oil is seeking to expand its non-fuel revenue from ₹200 crore to ₹760 crore, alongside a targeted gross merchandise value of more than ₹11,000 crore.
The company says more than 3.2 crore customers visit its retail facilities daily. The plan would place Indian Oil in India’s packaged-water market, which the India Brand Equity Foundation estimated at ₹32,040 crore in 2025 and projected to reach ₹57,850 crore by 2032. Those figures were cited by Indian Oil in the material supporting the proposed expansion.
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