IndianOil expands non-fuel revenue with packaged drinking water rollout

Indian Oil Corporation, the country's largest fuel retailer, has floated an invitation for expressions of interest from aggregators to establish manufacturing and distribution operations for a new packaged drinking water brand. The initiative aims to leverage the company's extensive retail footprint of petrol pumps across India to create additional revenue channels.

The company plans to roll out the branded water across its nationwide network of service stations, capitalizing on the high daily customer traffic at fuel retail outlets. This diversification strategy aligns with industry trends where major oil corporations are increasingly developing ancillary business segments to supplement core fuel sales.

The tender process indicates IndianOil's intent to partner with external aggregators rather than develop in-house manufacturing capabilities, allowing the company to scale operations quickly while maintaining operational focus on its primary petroleum business. The model enables aggregators to tap into IndianOil's vast distribution network and customer base.

The non-fuel revenue segment has become a strategic priority for major petroleum retailers in India, offering stable margins and recurring customer engagement opportunities. Packaged drinking water, a high-volume consumer product with consistent demand, represents an attractive category for such expansions at retail touchpoints.