Financial Daily from THE HINDU group of publications
Friday, Dec 23, 2005


News
Features
Stocks
Shipping
Archives
Google

Group Sites

Corporate - Outlook


IOC expects stiff competition in small, unorganised markets

Pratim Ranjan Bose

Kolkata , Dec. 22

HAVING dominated the consumer market for decades, Indian Oil is finally expecting stiff competition from private players especially in the small and unorganised consumer petroleum products market. Consumer market is roughly three times the size of retail petroleum products business in the country.

The company is currently has 65 per cent share of the organised consumer market comprising major customers such as railways, power sector and transport utilities. The Railways, which is the single largest consumer of refined petroleum products, sources roughly 80 per cent of its total requirement from the company. "We have already attained a dominant position in the organised consumer market and chances of enhancing our market share in this segment are minimal," an IOC official said.

Though not apprehending any imminent competition from the private sector in this segment, the company is anticipating stiff competition in the small and (or) unorganised consumer sector, which is nearly 35 per cent of the total consumer market and comprises SSI and medium industrial sector, commercial fleet owners and so on. "As things stand we may even lose some share in this market," the official said. To arrest the trend, the company has focussed on providing value-added services to the smaller customers.

Unlike the previous practice of managing both the retail and consumer market through same divisional heads, separate account managers are appointed at the divisions to handle only the small customers. The account managers are responsible for providing tailor made consultancy services to each small customer irrespective of its business size.

The success of XtraPower prepaid cards for fleet owners has also enabled merging a section of retail and consumer market.

More Stories on : Outlook

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page



Stories in this Section
Lupin gets USFDA nod for Cefprozil


Reliance to develop gas grid in AP — May set up bio-diesel plant
Rajasthan Spinning to produce ladies trousers for Marks and Spencer
JK Synthetics to sell Jhalawar plant
Ucal sells stake in joint venture
HAL pays Rs 48.20-cr interim
Titan board meet on Dec 26
Oudh Sugar to spend Rs 250 cr in expansion
Prajay Engineers' warrants
HC defers NTPC petition against Reliance
Uttam Galva raises $14 m thru FCCB issue
Glenmark $30-m FCCB issue
IOC to raise $300 m foreign loan
British honour for Asian Paints' units
Independent directors — an unhealthy clause
Shareholder moves HC seeking ouster of Lodha as Birla Corp head
Reliance fixes Jan 25 as record date for demerger scheme — `Resulting cos' to issue shares to RIL shareholders
TV18 announces consolidation scheme
CMD, 5 directors of DCM resign
IBP-IOC merger: Swap ratio likely to be modified
Visa Steel to tie up debt for Orissa project by month-end
Great Eastern Energy to invest Rs 575 cr in CBM project
Wipro buys mPower in all-cash deal
Tata Coffee to invest Rs 50 cr in Uganda unit
Ferro Alloys venture to dig deep for platinum — Actual size of deposits inOrissa to be assessed
Avesthagen awaits 25-m-euro private placement
IOC expects stiff competition in small, unorganised markets


The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | The Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |

Copyright 2005, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line