Indian Oil Plans Own Packaged Drinking Water Brand Across 43,000+ Fuel Stations – Indian PSU

Indian Oil Corporation Limited (IndianOil) is planning to enter the packaged drinking water business under its own brand, seeking to leverage its vast retail network of more than 43,000 fuel stations across the country as a new channel for non-fuel revenue.

The state-owned oil marketing company had initiated the process of selecting aggregator partners for the proposed packaged drinking water business. Under the plan, IndianOil would retain ownership of the brand, while selected partners would undertake manufacturing, quality assurance, supply-chain management, logistics and rollout.

However, IndianOil’s current supplier-notice portal carries a withdrawal notice for the Expression of Interest (EOI) issued for the launch of its branded packaged drinking water at retail outlets. The development indicates that the proposed rollout is still subject to further decisions by the company.

Highway outlets to lead the proposed rollout

The original plan envisaged a phased introduction, with highway retail outlets forming the first major distribution channel. IndianOil has a large network of highway-facing fuel stations, where demand for packaged drinking water is particularly strong among motorists and long-distance travellers.

The proposed expansion was subsequently intended to cover urban, semi-urban and other retail outlets across the company’s nationwide network.

Three bottle sizes proposed

The proposed packaged drinking water range was to initially include 250 ml, 500 ml and 1-litre PET bottles, with the 1-litre pack expected to be a key product.

IndianOil had also been looking at the possibility of expanding the portfolio in the future to include premium packaged water, natural mineral water, alkaline water and functional hydration products.

Push to expand non-fuel revenue

The proposed water business fits into IndianOil’s broader strategy of expanding its presence beyond conventional fuel retailing.

With more than 43,000 customer-facing retail outlets, IndianOil has an extensive physical distribution network that can be used to sell a wider range of consumer products and services.

The packaged water initiative would potentially allow the company to monetise its existing retail infrastructure while providing an additional convenience product to customers visiting its fuel stations.

IndianOil’s retail network offers a major advantage

A nationwide fuel-station network gives IndianOil an immediate advantage in terms of reach and visibility. Unlike a new packaged-water company that would have to build a distribution network from scratch, IndianOil can potentially place its branded product directly at thousands of established retail locations.

The move also reflects the changing role of fuel stations, which are increasingly evolving into broader mobility and convenience destinations rather than serving solely as points for buying petrol and diesel.

For now, the packaged drinking water initiative remains subject to IndianOil’s next course of action following the withdrawal of the earlier EOI.