Retailing, in India, has been growing at a rapid pace over the past decade. More importantly, it has witnessed significant transformation in terms of retail mix (organized vs. unorganized), the quality and scale of retailing, the varieties of retail formats, and also change in consumer preferences and shopping habits. This article examines the developments in non-fuel retailing at fuel stations – opportunities in forecourt retailing, the various non-fuel retail formats and the key drivers for further growth.

The face of fuel retailing out- lets in India is no more re- stricted to the sale of fuel alone. The oil marketing companies (OMCs) are today looking at alternative revenue streams to make up for some of the losses incurred in the sale of fuels. State-run oil companies are expected to incur a loss of over Rs. 1 lakh cr on the sale of petrol, diesel, kerosene and domestic LPG this fiscal, despite softening of the global crude oil prices. The contribution of non-fuel products to total revenue is 39% and 35% in the US and France respectively. In India, non-fuel retail contributes less than 2% to total sales. Thus, to increase revenues and reduce losses, all OMCs are now trying to use the available free forecourt space in the fuel stations for non-fuel retailing.

As non-fuel retailing (NFR) has been quite successful in markets abroad, the Indian oil industry too is getting into this business in a planned manner. In non-fuel retailing at fuel stations/petrol pumps, the market leaders are Essar and Shell among the private oil companies. In the public sector, BPCL (Bharat Petroleum Corporation Ltd) is the market leader, followed by HPCL (Hindustan Petroleum Corporation Ltd) and IOCL (Indian Oil Corporation Ltd).

Forecourt retailing, in India, started in the early 2000s and has primarily evolved into a convenience store format. BPCL, a government-controlled company, leads the industry with around 400 `In & Out' outlets, a convenience store format. Reliance, India's largest private oil company, has `A1 Plaza' that focuses on highway customers, providing them with a shopping/dining plaza experience.

Marketing Mastermind Magazine, Non-Fuel Retailing, Petrol Pumps, NFR, IOCL, Indian Oil Corporation Ltd, HPCL, Hindustan Petroleum Corporation Ltd, BPCL, Bharat Petroleum Corporation Ltd, Oil Marketing Companies, OMCs, Forecourt Retailing, Quick Service Restaurants, QSRs, Food and Grocery, Food and Beverages, Reliance's A1 Plaza.