The state-owned company IndianOil has invited interested parties to participate in a project to produce, distribute, and implement its own brand of bottled drinking water across its entire retail network, aiming to increase revenues not related to fuel.
The IndianOil retail sales division issued a Request for Intent (EOI) on September 18th. The proposed model is based on the involvement of aggregators who will handle production, quality control, supply chain, logistics, and market placement of the product. However, the rights to the brand, including trademarks, packaging design, and artistic elements, remain the exclusive property of IndianOil.
According to the EOI, the company has approximately 43,603 retail outlets, 21,435 of which are located on federal and state highways. The company plans a phased launch of the bottled water, starting with highway stores and subsequently expanding coverage to urban, semi-urban, and rural areas.
Three package sizes in the initial phase
The initial assortment will include bottled drinking water in plastic bottles of 250 ml, 500 ml, and 1 liter, with the 1-liter bottle being considered the main product. IndianOil also announced the possibility of later expanding the line with premium water, natural mineral water, alkaline water, and functional hydrating products, subject to technical feasibility and regulatory compliance.
The EOI specifies estimated consumer prices: 6 rupees for 250 ml, 10 rupees for 500 ml, and 20 rupees for 1 liter, inclusive of Goods and Services Tax. A margin of 25–35 percent from the maximum retail price excluding GST is also offered for the dealer, while IndianOil's share of revenue must be at least 12 percent of the Delivery Cost to the Dealer, also excluding GST.
Aggregator responsible for production and distribution
Under the proposed scheme, the aggregator will organize the water production at facilities approved by IndianOil and sell it under the IndianOil brand. It will also be responsible for purchasing packaging materials, production planning, warehousing, transportation, inventory management, and servicing designated retail points. The aggregator assumes the costs for refrigerated display units and reimburses them from its share of the Delivery Cost to the Dealer.
The proposed agreement is currently limited to designated IndianOil retail points. It does not extend to LPG distribution points, institutional clients, IndianOil offices, joint ventures, subsidiaries, e-commerce, or general turnover. IndianOil reserves the right to expand cooperation to other channels at a later stage.
