CHENNAI: The concept of non-fuel business that saw many petrol pumps becoming a one-stop-shop for a range of products such as pharmaceutical drugs and services, including automated teller machines, is now being tried out at cooking gas agencies.

This comes in the wake of a growing realisation among State-owned oil marketing companies that the sizeable and dedicated customer base of their liquefied petroleum gas cylinders is a target for hard selling a range of households items.

Customer profile

But in tune with the customer profile, their needs and the limited space available at LPG showrooms, the product range is different from those sold through petrol pumps. It includes consumables such as pickles, ready mix powders and edible oil, daily use items such as crockery and kitchenware, and appliances like diesel generator and vacuum cleaners.

Though a largely unexplored territory, Bharat Petroleum Corporation Limited has taken the lead in promoting non-fuel business through its cooking gas agencies.

Starting with Suraksha brand tubes for cooking gas connections a few years back and later introducing kitchenware, it has now widened the range of products.

BPCL sources say the company gets into a tie-up with manufacturers and for some of the products the cost is competitive. "It [the price] is sometimes lower than the market rate," an official said. Sources among cooking gas distributors dispute it.

Also evaluating

On the logic behind such non-fuel forays, the official said they followed surveys by the company indicating the business potential and customers' preference. Industry sources say Indian Oil Corporation and Hindustan Petroleum Corporation are also evaluating the prospects of launching non-fuel business at their LPG distributorships.

Some of the reasons for the delay in their foray could be the issues related to marketing initiatives, such as resistance from distributors and intense competition from retailers.

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