Reliance & BP Wants To Dominate Highway Retail In India: Find Out How?
Reliance BP Mobility will open retail stores at fuel stations situated along Indian highways.
Reliance BP Mobility is the joint venture between Reliance Industries and UK's BP dealing in fuel marketing.
How It Will Operate
Reliance Retail will be running these outlets which include its Smart Point convenience stores, digital stores, charging points for electric vehicles, cafés and other food and beverages outlets.
The company could also get other food and beverage chains to open outlets at Reliance properties.
The move is an attempt to tap into the emerging concept of highway retailing in India and to leverage its properties.
Indian Highway Retailing: An Emerging Opportunity
The market in India has seen a boom with the construction of world-class highways and the rising number of Indians taking road trips.
India has a road network of 5.8 million kilometres as of 2017 which is just behind the leader, the US.
The modern retail potential is even bigger considering the current road infrastructure in India.
Highway retail in India could surge to a $2.7 billion opportunity by 2030.
Reliance had made an effort related to highway retailing a few years ago, but it failed to take off.
This is a prime time for it to revive those ambitions since the competition is heating up with Singapore-based Cube Highways tying up with Bharat Petroleum.
The duo will open branded food outlets, convenience shops and toilet facilities at petrol pumps.
Reliance is aiming to expand its fuel retailing network from the present 1,400 stations to 5,500 in the next 5 years.