IOC to enter Nepal retail market

August 4: In the first phase of the retail development in Nepal, IOC will invest Rs 26 lakh to upgrade an existing retail outlet in Naxal, Kathmandu. In the second phase IOC will upgrade a retail outlet in Bhdrakali, Kathmandu. Only in the third phase will IOC set up two new retail outlets. An MoU will shortly be signed with the Nepal Army Welfare Society and Nepal Police Welfare Society for the two new outlets.

The entry into the Nepalese market is an extension of the company8217;s global marketing plans. IOC has already entered the lubricants and bitumen market in Nepal, with its flagship brand 8211; Servo 8211; making deep inroads into the automotive and industrial segments of the market. In 1998-99, total tonnage sold was 5000 tonnes of bitumen and 300 tonnes of lubricant. The target for lubricants is almost double this year.

IOC has also planned to open franchisee Servo shops in Nepal. In India Servo has a 42 per cent of the Indian lubricant market. It has also made a dent in markets in UAE, Kuwait and Kenya. The company is now targeting markets in Malaysia, Bangladesh and Mauritius.