Coming soon - 60,000 Retail Centres in India…

The Central Government announced on Sunday that it is planning to issue application forms for 60,000 Fuel stations across the Country to be operated through Dealers using the trade name of the Three Oil Marketing Companies (OMCs) Indian Oil, Bharat Petroleum and Hindustan Petroleum. There are already 62,000 (and counting) fuel stations across India which retail Petrol, Diesel and allied products while a bunch of them also retail CNG for commercial vehicles. About 10% of these stations are operated by private players such as Shell, Essar, etc. It is a remarkable feat that the world’s highest fuel retail station is in India at the Ladakh region of Jammu & Kashmir in the Himalayas which is a favourite among auto-enthusiasts. 

As in the past, prospective applicants need to apply online and pay an Ernest deposit to the OMCs which would be followed by a lucky draw. And those who win would be awarded the contracts and assistance provided by the respective agencies in setting up the outlets while those who didn’t qualify would be refunded their deposits. While this generous move by the BJP Government is seen as a positive measure since no such new contracts have been issued in the past four years, critics have dubbed this as a meaningless move with spiralling fuel costs and dwindling vehicle sales over the past two quarters this financial year and a mere public-pleasing stunt ahead of the upcoming National Elections in May 2019. So, the verdict is split. 

It costs a whopping Rs. 1.5 – Rs. 2 Crore to set up a Fuel Station spread over 5,000 sq. ft in the name and style of the OMCs while the cost is more than double for private players like Shell who have stricter norms towards the setting up of the outlets. The biggest challenge for setting up a Fuel Station has been land acquisition, especially on National & State Highways which have seen a 10-fold increase in vehicle traffic over the past decade, thanks to better roads, lower cost of acquiring personal vehicles and a generally heightened mood for vacations and road trips. 

Being an avid traveller and a terrific lover of road trips myself, starting with my beloved Hyundai Santro in 2005 till the new age Mahindra XUV500 (I upgraded to an Automatic from the previous Manual this March), I have personally seen how the entire ecosystem has evolved over the past 15 years or so. In fact, I plan my trips now, whether short or long depending on the wayside amenities that I could use, from rest rooms to coffee shops, meals to speciality snacks and of course the need for service centres, local vehicle mechanics and Authorised Service Centres, etc. The need for such pitstops vary when I travel solo or with family and of course based on the number of hours we travel at a stretch. 

My pet peeve on highway travel has been the lack of good quality toilets (well, good is a relative term, so!) and clean and hygienic food outlets which have somewhat been fulfilled at least across Tamil Nadu Highways which I frequent the most by road. While only a handful International and National Retailers such as Café Coffee Day, KFC, Mc Donalds and A2B have scratched the surface of the opportunity of Highway Travel Retail, there seems to be an enormous opportunity that lays ahead of us. I see these upcoming 60,000 new Fuel stations (many say only 1/3^rd of all locations proposed actually turn up in reality) as nothing other than Retail Centres, where apart from filling Fuel, one can have various other retail offering from food outlets like cafes to speciality restaurants, shops selling snacks, fruits and condiments for the journey ahead and of course, wayside motels for a quick overnight stay for tired drivers and their families. 

Reliance Retail with their Fuel stations did come up with some of these models way back in 2006-07 but the whole effort slowly dwindled due to decentralisation of Fuel prices and today, they remain large parcels of land ready for an explosive growth. These fuel stations (and Retail Centres) could be beneficial not only for travellers but also for the nearby towns and villages, generating sustainable employment and entrepreneurial opportunities. 

I am writing this sitting in the back seat of a Bolero travelling on work and just stopped at a highway shack where I had a glass of Coffee. I see a new Retail Centre coming up closely (when I close my eyes).

Travel is an Incredible Opportunity

I have been travelling regularly on work for over a decade now. As a kid, my travel (mostly by bus & train) for outstation trips was limited to 2-3 times a year. My first business travel was in 2002 when I was called for an Interview by Shoppers Stop in Mumbai for the role of a Supervisor for their Chennai Store. I negotiated hard with the HR guy to get me a flight ticket although it was out of bounds by their policy. I flew Air India – a noon flight onward and a 2am flight for return since that was the lowest fare. Then I started flying across South India to expand the business of Benetton in 2005 with monthly visits to Delhi to our HO. The first visa on my passport was in 2006 and well, it was for Switzerland where I went to learn Travel Retail which I was implementing at Bangalore International Airport (BIAL). I flew to Singapore First Class onward and Business Class return for the first time, to speak at a conference on Indian Aviation in 2008 with my tickets being sponsored by the Organisers.  Travelled to 10 countries across Asia and Europe during my stint at BIAL. My domestic travel peaked during my stints at Café Coffee Day in 2009 where I set-up 140 cafes pan-India and thereafter at Royal Enfield Motorcycles in 2012 where I set-up 160 Dealerships across India.

Those days, I literally used to live out of a suitcase, travelling 3-4 days a week, more than 40 weeks a year. It was a lot of fun although tiring. But a sense of accomplishment looking at my professional achievements down the years. I have met many people at Airports – from childhood classmates to celebrities to politicians to academicians to Industrialists and a long list of personalities. I even travelled with a person of the third gender from Hyderabad to Bangalore once and trust me, it was some experience I would say.

Since 2014 my travel reduced to almost 10-15 days a year when I chose to become an Entrepreneur and started my offline Retail venture Smiling Baby in Chennai. I restarted my travel since 2017 when I began focusing on my Consulting Assignments. Interestingly, I have travelled over 45 weeks during the past 52 weeks, mostly by train since I prefer taking an overnight journey for distances less than 500 kms.

I have always travelled in a/c coaches this past year and mostly in the 2^nd A/c Coaches since the bills are paid by my clients. I have always wondered why & how some people manage to fly Business or First Class and have done a lot of searches on this topic online. Empirical data suggests that those who fly in higher classes are more productive upon arrival in their destination cities. They get to sit comfortably, sleep on a flat bed, read a lot, get less distracted while working due to fewer passengers and hence are refreshed by the time they arrive in the next station. Indian Prime Minister Mr. Modi is a classic example – we have seen him fresh as an Apple just the day upon arrival even after trans-Atlantic flights!

I travelled on 1^st a/c last night from Chennai to Madurai and this was so comfortable. Even in 2^nd A/c, sometimes I get side upper or lower berths and I have seen my productivity nose-dive the next day. But the 1^st a/c coaches are so comfortable. The berth is wider, fewer people, lesser banter and more comfortable a/c with a bigger pillow and nicer rugs. Trust me, the day after such comfortable travel is not just a more productive day but also a happier day, which boosts morale and work efficiencies. I travelled in 3^rd A/c a week back and had a upper berth onward and lower berth up on return and it was not even just uncomfortable but very frustrating. The next two days were a nightmare.

This is not to demean the millions of people who travel in non-a/c coaches or other means of public transport. Travelling comfortably works best for me to increase my productivity and I believe, to each his own. Her own. Whichever mode, travel is a great opportunity to learn new things, meet new people and understand life better during the journeys.