New Delhi: Indian Oil Corporation Limited (IndianOil) is planning to enter the packaged drinking water market as part of its strategy to expand non-fuel revenue streams across its extensive retail network.
The company has issued an Expression of Interest (EoI) seeking business aggregators to undertake the end-to-end launch of its packaged drinking water brand under a revenue-sharing model. The proposed initiative will leverage IndianOil’s network of more than 43,000 fuel stations, with the initial commercial rollout expected to focus on 21,435 highway retail outlets. The EoI was issued on September 18, 2026, with bids scheduled to close on October 16.
The move represents a broader evolution of fuel retail infrastructure into multi-service consumer destinations. By introducing packaged drinking water through existing retail outlets, IndianOil can utilise its established physical footprint and highway presence to access a large, mobile consumer base while developing an additional non-fuel revenue stream.
The proposed revenue-sharing structure would allow IndianOil to work with external aggregators for manufacturing, supply-chain and distribution requirements, potentially enabling a wider rollout without building an entirely new manufacturing and logistics network. The model also places significant importance on maintaining consistent quality standards across a geographically extensive distribution system.
The initiative comes as IndianOil seeks to diversify its business beyond conventional fuel retailing. The company’s consolidated net loss stood at ₹1,140 crore in Q1 FY27, compared with a profit of ₹6,808 crore in Q1 FY26, adding further relevance to efforts aimed at strengthening alternative and consumer-facing revenue streams.
Water and retail infrastructure converge
IndianOil’s proposed entry also reflects the growing intersection between water consumption, mobility and retail infrastructure. Highway fuel stations occupy strategically important locations along major transport corridors, where demand for safe and conveniently available drinking water is closely linked with passenger and freight mobility.
The proposed rollout illustrates how India’s large infrastructure networks are increasingly being repositioned as platforms for delivering a wider range of consumer services. For IndianOil, packaged drinking water could become another component of this transition, transforming fuel stations into broader convenience and consumption hubs.
Source: Sahi.com