National News (01/10/2026): Indian Oil Corporation Limited (IOCL) is preparing to make a major entry into the packaged drinking water market, with plans to introduce bottled water under its own brand across its extensive network of more than 43,000 fuel retail outlets nationwide.
The company has initiated the process of appointing aggregators to manage the proposed rollout of packaged drinking water through its retail outlets across India. The move is expected to strengthen Indian Oil’s growing portfolio of non-fuel businesses while leveraging its vast customer-facing network.
250 ml, 500 ml and 1-litre bottles in the initial phase
Under the proposed rollout, Indian Oil plans to introduce packaged drinking water in 250 ml, 500 ml and 1-litre PET bottles. The 1-litre bottle is expected to be positioned as the key product in the initial phase.
Depending on market response and consumer demand, the company may subsequently expand its portfolio to include premium packaged water, natural mineral water, alkaline water and functional hydration products. Additional bottle sizes could also be introduced in the future.
Aggregators to manage manufacturing and supply chain
Under the proposed business model, selected aggregators will be responsible for major operational functions, including manufacturing, quality assurance, supply-chain management, logistics and product rollout.
However, the current Expression of Interest (EOI) is specifically focused on selling IOCL-branded packaged drinking water through Indian Oil’s fuel retail outlets.
At this stage, the proposal does not include sales through LPG agencies, Indian Oil offices, e-commerce platforms, general retail stores or the open market. The initial distribution strategy will therefore remain focused on Indian Oil’s extensive petrol pump network.
Indian Oil to determine pricing and dealer margins
Indian Oil will retain control over key commercial parameters, including the product price, dealer landed price-to-MRP ratio and dealer margin.
The company’s official supplier-notice portal has confirmed the issuance of an EOI for the appointment of aggregators for the proposed launch of IOCL-branded packaged drinking water at its retail outlets.
Focus on expanding non-fuel revenue
The proposed packaged water business forms part of Indian Oil’s broader strategy to expand its non-fuel revenue streams.
The company is targeting an increase in non-fuel revenue from around ₹200 crore to ₹760 crore, along with a targeted Gross Merchandise Value (GMV) of more than ₹11,000 crore.
According to Indian Oil, its retail network covers approximately 195 million square feet, while more than 3.2 crore customers visit its facilities every day.
The company has already been expanding its non-fuel offerings through partnerships with brands including Hindustan Unilever, Dabur, ICICI Bank, Ferns N Petals, MTR Foods and PVR Cinemas.
EOI covers multiple categories of fuel outlets
The packaged drinking water EOI covers several categories of Indian Oil fuel stations, including Company-Owned Company-Operated (COCO), Dealer-Owned Dealer-Operated (DODO) outlets and Kisan Seva Kendras.
India’s packaged water market continues to expand
The packaged drinking water sector in India is also attracting increasing commercial interest. According to estimates cited by the India Brand Equity Foundation (IBEF), the country’s packaged drinking water market could reach approximately ₹32,040 crore by 2032.
With a massive retail footprint and millions of daily customers, Indian Oil is now looking to leverage its existing fuel-station network to establish a new packaged drinking water business and further strengthen its presence in the country’s expanding non-fuel retail market.
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