Essar Energy eyeing franchise expansion

Essar Energy, an integrated Indian energy company is planning to increase its retail fuel outlets to 1,700 by April 2011. The company already has 250 retail fuel outlets under construction, which are targeted to be launched across the nation. These new outlets will be opened through franchise route only, confirms a company’s official.

Presently, the company is operating through 1,385 franchised retail fuel outlets across India selling gasoline and gas-oil under the Essar brand. Besides this, Essar also announced in November 2010 its plans to further increase the capacity of the refinery to 20 mmtpa, or 405,000 barrels per stream day. This will be achieved through optimisation of some of the refinery units at an estimated cost of Rs 17 billion (c. US$379 million); the project will be completed by September 2012.