IndianOil To Launch Packaged Drinking Water Across India

Indian Oil Corporation Limited (IOCL), one of India’s largest fuel retailers, is looking to expand beyond its traditional petrol and diesel business. The company is preparing to enter the packaged drinking water segment under its own brand, using its extensive retail network across the country.

With more than 43,000 retail outlets, IndianOil plans to use its existing network to build a presence in the packaged water market. The move is part of the company’s broader strategy to increase revenue from businesses outside fuel sales.

IndianOil Targets Higher Non-Fuel Revenue

IOCL currently generates around Rs 200 crore in annual non-fuel revenue and has set an ambitious target of increasing this figure to approximately Rs 760 crore.

The company is also looking to create a gross market value of more than Rs 11,000 crore through its non-fuel initiatives. A major part of this strategy involves making better commercial use of its extensive retail outlet network.

IndianOil outlets collectively cover around 19.5 crore square feet, while more than 3.2 crore customers reportedly visit these locations every day. The company wants to tap into this large customer base through new products and services.

Highway Fuel Stations To Lead Water Sales

Around 21,435 highway outlets are expected to play a major role in the initial rollout of the packaged drinking water business.

Highway locations could provide a natural starting point because travellers frequently require drinking water during long journeys. After establishing the business at highway outlets, IndianOil plans to expand the product to urban and semi-urban fuel stations.

The initial range is expected to include 250 ml, 500 ml and 1-litre PET bottles.

Premium Water Products May Follow

IndianOil could eventually expand its portfolio beyond standard packaged drinking water. The company's plans reportedly include products such as premium water, natural mineral water, alkaline water and functional hydration beverages.

For the proposed business model, IOCL has invited an Expression of Interest (EOI) from potential partners.

Under the planned multi-year arrangement, selected aggregators would handle areas such as manufacturing, quality control, supply chain operations and logistics.

However, IndianOil is expected to retain control over key aspects of the business, including brand ownership, product pricing and dealer margins.

Packaged Water Market Continues to Grow

The expansion comes as India's packaged drinking water industry continues to grow. According to a report by the India Brand Equity Foundation, the country's packaged drinking water market was valued at around Rs 32,040 crore in 2025 and is projected to reach approximately Rs 57,850 crore by 2032.

IndianOil already has partnerships with major companies in different areas of its non-fuel business. Its proposed entry into packaged drinking water could further expand its presence in the fast-growing consumer products segment.

The company's extensive retail network gives it a large distribution base, which could become an important advantage as it develops its packaged water business.

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