HPCL to develop malls, multiplexes at unused depots

New Delhi, December 21 : Refinery major Hindustan Petroleum Corporation Ltd (HPCL) has hit upon space selling as a new business to utilise its idle or unused marketing locations or depots, and set up petrol pumps there as well.

“HPCL proposes to develop retail formats like malls, multiplexes, food courts, hotels, office/commercial complexes, convention centres, residential apartments at marketing locations that are idle or not viable for present marketing activities,” says the proposal.
In all there are six such depots which are now in disuse but HPCL plans to try out a pilot project either at Kochi or at Jaipur before deciding to foray into this business.
For starters, it has assessed that a retail-cum-eatery at Kochi could yield Rs 30-40 crore annually providing an internal rate of return of 28 per cent. These mall or leisure parks would also house retail outlets to tap petrol and diesel sales in the six towns.
The HPCL board of directors gave an in principle approval in November to form a joint venture where the HPCL-owned land would be the public sector undertaking’s share of equity and offers would be invited from real estate venture capitalist which would construct, market and manage the property.
The advantage, said the proposal, would be that the venture capitalist would be indifferent to any group or brand and would be “more interested in the return on investment”.
HPCL expects to prepare a roadmap within three months that would provide a timeframe for implementing the selected project. The proposal would be brought to the Board again after inputs from consultants who would also develop a comprehensive bid document that would form the basis for evaluation of the offers received from different parties.

Source : Indian express