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Attractive Measures of State Run Oil Retailers to Take on Private Player ; Tough Competition Ahead

News

As Reliance Industries and Essar Oil resurrect their challenge, state-run fossil fuel retailers are planning to flood the market with new dealers while offering higher commission and training to the existing ones to keep up the morale and efficiency on the front lines .

Source:  ET

SNP Insights

After deregulation of diesel, private players ambitious target of opening retail outlet might pose a threat to market share of state run companies. Anticipating the tough competition ahead, state run companies are starting to give more commissions & planning to give more thrust towards quality of service enhancement. Pertaining to fact that, state run companies are already sitting on 95% market share & it is very much difficult for private players to get attractive pump location as of now, it would be enthralling to see private players new market penetration strategy to counter the move.

Source: SNP Infra Research