BackBPCL to spend ₹8,000 crore this fiscal
The company will commission around 6,000 retail outlets over the next three yearsOf this planned layout, BPCL has already spent ₹1,760 crore during the first quarter of this fiscal
PremiumMumbai: State-run Bharat Petroleum Corporation Ltd will spend ₹8,000 crore to meet its capital expenditure this fiscal.
Of this planned layout, BPCL has already spent ₹1,760 crore during the first quarter of this fiscal. It will spend ₹300 crore for laying pipelines, ₹2,500 crores towards marketing and research and development, ₹200 crore towards gas business, ₹800 crore for exploration and production and ₹2,125 crore towards miscellaneous expenses.
The company will commission around 6,000 retail outlets over the next three years, that is approximately 2,000 retail outlets every year. Currently, BPCL has about 14,900 outlets.
"Focus area for these retail outlets is largely on the rural side plus on highways. We have already started commissioning outlets out of this new lot of letter of intents which we have issued. Around 60 outlets, we have already commissioned during the first quarter. So, we are progressing well in terms of expanding our retail network," BPCL management told analysts in a call post their first-quarter earnings.
The company does not expect any major competition from private players.
"In the last few quarters, we have not seen any major development happening on the front of private competition. While they have been growing in certain markets where they have already established, but rest we are not seeing any major development happening. We have to wait and watch for how future development fans out of the new alignment which has happened," BPCL told analysts.
BPCL added that though diesel demand has been muted over the last few quarters, registering a growth of only 0.5% in the first quarter of this fiscal, the company still plans to expand its fuel retail network.
"The auto sector is going through a very negative growth pattern. And till there is a revival in the manufacturing sector, we don't see that diesel growth will happen, which is a major chunk of the product which is being sold. While some growth is happening in the East and Northeast, which is still under-developed, I think there we are focusing on expanding our network," BPCL said.
BPCL plans to spend ₹12,120 crore in the next fiscal. While refineries will see an investment of around ₹4,000 crores, petrochemicals will see an investment of ₹3,000 crore, pipelines ₹670 crores, marketing ₹2,800 crores, upstream ₹1,200 crores, gas and city gas distribution ₹450 crores, the company said.
Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!
