[TusharK]

Reliance Industries and British Petroleum (BP) have joined hands to set up retail outlets, convenience stores and food joints at fuel stations along major highways.



According to a media report, Reliance Retail will operate the Smart Point convenience stores, digital stores, cafes and food outlets as well as charging points for EVs. It is said that talks are on with other food and beverage chains to open outlets at their properties as well.

This is not the first time that Reliance is entering the highway retail business. The company had started food and beverage outlets at its petrol pumps a few years ago, but with little success.

Bharat Petroleum (BPCL) has also partnered with Singapore-based Cube Highways to set up food outlets, convenience stores and toilet facilities at their petrol pumps.

Source: ET Energy World

Link to Team-BHP News

[k_ajay]

Good news, but I hope they will consider at least 4-5 EV charging bays in every station or most of their stations (that includes a couple of fast chargers), so it encourages more EV buyers, currently sitting on the fence due to lack of more widely available EV infrastructure.

This, I believe, will be as appreciated as a food joint or store/ cafe. EVs are the future and setting up rest stops and energy stations now to be future proof, would be smart.

[pradeep_mvpa]

I think this is going to be the new business model.
Since EVs take good amount of time to recharge, traditional fuel station model won't work. By providing additional facilities such as food outlets or shopping centers along with recharge stations will help the travelers utilize their time effectively.

[condor]

As a person who prefers Reliance diesel, I hope they also expand their network inside cities. I had written to Reliance Petroleum customer care about the same, and got the expected reply that they are working on it. Bangalore has just 3 bunks in city limits, while the third is near the airport. Even the ones in city limits are on the periphery.

I have found their diesel to be good - right from the time they had started about 14 years back, and till today I get the best FE with this.

[GTO]

Just like their failed attempt with kirana stores, I think Reliance will struggle with dominating retail on the highway. Don't underestimate the 'small businessmen' of India.

Originally Posted by pradeep_mvpa

Since EVs take good amount of time to recharge, traditional fuel station model won't work.

With more EVs on the road, more people will invest in improving charging capability. The technology is already fast developing. Tesla can add 200 miles / 320 km in ~15 minutes. What more does one need? The average petrol stop is anyway 10 - 15 minutes, an EV might end up with a little more.

We are seeing a trend in developed countries where people combine their driving breaks with EV charging stops. Personally, I like to step out of the car every 2 hours on a highway drive for a short stop, and every ~4 hours for a meal stop. Can easily charge my EV in this time.

Originally Posted by condor

As a person who prefers Reliance diesel, I hope they also expand their network inside cities.

Me too . If I see an option to fill up Reliance diesel on the highway, I will always stop there. But their biggest challenge in the cities is easy to guess = lack of real estate availability. All the good locations have already been taken up by the PSU pumps.

[condor]

Originally Posted by GTO

But their biggest challenge in the cities is easy to guess = lack of real estate availability. All the good locations have already been taken up by the PSU pumps.

With ref to Bangalore, I would not agree with this point. Essar and Shell are expanding rapidly here. I would have been happy if Reliance had done even 15% of either of these guys - it would have given them sufficient presence that one could take short detours to reach their bunks.

[am1m]

Didn't they already have the A-1 Plazas some time ago? Those were great places to stop, always used to look out for them on my highway rides. But they shut most down. So what's changed now?

[Stribog]

Originally Posted by GTO

Just like their failed attempt with kirana stores, I think Reliance will struggle with dominating retail on the highway. Don't underestimate the 'small businessmen' of India.

Not sure about Maha or the western part, but in TN / Karnataka (at least on the main high traffic highways) established chains coupled with BP / HP outlets DOMINATE. In fact on routes like Chennai Madurai, Chennai Bangalore a plethora of these smaller no name restaurants have been wiped out by Adyar Ananda Bhavan married to BPCL outlets.

With the rise of leisure driving and also better quality highways leading to more car driven trips (as opposed to buses previously) would mean families look for brand name eateries. Reliance when it first came up with this concept more than a decade ago got its timing and strategy wrong, I feel this time around they might pull it off.

An interesting concept note on this subject.

https://content.knightfrank.com/rese...etail-6990.pdf


Another factor to be considered is the explosive growth of expressways in India. These are access controlled and have tendered fuel vending and food vending activities which also will go to the big names.

From 500 kms of access controlled eways in 2015, this is at 1,800 now and set to hit 7,500 by 2025. Based on current tendering rates, this might very well double again by 2035.

Again, these are captive markets.

All I can say is, the future looks bright for us petrol heads and foodies both.

[condor]

Originally Posted by am1m

Didn't they already have the A-1 Plazas some time ago? ... But they shut most down. So what's changed now?

Those A-1 plazas shut down when Reliance petroleum stopped their retail sales for a few years in between. At least the highway bunks reopened, but the plazas didnt reopen. Many bunks are still in a derelict state, especially in rural areas.

[vigsom]

Originally Posted by condor

I had written to Reliance Petroleum customer care about the same, and got the expected reply that they are working on it

Originally Posted by GTO

If I see an option to fill up Reliance diesel on the highway, I will always stop there. But their biggest challenge in the cities is easy to guess = lack of real estate availability.

If one looks at Reliance bunks' current locations, it is very clear that the strategy is to keep 'em on highways and not spend astronomical amounts on acquiring prime land in cities and towns. Make no mistake - they have the cash and clout, but they know how much to spend and where to spend.

Originally Posted by GTO

Just like their failed attempt with kirana stores, I think Reliance will struggle with dominating retail on the highway

I've seen two faces of Reliance - long term vision, master strategies and never say die spirit in manufacturing, and on the other side, the lethargic side in both household and petroleum retail. At Reliance Fresh/Smart, expect foodstuff packets to be "manhandled" and tossed around, with the end result being, say, broken biscuits. This has been my experience at several Reliance stores. At the petroleum retail outlets, it would take me at least double the time to fill up fuel, pay via card, and then endure a long wait to fill up air.

Originally Posted by am1m

Didn't they already have the A-1 Plazas some time ago?

Originally Posted by TusharK

The company had started food and beverage outlets at its petrol pumps a few years ago, but with little success

True that their model of fuel dispensing and convenience points was unheard of in India until they set it up - but I found the A-1 plazas more tuned for truckers than other motorists, with the exception of one outlet(which is I think no longer functional) a km before the Ulundurpet toll plaza on the Chennai - Kanyakumari highway. This outlet used to be the designated rest stop for the TNSTC Volvo and several SETC buses until it closed down. Neat washrooms, and good food were their USP.

[Red Liner]

Guys Hold on!

The Reliance Bunks that we use today belong to Anil Ambani.

The Reliance + BP Bunks that are going to come up and is the focus of this article belong to Mukesh Ambani.

Reliance CDMA vs JIO.

Mukesh is a different animal. An execution beast. Yes, his retail customer facing experience is not up there, but I guess maybe BP will handle that (Shell level customer experience?).

Even the picture that is a part of this news article is not right IMO. They are two different entities.

[condor]

Originally Posted by vigsom

If one looks at Reliance bunks' current locations, it is very clear that the strategy is to keep 'em on highways and not spend astronomical amounts on acquiring prime land in cities and towns. Make no mistake - they have the cash and clout, but they know how much to spend and where to spend..

It's about branding. For people like me, we are familiar with Reliance and will look out for their bunks when outside. For others, who dont know the quality of Reliance (diesel at least), how will they know that they can safely use Reliance when outside the city ?

It's just like any other company. Branding is required. Company showrooms are a branding exercise, even if they make some losses.

Reliance does not need to have a wide network in cities, but enough to be in public eye. Agreed that a large part of their sales outside the city will be to truckers. But even the regular car owner also uses fuel.

[MayurS]

Originally Posted by Red Liner

Guys Hold on!

The Reliance Bunks that we use today belong to Anil Ambani.

The Reliance + BP Bunks that are going to come up and is the focus of this article belong to Mukesh Ambani.

Reliance CDMA vs JIO.

Mukesh is a different animal. An execution beast. Yes, his retail customer facing experience is not up there, but I guess maybe BP will handle that (Shell level customer experience?).

Even the picture that is a part of this news article is not right IMO. They are two different entities.

I don’t thinks that’s the case. Here in Nashik,Maharashtra we have three or four Reliance bunks which were opened like 5-6 years ago has receipt printed Reliance BP name on it since last 6 months or year

[ABHI_1512]

Our highways are in desperate need of proper rest stops. While BPCL already has the GHAR concept running in their COCO outlets, it is further nice to see that they have tied up with Cube Highways to set up even better amenities for travellers. BPCL Ghar outlets are a boon on our highways and now we see even IOC also setting up big COCO outlets (SWAGAT) providing ample service to the truckers as well as general travellers.

Barring the eastern side of India, almost every side has proper facilities in the form of private entities attached to petrol bunks. It would be nicer if the proposed facilities majorly focus on this side of India and its highways.

Reliance fuel is better compared to our holy trinity although I still think Bharat Petroleum is at par with them regarding the fuel quality and now with the JV with BP, I suppose they want to further their game in the retail space in line with the big ticket expenditures of RIL. Expect the defunct A1 plazas to reopen with better amenities now.

In a nutshell, exciting times for travellers who are brave enough to tackle the high fuel prices. Good amenities and good food is always welcome, the more the merrier !! Saving is a virtue and more so now if I have to continue my escapades

[jigar1791@gmail]

Originally Posted by Stribog

Not sure about Maha or the western part, but in TN / Karnataka (at least on the main high traffic highways) established chains coupled with BP / HP outlets DOMINATE. In fact on routes like Chennai Madurai, Chennai Bangalore a plethora of these smaller no name restaurants have been wiped out by Adyar Ananda Bhavan married to BPCL outlets.

There are a lot of Reliance Petroleum COCO joints dotting the Mumbai - Ahmedabad Highway. Head out north from Mumbai, enter Gujarat, and you'll see a COCO joint at regular intervals.

Not sure about other parts on MH, haven't seen one on highways towards Nashik and Pune. MPEW has 1(2?) COCO joint though, IIRC.

Regards,
Jigar Shah