Essar Oil to open more than 400 outlets in UK

23 May 2016 (Last Updated May 23rd, 2016 18:30)

Essar Oil UK plans to add 400 more outlets in the country.

Essar Oil UK plans to add 400 more outlets in the country.

The company posted net profits of $244m in fiscal year 2015-2016, three times more than $70m posted a year ago.

A unit of Essar Energy, Essar Oil currently operates seven retail outlets in the UK.

The plan to open more retail outlets is part of its strategy to bolster margins.

"Retail sales can help us push our margins by $2-$3 a barrel of refined fuel."

Essar Oil UK executive chairman Naresh Nayyar was quoted by PTI as saying: "Retail sales can help us push our margins by $2-$3 a barrel of refined fuel, as we can gain on dealer commissions and other areas of downstream integration. "

Nayyar added that this expansion strategy is capex neutral as the firm will be only re-branding some already operating dealer-owned or dealer-operated outlets.

It plans gain a share of 10% in the fuel retail sector and intends to leverage on the 'Made in UK' campaign.

Essar plans to offer easy contracts and better supply and financial terms to fuel dealers.