Indian Oil Corporation Limited (IndianOil) is going to enter the packaged drinking water market with its own branded product, and a plan for this to be rolled out to more than 43,000 retail fuel outlets in India.
The state-owned oil marketing company's larger strategy to expand its non-fuel retail business and make money from its vast petrol pumps. IndianOil is seeking responses from aggregator partners to the packaged drinking water business.
According to the EOI, IndianOil has 43,603 outlets in its retail network and the packaged drinking water rollout is planned in phases. Highway outlets are expected to receive priority because there is high demand for drinking water among motorists and other travellers.
Almost 21,435 IndianOil retail outlets are located on highways that will be the first focus of the initial rollout. The company can subsequently expand availability to urban, semi-urban and other retail outlets in the country.
The first product range will be PET bottles made in 250 ml, 500 ml and 1 litre sizes. The 1 litre bottle is scheduled to be the lead product in the future. IndianOil's offer also leaves room for the creation of premium packaged water, natural mineral water, alkaline water and functional hydration products. There are no plans yet for the final product range and consumer-facing brand name and the EOI refers to the offering as IOCL-branded packaged drinking water.
IndianOil is also proposing an aggregator-led, multi-year revenue-sharing model for the initiative. The aggregator or aggregators would be in charge of various aspects such as manufacturing at approved facilities, quality control, supply chain management, logistics and rollout. IndianOil would hold the brand and control the commercial aspects including product pricing, dealer landed price-to-MRP ratio and dealer margins.
The proposal illustrates that the world’s largest fuel retailers are increasingly looking beyond petrol and diesel sales. IndianOil has more than 42,000 fuel stations and serves around 3.6 crore customers a day with retail outlets.
And so the packaged drinking water proposal is being framed in the context of Indian Oil’s broader non-fuel retail strategy. The company has already been in the process of forging partnerships and adding services at its stores. And if customers, especially longer distance customers, buy drinking water while waiting for fuel or other services, the new offer could help them do so.
The proposal also comes at a time when India's packaged drinking water market is expanding, supported by growing urbanisation, mobility and demand for convenient drinking-water options. A big petrol-pump network could provide IndianOil with direct access to customers across highways, cities and smaller towns.
🚨 Indian Oil plans to launch its own packaged drinking water brand across its 43,000 fuel outlets in India. pic.twitter.com/N49nLPBB1x
— Indian Tech & Infra (@IndianTechGuide) September 30, 2026
The initiative is still in the partner-selection process and not a fully launched nationwide initiative. IndianOil published the EOI on September 18, 2026 and sought aggregators for the packaged drinking water project. The tender timeline shows October 16, 2026 as the expected date for submitting bids, and bids will be opened on October 19.
The proposed packaged water business could eventually bring IndianOil another consumer-facing revenue stream and make fuel stations convenient for convenience shopping. If it gets done as planned, motorists across India will see IndianOil-branded packaged drinking water alongside fuel and other services in thousands of stores. The exact launch date, final brand name, pricing and availability will depend on the outcome of the ongoing EOI and subsequent rollout process.
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