HPCL: Retail Network Expansion for Navigating Energy Transition

The chief general manager (Retail) at Hindustan Petroleum Corporation Limited (HPCL) was reviewing the sites that had been shortlisted for network expansion. The company needed to select three sites out of six on the short list where it could expand its retail operations. Traditionally, the sales potential for HPCL’s main products—motor spirit and high-speed diesel—was an overarching factor for site selection. However, the company had to also now take into account the strategic requirement to expand the current retail fuel network while considering the energy transition as well as other growth avenues. As such, the network expansion strategy and site selection process had to be in alignment with the aspirational targets set by the company. For selecting the most suitable sites, a set of criteria was identified that aligned with HPCL’s targets. However, no single shortlisted site provided the maximum benefit across all criteria, so selecting the right sites for expansion would be a difficult task.