On 1 October 2026, several business publications reported that Indian Oil Corporation (IndianOil) plans to sell packaged drinking water under its own brand at its fuel stations. The company itself would not bottle the water. It has asked for "aggregator" partners who would arrange manufacturing at approved plants and handle supply to its outlets.
For packaged drinking water (PDW) plant owners, this is worth following. Any new brand that relies on outside bottlers creates demand for plants that are fully licensed and audit-ready. Below we set out what has been reported, what is still unclear, and what a plant needs before it can bottle for any brand owner.
What has been reported so far
According to Business Standard (1 October 2026), IndianOil's Retail Sales division issued an Expression of Interest (EoI) on 18 September 2026. IndianOil would keep ownership of the brand, trademarks, artwork and packaging designs. The aggregator would arrange manufacturing at IndianOil-approved facilities and manage packaging procurement, production planning, warehousing, transport and inventory.
Business Today and Sahi (both 1 October 2026) reported that responses were due by 16 October 2026. The reports say the rollout would start at highway outlets and later extend to urban, semi-urban and rural outlets. Business Standard puts IndianOil's network at about 43,603 retail outlets, of which 21,435 are on national and state highways.
| Item | As reported | Source and date |
|---|---|---|
| EoI issued | 18 September 2026 | Business Standard, 1 Oct 2026 |
| Response deadline | 16 October 2026 | Business Today and Sahi, 1 Oct 2026 |
| Initial pack sizes | 250 ml, 500 ml and 1 litre PET; 1 litre as the lead pack | Business Standard, 1 Oct 2026 |
| Tentative prices (incl. GST) | 250 ml: Rs 6 · 500 ml: Rs 10 · 1 litre: Rs 20 | Business Standard, 1 Oct 2026 |
| Dealer margin | 25-35% of MRP, excluding GST | Business Standard, 1 Oct 2026 |
| IndianOil revenue share | At least 12% of dealer landed price, excluding GST | Business Standard, 1 Oct 2026 |
| Outlets covered first | Company-owned and dealer-owned fuel outlets and Kisan Seva Kendras | Business Today, 1 Oct 2026 |
| Excluded for now | LPG distributors, institutions, offices, e-commerce and general trade | Business Standard, 1 Oct 2026 |
The prices above are tentative figures as reported on 1 October 2026, not a launched MRP. Actual MRP, if the product launches, may differ by region. Always check the pack.
What is still unclear
None of the reports we reviewed gives eligibility criteria for aggregators or bottling plants, such as minimum capacity, turnover or certifications. No partners have been named and no launch date has been announced.
Indian PSU (5 October 2026) reported that a withdrawal notice for the EoI appeared on IndianOil's supplier portal, and that the rollout is "still subject to further decisions by the company". We could not confirm this independently. Anyone interested should check the current status directly on IndianOil's official tender portal.
Business Standard also reports that IndianOil may later look at premium water, natural mineral water, alkaline water and functional hydration products, subject to technical feasibility and regulatory compliance.
What this means for water plant owners
Whatever happens to this EoI, more brand owners are choosing to outsource bottling. A brand owner, or its aggregator, will normally shortlist only plants whose licences are current and whose records stand up to an audit. Before you approach any brand owner, check that the following are in order:
- FSSAI licence for the manufacturing unit, in the correct category for your turnover. From 1 April 2026, registration covers turnover up to Rs 1.5 crore, a State licence covers Rs 1.5-50 crore and a Central licence applies above Rs 50 crore. See our FSSAI licence service.
- High-risk category readiness. Since FSSAI's order of 29 November 2024, PDW is treated as a high-risk food category. That means pre-licence inspection, annual risk-based inspection and, for central licensees, an annual third-party audit. Our high-risk category explainer covers this.
- Scheme of Testing records. From 1 January 2026, monthly microbiological testing and source-water testing at FSSAI-notified NABL labs are compulsory, and records must be kept for five years. A brand owner's quality team will usually ask to see these first.
- CGWA NOC for your groundwater source. New PDW units are not allowed in over-exploited blocks. See CGWA NOC.
- Pollution Control Board consent to operate (CTO), valid and covering your current capacity. See CTE / CTO.
- Labelling and packaging. Legal Metrology declarations on every pack, and clarity on who holds the Plastic EPR obligation for the brand's PET bottles.
BIS certification has been voluntary for PDW since FSSAI's amendment notified on 17 October 2024. However, a brand owner can still set it as a commercial requirement in its own contract. Plants in Uttar Pradesh are an exception: the UP FSDA order of 14 October 2026 makes BIS certification compulsory there (see UP makes BIS compulsory).
How ClearPath Compliance India can help
We help PDW plants get and keep the approvals that brand owners and auditors check: FSSAI licensing and high-risk audit preparation, testing-scheme record keeping, CGWA NOC, Pollution Control Board consents, factory licence and fire NOC. If you want to bottle for a brand owner, we can review your plant's documents against our water plant approval checklist and list any gaps. Write to us at info@clearpathcomplianceindia.com.
This article is general information only, not legal advice. Facts, prices and rules are as reported on the dates stated above and may have changed since. Tentative prices are not confirmed MRPs, and MRP varies by region, so always check the pack. Brand and company names are trademarks of their respective owners and are used for identification only. This article is not sponsored or endorsed by any company or brand named.