Indian Oil Corporation has signed a memorandum of understanding with Coffee Day Xpress for setting up coffee bars and kiosks at its retail outlets.

As part of the MoU, 10 kiosks of Xpress, part of the Amalgamated Bean Coffee Trading Company, will come up at select IOC outlets at the four metros besides Hyderabad, Bangalore, Pune, Chandigarh and Ahmedabad, IOC said in release in Mumbai on Thursday.

Currently, two such outlets are operating and by next year 100 such outlets are to come up throughout the country with an investment of Rs 3 crore (Rs 30 million), the release added.

The tie up between IOC and Xpress will not only be a profit-sharing one but also extend to the full range of cross selling between the two companies, the release said.

Xpresss presently has 82 kiosks operational in various cities.

IOC said it would shortly sign an agreement with Foodworld to set up convenience stores in select markets. The first pilot project in setting up a custom designed store at a petrol pump is set for a launch in Chennai.

Similar stores are expected to come up whereby IOC will offer space at retail outlets across the country with a range of space requirements between 100 and 150 sq ft at a nominal rent, the release added.