A SUMMER TRAINING PROJECT REPORT ON

“TO STUDY THE PURCHASE BEHAVIOUR OF COMPANIES W.R.T. HSD”

SUBMITTED IN THE PARTIAL FULFILLMENT FOR THE AWARD OF

DEGREE OF MASTER IN BUSINESS ADMINISTRATION 2009-11

UNDER THE GUIDANCE OF:

DR. VIKAS DAHIYA

PROJECT GUIDE
SUBMITTED BY:

NARAYAN SHARMA

ROLL NO.06315903909 (MBA, SEM –III SEC- A)

RUKMINI DEVI INSTITUTE OF ADVANCED STUDIES

(Approved by AICTE, HRD Ministry, Govt. of India)

Affiliated to Guru Gobind Singh Indraprastha University, Delhi

2A & 2B, Madhuban Chowk, Outer Ring Road, Phase-1, Delhi-110085.

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Student declaration……………………………………………………………………………i

Certificate from Company/Organization……………………………………..………………ii

Certificate from Guide…………………...……………………………………………....…....iii

Acknowledgement....................................................................................................................iv

ExecutiveSummary…………………………………………….…………………………..…..v

Chapter Scheme…………………………………………………………………………..vi

List of Graphs……………………………………………………………………………… viii

List of Charts……………………………………………………………………………….. ..ix

List if Abbreviations, if any…………………………………………………………………… x

CHAPTER- INTRODUCTION

1.1 Purpose of the study…………………………………………………..………...…

1.2 Research Objectives of the study…………………………………………………..

1.3 Research Methodology of the study………………………………………….

1. 3.1 Research Design……………………………… …………………………......

1.3.2 Data Collection- Primary & Secondary data…………………………………

1.3.3.1 Population……………………………………………………………..

1.3.3.2 Sample size……………………………………………………………

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 1.3.3.3 Sampling method……………………………………………………...

1.3.4 Method of data collection……………………………………………………..

1.3.4.1 Instrument for data collection…………………………………………

1.3.4.2 Drafting of a questionnaire……………………………………………

1.3.5 Limitations……………………………………………………………………

CHAPTER-2

Review of literature

CHAPTER-3

About Organization/ Company Profile…………………………………………………….

CHAPTER -4

About Topic ………………………………………………………………………………..

CHAPTER -5

Analysis…………………………………………………………………………………….

CHAPTER-6

Findings (If any)……………………………………………………………………………

CHAPTER-7
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Suggestion..............................................................................................................................

CHAPTER-8

Conclusion…………………………………………………………………………………

Bibliography

Annexure

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This is to certify that the project titled “TO STUDY THE PURCHASE
BEHAVIOUR OF COMPANIES W.R.T. HSD” an academic work done by
“NARAYAN SHARMA” submitted in the partial fulfillment of the
requirement for the award of the degree of “Masters in Business
Administration” from “Rukmini Devi Institute of Advanced Studies, New
Delhi.” under my guidance and direction. To the best of my knowledge and
belief the data and information presented by him in the project has not
been submitted earlier elsewhere.

Dr. Vikas Dahiya

(Project Guide)

RDIAS

5
 STUDENT DECLARATION

This is to certify that I have completed the Project titled “TO STUDY THE
PURCHASE BEHAVIOUR OF COMPANIES W.R.T. HSD” under the
guidance of “Dr. Vikas Dahiya” in the partial fulfillment of the requirement
for the award of the degree of “Masters in Business Administration” from
“Rukmini Devi Institute Of Advanced Studies, New Delhi.” This is an original
work and I have not submitted it earlier elsewhere.

(NARAYAN SHARMA)

Enrollment No. – 0631 5903909

(MBA, 3rd Sem, Sec- A)

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COMPANY CERTIFICATE

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 ACKNOWLEDGEMENT

"Gratitude is not a thing of expression; it is more matter of feeling."

There is always a sense of gratitude which one express towards others for
their help and supervision in achieving the goals. This formal piece of
acknowledgement is an attempt to express the feeling of gratitude towards
people who helpful me in successfully completing of my training.

I would like to express my deep gratitude to Mr. VISHWAJIT VERMA my

training coordinator for their constant co-operation. He was always there with
his competent guidance and valuable suggestion through out the pursuance of
this research project. Special thanks to MR. VIKAS DAHIYA who guided me
to work honestly and to give valuable suggestion for improving my work Last
but not least I would also like to place of appreciation to all the respondents
whose responses were of utmost importance for the project.

Above all no words can express my feelings to my parents, friends all those
persons who supported me during my project. I am also thankful to all the
respondents whose cooperation & support has helped me a lot in collecting
necessary information.

I would also like to thank almighty God for his blessings showered on me
during the completion of project report.

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 EXECUTIVE SUMMARY

In the broader sense training is necessary to make the students of professional

institutions familiar with industrial environment .This not only helps professionals
to speedily accommodate themselves in industries but also to have better usage of
their studies.

To be dynamic, strategic and work aggressively they need to know the policies ,
procedures and trends going in the present industrial environment apart from their
studies The training fulfils all these needs . Whether it is the question of
demonstrating a modernized procedure, step by step to an old production hand or
guiding a new division head through the intricacies of preparing his own budget,
the responsible supervisor or manager must make the trainee learn and
communicate.

The purpose and objective of the study is to analyze the different aspect of
financial and marketing position of the organization and list out the suggestions,
recommendations based on the studies.

The main source of study is primary and secondary data collected from the
annual end and other public reports and other information received from Indian Oil
Corporation Limited and market survey. The various modern and standard tools to
achieve the objectives of the study carry out the analysis of the data.

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 CHAPTER- 1

RESEARCH
METHODOLOGY

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1.1 OBJECTIVE OF THE STUDY

My Purpose of study was to find out the reasons that why companies are
purchasing from Retailers in spite of having EXPLOSIVE LICENSE as these
companies generally purchase in bulk quantity so we started this project with a
purpose that if we can come across any important finding which can be useful to
petroleum company so that they can boost up the current sales figure & specially to
help the customers as far as the consumption of HSD is concerned .

1.2 Research Objectives of the study

Research objectives was purely to find out the reasons, why companies are
purchasing from Retailers in spite of having explosive license so that we can come
across the Market statistics which will be helpful for the company to analyze the
customers on the basis of current consumption so that companies officers can
approach the company in convenient & in a effective manner.

1.3 Research methodology of the study

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In order to find out the real scenario of the HSD, first hand data could prove to be a
major source. For this collection of raw data is very important. As raw data
provides a great deal of information to the researcher and he can take decision on
the basis of information obtained. This statement has the implications enlisted
below:

● It will give a clear idea regarding the consumption of HSD in the companies.

● They can examine the available information in the form of data to make a
decision.

● This will give a clear idea regarding customer’s usage from HSD.

● This will help IOCL to take any decision whether to take necessary steps to
promote the program.

From this it can be concluded that Data collection is a very important part of
project. Project objectives were considered and a market survey was done. For this
survey following procedure was considered.

Process adopted:

Gaining knowledge about the problem:

For this the reading work was undertaken first in order to gain in depth
knowledge about the Gurgaon Companies. This was very useful while
developing questionnaire

1.3.1 Research Design

Descriptive Research Design

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  Descriptive research design is a scientific method which involves observing
and describing the behavior of a subject without influencing it in any way.

1.3.2 Data Collection

Primary data

 Directly talking to the respective customer

 Collecting the behavioral information from the IOCL officers

 Companies employees generally from Maintenance, purchase & Accounts

Departments.

Secondary Data

 Official Govt. Websites

1.3.3.1 Population

The Population was approximately eighty Customers

1.3.3.2 Sample Size

My Sample Size was forty Customers

1.3.3.3 Sampling Method

 CONVENIENCE SAMPLING

 JUDGEMENT SAMPLING

1.3.4 Methods of Data collection

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  Directly Visiting the Company

 Talking with the concerned customer

 If face 2 face is not possible than Telephone Calls

1.3.4.1 Instrument of DATA Collection

 Simple & Effective Questionnaire

1.3.4.2 Drafting of a Questionnaire

Steps in developments of survey instruments:

The main instrument required for survey was a well developed questionnaire. The
development of questionnaire took place in following steps:

Step 1

Research objectives are being transformed into information objectives

Step 2

The appropriate data collection methods have been developed

Step 3

The information required by each objective is being determined.

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 Specific Questions/ Scale measurement format is developed.

Step 4

Questions/ Scale measurements being evaluated.

Step 5

The number of information needed is being determined.

Step 6

The questionnaire and layout is being evaluated.

Step 7

Revise the questionnaire layout if needed.

Step 8

The questionnaire format is being finalized.

1.3.5 LIMITATIONS

 Some customers were not supportive so getting data from these companies
became very difficult
 Very high Temperature

 Distance to Gurgaon Region

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CHAPTER – 2

16
REVIEW OF LITERATURE

APPLICATION

HSD is being used in all the middle & large level of Organization for the Purpose
of running generators, boilers etc.

Background

HSD is very useful as far as the requirement of light in these industries is

concerned. The main purpose is to run the ELECTRICITY of the
organizations Workplace.
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Current scenario

After coming across various corporate, we came across the trend that they all are
turning towards the gaseous instruments & techniques which can impact the future
of the HSD AS GASEOUS is cheaper than the HSD.

HSD MARKET CONDITIONS

Currently, The market coverage is around 95% and the other 5% companies have
their Consumption from HSD to GASEOUS. In spite of all the market conditions,
the large number of companies are using HSD as its consumption cost is less than
that of the GASEOUS.

INTRODUCTION OF HSD

For self-ignition compression diesel engine. PETRONAS Diesel is a

high cetane index fuel designed for use in low and high speed self-
ignition compression engines to provide efficient, dependable and
smooth operation. It has the proper viscosity suitable for critical fuel
injection systems to provide maximum protection against wear and
leakage. Also suitable for industrial purpose especially for direct burning
i.e. boiler, furnace, dryer, etc.

PRECAUTION

May release Hydrogen Sulfide (H2S) gas which may be fatal if inhaled.
Combustible Hydrogen Sulfide (H2S) gas may cause irritation to eyes.
Prolonged or repeated skin contact may be harmful.
If swallowed, DO NOT induce vomiting. May cause chemical pneumonitis.

SPECIFICATION

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This diesel meets the following specifications:
SIRIM MS 123 (1993)
BS 2869 (1988)
ASTM D 975 (1991)

CHAPTER – 3

INTRODUCTION

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VISION:

“A major diversified, transnational, integrated energy company, with national

leadership and a strong environment conscience, playing a national role in oil
security & public distribution.”

INDIAN OIL: INDIA’S DOWNSTREAM MAJOR:

Indian Oil Corporation is an Indian public-sector petroleum company. It is

India’s largest commercial enterprise, ranking 145th on the Fortune Global 500
listing (2010). It began operation in 1959 as Indian Oil Company Ltd. The Indian
Oil Corporation was formed in 1964, with the merger of Indian Refineries Ltd.
Indian Oil and its subsidiaries account for a 47% share in the petroleum products
market, 40% share in refining capacity and 67% downstream sector pipelines

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capacity in India. The Indian Oil Group of companies owns and operates 10 of
India's 19 refineries with a combined refining capacity of 60.2 million metric
tonnes per annum (MMTPA, .i.e. 1.2 million barrels per day). These include two
refineries of subsidiary Chennai Petroleum Corporation Ltd. (CPCL) and one of
Bongaigaon Refinery and Petrochemicals Limited (BRPL).

From a fledgling company with a net worth of just Rs. 45.18 crore and sales of
1.38 million tonnes valued at Rs. 78 crore in the year 1965, Indian Oil has since
grown over 3000 times with a sales turnover of Rs. 285,337 crore, the highest–ever
for an Indian company, and a net profit of Rs. 2,950 crore for 2008-09.

Set up with the mandate of achieving self-sufficiency in refining and marketing

operations for a nascent nation set on the path of economic growth and prosperity,
Indian Oil today accounts for nearly half of India’s petroleum consumption,
reaching precious petroleum products to millions of people every day through a
countrywide network of around 35,000 sales points. They are backed for supplies
by 167 bulk storage terminals and depots, 101 aviation fuel stations and 89 Indane
LPG bottling plants. For the year 2008-09, Indian Oil sold 62.6 million tonnes of
petroleum products, including 1.7 million tonnes of natural gas.

The Corporation's cross-country network of crude oil and product pipelines,

spanning about 9,300 km and the largest in the country, meets the vital energy
needs of the consumers in an efficient, economical and environment-friendly
manner.

Indian Oil is investing Rs. 43,393 crore (US $10.8 billion) during the period 2007-
12 in augmentation of refining and pipeline capacities, expansion of marketing
infrastructure and product quality up gradation as well as in integration and
diversification projects.

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As the flagship national oil company in the downstream sector, Indian Oil reaches
precious petroleum products to millions of people every day through a countrywide
network of about 35,000 sales points. They are backed for supplies by 166 bulk
storage terminals and depots, 101 aviation fuel stations and 89 Indane (LPGas)
bottling plants. About 7,100 bulk consumer pumps are also in operation for the
convenience of large consumers, ensuring products and inventory at their doorstep.

Indian Oil operates the largest and the widest network of petrol & diesel stations in
the country, numbering over 17,600. It reaches Indane cooking gas to the doorsteps
of over 50 million households in nearly 2,700 markets through a network of about
5,000 Indane distributors.

Indian Oil’s ISO-9002 certified Aviation Service commands over 62% market
share in aviation fuel business, meeting the fuel needs of domestic and
international flag carriers, private airlines and the Indian Defence Services. The
Corporation also enjoys a dominant share of the bulk consumer business, including
that of railways, state transport undertakings, and industrial, agricultural and
marine sectors.

To safeguard the interest of the valuable customers, interventions like retail

automation, vehicle tracking and marker systems have been introduced to ensure
quality and quantity of petroleum products.

Indian Oil has set up subsidiaries in Sri Lanka, Mauritius and the United Arab
Emirates (UAE), and is simultaneously scouting for new opportunities in the
energy markets of Asia and Africa.

Lanka IOC Ltd. operates about 150 petrol & diesel stations in Sri Lanka, and has a
very efficient lube marketing network. Its oil terminal at Trincomalee is also Sri
Lanka's largest petroleum storage facility. Lanka IOC commissioned an 18,000

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tonnes per annum capacity lubricants blending plant and a state-of-the-art fuel and
lubricants testing laboratory at Trincomalee during 2007-08 besides commencing
bunkering business.

Indian Oil (Mauritius) Ltd. has an overall market share of nearly 20% and
commands a 32% market share in aviation fuelling business, apart from its
bunkering business. It operates a modern petroleum bulk storage terminal at Mer
Rouge port, besides 13 petrol & diesel stations. In addition to the ongoing
expansion of retail network, IOML has commissioned the first ISO-9001 product-
testing laboratory in Mauritius.

The Corporation's UAE subsidiary, IOC Middle East FZE, which oversees
business expansion in the Middle East, has commenced blending SERVO
lubricants and marketing petroleum products and lubricants in the Middle East,
Africa and CIS countries.

Performance during financial year 2009-2010

Indian Oil’s Gross Turnover (inclusive of excise duty) for the year 2009-10
reached a new high of Rs 2,59,360 crore, up by 12.1 % as compared to Rs.
2,71,412 crore in the previous year. The Profit After Tax was Rs. 10,998 crore.

The Corporation sold 63.70 million tonnes of petroleum products during the year
2009-10, as compared to 59.29 million tonnes during the previous year. This
includes sale of natural gas, which has gone up to 1.74 million tonnes in 2009-10
as compared to 1.48 million tonnes in the previous year. In addition, product
exports rose to 3.33 million tonnes from 3.13 million tonnes in the previous year.

The Corporation’s seven refineries surpassed 100% capacity utilization and

clocked the highest ever throughput of 47.4 million tonnes. Its pipelines network
too registered the highest ever operational throughput of 57.12 million tonnes of
23
crude oil and petroleum products. Among new businesses, Natural Gas Marketing
and Petrochemicals together generated revenues of over Rs 5,400 crore during the
year 2008-2010.

As a leading public sector enterprise of India, Indian Oil has successfully

combined its corporate social responsibility agenda with its business offerings,
meeting the energy needs of millions of people everyday across the length and
breadth of the country, traversing a diversity of cultures, difficult terrains and harsh
climatic conditions. The Corporation takes pride in its continuous investments in
innovative technologies and solutions for sustainable energy flow and economic
growth and in developing techno-economically viable and environment-friendly
products & services for the benefit of its consumers.

Mission

• To achieve international standards of excellence in all aspects of energy and

diversified business with focus on customer delight through value of products and
services, and cost reduction.

• To maximize creation of wealth, value and satisfaction for the stakeholders.

• To attain leadership in developing, adopting and assimilating state-of-the-art

technology for competitive advantage.

• To provide technology and services through sustained Research and

Development.

• To foster a culture of participation and innovation for employee growth and

contribution.

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• To cultivate high standards of business ethics and Total Quality Management for
a strong corporate identity and brand equity .

INDIAN OIL - A NATIONAL BRAND

IndianOil has been adjudged India's No. 1 brand by UK-based Brand Finance, an
independent consultancy that deals with valuation of brands. It was also listed as
India's 'Most Trusted Brand' in the 'Gasoline' category in a Readers' Digest - AC
Nielsen survey. In addition, IndianOil topped The Hindu Businessline's "India's
Most Valuable Brands" list.

However, the value of the IndianOil brand is not just limited to its commercial role
as an energy provider but straddles the entire value chain of gamut of exploration
& production, refining, transportation & marketing, petrochemicals & natural gas
and downstream marketing operations abroad. IndianOil is a national brand owned
by over a billion Indians and that is a priceless value.

Due to innovative initiatives, strong brand communications and sales promotion

campaigns conducted during the year, Indian Oil's branded fuels -
XTRAPREMIUM petrol and XTRAMILE diesel - maintained their firm leadership
status, with a market share of 48.6% and 59.6% respectively among branded fuels
in the market. XTRAPREMIUM and XTRAMILE are now available at 6,446 and
9,256 retail outlets of Indian Oil respectively.

Indian Oil is a heritage and iconic brand at one level and a contemporary, global
brand at another level. While quality, reliability and service remains the core

25
benefits to our customers, our stringent checks are built into operating systems, at
every level ensuring the trust of over a billion Indians over the last four decades.

IOC- Products

Indian Oil is not only the largest commercial enterprise in the country it is the
flagship corporate of the Indian Nation. Besides having a dominant market share,
Indian Oil is widely recognized as India’s dominant energy brand and customers
perceive Indian Oil as a reliable symbol for high quality products and services.

Benchmarking Quality, Quantity and Service to world-class standards is a

philosophy that Indian Oil adheres to so as to ensure that customers get a truly
global experience in India. Our continued emphasis is on providing fuel
management solutions to customers who can then benefit from our expertise in
efficient sourcing and least cost supplies keeping in mind their usage patterns and
inventory management.

26
Indian Oil is a heritage and iconic brand at one level and a contemporary, global
brand at another level. While quality, reliability and service remains the core
benefits to our customers, our stringent checks are built into operating systems, at
every level ensuring the trust of over a billion Indians over the last four decades.

The Retail Brand template of IOC consists of XtraCare (Urban), Swagat

(Highway) and Kisan Seva Kendra’s (Rural). These brands are widely recognized
as pioneering brands in the petroleum retail segment. Indian Oil’s leadership
extends to its energy brands - Indane LPG, SERVO Lubricants, Auto gas LPG,
XtraPremium Branded Petrol, XtraMile Branded Diesel, XtraPower Fleet Card,
Indian Oil Aviation and XtraRewards cash customer loyalty programme.

IOCL PRODUCTS IN THE MARKET

SERVO

Indian Oil's SERVO range of lubricants reigns as the undisputed market leader in
the Indian lubricants market. Known for its cutting-edge technology and high-
quality products, SERVO backed by Indian Oil's pioneering R&D, extensive
blending and distribution network, sustained brand enhancement and new
generation packaging is a one-stop shop for complete lubrication solutions in the
automotive, Industrial and marine segments.
In the retailing segment, besides Indian Oil petrol stations, SERVO range of
lubricants is available through a network of SERVOXpress stations, bazaar outlets
and thousands of auto spare parts shops across the country. The SERVO range
includes over 500 lubricants and 1200 formulations encompassing literally every
lubricant requirement.

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The SERVOXpress is a one-stop shop for quick, easy and convenient auto care,
providing customers with a refreshing experience. The SERVOXpress stations
have facilities for oil change, tyre/battery checkups, A/C service, vacuum cleaning,
perfuming, and upholstery cleaning, polishing and lamination installation too.

INDANE LPG GAS

Indane is today one of the largest packed-LPG brands in the world. Indian Oil
pioneered the launch of LPG in India in the 1970s and transformed the lives of
millions of people with the introduction of the clean, efficient and safe cooking
fuel. LPG also led to a substantial improvement in the health of women in rural
areas by replacing smoky and unhealthy chullahs with Indane. It is today a fuel
synonymous with safety, reliability and convenience. Indian Oil’s Indane LPG gas
is used in 40 million homes as cooking fuel and commands over48% market share
in India.

INDIAN OIL AVIATION SERVICES

Indian Oil Aviation Service is a leading aviation fuel solution provider in India and
the most-preferred supplier of jet fuel to major international and domestic airlines.
Between one sunrise and the next, Indian Oil Aviation Service refuels over 1500
flights – from the bustling metros to the remote airports linking the vast Indian
landscape, from the icy heights of Leh (the highest airport in the world at 10,682
ft) to the distant islands of Andaman & Nicobar.

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Indian Oil Aviation services have a market share of 65% with a network of 101
Aviation Fuel Stations (AFS) meets complete aviation fuel requirement of the
Defense services

DIESEL/GAS OIL

Petroleum derived diesel called as petrol diesel is a mixture of straight run product
( 150 ° and 350 °C ) with varying amount of selected cracked distillates and is
composed of saturated hydrocarbons and aromatic hydrocarbons .

Diesel is used in diesel engines, a type of internal combustion engine. Rudolf

Diesel originally designed the diesel engine to use coal dust as a fuel, but oil
proved more effective. Diesel engines are used in cars, motorcycles boats and
locomotives. Automotive diesel fuel serves to power trains, buses, trucks, and
automobiles, to run construction, petroleum drilling and other off-road equipment
and to be the prime mover in a wide range of power generation & pumping
applications. The diesel engine is high compression, self-ignition engine. Fuel is
ignited by the heat of high compression and no spark plug is used .The Indian
Standard governing the properties of diesel fuels is IS 1460:2005 (5th Rev).
Important characteristics are ignition characteristics, handling at low temperature,
flash point drilling and other off-road equipment and to be the prime mover in a
wide range of power. The Indian Standard governing the properties of diesel fuels
is IS 1460:2005 (5th Rev). Important characteristics are ignition characteristics,
handling at low temperature, flash point. The Indian Standard governing the
properties of diesel fuels is IS 1460:2005 (5th Rev). Important characteristics are
ignition characteristics, handling at low temperature, flash point. Diesel fuel often
contains higher quantities of sulphur. In India , emission standards (equivalent to
Euro II, Euro III, Euro IV) have necessitated oil refineries to dramatically reduce
29
the level of sulphur in diesel in view of the auto fuel policy brought in force by
Govt of India. BIS has brought out specification for "Diesel with 5% Biodiesel"
that may be marketed in near future.

AUTO GAS

AutoGas (LPG) is a clean, high octane, abundant and eco-friendly fuel. It is

obtained from natural gas through fractionation and from crude oil through
refining. It is a mixture of petroleum gases like propane and butane. The higher
energy content in this fuel results in a 10% reduction of CO2 emission as
compared to MS.

XTRAPREMIUM PETROL

XTRAPREMIUM Petrol is India’s leading branded petrol boosted with new

generation multifunctional additives known as friction busters that prevents
combustion chamber deposits. XTRAPREMIUM is custom designed to deliver
higher mileage, more power, and better pick up, faster acceleration, enhanced
engine cleanliness and lower emissions.

XTRAMILE

Indian Oil’s XTRAMILE Super Diesel, the leader in the branded diesel segment,
is blended with world-class multi-functional fuel additives. Commercial vehicle
owners choose XTRAMILE because they see a clear value benefit in terms of
superior mileage, lower maintenance costs and improved engine protection. A
growing section of customers who own diesel automobiles, both in the ‘lifestyle’

30
and ‘passenger’ category, prefer XTRAMILE as a fuel for its added and enhanced
performance. XTRAMILE has brought in a huge savings in the high mileage
commercial vehicles segment. Transport fleets that operate a large number of
trucks crisscrossing the country are using XTRAMILE to benefit from higher
mileage and reduced maintenance costs

XTRAMILE SUPER DIESEL

Indian Oil’s XTRAMILE Super Diesel, the leader in the branded diesel segment is
blended with world-class ‘Multi Functional Fuel Additives (MFA). Commercial
vehicle owners choose XTRAMILE because they see a clear value benefit in terms
of superior mileage, lower maintenance costs and improved engine protection. A
growing section of customers who own diesel automobiles, both in the ‘lifestyle’
and ‘passenger’ category, prefer XTRAMILE as a fuel for its added and enhanced
performance. XTRAMILE has brought in a huge savings in the high mileage
commercial vehicle segment. Transport fleets that operate a large number of trucks
crisscrossing the country are using XTRAMILE to not only obtain a higher
mileage but also for low maintenance costs.

XTRAPOWER FLEET CARD

The XTRAPOWER Fleet Card program is a complete smart card-based fleet

management solution for fleet operators and Corporate for cashless purchase of
fuel & lubes from designated retail outlets of Indian Oil through flexible pre-paid
and credit facilities

31
The fleet card program also offers an exciting rewards program and unique
benefits like personal accident insurance cover and vehicle tracking facilities. In
just under two years of its launch, Indian Oil’s XTRAPOWER Fleet Card has
emerged as the largest fleet card in the country with the widest retail outlet
coverage.

SUPERIOR KEROSENE OIL

Kerosene is distillate fractions of crude oil in the boiling range of 150-250°C. They
are treated mainly for reducing aromatic content to increase their smoke point
(height of a smokeless flame) and hydro fining to reduce sulphur content and to
improve odour, colour & bur Kerosene is used as a domestic fuel for heating /
lighting and also for manufacture of insecticides/herbicides/fungicides to control
pest, weeds and fungi. Since kerosene is less volatile than gasoline, increase in its
evaporation rate in domestic burners is achieved by increasing surface area of the
oil to be burned and by increasing its temperature. The two types of burners which
achieve this fall into two categories namely vaporisers & atomis ersning qualities
(char value).

Kerosene is used as a domestic fuel for heating / lighting and also for manufacture
of insecticides/herbicides/fungicides to control pest, weeds and fungi. Since
kerosene is less volatile than gasoline, increase in its evaporation rate in domestic
burners is achieved by increasing surface area of the oil to be burned and by
increasing its temperature. The two types of burners which achieve this fall into
two categories namely vaporisers & atomiser

32
“SWAGAT” HIGHWAYS FLAGSHIP RETAIL OUTLETS

There are number of such retail outlets planned across the country out of which
many have been commissioned with a complement if fuel and non-fuel. Non-
fueling offering through ‘Best-in-class’ alliance on exclusive basis wherever
possible communication, food, rest, healthcare, parking vehicle care etc

XTRA CARE

The launch of Xtra Care was the culmination of a series of plans in retail design,
product and service up gradation, capability training, automation, loyalty
programme, retail site management techniques all benchmark to global standards.
While the industry standard is to take samples on a quarterly basis, Indian Oil has
moved several steps ahead by introducing fortnightly random sampling with
specific importance given to Research Octane Number (RON) sampling which is
truly the definitive test for quality and quantity

XTRAREWARDS LOYALTY PROGRAM

Indian Oil XTRAREWARDS is India's first on-line rewards program that seeks to
inculcate the habit of redeeming points. The loyalty program rewards customers

33
paying by cash, credit and debit cards.Each transaction is confirmed on-line
through a charge slip and customers can earn points on fuel/lube purchases at
participating Indian Oil Retail Outlets. Additional points can also be earned outside
the Indian Oil network, covering prominent FMCG, Food, Automobile, Travel,
Entertainment, Apparel and Hospitality sectors

IOC Services

Indian Oil provides a wide range of marketing services and consultancy in fuel
handling, distribution, storage and fuel/lube technical services. With a formidable
bank of technical and engineering talent, Indian Oil is fully equipped to handle
small to large-scale infrastructural projects in the petroleum downstream sector
anywhere in the country. Our project teams have independently or jointly as a
consortium, have set up depots, terminals, pipelines, aviation fuel stations, filling
plants, LPG bottling plants, amongst others. Indian Oil’s fuel management system
to bulk customers offer customized solutions that deliver least cost supplies
keeping in mind usage patterns and inventory levels. A wide network of lubricant
and fuel testing laboratories are available at major installations which is further
backed by sector-wise expertise in the core sectors of power, steel, fertilizer, gas
plants, textile mills, etc. Cutting edge systems and processes are designed around
one simple belief-to provide valuable customers with an unbeatable edge in their
business. Indian Oil’s supply and distribution network is strategically located
across the country linked through a customized supply chain system backed by
front offices located in conceivably every single town of consequence. The wide
network of services offered by Indian Oil, Marketing Division is well maintained,
which includes; commercial/reticulated LPG; total fuel management/ consumer
pumps; Indian Oil Aviation Service; LPG Business (non-fuel alliances); loyalty
programs; retail business (non-fuel alliances) and SERVO technical services.

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IOC Brands:

35
36
CHAPTER-4

TOPIC

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 The topic of my project is

“FIND OUT THE REASONS, WHY COMPANIES ARE

PURCHASING HSD FROM RETAILERS IN SPITE OF HAVING
EXPLOSIVE LICENSE”

CHAPTER -5

FINDINGS & ANALYSIS

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 SWOT Analysis for IOCL

External environment

Opportunity:
The IOCL has much opportunity in the present market conditions. This is because the petroleum products have
become a need for everyone and still contains a lot of scope for customization. The various opportunities are listed
below.

• Since the company has the maximum number of outlets and also the maximum number of refineries in India, it can
very easily go for extension at any point of time, and can introduce any new products, which will get support from
its huge market network.

• The company can think over the issue to build its own pipelines, so that it will be an independent player

and it will also support its aviation fuel supply.

• Company has a great scope in E&P. It is already involved in E&P but only in a very limited scale.

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 Threats:
Since the company is the market leader in the field, so have maximum threats from the other players and many other
issues. The lists of threats are given below.

 The foreign players with more advanced technology are the biggest threat

for the company.

• The crude oil supply is also a big issue in front of the company, because the company cannot fix its price and so,
some time had operated in loss also.It is the biggest problem because the maximum part of their crude is been
imported.

• In future the market will welcome more private players, which will eat up

its market share.

• If the Govt. Policies allow the private players to set their own price, the private player can seriously harm the
market share of IOCL.

Internal environment

Strengths:
• IOC controls 10 refineries, by virtue of which it has a total share of around 40% of India’s overall refining
capacity. IOC has also acquired equity stakes in CPCL and BRPL, and in 2001, these refineries became subsidiaries
of IOC.

• 58% of IOC’s refining capacity is located in the Northern and Western regions, which are high demand and high
growth areas

• Although its refineries are located the interior of the country and not near the major ports IOC has a very strong

40
distribution network by virtue of having a share of 48% in the country’s product pipelines. The total capacity of
these product pipelines is 49.79 MMT.

• IOC also acquired management control of the marketing company IBP, thereby strengthening its position in these
activities. It also has a dominant share in all segments in terms marketing infrastructure. Its network includes 19830
retail outlets, 8000 LPG distributors, and 6492 kerosene/LDO dealers.

• By virtue of entering into extensive joint venture agreements, and of its own initiative as well, the company has a
presence in various other related activities such as petroleum storage, pipelines, lube additives, exploration,
petrochemicals, gas, training and consultancy, etc.

• The company has already entered overseas markets such as Sri Lanka, Maldives, and Oman and is presently
considering entering Turkey through a JV. The company is in talks with Caliak of Turkey to set up a 10 million TPA
grass root refinery with an investment of $2 billion and establish retail business. IOC is also weighing the possibility
of entering Indonesia.IOC has also started exploring the overseas markets for increasing its scope of operations. Its
interests include downstream activities in Sri Lanka, Maldives, Oman, and Nepal; interest in the lubes business in
Maldives, Dubai, Bangladesh, Sri Lanka, etc; among others.

Weakness:
The company is the market leader in the industry, but still it had many weaknesses.

The list is given below.

• The major weakness for the company is the R&D although The Company has started working on it.

• The petrochemical product development technology is another weakness for the company.

• The technological drawback, as compared to some major foreign player is another weakness for the company

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Q1 What is the monthly requirement of diesel in the company?

 APPROX. 60% OF COMPANIES USING MORE THAN 20 KL PER MONTH

 ON THE OTHER SIDE, 40% OF COMPANIES ARE USING LESS THAN 29 KL PER MONTH

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Q2.

Q 2 What is your current source of supply?

GENERALLY, THE COMPANIES ARE PURCHASING FROM RETAILERS

a. RETALERS SALE IS 65%

b. COMPANIES SALE IS 35%

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 2.

RETAILERS SUPPLY- 66.60%

PETROLEUM COMPANIES- 33.40%

Q.3 Why are you purchasing from retail ?

MAIN REASONS ARE

A.) CREDIT FACILITY &

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 B.) LESS LEAD TIME

Q.5 Why don’t you prefer Direct source as it provides many benefits?

SMALL COMPANIES DON’T LIKE TO APPROACH COMPANIES BECAUSE

A.) GENERALLY, THEIR CONSUMPTION IS LESS

B.)COMPANY ALSO DON’T PROVIDE ANY CREDIT FACILITY

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Q.6 What is your current credit limit?

COMPANIES AVAIL CREDIT LIMIT OF APPROX.

A.) 4 DAYS
46
 B.) 8 DAYS

C.) 14 DAYS

Q. 7 Are you satisfied with th e retailers quantity?

COMPANIES ARE NOT SATISFIED WITH THE RETAILERS QUALITY

A.) 70% COMPANIES COMPLAIN ABOUT THE ADULTERATION IN SUPPLY

B.)30 % ARE SATISFIED WITH THE HSD SUPPLY

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Q.8 What is the current modeof payments?

COMPANIES CURRENT MODE OF PAYMENT

A.) 60 % COMPANIES AVAIL THE CREDIT FACILITY

B.)25% COMPANIES ARE IN CONTRACT WITH THE RETAILERS

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 C.)15% COMPANIES PURCHASE HSD ON CASH BASIS.

Exclusive Findings

There are various reasons which I came across through out my research,

lets discuss them one by one

1.) CREDIT FACILITY

2.) LEAD TIME IS LESS IN CASE OF RETAILERS

3.) CONSUMPTION IS LESS THAN 12,000 LITER

4.) SOME CUSTOMERS ALSO COMPLAIN ABOUT THE WRONG PRACTICES

5.) COMPANIES ARE NOT ABLE TO STAN D UP WITH THE RULES & REGULATIONS LAID DOWN

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BY THE DISTRIBUTOR COMPANIES

CHAPTER- 6

SUGGESTIONS

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  If Petroleum Ministry Can Give a credit of 7-8 days than large number

of companies will consume HSD from them

 Petroleum company should work effectively to take strict action against

the culprit transporters

 Petroleum company should ensure that exactly the same quantity should

reach the customer from the distributing point

 Oil marketing companies also need to ensure that the customer are getting the best possible

51
benefits.

CHAPTER – 7

CONCLUSION
52
 On The Basis Of My Research, I Have Concluded That 70% Of Companies Are Purchasing
From Retailers as their company policies doesn’t allow them to give advance Payments. There
are other companies who are looking for quick supply & they are approximately 20% of the
sample companies or whole data.

5% of the companies complain about the supply of less Quantity & Adulteration in the
HSD. 25% Companies are having less than minimum supply of the company. Generally
companies are going for contract with the nearby Retailers, there are around 15% companies

53
which are availing these services

Company can increase its market share to a great extent or level, if they take some
stringent action against the culprit transporters & ensure adequate & quality of the delivery
product

BIBLIOGRAPHY

54
WEBSITE:

WWW.IOCL.COM

 ANNUAL REPORT OF IOCL.

 GUPTA S. P. , STATISTICAL METHODS

 KOTHARI C. R. , RESEARCH METHODOLOGY.

 MARKETING MANAGEMENT. KOTLER P.,

 GURGAON INDUSTRIAL DIRECTORY

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 ANNEXURE

QUESTIONNAIRE FOR SURVEY

56
 Name of the consumer:

Address of the company:

Contact No:

Contact Names:

Email ID:

Q. Q 1 What is the monthly requirement of diesel in your company?

a) More than 20 kl b) Less than 20 kl

Q.2 Why is your current source of supply?

a)__________ b) __________________

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Q.3 why are you purchasing from retail?

a)__________

b) ______________

Q.4 why don’t you prefer Direct Source as it provide many benefits?

a) __________________ b) ____________

Q.5 What is your current credit limit?

a) 3-5 days b) 6-8 days

c) Any other

Q.6 What is the your current lead time?

 _____________________

Q.7 Are you satisfied with the Retailers quality?

a) Yes b) No

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Q.8 What is the current mode of payment?

a) Cash b) Credit

Q.9 What is the current storing capacity of your Tanks, Drums or Others?

a)_________________________________________________

Q.10 Do you require any assistance from our side?

a) Yes b) No

Q.11 If Yes then feel free to write down?

______________________________________________

______________________________________________

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