FINAL REPORT ON 3

MONTHS OF
INTERNSHIP AT

TOPIC: selling of XtraRewards cards, Alliance partners

and Recruitments of potential DSA.

FACULTY GUIDE: Mr. Suryakant Mishra

COMPANY GUIDE: Mr. Simitbinayak Endow

SUBMITTED BY: Shakeel Damani.

ENR. NO. 8NBBB083

 Content

 OVERVIEW OF OIL INDUSTRY

 COMPANY PROFILE
 PRODUCTS
 SERVICE
 SWOT
 SIP TOPIC INTRO
 ACHIEVEMENTS AND FINDINGS
 CONCLUSIONS/LEARNINGS
Overview of oil industry
The petroleum industry includes the global processes of exploration,
extraction, refining, transporting (often by oil tankers and pipelines),
and marketing petroleum products. The largest volume products of
the industry are fuel oil and gasoline (petrol).

Petroleum is also the raw material for many chemical products,

including pharmaceuticals, solvents, fertilizers, pesticides, and
plastics. The industry is usually divided into three major components:
upstream, midstream and downstream. Midstream operations are
usually included in the downstream category.

Petroleum is vital to many industries, and is of importance to the

maintenance of industrialized civilization itself, and thus is a critical
concern for many nations. Oil accounts for a large percentage of the
world’s energy consumption, ranging from a low of 32% for Europe
and Asia, up to a high of 53% for the Middle East. Other geographic
regions’ consumption patterns are as follows: South and Central
America (44%), Africa (41%), and North America (40%). The world
consumes 30 billion barrels (4.8 km³) of oil per year, with developed
nations being the largest consumers. 24% of the oil produced in 2004
was consumed in the United States.[1] The production, distribution,
refining, and retailing of petroleum taken as a whole represents the
world's largest industry in terms of dollar value.

The petroleum industry contains some of the world’s largest

companies and has a strong influence on important global
geopolitical developments. Economic growth, behaviour of the OPEC
countries, export of crude oil by republics of the former Soviet Union,
and increased environmental concerns and regulations are some of
the important drivers in this industry. The petroleum industry is
vulnerable to supply and demand imbalances. Prices have fluctuated
from $4 to $40 in the past.

In India, the petroleum industry is still regulated though the

government is slowly but surely liberalizing the industry. Almost 95
percent of petroleum products in India are controlled, the exceptions
being lubricants, LPG, toluene and benzene. The Oil Co-ordination
Committee (OCC), a central government body is responsible for
important decisions regarding investments, location, production, and
distribution and pricing of petroleum products. By allowing private
companies to market some of the products, and by rationalizing the
import tariffs, the government hopes to pave the way for a free
market in the oil industry in a gradual manner.

The controls of the past have significantly affected the structure of

the Indian petroleum industry. While the global trend is of integrated
oil companies with a presence in all the sectors viz. exploration,
refining, marketing and even manufacture of downstream products,
presence of Indian companies is typically restricted either to the
upstream or to the downstream sectors. The oil sector is currently
dominated by the public sector. But the private sector is poised for
an increased role owing to the large number of projects on the anvil.
In India, demand for petroleum products is expected to grow at 7
percent till 2003, compared to the world average of 2 percent.

Till 1996, the oil sector in India was a predominantly utility industry
sector whose earnings were not prone to global price-volume
fluctuations. With the ongoing process of decontrol, pricing of some
petro-products such as diesel has been linked to international prices.
By April 2002, the sector is expected to be de-regulated completely.
The prevailing APM (administered price mechanism) will be fully
dismantled.

COMPANY PROFILE
INDIAN OIL. INDIA INSPIRED

As a leading public sector enterprise of India, IndianOil 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 help enrich the quality of life of the community and preserve
ecological balance and heritage through a strong environment
conscience."
VISION
A major diversified, transnational, integrated energy company, with
national leadership and strong environment conscience, playing a
national role in oil security and public sector.

COMPANY FORMATION

In the year 1959 as Indian oil company Ltd. Indian oil corporation ltd.
was formed in 1964 with the merger of Indian refineries ltd.

DISTINCTION

Indian oil corporation ltd. Is india’s largest commercial enterprise,

with a sales turnover of rs. 2,47,479 crore and profits of rs. 6963
crore for the year 2007-08. Indian oil is also the highest ranked Indian
company in the prestigious fortune ‘global 500’ listing, at 116th
position in 2008. It is also tha 18th largest petroleum company in the
world. Indian oil and its subsidiaries account for 49% petroleum
products market share, 40.40% refining capacity and 69%
downstream sector pipelines capacity in india.

It also owns 10 out of 19 refineries with a combined refining capacity

of 60.20 million metric tones per annum. These include two refineries
of subsidiary Chennai petroleum corporation ltd.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.
IndianOil 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
upgradation as well as in integration and diversification projects.

FUTURE PLANS

IndianOil is currently forging ahead on a well laid-out road map

through vertical integration— upstream into oil exploration &
production (E&P) and downstream into petrochemicals – and
diversification into natural gas marketing, besides globalisation of its
downstream operations.

In petrochemicals, IndianOil is envisaging Rs. 30,000 crore (US$ 7.4

billion) investment by the year 2011-12. Through the world’s largest
single-train Linear Alkyl Benzene (LAB) plant with an annual capacity
of 1,20,000 tonnes set up at its Gujarat Refinery, the Corporation has
already captured a significant market share of LAB in India, besides
exporting the product to Indonesia, Turkey, Thailand, Vietnam,
Norway and Oman. A world-scale Paraxylene/Purified Terephthalic
Acid plant (annual capacities: PX - 3,63,000 tonnes, PTA – 5,53,000
tonnes) for polyester intermediates is already in operation at Panipat,
while a Naphtha Cracker with a capacity of 800,000 tonnes of
ethylene per annum, equipped with downstream polymer units is also
coming up at Panipat. A refinery-cum-petrochemicals complex at
Paradip, to be completed by the year 2011-12, will strengthen the
Corporation’s presence in the sector.

In E&P, IndianOil has bagged eight oil & gas blocks and two Coal Bed
Methane blocks under NELP (New Exploration Licencing Policy)
rounds in India, in consortium with other companies. It has also
acquired participating interest in two onshore blocks in Assam and
Arunachal Pradesh. Overseas ventures of the Corporation include two
blocks in Sirte Basin and Areas 95/96 in Ghadames basin of Libya,
Farsi Exploration Block in Iran, onshore farm-in arrangements in
Gabon, an on land block in Nigeria and two onshore blocks in Yemen.
IndianOil has incorporated Ind-OIL Overseas Ltd. – a special purpose
vehicle for acquisition of overseas E&P assets – in Port Louis,
Mauritius, in consortium with Oil India Ltd. (OIL).

In natural gas business, IndianOil is targeting sale of 2 million tonnes

in 2008-09. A technology innovation has been initiated to reach LNG
(Liquefied Natural Gas) directly to the doorstep of bulk consumers in
cryogenic containers for industrial as well as captive power
applications. An LNG import terminal is proposed to be set up at
Ennore near Chennai. City gas distribution projects are in the pipeline
in partnership with other companies.

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.

OPERATION OF IOCL
REFINING

Born from the vision of achieving self-reliance in oil refining and

marketing for the nation, IndianOil has gathered a luminous legacy of
more than 100 years of accumulated experiences in all areas of
petroleum refining by taking into its fold, the Digboi Refinery
commissioned in 1901.

IndianOil controls 10 of India’s 20 refineries. The group refining

capacity is 60.2 million metric tonnes per annum (MMTPA) or 1.2
million barrels per day -the largest share among refining companies
in India. It accounts for 33.8% share of national refining capacity.

The strength of IndianOil springs from its experience of operating the

largest number of refineries in India and adapting to a variety of
refining processes along the way. The basket of technologies, which
are in operation in IndianOil refineries include: Atmospheric/Vacuum
Distillation; Distillate FCC/Resid FCC; Hydrocracking; Catalytic
Reforming, Hydrogen Generation; Delayed Coking; Lube Processing
Units; Visbreaking; Merox Treatment; Hydro-Desulphirisation of
Kerosene&Gasoil streams; Sulphur recovery; Dewaxing, Wax Hydro
finishing; Coke Calcining, etc.

The Corporation has commissioned several grassroot refineries and

modern process units. Procedures for commissioning and start-up of
individual units and the refinery have been well laid out and
enshrined in various customized operating manuals, which are
continually updated.

IndianOil refineries have an ambitious growth plan with an outlay of

about Rs. 55,000 crore for capacity augmentation, de-bottlenecking,
bottom upgradation and quality upgradation. Major projects under
implementation include a 15 MMTPA grassroots refinery at Paradip,
Orissa, Naphtha Cracker and Polymer Complex at Panipat, Panipat
Refinery expansion from 12 MMTPA to 15 MMTPA, among others.

In addition, petrol quality upgradation projects are under

implementation at Panipat, Mathura, Barauni, Guwahati and Digboi
refineries proposed to be completed by the end of 2009.

On the environment front, all IndianOil refineries fully comply with

the statutory requirements. Several Clean Development Mechanism
projects have also been initiated. To address concerns on safety at
the work place, a number of steps were taken during the year,
resulting in reduction of the frequency of accidents.

Innovative strategies and knowledge-sharing are the tools available

for converting challenges into opportunities for sustained
organisational growth. With strategies and plans for several value-
added projects in place, IndianOil refineries will continue to play a
leading role in the downstream hydrocarbon sector for meeting the
rising energy needs of our country.
PIPELINE

In India’s infrastructure, the petroleum pipelines form a crucial part

enabling sustained availability of petroleum products in all parts of
the country for economic growth. The pipelines transport petroleum
products from refineries to demand areas and crude oil from import
terminals as well as domestic sources to the inland refineries. India
being a vast country, a wide network of pipelines becomes the
paramount requirement of transporting petroleum products to
interiors from refineries and crude oil to the land locked refineries.

It is an established fact that pipelines are preferred as a cost

effective, energy efficient, safe and environment friendly method of
transportation for petroleum products and crude oil and are playing a
leading role in meeting the demand for petroleum products in India.
Economic growth and expansion of infrastructure in India offer
opportunities to better utilize the existing pipeline network in addition
to expand by constructing new pipelines.

IndianOil, the pioneer in cross-country petroleum product pipeline in

the Indian sub-continent constructed and commissioned its first
petroleum product pipeline, Guwahati-Siliguri Pipeline in the year
1964. Since then IndianOil has mastered the art and technology of
pipeline engineering. Over the last four decades the pipeline network
of IndianOil has grown to 10,000 km with a capacity of about 62
million metric tonnes per year. Commissioning of new projects worth
about Rs. 2,300 crore including LPG and R-LNG pipelines will reach
the capacity to 75 million metric tonnes per annum with a network of
over 10,000 km.

IndianOil’s sustained pursuit and implementation of proven safety

and environmental management systems have brought rich results.
All operating pipeline units have been accredited with ISO 9000 and
ISO 14001 certificates.

Various initiatives in the field of project management, operations and

maintenance including training in countries like Oman, Ethiopia,
Kuwait and Sudan have been undertaken.

Today IndianOil is well placed to provide seamless services in the

entire spectrum of petroleum pipelines covering techno-economic
feasibility studies, design and detailed engineering, project
execution, operations and maintenance, consultancy services in
augmentation and modernization, etc.

Supervisory Control and Data Acquisition (SCADA) and application

software expertise are available from project implementation to
commissioning including field services, maintenance and operational
support. Tanker handling, petroleum product and crude oil
accounting, quality control, ocean loss control, pigging procedure
development and analysis of pigging data, selection, testing and
evaluation of drag reducers, operations and maintenance of tank
farm and pump stations are other areas of expertise available with
IndianOil’s Pipelines Division.

FUEL MARKETING

IndianOil 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, IndianOil 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. IndianOil'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, fertiliser, 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. IndianOil'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 IndianOil, Marketing Division

is illustrated in this section, which includes; commercial/reticulated
LPG; total fuel management/ consumer pumps; IndianOil Aviation
Service; LPG Business (non-fuel alliances); loyalty programs; retail
business (non-fuel alliances) and SERVO technical services.

RESEARCH AND DEVELOPMENT

IndianOil's worldclass R&D Centre, established in 1972, has state-of –

the art facilities and has delivered pioneering results in lubricants
technology, refining process, pipeline transportation, bio-fuels and
fuel-efficient appliances.

Over the past three decades, IndianOil R&D Centre has developed
over thousands of formulations of lubricating oils and greases
responding to the needs of Indian industry and consuming sectors
like Defence, Railways, Public Utilities and Transportation. The Centre
has also developed and introduced many new lubricant products to
the Indian market like multigrade railroad oils.

Focussed research in the areas of lubricants and grease formulations,

fuels, refining processes, biotechnology, additives, pipeline
transportations, engine evaluation, tribiological and emission studies,
and applied metallurgy has won several awards. The R&D Centre's
activities in refining technology are targeted in the areas of fluid
catalytic cracking (FCC), hydroprocessing, catalysis, resid
upgradation, distillation simulation and modeling, lube processing,
crude evaluation, process optimization, material failure analysis and
remaining life assessment and technical services to operating units.

In FCC, apart from process optimization and catalyst evaluation the

accent is on the development of novel technologies aimed at value
addition to various refinery streams. IndianOil's R&D Centre is fully
equipped to provide technical support to commercial hydrocracker
units in the evaluation of feedstocks and catalysts, optimization of
operating parameters, evaluation of licensors' process technologies,
development of novel processes and simulation models.

Material failure analysis and remaining life assessment of refinery

equipment and installations is a highly specialized service being
provided by the R&D Centre to the refineries of IndianOil as well as
other companies.

With a vision of evolving into a leader as technology provider through

excellence in management of knowledge, technology and innovation,
IndianOil has launched IndianOil Technology Ltd. The new subsidiary
markets the intellectual properties developed by IndianOil R&D
Centre.
Organizational structure

Head Office- IOCL

Top Management

Regional Office

Middle
State Office
Management

Divisional Office/Area
Office
Junior
Management

All India Employee strength of IOCL: 35000

Orissa State Employee Strength: 250 (HEIRARCHY)

FINANCIAL
PERFORMANCE
2005 -06 2006 -07 2007- 08 2008- 09
HY
Turnover 183,172 220,779 247,479 160,263
(Rs./Core)

Profit After 4,915 7,499 6,963 (6,632)

Tax
(Rs./Cr)

Earning Per 42. 08 62. 90 58. 39 (55.62)

Share (Rs.)
Debt-Equity 0.90:1 0.78:1 0.86:1 1.75:1
Ratio
 PRODUCTS DETAILS
IndianOil 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, IndianOil is widely recognized as India’s
dominant energy brand and customers perceive IndianOil as a
reliable symbol for high quality products and services.

Benchmarking Quality, Quantity and Service to world-class standards

is a philosophy that IndianOil 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.

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

IndianOil 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, IndianOil is widely recognized as India’s
dominant energy brand and customers perceive IndianOil as a
reliable symbol for high quality products and services.
IndianOil 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.

AUTO GAS

The fuel is marketed by IndianOil under the brand name ‘AutoGas’

IndianOil has setup 173 Auto LPG Dispensing Stations (ALDS)

covering 82 cities across India.
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.

INDIANOIL AVIATION SERVICE

IndianOil is India's first ISO-9002 certified oil company conforming to
stringent global quality requirements of aviation fuel storage &
handling. IndianOil Aviation also caters to the fuel requirements of
the Indian Defence Services, besides refueling VVIP flights at all the
airports and remote heli-pads/heli-bases across the Indian
subcontinent.
IndianOil 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, IndianOil 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.
BITUMEN
The common binders used in bituminous road constructions are road
tars and Bitumen. Bitumen has gradually replaced road tar for road
construction purposes mainly because of its greater availability as
compared to road tars. It is principally obtained as a residual product
in petroleum refineries after higher tractions like gas, petrol,
kerosene and diesel, etc., are removed generally by distillation from
suitable crude oil. Indian standard institutions define Bitumen as a
black or dark brown non-crystalline soil or viscous material having
adhesive properties derived from petroleum crude either by natural
or by refinery processes.

IndianOil refineries at Panipat, Mathura, Koyali, Haldia and CPCL

produce grades Bitumen 80/100; Bitumen 60/70; Bitumen 30/40;
Bitumen CRMB and Bitumen Emulsion- 'Indmul'. It is available both in
packed and in bulk.

General uses of Bitumen:

For civil engineering works

• Constructions of roads, runways and platforms.
• Water proofing to prevent water seepage.
• Mastic floorings for factories and godowns.
• Canal lining to prevent eroding.
• Dump-proof courses for masonry.
• Tank foundation.
• Joint filling material for mason

Industries
• Electrical cables and junction boxes.
• Battery manufacturers as sealing compound.
 • Paint industries for manufacturing black paints and anti
corrosive paints.
• Ceramic industries.
• Printing inks.
• Water proof papers.
• Electrical capacitors.
• Bituminous felts.
• Bituminous grease for lubricating open gears.

HIGH SPEED DIESEL

Petroleum derived diesel (called as petrodiesel) is a mixture of
straight run product (150 °C and 350 °C) with varying amount of
selected cracked distillates and is composed of saturated
hydrocarbons (primarily paraffins including n , iso , and
cycloparaffins), and aromatic hydrocarbons (including napthalenes
and alkylbenzenes).
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.

BULK INDUSTRIAL FUEL

In the large volume consumer segment, IndianOil's provides
complete Fuel Management Solutions to customers who require fuels
in bulk and have dedicated facilities for storage and handling. These
customers benefit from IndianOil's efficient sourcing and supplies
matched to their usage patterns and inventory.
IndianOil's tankages are strategically located across the country and
are custom-designed to maintain low-cost supplies that can be
rapidly transported through a sophisticated supply-chain
management system.
IndianOil's marketing operations network of storage, distribution and
supply hubs is backed by on-time logistics and round-the-clock after-
sales service. Many institutional customers like the railways, steel
plants, thermal power plants, textile mills, power plants, state
transport undertakings, large corporates and fleet & logistics
companies tie-up for long-term contracts backed by IndianOil's
comprehensive fuel & lubricants consultancy-a formidable expertise
that IndianOil has built over nearly five decades of working with a
cross-section of customers from a wide-range of industrial sectors.
INDANE GAS
Indane is today one of the largest packed-LPG brands in the world.
IndianOil 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.
SERVO LUBES AND GREASES
IndianOil'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, SERVObacked by
IndianOil'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 IndianOil petrol

stations,SERVO range of lubricants is available through a network
ofSERVOXpress 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.
MARINE FUELS AND LUBRICANTS
IndianOil caters to all types of bunker fuels and lubricants required by
various types of vessels operating throughout the world in the
shipping industry. The Bunker supplies are made at all major ports of
India; Mumbai, Kandla, Vasco, Chennai, Tuticorin, Vizag, Cochin, New
Mangalore, Kolkata, Paradeep, JNPT, Port Blair and Haldia. Apart from
Indian Navy whose 100% bunker requirement is met by IndianOil, it
also supplies bunker fuels to all major shipping and dredging
companies of India. Spot requirement of different vessels calling at
Indian ports are undertaken through nominations received from local
shipping agents and international bunker trader/brokers. While
IndianOil supplies Furnace Oil (FO), Light Diesel Oil (LDO) and High
Flash High Speed Diesel (HFHSD) meeting the stringent BIS
specifications, it also offers the entire range of SERVO brand of
marine grade lubricants.

MS/ GASOLINE
In view of the auto fuel policy issued by Govt of India, more & more
stringent specifications (equivalent to Euro II, Euro III, Euro IV) are
being made applicable for the gasolines being marketed in India. This
has led to reduction of environmentally polluting factors in gasolines.
Gasoline is a complex mixture of relatively volatile hydrocarbons that
vary widely in chemical & physical properties and are derived from
fractional distillation of crude petroleum with a further treatment
mainly in terms of improvement of its octane rating. The hundreds of
individual hydrocarbons in gasoline range from c4 to c11.
For e.g. XTRA PREMIUM

PETRO CHEMICALS
India is amongst the fastest growing petrochemicals markets in the
world. Taking this into consideration and to enhance its downstream
integration, IndianOil is focusing on increasing its presence in the
domestic petrochemicals sector besides the overseas markets
through systematic expansion of customer base and innovative
supply logistics.

Petrochemicals have been identified as a prime driver of future

growth by IndianOil. The Corporation is envisaging an investment of
Rs 30,000 crore in the petrochemicals business in the next few years.
These projects will utilise product streams from the existing refineries
of IndianOil, thereby achieving better exploitation of the hydrocarbon
value chain.

SPECIAL PRODUCTS
Other than the regular petroleum products like light distillates,
middle distillates, heavier products like Furnace Oil, Bitumen, etc.,
IndianOil refineries also manufacture petroleum products for specific
applications. These specific applications could be feed stock for
chemical industry, raw material for specific industries and solid fuels.
The petroleum products, produced for specific applications are called,
'Petrochemicals and Specialties (P&S) Products'.

Every petroleum refinery is not designed to produce P&S products

but IndianOil's refineries have been planned to make a large portfolio
of P&S products.

SUPERIOR KEROSENE OIL

Kerosenes are 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
hydrofining to reduce sulphur content and to improve odour, colour &
burning 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 & atomisers.
The Indian Standard governing the properties of kerosene is IS
1459:1974 (2nd Rev).

CRUDE OIL
Crude oil - as petroleum directly out of the ground is called - is a
remarkably varied substance, both in its use and composition. Crude
oil is formed from the preserved remains of prehistoric zooplankton
and algae, which have been settled to the sea (or lake) bottom in
large quantities under anoxic conditions. It was formed over millions
of years from the remains of tiny aquatic plants and animals that
lived in ancient seas due to compression and heating of ancient
organic materials over geological time. The oldest oil-bearing rocks
date back to more than 600 million years, the youngest being as old
as about 1 million years.

Service
IOC Services
IndianOil 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, IndianOil 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. IndianOil'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, fertiliser, 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. IndianOil'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.

SWOT ANALYSIS
INTERNAL ENVIRONMENT

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

o Although its refineries are located the interior of the country,

and not near the major ports IOC has a very strong 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.

o 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.

o 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.

o 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 grassroot refinery with an investment of
$2 billion and establish retail business. IOC is also weighing the
possibility of entering Indonesia.
 o 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.

Sustained growth in turnover from 57.97 MMT to 62.61 MMT

This is ensured by
• Cross country retail network comprising of 17574 outlets
( 1196 outlets commissioned in 2008)
• Varied range of products
– Maintained market leadership in branded fuels in 2008
XTRAMILE Diesel : 58% Share
XTRAPREMIUM Petrol : 45.5% Share
– Over 800 varieties of lubricants
• Creating Unique Selling Points in all customer segments
• (consumer and retail) through XtraCare Service Stations

-Diversified range of core sector customers

• Railways
• Power House
• Fertiliser Plants
• Defence
• Aviation
• Coal
The growth is insulated from the cyclical demand fluctuations due to
diversified customer base.
Unique Area of Strength
o Wide Network of Cross Country Pipelines
o State of Art Research and Development Center
o Commercialization of in-house technology
o Commissioned India’s first Hydrogen-CNG dispensing
station
o Only company to have presence in high consumption two
of the Refineries North Area

Weakness
o Difference in quality and price at different franchise outlets all
over India in spite of high quality focus by the company.

Opportunity
The IOCL has much opportunity in the present market conditions.
This is because the petroleum products are become a need for
everyone and still contains a lot of scope for customization.
The various opportunities are listed below.
o Since the company has the maximum no. Of out lets and also
the maximum no. 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.

o The company can make the buying process more easy for the
customers, by implying many more schemes in the range of
XTRAPOWER AND XTRAREWARD.
 o The company can think over the issue to build its own pipelines,
so that it will be a independent player and it will also support its
aviation fuel supply.

o Company have a great scope in E&P. It is already involves in

E&P but only in a very limited scale.

o vibrant economy – industrial activity

o market that is growing
o emission control norms
o export market/market overseas
o untapped rural market

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.
o The foreign players with more advanced technology are the
biggest threat for the company.

o 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
operate in loss also. it is the biggest problem because the
maximum part of their crude is been imported.

o In future the market will welcome more private players, which

will eat up its market share.
customer preference/usage
o bio-fuel vehicles
o battery run bikes
crude and overheads is a major impact on the price .
o Black marketing and making threat in the people
 o All the Pipelines owned by IOCL, to be opened for other
competitors (as IOCL is PSU)

TITLED INTRODUCTION
MARKETING AND PROMOTION OF XTRAREWARDS LOYALTY
PROGRAM.
Introduction to the project:
In this competition world it becomes very necessary to retain loyal
customers. The commercial benefits of loyal customers are well
known by the brand managers. The cost of acquiring a new customer
is always more than retaining an old customer.
Loyal customers are also important because they provide the
consistency of volume critical for stocking and managing just in time
inventory to maintain the consistency of customer demand during
crisis which is required to run any retail business. All of these are
compelling reasons that retailers are on a quest for customer loyalty
and are increasingly looking at implementing loyalty programs or
loyalty cards of some form.
In this project, we have been assigned IOC retail outlets which are
participating in the XtraRrewards Loyalty program. Our task is to
promote and sell the XtraRewards Loyalty card to the customers and
at the same time garner customer opinions and suggestions about
the loyalty program. Tapping local alliances is another aspect of this
project.
At the same time, we have to check whether the retail outlets are
carrying out the implementation of the loyalty program in the right
way.
Objective of the Project:
 o To promote and sell “XtraRewards loyalty cards at IOC retail
outlets.
o To obtain customer opinions and suggestions at IOC retail
outlets and give recommendations to IOC to improve the
implementation of XtraRewards loyalty cards program.
o To find out prospective alliance partners for the XtraRewards
loyalty program.

Areas covered during project: bhubaneswar

LOYALTY PROGRAMS- AN INTRODUCTION:

Loyalty programs are structured marketing efforts that reward, and

therefore encourage, loyal buying behaviour — behaviour which is
potentially of benefit to the firm.
Earning customer loyalty goes beyond gaining customer satisfaction.
Loyal customers evangelize the brand by sharing their satisfactory
experience with their friends and colleagues. A great product or
service is the starting point for customer loyalty. Great marketers
architect loyalty programs from day one.
Loyalty programs are initiated by businesses with two main goals.
The primary goal for most loyalty programs is the acquisition of
information relating to their customers' spending habits, while the
secondary goal is to actively cultivate loyalty amongst customers to
ensure they continue patronizing the business. While some
companies do reverse these priorities, the above hierarchy holds true
for most.
Loyalty programs may offer benefits in a number of different ways.
Many loyalty programs offer a sustained discount (such as 10%) for a
period of time - perhaps a year, perhaps for the life of the business.
Others offer a discount once certain criteria have been met — for
example, a 20% discount on a single purchase once a customer has
spent Rs 2000 at the business. Still others offer points which may
then be redeemed for products which may or may not be directly
related to the business.
Loyalty cards are the most common form of loyalty programs found
throughout the world today. Some of the first loyalty programs were
instituted by airlines in the 1970s in the form of frequent flyer miles.
In these loyalty programs, one accrues points by flying on the airline
and then 'cash in' the points in exchange for tickets, upgrades, or
even third-party benefits. In the past decade, many non-airline
businesses have combined their own loyalty programs with those of
the airlines, offering frequent flyer miles in exchange for everything
from telephone usage to purchasing gasoline.

Loyalty programs at Indian Oil

IndianOil's loyalty programs are designed exclusively to benefit
customers who have been patronizing the brand for over four
decades.

XTRAREWARDS Loyalty Program

IndianOil XTRAREWARDS is India's first on-line rewards program that
seeks to inculcate the habit of redeeming points. The loyalty program
rewards customers 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
IndianOil Retail Outlets. Additional points can also be earned outside
the IndianOil network, covering prominent FMCG, Food, Automobile,
Travel, Entertainment, Apparel and Hospitality sectors.
Apart from redeeming the accumulated points instantly on fuel /
SERVO Lubes at participating Retail Outlets, the card holder can also
redeem the points to get some exciting gift items from a catalogue.
The redemption on gifts can be registered either from the
participating Retail Outlets or from the comfortable confines of one's
home through the 24x7 IVRS Help Line (022-2880 9030).
Point system:
When customer spends Rs. 75 then he earns 1 point. The balance
amount gets carry forward in next cash transaction. As a member,
the customer can earn Xtrareward points (XRPs) on purchase at
participating Indian oil retail outlets and enjoy specific benefits at
franchisees, affiliates and outlets of alliance partners with whom
Indian oil may have alliance from time to time. The XRPs earned can
instantly be redeemed for fuel and servo lubes at participating Indian
oil retail outlets. Customer can also redeem the points against items
given in the rewards catalogue.
Apart from rewarding cash customers, the program also rewards
customers who pay by credit or debit cards. However, the customer
has to produce his XTRAREWARD card to earn XRPs.

Point system in Xtrarewards:

Sr. Product Description XRP’s
No. Required
1. Rs 100 worth of fuel 334
2. Rs 100 worth of petrol + oil mix 334
3. Rs 100 worth of Xtra Premium 334
4. Rs 100 worth of Xtra Premium + oil mix 334
5. Rs 100 worth of Xtra mile 334
6. Rs 100 worth of diesel 334
7. Rs 100 worth of auto LPG 334
8. Rs 100 worth of CNG 334
9. 500 ml servo 2T supreme 234
10. 40 ml servo 2T supreme pouch 20
11. 60 ml servo 2T supreme pouch 29
12. 1 litre servo super multi grade 20w-40 460
13. 500 ml servo kool plus 400

For enhanced security, the XtraRewards card transactions are

authorized through unique Personal Identification Number (PIN).
Moreover, the card can help track each vehicle's movement across
remote corners of the country leading to an improvement in vehicle
utilization and route compliance.
 ACHIEVEMENTS
XTRAREWARDS CARDS

Weeks Weekly Weekly % of

targets achievements achieveme
nts
1 25x60=150 27x60=1620 108%
0
2 25x60=150 30x60=2100 120%
0
3 25x60=150 30x60=1800 120%
0
4 125x60=75 125x60=7500 100%
00
5 125x60=75 131x60=7860 105%
 00
6 125x60=75 127x60=7620 102%
00
7 125x60=75 130x60=7800 104%
00
8 125x60=75 146x60=8760 117%
00
9 125x60=75 140x60=8400 112%
00
10 125x60=75 109x60=6540 88%
00
11 125x60=75 78x60=4680 63%
00
12 125x60=75 83x60=4980 67%
00
ALLIANCE PARTNERS
Month monthly monthly % of
target achievement achieveme
nt
1 Two Nil Nil
2 Two 1 50%
3 Two 3 150%

DSA RECRUITMENT
Weeks Weekly Weekly % of
targets achievements achieveme
nts
6 2 1 50%
7 2 2 100%
8 2 2 100%
9 2 2 100%
10 2 3 150%
11 2 2 100%
12 2 2 100%
 FINDINGS :
o XtraRewards scheme is not available at all the retail outlets of
Indian oil. The scheme is available in only retail outlets in
Bhubaneswar.

o Most of the people are not aware regarding the XtraRewards

scheme.

o Pump-attendants are not interested in selling the cards.

o Cards which were sold by dealers earlier were not registered

with IOCL as a result of which cards started getting blocked.

o Booklets are in English. This could not be understood by all the

people.

o There are no pamphlets available at pumps, which could give a

brief idea about the loyalty program.

o There is no dedicated person for collecting the forms. So, there

is a large backlog of forms.

o The card swiping machines are not properly maintained at some

places leading to many customer complaints.
 CONCLUSION
XtraRewards is a step of IOC towards building loyalty among the
existing customers. Loyalty program works only when the customer is
emotionally attached to the brand.

Positioning of the loyalty program is very critical so that these

benefits do not appear to be a just discount under the garb of loyalty
this greatly affects the customer retailer relationship and greatly
reducing the program to a pure commercial transaction where the
customer constantly looks for deals.

We need to enroll the right customers. We can recognize the highest

value customers to recognize and reward their value to our
organization, we can cultivate high potential customers who currently
split their purchases between us and our competitors or reach out to
those most at risk of churning. Knowing which customer groups are
most important to us allows crafting recognition and rewarding
strategy that piques their interest.
 RECOMMENDATIONS
Ideas to increase & retain customer base

o Need more benefits in fuel rather than alliance partners in order

to attract other brand’s loyal customers.
o Target new vehicle owner by tie up with the car companies and
give XTRAREWARDS card with every new vehicle.
o Try to know actual reasons for not using the card for longer
period of time.

At retail outlets

o Digital display on retail outlets.

(i) To communicate with the customers about IOC program &
brands and
(ii) for advertisement of alliance partners & earning revenue out
of it.
o Motivate pump attendants by giving price to “attendant of the
month” which will be the highest card seller of that month.
o XTRAREWARDS Banners should be put at proper location in the
pump
o XTRAREWARDS program should be started at all other locations
as soon as possible.

For Welcome kit

o Application Form as well as information booklet should be in

Hindi and oriya.
o Sufficient Pamphlets should be distributed to all pumps &
renewal of pamphlets should be done as & when new offers
from alliance partners come.
PROMOTIONAL TOOLS USED IN SELLING THE XTRAREWARDS CARD