INDIAN OIL CORPORATION LIMITED

SUMMER TRAINING PROJECT REPORT ON
“THE

COMPARITIVE ANALYSIS OF SALES OF LUBRICANTS OF IOCL FOR THE YEARS 2008 AND 2009.” INDIAN OIL CORPORATION LIMITED. FOR THE PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE AWARD OF POST GRADUATE DIPLOMA IN BUSINESS MANAGEMENT
UNDER THE GUIDANCE OF: Mr./Dr. (Name of the Faculty Member) RAJKARAN SUBMITTED BY (NAME OF STUDENT) SEEMI HALIM PGDM 2009-11 UNDER THE SUPERVISION OF: Mr. RAJKARAN

GALGATIAS BUSINESS SCHOOL, APPROVED BY AICTE, MİNİSTRY OF HRD, GOVT. OF INDİA) 1, KNOWLEDGE PARK, phase II, GREATER NOİDA. (U.P.)

CERTIFICATE
This is to certify that the project work done on “COMPARITIVE STUDY OF SALES REPORT FOR THE YEAR 2008 AND 2009” is a bonafide work carried out by Mr./Ms. SEEMI HALIM under my supervision and guidance. The project report is submitted towards the partial fulfillment of 2 – year, full time Post Graduate Diploma in Management. This work has not been submitted anywhere else for any other degree/diploma. The original work was carried during 15 APRIL to 15 JUNE in INDIAN OIL CORPORATION LIMITED Name & Sign of Faculty Date:

ACKNOWLEDGEMENT
Success is any endeavor for co-operations & guidance from all, especially dear ones, seniors, colleagues and environment. This was amply brought to me while undergoing this project. I grateful acknowledge the inspiration; encouragement, guidance help and valuable suggestion received from .my faculty members. I would like to give my heartiest thanks to SHWETA GUPTA , UP State Office II, NOIDA, Indian Oil Corporation Ltd. For providing me an opportunity to undertake this project with IOCL. I owe a deep sense of gratitude to her, for her valuable help and cooperation from time to time. She was always there to help me through his valuable guidance, s uggestion and constant encouragement throughout my summer training..

DECLARATION

I,Seemi Halim, Roll no 09PGDM085, student of PGDM of Galgotias Business School,,Greater Noida , hereby declare that the project report on “COMPARITIVE ANALYSIS OF SALES OF LUBRICANTS FOR THE YEAR 2008 AND 2009 at INDIAN OIL CORPORATION LIMITED.” is an original and authenticated work done by me. I further declare that it has not been submitted else where by any other person in any of the institutes for the award of any degree or diploma.

Name of the student: SEEMI HALIM Date:20th JUNE 2010

HYPOTHESIS 2.LITERATURE REVIEW .INTRODUCTION • Indian oil corporation Ltd. OBJECTIVE OF THE STUDY 1c.CONTENTS: 1a.Introduction • IOCL Group • Vision of IOCL • Mission of IOCL • Values followed at IOCL • Objectives of IOCL • Major divisions at IOCL • Business chart of IOCL • Products offered by IOCL • Financial highlights • Lubes industry • Indian oil lubricants 1b.

a) b) II.• Marketing strategies 3. charts. as required. VIII. (Statistical analysis must be supported by relevant tables. Exploratory Research (flexible) – involving survey of the concerning literature. Descriptive – describing characteristics of a particular group or individuals. IV. VI. Convenience Judgmental Sampling) Sources of data (Primary or/and Secondary data). VII. Research Design. Suggestion/ Recommendation Limitation . Implication of the study. Cluster Sampling. Sampling. experience survey. IX. Sampling Systematic III. Sampling. Tools and techniques of analysis of Data. V.) Findings and Conclusions (Outcome/ Result). Design.RESEARCH METHODOLOGY I. graphs etc. etc. Methods of data collection. (Simple Random Sampling. Data Collection tools/instruments. Stratified Sampling.

271. It was ranked at 116th position in 2008. Indian Oil Corporation Ltd. 1958).073 crore and profit of Rs. (Estd. It is also the 20th largest petroleum company in the world. . COMPANY OVERVIEW Indian Oil Corporation Ltd. 1959) and Indian Refineries Ltd. (Estd.55 crore for fiscal 2009-10.INDIAN OIL CORPORATION LIMITED IOC (Indian Oil Corporation) was formed in 1964 as the result of merger of Indian Oil Company Ltd. 10. is currently India's largest company by sales with a turnover of Rs.220. is the highest ranked Indian company in the prestigious Fortune ‘Global 500’.

74mn tonnes of Natural gas in the domestic market and exported 3. CHAIRMAN OF IOCL .33mn tonnes in the yr 2007-08. Indian Oil group has sold 59.Indian Oil and its subsidiaries today accounts for 49% petroleum products market share in India.29mn tonnes of Petroleum including 1.

Mr.I. He is the first Chairman of India Chapter of the International DME Association (IDA). Brij Mohan Bansal. Mr.Tech in Chemical Engineering and D..T in Process Plant Engineering from the prestigious Indian Institute of Technology. Bansal’s expertise in the oil & gas sector has been sought at many international forums. downstream integration into . India’s largest commercial enterprise with a turnover of over US$ 62 billion for the year 2008-2009. Mr. He is also Chairman Emeritus of the Bio-Diesel Association of India. he is pursuing a string of strategic initiatives across the hydrocarbon value chain for upstream integration into oil exploration & production. USA. Mr.I. Bansal is also Chairman of Green Gas Limited. a JV of IndianOil and Petroliam Nasional Berhad (Petronas). Bansal is guiding IndianOil’s transformation into the ‘Energy of India’. and IndianOil Petronas Private Ltd. Besides consolidation in the core areas of refining and marketing. Bansal is a B. that works to promote Di-Methyl Ether across the world. for city gas business. With over 35 years of extensive work experience in the oil & gas sector in areas spanning business development. Mr.Mr. R&D. is Chairman and Director (Planning & Business Development) of Indian Oil Corporation Ltd. Delhi. Malaysia. Bansal has been a member of the IndianOil Board since the year 2005.. for LPG import & marketing business in India. a JV of IndianOil and GAIL (India) Ltd. refining and technical services.

. VISION OF IOCL A major diversified. playing a national role in oil security & public distribution.petrochemicals. integrated energy company. besides globalisation of marketing operations. and diversification into natural gas business. with national leadership and a strong environment conscience. transnational.

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MISSION OF IOCL IOCL has the following 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 provide technology and services through sustained Research and Development. • To maximize creation of wealth. • To attain leadership in developing. • To foster a culture of participation and innovation for employee growth and contribution. value and satisfaction for the stakeholders.the-art technology for competitive advantage. VALUES OF IOCL Values exist in all organizations and are an integral part of any it. adopting and assimilating state-of. • To cultivate high standards of business ethics and Total Quality Management for a strong corporate identity and brand equity. • To help enrich the quality of life of the community and preserve ecological balance and heritage through a strong environment conscience. Indian Oil nurtures a set of core values: • CARE • INNOVATION • PASSION .

To enhance the country's self-sufficiency in crude oil refining and build expertise in laying of crude oil and petroleum product pipelines. • • • • • • • • • . To ensure maintenance of continuous and smooth supplies of petroleum products by way of crude oil refining. transportation and marketing activities and to provide appropriate assistance to consumers to conserve and use petroleum products efficiently. These objectives are: • To serve the national interests in oil and related sectors in accordance and consistent with Government policies. To further enhance marketing infrastructure and reseller network for providing assured service to customers throughout the country. To minimise fuel consumption and hydrocarbon loss in refineries and stock loss in marketing operations to effect energy conservation. pipeline transportation and alternative fuels with a view to minimizing/eliminating imports and to have next generation products. To create a strong research & development base in refinery processes. To earn a reasonable rate of return on investment. both national and global. product formulations. To optimise utilisation of refining capacity and maximize distillate yield and gross refining margin. arising out of the Government of India’s policy of liberalisation and reforms. To maximise utilisation of the existing facilities for improving efficiency and increasing productivity.• TRUST OBJECTIVES OF INDIAN OIL IOCL has defined its objectives for succeeding in its mission. To avail of all viable opportunities.

natural gas and downstream opportunities overseas. To have fair dealings with recognised representatives of employees in pursuance of healthy industrial relations practices and sound personnel policies.To provide prompt.• To achieve higher growth through mergers. To develop operational synergies with subsidiaries and joint ventures and continuously engage across the hydrocarbon value chain for the benefit of society at large. acquisitions. • Towards suppliers:. impartiality and courtesy and help promote ancillary industries.To develop their capabilities and facilitate their advancement through appropriate training and career planning. integration and diversification by harnessing new business opportunities in oil exploration & production. courteous and efficient service and quality products at competitive prices. • Towards employees:. petrochemicals. To inculcate strong ‘core values’ among the employees and continuously update skill sets for full exploitation of the new business opportunities. • • • OBLIGATIONS • Towards customers and dealers:.To ensure prompt dealings with integrity. . To develop operational synergies with subsidiaries and joint ventures and continuously engage across the hydrocarbon value chain for the benefit of society at large.

To maintain the highest standards in respect of safety. FINANCIAL OBJECTIVES • To ensure adequate return on the capital employed and maintain a reasonable annual dividend on equity capital. • Towards Defence Services:.To maintain adequate supplies to Defence and other para-military services during normal as well as emergency situations. • To reduce the cost of production of petroleum products by means of systematic cost control measures and thereby sustain market leadership through cost competitive. without budgetary support. environment protection and occupational health at all production units. • To develop long-term corporate plans to provide for adequate growth of the Corporation’s business. • To ensure maximum economy in expenditure. • To manage and operate all facilities in an efficient manner so as to generate adequate internal resources to meet revenue cost and requirements for project investment. .• Towards community:- To develop techno-economically viable and environment-friendly products.

BUSINESS CHART OF IOCL IOCL has its presence in all spheres of downstream operations. .

. The Corporation has commissioned several grassroot refineries and modern process units. IndianOil controls 10 of India’s 20 refineries. Procedures for commissioning and start-up of individual units and the refinery have been well laid-out and enshrined in various customised operating manuals. 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. operation. etc. Its team is also well-equipped to prepare operation manuals with clear instructions for plant start-up. IndianOil also offers the specialised services of its experts for commissioning/start-up assistance depending on the client’s need. the Digboi Refinery commissioned in 1901. emergency handling. At present. shutdown. 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.REFINING Born from the vision of achieving selfreliance in oil refining and marketing for the nation. which are continually updated.

Guwahati-Siliguri Pipeline in the year 1964. All operating pipeline units have been . Commissioning of new projects worth about Rs. the petroleum pipelines form a crucial part enabling sustained availability of petroleum products in all parts of the country for economic growth.300 crore including LPG and RLNG pipelines will reach the capacity to 75 million metric tonnes per annum with a network of over 10.PIPELINE In India’s infrastructure. the pioneer in cross-country petroleum product pipeline in the Indian sub-continent constructed and commissioned its first petroleum product pipeline. 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. IndianOil’s sustained pursuit and implementation of proven safety and environmental management systems have brought rich results.000 km. Since then IndianOil has mastered the art and technology of pipeline engineering.000 km with a capacity of about 62 million metric tonnes per year. a wide network of pipelines becomes the paramount IndianOil. 2. India being a vast country. Over the last four decades the pipeline network of IndianOil has grown to 10.

LPG bottling plants. pipelines. gas plants. MARKETING IndianOil provides a wide range of marketing services and consultancy in fuel handling. requirement of transporting petroleum products to interiors from refineries and crude oil to the land locked refineries. amongst others. steel. have set up depots.accredited with ISO 9000 and ISO 14001 certificates. storage and fuel/lube technical services. 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. distribution. IndianOil is fully equipped to handle small to large-scale infrastructural projects in the petroleum downstream sector anywhere in the country. IndianOil's supply and distribution network is strategically located across the country linked through a . IndianOil's fuel management system to bulk customers offer customized solutions that deliver least cost supplies keeping in mind usage patterns and inventory levels. terminals. fertiliser. filling plants. etc. Our project teams have independently or jointly as a consortium. With a formidable bank of technical and engineering talent. Cutting edge systems and processes are designed around one simple belief-to provide valuable customers with an unbeatable edge in their business. aviation fuel stations. textile mills.

used in the manufacture of detergents) at Gujarat Refinery achieved over 100% capacity utilisation in the year 2007-2008.customized supply chain system backed by front offices located in conceivably every single town of consequence. . The LAB unit (Linear Alkyl Benzene. and since has also June been exported. The product has been successfully marketed within India. attaining a significant market production share. PETROCHEMICALS IndianOil is continuously striving for growth through integration of its core business with opportunities available in the petrochemicals sector. An integrated PX/PTA plant at Panipat Refinery has commenced commercial IndianOil is close to commissioning a world scale Naphtha Crackerproject along with downstream polymer units at Panipat. 2006. In addition. activities for setting up integrated complex of refinery and petrochemicals at Paradip in Orissa have also progressed significantly.

Kuwait Energy and Medco Energi of Indonesia also succeeded in acquiring participating interest in two exploration blocks in Yemen. At home. IndianOil has been pursuing exploration & production activities both within and outside the country in collaboration with consortium partners. one each in India and Iran. Commercial appraisal of these blocks is underway. the IndianOilOIL combine acquired participating interest in a block in Nigeria. IndianOil now has an upstream portfolio consisting of . In addition. IndianOil and its consortium partners were awarded two exploration blocks in Mumbai offshore in Round-VI of bidding under the New Exploration Licencing Policy (NELP). in consortium with OIL.E & P To enhance upstream integration. Recently. IndianOil also farmed into an exploration block in Gabon along with Oil India Ltd. IndianOil was associated with two successful discoveries in oil exploration blocks. The Corporation. (OIL) as the operator. awarded through international bidding. With this.

TRAINING The IndianOil Institute of Petroleum Management. IndianOil has been serving as a source of technical support and expertise to petroleum . in addition to two farm-in blocks in northeast India and seven blocks overseas. The years ahead. re-skilling and mult-skilling of employees in its pursuit of corporate excellence. and scale up its operations to capitalise on all opportunities and realise its corporate vision. situated on the outskirts of New Delhi. hold great opportunities and challenges. Oil & gas will continue to be the principal energy source in the growing economy. therefore.participatory interest in eight blocks under NELP and two blocks under CBM. Guided by its experience and inherent spirit.a centre of excellence for nurturing future leadership. IndianOil shall overcome all the challenges as it has been consistently doing in the past. IndianOil operates 18 training centres across the country for up-skilling. conducts advanced management education programmes in collaboration with premier business schools and topline professionals.

Public Utilities and Transportation. engine evaluation. Some of these countries. hydroprocessing. . Algeria. refining process. additives. Abu Dhabi. resid upgradation. Nigeria. 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. biotechnology. include Sri Lanka. Bhutan. The Centre has also developed and introduced many new lubricant products to the Indian market like multigrade railroad oils. established in 1972. Malaysia and Zambia. process optimization. Tanzania. pipeline transportations. Nepal. catalysis.companies of carious countries across the globe. bio-fuels and fuel-efficient appliances. Focussed research in the areas of lubricants and grease formulations. Kuwait. and applied metallurgy has won several awards. tribiological and emission studies. RESEARCH AND DEVELOPMENT IndianOil's worldclass R&D Centre. Maldives. Bahrain Iraq. distillation simulation and modeling. fuels. refining processes. The R&D Centre's activities in refining technology are targeted in the areas of fluid catalytic cracking (FCC). lube processing. has state-of –the art facilities and has delivered pioneering results in lubricants technology. which have partnered for excellence. crude evaluation. Railways. Over the past three decades. pipeline transportation. Ethiopia.

Low filling times and the 35-40% saving is a reason enough for a consumer to convert his vehicle to AutoGas. AUTO GAS AutoGas (LPG) is a clean. IOCL GROUP IOCL Group consists of Indian Oil Corporation Ltd. It is obtained from natural gas through fractionation and from crude oil through refining." "IndianOil has setup 274 Auto LPG Dispensing Stations (ALDS) covering 150 cities AutoGas impacts greenhouse emissions less than any other fossil fuel when measured through the total fuel cycle. IndianOil has launched IndianOil Technology Ltd. The new subsidiary markets the intellectual properties developed by IndianOil R&D Centre. high octane. The higher energy content in this fuel results in a 10% reduction of CO2 emission as compared to MS. The fuel is marketed across by IndianOil under the brand name ‘AutoGas’ India. The saving on account of conversion to AutoGas in comparison to petrol is about 3540%. abundant and eco-friendly fuel. Conversion of petrol to AutoGas helps substantially reduce air pollution caused by vehicular emissions. and the following subsidiaries: . technology and innovation. It is a mixture of petroleum gases like propane and butane. With a vision of evolving into a leader as technology provider through excellence in management of knowledge.material failure analysis and remaining life assessment and technical services to operating units.

Major Products of IOCL are • Auto LPG • Aviation Turbine Fuel • Bitumen • High Speed Diesel • Industrial Fuels • Liquefied Petroleum Gas • Lubricants & Greases • Marine Fuels • MS/Gasoline • Petrochemicals . • IOCL Middle East FZE • Indian Oil Technologies Ltd. (CPCL) Bongaigaon Refinery & Petrochemicals Ltd (BRPL PRODUCTS OFFERED BY IOCL Indian Oil is not only the largest commercial enterprise in the country it is the flagship corporate of the Indian Nation. • Chennai Petroleum Corporation Ltd.• Lanka IOC Ltd • Indian Oil (Mauritius) Ltd. 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. Besides having a dominant market share.

the company’s Earnings Per Share (EPS) stands at Rs 42.15 for 2008-09. Wipro Technologies. Indian Oil Oil Corporation has There two are major two domestic private competitors. .221 crore.71. Petroleum and Essar Oil. It stands tall amongst giants like Tata Consultancy Services. Bharat competitors. London-head quartered Brand Finance. like Indian Corporation. Tata Motors. The total net under-recovery on account of price under–realisation on PDS Kerosene and domestic LPG in the financial year 2009-10.10 as compared to Rs. Both are state-controlled. Much of this comes from the sheer scale and strength IndianOil commands in its sector. IndianOil had also a place of pride in this coveted list of year 2006-07. 2. and state petroleum companies BPCL&HPCL. The Profit After Tax was Rs 10.Reliance Petroleum and Hindustan Petroleum. FINANCIAL HIGHLIGHTS IndianOil’s gross turnover (inclusive of excise duty) for the year 2009-10 touched Rs. assessed by global brand valuation firm.074 crore.• Crude oil • Superior Kerosene Oil COMPETITORS IndianOil has been ranked at 2nd position amongst the top 50 most valuable brands of India. For the year 2009-10. 12.

the company has been granted discount of Rs 7.159 crore.is Rs.47 per barrel as compared to USD 3.Nil crore in 2008-09. IndianOil has accounted for cash compensation of Rs 15. 3. In addition. 7. The Gross Refining Margin for April-March 2010 is USD 4.548 crore received from upstream companies.100 crore has been received during the year. as per the under recovery sharing mechanism. This is in comparison with a net under-realisation of Rs. out of which Rs.69 per barrel during the previous year. Annual Turnover of IOCL for the last 3 years Annual Turnover 300000 250000 in Crores 200000 150000 100000 50000 0 2005-06 2006-07 2007-08 183172 247479 220779 . The Board of Directors has recommended a dividend of Rs 13 per share.172 crore. For the year 2009-10.

LUBRICANT .

in the form of motor oil. esters. is protecting the internal combustion engines in motor vehicles and powered equipment. Lubricants such as 2-cycle oil are also added to some fuels. resistance to corrosion andoxidation. there are increased refinement and performance in engine and other parts. Typically lubricants contain 90% base oil (most often petroleum fractions.     Keep moving parts apart Reduce friction Transfer heat Carry away contaminants & debris . aging or contamination. One of the single largest applications for lubricants. improving efficiency and reducing wear. Development of new technology in the auto sector. improved viscosity index. what is the main function of lubricants and why we use lubricants. etc. called mineral oils) and less than 10% additives. Additives deliver reduced friction and wear. These are the question.biodiesel is a popular diesel fuel additive providing additional lubricity Lubricants perform the following key functions.silicones. fluorocarbons and many others are sometimes used as base oils. It may also have the function of dissolving or transporting foreign particles and of distributing heat. advanced lubricants have been developed by IOC to fulfil to these demands A lubricant (sometimes referred to as "lube") is a substance (often a liquid) introduced between two moving surfaces to reduce the friction between them. which has to be taken in account when switching to a low-sulfur diesel. which never comes in our mind. Vegetable oils or synthetic liquids such as hydrogenated polyolefins.Very few vehicle owners know what are lubricants. Sulfur impurities in fuels also provide some lubrication properties. increased viscosity.

5.some of them albeit new to India.     Transmit power Protect against wear Prevent corrosion Seal for gasses Stop the risk of smoke and fire of objects LUBE INDUSTRY These are exciting times for the lube industry in India. With the distribution & canalisation of base oil import being controlled by the Government of India. Tidewater & others. Gulf. Most of the .BPC & IBP and a handful of private companies like Castrol. Prior to 1992 the lube industry in India was controlled by the 4 major Public Sector Oil companies namely Indian Oil. the Indian lube industry with annual demand of 1 million tonnes is just behind Japan and China in Asia having a demand growth rate of 4% compared to the World growth rate ranging between zero to 2%. That is the lube industry in India today. the PSU Oil Companies controlled 90% of the market share. of India followed by reduction of import duty on lube base oils from 85% to 30% and gradual scrapping of administered pricing observed the announcement of almost a new lube venture every month during 1994. Compared to the average World consumption of 35 Million tonnes per annum & Asia-Pacific region consumption of 7. Worldwide established brands.5 million tones. Elf. HPC. Pennzoil are fighting it out with established Indian brands like SERVO & others to establish their foothold in the 6th largest lubricant market in the World. like Shell. Caltex. The decanalisation of the lube base oil imports in 1993 by the Govt. Each one of the vast contingent of 22 Multinationals and a total of 80 big & small players are vying for a pie of Rs.500 Crore market. Mobil.

MARKETING CHANNEL The marketing channels for automotive lubricants in India consist of the following.This had its initial impact and illusions in the market and the market became more volatile.new entrants formed associations with Indian companies both in the Private & Public sectors. During these phases marketing channels of distribution had drifted from petrol stations to bazaar trade. • • • • • • • • Petrol Stations Wholesale Distributors Lube Oil Shops Auto Spare Shops Authorised Service Stations Garages Rural & Agricultural dealers Super Markets .55 Crores. each one claiming to have some international collaboration and a `foreign' brand name. This has been followed by sudden entry of lot many players. The Indian Oil controlled 54% of the lube market out of total PSU's market share of more than 90% during 91-92. The Government policy of deregulation followed by entry of multinationals through JVCs had its effect on the market dominance of PSUs. All these new entrants are targeting for a very small share of the market considering that even 1% market share means a sale of Rs.

. MNC’s have 5 percent market share and the remaining share is held by the unorganized sector. In India. MARKET SIZE Total production of automotive lubricants in India is approximately 8 to 10 percent of global lube production. the Indian market has been growing at approximately 7 percent per annum for the past 2 years. People buy from super markets & fill it themselves. this job is still left to the mechanics & service stations. Automotive lubricants are .Till recently. the Indian consumers linked filling of lubricants to that of petrol & diesel in petrol stations. the resultant drift towards the bazaar trade i. With the advent of deregulated market scenario & fierce competition. Dumping of products in the bazaar. The public sector contributes to over 60 percent of the revenues for this market. efforts are being made to position lubricant as a high involvement consumer goods. Market became heavily crowded & the industry got transformed into FMCG. Hence.e. outside the petrol stations. Unlike other countries where lubricant demand has witnessed stagnation.During these years this shift in trade had the following effects: • • • • • Decline in Market Share of PSU oil companies. because of high degree of customer sensitivity & awareness. The sales of automotive lubricants through bazaar trade increased from a mere 10% prior to 1993 to a handsome present level of 40% compared to Worldwide Trend of more than 70%. War of trade discounts resulting in rice war & lesser margins for de Entry of spurious lubricants. D0-it-Yourself (DIY) concept has evolved for filling of engine oil.In the developed World.

Engine oil constitutes around 83 percent of total sales volumes. Gear oils. Kinetic Engineering. . the Japanese vehicle. Diesel lubes comprise 70 percent of the market and petrol based lubricants cover the rest. transmission fluids. which have to cover greater distances. Bajaj Auto.5 2. MARKET SHARE IN INDIA 1. Even initial fill & warranty fill agreements were also signed with TELCO & Hindustan Motors.SKODA etc. their market share is higher. In fact. As diesel lubes are used by commercial vehicles.TELCO. hydraulic brake fluids.5 3 7 2 2 1 1 42 22 16 IOCL HPCL CASTROL BPCL GULF OIL TIDE WATER OIL ELF SHELL IBP PENNZOIL OTHERS Tie Up with OEMs Among the PSU Oil Companies Indian Oil is one company who has all along given utmost importance on tie ups with Original Equipment Manufactures (OEMs) after signing agreements with major OEMs like Maruti Udyog Ltd. and engine coolants contribute to the balance.further divided into diesel lubes and petrol lubes.

Import of base oil. Private participants will also gain a presence in the Indian oil and gas sector and hence there will be competition between participants that will ensure the growth of the sector.COMPETITIVE ANALYSIS The first seeds of competition were sown in the early 1990’s when following the liberalization of the Indian economy. With the dismantling of Administered Price Mechanism (APM) the burden of subsidies is now being passed on to the government. Pricing of base oil was deregulated in a phased manner and currently it is market determined. the government decided to open the Indian market to foreign competition. Recent deregulations in the lubricant market have promised many new opportunities for the private lube manufacturers. the key raw material. which made it more difficult for the Indian lube manufacturers to survive. These developments naturally encouraged the entry of foreign players on Indian shores who were already facing a slowdown in demand in their local markets. In the next c . was decanalized with IOC losing its status as the sole canalizing agent. All quantitative restrictions were also removed. Basic custom duty on base oil stock was also reduced from a peak of 85 percent to a level of 25 percent. The coming in of foreign participants created an excess supply situation in the Indian automotive lubes market.

in the future volume growth will be affected because of use of better quality. This will increase the replacement cycle for lubes. In the shorter term. growth in the automotive lubricants industry will largely depend on the overall performance of the economy. success of a product would largely depend how well it is branded and distributed INDIAN LUBRICANT MARKET INDIAN OIL CORPORATION . the scenario has improved with higher sales of commercial vehicles and two-wheelers. Given the rising competition. In the past one and a half years. long drain lubes. which has the potential to change the face of the lubricant industry. However.OUTLOOK In the future. one will witness intense competition in a slow growing market marked by a consolidation activity.

and enjoys a market share of 42 per cent in the industry. Incidentally. which has a refining capacity for lube oil base. it is one of the three companies.55 t. Opel Astra. Its Servo brand is the most recognized brand in the country. In order to increase its presence IOC has aimed at improving the image of the retail outlets. The company operates six refineries. Mitsubishi Lancer. Despite making a loss with superior industry network and superior backing of infrastructure the company sees no problem in maintaining its status as the leader in the lubricant industry. an input in the manufacture of lubricants. with a total capacity of 24. Fiat Uno or the Maruti family. TIE UPS: Hyundai Santro. Daewoo Cielo. .Market Share: 42% Indian Oil Corporation is the largest manufacturer of lubricants in India and is also the only Indian company to figure in Fortune’s Global 500 list.

The company has achieved an overall market share of 22 per cent in the lubricants market. JCB.CASTROL INDIA Market Share: 22% Castrol India is the largest player in the lubricants segment. The company is also modernizing its other plants. The company has set up a new unit in Silvassa. HINDUSTAN PETROLEUM CORPORATION LIMITED . For the marketing of its lubricants it has tied up with the petrol pump chain of Reliance and Essar. Escorts. The company has seven plants in the country with a capacity of 3 lakh KL and on the financial front too the company’s performance has been impressive. thereby gaining access to a new channel of distribution. TIE UPS: Company has partnership with leaders like mahindra and Mahindra. Tatas. which manufactures 150 different types of products.

The brand names are Milcy and Lal Ghoda. BHARAT PETROLEUM CORPORATION LIMITED .Market share:16 % HPCL is the largest player in the lubricants segment. Sri Lanka. The company has achieved an overall market share of 22 per cent in the lubricants market The HP engine oil product rang covers 300 brands of lubricants. grease and specialties catering to the automotive as well as the industrial sector. Bangladesh. HPCL market now extends to countries like Nepal. and Malaysia.

Gulf Oil India created a significant presence in a short time. with operations ranging from oil exploration to retailing. On the financial front.Market Share: 7% BPCL another strong competitors in the lube industry. In collaboration with the Hinduja group. the company’s performance has been satisfactory. BPCL sell 125 thousand tones and aims to increase its sale volume to 250 TMT within the next two years. It believes that product and packaging development to be . Gulf Oil has grown to be one of the largest corporations in the world. The company offers its lubricants under the brand name “MAK” GULF OIL Market share: 3% Gulf Oil International was the first multinational to enter the lubricants market in India. The company has setup its own 75000 tonne blending plant has Silvassa which blends 200 quality lubricants with international formulations. At present.

and for this it has entered into an exclusive contract with the private blender. Our well-equipped R&D center at Faridabad.1 lubricants brand not only in terms of sales but also in terms of quality and range. is also India’s first in the petroleum . The Gulf Oil plans to tap the market in the east and north-east. SERVO is India’s No. SERVO LUBRICANTS AND GREASES SERVO has completed 30 years serving the lubrication needs of the Indian industry.its area of strength. perhaps one of Asia’s most advanced. Servo has a range of over 470 grades of lubricants-oil and greases.

Sri Lanka. battle tanks of the Indian Army and the latest guided missile destroyers of the Indian Navy.600 outlets/stockists and thousands of other multi-brand Lube Bazaar shops.industry to have received the ISO ())! Accreditation. SERVO also has a formidable marketing reach. Calcutta. Malaysia. SERVO offers a staggering range of lubricants for the automobile. industrial and marine industries. Chennai and grease plant at Vashi which produce SERVO. industrial. . with a 42% share in a market estimated at Rs. Another testimony to Servo’s reliability and quality is its extensive use by heavy-duty trucks. 55 billion comprising approximately one million metric tones of lubricants.It is India’s largest selling lubricants brand and enjoys approvals from major Original Equipment Manufacturers (OEM’s) including new generation cars. The company’s aggressive marketing and advertising thrust together with state-of the-art packaging has enabled SERVO to emerge as a truly global brand from India. SERVO has a notable presence in the highly competitive markets of the UAE. These include six lubricant blending plants and a grease manufacturing plant – all of which are ISO accredited. Bangladesh and Mauritius. It is the lubricant of choice for most of the latest international automobiles that have been launched on the Indian roads. SERVO is the unquestioned leader. This together with the fact that our lube blending plants at Mumbai. are also ISO 9002 certified ensures that SERVO lubricants meet international standards Servo has an excellent spread to meet the requirement of various automotive. Servo’s fundamental strength is its extensive spread of production units and distribution bases across the country. thanks to its exclusive network of nearly 16. In India. Nepal. marine. aviation and railroad applications .

upholstery cleaning. The earliest knowledge of lubrication is evident from grease lubricated chariot wheels excavated from the ruins. besides IndianOil petrol stations. besides replacement of minor parts for two and Lubrication is the art of reducing friction between rubbing or rolling surfaces. Water is a natural lubricant but has extremely limited . vehicles. the study of stream or flow.Indian Oil's SERVO is the brand leader among lubricants and greases in India and has been conferred the “Consumer Super brand” status by the Super brands Council of India. bazaar outlets and thousands of auto spare parts shops across the country. etc.air-conditioner service. SERVO is backed by IndianOil's world-class R&D and an extensive blending and distribution network.500 formulations encompassing literally every conceivable application. SERVO range of lubricants is available through a network of SERVOXPRESS stations. Opened in convenient locations like malls. Rheology. polishing.. petrol pumps or as stand-alone units. with significant technological progress in commercial usage in the 20th century. offering a refreshing experience to motorists. four-wheeler perfuming. industrial and marine segments.Tribology. lamination installation. tyre & battery checkups. Recognised for cutting-edge technology and high-quality products. In the recent past two terminologies have gained currency . vacuum cleaning. The rapid development of this science can be said to have started from the 18th century. In the retailing segment. With over 500 commercial grades and 1. SERVOXPRESS stations have facilities for engine oil change. SERVOserves as a one-stop shop for complete lubrication solutions in the automotive. Most lubricants are liquids. the science of Rubbing. easy and convenient auto care. SERVOXPRESS vehicle servicing centres are one-stop shops for quick.

scooters. too. and RSRTC etc. . Bajaj SERVO Gen. coolants and brake fluids and automotive greases. turbine oils. Hyundai. SERVO 4T is a new generation four-stroke engine oil specially recommended for four-stroke engines in motorbikes and scooters. This includes marine engine oils. The marine sector. Vegetable oils have excellent lubrication properties but have very poor oxidation stability. besides its contribution to rusting and corrosion. gasoline engine oils. PRODUCT SERVO primarily caters to three segments: automotive. IOC is a major supplier to auto original equipment manufacturers (OEMs) like Tata Motors. Mahindra & Mahindra. mopeds and outboard engines. rapid thickening and may even let out foul odours in time.application due to its very low viscosity and very low boiling point. Maruti and state transport undertaking like BEST. There are more than 450 different grades of lubes and oils. has a broad range of products to choose from. SERVO provides more than 350 lubricants and greases to the industrial segment. high pour point. Bajaj SERVO Gen. Others in the category are Kinetic Ultra 2T. hydraulic oils. 2T Zoom. The products for the automotive sector include 2T/4T oils. Notable among automobile products. gear and transmission oils. SERVO 4T is a new generation four-stroke2T. industrial and marine. SERVO 2T Supreme. which cater to these sectors. 2T Zoom. is a new generation twostroke engine oil recommended for two-stroke engines in motorbikes. APSRTC. gear oils. SERVO is also meeting the lubricants requirements of the Indian defence forces. compressor oils and stern tube oils. diesel engine oils. Most of the liquid lubricants used at present all over the world are petroleum-based mineral oils.

one and only of ts kind.Indian oil’s state of the art R&D center t Faridabad.Chennai and Grease and at vashi of IOC ensure that SERVO lubricant produced there meet international standards ACHIEVEMENTS SERVO’s striking achievement is a steadily rising customer approval for its products in India.blending plants at Mumbai. Daewoo Cielo. The widespread popularity cuts across various customer segments and automobile user communities. SERVO woos and wins its retail customers with a seductive combination of vehicle service. Opel Astra. Mitsubishi Lancer. Fiat Uno or the Maruti family. This is also India’s first in the petroleum industry to have received the ISO 9002 certified lube. SERVO serves them all. SERVO Lubricants – MARKETING AND PROMOTION TECNIQUE . Whether it is Hyundai Santro. On its part. keeps pace with international standards. Calcuttta. grocery shops and engine oil tie-ups with leading international automobile manufacturers.

. industrial. the SERVO range is a one-stop shop for providing complete lubrication solutions in the automotive. mechanics. IndianOil team can provide solutions to just about anything . dealers. and retail stores.automotive or industrial. Margins and Discount Schemes The company mostly sell their products through stockiest. You name it. IndianOil's technical service Engineers are available on call to provide on site Tribology consultancy and value added services. auto spare parts and bazaar shops across the country.SERVO continues to be the dominant player in the Indian lubricant sector backed by cutting edge product development. high quality customization and extensive blending and distribution network. SERVO lubricants are marketed through exclusive SERVO shops. Maximum sales are achieved through mechanics and retail stores. processes and machinery. For customers. Margins and discount schemes offered to the storeowners and mechanics prompt them to sell and promote a particular brand. In the retailing segment. agricultural and marine sectors. Thus product costing and competitive pricing are key factors affecting the market. Prices and Promotion The transformation from the administered pricing mechanism to free pricing has increased the importance of providing cost effective product to the users. besides IndianOil petrol stations. Backed by incisive knowledge of equipment. SERVO will tame it. SERVOXpress centres. distributors.

Companies like Reliance are already selling their products through petrol pumps. The stand-alone refineries will have to be merged with the marketing companies. the industry is going to witness sea changes. and risk management are going to be the crucial factors. logistics management. The monopoly of the public sector holdings will no longer exist. Retail networks.ouple of years. MNC’s will be able to sell their products through petrol pumps. Castrol. Lubes manufactured by Reliance Petroleum. which are now sold at petrol pumps. as they do not have the distribution infrastructure to sell their products in a deregulated market. Frost & Sullivan expects private sector companies to have a market share of around 25 percent. Elf. . Gulf Oil etc. In medium to long term.

 After that.DISTRIBUTION NETWORK OF SERVO Indian Oil Blending Ltd (IOBL) is a fully owned subsidiary of Indian Oil.  SCFP then moves the lube to Dealer Operated Godowns (DFOLG) and carrying and Forwarding Agent (CFA) . Railways.  Where blending of lubricants (mixing of base oil with additives) is done at blending plants. And dispatched to SCFP. customers and large industrial customer SSA deals with sales and promotion of product’s and supplies products in the market SWOT ANALYSIS . engaged in the manufacturing of lubricants and greases and catering to the defense. then filling of barrel. Govt.  After blending of lubricants. railways. product has dispatched to the following: • Servo Stockist automotive (SSA) • Servo Stockist Industrial (SSI) • Direct Institutional Customers (such as Defence. bulks work has to be done. state transport among others.

India’s largest commercial enterprise and the only global Fortune 500 Company.  Servo has been designated as a Super Brand. Maruti Udyog Ltd. Yemen.  Genuine Oil tie ups with Hyundai motors. Mumbai. One of the most advanced in Asia.  Distribution network with 204 Servo Stockist all over India. CKD Skoda. industrial and marine use. Bahrain.. Kuwait. Bangladesh. . Sri Lanka. Mauritius. Elgi Air compressor etc. Burkina Faso. Nepal. kinetic Motors and Equipments Ltd. Chennai and grease plant at Vashi (near Mumbai) ensure that SERVO lubricants produced their meet International Standards.  SERVO range of lubricants is fast emerging as a Global brand with wide acceptance in UAE.  India’s no. Reunion Island and other markets. L&T Kumatsu.  Strong presence of more than 11. beside a countrywide network of bazaar traders. keeps pace with international standards. ranked 189 by revenue in the year 2004. Calcuttta. 1 lubricant brand in term of Sales (42% market shares)  Servo oil has wide range of over 400 grades for automotive.000 retailers.STRENGTH  Indian Oil Corporation (IOC)..  ISO 9002 certified lube-blending plants of IOC at Asaoti. Mitsubishi Lancer. Kenya.  Indian Oil modern and well-equipment R&D center at Faridabad. owns SERVO. Malaysia.

 Being a PSU’s.  Foray into the untapped Rural Market.  Continuous improvement in the technology in the end user industry because of continued growth of the light commercial vehicle (LCV).  Significant improvements are requirement in packaging of lubes as often there are complaints of leakage or the quantity being short. Passenger Car Motor Oil (PCMO’s) and Multi Utility Vehicle (MUV) segments and rapid shift to 4stroke engines in the 2-wheeler segments. decision-making process is slow. .  Leverage its financial strength for expansion of customer base through strategic alliance with Original Equipment manufacturers.OPPORTUNITY  Overseas market. which constitutes 85% of the market.  Spurious equivalent of servo on market.  Opportunities for growth are likely to result from Foreign Direct Investment particularly in the Transport Equipment Manufacturing (TEM) and Machinery manufacturing segments. WEAKNESS  Lags behind in promotional activities.

Shell and Numaligargh Refinery to set up retail marketing stations thereby giving rise to stiff competition.  Tie ups of players in the market with automotive companies and OEM’s like the tie up of Castrol with mahindra & mahindra for supply of the diesel engine oil for its tractors is gradually eroding the market share of SERVO. . ONGC.THREAT  An increase in base oil price with no corresponding increase in product price coupled with additional advertising expenditure is likely to keep margins under pressure. Essar Oil. .  Due to lack of promotional activities competitors like BP and Castrol etc.  Government has already given permission to Reliance. are gradually taking away the market.

however.200 formulations. There are 44 lubricant companies in the market including Total. with its Servo brand of lubricants. We are doing extensive engine trails at present. Most liquid lubricants used at present all over the world are petroleum-based mineral oils." said a Mumbai-based analyst. The Servo range includes over 500 lubricants and 1. Bharat Petroleum Corporation and Hindustan Petroleum Corporation . April 22. The company is conducting trial runs on the lubricant and would soon evolve a marketing and branding strategy for the product. from mineral oil-based products. would be used in agricultural and forest machinery. "Use of biodegradable lubricants which are mainly derived from genetically modified vegetable oils.LITERATURE REVIEW IOC to market bio-lubricant next year Business Standard Mumbai. A biodegradable lubricant can be vegetable oil-based or based on synthetic esters manufactured from modified renewal oils. 2010 Indian Oil Corporation (IOC). the nation's biggest oil marketer and refiner.which together hold over 50 per cent share. and the transport sector. Shell and Vedol. besides brands from the three government-controlled oil companies ." said a senior executive from IOC. is the dominant company in the country's lubricant market. the product should hit the market under a suitable brand name. will launch its first biodegradable lubricant next year. In the next one year. "Lab tests for the product are over.IOC. The research on the product had begun two years earlier. Gulf. IOC. The product would be marketed as a separate brand. .

OBJECTIVE OF THE PROJECT • To understand the expenditure part. it has strong distribution presence through workshops and spare parts suppliers-over 70.000-strong petrol station network. Castrol India.000 outlets.The total lubricant market in India is 1. of which automotive use is about 950 million litres.000-plus for IOC's Servo. The company will shortly commission a project at its Faridabad centre. the other dominant player. where it will install technology for coal gassification and production of ethanol from biomass.6 billion litres. IOC is also conducting research in areas like oil refining technology and producing diesel from algae. HYPOTHESIS OF THE PROJECT . • To see the awareness about the product • To know the major consumers of the product in Greater Noida. trends and variations over the years. claims to have 27 per cent of the market. While analysts say Castrol cannot match public sector units in coverage due to their 30. • To carry out comparative analysis of sales of lubricants for the past two years. which compares well with the 40. The company is also in talks with international energy institutes to tie up for research and development.

then a source with direct personal knowledge of the events being described. synthesis. SECONDARY SOURCE: a secondary source is a document or recording that relates or discusses information originally presented elsewhere. depending on how it is used. . a document. A secondary source contrasts with a primary source.RESEARCH METHODOLOGY DATA SOURCE: Primary as well as secondary PRIMARY SOURCE: a primary source (also called original source or evidence) is an artifact. In our project we have studied the different files of IOCL related to discounts being offered to the customers of lubricants. Secondary sources involve generalization. If created by a human source. It serves as an original source of information about the topic . or other source of information that was created at the time under study. or evaluation of the original information. a recording. and some sources may be classified as primary or secondary. interpretation. analysis. which is an original source of the information being discussed. Primary and secondary are relative terms.

a sample population selected because it is readily available and convenient .etc everything is being taken by internet from IOCL website.with the increase in discounts being offered to its dealers and customers as compared to the discounts being offered in the year 2008. RESEARCH INSTRUMENT: Primary data SAMPLE PLAN: Data for the year 2008 and 2009.. TYPE OF RESEARCH: Exploratory in nature. EXPLORATORY RESEARCH: Exploratory research provides insights into and comprehension of an issue or situation. data collection method and selection of subjects. its products.In our project we took various information about the company history. Exploratory research helps determine the best research design. SAMPLING METHOD: COVENIENCE SAMPLING: Convenience sampling (sometimes known as grab or opportunity sampling) is a type of non probability sampling which involves the sample being drawn from that part of the population which is close to hand. its services. That is. exploratory research often concludes that a perceived problem does not actually exist Our main aim was to find out the percentage increase in sales of IOCL lubricants for the year 2009 as compared to 2008. Given its fundamental nature. Exploratory research is a type of research conducted because a problem has not been clearly defined. It should draw definitive conclusions only with extreme caution.

partial. Correlation (bivariate. marketing organizations and others. Statistical Package for the Social Sciences) is a computer program used for statistical analysis. government.[4] In addition to statistical analysis. K- means. Explore. hierarchical)Discriminant LEARNING . Frequencies. education researchers. Descriptives. Bivariate statistics: Means. t-test. ANOVA. survey companies. It is used by market researchers. Nonparametric tests   Prediction for numerical outcomes: Linear regression Prediction for identifying groups: Factor analysis. Statistics included in the base software:  Descriptive statistics: Cross tabulation. file reshaping. Descriptive Ratio Statistics  distances). cluster analysis (two-step. 1970) has been described as one of "sociology's most influential books". creating derived data) and data documentation (a metadata dictionary is stored in the datafile) are features of the base software. SPSS is among the most widely used programs for statistical analysisin social science. health researchers.TOOLS AND TECNIQUES OF ANALYSIS FO DATA: SPSS SPSS (originally. The original SPSS manual (Nie. data management (case selection. Bent & Hull.

BIBLIOGRAPHY . So company has to spend more on promotional schemes. I had learnt a lot during this training and I think these learning experiences would be great helping me future. I completed my summer training in the lube department of marketing division of IOCL. NOIDA. Some times he purchase duplicate lubricant. advertisement campaign and awareness programs. whenever a customer goes to the retail shop.The organization can utilize the talent of student with the difficulties faced at actual working environment to prepare them to face the future challenges and provide practical exposure.. and then customer is confused. During training I got opportunity to interact with the people in the top management of the company. There is another problem in lube industry is facing competition from local brands which is easily available in the market. I got great experience in my 8-weeks training period in IOCL. so servo need to Increase in activities of customer and mechanic awareness through more advertisement and mechanics meet at regular interval. CONCLUSION . SERVO is India’s No. The lubricants industry in India is one of the few sub-sectors of the petroleum industry. Which helps customer to choose original product. he is facing many brand lubricants.1 lubricants brand not only in terms of sales but also in terms of quality and range. which was opened out completely to private and foreign companies. In urban market.

shilpabichitra.FROM THE COMPANY SALES FIGURES FOR THE YEAR 2008 AND 2009.htm www.pag?docid=4968520 http://en.com http://www.google.org/wiki/Lubricant http://www.wikipedia.iocl.com/prod/servlet/market-insight-top.com APPENDIX /ANNEXURE PRIMARY DATA.SECONDARY DATA • • • • • www.frost.com/shilpa2000/indart32. DISCOUNT DETAILS FOR THE YEAR 2008 AND 2009 .

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