Chapter- 1 Industry Profile

Indian Oil owes its origins to the Indian government's conflicts with foreign-owned oil companies in the period immediately following India's independence in 1947. The leaders of the newly independent state found that much of the country's oil industry was effectively in the hands of a private monopoly led by a combination of British-owned oil companies Burmah and Shell and U.S. companies Standard-Vacuum and Caltex. An indigenous Indian industry barely existed. During the 1930s, a small number of Indian oil traders had managed to trade outside the international cartel. They imported motor spirit, diesel, and kerosene, mainly from the Soviet Union, at less than world market prices. Supplies were irregular, and they lacked marketing networks that could effectively compete with the multinationals. Burmah-Shell entered into price wars against these independents, causing protests in the national press, which demanded government-set minimum and maximum prices for kerosene--a basic cooking and lighting requirement for India's people and motor spirit. No action was taken, but some of the independents managed to survive until World War II, when they were taken over by the colonial government for wartime purposes. During the war, the supply of petroleum products in India was regulated by a committee in London. Within India, a committee under the chairmanship of the general manager of Burmah-Shell and composed of oil company representatives pooled the supply and worked out a set price. Prices were regulated by the government, and the government coordinated the supply of oil in accordance with defense policy. Wartime rationing lasted until 1950, and a shortage of oil products continued until well after independence. The government's 1948 Industrial Policy Resolution declared the oil industry to be an area of the economy that should be reserved for state ownership and control, stipulating that all new units should be government-owned unless specifically authorized. India remained effectively tied to a colonial supply system, however. In 1949, India asked the oil companies of Britain and the United States to offer advice on a refinery project to make the country more self-sufficient in oil. The joint technical committee advised against the project and said it could only be run at a considerable loss. The oil companies were prepared to consider building two refineries, but only if these refineries were allowed to sell products at a price ten percent above world parity price. The government refused, but within two years an event in the Persian Gulf caused the companies to change their minds and build the refineries. The companies had lost their huge refinery at Abadan in Iran to Prime Minister Mussadegh's nationalization decree and were unable to supply India's petroleum needs from a sterling-area country. With the severe foreign exchange problems created, the foreign companies feared new Iranian competition within India. Even more important, the government began to discuss setting up a refinery by itself. Between 1954 and 1957, two refineries were built by Burmah-Shell and Standard-Vacuum at Bombay, and another was built at Vizagapatnam by Caltex. During the same period the companies found themselves in increasing conflict with the government.

Project Report on Profile Of IOCL


The government came into disagreement with Burmah Oil over the Nahorkatiya oil field shortly after its discovery in 1953. It refused Burmah the right to refine or market this oil and insisted on joint ownership in crude production. Burmah then temporarily suspended all exploration activities in India. Shortly afterward, the government accused the companies of charging excessive prices for importing oil. The companies also refused to refine Soviet oil that the government had secured on very favorable terms. The government was impatient with the companies' reluctance to expand refining capacity or train sufficient Indian personnel. In 1958, the government formed its own refinery company, Indian Refineries Ltd. With Soviet and Romanian assistance, the company was able to build its own refineries at Noonmati, Barauni, and Koyali. Foreign companies were told that they would not be allowed to build any new refineries unless they agreed to a majority shareholding by the Indian government. In 1959, The Indian Oil Company was founded as a statutory body. At first, its objective was to supply oil products to Indian state enterprise. Then it was made responsible for the sale of the products of state refineries. After a 1961 price war with the foreign companies, it emerged as the nation's major marketing body for the export and import of oil and gas.

Project Report on Profile Of IOCL


Chapter- 2 Introduction to the IOCL
2.1 History
A Giant Is Born
Indian Oil was born of the vision of Pandit Jawaharlal Nehru, the first Prime Minister of India, to pursue a policy of self-sufficiency in the petroleum sector as a strategic requirement of a free nation. As part of Panditji’s thrust on oil exploration, refining and marketing operations, Indian Refineries Ltd. was established in August 1958 under 100% Government ownership to erect refineries and lays petroleum pipelines. To take care of marketing of petroleum products across the country, Indian Oil Company Ltd., another 100% Government-owned Company, was formed on 30th June 1959. It was entrusted with the task of reaching petroleum products to every nook and corner of the nation, overcoming severe constraints in terms of logistics, terrain and wide seasonal and regional fluctuations in demand.

The marketing activities of Indian Oil Company began on 17th August 1960 with the receipt of the first parcel of 11,390 tones of imported diesel of Russian origin from MV Uzhgorod docked at Pir Pau Jetty in Mumbai. The Indian petroleum market at that time was ruled by goliaths like Burmah Shell, Esso Eastern Inc., Caltex (India) Ltd., Indo-Burmah Petroleum Co. Ltd and Assam Oil Company Ltd. Indian Oil Company’s first and foremost challenge was to assert itself in the face of stiff competition from these well-entrenched transnational oil companies operating in India. In its first year of marketing (1960-61), the Company’s volume sales was a meager 0.038 million tones (approximately 5% of industry sale) worth Rs. 0.8 crore. The first activity that Indian Refineries Ltd. undertook was the construction of a refinery at Noonmati near Guwahati in Assam with Rumanian help. The refinery was inaugurated by Pandit Jawaharlal Nehru himself in 1962, and processed Upper Assam crude oil received through an Oil India Ltd. (OIL) pipeline from Nahorkatiya. For product evacuation, the 435km Guwahati-Siliguri pipeline and the Siliguri terminal were built and commissioned in 1964. Soon after, it was decided to set up two more refineries, one each at Barauni and Koyali for processing newly-discovered crude oil at Assam and Gujarat respectively. The

Project Report on Profile Of IOCL


Barauni Refinery was built with Russian collaboration and went on stream in July 1964. The Koyali Refinery was also set up with technical assistance of Soviet Russia. Indian Oil acquired control of the refinery from Oil & Natural Gas Commission on 1st April 1965 and commissioned it in October the same year after formal inauguration by the then President of India, Dr. S Radhakrishnan. Meanwhile, on 1st September 1964, Indian Refineries Ltd. was merged in Indian Oil Company to form a vertically integrated entity straddling both refining and marketing functions, and Indian Oil Company was renamed as Indian Oil Corporation Ltd. (Indian Oil). While announcing the historic merger, Prof. Humayun Kabir, the then Union Minister of Petroleum & Chemicals, hoped that Indian Oil would soon handle at least half of the trade in petroleum products. He was proved right within five years. By 1969, the Corporation was handling more than 50% of the total petroleum consumption of the nation and reached 64.2% market participation by the year 1974 During this same decade, India found that rapid industrialization meant a large fuel bill, which was a steady drain on foreign exchange. To meet the crisis, the government prohibited imported petroleum and petroleum product imports by private companies. In effect, Indian Oil was given a monopoly on oil imports. A policy of state control was reinforced by India's closer economic and political links with the Soviet Union and its isolation from the mainstream of western multinational capitalism. Although India identified its international political stance as non-aligned, the government became increasingly friendly with the Soviet Bloc, because the United States and China were seen as too closely linked to India's major rival, Pakistan. India and the USSR entered into a number of trade deals. One of the most important of these trade pacts allowed Indian Oil to import oil from the USSR and Romania at prices lower than those prevailing in world markets and to pay in local currency, rather than dollars or other convertible currencies. For a time, no more foreign refineries were allowed. By the mid-1960s, government policy was modified to allow expansions of foreign-owned refinery capacity. The Indian Oil Corporation worked out barter agreements with major oil companies in order to facilitate distribution of refinery products. The government decided to nationalize the country's remaining refineries. The Burmah-Shell refinery at Bombay and the Caltex refinery at Vizagapatnam were taken over in 1976. The Burmah-Shell refinery became the main asset of a new state company; Bharat Petroleum Ltd. Caltex Oil Refining (India) Ltd. was amalgamated with another state company, Hindustan Petroleum Corporation Ltd., in March 1978. Hindustan had become fully Indian-owned on October 1, 1976, when Esso's 26 percent share was bought out. On October 14, 1981, Burmah Oil's remaining interests in the Assam Oil Company were nationalized, and Indian Oil took over its refining and marketing activities. Half of India's 12 refineries belonged to Indian Oil. The other half belonged to other state-owned companies. By the end of the 1980s, India's oil consumption continued to grow at eight percent per year, and Indian Oil expanded its capacity to about 150 million barrels of crude per annum. In 1989, Indian Oil announced plans to build a new refinery at Pradip and modernize the Digboi

Project Report on Profile Of IOCL


refinery, India's oldest. However, the government's Public Investment Board refused to approve a 120,000 barrels-per-day refinery at Daitari in Orissa because it feared future overcapacity. By the early 1990s, Indian Oil refined, produced, and transported petroleum products throughout India. Indian Oil produced crude oil, base oil, formula products, lubricants, greases, and other petroleum products. It was organized into three divisions. The refineries and pipelines division had six refineries, located at Guwahati, Barauni, Gujarat, Haldia, Mathura, and Digboi. Together, the six represented 45 percent of the country's refining capacity. The division also laid and managed oil pipelines. The marketing division was responsible for storage and distribution and controlled about 60 percent of the total oil industry sales. The Assam Oil division controlled the marketing and distribution activities of the formerly British-owned company. Indian Oil also established its own research center at Faridabad near New Delhi for testing lubricants and other petroleum products. It developed lubricants under the brand names Servo and Servo prime. The center also designed fuel-efficient equipment. The oil industry in India changed dramatically throughout the 1990s and into the new millennium. Reform in the downstream hydrocarbon sector--the sector in which Indian Oil was the market leader--began as early in 1991 and continued throughout the decade. In 1997, the government announced that the Administered Pricing Mechanism (APM) would be dismantled by 2002. To prepare for the increased competition that deregulation would bring, Indian Oil added a seventh refinery to its holdings in 1998 when the Panipat facility was commissioned. The company also looked to strengthen its industry position by forming joint ventures. In 1993, the firm teamed up with Balmer Lawrie & Co. and NYCO SA of France to create Avi-Oil India Ltd., a manufacturer of oil products used by defense and civil aviation firms. One year later, Indo Mobil Ltd. was formed in a 50-50 joint venture with Exxon Mobil. The new company imported and blended Mobil brand lubricants for marketing in India, Nepal, and Bhutan. In addition, Indian Oil was involved in the formation of ten major ventures from 1996 through 2000. Indian Oil also entered the public arena as the government divested nearly 10 percent of the company. In 2000, Indian Oil and ONGC traded a 10 percent equity stake in each other in a strategic alliance that would better position the two after the APM dismantling, which was scheduled for 2002. According to a 1999 Hindu article, Indian Oil Corporation's strategy at this time was "to become a diversified, integrated global energy corporation." The article went on to claim that "while maintaining its leadership in oil refining, marketing and pipeline transportation, it aims for higher growth through integration and diversification. For this, it is harnessing new business opportunities in petrochemicals, power, lube marketing, exploration and production ... and fuel management in this country and abroad." In early 2002, Indian Oil acquired IBP, a state-owned petroleum marketing company. The firm also purchased a 26 percent stake in financially troubled Haldia Petrochemicals Ltd. In April of that year, Indian Oil's monopoly over crude imports ended as deregulation of the Project Report on Profile Of IOCL 5

Indian Oil believed it was well positioned for future growth and prosperity. 43. It reaches Indane cooking gas to the doorsteps of over 50 million households in nearly 2. meeting the fuel needs of domestic and international flag carriers.Siliguri pipeline.100 bulk consumer pumps are also in operation for the convenience of large consumers. expansion of marketing infrastructure and product quality up gradation as well as in integration and diversification projects 2. During the first 45 days of deregulation.000 Indane distributors Indian Oil's ISO-9002 certified Aviation Service commands over 62% market share in aviation fuel business.29 million tones of petroleum products. the Guwahati . This 435-Km pipeline connecting Guwahati Refinery to different installations was designed to carry about 0. the company has grown from strength to strength and for the fiscal 2007.000 sales points. including 1.74 million tones of natural gas. Indian Oil commissioned India's first product pipeline.600. ensuring products and inventory at their doorstep. numbering over 17. and industrial. About 7. state transport undertakings. agricultural and marine sectors. the company faced increased competition from large international firms as well as new domestic entrants to the market. private airlines and the Indian Defense Services. Indian Oil is investing Rs. 635 crore* and profit Rs.393 crore (US $10. the Indian Oil group sold 59. Indian Oil achieved sales of 10 million kilolitres with a turnover of Rs.818 MMT of oil per year. Indian Oil management believed that the deregulation would bring lucrative opportunities to the company and would eventually allow it to become one of the top 100 companies on the Fortune 500--in 2001 the company was ranked 209.5 crore by the late 60's. From then on. 22. Indian Oil lost Rs7.8 billion) during the period 2007-12 in augmentation of refining and pipeline capacities. in 1965. Indian Oil operates the largest and the widest network of petrol & diesel stations in the country. As a result. 101 aviation fuel stations and 89 Indane (LPG’s) bottling plants.petroleum industry went into effect. They are backed for supplies by 166 bulk storage terminals and depots.25 billion. Nevertheless.2 Network beyond Compare As the flagship national oil company in the downstream sector. and exported 3.032 million kilolitres. including that of railways. Project Report on Profile Of IOCL 6 . With demand for petroleum products in India projected to grow from 148 million metric tons in 2006 to 368 million metric tons by 2025. The Corporation also enjoys a dominant share of the bulk consumer business.33 million tones of petroleum products. From a small beginning with a sale of 0. a signal that the India's largest oil refiner would indeed face challenges as a result of the changes. Indian Oil reaches precious petroleum products to millions of people everyday through a countrywide network of about 34.700 markets through a network of about 5.

and invests in innovative technologies and solutions for sustainable energy flow and economic growth. values its employees. tractor engine oils and pump set oils. corporate social responsibility (CSR) has been the cornerstone of success right from inception in the year 1964. first aid. thereby building value for its shareholders and customers. 2. The Corporation respects human rights. vehicle tracking and marker systems have been introduced to ensure quality and quantity of petroleum products. etc. spare parts for trucks and tractors. To safeguard the interest of the valuable customers. medicines. As part of the scheme. Exclusive XTRACARE petrol & diesel stations unveiled in select urban and semi-urban markets offer a range of value-added services to enhance customer delight and loyalty. In the past four decades. customers always get the first priority. Large format Swagat brand outlets cater to highway motorists. Indian Oil has supported innumerable social and community initiatives in India.4 Initiatives by Indian Oil At Indian Oil. there is an Indian Oil Scholarship scheme. SERVOXpress has been launched recently as a one-stop shop for auto care services. besides auto fuels and kerosene. Indian Oil People have time and again rallied to help victims of natural calamities. As part of Indian Oil's social responsibility programme. special encouragement is being given to girl students. physically challenged students.3 Customer First At Indian Oil. Indian Oil has always been in the forefront in times of national emergencies. pesticides. maintaining Project Report on Profile Of IOCL 7 . with multiple facilities such as food courts. cultural and educational programmes. Touching the lives of millions of people positively by supporting environmental and health-care projects and social." As a constructive partner in the communities in which it operates. and students from J & K as well as the Northeast States. offering a variety of products and services such as seeds. Indian Oil has been taking concrete action to realize its social responsibility objectives. Indian Oil also aims at developing techno-economically viable and environmentfriendly products & services for the benefit of millions of its consumers. Besides focusing primarily on the welfare of economically and socially deprived sections of society.2. The Corporation’s objectives in this key performance area are enshrined in its Mission statement: "…to help enrich the quality of life of the community and preserve ecological balance and heritage through a strong environment conscience. interventions like retail automation. farm equipment. spare parts shop. rest rooms and dormitories. fertilizers. which provides for attractive scholarships to bright students selected on 'merit-cummeans' basis. New initiatives are launched round-theyear for the convenience of the various customer segments. while at the same time ensuring the highest standards of safety and environment protection in its operations. Specially formatted Kisan Seva Kendra outlets meet the diverse needs of the rural populace.

(Indian Oil) is celebrating its Golden Jubilee during 30th June . 2. Indian Oil is also committed to the Global Compact Programme of the United Nations and endeavors to abide by the 10 principles of the programme. Indian Oil has since grown over 3000 times with a sales turnover of Rs. some of which are already part of the Corporation’s Vision and Mission statements. 7. 285. The integrated refining & marketing entity has since grown into the country’s largest commercial enterprise and India’s No. Set up with the mandate of achieving self-sufficiency in refining and marketing operations for a nascent nation set on the path of economic growth and prosperity.950 crore for 2008-09. health and environment protection high on its corporate agenda. safe work places and enrichment of the quality of life of its employees. With safety. was renamed Indian Oil Corporation Ltd. 101 Project Report on Profile Of IOCL 8 . the highest–ever for an Indian company. 45.1 Company in the prestigious Fortune ‘Global 500’ listing of the world’s largest corporates. Indian Oil has also set up the Indian Oil Foundation (IOF) as a non-profit trust to protect. As part of its environment-protection initiatives.18 crore and sales of 1. and a net profit of Rs. They are backed for supplies by 167 bulk storage terminals and depots. so as to ensure sustainable development. currently at the 116th position. Indian Oil Company Ltd.38 million tones valued at Rs. Indian Oil Corporation Ltd.337 crore. Indian Oil is committed to conducting business with a strong environment conscience. preserve and promote national heritage monuments. Indian Oil has invested close to Rs. 78 crore in the year 1965.000 sales points. 2. (established in August 1958) with it. customers and the community.1 Indian Oil Today From a fledgling company with a net worth of just Rs. It is the firm resolves of Indian Oil people to move beyond business.5. It is also the 18th largest petroleum company in the world. touch every heart and fuel a billion dreams.1st September 2009. 2. Indian Oil today accounts for nearly half of India’s petroleum consumption. reaching precious petroleum products to millions of people everyday through a countrywide network of around 35.uninterrupted supply of petroleum products and contributing to relief and rehabilitation measures in cash and kind. on 1st September 1964 following the merger of Indian Refineries Ltd.000 crore in state-of-the-art technologies at its refineries for production of green fuels meeting global standards. Established as an oil marketing entity on 30th June 1959.5 “50 Golden Years in the Service of the Nation” India’s flagship national oil company and downstream petroleum major.

For the year 2008-09. 2. Its current R&D focus is on the future business needs of Indian Oil in the areas of petrochemicals. Indian Oil sold 62. etc. during the war for liberation of Bangladesh. accounting for 34% of national refining capacity. maintenance and consultancy services. project execution.aviation fuel stations and 89 Indane LPG bottling plants. Plans are under execution to add about 4. pipeline transportation and alternative fuels such as ethanol-blended petrol and bio-diesel. In fact. The Indian Oil Group of companies owns and operates 10 of India’s 20 refineries with a combined capacity of over 60 MMTPA. At the time of Operation Vijay at Kargil in 1999. when Indian Oil People maintained the vital supply of petroleum products to the armed forces with grit and determination. after excluding EOU refineries. In fact. This was proved beyond doubt during the 1965 war. and continues to honor this tradition even now.6 million tones of petroleum products. including 1. It has over 214 active patents to its credit. despite shelling of its depots at Leh and Kargil. the Srinagar depot was one of the first bulk storage facilities set up by the Corporation. Indian Oil has been genetically coded to serve the Defense services. Indian Oil even arranged for crude oil supplies to the Chittagong Refinery. the Corporation for the first time extended reservation in award of retail outlet dealerships to war widows. and alternative energy sources.. In-house capabilities have enabled the Corporation undertake all pipeline projects on its own and even offer turnkey expertise in techno-economic feasibility studies. the Corporation crossed 10. Besides setting up state-of-the-art facilities to raise product quality to global standards. Indian Oil maintained petroleum supplies in the war zone and stood by the families of the war heroes later. operations. in November 1965. including 113 international patents.2 Battle Spurs As a veteran IOCian put it once. Project Report on Profile Of IOCL 9 . refinery processes. Indian Oil's R&D Centre has blossomed into a world-class institution and Asia's finest. Indian Oil has undertaken chartering of ships for crude oil imports on its own and is expanding its basket of crudes and upgrading its refineries to handle a wider array of crudes. freedom fighters.000 km more by the year 2012. in 1963.5. Besides its pioneering work in lubricants formulation. including polymers. disabled Defense personnel. After the war. design and detailed engineering. the Centre is also the nodal agency of the Indian hydrocarbon sector for ushering in Hydrogen fuel into the country. in March 1972.7 million tones of natural gas.000 km in pipeline length and about 70 MMTPA in throughput capacity with the commissioning of the 330-km Paradip-Haldia crude oil pipeline recently. As a pioneer in lying of cross-country crude oil and product pipelines. including high-sulphur types. Another opportunity to show its mettle in times of national emergencies came Indian Oil’s way during the1971 war. Indian Oil’s entry into the aviation fuelling business too began with the Defense Services in October 1964 and then to civil aviation a year later. Set up in 1972. Projects under execution will take the capacity further to 80 MMTPA by the year 2011-12.

and appointing dealers and distributors across the country. with multiple facilities such as food courts. pesticides.550 specially formatted Kisan Seva Kendra outlets set up across the country meet the diverse needs of the rural populace. and industrial. and were the harbingers of the modern Kisan Seva Kendra (KSK) successfully introduced by Indian Oil in 2006. interventions like retail automation. agricultural and marine sectors. besides auto fuels and kerosene. meeting the fuel needs of domestic and international flag carriers. spare parts for trucks and tractors. As part of customer segmentation. especially for farmers. etc. Indian Oil plunged into frenetic activity with newfound confidence – setting up refineries.3 Marketing Innovations Having set up Its first petrol & diesel station (retail outlet) at Kochi in October 1962. marine bunkering. Indian Oil has been chosen as the ‘Most Admired Retailer of the Year’ in the category of Rural Retailing at the India Retail Forum during 2008. customer-focused specialty products and customer rewards programmes. About 600 such Kendra are being added to the Corporation’s marketing network every year. tractor engine oils and pump set oils. offering a variety of products and services such as seeds. The Haldia Refinery was set up in 1975. exclusive XTRACARE outlets unveiled in select urban and semi-urban markets offer a range of value-added services to enhance customer delight and loyalty. Large format outlets on highways cater to the needs of motorists. Over the years. fertilizers. These MPDCs served as one-stop convenience shops. laying pipelines. rest rooms and dormitories. spare parts shops. The Corporation is setting up another grassroots refinery at Paradip in Orissa. Initiatives for cashless transactions for customer convenience through co-brand credit cards and fleet cards have met with great success. farm equipment. Indian Oil has also launched several branded products. 2. Indian Oil currently operates the country’s largest network of retail outlets numbering over 18.5. Its ISO9002 certified Aviation Service commands over 63% market share in aviation fuel business. SERVOXpress has been launched recently as a one-stop shop for autocare services. medicines. New generation branded transportation fuels with multifunctional additives are now available in major markets. for commissioning by the year 2012. Indian Oil also enjoys a dominant share of the bulk consumer business. Mathura Refinery in 1982 and Panipat Refinery in 1998. first aid. Project Report on Profile Of IOCL 10 . It was the first oil marketing company to introduce the concept of Multipurpose Distribution Centers (MPDCs) at its retail outlets located in rural areas way back in 1975. private airlines and the Indian Defense Services. To safeguard the interest of the valuable customers.Having proved its mettle in the 1965 war. 278 with focus on customer convenience. As on date. including that of railways. building storage terminals and aviation fuel stations. over 2. entering new businesses like bitumen. state transport undertakings. vehicle tracking and marker systems have been introduced to ensure quality and quantity of petroleum products.

A technology innovation has been initiated to reach LNG (Liquefied Natural Gas) directly to Project Report on Profile Of IOCL 11 . In petrochemicals. reticulated supplies for housing complexes and 5-kg cylinders for customers in inaccessible and hilly terrain. an onland block in Nigeria and two onshore blocks in Yemen. Several innovations were introduced in LPG marketing from time to time.000 tones. Introduction of the clean and efficient LPG as cooking gas ushered in a revolution in millions of households.000 tones) for polyester intermediates is already in operation at Panipat. while a Naphtha Cracker with a capacity of 800. – a special purpose vehicle for acquisition of overseas E&P assets – in Port Louis.000 Indane distributors.000 crore (US$ 7. In E&P. In natural gas business. Indian Oil is currently forging ahead on a well laid-out road map through vertical integration . 20. at Kolkata in October 1965.000 tones set up at its Gujarat Refinery. in consortium with OIL. like mounded storage and 19-kg cylinders for bulk customers. mostly in upcountry locations for quicker turnaround of cylinders. Indian Oil has bagged eight oil & gas blocks and two Coal Bed Methane blocks under NELP (New Exploration Licensing Policy) rounds in India.4 Kitchen Revolution Indane was the first branded product from Indian Oil to hit the market.53.5. Mauritius. Indian Oil has incorporated Ind-OIL Overseas Ltd. 2.5 New Businesses In pursuit of its Corporate Vision and to achieve the next level of growth.5. Indian Oil is targeting sale of 2 million tones in 2008-09.2. equipped with downstream polymer units is also coming up at Panipat.upstream into oil exploration & production (E&P) and downstream into petrochemicals . It has also acquired participating interest in two onshore blocks in Assam and Arunachal Pradesh. This includes customers in Andaman & Nicobar and Lakshadweep islands.63.000 tones of ethylene per annum. Overseas ventures of the Corporation include two blocks in Sirte Basin and Areas 95/96 in Ghadames basin of Libya.4 billion) investment by the year 2011-12.3.700 markets through a network of about 5. Through the world’s largest single-train Linear Alkyl Benzene (LAB) plant with an annual capacity of 1. Encouraged by customer response and to ensure dedicated service. Indane cooking gas today reaches the doorsteps of over 53 million households in nearly 2. 30. Autogas (LPG) dispensing stations are being set up in metros and major cities to cater to the growing vehicle population using LPG as fuel. besides globalization of its downstream operations. PTA – 5. with product sourced from its Barauni Refinery.. The process continues even today with the setting up of 89 Indane bottling plants. A world-scale Paraxylene/Purified Terephthalic Acid plant (annual capacities: PX . onshore farmin arrangements in Gabon. the Corporation has already captured a significant market share of LAB in India.and diversification into natural gas marketing. Indian Oil undertook massive augmentation of LPG storage and distribution facilities across the country in 1983. The Corporation’s in-house IndMax process is aimed at enhancing LPG yield from crude oil refining. besides exports. Farsi Exploration Block in Iran. in consortium with other companies. Indian Oil is envisaging Rs.

terminalling services. In addition. IOC Middle East FZE oversees blending of SERVO lubricants and marketing of petroleum products and lubricants in the Middle East. Indian Oil acquired IBP in the year 2002 and seamlessly merged it with the parent company in 2007. besides an oil terminal and a lube blending plant at Trincomalee. In the year 2001. Indian Oil People have been in the forefront in adapting to the changing environment and enhancing the organization’s capabilities in providing innovative and value-added offerings to the customers. city gas marketing. Was launched as a fully-owned R&D subsidiary in the year 2003 to market the Corporation’s intellectual property. Mauritius (2004) and the United Arab Emirates (2006).6 Group Synergy As part of inorganic growth through mergers and acquisitions. (BRPL). the refinery operations and marketing activities of Assam Oil Company were vested in Indian Oil in October 1981. capacity expansion of CPCL and laying of the 526-km Chennai-TrichyMadurai product pipeline helped further strengthen Indian Oil’s marketing in South India. Subsequently. Indian Oil has maintained its position as India's flagship national oil company. (CPCL) and Bongaigaon Refinery & Petrochemicals Ltd. Similarly. LPG and LNG imports and storage. operates about 150 petrol & diesel stations in the island nation. Indian Oil (Mauritius) Ltd. Indian Oil Technologies Ltd. Lanka IOC Ltd. An LNG import terminal is proposed to be set up at Ennore near Chennai. has an overall market share of nearly 20%.5.7 Future Plans In spite of deregulation of the oil sector and stiff competition from private players.the doorstep of bulk consumers in cryogenic containers for industrial as well as captive power applications. operates a modern petroleum bulk storage terminal at Mer Rouge port. 2. leading to the formation of a larger and more formidable marketing network.5. and it became the Assam Oil Division of Indian Oil. 2. Africa and CIS countries. etc. and commands a 32% market share in aviation fuelling business in Mauritius. strategic turnaround initiatives taken by the Indian Oil helped BRPL come out of the red and post profits and merger with the parent company is due soon. Project Report on Profile Of IOCL 12 . substantially enhancing group refining capacity. Indian Oil acquired the Government stake and management control of stand-alone refiners Chennai Petroleum Corporation Ltd. Indian Oil has eight active joint ventures in operation with reputed Indian and overseas partners in the areas of aviation refueling. The old units of the vintage Digboi Refinery (the first refinery in Asia) were revamped and by 1996 it was transformed into a modern refinery of Indian Oil. specialty lubricants and additives. City gas distribution projects are in the pipeline in partnership with other companies. Indian Oil has set up three overseas subsidiaries – in Sri Lanka (2003).

customer-focused innovations in product and service offerings. Indian Oil has successfully combined its corporate social responsibility agenda with its business offerings. brand management and bio-fuels. Indian Oil is focusing on certain key issues for sustained growth in the deregulated market.8 India Inspired As a leading public sector enterprise of India.Against the backdrop of a rapidly changing business environment. customizing products for specific market segments. transferred powers from the four regional offices to 16 marketing offices in State capitals. have also thrown up myriad opportunities. and set up exclusive groups for process & systems optimization. and achieving greater synergy with group companies for enhanced efficiency and effectiveness in the market place. streamlining distribution infrastructure. Indian Oil is making the most of them mainly in expanding its existing customer base. difficult terrains and harsh climatic conditions. 2. at par with international standards. streamlining of business processes. meeting the energy needs of millions of people everyday across the length and breadth of the country. optimum capacity utilization of refineries and pipelines network. traversing a diversity of cultures. etc. The rising customer aspirations for quality products and services. These are: prudent finance and projects management. As part of the Marketing Transformation Programme to move closer to the customers. The ambitious Project Manthan IT re-engineering project has enabled the organization to assimilate IT and web-based business solutions for real time. 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 Project Report on Profile Of IOCL 13 . integrated transactions and IT solutions for supply chain optimization. Indian Oil has bifurcated its marketing function vertically into exclusive retail and direct consumer groups.5. competitive business strategies.

6 Key dates for the IOCL • • • • • • • • 1948: India's government passes the Industrial Policy Resolution. 1959: Indian Oil Company is founded as a statutory body to supply oil products to Indian state enterprise. Indian Refineries Ltd. 1998: The Company’s seventh refinery is commissioned at Panipat. Project Report on Profile Of IOCL 14 . 1981: Half of India's 12 refineries are operated by Indian Oil. 1964: Indian Refineries and Indian Oil Company merges to form the Indian Oil Corporation. which states that its oil industry should be state-owned and operated 1958: The government forms its own refinery company.2. 2002: The Indian petroleum industry is deregulated. 1976: The Burmah-Shell and the Caltex refineries are nationalized.

153 in 2006.2. Amongst the petroleum companies in the world.strong team of Indian Oil People. Reliance Industries (264). Hindustan Petroleum (311). all made possible by a 35000 . Indian Oil has steadfastly climbed from 226 in the year 2002 to 191 in 2003. and a crowning glory in its Golden Jubilee Year (1959-2009). Indian Oil’s rank is 20. This is the 7th year in succession that Indian Oil has improved its ranking. State Bank of India (363) and Oil & Natural Gas Corporation (402). Bharat Petroleum (289). Indian Oil leads the pack of seven Indian companies appearing in the list that is based on the performance in of the year 2008. Placed at 105. 189 in 2004 to 170 in 2005.993 billion (excluding excise duties). Indian Oil has moved up 11 places. Fortune. followed by Tata Steel (258). Indian Oil has also maintained its leadership status as India's numero uno corporate in the prestigious listing. In the ‘Global 500' club. Project Report on Profile Of IOCL 15 . Indian Oil has been consistently improving its position in the elite list published annually by the CNN-Time Warner group magazine.7 Indian Oil leads India Inc. 135 in 2007. in the just-released Fortune 'Global 500' list of world's largest companies by sales for the year 2009. Fortune magazine has considered Indian Oil’s revenue for the fiscal 2008-09 and has derived the same at US$ 62. 116 in 2008 and now 105 in 2009. in Fortune's 'Global 500' listing for 2009 In a befitting acknowledgement of its ever-improving performance.

thus carving a niche for itself in the global arena. The Corporation also achieved record sales of 62.7 million tones of Gas). For the past 15 years.3% as compared to Rs. 2.upstream into oil exploration & production (E&P) and downstream into petrochemicals . Project Report on Profile Of IOCL 16 .Battling odds in a challenging business environment. with a well laid-out road map through vertical integration . Indian Oil's leap forward in the oil & gas sector.000 km mark in length.47. the 'Global 500' has been the premier list of the world's largest companies. And 2009 is no exception except the bar has been set higher to make it to the list.6 million tones (including 1.85. It is one of the best snapshots of the business world today. Breaching the 10. represents the growth of the Indian corporate sector as well.337 crore up by 15.950 crore.457 crore in the previous year. Indian Oil notched up another year of sterling performance for fiscal 2008-2009. 2. The Profit after Tax was Rs. India's No. 2.and diversification into natural gas marketing. the pipelines network registered the highest-ever operational throughput of 59.4 million tones. The Corporation's refineries surpassed 100% capacity utilization and clocked the highest ever throughput of 51. Indian Oil’s gross turnover (inclusive of excise duty) for the year 2008-09 reached a new high of Rs.5 million tones of crude oil and petroleum products.1 commercial enterprise and flagship oil major. besides globalization of its downstream operations.

Retail/Consumer/Lubricants sales. It also recruits Chartered Accountants from various centers of the Institute of Chartered Accountants of India (ICAI).2. For campus recruitment. communications officers. accounts officers. they are further called for group discussion/ group task and interview. Apart from attractive scales and perks. Based on their performance in the written test. the Corporation has also nominated hospitals at various locations to meet employee needs. Indian Oil visits the IITs. Career growth opportunities are based on the individual's performance and contribution to the common goal of sustained growth. medical officers. terminals. NITs and other reputed technical institutes of the country for recruiting final year engineering students. lab officers. It follows a mix of open and campus recruitment. systems officers. Job rotation and inter-location transfers throughout the country facilitate planned development of careers and broaden outlook. pipeline. Indian Oil provides its employees many facilities and welfare measures. Holiday homes at select locations throughout the country help employees and their families unwind Project Report on Profile Of IOCL 17 . The medical facilities extended to the employees are rated amongst the best in the country. The candidates meeting the criteria set by Indian Oil are then called for a written test. and prominent business management institutes for final year MBA students. scientists. Apart from fully equipped hospitals at refinery townships. For open recruitment advertisements are published in leading national dailies. Most of Indian Oil's top executives have grown from within -.8. It recruits bright and professionally qualified people for its executive cadre. marketing units such as LPG bottling plants. First division professional degree holders and post-graduates from relevant disciplines are recruited as management / engineer trainees. Aviation Fuel Stations. Applications are then scrutinized and checked for eligibility.8 Career Opportunities at IOCL 2. Indian Oil inducts officers at the junior-most level of the management hierarchy (A Grade).1 Work Opportunities @ Indian Oil Indian Oil offers a world of opportunities across more than 600 locations In India including refineries. bulk storage terminals. which are continuously upgraded.a testimony to the unlimited opportunities for growth available to the meritorious. Interested candidates meeting Indian Oil's requirements can apply online. etc. and at the R&D Centre at the entry level.

It also received the 'Best Innovation in Teaching' award from the Association of Indian Management Schools for the year 1998-99. Human Resource Management. 2006 and for the year 2007 as well. IiPM conducts more than 35 short duration programmes for about 1200 senior executives. Indian Oil in 1995 set up the Indian Oil Institute of Petroleum Management (IiPM) as an apex centre for learning. With a mission to align the human resource with corporate business goals and to cater to the pressing organizational needs. IiPM. Project Report on Profile Of IOCL 18 . diversities and domain expertise fuse to create the integrated minds of future leadership. Over the last one and half years.2 Indian Oil on IiPM To meet the emerging challenges of post-deregulated era of the oil sector. gym. The only one of its kind in the petroleum sector. around 200 officials from the Iraqi oil industry have already completed their training at IiPM on various facets of the oil industry. where its divisions. IiPM has been awarded the Golden Peacock National Award for 'Innovative Training Practices' by the Institute of Directors (IOD). state-ofthe-art computer facility. Since the last 12 years. with its sprawling campus in 16 acres of lush green landscape.2. Over the years IiPM has evolved into a world-class centre of excellence in leadership development and has become a hub for meaningful interaction between the participants and business leaders from within and outside and best-in-class academia. has excellent facilities to accommodate over 100 participants at a time. Indian Oil has also been entrusted with the responsibility of training executives from various Iraqi oil companies by the Ministry of Petroleum & Natural Gas (MOP & NG) and the Ministry of External Affairs. For the year 2006-2007. As an ISO 9001-2000 certificate institute.8. for 1998. the Institute has a well-equipped library. 2000. the Indian Society of Training & Development (ISTD) also presented the 'Innovative Training Practices' award to IiPM. 2005. In addition to the modem infrastructure. Marketing Management and Operations & Technology Management to meet the present and future challenges to manage and lead the workplace and organization more effectively. IiPM has been conducting global standard international business management programmes for executive along with various management development programmes. a swimming pool and other amenities to provide a highly invigorating learning ambience. The Institute. The Institute's programmes have been designed and developed based on the industry experience and inputs. It also has a 10 executive suites block earmarked to accommodate the visiting faculty. IiPM has designed and developed the contents and pedagogy of unique programmes in the areas of Strategic and General Management. Every year. considered as being Indian Oil's crucible. The institute is centrally air conditioned with 100% power backup. IiPM aims to create a vibrant bridge of knowledge managers to lead the Indian energy companies.

In addition. Indian Oil has sent in-house experts to train executives of various Sudanese oil companies on pipeline operations & maintenance. IiPM has sharpened its skills of imparting international standard management development programmes for executives performing in the highly competitive business of oil & gas. Their marketing presence today.9 Brief Profile of Other Players At present. reading material and video films related to real-life business. are in the process of setting up retail outlets to integrate across the entire hydrocarbon value chain. Some additional players like ONGC. Qatar (QRC). Kolkata & Bangalore. Faculty of Management Studies (FMS). Delhi. HPC. It has the unique advantage of having information and access to the best faculty to train on the highly critical and significant areas of the ever-growing petroleum industry. Dehradun. This proportion is however. Nigerian Nation Petroleum Company (NNPC). for designing of programmes and sourcing of expert faculty. Oman Refinery Company. gives it a noteworthy edge for imparting management education to working executives of the Indian industry in general and the energy sector in particular 2. there are four PSUs namely. certain private players like Reliance. and the Indian School of Petroleum. BPC and IBP (subsidiary of IOC) marketing oil products in the country. International Management Institute (IMI). Delhi. IiPM has also developed a comprehensive data bank on expert faculty members which enables designing & development and delivering highly focused market-oriented programmes.380. Abu Dhabi National Oil Company (ADNOC). however. Qatar Refinery Company. Management Development Institute (MDI). Gurgaon. IOC. expected to grow significantly in the coming years Project Report on Profile Of IOCL 19 . Oman (ORC). Recently. The company – wise market share in sales is tabled below: It is evident that the share of the private sector in meeting total consumption of refined petroleum products presently stands at around 15%. is not significant and is limited to about 1370 outlets out of total retail outlet strength of about 29. who have also been granted marketing rights for transportation fuels. Essar and Shell have also in marketing rights for transportation fuels. During the last 12 years of carrying out intensive training development research and consultancy activities. The Institute has a long-lasting academic partnership with premium management institutes like the Indian Institute of Managements (IIMs) based at Ahmedabad. Even the vast bank of the case studies.Indian Oil is also deputing its experts as faculty to impart training to reputed overseas business organizations like Petronas (Malaysia). etc.

LPG Bottling Plants.5 MMTPA. HPCL also owns and operates the largest Lube Refinery in the country producing Lube Base Oils of international standards. On the financial front.2. This Lube Refinery accounts for over 40% of the India's total Lube Base Oil production.837 Crores ($25.95% in Mangalore Refinery & Petrochemicals Limited.1 Hindustan Petroleum Corporation (HPCL) HPCL is a Fortune 500 company.5 million tones in 1984/85 to 13.5 MMTPA capacities and the other In Vishakapatnam.70 million metric tones (MMT) presently. HPCL is progressing towards setting up of a refinery in the state of Punjab in the joint sector.142 Millions) during FY 2007-08.03. In addition. with an annual turnover of over Rs 1.892Million). 16% Refining & Marketing share in India and a strong market infrastructure. and Inland Relay Depots & Retail Outlets. Corresponding figures for FY 2006-07 are: Rs 91. the turnover grew from Rs. a state-of-the-art refinery at Mangalore with a capacity of 9 MMTPA. (East Coast) with a capacity of 7.03. Project Report on Profile Of IOCL 20 . one in Mumbai (West Coast) of 5.448 crores ($20. The vast marketing network of the Corporation consists of Zonal offices in major cities and over 91 Regional offices facilitated by a Supply & Distribution infrastructure comprising Terminals. The refining capacity steadily increased from 5. Aviation Service Stations.837 Crores in FY 2007-08. The Corporation operates 2 major refineries producing a wide variety of petroleum fuels & specialties. HPCL holds an equity stake of 16. With a capacity of 335 TMT.9. 2687 crores in 1984-85 to an impressive Rs 1. The Corporation over the years has moved from strength to strength on all fronts.

and a retail market share of 32.  The Company has the third largest retail outlet and LPG distributor network in the country.2. Indian Oil remained responsible for refining and marketing. The company is anticipated to take advantage of its real estate throughout the country for this purpose. and is also planning to buy out the balance HPCL stake. Some of the key features of BPCL are BPCL is the second largest refining and marketing company in India. The company hopes to put in place a retail network of 1700 outlets in place over the next 3-4 years. the company was nationalized by way of acquiring a 100% equity stake in 1976. with a capacity of 0.3 Mangalore Refinery & Petrochemicals (MRPL) – ONGC Set up as a joint venture between HPCL and the Aditya Birla group in 1988 as a standalone refinery. Both companies grew vastly in size and sales volume but. including KRL and NRL. despite close links. that has been stuck up in the middle of the process along with HPCL.2% in MS. but this Project Report on Profile Of IOCL 21 . and 24% in HSD.13 lakh tones. 2. and another target for disinvestment. ONGC is expanding the scope of its operations to become an integrated player. the company also is working on plans to enter the marketing and retailing businesses. ONGC retained control of most of the country's exploration and production capacity. with the help of Soviet and other foreign companies. Government’s decision not to revise petrol and diesel prices in line with rising crude prices internationally had an adverse impact as the company recorded net losses for a third consecutive quarter. The company along with its subsidiaries owns 15% of the refining capacity and 9% of the product pipelines. In the 1970s. BPCL is the second largest refining and marketing company in India. ONGC is also having a mini plant. MRPL is now a subsidiary of ONGC. Apart from MRPL. and has now three refineries. which has a 71% holding in it.9. Moreover. In line with the other oil refining and marketing companies Bharat Petroleum (BPCL) also ended up in red for the quarter ended Dec 05. It was widely expected that Indian Oil and India's Oil and Natural Gas Commission (ONGC) would eventually be merged into a single state monopoly company. Today. but subsequently the Government has let go a part of its holding to financial institutions. made several important new finds off the west coast of India. It has a 19% market share in the country in terms of sales.  The Company has also adopted innovative marketing strategies such as introducing value added highway retailing among others. the Oil and Natural Gas Commission of India. etc.9. The acquisition of MRPL was in order to facilitate its entry in the downstream industry. mutual funds.2 Bharat Petroleum Corporation (BPCL) BPCL was incorporated in 1952 when the Government entered into a joint venture with Burma Oil and Shell Petroleum. Company’s operating margins turned negative and the company made operating losses. Subsequently. in order to improve its retail sales. they remained separate.

but changed its name to the former in 1993. Now RIL has plans to set up about 4300 more outlets throughout the country subsequently. RIL is a private integrated player in India. RIL’s sales moved up just 2% to Rs. and is at Jamnagar. and complete its attempt at downstream integration. The refining margins continued to suffer as the company recorded a 46% plunge in the PBIT from refining Project Report on Profile Of IOCL 22 . Indian Oil also bought Saudi. Small reductions in interest. 18168 crore. Indian Oil's role as the country's monopoly buyer gave the company an increasingly important role in the economy.4 Reliance Industries Limited (RIL) Reliance Petroleum was incorporated in 1991as Reliance Refineries. and has since merged with its parent company RIL. which pulled the operating profits down by 10% to Rs. and United Arab Emirate oil. The operating margins slipped by 210 basis points to 16. The company posted just 2% rise in revenues and a 15% fall in reported PAT after the operating margins slipped 210 basis points. RIL also owns 23% of the product pipelines in the country. depreciation and tax provisions could not bring any respite for the company. For the quarter ended Dec 05. Kuwaiti. Its foray into marketing is expected to improve its marketing margins. The refinery was commissioned in July 1999. Additionally.increased domestic supply was unable to keep up with demand.9. Reliance Industries (RIL). While the Soviet Union continued to be an important supplier. and it commenced its operations in 2000-01.4%. India became the largest single purchaser of crude on the Dubai spot market. on the country’s western coast. 2976 crore. Its refinery is a standalone. It is India’s largest standalone refinery. India's foreign exchange problems mounted. the Jamnagar refinery is also the world’s fifth largest refinery at a single place. Earlier. and constitutes 24% of the country’s refining capacity. Iraqi. 2. RIL had marketing agreements with the oil PSUs till March 2004 to market about 14 million tones of its petroleum products. and has established a retail network of more than 1300 units. When international prices rose steeply after the 1973 Arab oil boycott. the largest private Sector Company in India came out with disappointing results for the quarter ended Dec 05.

2. Objectives & Obligations Values with Vision Project Report on Profile Of IOCL 23 . Mission. Vision.10 Indian Oil’s Values.

Project Report on Profile Of IOCL 24 .

Project Report on Profile Of IOCL 25 .

 To optimise utilisation of refining capacity and maximise distillate yield and gross refining margin. product formulations. pipeline transportation and alternative fuels with a view to minimising/ eliminating imports and to have next generation products.  To avail of all viable opportunities.  To minimise fuel consumption and hydrocarbon loss in refineries and stock loss in marketing operations to effect energy conservation. To ensure maintenance of continuous and smooth supplies of petroleum products by way of crude oil refining. arising out of the Government of India’s policy of liberalisation and reforms.  To inculcate strong ‘core values’ among the employees and continuously update skill sets for full exploitation of the new business opportunities.  To earn a reasonable rate of return on investment. integration and diversification by harnessing new business opportunities in oil exploration & production. both national and global.  To further enhance marketing infrastructure and reseller network for providing assured service to customers throughout the country.  To achieve higher growth through mergers.  To maximise utilisation of the existing facilities for improving efficiency and increasing productivity. acquisitions.  To create a strong research & development base in refinery processes. petrochemicals.  To develop operational synergies with subsidiaries and joint ventures and continuously engage across the hydrocarbon value chain for the benefit of society at large. natural gas and downstream opportunities overseas. Project Report on Profile Of IOCL 26 . transportation and marketing activities and to provide appropriate assistance to consumers to conserve and use petroleum products efficiently.Objectives  To serve the national interests in oil and related sectors in accordance and consistent with Government policies.  To enhance the country’s self-sufficiency in crude oil refining and build expertise in laying of crude oil and petroleum product pipelines.

• • • To develop long-term corporate plans to provide for adequate growth of the Corporation’s business.Financial Objectives • • • To ensure adequate return on the capital employed and maintain a reasonable annual dividend on equity capital. (c) Towards employees • To develop their capabilities and facilitate their advancement through appropriate training and career planning. (b)Towards suppliers To ensure prompt dealings with integrity. To ensure maximum economy in expenditure. Project Report on Profile Of IOCL 27 . Obligations (a)Towards customers and dealers To provide prompt. To complete all planned projects within the scheduled time and approved cost. courteous and efficient service and quality products at competitive prices. 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. without budgetary support. To reduce the cost of production of petroleum products by means of systematic cost control measures and thereby sustain market leadership through cost-competitiveness. • To have fair dealings with recognised representatives of employees in pursuance of healthy industrial relations practices and sound personnel policies. impartiality and courtesy and help promote ancillary industries.

(e)Towards Defense Services To maintain adequate supplies to Defense and other para-military services during normal as well as emergency situations.(d)Towards community • • To develop techno-economically viable and environment-friendly products. To maintain the highest standards in respect of safety. environment protection and occupational health at all production units. Project Report on Profile Of IOCL 28 .

Chairman. E.2. President of India. H. Pratibha Patil. citation along with a cash prize was presented to the Chairman. President in her lucid address said. So to save our future generations the responsibility rests on each citizen of this country to protect. Ms. "As long there are mountains and green trees on this earth. 2009 at Vigyan Bhawan. conserve and save the environment.11 Awards & Accreditations Bongaigaon Refinery bestowed Indira Gandhi The first among Indian Refineries to receive the award Paryavaran Puraskar 2006. the prestigious Indira Gandhi Paryavaran Puraskar 2006 in the 'Organization' category at a function held on June 5.E. the earth and our future generations will survive. Indira Gandhi's vision of One Earth-One Environment One Humanity needs to be imbibed and propagated on a global platform Project Report on Profile Of IOCL 29 . under the aegis of Ministry of Environment & Forests. H. presented Mr. New Delhi." She added that our former Prime Minister Mrs. A silver lotus trophy. Sarthak Behuria.

Minister of Environment & Forests. Project Report on Profile Of IOCL 30 . A herbal and orchid garden 'Nandan Kanan' has been developed for promoting traditional knowledge." The Environmental Prize Committee constituted under the Chairmanship of Hon'ble Vice President of India select the awardees. to be presented with this prestigious award. The nomination for the award can be recommended by any citizen of India. N. both in the private and public sector. There has been a co-benefit in the form of a substantial reduction in water requirement. Secretary of the Ministry of Environment & Forests and 3 expert members. Mr. Director (Refineries) and Mr. in recognition of its outstanding contribution to environmental conservation and for creating awareness in the Chirang region of Assam. Self nominations are not considered. 1972. on January 19. 000 trees of different species have been planted. along with his team members shared the citation which read.Bongaigaon Refinery is the first amongst Indian refineries and second among industry. Bankapur. B. It would be significant to recall that the foundation stone of Bongaigaon Refinery was laid by Late Smt. "The Bongaigaon Refinery has done commendable work in preserving natural resources in Assam. Indira Gandhi. A Saran. the then Prime Minister of India. Short listing of the nomination is carried out by three Expert Members selected by the Prime Minister's Office comprising the Speaker of the Lok Sabha. Over 66. The company has been promoting clean and eco-friendly technologies and has been successful in achieving zero effluent discharge and recycling of treated effluent. Executive Director.


Chapter-3 Research Methodology Meaning of Research Redman and Mory define research as a “systemized effort to gain new knowledge. To gain familiarity with a phenomenon or to achieve new insights into it.” Some people consider research as a movement. situation or a group. According to Clifford Woody. collecting. a movement from the known to the unknown. organizing and evaluating data. Though each research study has its own specific purpose but the research objectives can be listed into a number of broad categories. To determine the frequency with which something occurs or with which it is associated with something else. To portray accurately the characteristics of a particular individual. 3. To test a hypothesis of a casual relationship between variables. making deductions and reaching conclusions. Such studies are known as hypothesis-testing research studies. and at last carefully testing the conclusions to determine whether they fit the formulating hypothesis. 2. as following:1. The main aim of research is to find out the truth which is hidden and which has not been discovered as yet. Studies with this object in view are known as descriptive research studies. Research is an academic activity and as such the term should be used in a technical sense. 4. Objectives of Research The purpose of research is to discover answers to questions through the application of scientific procedures. Studies with this object in view are known as diagnostic research studies. Studies with this object in view are termed as exploratory or formulative research studies. Project Report on Profile Of IOCL 32 . research comprises defining and redefining problems. formulating hypothesis or suggested solutions.

whether related to business or to the economy as a whole. To study the strategies followed by IOCL to capture the market share. To study products produced by IOCL. both for government and business. It is necessary for the researcher to know not only the research methods or techniques but also the methodology. To study the SWOT & PEST for IOCL. The increasing complex nature of business and government has focused attention on the use of research in solving operational problems. Increased amounts of research make progress possible.Objectives of the Project • • • • • • • To understand the petroleum sector of India. Research inculcates scientific and inductive thinking and it promotes the development of logical habits of thinking and organization. Project Report on Profile Of IOCL 33 . Significance of Research “All process is born of inquiry. Research. To study the organizational chart followed by IOCL. for it leads to inquiry and inquiry leads to invention. To study in brief the financial aspects of IOCL. It may be understood as a science of studying how research is done scientifically. Doubt is often better than overconfidence. To study the company profile of IOCL. The role of research in several fields of applied economics. has gained added importance. In it we study the various steps that are generally adopted by a researcher in studying his research problem along with the logic behind them. Research Methodology Research methodology is a way to systematically solve the research problem. as an aid to economic policy.” Is a famous Hudson Maxim in context of which the significance of research can well be understood. has greatly increased in modern times.

if we want to have first hand information or any happening or event. are secondary data in the hands of researcher.Data Collection Source Information can be collected through both primary and secondary sources. we do the both. The data collected for this project has been taken from the secondary source. Primary Data In some cases the researchers may realize the need for collecting the first hand information. Secondary Data Any data. which have been gathered earlier for some other purpose. Thus. As in the case of everyday life. Sources of secondary data are:• • • Internet Magazines Publications • Newspapers Project Report on Profile Of IOCL 34 . the two method by which primary data can be collected is observation and questionnaire. we either ask someone who knows about it or we observe it ourselves.

Compact 5 kg Indane cylinders were launched in 75 rural and hilly markets of 11 states.e. J & K. With over 42% market share and 450 grades. Arunachal Pradesh. over 1. there is a SERVO lubricant for virtually every single application. Developed exclusively at Indian Oil's world-class R&D Centre at Faridabad. Punjab.380 thousand tones of LPG per annum. i. Uttar Pradesh.000 distributors.Chapter. West Bengal.1 Products Flagships Brands 1) Servo Indian Oil's SERVO is the largest selling lubricant brand in India. Orissa. Project Report on Profile Of IOCL 35 . Assam.000 markets through the country's largest network of over 4. Meghalaya. with plans to introduce them in 500 markets in rural areas. The Corporation’s 82 LPG plants bottle about 3.4 Products & Strategy 4. with one of the largest ranges of automotive and industrial lubricants. the country's leading SERVO brand lubricants from Indian Oil are sold through over 8.300 SERVO Shops and a countrywide network of bazaar traders. Himachal Pradesh.100 Indian Oil petrol/diesel stations. Madhya Pradesh and Tamil Nadu. 2) Indane Indian Oil reaches Indane brand cooking gas to the doorsteps of over 35 million households in over 2.

Subsequently. with 68% market share.XtraPremium and XtraMile (originally IOC Premium and Diesel Super respectively). in fact. 1015 crore. the only petrol in India with 91 Octane and doped with Multifunctional Additives. XtraPremium is. and Indian Oil intends to further expand its marketing in a big way. Between one sunrise and the next. Defense Services and private aircraft operators through 93 aviation fuelling stations. In fact. the refueling never stops and neither does our customer service. 4) Aviation Service Indian Oil’s ISO-9002 certified Aviation Service. The maiden launch of these branded fuels took place in Delhi on Sept. which is round the clock. 24. The wing’s foreign exchange earnings during the year 2008-09 touched Rs. This alternative fuel is a good business proposition in the long term. and XtraMile to 1050 cities and 2000 petrol and diesel stations by the end of the financial year 2008 – 2009.3) Premium Fuel The launch of premium fuels . XtraPremium sales have been extended to 315 cities and 950 petrol & diesel stations. meets the fuel and lubricants needs of domestic and international flag carriers. Bangalore and Mumbai markets. 2002. marks a new beginning for Indian Oil and its customers. Indian Oil refuels over 900 aircrafts. 5) Auto Gas Auto gas (LPG) has been introduced in Hyderabad. Project Report on Profile Of IOCL 36 .

While quality. XtraPremium Branded Petrol. Swagat (Highway) and Kisan Seva Kendras (Rural) are widely recognized as pioneering brands in the petroleum retail segment. SERVO Lubricants. Project Report on Profile Of IOCL 37 . The branding called "LNG at Doorstep". Indian Oil is a heritage and iconic brand at one level and a contemporary. XtraMile Branded Diesel. Autogas LPG. reliability and service remains the core benefits to our customers.Indian Oil is not only the largest commercial enterprise in the country it is the flagship corporate of the Indian Nation. straight-run petroleum distillate liquid. The most common jet fuel worldwide is a kerosene-based fuel classified as JET A-1. Jet fuel is a colorless. 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.682 ft) to the distant islands of Andaman & Nicobar. Between one sunrise and the next. combustible. The company’s Retail Brand template of XtraCare (Urban).The governing specifications in India are IS 1571: 2001 (7th Rev). Besides having a dominant market share. Its principal uses are as jet engine fuel. Lodhi Road Delhi. Indian Oil is India's first ISO-9002 certified oil company conforming to stringent global quality requirements of aviation fuel storage & handling. Quantity and Service to world-class standards is a philosophy that Indian Oil adheres to so as to ensure that customers get a truly global experience in India. our stringent checks are built into operating systems. Indian Oil’s leadership extends to its energy brands . Indian Oil Aviation Service Indian Oil Aviation Service is a leading aviation fuel solution provider in India and the mostpreferred supplier of jet fuel to major international and domestic airlines. Recently Indian Oil has also introduced a new business line of supplying LNG (Liquefied natural gas) by the cryogenic transportation. Indian Oil Aviation Service refuels over 1500 flights – from the bustling metros to the remote airports linking the vast Indian landscape.Indane LPG. Indian Oil Aviation also caters to the fuel requirements of the Indian Defense Services. global brand at another level. from the icy heights of Leh (the highest airport in the world at 10. Indian Oil Aviation and XtraRewards cash customer loyalty programme. Benchmarking Quality. at every level ensuring the trust of over a billion Indians over the last four decades. LNG headquarters are located in scope complex. besides refueling VVIP flights at all the airports and remote heli-pads/heli-bases across the Indian subcontinent . XtraPower Fleet Card. 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.

JP-5. helicopters. and piston-engine aircraft and is similar to automobile fuelling . Underwing fuelling. qualified and dedicated team of officers and refueling crew. which apart from being a two-way channel of communication. To ensure that you receive the best service.Indian Oil Aviation group regularly organizes International Aviation conferences that act as a vital information facilitator with participation from leading international and all domestic airlines. allied industries. Overwing fuelling is used on smaller planes. Indian Oil regularly organizes seminars. which are driven up to parked airplanes and helicopters. Ensuring that these standards are always or more fuel ports are opened and fuel is pumped in with a conventional pump. etc. Methanol Water Mixture. also called single-point is used on larger aircraft. Avgas 100LL. every one of our 101 AFSs follows specific quality audits based on a Quality Control Index System benchmarked to global standards. Project Report on Profile Of IOCL 38 . Essentially. Aviation Turbine Fuel (ATF) is dispensed from specially designed refuelers. the world leader in aviation business. 15 Quality Certification Laboratories provide complete specification tests roundthe-clock. ATF is pumped into an aircraft by two methods: Overwing and Underwing. In addition. Indian Oil is the only oil company in India to market the widest possible range of fuels used by the aviation industry in India. symposiums and workshops to constantly interact with its partners. there is a back up of a highly skilled. Major airports have hydrant refueling systems that pump the fuel right up to the filling outlets on the tarmac through underground pipelines for faster refueling. Jet A-1 and aviation lubricants. statutory aviation authorities and government agencies from over 35 countries. helps us to stay abreast with advances in technology. Indian Oil has a strategic partnership with Air BP.

1.4. Haldia. Narimanam and Bongaigaon . “Indian Oil accounts for 41% of India's total refining capacity. Guwahati.1 Refineries Indian Oil controls 10 of India's 18 refineries .at Digboi. Koyali.with a current combined rated capacity of 47.50 million metric tones per annum (MMTPA) or 950 thousand barrels per day (bpd). Mathura. Chennai.” Project Report on Profile Of IOCL 39 . Barauni. Panipat.

Its original refining capacity had been 0. which has since been increased to 5.5 MMTPA) Project Report on Profile Of IOCL 40 .5 MMTPA since 1901. the first Prime Minister of India. Chennai Petroleum (9. is Indian Oil’s largest refinery. It was commissioned in 1964 with a capacity of 1 MMTPA. It was commissioned in 1975 with a capacity of 2. on 1 January 1962.65 MMTPA. was built in collaboration with Russia and Romania.0 MMTPA. Originally a part of Assam Oil Company. situated 136 km downstream of Kolkata in the Purba Medinipur (East Midnapore) district. the first public sector refinery of the country. Panipat Refinery is the seventh refinery of Indian Oil. in Bihar. Its present capacity is 13. Guwahati Refinery. the capacity of Mathura refinery was increased to 7. Located strategically between the historic cities of Delhi and Agra. was built with Romanian collaboration and was inaugurated by Late Pt.8 MMTPA Mathura Refinery was commissioned in 1982 as the sixth refinery in the fold of Indian Oil and with an original capacity of 6. Jawaharlal Nehru. Its capacity today is 6 MMTPA. The original refinery with 6 MMTPA capacities was built and commissioned in 1998.70 MMTPA.5 MMTPA.Refineries under IOCL • Digboi Refinery. The refinery was commissioned in 1965. Barauni Refinery. It also houses the first hydrocracking unit of the country.5 MMTPA. Gujarat Refinery. Modernization project of this refinery has been completed and the refinery now has an increased capacity of 0. is India's oldest refinery and was commissioned in 1901. Haldia Refinery is the only coastal refinery of the Corporation. in Upper Assam. it became part of Indian Oil in 1981. • • • • • • Subsidiary refineries — Bongaigaon Refinery (2.95 MMTPA). Panipat Refinery has doubled its refining capacity from 6 MMT/yr to 12 MMTPA with the commissioning of its Expansion Project. at Koyali in Gujarat in Western India.

” As the backbone of Indian Oil’s refining and marketing operations.000 km. Project Report on Profile Of IOCL 41 . “Indian Oil owns & operates 76% of India's downstream pipeline network.54% growth at 35.2 Pipelines of IOCL Indian Oil owns and operates India's largest network of cross-country crude oil and product pipelines of 7.45% increase in throughput at 21. Indian Oil also operates two Single Buoy Mooring systems in the high seas off Vadinar coast in the Gulf of Kutch for receipt of crude oil. its MMTPA. with a combined capacity of 43.27 million tones while the crude oil pipelines registered a 10. the product pipelines achieved a 10. During the year. Indian Oil opened new facilities at Mundra port on the west coast for handling of heavy crude oil and blending of heavy and normal grades.300 km pipelines network registered the highest ever operational throughput of 57.85 million tones.12 million tones during the year. Compared to the previous year.

in every part'. well spread out marketing infrastructure comprising 182 bulk storage terminals. From the icy heights of the Himalayas to the sun-soaked shores of Kerala. IBP Co. SERVO lubricants & greases outlets and large volume consumer pumps are backed by bulk storage terminals and installations. The countrywide marketing operations are coordinated by 16 State Offices and over 100 decentralized administrative offices Project Report on Profile Of IOCL 42 . from Kutch on India's western tip to Kohima in the verdant North East. with over 35.000 sales points ensures that essential petroleum products reach the customer at the "right place and right time". installations and depots. inland depots. 92 aviation fuel stations and 78 LPG bottling plants.4. Indian Oil is truly 'in every heart. Indian Oil touches every customer's heart by keeping the vital oil supply line operating relentlessly in every nook and corner of India. LPG bottling plants and lube blending plants amongst others.3 Marketing Indian Oil’s countrywide network of over 22. Ltd. aviation fuel stations.” Indian Oil has one of the largest petroleum marketing and distribution networks in Asia. Its subsidiary.1.000 marketing touch points. Its ubiquitous petrol/diesel stations are located across different terrains and regions of the Indian sub-continent. Indian Oil's vast marketing infrastructure of petrol/diesel stations.000 retail sales points is backed for supplies by its extensive. “Indian Oil caters to over 53% of India's petroleum consumption. Indian Oil’s vast distribution network of over 22. Indane (LPG) distributorships. is a stand-alone marketing company with a nationwide retail network of over 1900 sales points.

4.2.1 Current strategies as a leader Defending its market share • • Market leader in branded fuels with 60% market share Branded fuel growth rate is 75% YOY for IOCL Porter’s generic strategies • • • Overall cost leadership Differentiation Focus Strategic alliance • • • • Product or service alliance Promotional alliance Logistic alliance Pricing collaboration Project Report on Profile Of IOCL 43 .2 STRATEGY 4.

Steps followed in Strategic Formulation Project Report on Profile Of IOCL 44 .

 Company should go for independent Oil block acquisition in future after attaining sufficient experience in that area.  India 70% unexplored sedimentary blocks provide a potential opportunity for the company for diversification  Global competitiveness-With Governments relaxation in FDI norms. ♦ Trans-national: IOCL must go bullish on future acquisitions of oil blocks either in India or abroad ♦ Diversified: IOCL must push for the 5% ethanol (jatropha) blended diesel to promote bio-fuels ♦ Integrated Energy Company: IOCL should market itself as a integrated energy company by venturing into diversified energy sources like.2.4. as they are not able to capture the intended turnover response from the market  Company needs to improve upon upstream R & D so as to be an integrated energy company and be self-sufficient.(up to 49% allowed in refining sector).2 Suggested Strategy for 2012  Blended fuel – brand repositioning has to be done. solar power expansion will increase in a large scale and bio-fuel plantation will be on increased scaled. Project Report on Profile Of IOCL 45 .Indian Government might reduce its share in IOCL in order to streamline fund raising and compete globally.

Strategies of any company can be changed with the change in business atmosphere or the increase in the competition. Skills 4. To provide better working environment to the employees to attract the potential employees as well as satisfy the present employees. Internal Strategies: • • • • • To provide the quality products. Style 3. STRATEGY: Strategies can be defined as the policies or the guidelines. To provide various schemes to the customers as already launched like IOC Extra and Credit Card etc.2. To provide the products with best satisfaction to the retailers (Industries. Project Report on Profile Of IOCL 46 . which will remain the same over a period of time because of their nature. Structure of the marketing division 1. To concentrate more on customer orientation than profit maximization.4. which are being used in any organization. Strategy 2. But there can be some strategies in the organization. Aviation) as well as to the customers.3 MANAGERIAL USEFULLNESS OF STUDY ANALYSIS ON THE BASIS OF 4 S MODEL OF Mc KINSEY MODEL FOLLOWED: 1.

Leh etc. But the company has to face losses on these exports. Most of the times the NAPHTA is being exported to these countries. Indian Oil’s employees are being trained from time to time as per requirement. 2. and Dubai etc. training has become the necessity of any organization. STYLE: Since with the increase in the competition and new inventions. It also exports Lubricants to Dubai.It has its retail outlets in under developed areas like J&K. Seminars etc.Broad Area: • IOCL has been developed all over the country. with profits because of regular dealings with these countries. There is no area left in the country where Indian Oil doesn’t have its retail outlets. Project Report on Profile Of IOCL 47 . In J&K in spite of terrorism and Kargil war. Kenya etc. It is providing the facility inside the Airport only so that the requirements can be met at any time. It has its retail outlets not only in urban area but also in rural areas . The various measures of training adopted in IOCL are: • • • • Off the job training. • Indian Oil is providing its services to Airlines also. Aviation is one of the major customers of the company and it is providing the best quality product to Airlines. Lecture system. at times • In case of excess the products are exported. Bangladesh. where the means of transportation is very costly as well as rare. Group discussion. So it has helped in nation’s security and integration also. EXPORTS: • Indian Oil exports its products mainly to Kenya. Himachal Pradesh. Indian Oil has provided the required oil without fear. Though it has a big domestic market.

system officers. It is also one of the most important systems in any organization. 3.Since all these measures of training are indirect and less motivating because the employees are not actually put into work. So the company should try to adopt the system of On the Job Training where the employees are actually given hands on work for what they are being trained.P. In IOC people are being recruited on the basis of the qualification required for the particular job. maintaining high market share has been a challenging task for the company. The success of any company depends on its employees. The written examinations are conducted as per the requirements and the selected candidates are called for an interview. STRUCTURE FOR THE MARKETING DIVISION It can be broadly divided into 3 categories as represented by the following ways MARKETING AVIATION L. scientists etc. For marketing of L. 4. SKILLS: The term Recruitment means to attract the potential employees to apply in the organization.P. This system is more effective and motivating than any other system. medical officers. After the deregulations of aviation products in 1992. accountants. lab officers. There are no direct placements in the company.G. officers.G PETROL AIRLINES AIRFORCE There are only 2 major customers for aviation products namely airlines and air force. the company has divided the total market into various areas headed by respected area officers Project Report on Profile Of IOCL 48 . First division professional degree holders and Post Graduates from relevant disciplines are recruited as management/engineering trainees. communication officers.

in the eastern part of the country. Towards this end. power and hydrogen from petroleum coke for captive use in the refinery.4 Indian Oil Major Projects Indian Oil continues to lay emphasis on infrastructure development. 1) GRASSROOTS REFINERY . and Styrene. Brief Description: A 15 MMTPA grassroots refinery-cum-petrochemicals complex (along with a product pipeline to Ranchi) is planned to be constructed at Paradip in the state of Orissa. The Refinery will have. This complex envisages production of integrated petrochemicals like Paraxylene.CUM – PETROCHEMICALS PROJECT AT PARADIP Project Cost: Rs. a Hydro cracking Unit. Polypropylene. 25. MS. Naphtha.2. Jet/Kero. a number of schemes have been initiated with increasing emphasis on project execution in compressed schedules as per world benchmarking standards. Schemes for improvement and increased profitability through debottlenecking / modifications / introduction of value added products are being taken up in addition to grassroots facilities. Project Report on Profile Of IOCL 49 . a Delayed Coker Unit and other secondary processing facilities. It will also have an integrated gasification combined cycle plant for production of steam. This will be the most modern refinery in India with nil residue production and the products would meet stringent specifications.646 crore Expected Commissioning: By end of 2011-12 Benefit: The project will help in partly meeting deficit of distillates viz. Diesel and other products. Project systems have been streamlined in line with ISO standards. apart from a Crude and Vacuum Distillation Unit. The complex will generate intermediate petrochemicals feedstock.4. 3344 acre of land has been taken over by Indian Oil and necessary infrastructure development jobs prior to setting up of the main refinery are progressing. LPG.

ATF-Merox. benzene extraction etc. Mathura and Koyali refineries of Indian Oil. besides downstream polymer units like swing unit (LLDPE/HDPE). FCC-Merox. 5. Brief Description: The project envisages setting up of a Naphtha Cracker based on captive utilization of naphtha from Panipat. ISOM. a dedicated HDPE unit. LPG-Merox.2) RESIDUE UPGRADATION AND MS/HSD QUALITY IMPROVEMENT PROJECT AT GUJARAT REFINERY Project Cost: Rs. HGU (PDS) and SRU. processing increased quantity of high sulphur crude and improvement in distillate yield. 14. Polypropylene unit and MEG unit Project Report on Profile Of IOCL 50 . Last Updated: August 09. For the State of Haryana. this project shall lay the foundation for creation of a world-class petrochemicals hub. DHDT. the Cracker complex will have associated units viz. 2007 3) NAPHTHA CRACKER AND POLYMER COMPLEX AT PANIPAT (HARYANA) Project Cost: Rs. butadiene extraction. With a capacity of 800. hydrogenation.439 crore Expected Commissioning: November 2009 Benefit: This project is a cornerstone for Indian Oil's entry into petrochemicals and a new business line for growth.693 crore Expected Commissioning: January 2010 Benefit: The project envisages setting up of a number of units like VGO-HDT. which will engender significant industrial activity in the coming years. Brief Description: The objectives of the project are multifold.000 MT/year of ethylene production. Coker. It shall ensure meeting product quality requirement of MS/HSD to EURO-III/IV levels.

Brief Description: The proposed R-LNG pipeline would provide for an economical means of feeding natural gas to Panipat refinery 6) AUGMENTATION OF MUNDRA – PANIPAT CRUDE OIL PIPELINE Project Cost: Rs. regular and economical transportation of petroleum products to Bangalore-fed areas in a cost-effective manner. Benefit: This is a low cost expansion scheme of Mundra-Panipat crude oil pipeline system for meeting the additional crude oil requirement of Panipat refinery to the tune of 3 MMTPA. 5) DADRI-PANIPAT R-LNG SPUR PIPELINE Project Cost: Rs. Chennai) in Tamil Nadu to Banglore in Karnataka Brief Description: The pipeline would ensure uninterrupted. Kot. Sanganer and Rewari. 250.4) CHENNAI-BANGLORE PRODUCT PIPELINE Project Cost: Rs.66 crore Expected Commissioning: January 2009 Benefit: The 132 km long 30 inch diameter spur line carrying regassified LNG (R-LNG) will stretch from GAIL India’s Dadri terminal in UP to Panipat. 204.74 crore Expected Commissioning: December 2008 Brief Description: Project consists of laying a 22" diameter 20 KM long loopline in KotBeawar section and conversion of Radhanpur scraper station to pumping station while adding pumping units at Mundra.11 crore Expected Commissioning: July 2009(or 24 months from Forest & Environment Clearance) Benefit: The project consists of laying 14"/12" diameter 290 km long product pipeline from CPCL Refinery (Manali. 232. Project Report on Profile Of IOCL 51 .

186.7) PANIPAT-JALANDHAR LPG PIPELINE Project Cost: Rs. Project Report on Profile Of IOCL 52 .72 crore Expected Commissioning: August 2008 Benefit: The pipeline with feed Indian Oil’s LPG bottling Plants at Nabha and Jalandhar in a cost-effective manner. Brief Description: Project consists of laying a 10" diameter 275 KM long LPG pipeline from Kohand (near Panipat refinery) in Haryana to Jalandhar via Nabha in Punjab.

Chapter-5 SWOT & PEST Analysis of IOCL 5. o The company has already entered overseas markets such as Sri Lanka. Sri Lanka. among others. interest in the lubes business in Maldives. The total capacity of these product pipelines is 49. lube additives. pipelines. training and consultancy. thereby strengthening its position in these activities. these refineries became subsidiaries of IOC. IOC has also started exploring the overseas markets for increasing its scope of operations. by virtue of which it has a total share of around 40% of India’s overall refining capacity. and 6492 kerosene/LDO dealers. IOC has also acquired equity stakes in CPCL and BRPL. etc.1 SWOT Analysis for IOCL INTERNAL ENVIRONMENT 5. Bangladesh. 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.79 MMT.1 Strengths o IOC controls 10 refineries. and of its own initiative as well. Project Report on Profile Of IOCL 53 . Maldives. petrochemicals. etc. o 58% of IOC’s refining capacity is located in the Northern and Western regions. the company has a presence in various other related activities such as petroleum storage. gas. 8000 LPG distributors. Its interests include downstream activities in Sri Lanka. o By virtue of entering into extensive joint venture agreements. It also has a dominant share in all segments in terms marketing infrastructure. and in 2001. o Although its refineries are located the interior of the country.1. IOC is also weighing the possibility of entering Indonesia. and Oman and is presently considering entering Turkey through a JV. o IOC also acquired management control of the marketing company IBP. and Nepal. Oman. which are high demand and high growth areas. Maldives. Its network includes 19830 retail outlets. exploration. Dubai.

as compared to some major foreign player is another weakness for the company. EXTERNAL ENVIRONMENT 5. o The Company can make the buying process easier for the customers.2 Weakness:The company is the market leader in the industry. The various opportunities are listed below.3 Opportunity: The IOCL has much opportunity in the present market conditions. of refineries in India. o The Company can think over the issue to build its own pipelines. The company starts working on it. and can introduce any new products.5. o The major weakness for the company is the R&D. The list is given below. o Since the company has the maximum no. o The Company has a great scope in E&P. of out lets and also the maximum no. o The technological drawback. It is already involves in E&P but only in a very limited scale. Project Report on Profile Of IOCL 54 . This is because the petroleum products are a need for everyone and still contain a lot of scope for customization. it can very easily go for extension at any point of time. but still it has many weaknesses. o The petrochemical product development technology is another weakness for the company. which will get support from its huge market network.1.1. so that it will be an independent player and it will also support its aviation fuel supply. by implying many more schemes in the range of XTRAPOWER AND XTRAREWARD.

o The foreign players with more advanced technology are the biggest treat for the company. The list of threats is given below. so faces maximum threats from other players and many other issues. Project Report on Profile Of IOCL 55 . which will eat up its market share. the private player can seriously harm the market share of IOCL.4 Threats: Since the company is the market leader in the field. o In future the market will welcome more private players. Policies allow the private players to set their own price. because the company cannot fix its price and so. o If the Govt.1. o The crude oil supply is also a big issue in front of the company.5. some time had operated in loss also. It is the biggest problem because the maximum part of their crude is been imported.  Mission of the company.2 Economic environment  Projected GDP growth rate of 7%  Recent high inflation attributed to spike in crude oil price  2.“to develop environmental friendly products” Project Report on Profile Of IOCL 56 .130PNG  Regulator is PNGRB  Geo political tensions 5.1 Political and legal environment  Prices governed by Mo.2 PEST ANALYSIS 5.2.3 Socio cultural environment  70% of India lives in villages  Customer psychology is also different for different regions 5.63 mb/day oil consumption  First reason for the Indian trade deficit 5.2.4 Technological environment  Increased R&D expenditures by the company  First experimental H-CNG at R&D center Faridabad  Latest technology development for bio diesel production 5.5 Natural environment  Increased emphasis on environmental policies by Govt.

 Won SCOPE meritorious award for environmental excellence Project Report on Profile Of IOCL 57 .

meeting the energy needs of millions of people everyday across the length and breadth of the country. in recognition of its outstanding contribution to environmental conservation and for creating awareness in the Chirang region of Assam. • The Indian Oil Corporation also enjoys a dominant share of the bulk consumer business. including that of railways. but still certain improvements are yet to take place. roles and responsibilities of the concerned work groups are also being performed very smoothly. difficult terrains and harsh climatic conditions. activities.Chapter. • • The functions. to be presented with this prestigious award. and industrial. After undergoing an in-depth study of the report. Undoubtedly.6 Conclusions • bank. • Bongaigaon Refinery is the first amongst Indian refineries and second among industry. both in the private and public sector. it is because of this incredible expertise an synchronize functioning that Indian Oil has a monopoly in the down stream sector. Various checklists of control have been made as exhaustive as possible in dealing with the banking transactions. agricultural and marine sectors. state transport undertakings. • The oil industry in India changed dramatically throughout the 1990s and into the new millennium. • Utmost care is taken while implementing all the control measures and there is no deviation from the laid down procedures. traversing a diversity of cultures. Reform in the downstream hydrocarbon sector--the sector in which Indian Oil was the market leader--began as early in 1991 and continued throughout the decade. • Indian Oil has successfully combined its corporate social responsibility agenda with its business offerings. one can easily recognize that Indian Oil ensures proper accounting for each and every rupee transacted through Project Report on Profile Of IOCL 58 .

• By virtue of entering into extensive joint venture agreements. and in 2001. IOC has also acquired equity stakes in CPCL and BRPL. these refineries became subsidiaries of IOC. the company has a presence in various other related activities such as petroleum storage. pipelines.• • • Indian Oil Aviation Service is a leading aviation fuel solution provider in India and the most-preferred supplier of jet fuel to major international and domestic airlines. and of its own initiative as well. 8000 LPG distributors. training and consultancy. exploration. It also has a dominant share in all segments in terms marketing infrastructure. thereby strengthening its position in these activities. petrochemicals. gas. IOC also acquired management control of the marketing company IBP. Its network includes 19830 retail outlets. etc. and 6492 kerosene/LDO dealers. IOC controls 10 refineries. which are high demand and high growth areas. Project Report on Profile Of IOCL 59 . by virtue of which it has a total share of around 40% of India’s overall refining capacity. Indian Oil is India's first ISO-9002 certified oil company conforming to stringent global quality requirements of aviation fuel storage & handling. • • 58% of IOC’s refining capacity is located in the Northern and Western regions. lube additives.

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