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.

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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.

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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

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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

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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

635 crore* and profit Rs.600.8 billion) during the period 2007-12 in augmentation of refining and pipeline capacities.5 crore by the late 60's. During the first 45 days of deregulation. Indian Oil commissioned India's first product pipeline.100 bulk consumer pumps are also in operation for the convenience of large consumers. agricultural and marine sectors.818 MMT of oil per year.032 million kilolitres. Indian Oil believed it was well positioned for future growth and prosperity. With demand for petroleum products in India projected to grow from 148 million metric tons in 2006 to 368 million metric tons by 2025.petroleum industry went into effect. Indian Oil reaches precious petroleum products to millions of people everyday through a countrywide network of about 34. 43. the company has grown from strength to strength and for the fiscal 2007. 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. From then on. and exported 3.33 million tones of petroleum products. Indian Oil achieved sales of 10 million kilolitres with a turnover of Rs. the Indian Oil group sold 59.25 billion. and industrial. This 435-Km pipeline connecting Guwahati Refinery to different installations was designed to carry about 0. a signal that the India's largest oil refiner would indeed face challenges as a result of the changes.700 markets through a network of about 5. About 7. state transport undertakings. Indian Oil operates the largest and the widest network of petrol & diesel stations in the country.000 sales points. including 1. Indian Oil lost Rs7. Nevertheless. Project Report on Profile Of IOCL 6 . expansion of marketing infrastructure and product quality up gradation as well as in integration and diversification projects 2. They are backed for supplies by 166 bulk storage terminals and depots. The Corporation also enjoys a dominant share of the bulk consumer business. From a small beginning with a sale of 0. It reaches Indane cooking gas to the doorsteps of over 50 million households in nearly 2. in 1965. including that of railways. Indian Oil is investing Rs. private airlines and the Indian Defense Services. 22.2 Network beyond Compare As the flagship national oil company in the downstream sector.29 million tones of petroleum products. As a result.393 crore (US $10. ensuring products and inventory at their doorstep.Siliguri pipeline. the company faced increased competition from large international firms as well as new domestic entrants to the market. 101 aviation fuel stations and 89 Indane (LPG’s) bottling plants.74 million tones of natural gas. meeting the fuel needs of domestic and international flag carriers. the Guwahati . numbering over 17.000 Indane distributors Indian Oil's ISO-9002 certified Aviation Service commands over 62% market share in aviation fuel business.

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

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. and a net profit of Rs. Indian Oil has also set up the Indian Oil Foundation (IOF) as a non-profit trust to protect.5. 2.000 crore in state-of-the-art technologies at its refineries for production of green fuels meeting global standards. (established in August 1958) with it.1 Company in the prestigious Fortune ‘Global 500’ listing of the world’s largest corporates.18 crore and sales of 1. the highest–ever for an Indian company. 2. Indian Oil today accounts for nearly half of India’s petroleum consumption. 285. health and environment protection high on its corporate agenda. was renamed Indian Oil Corporation Ltd.1st September 2009. 45. safe work places and enrichment of the quality of life of its employees. Indian Oil has since grown over 3000 times with a sales turnover of Rs. 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. currently at the 116th position. Indian Oil has invested close to Rs. 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.38 million tones valued at Rs. touch every heart and fuel a billion dreams. It is also the 18th largest petroleum company in the world.337 crore. on 1st September 1964 following the merger of Indian Refineries Ltd. so as to ensure sustainable development. 2.000 sales points. Indian Oil Corporation Ltd. (Indian Oil) is celebrating its Golden Jubilee during 30th June . Established as an oil marketing entity on 30th June 1959. some of which are already part of the Corporation’s Vision and Mission statements.950 crore for 2008-09. Indian Oil Company Ltd. reaching precious petroleum products to millions of people everyday through a countrywide network of around 35. preserve and promote national heritage monuments. The integrated refining & marketing entity has since grown into the country’s largest commercial enterprise and India’s No. With safety. customers and the community.uninterrupted supply of petroleum products and contributing to relief and rehabilitation measures in cash and kind. Indian Oil is committed to conducting business with a strong environment conscience. 7. 78 crore in the year 1965. They are backed for supplies by 167 bulk storage terminals and depots.5 “50 Golden Years in the Service of the Nation” India’s flagship national oil company and downstream petroleum major. As part of its environment-protection initiatives. 101 Project Report on Profile Of IOCL 8 .

including 1. 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. accounting for 34% of national refining capacity. Set up in 1972. In fact. the Corporation for the first time extended reservation in award of retail outlet dealerships to war widows. In-house capabilities have enabled the Corporation undertake all pipeline projects on its own and even offer turnkey expertise in techno-economic feasibility studies. Besides its pioneering work in lubricants formulation. maintenance and consultancy services.5. The Indian Oil Group of companies owns and operates 10 of India’s 20 refineries with a combined capacity of over 60 MMTPA. This was proved beyond doubt during the 1965 war. After the war. Projects under execution will take the capacity further to 80 MMTPA by the year 2011-12. despite shelling of its depots at Leh and Kargil. It has over 214 active patents to its credit. after excluding EOU refineries. in 1963. including high-sulphur types. refinery processes. Another opportunity to show its mettle in times of national emergencies came Indian Oil’s way during the1971 war. the Centre is also the nodal agency of the Indian hydrocarbon sector for ushering in Hydrogen fuel into the country.000 km more by the year 2012. the Srinagar depot was one of the first bulk storage facilities set up by the Corporation.7 million tones of natural gas. the Corporation crossed 10. pipeline transportation and alternative fuels such as ethanol-blended petrol and bio-diesel. 2. Indian Oil's R&D Centre has blossomed into a world-class institution and Asia's finest. disabled Defense personnel. including polymers. and alternative energy sources. during the war for liberation of Bangladesh.2 Battle Spurs As a veteran IOCian put it once. Its current R&D focus is on the future business needs of Indian Oil in the areas of petrochemicals. In fact. and continues to honor this tradition even now. Besides setting up state-of-the-art facilities to raise product quality to global standards. in November 1965. As a pioneer in lying of cross-country crude oil and product pipelines. when Indian Oil People maintained the vital supply of petroleum products to the armed forces with grit and determination. Plans are under execution to add about 4. Indian Oil has been genetically coded to serve the Defense services.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. 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. At the time of Operation Vijay at Kargil in 1999. in March 1972. design and detailed engineering. Indian Oil maintained petroleum supplies in the war zone and stood by the families of the war heroes later. project execution. For the year 2008-09. Indian Oil even arranged for crude oil supplies to the Chittagong Refinery. freedom fighters. Indian Oil sold 62. including 113 international patents. etc..aviation fuel stations and 89 Indane LPG bottling plants. operations. Project Report on Profile Of IOCL 9 .6 million tones of petroleum products.

besides auto fuels and kerosene. Large format outlets on highways cater to the needs of motorists. New generation branded transportation fuels with multifunctional additives are now available in major markets. agricultural and marine sectors. 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. Over the years. tractor engine oils and pump set oils. laying pipelines. interventions like retail automation. About 600 such Kendra are being added to the Corporation’s marketing network every year.3 Marketing Innovations Having set up Its first petrol & diesel station (retail outlet) at Kochi in October 1962. The Haldia Refinery was set up in 1975. Project Report on Profile Of IOCL 10 . Indian Oil has also launched several branded products.550 specially formatted Kisan Seva Kendra outlets set up across the country meet the diverse needs of the rural populace. Its ISO9002 certified Aviation Service commands over 63% market share in aviation fuel business. marine bunkering. Mathura Refinery in 1982 and Panipat Refinery in 1998. exclusive XTRACARE outlets unveiled in select urban and semi-urban markets offer a range of value-added services to enhance customer delight and loyalty. offering a variety of products and services such as seeds. 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. SERVOXpress has been launched recently as a one-stop shop for autocare services. etc. medicines. Indian Oil also enjoys a dominant share of the bulk consumer business. private airlines and the Indian Defense Services. fertilizers. state transport undertakings. These MPDCs served as one-stop convenience shops. Indian Oil plunged into frenetic activity with newfound confidence – setting up refineries. As part of customer segmentation. and were the harbingers of the modern Kisan Seva Kendra (KSK) successfully introduced by Indian Oil in 2006. vehicle tracking and marker systems have been introduced to ensure quality and quantity of petroleum products.Having proved its mettle in the 1965 war. farm equipment. including that of railways. Indian Oil currently operates the country’s largest network of retail outlets numbering over 18. meeting the fuel needs of domestic and international flag carriers. with multiple facilities such as food courts. first aid. over 2. pesticides.5. To safeguard the interest of the valuable customers. The Corporation is setting up another grassroots refinery at Paradip in Orissa. As on date. entering new businesses like bitumen. for commissioning by the year 2012. spare parts shops. especially for farmers. building storage terminals and aviation fuel stations. rest rooms and dormitories. Initiatives for cashless transactions for customer convenience through co-brand credit cards and fleet cards have met with great success. customer-focused specialty products and customer rewards programmes. 278 with focus on customer convenience. spare parts for trucks and tractors. 2. and appointing dealers and distributors across the country. and industrial.

000 Indane distributors. while a Naphtha Cracker with a capacity of 800.000 tones) for polyester intermediates is already in operation at Panipat. The Corporation’s in-house IndMax process is aimed at enhancing LPG yield from crude oil refining. Indian Oil has bagged eight oil & gas blocks and two Coal Bed Methane blocks under NELP (New Exploration Licensing Policy) rounds in India. A technology innovation has been initiated to reach LNG (Liquefied Natural Gas) directly to Project Report on Profile Of IOCL 11 . like mounded storage and 19-kg cylinders for bulk customers. Introduction of the clean and efficient LPG as cooking gas ushered in a revolution in millions of households. with product sourced from its Barauni Refinery.2.53. Several innovations were introduced in LPG marketing from time to time.5 New Businesses In pursuit of its Corporate Vision and to achieve the next level of growth. Through the world’s largest single-train Linear Alkyl Benzene (LAB) plant with an annual capacity of 1. Farsi Exploration Block in Iran.upstream into oil exploration & production (E&P) and downstream into petrochemicals . 30. equipped with downstream polymer units is also coming up at Panipat.5. It has also acquired participating interest in two onshore blocks in Assam and Arunachal Pradesh.000 tones.000 tones of ethylene per annum.63. 20.700 markets through a network of about 5.3. besides globalization of its downstream operations. Indian Oil is envisaging Rs. the Corporation has already captured a significant market share of LAB in India. mostly in upcountry locations for quicker turnaround of cylinders. an onland block in Nigeria and two onshore blocks in Yemen. 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 exports. PTA – 5. reticulated supplies for housing complexes and 5-kg cylinders for customers in inaccessible and hilly terrain. at Kolkata in October 1965. Mauritius. A world-scale Paraxylene/Purified Terephthalic Acid plant (annual capacities: PX . This includes customers in Andaman & Nicobar and Lakshadweep islands. Indian Oil undertook massive augmentation of LPG storage and distribution facilities across the country in 1983. In petrochemicals.. Overseas ventures of the Corporation include two blocks in Sirte Basin and Areas 95/96 in Ghadames basin of Libya. – a special purpose vehicle for acquisition of overseas E&P assets – in Port Louis. Indian Oil is targeting sale of 2 million tones in 2008-09. onshore farmin arrangements in Gabon.5. in consortium with other companies. Indane cooking gas today reaches the doorsteps of over 53 million households in nearly 2.4 Kitchen Revolution Indane was the first branded product from Indian Oil to hit the market. Encouraged by customer response and to ensure dedicated service. In natural gas business.4 billion) investment by the year 2011-12. The process continues even today with the setting up of 89 Indane bottling plants. 2.000 crore (US$ 7. In E&P. Indian Oil is currently forging ahead on a well laid-out road map through vertical integration . in consortium with OIL. Indian Oil has incorporated Ind-OIL Overseas Ltd.and diversification into natural gas marketing.000 tones set up at its Gujarat Refinery.

the doorstep of bulk consumers in cryogenic containers for industrial as well as captive power applications. leading to the formation of a larger and more formidable marketing network.5. Mauritius (2004) and the United Arab Emirates (2006). terminalling services. besides an oil terminal and a lube blending plant at Trincomalee. specialty lubricants and additives. (CPCL) and Bongaigaon Refinery & Petrochemicals Ltd. Was launched as a fully-owned R&D subsidiary in the year 2003 to market the Corporation’s intellectual property. (BRPL). Indian Oil has set up three overseas subsidiaries – in Sri Lanka (2003). Indian Oil acquired the Government stake and management control of stand-alone refiners Chennai Petroleum Corporation Ltd. etc. An LNG import terminal is proposed to be set up at Ennore near Chennai.6 Group Synergy As part of inorganic growth through mergers and acquisitions. Subsequently. Indian Oil (Mauritius) Ltd. has an overall market share of nearly 20%. substantially enhancing group refining capacity. city gas marketing. Indian Oil acquired IBP in the year 2002 and seamlessly merged it with the parent company in 2007. capacity expansion of CPCL and laying of the 526-km Chennai-TrichyMadurai product pipeline helped further strengthen Indian Oil’s marketing in South India. Indian Oil has eight active joint ventures in operation with reputed Indian and overseas partners in the areas of aviation refueling. In addition. In the year 2001. operates about 150 petrol & diesel stations in the island nation. Indian Oil has maintained its position as India's flagship national oil company. Africa and CIS countries. Project Report on Profile Of IOCL 12 . City gas distribution projects are in the pipeline in partnership with other companies. IOC Middle East FZE oversees blending of SERVO lubricants and marketing of petroleum products and lubricants in the Middle East. LPG and LNG imports and storage. 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.5. and commands a 32% market share in aviation fuelling business in Mauritius. Similarly. the refinery operations and marketing activities of Assam Oil Company were vested in Indian Oil in October 1981. 2. operates a modern petroleum bulk storage terminal at Mer Rouge port. Lanka IOC Ltd. 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. 2. Indian Oil Technologies Ltd.7 Future Plans In spite of deregulation of the oil sector and stiff competition from private players. 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. and it became the Assam Oil Division of Indian Oil.

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

Indian Refineries Ltd. 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. Project Report on Profile Of IOCL 14 . 1998: The Company’s seventh refinery is commissioned at Panipat. 2002: The Indian petroleum industry is deregulated.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. 1976: The Burmah-Shell and the Caltex refineries are nationalized.2.

and a crowning glory in its Golden Jubilee Year (1959-2009). Project Report on Profile Of IOCL 15 . all made possible by a 35000 . Indian Oil has moved up 11 places. Indian Oil has been consistently improving its position in the elite list published annually by the CNN-Time Warner group magazine. Fortune. 189 in 2004 to 170 in 2005. Hindustan Petroleum (311).7 Indian Oil leads India Inc. Reliance Industries (264). Amongst the petroleum companies in the world.993 billion (excluding excise duties).2. Indian Oil has steadfastly climbed from 226 in the year 2002 to 191 in 2003. 116 in 2008 and now 105 in 2009. Indian Oil’s rank is 20. 135 in 2007. This is the 7th year in succession that Indian Oil has improved its ranking.strong team of Indian Oil People. State Bank of India (363) and Oil & Natural Gas Corporation (402). in Fortune's 'Global 500' listing for 2009 In a befitting acknowledgement of its ever-improving performance. Placed at 105. followed by Tata Steel (258). Bharat Petroleum (289). in the just-released Fortune 'Global 500' list of world's largest companies by sales for the year 2009. In the ‘Global 500' club. 153 in 2006. Fortune magazine has considered Indian Oil’s revenue for the fiscal 2008-09 and has derived the same at US$ 62. Indian Oil has also maintained its leadership status as India's numero uno corporate in the prestigious listing. Indian Oil leads the pack of seven Indian companies appearing in the list that is based on the performance in of the year 2008.

the 'Global 500' has been the premier list of the world's largest companies.3% as compared to Rs.5 million tones of crude oil and petroleum products.47. 2. 2. It is one of the best snapshots of the business world today.1 commercial enterprise and flagship oil major.85.upstream into oil exploration & production (E&P) and downstream into petrochemicals .7 million tones of Gas). Indian Oil notched up another year of sterling performance for fiscal 2008-2009. India's No. Indian Oil’s gross turnover (inclusive of excise duty) for the year 2008-09 reached a new high of Rs. the pipelines network registered the highest-ever operational throughput of 59. 2. besides globalization of its downstream operations. The Corporation also achieved record sales of 62. thus carving a niche for itself in the global arena.Battling odds in a challenging business environment.337 crore up by 15.457 crore in the previous year. Breaching the 10.6 million tones (including 1. with a well laid-out road map through vertical integration . And 2009 is no exception except the bar has been set higher to make it to the list. Indian Oil's leap forward in the oil & gas sector. Project Report on Profile Of IOCL 16 .and diversification into natural gas marketing. represents the growth of the Indian corporate sector as well.000 km mark in length. For the past 15 years. The Profit after Tax was Rs.4 million tones.950 crore. The Corporation's refineries surpassed 100% capacity utilization and clocked the highest ever throughput of 51.

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

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

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

5 MMTPA capacities and the other In Vishakapatnam.5 MMTPA. LPG Bottling Plants. In addition. 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.892Million). 16% Refining & Marketing share in India and a strong market infrastructure.5 million tones in 1984/85 to 13. With a capacity of 335 TMT.9.2. (East Coast) with a capacity of 7. HPCL also owns and operates the largest Lube Refinery in the country producing Lube Base Oils of international standards. This Lube Refinery accounts for over 40% of the India's total Lube Base Oil production. with an annual turnover of over Rs 1. 2687 crores in 1984-85 to an impressive Rs 1. On the financial front. Project Report on Profile Of IOCL 20 . HPCL holds an equity stake of 16.448 crores ($20. Aviation Service Stations. the turnover grew from Rs. The Corporation operates 2 major refineries producing a wide variety of petroleum fuels & specialties. one in Mumbai (West Coast) of 5.95% in Mangalore Refinery & Petrochemicals Limited.03.142 Millions) during FY 2007-08. Corresponding figures for FY 2006-07 are: Rs 91. The refining capacity steadily increased from 5. a state-of-the-art refinery at Mangalore with a capacity of 9 MMTPA.70 million metric tones (MMT) presently.837 Crores in FY 2007-08. The Corporation over the years has moved from strength to strength on all fronts.1 Hindustan Petroleum Corporation (HPCL) HPCL is a Fortune 500 company.03. and Inland Relay Depots & Retail Outlets.837 Crores ($25. HPCL is progressing towards setting up of a refinery in the state of Punjab in the joint sector.

The company hopes to put in place a retail network of 1700 outlets in place over the next 3-4 years. It has a 19% market share in the country in terms of sales. and 24% in HSD.  The Company has the third largest retail outlet and LPG distributor network in the country.13 lakh tones. MRPL is now a subsidiary of ONGC. the company was nationalized by way of acquiring a 100% equity stake in 1976. which has a 71% holding in it. Apart from MRPL. The company along with its subsidiaries owns 15% of the refining capacity and 9% of the product pipelines.2. and a retail market share of 32. Company’s operating margins turned negative and the company made operating losses.  The Company has also adopted innovative marketing strategies such as introducing value added highway retailing among others. made several important new finds off the west coast of India. Some of the key features of BPCL are BPCL is the second largest refining and marketing company in India. Subsequently. with the help of Soviet and other foreign companies. and is also planning to buy out the balance HPCL stake. mutual funds. ONGC is expanding the scope of its operations to become an integrated player.9. The acquisition of MRPL was in order to facilitate its entry in the downstream industry. the company also is working on plans to enter the marketing and retailing businesses. The company is anticipated to take advantage of its real estate throughout the country for this purpose. In the 1970s. that has been stuck up in the middle of the process along with HPCL. 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.2% in MS. ONGC is also having a mini plant. etc. Indian Oil remained responsible for refining and marketing.2 Bharat Petroleum Corporation (BPCL) BPCL was incorporated in 1952 when the Government entered into a joint venture with Burma Oil and Shell Petroleum. Today. Both companies grew vastly in size and sales volume but. including KRL and NRL. 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. the Oil and Natural Gas Commission of India. 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. despite close links. they remained separate.9. in order to improve its retail sales. but this Project Report on Profile Of IOCL 21 . but subsequently the Government has let go a part of its holding to financial institutions. In line with the other oil refining and marketing companies Bharat Petroleum (BPCL) also ended up in red for the quarter ended Dec 05. and another target for disinvestment. and has now three refineries. Moreover. BPCL is the second largest refining and marketing company in India. ONGC retained control of most of the country's exploration and production capacity. 2.

and constitutes 24% of the country’s refining capacity. on the country’s western coast. Earlier. 18168 crore. The refinery was commissioned in July 1999. The operating margins slipped by 210 basis points to 16. Indian Oil's role as the country's monopoly buyer gave the company an increasingly important role in the economy. depreciation and tax provisions could not bring any respite for the company. Now RIL has plans to set up about 4300 more outlets throughout the country subsequently. the Jamnagar refinery is also the world’s fifth largest refinery at a single place. 2976 crore. While the Soviet Union continued to be an important supplier. Its refinery is a standalone. Its foray into marketing is expected to improve its marketing margins.4%.increased domestic supply was unable to keep up with demand. and it commenced its operations in 2000-01. It is India’s largest standalone refinery. Small reductions in interest. For the quarter ended Dec 05. When international prices rose steeply after the 1973 Arab oil boycott. 2. The company posted just 2% rise in revenues and a 15% fall in reported PAT after the operating margins slipped 210 basis points. Indian Oil also bought Saudi. and has established a retail network of more than 1300 units. India's foreign exchange problems mounted. India became the largest single purchaser of crude on the Dubai spot market. and United Arab Emirate oil. RIL also owns 23% of the product pipelines in the country. and is at Jamnagar. 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 . Additionally. and complete its attempt at downstream integration. which pulled the operating profits down by 10% to Rs. Iraqi. Kuwaiti. RIL had marketing agreements with the oil PSUs till March 2004 to market about 14 million tones of its petroleum products. the largest private Sector Company in India came out with disappointing results for the quarter ended Dec 05. RIL is a private integrated player in India.4 Reliance Industries Limited (RIL) Reliance Petroleum was incorporated in 1991as Reliance Refineries. and has since merged with its parent company RIL. RIL’s sales moved up just 2% to Rs. Reliance Industries (RIL).9. but changed its name to the former in 1993.

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

Project Report on Profile Of IOCL 24 .

Project Report on Profile Of IOCL 25 .

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

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

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

Sarthak Behuria. President in her lucid address said. presented Mr. 2009 at Vigyan Bhawan.E. So to save our future generations the responsibility rests on each citizen of this country to protect. Chairman.2.11 Awards & Accreditations Bongaigaon Refinery bestowed Indira Gandhi The first among Indian Refineries to receive the award Paryavaran Puraskar 2006. E. President of India. citation along with a cash prize was presented to the Chairman. the earth and our future generations will survive. under the aegis of Ministry of Environment & Forests. "As long there are mountains and green trees on this earth. the prestigious Indira Gandhi Paryavaran Puraskar 2006 in the 'Organization' category at a function held on June 5. H. conserve and save the environment. 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 . H. Ms. Pratibha Patil. New Delhi. A silver lotus trophy." She added that our former Prime Minister Mrs.

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

12 ORGANIZATIONAL CHART of IOCL IOCL PIPELINE DIVISION REFINERY DIVISION MARKETING DIVISION ASSAM OIL DIVISION NORTHERN REGION EASTERN REGION SOUTHERN REGION WESTERN REGION UPSO RSO PBSO DSO Here:UPSO.Rajasthan State Office PBSO.Uttar Pradesh State Office RSO.Punjab State Office DSO.2.Delhi State Office Project Report on Profile Of IOCL 31 .

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

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

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

With over 42% market share and 450 grades. Assam.Chapter. with one of the largest ranges of automotive and industrial lubricants. i. Compact 5 kg Indane cylinders were launched in 75 rural and hilly markets of 11 states. Madhya Pradesh and Tamil Nadu. Punjab.4 Products & Strategy 4. 2) Indane Indian Oil reaches Indane brand cooking gas to the doorsteps of over 35 million households in over 2.1 Products Flagships Brands 1) Servo Indian Oil's SERVO is the largest selling lubricant brand in India. Developed exclusively at Indian Oil's world-class R&D Centre at Faridabad. The Corporation’s 82 LPG plants bottle about 3.000 distributors. the country's leading SERVO brand lubricants from Indian Oil are sold through over 8. Uttar Pradesh. Himachal Pradesh.100 Indian Oil petrol/diesel stations. there is a SERVO lubricant for virtually every single application.000 markets through the country's largest network of over 4. Orissa. over 1. West Bengal. with plans to introduce them in 500 markets in rural areas.e.300 SERVO Shops and a countrywide network of bazaar traders. Arunachal Pradesh.380 thousand tones of LPG per annum. Meghalaya. Project Report on Profile Of IOCL 35 . J & K.

This alternative fuel is a good business proposition in the long term. 24. In fact. marks a new beginning for Indian Oil and its customers. The wing’s foreign exchange earnings during the year 2008-09 touched Rs. and XtraMile to 1050 cities and 2000 petrol and diesel stations by the end of the financial year 2008 – 2009. meets the fuel and lubricants needs of domestic and international flag carriers.3) Premium Fuel The launch of premium fuels . Project Report on Profile Of IOCL 36 . Indian Oil refuels over 900 aircrafts. The maiden launch of these branded fuels took place in Delhi on Sept. which is round the clock. and Indian Oil intends to further expand its marketing in a big way. with 68% market share. 5) Auto Gas Auto gas (LPG) has been introduced in Hyderabad. Defense Services and private aircraft operators through 93 aviation fuelling stations. the refueling never stops and neither does our customer service. Subsequently. Between one sunrise and the next. Bangalore and Mumbai markets. 4) Aviation Service Indian Oil’s ISO-9002 certified Aviation Service.XtraPremium and XtraMile (originally IOC Premium and Diesel Super respectively). XtraPremium is. 1015 crore. in fact. the only petrol in India with 91 Octane and doped with Multifunctional Additives. 2002. XtraPremium sales have been extended to 315 cities and 950 petrol & diesel stations.

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

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

Panipat. Guwahati.at Digboi. Mathura.50 million metric tones per annum (MMTPA) or 950 thousand barrels per day (bpd). Haldia. Koyali. Barauni.4.1 Refineries Indian Oil controls 10 of India's 18 refineries .” Project Report on Profile Of IOCL 39 . Chennai.1. “Indian Oil accounts for 41% of India's total refining capacity.with a current combined rated capacity of 47. Narimanam and Bongaigaon .

5 MMTPA since 1901.5 MMTPA. is India's oldest refinery and was commissioned in 1901.5 MMTPA) Project Report on Profile Of IOCL 40 .95 MMTPA). situated 136 km downstream of Kolkata in the Purba Medinipur (East Midnapore) district.Refineries under IOCL • Digboi Refinery. Barauni Refinery. It also houses the first hydrocracking unit of the country. the first public sector refinery of the country. was built in collaboration with Russia and Romania.65 MMTPA. the capacity of Mathura refinery was increased to 7.5 MMTPA. the first Prime Minister of India.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. in Upper Assam. The refinery was commissioned in 1965. • • • • • • Subsidiary refineries — Bongaigaon Refinery (2. Originally a part of Assam Oil Company. Haldia Refinery is the only coastal refinery of the Corporation.70 MMTPA. Modernization project of this refinery has been completed and the refinery now has an increased capacity of 0. It was commissioned in 1964 with a capacity of 1 MMTPA. Jawaharlal Nehru. in Bihar. Chennai Petroleum (9. it became part of Indian Oil in 1981. Its present capacity is 13. Gujarat Refinery. was built with Romanian collaboration and was inaugurated by Late Pt. Guwahati Refinery. is Indian Oil’s largest refinery. Panipat Refinery is the seventh refinery of Indian Oil. Panipat Refinery has doubled its refining capacity from 6 MMT/yr to 12 MMTPA with the commissioning of its Expansion Project. which has since been increased to 5. It was commissioned in 1975 with a capacity of 2. The original refinery with 6 MMTPA capacities was built and commissioned in 1998. Located strategically between the historic cities of Delhi and Agra. Its original refining capacity had been 0. at Koyali in Gujarat in Western India.0 MMTPA. on 1 January 1962. Its capacity today is 6 MMTPA.

the product pipelines achieved a 10.45 MMTPA.4.” As the backbone of Indian Oil’s refining and marketing operations. Compared to the previous year. Project Report on Profile Of IOCL 41 .27 million tones while the crude oil pipelines registered a 10. 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.54% growth at 35.000 km. During the year. with a combined capacity of 43. 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 9.2 Pipelines of IOCL Indian Oil owns and operates India's largest network of cross-country crude oil and product pipelines of 7. “Indian Oil owns & operates 76% of India's downstream pipeline network.85 million tones.1.12 million tones during the year.45% increase in throughput at 21.300 km pipelines network registered the highest ever operational throughput of 57.

aviation fuel stations.4. inland depots. From the icy heights of the Himalayas to the sun-soaked shores of Kerala. “Indian Oil caters to over 53% of India's petroleum consumption. well spread out marketing infrastructure comprising 182 bulk storage terminals. Its ubiquitous petrol/diesel stations are located across different terrains and regions of the Indian sub-continent. is a stand-alone marketing company with a nationwide retail network of over 1900 sales points. The countrywide marketing operations are coordinated by 16 State Offices and over 100 decentralized administrative offices Project Report on Profile Of IOCL 42 .000 marketing touch points. installations and depots.1. Indian Oil’s vast distribution network of over 22. Indane (LPG) distributorships.000 sales points ensures that essential petroleum products reach the customer at the "right place and right time". Indian Oil touches every customer's heart by keeping the vital oil supply line operating relentlessly in every nook and corner of India. from Kutch on India's western tip to Kohima in the verdant North East. IBP Co. Indian Oil's vast marketing infrastructure of petrol/diesel stations. in every part'. with over 35. SERVO lubricants & greases outlets and large volume consumer pumps are backed by bulk storage terminals and installations.” Indian Oil has one of the largest petroleum marketing and distribution networks in Asia. Ltd. Indian Oil is truly 'in every heart. Its subsidiary. 92 aviation fuel stations and 78 LPG bottling plants.3 Marketing Indian Oil’s countrywide network of over 22. LPG bottling plants and lube blending plants amongst others.000 retail sales points is backed for supplies by its extensive.

4.2 STRATEGY 4.1 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.

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

4.  Company should go for independent Oil block acquisition in future after attaining sufficient experience in that area.2 Suggested Strategy for 2012  Blended fuel – brand repositioning has to be done.Indian Government might reduce its share in IOCL in order to streamline fund raising and compete globally. ♦ 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. solar power expansion will increase in a large scale and bio-fuel plantation will be on increased scaled.(up to 49% allowed in refining sector). 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.2.  India 70% unexplored sedimentary blocks provide a potential opportunity for the company for diversification  Global competitiveness-With Governments relaxation in FDI norms. Project Report on Profile Of IOCL 45 .

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

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

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

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

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

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. 250. Project Report on Profile Of IOCL 51 . 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. Sanganer and Rewari. Chennai) in Tamil Nadu to Banglore in Karnataka Brief Description: The pipeline would ensure uninterrupted. regular and economical transportation of petroleum products to Bangalore-fed areas in a cost-effective manner. Kot.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. 232.74 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. 5) DADRI-PANIPAT R-LNG SPUR PIPELINE Project Cost: Rs. 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. 204.

186. 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. 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.7) PANIPAT-JALANDHAR LPG PIPELINE Project Cost: Rs.

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

and can introduce any new products. The list is given below. o The major weakness for the company is the R&D. as compared to some major foreign player is another weakness for the company.2 Weakness:The company is the market leader in the industry. o The technological drawback.1.3 Opportunity: The IOCL has much opportunity in the present market conditions. by implying many more schemes in the range of XTRAPOWER AND XTRAREWARD. o The petrochemical product development technology is another weakness for the company. of refineries in India. It is already involves in E&P but only in a very limited scale. This is because the petroleum products are a need for everyone and still contain a lot of scope for customization.1. The company starts working on it. o The Company can make the buying process easier for the customers. but still it has many weaknesses. EXTERNAL ENVIRONMENT 5. Project Report on Profile Of IOCL 54 . it can very easily go for extension at any point of time. so that it will be an independent player and it will also support its aviation fuel supply. The various opportunities are listed below. which will get support from its huge market network. o The Company has a great scope in E&P. of out lets and also the maximum no.5. o Since the company has the maximum no. o The Company can think over the issue to build its own pipelines.

o In future the market will welcome more private players. The list of threats is given below. It is the biggest problem because the maximum part of their crude is been imported. some time had operated in loss also. o If the Govt. the private player can seriously harm the market share of IOCL.1. Policies allow the private players to set their own price. Project Report on Profile Of IOCL 55 . which will eat up its market share.4 Threats: Since the company is the market leader in the field. so faces maximum threats from other players and many other issues. because the company cannot fix its price and so.5. o The crude oil supply is also a big issue in front of the company. o The foreign players with more advanced technology are the biggest treat for the company.

2.5 Natural environment  Increased emphasis on environmental policies by Govt.1 Political and legal environment  Prices governed by Mo.130PNG  Regulator is PNGRB  Geo political tensions 5.  Mission of the company.2.2.63 mb/day oil consumption  First reason for the Indian trade deficit 5.2.5.2.“to develop environmental friendly products” Project Report on Profile Of IOCL 56 .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 5.0.2 PEST ANALYSIS 5.3 Socio cultural environment  70% of India lives in villages  Customer psychology is also different for different regions 5.2 Economic environment  Projected GDP growth rate of 7%  Recent high inflation attributed to spike in crude oil price  2.

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

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

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

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