Business Model

1. 2. 3. 4. Employees: Workers for ONGC Customers: People who buy ONGCs oil products Suppliers: They supply drilling equipment and spare parts to ONGC Dealers Individual or firm that buys goods from ONGC for wholesale and/or retail reselling

Employees
The company had 32,923 employees on 31 March 2013, out of which two thousands were women (6.3%) and 143 were employees with disabilities (0.43%). The attrition rate was 0.42%. The Company cares for each & every employee and has in-built systems to recognize & reward them periodically. Motivation plays an important role in HR Development. In order to keep its employees motivated the company has incorporated schemes such as Reward and Recognition scheme, Grievance Handling Scheme and Suggestion Scheme Incentive Schemes to Enhance Productivity 1. Productivity Honorarium Scheme 2. Job Incentive 3. Quarterly Incentive 4. Reserve Establishment Honorarium 5. Roll out of Succession Planning Model for identified key positions 6. Group Incentives for cohesive team working, with a view to enhance productivity Functions Of H.R.Department(1)Establishment section (2)Estate section (3)Land acquisition section (4)General administration section (5)Training & Development section (6)Performance Appraisal Reports section (7)Official Language section (8)Industrial Relation section (9)Disciplinary &applied section

(10)Senior citizen section (11)Loans &Advance section (12)Central Registry Management (13)Legal Department Revenue streams Sales of oil and gas: ONGC is the largest oil and gas extraction company in India. ONGC group's turnover during 2011-12 has been Rs. 150,185 Crore with net profit of Rs. 28,144 Crore. ONGC paid the highest-ever dividend of Rs. 8,342 Crore. The Net Worth of ONGC Group of companies is Rs. 135,266 Crore. Revenue strategic tie ups: ONGC has tied up with several companies like BPCL to provide with crude oil and also act as distribution partners. Piped Natural Gas Natural gas is piped through an online-supply system from the gas fields to the consumers through a network of pipes. For instance, the Hazira-BijaipurJagdishpur (HBJ) pipeline of Gas Authority of India Ltd supplies gas to New Delhi. The backbone of the Piped Natural Gas (PNG) in New Delhi is the main feeder pipeline that forms a loop around the city. The pressure of the gas in this pipeline is at 19 bar. From the feeder pipeline is drawn main steel pipeline and the pressure in this pipelines is reduced to 4 bar through direct regulator stations (DRS). The last mile distribution up to the customers premises is done through medium density polyethylene (MDPE) network, which is laid at a depth of 1 meter and consists of pipeline with sizes ranging from 180 mm to 20 mm. From the MDPE pipeline is tapped the service pipeline through a fitting known as the polyethylene (PE) to galvanized iron (GI) adaptor. The galvanized iron pipeline is connected through contraptions such as pressure regulator, isolation valve, and a meter to the application device. The pressure regulator helps maintain the pressure in the pipeline at the point of application - reduces the pressure from 4 bar to 21 mbar for domestic purpose and upto 300 mbar or 2 bar for commercial purpose. City Gas Distribution Project is divided into two parts : PNG : Directly supplying gas through pipeline to consumers such as domestic, commercial and industrial units : CNG: To compress the gas to 250 bar and to fill in the CNG cylinders installed in the vehicles through CNG dispensers.

ONGC has also attempted Coal Bed Methane (CBM) and Underground Coal Gasification (UCG). CBM production commenced in 2006-07 and UCG in 2008-09. ONGC is also looking at Gas Hydrates.

Expense streams Exploration of new oil fields and basins Every year ONGC spends heavily on exploration of new oil and gas fields. Plant and Machinery maintenance cost: Every year ONGC incurs a major portion of their cost in the maintenance of its Plant & Machinery situated at various sites. Taxes: ONGC is among the top three income-tax payers in the country after SEBI and Reliance. The advance tax paid by ONGC this year was 1062 cr. Operation and distribution cost: ONGCs operation and distribution cost in 2010 alone was about 29,150 cr. Thus cost management is one of the prime concern of ONGC today as its average cost per barrel is more than many countries like US.

Management Policy: