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FACULTY GUIDE: Mr. Suryakant Mishra COMPANY GUIDE: Mr. Simitbinayak Endow SUBMITTED BY: Shakeel Damani. ENR. NO. 8NBBB083
OVERVIEW OF OIL INDUSTRY COMPANY PROFILE PRODUCTS SERVICE SWOT SIP TOPIC INTRO
ACHIEVEMENTS AND FINDINGS CONCLUSIONS/LEARNINGS
Overview of oil industry
The petroleum industry includes the global processes of exploration, extraction, refining, transporting (often by oil tankers and pipelines), and marketing petroleum products. The largest volume products of the industry are fuel oil and gasoline (petrol). Petroleum is also the raw material for many chemical products, including pharmaceuticals, solvents, fertilizers, pesticides, and plastics. The industry is usually divided into three major components: upstream, midstream and downstream. Midstream operations are usually included in the downstream category. Petroleum is vital to many industries, and is of importance to the maintenance of industrialized civilization itself, and thus is a critical concern for many nations. Oil accounts for a large percentage of the world’s energy consumption, ranging from a low of 32% for Europe and Asia, up to a high of 53% for the Middle East. Other geographic regions’ consumption patterns are as follows: South and Central America (44%), Africa (41%), and North America (40%). The world consumes 30 billion barrels (4.8 km³) of oil per year, with developed nations being the largest consumers. 24% of the oil produced in 2004 was consumed in the United States. The production, distribution, refining, and retailing of petroleum taken as a whole represents the world's largest industry in terms of dollar value. The petroleum industry contains some of the world’s largest companies and has a strong influence on important global
geopolitical developments. Economic growth, behaviour of the OPEC countries, export of crude oil by republics of the former Soviet Union, and increased environmental concerns and regulations are some of the important drivers in this industry. The petroleum industry is vulnerable to supply and demand imbalances. Prices have fluctuated from $4 to $40 in the past. In India, the petroleum industry is still regulated though the government is slowly but surely liberalizing the industry. Almost 95 percent of petroleum products in India are controlled, the exceptions being lubricants, LPG, toluene and benzene. The Oil Co-ordination Committee (OCC), a central government body is responsible for important decisions regarding investments, location, production, and distribution and pricing of petroleum products. By allowing private companies to market some of the products, and by rationalizing the import tariffs, the government hopes to pave the way for a free market in the oil industry in a gradual manner.
The controls of the past have significantly affected the structure of the Indian petroleum industry. While the global trend is of integrated oil companies with a presence in all the sectors viz. exploration, refining, marketing and even manufacture of downstream products, presence of Indian companies is typically restricted either to the upstream or to the downstream sectors. The oil sector is currently dominated by the public sector. But the private sector is poised for an increased role owing to the large number of projects on the anvil. In India, demand for petroleum products is expected to grow at 7 percent till 2003, compared to the world average of 2 percent. Till 1996, the oil sector in India was a predominantly utility industry sector whose earnings were not prone to global price-volume fluctuations. With the ongoing process of decontrol, pricing of some petro-products such as diesel has been linked to international prices.
difficult terrains and harsh climatic conditions. The prevailing APM (administered price mechanism) will be fully dismantled. IndianOil has successfully combined its corporate social responsibility agenda with its business offerings. INDIA INSPIRED As a leading public sector enterprise of India. the sector is expected to be de-regulated completely. The Corporation takes pride in its continuous investments in innovative technologies and solutions for sustainable energy flow and economic growth and in developing techno-economically viable and environment-friendly products & services for the benefit of its consumers. MISSION "…to help enrich the quality of life of the community and preserve ecological balance and heritage through a strong environment conscience.By April 2002. traversing a diversity of cultures." VISION . COMPANY PROFILE INDIAN OIL. meeting the energy needs of millions of people everyday across the length and breadth of the country.
It is also tha 18th largest petroleum company in the world. FUTURE PLANS IndianOil is currently forging ahead on a well laid-out road map through vertical integration— upstream into oil exploration & . was formed in 1964 with the merger of Indian refineries ltd. Indian oil corporation ltd. DISTINCTION Indian oil corporation ltd. 2.40% refining capacity and 69% downstream sector pipelines capacity in india. Is india’s largest commercial enterprise. These include two refineries of subsidiary Chennai petroleum corporation ltd. with a sales turnover of rs.20 million metric tones per annum. It also owns 10 out of 19 refineries with a combined refining capacity of 60.8 billion) during the period 2007-12 in augmentation of refining and pipeline capacities. at 116th position in 2008. economical and environment-friendly manner. COMPANY FORMATION In the year 1959 as Indian oil company Ltd.393 crore (US $10. meets the vital energy needs of the consumers in an efficient. transnational. 43. 40. spanning about 9. IndianOil is investing Rs. 6963 crore for the year 2007-08.A major diversified. integrated energy company. playing a national role in oil security and public sector. expansion of marketing infrastructure and product quality upgradation as well as in integration and diversification projects.The Corporation's cross-country network of crude oil and product pipelines.300 km and the largest in the country. with national leadership and strong environment conscience. Indian oil is also the highest ranked Indian company in the prestigious fortune ‘global 500’ listing. Indian oil and its subsidiaries account for 49% petroleum products market share.47.479 crore and profits of rs.
63. the Corporation has already captured a significant market share of LAB in India. Thailand.20. Norway and Oman.3. in consortium with Oil India Ltd. IndianOil has incorporated Ind-OIL Overseas Ltd. PTA – 5. while a Naphtha Cracker with a capacity of 800. besides globalisation of its downstream operations.4 billion) investment by the year 2011-12. In natural gas business. – a special purpose vehicle for acquisition of overseas E&P assets – in Port Louis. equipped with downstream polymer units is also coming up at Panipat.000 tonnes of ethylene per annum. onshore farm-in arrangements in Gabon. (OIL). an on land block in Nigeria and two onshore blocks in Yemen. In petrochemicals.production (E&P) and downstream into petrochemicals – and diversification into natural gas marketing. A technology innovation has been initiated to reach LNG (Liquefied Natural Gas) directly to the doorstep of bulk consumers in cryogenic containers for industrial as well as captive power . in consortium with other companies. will strengthen the Corporation’s presence in the sector. to be completed by the year 2011-12. besides exporting the product to Indonesia. IndianOil has bagged eight oil & gas blocks and two Coal Bed Methane blocks under NELP (New Exploration Licencing Policy) rounds in India. 30. A world-scale Paraxylene/Purified Terephthalic Acid plant (annual capacities: PX . Through the world’s largest single-train Linear Alkyl Benzene (LAB) plant with an annual capacity of 1. A refinery-cum-petrochemicals complex at Paradip. IndianOil is envisaging Rs.53. It has also acquired participating interest in two onshore blocks in Assam and Arunachal Pradesh. Overseas ventures of the Corporation include two blocks in Sirte Basin and Areas 95/96 in Ghadames basin of Libya. Turkey. In E&P. IndianOil is targeting sale of 2 million tonnes in 2008-09. Vietnam.000 tonnes) for polyester intermediates is already in operation at Panipat. Farsi Exploration Block in Iran.000 crore (US$ 7. Mauritius.000 tonnes.000 tonnes set up at its Gujarat Refinery.
However. petrochemicals & natural gas and downstream marketing operations abroad.applications. INDIAN OIL. the value of the IndianOil brand is not just limited to its commercial role as an energy provider but straddles the entire value chain of gamut of exploration & production. transportation & marketing. In addition. OPERATION OF IOCL . IndianOil is a national brand owned by over a billion Indians and that is a priceless value. It was also listed as India's 'Most Trusted Brand' in the 'Gasoline' category in a Readers' Digest . 1 brand by UK-based Brand Finance. An LNG import terminal is proposed to be set up at Ennore near Chennai. IndianOil topped The Hindu Businessline's "India's Most Valuable Brands" list. refining. City gas distribution projects are in the pipeline in partnership with other companies.AC Nielsen survey. an independent consultancy that deals with valuation of brands.A NATIONAL BRAND IndianOil has been adjudged India's No.
Lube Processing . The strength of IndianOil springs from its experience of operating the largest number of refineries in India and adapting to a variety of refining processes along the way. IndianOil has gathered a luminous legacy of more than 100 years of accumulated experiences in all areas of petroleum refining by taking into its fold. Delayed Coking. which are in operation in IndianOil refineries include: Atmospheric/Vacuum Distillation. Catalytic Reforming. Hydrocracking.2 million barrels per day -the largest share among refining companies in India. Distillate FCC/Resid FCC. IndianOil controls 10 of India’s 20 refineries. It accounts for 33.2 million metric tonnes per annum (MMTPA) or 1. The basket of technologies.8% share of national refining capacity.REFINING Born from the vision of achieving self-reliance in oil refining and marketing for the nation. The group refining capacity is 60. Hydrogen Generation. the Digboi Refinery commissioned in 1901.
Visbreaking. a number of steps were taken during the year. Major projects under implementation include a 15 MMTPA grassroots refinery at Paradip. Guwahati and Digboi refineries proposed to be completed by the end of 2009. 55. IndianOil refineries have an ambitious growth plan with an outlay of about Rs. Panipat Refinery expansion from 12 MMTPA to 15 MMTPA. . Dewaxing. Procedures for commissioning and start-up of individual units and the refinery have been well laid out and enshrined in various customized operating manuals. Wax Hydro finishing. Innovative strategies and knowledge-sharing are the tools available for converting challenges into opportunities for sustained organisational growth. resulting in reduction of the frequency of accidents. Naphtha Cracker and Polymer Complex at Panipat. all IndianOil refineries fully comply with the statutory requirements. On the environment front. bottom upgradation and quality upgradation. Coke Calcining. petrol quality upgradation projects are under implementation at Panipat.Units. Several Clean Development Mechanism projects have also been initiated.000 crore for capacity augmentation. Hydro-Desulphirisation of Kerosene&Gasoil streams. Mathura. Merox Treatment. among others. etc. IndianOil refineries will continue to play a leading role in the downstream hydrocarbon sector for meeting the rising energy needs of our country. Orissa. Barauni. In addition. de-bottlenecking. The Corporation has commissioned several grassroot refineries and modern process units. which are continually updated. With strategies and plans for several valueadded projects in place. To address concerns on safety at the work place. Sulphur recovery.
safe and environment friendly method of transportation for petroleum products and crude oil and are playing a leading role in meeting the demand for petroleum products in India. energy efficient. India being a vast country. Since then IndianOil has mastered the art and technology of pipeline engineering.000 km. . The pipelines transport petroleum products from refineries to demand areas and crude oil from import terminals as well as domestic sources to the inland refineries. the pioneer in cross-country petroleum product pipeline in the Indian sub-continent constructed and commissioned its first petroleum product pipeline.300 crore including LPG and R-LNG pipelines will reach the capacity to 75 million metric tonnes per annum with a network of over 10. IndianOil’s sustained pursuit and implementation of proven safety and environmental management systems have brought rich results. a wide network of pipelines becomes the paramount requirement of transporting petroleum products to interiors from refineries and crude oil to the land locked refineries. Guwahati-Siliguri Pipeline in the year 1964. the petroleum pipelines form a crucial part enabling sustained availability of petroleum products in all parts of the country for economic growth. Commissioning of new projects worth about Rs. Over the last four decades the pipeline network of IndianOil has grown to 10. It is an established fact that pipelines are preferred as a cost effective.000 km with a capacity of about 62 million metric tonnes per year. IndianOil. 2. Economic growth and expansion of infrastructure in India offer opportunities to better utilize the existing pipeline network in addition to expand by constructing new pipelines.PIPELINE In India’s infrastructure.
IndianOil's fuel management system to bulk . Supervisory Control and Data Acquisition (SCADA) and application software expertise are available from project implementation to commissioning including field services. petroleum product and crude oil accounting. operations and maintenance. selection. have set up depots. FUEL MARKETING IndianOil provides a wide range of marketing services and consultancy in fuel handling. Kuwait and Sudan have been undertaken. aviation fuel stations. filling plants. storage and fuel/lube technical services. maintenance and operational support. With a formidable bank of technical and engineering talent. project execution. testing and evaluation of drag reducers. Today IndianOil is well placed to provide seamless services in the entire spectrum of petroleum pipelines covering techno-economic feasibility studies. terminals. pigging procedure development and analysis of pigging data. LPG bottling plants. distribution. quality control. IndianOil is fully equipped to handle small to large-scale infrastructural projects in the petroleum downstream sector anywhere in the country.All operating pipeline units have been accredited with ISO 9000 and ISO 14001 certificates. consultancy services in augmentation and modernization. Our project teams have independently or jointly as a consortium. ocean loss control. operations and maintenance of tank farm and pump stations are other areas of expertise available with IndianOil’s Pipelines Division. operations and maintenance including training in countries like Oman. design and detailed engineering. Ethiopia. amongst others. Tanker handling. etc. Various initiatives in the field of project management. pipelines.
LPG Business (non-fuel alliances). loyalty programs. commercial/reticulated LPG. etc.customers offer customized solutions that deliver least cost supplies keeping in mind usage patterns and inventory levels. The Centre has also developed and introduced many new lubricant products to the Indian market like multigrade railroad oils. Marketing Division is illustrated in this section. Focussed research in the areas of lubricants and grease formulations. Public Utilities and Transportation. Railways. fertiliser. steel. has state-of – the art facilities and has delivered pioneering results in lubricants technology. . Over the past three decades. RESEARCH AND DEVELOPMENT IndianOil's worldclass R&D Centre. A wide network of lubricant and fuel testing laboratories are available at major installations which is further backed by sector-wise expertise in the core sectors of power. IndianOil's supply and distribution network is strategically located across the country linked through a customized supply chain system backed by front offices located in conceivably every single town of consequence. which includes. textile mills. The wide network of services offered by IndianOil. IndianOil R&D Centre has developed over thousands of formulations of lubricating oils and greases responding to the needs of Indian industry and consuming sectors like Defence. Cutting edge systems and processes are designed around one simple belief-to provide valuable customers with an unbeatable edge in their business. established in 1972. total fuel management/ consumer pumps. IndianOil Aviation Service. gas plants. retail business (non-fuel alliances) and SERVO technical services. refining process. pipeline transportation. bio-fuels and fuel-efficient appliances.
tribiological and emission studies. optimization of operating parameters. technology and innovation.fuels. process optimization. and applied metallurgy has won several awards. hydroprocessing. material failure analysis and remaining life assessment and technical services to operating units. IndianOil has launched IndianOil Technology Ltd. evaluation of licensors' process technologies. Material failure analysis and remaining life assessment of refinery equipment and installations is a highly specialized service being provided by the R&D Centre to the refineries of IndianOil as well as other companies. The new subsidiary markets the intellectual properties developed by IndianOil R&D Centre. distillation simulation and modeling. apart from process optimization and catalyst evaluation the accent is on the development of novel technologies aimed at value addition to various refinery streams. The R&D Centre's activities in refining technology are targeted in the areas of fluid catalytic cracking (FCC). crude evaluation. biotechnology. development of novel processes and simulation models. lube processing. resid upgradation. engine evaluation. In FCC. refining processes. IndianOil's R&D Centre is fully equipped to provide technical support to commercial hydrocracker units in the evaluation of feedstocks and catalysts. . With a vision of evolving into a leader as technology provider through excellence in management of knowledge. catalysis. additives. pipeline transportations.
Organizational structure Head Office.IOCL Top Management Regional Office State Management Office Middle Divisional Office/Area Office Junior Management All India Employee strength of IOCL: 35000 Orissa State Employee Strength: 250 (HEIRARCHY) .
) 42.499 6. 39 (55.915 7.08 247.479 2008.09 HY 160./Cr) 4. 08 62.963 (6./Core) 183.172 2006 -07 220.263 Profit After Tax (Rs.FINANCIAL PERFORMANCE 2005 -06 Turnover (Rs.62) .779 2007.632) Earning Per Share (Rs. 90 58.
86:1 1.Debt-Equity Ratio 0.90:1 0.78:1 0.75:1 .
. Swagat(Highway) and Kisan Seva Kendras(Rural). XtraPower Fleet Card. global brand at another level. SERVO Lubricants. our stringent checks are built into operating systems. IndianOil is not only the largest commercial enterprise in the country it is the flagship corporate of the Indian Nation. at every level ensuring the trust of over a billion Indians over the last four decades. IndianOil is widely recognized as India’s dominant energy brand and customers perceive IndianOil as a reliable symbol for high quality products and services. While quality. reliability and service remains the core benefits to our customers. IndianOil Aviation and XtraRewards cash customer loyalty programme.Indane LPG. XtraPremium Branded Petrol. Benchmarking Quality. IndianOil is a heritage and iconic brand at one level and a contemporary. Quantity and Service to world-class standards is a philosophy that IndianOil adheres to so as to ensure that customers get a truly global experience in India. Besides having a dominant market share. IndianOil’s leadership extends to its energy brands . XtraMile Branded Diesel. The Retail Brand template of IOC consists of XtraCare(Urban). Autogas LPG. Besides having a dominant market share. 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.PRODUCTS DETAILS IndianOil is not only the largest commercial enterprise in the country it is the flagship corporate of the Indian Nation. These brands are widely recognized as pioneering brands in the petroleum retail segment. IndianOil is widely recognized as India’s dominant energy brand and customers perceive IndianOil as a reliable symbol for high quality products and services.
It is obtained from natural gas through fractionation and from crude oil through refining. our stringent checks are built into operating systems. abundant and eco-friendly fuel. While quality. global brand at another level.IndianOil is a heritage and iconic brand at one level and a contemporary. IndianOil Aviation Service refuels over 1500 flights – from the bustling metros to the remote airports linking the vast Indian landscape. Between one sunrise and the next. at every level ensuring the trust of over a billion Indians over the last four decades. BITUMEN . It is a mixture of petroleum gases like propane and butane. high octane. INDIANOIL AVIATION SERVICE IndianOil is India's first ISO-9002 certified oil company conforming to stringent global quality requirements of aviation fuel storage & handling.682 ft) to the distant islands of Andaman & Nicobar. reliability and service remains the core benefits to our customers. AUTO GAS The fuel is marketed by IndianOil under the brand name ‘AutoGas’ IndianOil has setup 173 Auto LPG Dispensing Stations (ALDS) covering 82 cities across India. AutoGas (LPG) is a clean. IndianOil Aviation also caters to the fuel requirements of the Indian Defence Services. The higher energy content in this fuel results in a 10% reduction of CO2 emission as compared to MS. IndianOil Aviation Service is a leading aviation fuel solution provider in India and the most-preferred supplier of jet fuel to major international and domestic airlines. besides refueling VVIP flights at all the airports and remote heli-pads/heli-bases across the Indian subcontinent. from the icy heights of Leh (the highest airport in the world at 10.
Haldia and CPCL produce grades Bitumen 80/100. It is available both in packed and in bulk. General uses of Bitumen: For civil engineering works • • • • • • • Constructions of roads. kerosene and diesel. Bitumen 60/70. are removed generally by distillation from suitable crude oil. Mastic floorings for factories and godowns. Bitumen CRMB and Bitumen Emulsion. Dump-proof courses for masonry. Water proofing to prevent water seepage. . Indian standard institutions define Bitumen as a black or dark brown non-crystalline soil or viscous material having adhesive properties derived from petroleum crude either by natural or by refinery processes. Tank foundation. Canal lining to prevent eroding. Battery manufacturers as sealing compound. Joint filling material for mason Industries • • Electrical cables and junction boxes. runways and platforms. IndianOil refineries at Panipat. Mathura.The common binders used in bituminous road constructions are road tars and Bitumen. Koyali. Bitumen has gradually replaced road tar for road construction purposes mainly because of its greater availability as compared to road tars.'Indmul'. It is principally obtained as a residual product in petroleum refineries after higher tractions like gas. petrol.. etc. Bitumen 30/40.
Important characteristics are ignition characteristics. and aromatic hydrocarbons (including napthalenes and alkylbenzenes). and cycloparaffins). IndianOil's tankages are strategically located across the country and are custom-designed to maintain low-cost supplies that can be rapidly transported through a sophisticated supply-chain management system. BULK INDUSTRIAL FUEL In the large volume consumer segment. These customers benefit from IndianOil's efficient sourcing and supplies matched to their usage patterns and inventory. Electrical capacitors. Bituminous grease for lubricating open gears. IndianOil's provides complete Fuel Management Solutions to customers who require fuels in bulk and have dedicated facilities for storage and handling. Printing inks. • • • • • • HIGH SPEED DIESEL Petroleum derived diesel (called as petrodiesel) is a mixture of straight run product (150 °C and 350 °C) with varying amount of selected cracked distillates and is composed of saturated hydrocarbons (primarily paraffins including n . iso . flash point. Water proof papers. .• Paint industries for manufacturing black paints and anti corrosive paints. Ceramic industries. handling at low temperature. Bituminous felts. The Indian Standard governing the properties of diesel fuels is IS 1460:2005 (5th Rev).
thermal power plants. reliability and convenience. IndianOil pioneered the launch of LPG in India in the 1970s and transformed the lives of millions of people with the introduction of the clean.SERVO range of lubricants is available through a network ofSERVOXpress stations. distribution and supply hubs is backed by on-time logistics and round-the-clock aftersales service. Many institutional customers like the railways. MARINE FUELS AND LUBRICANTS IndianOil caters to all types of bunker fuels and lubricants required by various types of vessels operating throughout the world in the shipping industry. In the retailing segment. bazaar outlets and thousands of auto spare parts shops across the country. LPG also led to a substantial improvement in the health of women in rural areas by replacing smoky and unhealthy chullahs with Indane. sustained brand enhancement and new generation packaging is a one-stop shop for complete lubrication solutions in the automotive. state transport undertakings. besides IndianOil petrol stations. The SERVO range includes over 500 lubricants and 1200 formulations encompassing literally every lubricant requirement. SERVO LUBES AND GREASES IndianOil's SERVO range of lubricants reigns as the undisputed market leader in the Indian lubricants market. Known for its cuttingedge technology and high-quality products. The Bunker supplies are made at all major ports of . SERVObacked by IndianOil's pioneering R&D. large corporates and fleet & logistics companies tie-up for long-term contracts backed by IndianOil's comprehensive fuel & lubricants consultancy-a formidable expertise that IndianOil has built over nearly five decades of working with a cross-section of customers from a wide-range of industrial sectors.IndianOil's marketing operations network of storage. industrial and marine segments. It is today a fuel synonymous with safety. steel plants. efficient and safe cooking fuel. textile mills. power plants. INDANE GAS Indane is today one of the largest packed-LPG brands in the world. extensive blending and distribution network.
Gasoline is a complex mixture of relatively volatile hydrocarbons that vary widely in chemical & physical properties and are derived from fractional distillation of crude petroleum with a further treatment mainly in terms of improvement of its octane rating. While IndianOil supplies Furnace Oil (FO). Petrochemicals have been identified as a prime driver of future growth by IndianOil.g. more & more stringent specifications (equivalent to Euro II. New Mangalore. it also supplies bunker fuels to all major shipping and dredging companies of India. Chennai. IndianOil is focusing on increasing its presence in the domestic petrochemicals sector besides the overseas markets through systematic expansion of customer base and innovative supply logistics. Vizag. Tuticorin. Port Blair and Haldia. Cochin. For e. it also offers the entire range of SERVO brand of marine grade lubricants. MS/ GASOLINE In view of the auto fuel policy issued by Govt of India. Taking this into consideration and to enhance its downstream integration. The Corporation is envisaging an investment of . Mumbai. This has led to reduction of environmentally polluting factors in gasolines. Euro IV) are being made applicable for the gasolines being marketed in India. Apart from Indian Navy whose 100% bunker requirement is met by IndianOil. Paradeep. Euro III. Vasco. Spot requirement of different vessels calling at Indian ports are undertaken through nominations received from local shipping agents and international bunker trader/brokers. Light Diesel Oil (LDO) and High Flash High Speed Diesel (HFHSD) meeting the stringent BIS specifications. The hundreds of individual hydrocarbons in gasoline range from c4 to c11. Kandla. XTRA PREMIUM PETRO CHEMICALS India is amongst the fastest growing petrochemicals markets in the world. JNPT.India. Kolkata.
The petroleum products. heavier products like Furnace Oil..000 crore in the petrochemicals business in the next few years. increase in its evaporation rate in domestic burners is achieved by increasing surface area of the oil to be burned and by increasing its temperature. IndianOil refineries also manufacture petroleum products for specific applications.Rs 30. Bitumen. These projects will utilise product streams from the existing refineries of IndianOil. The two types of burners which achieve this fall into two categories namely vaporisers & atomisers. SUPERIOR KEROSENE OIL Kerosenes are distillate fractions of crude oil in the boiling range of 150-250°C. Kerosene is used as a domestic fuel for heating / lighting and also for manufacture of insecticides/herbicides/fungicides to control pest. etc. 'Petrochemicals and Specialties (P&S) Products'. thereby achieving better exploitation of the hydrocarbon value chain. . SPECIAL PRODUCTS Other than the regular petroleum products like light distillates. colour & burning qualities (char value). weeds and fungi. middle distillates. Since kerosene is less volatile than gasoline. These specific applications could be feed stock for chemical industry. produced for specific applications are called. They are treated mainly for reducing aromatic content to increase their smoke point (height of a smokeless flame) and hydrofining to reduce sulphur content and to improve odour. raw material for specific industries and solid fuels. Every petroleum refinery is not designed to produce P&S products but IndianOil's refineries have been planned to make a large portfolio of P&S products.
The Indian Standard governing the properties of kerosene is IS 1459:1974 (2nd Rev). the youngest being as old as about 1 million years. It was formed over millions of years from the remains of tiny aquatic plants and animals that lived in ancient seas due to compression and heating of ancient organic materials over geological time. Crude oil is formed from the preserved remains of prehistoric zooplankton and algae. IndianOil is fully equipped to handle small to large-scale infrastructural projects in the petroleum downstream sector anywhere in the country. distribution.is a remarkably varied substance. The oldest oil-bearing rocks date back to more than 600 million years. IndianOil's fuel management system to bulk . amongst others.as petroleum directly out of the ground is called . filling plants. With a formidable bank of technical and engineering talent. pipelines. storage and fuel/lube technical services. both in its use and composition. LPG bottling plants. Service IOC Services IndianOil provides a wide range of marketing services and consultancy in fuel handling. have set up depots. which have been settled to the sea (or lake) bottom in large quantities under anoxic conditions. Our project teams have independently or jointly as a consortium. CRUDE OIL Crude oil . terminals. aviation fuel stations.
customers offer customized solutions that deliver least cost supplies keeping in mind usage patterns and inventory levels. IndianOil's supply and distribution network is strategically located across the country linked through a customized supply chain system backed by front offices located in conceivably every single town of consequence. . steel. these refineries became subsidiaries of IOC. textile mills. IOC has also acquired equity stakes in CPCL and BRPL. SWOT ANALYSIS INTERNAL ENVIRONMENT Strengths o IOC controls 10 refineries. and in 2001. Cutting edge systems and processes are designed around one simple belief-to provide valuable customers with an unbeatable edge in their business. gas plants. A wide network of lubricant and fuel testing laboratories are available at major installations which is further backed by sector-wise expertise in the core sectors of power. etc. by virtue of which it has a total share of around 40% of India’s overall refining capacity. fertiliser.
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. o Although its refineries are located the interior of the country. and of its own initiative as well. training and consultancy. etc. IOC is also weighing the possibility of entering Indonesia. The company is in talks with Caliak of Turkey to set up a 10 million TPA grassroot refinery with an investment of $2 billion and establish retail business. The total capacity of these product pipelines is 49. and 6492 kerosene/LDO dealers. 8000 LPG distributors. Its network includes 19830 retail outlets. It also has a dominant share in all segments in terms marketing infrastructure. exploration.79 MMT. pipelines.o 58% of IOC’s refining capacity is located in the Northern and Western regions. gas. . and Oman and is presently considering entering Turkey through a JV. which are high demand and high growth areas. thereby strengthening its position in these activities. o By virtue of entering into extensive joint venture agreements. o IOC also acquired management control of the marketing company IBP. the company has a presence in various other related activities such as petroleum storage. petrochemicals. o The company has already entered overseas markets such as Sri Lanka. Maldives. lube additives.
97 MMT to 62. Maldives.5% Share – Over 800 varieties of lubricants • Creating Unique Selling Points in all customer segments • (consumer and retail) through XtraCare Service Stations -Diversified range of core sector customers • Railways • • • • • Power House Fertiliser Plants Defence Aviation Coal . Bangladesh. Dubai. interest in the lubes business in Maldives. Its interests include downstream activities in Sri Lanka. Sri Lanka. and Nepal.o IOC has also started exploring the overseas markets for increasing its scope of operations.61 MMT This is ensured by • Cross country retail network comprising of 17574 outlets ( 1196 outlets commissioned in 2008) • Varied range of products – Maintained market leadership in branded fuels in 2008 XTRAMILE Diesel : 58% Share XTRAPREMIUM Petrol : 45. Oman. among others. etc. Sustained growth in turnover from 57.
by implying many more schemes in the range of XTRAPOWER AND XTRAREWARD. . Opportunity The IOCL has much opportunity in the present market conditions. it can very easily go for extension at any point of time. o Since the company has the maximum no. which will get support from its huge market network. o The company can make the buying process more easy for the customers. The various opportunities are listed below.The growth is insulated from the cyclical demand fluctuations due to diversified customer base. This is because the petroleum products are become a need for everyone and still contains a lot of scope for customization. Of refineries in India. Unique Area of Strength o Wide Network of Cross Country Pipelines o State of Art Research and Development Center o Commercialization of in-house technology o Commissioned India’s first Hydrogen-CNG dispensing station o Only company to have presence in high consumption two of the Refineries North Area Weakness o Difference in quality and price at different franchise outlets all over India in spite of high quality focus by the company. Of out lets and also the maximum no. and can introduce any new products.
which will eat up its market share. o The foreign players with more advanced technology are the biggest threat for the company. o Company have a great scope in E&P. it is the biggest problem because the maximum part of their crude is been imported.o The company can think over the issue to build its own pipelines. so have maximum threats from the other players and many other issues. o The crude oil supply is also a big issue in front of the company. so that it will be a independent player and it will also support its aviation fuel supply. customer preference/usage o bio-fuel vehicles o battery run bikes crude and overheads is a major impact on the price . o o o o o vibrant economy – industrial activity market that is growing emission control norms export market/market overseas untapped rural market Threats Since the company is the market leader in the field . The lists of threats are given below. o Black marketing and making threat in the people . o In future the market will welcome more private players. some time had operate in loss also. It is already involves in E&P but only in a very limited scale. because the company cannot fix its price and so.
Tapping local alliances is another aspect of this project. The cost of acquiring a new customer is always more than retaining an old customer. At the same time. we have to check whether the retail outlets are carrying out the implementation of the loyalty program in the right way. Our task is to promote and sell the XtraRewards Loyalty card to the customers and at the same time garner customer opinions and suggestions about the loyalty program. Objective of the Project: . to be opened for other competitors (as IOCL is PSU) TITLED INTRODUCTION MARKETING AND PROMOTION OF XTRAREWARDS LOYALTY PROGRAM. All of these are compelling reasons that retailers are on a quest for customer loyalty and are increasingly looking at implementing loyalty programs or loyalty cards of some form. In this project. The commercial benefits of loyal customers are well known by the brand managers.o All the Pipelines owned by IOCL. Introduction to the project: In this competition world it becomes very necessary to retain loyal customers. we have been assigned IOC retail outlets which are participating in the XtraRrewards Loyalty program. Loyal customers are also important because they provide the consistency of volume critical for stocking and managing just in time inventory to maintain the consistency of customer demand during crisis which is required to run any retail business.
Loyal customers evangelize the brand by sharing their satisfactory experience with their friends and colleagues.perhaps a year. o To find out prospective alliance partners for the XtraRewards loyalty program. Loyalty programs may offer benefits in a number of different ways. a 20% discount on a single purchase once a customer has spent Rs 2000 at the business. o To obtain customer opinions and suggestions at IOC retail outlets and give recommendations to IOC to improve the implementation of XtraRewards loyalty cards program. Earning customer loyalty goes beyond gaining customer satisfaction. while the secondary goal is to actively cultivate loyalty amongst customers to ensure they continue patronizing the business. Areas covered during project: bhubaneswar LOYALTY PROGRAMS. While some companies do reverse these priorities. Many loyalty programs offer a sustained discount (such as 10%) for a period of time . The primary goal for most loyalty programs is the acquisition of information relating to their customers' spending habits. Loyalty programs are initiated by businesses with two main goals. A great product or service is the starting point for customer loyalty. loyal buying behaviour — behaviour which is potentially of benefit to the firm. Others offer a discount once certain criteria have been met — for example.AN INTRODUCTION: Loyalty programs are structured marketing efforts that reward. perhaps for the life of the business. Still others offer points which may . the above hierarchy holds true for most. and therefore encourage.o To promote and sell “XtraRewards loyalty cards at IOC retail outlets. Great marketers architect loyalty programs from day one.
In the past decade. In these loyalty programs. credit and debit cards. one accrues points by flying on the airline and then 'cash in' the points in exchange for tickets.then be redeemed for products which may or may not be directly related to the business. Additional points can also be earned outside . Loyalty programs at Indian Oil IndianOil's loyalty programs are designed exclusively to benefit customers who have been patronizing the brand for over four decades. Some of the first loyalty programs were instituted by airlines in the 1970s in the form of frequent flyer miles. The loyalty program rewards customers paying by cash. many non-airline businesses have combined their own loyalty programs with those of the airlines. upgrades. XTRAREWARDS Loyalty Program IndianOil XTRAREWARDS is India's first on-line rewards program that seeks to inculcate the habit of redeeming points. Loyalty cards are the most common form of loyalty programs found throughout the world today. or even third-party benefits. Each transaction is confirmed on-line through a charge slip and customers can earn points on fuel/lube purchases at participating IndianOil Retail Outlets. offering frequent flyer miles in exchange for everything from telephone usage to purchasing gasoline.
6. Automobile. However. the card holder can also redeem the points to get some exciting gift items from a catalogue. 1. covering prominent FMCG. 75 then he earns 1 point. Customer can also redeem the points against items given in the rewards catalogue. affiliates and outlets of alliance partners with whom Indian oil may have alliance from time to time. Apart from rewarding cash customers. Travel. Entertainment. the customer can earn Xtrareward points (XRPs) on purchase at participating Indian oil retail outlets and enjoy specific benefits at franchisees. The XRPs earned can instantly be redeemed for fuel and servo lubes at participating Indian oil retail outlets. Food. No. 2. Apart from redeeming the accumulated points instantly on fuel / SERVO Lubes at participating Retail Outlets. Point system in Xtrarewards: Sr. the customer has to produce his XTRAREWARD card to earn XRPs. 4. 5. 3. Apparel and Hospitality sectors. the program also rewards customers who pay by credit or debit cards. As a member.the IndianOil network. The redemption on gifts can be registered either from the participating Retail Outlets or from the comfortable confines of one's home through the 24x7 IVRS Help Line (022-2880 9030). The balance amount gets carry forward in next cash transaction. Point system: When customer spends Rs. Product Description Rs 100 worth of fuel Rs 100 worth of petrol + oil mix Rs 100 worth of Xtra Premium Rs 100 worth of Xtra Premium + oil mix Rs 100 worth of Xtra mile Rs 100 worth of diesel XRP’s Required 334 334 334 334 334 334 .
9. . 10. 11. 12. Rs 100 worth of auto LPG Rs 100 worth of CNG 500 ml servo 2T supreme 40 ml servo 2T supreme pouch 60 ml servo 2T supreme pouch 1 litre servo super multi grade 20w-40 500 ml servo kool plus 334 334 234 20 29 460 400 For enhanced security.7. the XtraRewards card transactions are authorized through unique Personal Identification Number (PIN). the card can help track each vehicle's movement across remote corners of the country leading to an improvement in vehicle utilization and route compliance. 8. Moreover. 13.
ACHIEVEMENTS XTRAREWARDS CARDS Weeks 1 2 3 4 5 Weekly targets 25x60=150 0 25x60=150 0 25x60=150 0 125x60=75 00 125x60=75 Weekly achievements 27x60=1620 30x60=2100 30x60=1800 125x60=7500 131x60=7860 % of achieveme nts 108% 120% 120% 100% 105% .
6 7 8 9 10 11 12 00 125x60=75 00 125x60=75 00 125x60=75 00 125x60=75 00 125x60=75 00 125x60=75 00 125x60=75 00 127x60=7620 130x60=7800 146x60=8760 140x60=8400 109x60=6540 78x60=4680 83x60=4980 102% 104% 117% 112% 88% 63% 67% .
ALLIANCE PARTNERS Month 1 2 3 monthly target Two Two Two monthly achievement Nil 1 3 % of achieveme nt Nil 50% 150% DSA RECRUITMENT Weeks 6 7 8 9 10 11 12 Weekly targets 2 2 2 2 2 2 2 Weekly achievements 1 2 2 2 3 2 2 % of achieveme nts 50% 100% 100% 100% 150% 100% 100% .
o Cards which were sold by dealers earlier were not registered with IOCL as a result of which cards started getting blocked. o Booklets are in English.FINDINGS : o XtraRewards scheme is not available at all the retail outlets of Indian oil. The scheme is available in only Bhubaneswar. retail outlets in o Most of the people are not aware regarding the XtraRewards scheme. o There is no dedicated person for collecting the forms. o The card swiping machines are not properly maintained at some places leading to many customer complaints. there is a large backlog of forms. o There are no pamphlets available at pumps. which could give a brief idea about the loyalty program. So. . This could not be understood by all the people. o Pump-attendants are not interested in selling the cards.
Knowing which customer groups are most important to us allows crafting recognition and rewarding strategy that piques their interest. We need to enroll the right customers. we can cultivate high potential customers who currently split their purchases between us and our competitors or reach out to those most at risk of churning. We can recognize the highest value customers to recognize and reward their value to our organization. Positioning of the loyalty program is very critical so that these benefits do not appear to be a just discount under the garb of loyalty this greatly affects the customer retailer relationship and greatly reducing the program to a pure commercial transaction where the customer constantly looks for deals. .CONCLUSION XtraRewards is a step of IOC towards building loyalty among the existing customers. Loyalty program works only when the customer is emotionally attached to the brand.
o For Welcome kit o Application Form as well as information booklet should be in Hindi and oriya. o Motivate pump attendants by giving price to “attendant of the month” which will be the highest card seller of that month. At retail outlets Digital display on retail outlets. o XTRAREWARDS Banners should be put at proper location in the pump o XTRAREWARDS program should be started at all other locations as soon as possible. o Try to know actual reasons for not using the card for longer period of time. o Target new vehicle owner by tie up with the car companies and give XTRAREWARDS card with every new vehicle.RECOMMENDATIONS Ideas to increase & retain customer base o Need more benefits in fuel rather than alliance partners in order to attract other brand’s loyal customers. (i) To communicate with the customers about IOC program & brands and (ii) for advertisement of alliance partners & earning revenue out of it. .
.o Sufficient Pamphlets should be distributed to all pumps & renewal of pamphlets should be done as & when new offers from alliance partners come.
PROMOTIONAL TOOLS USED IN SELLING THE XTRAREWARDS CARD .