ANALYSIS, ACCUMULATION AND COLLECTION OF DATA REGARDING NON-FUEL REVENUE GENERATION AT IOCL RETAIL OUTLETS
A report submitted to IIMT, Greater Noida as a part fulfillment of full time Postgraduate Diploma in Management (Marketing Management)
Director (Academics) Ishan Institute of Management & Technology Greater Noida
ANAMIKA ROY ENR No.: MMR2012 Batch: 13th
Ishan Institute of Management and Technology Knowledge Park-I, Greater Noida, Distt: G.B.Nagar (U.P.) 1
Website: www.ishanfamily.com, E-mail: email@example.com
This is to certify that the project work done on “Analysis, accumulation and collection of data regarding non-fuel revenue generation at IOCL retail outlets”, submitted to Ishan Institute of Management & Technology, Greater Noida by Anamika Roy (MMR-2012) in partial fulfillment of the requirement for the award of degree of PG Diploma in Management, is a bonafied work carried out by her under my supervision and guidance. This work has not been submitted anywhere else for any other degree/diploma. The original work was carried during 05/05/08 to 30/06/08 in Indian Oil Corporation Limited, Kanpur
(Abhishek Bhatnagar) Dy. Manager (Retail Sales)
Seal of the Company
Kanpur Divisional Office, IOCL (Marketing Division) Kalpi Road, PO: Panki Kanpur-208020
At the very outset I would like to extend my sincere gratitude to all those who have provided their assistance and co-operation during the project work “Analysis, accumulation and collection of data regarding non-fuel revenue generation at IOCL retail outlets” in Kanpur. I take this opportunity to thank everyone who took concern in the successful completion of this project. To be more specific, at very outset, I would like to thank Mr. R.K. Shahab (Divisional Retail Sales Manager) and Mr. Abhishek Bhatnagar (Dy.Manager in Retail Sales) of Kanpur Divisional Office for guiding me throughout the project. Say for providing all the necessary information that I need regarding the project, without which the completion of this project would be, a Herculean task or almost next to impossibility. I express my sincere gratitude to the honorable chairman Sir Dr. D.K.Garg, Prof.M.K.Verma (Dean), Prof.S.Bhattacharya (Director) and all the faculty members of Ishan Institute of Management and Technology for their moral support and guidance, on the ground of which I have acquired a new field of knowledge. I am also thankful to Kanpur Divisional Office (Marketing) for giving me the opportunity to undertake the study in their organization. Without the cooperation of the management and employees this project study would not have materialized.
Date: Place: IOCL, Kanpur Divisional Office
ANAMIKA ROY ENR: MMR2012 PGDM (MM) Ishan Institute of Management And Technology, Greater Noida
“ANAMIKA ROY” a student of 13th batch of Ishan Institute of Management and Technology. Training period was 5th May to 30th June.fuel revenue generation at IOCL retail outlets. This is the property of the institute & the use of this report without prior permission of the institute will be considered illegal and actionable. Greater Noida
. The summer project on Non. Greater Noida (Recognized by AICTE. of India) do hereby declare that the project report entitled “Analysis.DECLARATION
I. 2008. Ministry of HRD. in Kanpur is the original work done by me. in Kanpur” that has been submitted by me as a requirement for the award of degree of Post Graduate Diploma in Management (Marketing Management).
ANAMIKA ROY Ishan Institute of management and Technology. accumulation and collection of data regarding nonfuel revenue generation at IOCL retail outlets. Govt.
iv. HR POLICIES ix. HISTORICAL BACKGROUND ii.
CHAPTER-II LITERATURE REVIEW:i.TABLE OF CONTENTS
CONTENTS PROJECT TITLE CERTIFICATE ACKNOWLEDGEMENT DECLARATION CHAPTER-I EXECUTIVE SUMMARY:i. iii. ii. MANAGERIAL HIERARCHY iv. PROFILE OF KANPUR MARKETING DIVISION vii. GOVT. PRODUCTS OF IOCL v. DIVISIONS OF IOCL MARKETING REFINERIES PIPELINES R&D vi. PROFILE OF IOCL iii. RELATED POLICIES OF IOCL 6
a) b) c) d)
. MARKETING & MARKETIG STRATEGIES
CHAPTER-III COMPANY PROFILE:i. INTRODUCTION AIMS AND OBJECTIVES METHODOLOGY ANALYSIS PAGE NO. MARKETING POLICIES viii.
iii. xviii. BIBLIOGRAPHY REFERENCES LEARNINGS PERSONAL EXPERIENCE WORDS OF THANKS INTRODUCTION CHANGING DYNAMICS OF NON-FUEL RETAILING ANALYSIS COMPARATIVE ANALYSIS CONCLUSION RECOMMENDATIONS
. ii. xvii. xxi. iv. v. xvi. iv.
CHAPTER-IV PROJECT PROFILE:i. xx. xi. xv. PROMOTERS OF IOCL DEMAND ANALYSIS DISRIBUTION CHANNEL SUPPLY-CHAIN MANAGEMENT SWOT ANALYSIS SECNARIO OF OIL INDUSTRY INDIAN OIL PERFORMANCE 2007-2008 COMPETITORS PROFILE SCOPE OF PUBLIC SECTOR PAGE NO. xii. iii. vi. xix. ii.x.
ATTRACTIVE FEATURES OF IOCL FINANCIAL BACKGROUND BUSINESS OPERATIONS
TABLE OF CONTENTS
CONTENTS xiii. CHAPTER-V APPENDIX:i. v. xiv.
marketing division is the division which is responsible for lunching any product. INSTITUTIONAL GUIDE: ORGANISATIONAL GUIDE:
Executive Summary:We are living in an era which is witnessing the frequent change of customer taste and preferences. Non-fuel revenue defines the revenue that is generated apart from fuel. Not only in consumer products but also in fuel sector preferences of customer keeps on changing. in Kanpur.Manager (Retail Sales)
DURATION: ORGANSATION AND PLACE: Panki. Customers no longer stick to the particular brand until and unless it is able to satisfy their potential customer. Kanpur-20. U.P. Hence. make strategies to promote the product and also responsible to hold the market so that the organization is able to capture more market share. it is proved that as far as the concept of marketing of any product is concern. it is a dynamic process. accumulation and collection of data regarding non-fuel revenue generation at IOCL retail outlets. The project undertaken by me is to analyse the non-fuel revenue generation by the retail outlets of fuel companies. In any organization. according to the services provide by the oil companies. 8 Weeks (from 05/05/08 to 30/05/08) Divisional Office IOCL (Marketing) Director (Academics) Mr. Non-fuel means the facilities that are provided by
PROJECT TITLE: Analysis.Abhishek Bhatnagar Dy.
To overcome that lagging part of revenue non fuel facilities are provided in retail outlets. Consequently. that some revenue can be incurred and this strategy is implemented according to the needs of the customer so that it could generate desired revenue. it is required to analyse customer’s needs and wants. because customer satisfaction is the main motive of any company.
Now a day’s people not only believe in primary need but also analyse those aspects or facilities which are provided to the customers along with their primary needs. So. This provision is really workable to generate revenue. railways and air tickets facility. Concept of non-fuel revenue generation is arises due to continuous declination in the profit margin in selling of fuel. Concept of customer satisfaction is also plays an important role as far as fuel sector is concern people used to go in those retail outlets where they get extra facility apart from refueling like ATM facility or ticketing facility or vehicle servicing centre because it saves time and both the requirement get fulfill simultaneously. So.
. it becomes in practice and people change their taste and preferences according to their own benefits. This phenomenon able to generate revenue for the oil companies and this revenue is known as non-fuel revenue generated by those companies . vehicles servicing centre etc. ice-cream parlour. but. from last 2-3 years oil companies starts a provision of providing non-fuel facilities in their retail outlets. It has been seen that. sales volume increases day by day.Oil companies had mentioned in their annual report that non-fuel revenue holds a hefty percentage in the total percentage of revenue generated by them.the fuel companies at their retail outlets and these facilities includes ATM facility.
To know the revenue generated by the non-fuel services at retail outlets of IOCL. accumulation and collection of data regarding non-fuel revenue generation at IOCL retail outlets. To analyse the compatibility of the non-fuel revenue generation concept in domestic market. To know percentage contribution of non-fuel revenue generation in total percentage of revenue generation. To know the preferred non-fuel service according to the segmentation of retail outlets on the basis of urban. in Kanpur.AIMS AND OBJECTIVES
OBJECTIVE OF THE PROJECT: The main objective of the project is: Analysis.
. SUB-OBJECTIVE OF THE PROJECT: Sub-objectives of the project are as follows: To know the concept of origin of the non-fuel revenue generation. semi-urban. To know creating and sustaining value of the non-fuel retailing. rural and highways propositions. To know the preferred non-fuel service according to affordability of the customer at retail outlets.
SOURCES OF DATA: For collecting necessary data two sources have been used. It helps to maintain a track of what to do and not to do. There are different ways of adopting good methodology. In fact. I. Manager in Retail Sales (Mr. COMPANY AND SECTOR: a) Company: Indian Oil Corporation Limited (IOCL) b) Sector: Oil II. It has various approaches to it. www. The annual report of the company of the year ended 31st March. They are primary data and secondary data. There are two main ways to collect data. 2007 2.com
.e. b) SECONDARY DATA: 1.Abhishek Bhatnagar) of Kanpur Divisional office (a unit of IOCL) and during interaction with different retail outlets managers. which is. For the mentioned project the following methods of data collection are taken into consideration. by the company website i. Also.Shahab) and Dy. The Petrotech submit conducted by FICCI 3.R. primary and secondary.K. both are necessary to provide a balanced study on any kind of project. A good methodology works as a strong plan for collecting both primary and secondary data.iocl.METHODOLOGY
Methodology is the key to work on any project. a) PRIMARY DATA: Direct discussion with Divisional Retail Sales Manager (Mr.
accumulation and collection of data regarding non-fuel revenue generation at IOCL retail outlets. it has been predicted that sales volume of fuel increases year by year but the margin of sales revenue reduces gradually. As. And contribution of this revenue in total revenue generated by the selling of fuel. so. So. that more revenue can be earned. According to need of the customer different services are provided in different retail outlets because. to overcome this lagging part different strategies are being used by the company. This analysis is all about effective implementation of services that are supposed to provide in retail outlets. and one of the strategies is providing non-fuel services in the retail outlets.
. in Kanpur.ANALYSIS
Analysis. Analysis and interpretation of revenue generated by the non-fuel services at retail outlets of IOCL. specific need is generated in specific area so it is necessary to provide services accordingly.
the choice of distribution channels and communication channels become much easier. The researcher try to form segment by looking at consumer characteristics. and psychographics. promotion.
. and distribution of ideas. Positioning 3. The several of marketing strategy are given below. 2. Market segment consist of a large identifiable group within a market with similar wants. Product 4. It is an approach midway between mass marketing and individual marketing. Research and Development 8. Services to create exchanges that satisfy individual and organizational goals. Through this. MARKETING STRATEGY: Marketing strategy is a set of objective polices and rules that leas the company's marketing efforts. 1. It is the marketing approach to accomplish the bread objective of the marketing plan. buying attitudes or buying habit.MARKETING
Marketing is a societal process by which individual and groups obtain what they need and want through creating. offering and freely exchanging products and services of value with or other wise it is the process of planning and executing the conception. purchasing power geographical location. geographic. Price 5. Selecting largest markets segmentation. In mass marketing the seller engages in the mass promotion of one product for all buyers. Place 6. pricing. The starting of any segmentation discussion is mass marketing. Promotion 7. Marketing research MARKET SEGMENTATION AND SELECTING TARGET MARKET It is an effort to increases a company's precision marketing. goods. After segmenting the market then target market selected.
price. The well known products generally hold a distinctive position in consumers' minds. The company emphasis on its distribution network. PRODUCT A product is any offering that can satisfy a need or want. The major types of basic offering are goods services. Those under positioning over positioning confused positioning and doubt positioning. PLACE This plays a major role in the entire marketing system. The product strategic is modified in different stages of product life cycle. organization. The positioning requires that every tangible aspect of product. Price. Proper distribution network gives proper availability of the product. information and ideas. place and promotion must support the chosen positioning strategy.POSITIONING The positioning is a creative exercise done with an existing product. Company should develop a unique selling proposition strategy. events. properties. As companies increase the number of claims for their brand. they risk disbelief and a loss of clear positioning. experiences. The company gives more importance inquality. Company’s should develop a unique selling proposition (USP) for each brand and stick to it. PROMOTION 16
. services etc to satisfy the customers. Price of the product will be decided by the company according to the competitor's price. The product has its life cycle. places. PPL consistently promotes it’s product at lower cost. In general a company must avoid four major positioning errors. packaging. PRICE It is the most importance aspect in company's point of view.
The second part our line is the planned price. It includes advertising sales promotion and public relation etc. price. MARKETING MIX The set of controllable tactical tools. and place (4 P’s) that the firm blends to produce the response it wants. The plan consists of three parts. promotion. the new product manager must develop a preliminary marketing strategy plan for in trod using the new product in to the market. By adopting various promotional activities the company create strong brand image. RESEARCH AND DEVELOPMENT After testing. The third part of the development describes the long run sales and profit goals and marketing mix strategy over come. distribution strategy and marketing budget for the first year. It is also helps in increasing the brand awareness.product. in the target markets. MARKETING MIX Target Market
Product Quality Design Feature Brand Name Packaging Sizes iants o Services Warranties Returns
Variety Discount Allowance Payment Period Credit Term
Sales Promotion Advertising Sales Force Public Relation Marketing
Channels Coverage Assortments Location Inventory Transport
.Promotion is the one of the major aspects in marketing strategy. The first part describes the target market's size. structure and behavior.
It is very important for the companies to understand that winners would be those who will endure a strong regional presence. Confectionery . Here in the case of the FMCG industry the distribution network is the important factor in being competitive and the catch lies in making the product available to maximum number of places in the region allotted. One of the reason why Sumeru is running strong in the region is its strong distribution network built over the years since its inception. Cigarettes – Gold flake.'mint-o' and 'Candyman'.
PLACE Place stands for the company activities that make the product available to the target customers. These include Ready to Eat food. Pricing of the product charged from the wholeseller or retailer should be such that it attracts them and motivate them to maximize the sale or our product. Sumeru plans to increase its distribution network in East Delhi region. DISTRIBUTION NETWORK It’s a battle that Sumeru can win by sheer distribution muscle.
PRICE There is a big competition in the FMCG industry. Atta. Chips. Personal Products ( Fiama Di Wills conditioner. Wills. Spices. shower gels and soap). etc. slightly price change in one product directly affects the customers. To make the product available to the target consumers a good distribution network has to be there to support the good quality of the product. Salt.PRODUCT The company is offering (distributing) wide variants of the product to fulfill the needs of different types of the customer. Biscuts. Therefore the company is taking some immediate actions to increase its presence in the region PROMOTION: From time to time companies adopt different promotional activities 18
. Further. There are so many schemes available in the market provided by different companies.
a) Different schemes for Sales Persons performances.
. b) Free gifts.
400 051. on September 1. trans-national. with national leadership and a strong environment conscience.HISTORICAL BACKGROUND
HISTORY: Indian Oil was incorporated on June 30. value and satisfaction for the stakeholders.
Indian Oil has its Registered Office at: Indian Oil Bhavan G-9. Ali Yavar Jung Marg Bandra (East) Mumbai . Mission: To achieve international standards of excellence in all aspects of energy and diversified business with focus on customer delight through value of products and services. integrated energy company. Upon merger with Indian Refineries Ltd. and cost reduction. 1959 under the name and style of Indian Oil Company Ltd. 1964. the name of the company was changed to Indian Oil Corporation Limited. Vision: A major diversified. playing a national role in oil security & public distribution. To maximise creation of wealth.
To foster a culture of participation and innovation for employee growth and contribution. Jurisdiction the Central Public Information officers Names. New Delhi .110049 Mr.B. 7. adopting and assimilating state-of.N. Tito Marg. Tito Marg.
Mr. To help enrich the quality of life of the community and preserve ecological balance and heritage through a strong environment conscience. designations and addresses of S. IOC L SCOPE Complex. Lodhi Road.
Administrative Office at Refineries Division. To cultivate high standards of business ethics and Total Quality Management for a strong corporate identity and brand equity. Indian Oil Corporation Limited 3079/3. Sadiq Nagar. IndianOil Corporation Limited. designations and address of the Appellate Authority
CPIO Mr.B.C.the-art technology for competitive advantage.
Refineries Division CPIO 2. J.No. Key staff of the organization Names. New Delhi Sadiq Nagar. at Corporate Office at IOC L3079/3. SCOPE Complex. Agrawal Director (Human Resources) Administrative Office Corporate Office.
. B. Institutional Area. Headquarters. Core -2. J. Sudhir Bhalla Executive Director (Human Resources) Address Refineries Division. New Delhi -110049
1. To attain leadership in developing.
To provide technology and services through sustained Research and Development. V. designations and addresses of the Central Public Information Officers
Name. Bankapur Director (Refineries) Refinery Headquarters. Satish Kumar Executive Director (Human Resources) Address Corporate Office. Head Office at New Delhi
New Delhi. 7.Institutional Area. Core -2.
7. Guwahati – 781020 Assam Guwahati Refinery Unit and all offices under Guwahati Refinery Unit
3. Lodhi Road. B. Bankapur Director (Refineries) Refinery Barauni Refinery Unit Headquarters. B. PO. InstitutionalArea Lodhi Road.
. District Begusarai. Core -2. Address IndianOil Corporation Limited Guwahati Refinery. and all offices under IOCL SCOPE Barauni Refinery Unit Complex. Basu Executive Director Gujarat Refinery
5.K.110003 Mathura Refinery Mr. Bankapur Director (Refineries) Haldia Refinery Unit Refinery and all offices under Headquarters. Guharay Executive Director Mathura Refinery. Lodhi Road. Haldia Refinery IOCL SCOPE Unit Complex.110003 Mr.
CPIO Mr. 7. New Delhi. New Delhi. B. Lodhi Road. G Bhanumurthy Executive Director Guwahati Refinery.
Mr. Bankapur Director (Refineries) Refinery Headquarters. B.Institutional Area.
Address IndianOil Corporation Limited PO.
6. Core -2.Institutional Area.721606 West Bengal CPIO Mr. under Gujarat IOCL SCOPE Refinery Unit Complex. B. A K Roy Executive Director Haldia Refinery Address IndianOil Corporation Limited District Midnapur.N.N.N.
Mr. New Delhi-110003
CPIO Mr. IOCL SCOPE Complex. Barauni Refinery.110003
New Delhi. U.861114 Bihar CPIO Mr.110003
CPIO Mr. Institutional Area. Bankapur Unit and all offices Director under Mathura (Refineries) Refinery Unit Refinery Headquarters. Core -2. Lodhi Road.N. New Delhi. S K Garg Executive Director Barauni Refinery
4. Noonmati. Bankapur Director (Refineries) Gujarat Refinery Refinery Unit and all offices Headquarters.P. 7.110003 Mr.N. J. 7. 7.Core -2.
B. Jagatsinghpur. Bankapur Director (Refineries) Refinery Panipat Refinery Unit Headquarters.Institutional Area.110003New Delhi. Mumbai Liaison IOCL SCOPE Office Complex.A. B.N. Gariahat Road(South) Kolkata
11. 2. Paradip. IOCL SCOPE Complex.
Address IndianOil Corporation Limited PO.
. New Delhi110003 Kolkata Liaison Mr. Core -2. 7.Institutional Area. New Delhi110003 Mr. New Delhi110003 Mr.K.281005 Uttar Pradesh CPIO Mr. Bankapur Director (Refineries) Refinery Headquarters. Distt. Bankapur Director (Refineries) Refinery Headquarters.132140 Haryana
CPIO Mr. Core -2.N. Paradip Refinery IOCL SCOPE Project (PDRP) Complex. Udayabata. Refineries Division. 6th Floor. Panipat . Lodhi Road.754141 Orissa
CPIO Mr. V.
IOCL SCOPE Complex. Lodhi Road. Refineries Division. Lodhi Road. 7.N. G-9 Ali Yavar Jung Marg Bandra (East) Mumbai-400051 CPIO Mr. Lodhi Road. and all offices under IOCL SCOPE Panipat Refinery Complex. Central Wing.N. Unit 7. Panipat Refinery. Saha Deputy General Manager Kolkata Address IndianOil Bhavan.Institutional Area. 7. J.
Address IndianOil Bhavan.110003 Mr. B. Mohan Deputy General Manager Mumbai
10. Rath Executive Director(PDRP) Orissa
9. Mathura Refinery. Core -2.
Address Hotel Sea Pearl 3rd Floor. 7. Paradipgarh. Core -2. Office Bankapur Director (Refineries) Refinery Headquarters.Institutional Area.Address IndianOil Corporation Limited PO. R K Ghosh Executive Director Panipat Refinery
8. New Delhi. B.Institutional Area. Lodhi Road. Mathura . Core -2.
Western Region Pipeline Office at Gauridad and all pipelines and offices under Western Region Pipeline Office
15. Singh General Manager (I/C) Eastern Region Pipelines
13. IndianOil Corporation Limited. IO CL 3079/3.1007. P.360003 Gujarat CPIO Mr. New Delhi .P. Sector 1. Baholi. J.700020 West Bengal CPIO Mr. District Panipat .B. Chakraborti Director (Pipelines) Corporate Office. T V Mohan Executive Director Northern Region Pipelines Address Northern Region Pipelines Office. P. A-1.201301
Address IndianOil Corporation Limited IndianOil Bhavan.110049
Northern Regio Pipeline Office at Panipat and all pipelines and offices under Northern Region Pipeline Office.K. New Delhi .
. K. New Delhi . IO CL
14.K. P. J. Tito Marg. Morvi Road. at Pipelines IO CL Headquarters at 3079/3. IO CL 3079/3. Udyog Marg. J. Noida . Sadiq Nagar. Jai Gopal General Manager (Human Resources) Pipelines Division.110049 Mr. Chakraborti Director (Pipelines) Corporate Office. Kolkata and all IO CL pipelines and offices 3079/3.K. Noida. Chakraborti Director (Pipelines) Corporate Office. Gupta Executive Director Western Region Pipelines Address Western Region Pipelines Office. IndianOil Corporation Limited PO. Panipat Refinery. P. Lee Road. G. Sadiq Nagar. Pipeline Office J.K. Tito Marg. IndianOil Corporation Limited.G.B. Chakraborti Eastern Region Director (Pipelines) Pipeline Office at Corporate Office.110049 Mr. Tito Marg.
Address Eastern Region Pipelines Office.B. B V Janakiram General Manager Southern Region Pipelines Address
Mr. Gauridad District Rajkot .K. Tito Marg.B. Kolkata . Mr.132140 Haryana CPIO Mr. New Delhi 110049 Mr. 14. Sadiq Nagar. P. Southern Region Pipeline Office at Chennai and all pipelines and offices under Southern Region Pipeline
16. Chakraborti Director (Pipelines) Administrative Office Corporate Office.New Delhi110003
CPIO Mr. under Eastern Region Sadiq Nagar. Post Box No.
Marketing Division. Barakhamba Lane. Marketing Division. Bandra (East).K. Ali Yavar Jung State Office-I Marg. Ali Yavar Jung Marg. IndianOil Bhavan. G. G-9. Gautam Datta Executive Director (HR) IOCL Head Office. Tito Marg. Ali Yavar Jung Marg. 139 Mahatma Gandhi Road. offices under UP G-9. Administrative Office Marketing Division. Bandra (East). Mumbai 400051 Uttar Pradesh State Office-II at Noida and all installations and offices under Mr.110016 CPIO Mr. New Delhi CPIO Mr.B.S.K. S.
21. all installations and IndianOil Bhavan. 1 Sri Aurobindo Marg. Julka. Mumbai 400051 CPIO Mr. Yusuf Sarai. G-9. Lucknow – 226 010 Uttar Pradesh CPIO Mr. P.Southern Region Pipelines-Chennai Indian Oil Bhavan. Mumbai 400051 Mr. Vibhuti Khand. installations and IndianOil Bhavan. General Manager (Planning) Head Office Mr. Mumbai 400051
17. Indian Oil Bhawan.R. TC . S. Gautam Datta Executive Director (HR) IOCL Uttar Pradesh State Head Office. Ali Yavar Jung & Haryana State Office Marg. Chennai 600 034 Phone . Giridhar General Manager Uttar Pradesh State Office-II
18. at Mumbai G-9. IndianOil Bhavan. New Delhi . Gomti Nagar. New Delhi 110049
CPIO Mr. Mumbai 400051 Mr. Tiwari General Manager Uttar Pradesh State Office-I Address Indian Oil Corporation Ltd. Office-I at Lucknow and Marketing Division. J. No. at Head Office IndianOil Bhavan.39 – V. Gautam Datta Executive Director (HR) IOCL Head Office. Sadiq Nagar. Babar Road. Head Delhi and all Marketing Division. Bandra (East).044 – 28330166
. offices under Delhi G-9. A. Gautam Datta Executive Director Delhi & Haryana (HR) IOCL State office at New Office. Bandra (East). IndianOil Bhavan. Jha General Manager I/C (Regional Services) Northern Regional Office Address IndianOil Corporation Limited Marketing Division.
Mr. Ali Yavar Jung Marg. Bapat General Manager Delhi State Office Address IndianOil Corporation Limited World Trade Centre. Gautam Datta Executive Director (HR) IOCL Head Office.
Address IndianOil Corporation Limited Head Office.
Functions relating to Northern Regional Office
19. Bandra (East).
Address IndianOil Corporation Limited Punjab State Office Plot No. S. J & K State Office
Marketing Division. IndianOil Bhavan. J & K State Office at Chandigarh and all installations and offices under Punjab. IndianOil Bhavan. G-9. Bandra (East). Mumbai 400051 Mr. Sector-19 A.
Rajasthan State Office at Jaipur and all installations and offices under Rajasthan Office. A. Bandra (East). Bandra (East). Marketing Division.
IndianOil Corporation Limited Marketing Division.
Address IndianOil Bhawan. Mumbai 400051 Mr. Mumbai 400051 Mr. Marketing to Division. Ali Yavar Jung Marg. Ali Yavar Jung Marg. Kolkatta West Bengal CPIO Mr. Ali Yavar State Jung Marg. Gariahat Road. Mumbai 400051 Mr.General Manager (Ops) West Bengal State Office
25.Address IndianOil Corporation Limited E-8 Sector-1 Noida CPIO Mr. IndianOil Bhavan. Bareilly. Ali Yavar Jung Marg. Near Radha Swami Satsang Bhawan.
Bihar State Office at Patna and all
. IndianOil Bhavan. G-9. Gautam Bose General Manager Rajasthan State Office Address IndianOil Corporation Limited Ashok Chowk. Gautam Datta Executive Director (HR) IOCL Head Office. Gautam Datta Executive Director (HR) IOCL Head Office. Gautam Datta Executive Director
22. 3A. Mumbai 400051 Mr. Madhya Marg.
26. Gariahat Road (South) Dhakuria.
Functions relating Eastern Regional Office
West Bengal CPIO Mr. 2. Bandra (East). Bedi General Manager Punjab State Office
Uttar Pradesh State Office-II including Agra. Adarsh Nagar Jaipur Rajasthan CPIO
Mr. H. G-9.
24. Chandigarh CPIO Mr.S. (Dhakuria) Kolkata . G-9. Priobhash Dey General Manager (Regional Services) Eastern Regional Office
23. IndianOil Bhavan.K.700068. Marketing Division. Himachal. Ali Yavar Jung Marg. 2. G-9.N. IndianOil Bhavan. Himachal. Dehradun and Noida Divisional Offices Punjab. Bandra (East). Sengupta Dy. Jha
West Bengal State Office at Kolkata and all installations and offices under West Bengal State Office. Gautam Datta Executive Director (HR) IOCL Head Office. Marketing Division. Gautam Datta Executive Director (HR) IOCL Head Office.
(HR) IOCL Head Office. G-9. Dr. V. 254-C.
Maharashtra State Office at Mumbai and all installations and offices under Maharashtra State Office including Goa. IndianOil Bhavan. Gautam Datta Executive Director (HR) IOCL Head Office. Ali Yavar Jung Marg. CPIO Mr. N. Ali Yavar Jung Marg.S. Bhoi Nagar. 254-C. IndianOil Bhavan. Gautam Datta Executive Director (HR) IOCL Head Office.
Address IndianOil Corporation Limited 304. Mumbai 400051 Mr. Marketing Division. Ramgopal General Manager Orissa State Office installations and offices under Bihar State Office. Gautam Datta Executive Director (HR) IOCL Head Office. Ali Yavar Jung Marg. Marketing Division. Deepak Pandya General Manager Maharashtra State Office Address IndianOil Corporation Limited 1st & 4th Floor.
. G-9. Mumbai 400051 Mr.General Manager Bihar State Office Address IndianOil Corporation Limited Loknayak Bhawan.
Functions relating to Western Regional Office
30. Guwahati Assam CPIO Mr. Bandra (East). Dak Bungalow Road. Bandra (East). Prabhadevi. G-9. Mumbai 400051 Mr. IndianOil Bhavan. Annie Besant Road. Patna CPIO Mr. Mumbai 400051 Mr. IndianOil Bhavan. Marketing Division. Bandra (East).400025. Marketing Division. CPIO Mr. Marketing Division.
27. Bhubaneshwar Orissa.
Address IndianOil Corporation Limited East Point Tower. G-9. G-9. Ali Yavar Jung Marg. Venkataraman General Manager (Regional Services) Western Regional Office
North East State Office at Guwahati and all installations and offices under North East State Office. Bandra (East). Annie Besant Road. Gautam Datta Executive Director (HR) IOCL Head Office. Subrato Ghosh General Manager North East State Office
Orissa State Office at Bhubaneshwar and all installations and offices under Orissa State Office
28. Mumbai . IndianOil Bhavan. Bamuni Maidan.
29. Ali Yavar Jung Marg. Bandra (East).
Address IndianOil Corporation Limited Marketing Division.
CPIO Mr. Gautam Datta Executive Director (HR) IOCL Head Office. Gautam Datta State Office at Executive Director Bangalore and all (HR) IOCL
Address IndianOil Bhavan.C. Ali Yavar Jung Marg. Navrangpura. State Office. D. Marketing Division. Mumbai 400051 Karnataka Mr. Gautam Datta Executive Director (HR) IOCL Head Office. Diwan General Manager Madhya Pradesh Madhya Pradesh State Office including Chhattisgarh State Office at Bhopal and all installations Address and offices under IndianOil Corporation Limited Madhya Pradesh IndianOil Bhawan. Mithakali 6 Roads.S. Shikhar Complex. Bandra (East). G-9. Bandra (East).General Manager (Consumer Sales) Gujarat State Office
31. Gautam Datta Executive Director Tamil Nadu (HR) IOCL State Office at Head Office. Bandra (East). G-9. Arera Hills. Ali Yavar State Office including Jung Pondichery. Ali Yavar Jung Marg. Ashok General Manager
Address IndianOil Corporation Limited 104/204/304/403/404. offices under IndianOil Bhavan. IndianOil Corporation Limited. Ahemdabad
Gujarat State Office at Ahmedabad and all installations and offices under Gujarat State Office
Address IndianOil Corporation Limited IndianOil Bhawan. Nungambakkam High Road.600034. Marg. Mumbai CPIO Mr. Jail Road. Chennai . IndianOil Bhavan. Gautam Datta Executive Director (HR) IOCL Head Office.
Mr. B. Marketing Functions relating Division. Chennai and all Marketing installations and Division. Nungambakkam High Road.L. Chennai CPIO Mr. Marketing Division. 139. Prasad General Manager (Regional Services) Southern Regional Office
33. Tamil Nadu G-9. IndianOil Bhavan.Mumbai 400051 Worli Colony.General Manager (Engg) Tamil Nadu State Office
34. Gupta Dy. to Southern Regional IndianOil Bhavan.K. S. Mumbai 400051 Mr. Bandra (East). CPIO Mr. S. Ali Yavar Jung Marg. CPIO Mr. Marketing Division. Mumbai 400051
32. Office G-9. Mumbai 400051 Mr. Ramkumar Dy. Bhopal.
.Karnataka State Office Address IndianOil Corporation Limited "IndianOil Bhawan" No. II & III Floor.
Head Office.P Bordoloi General Manager (T) Assam Oil Division Address IndianOil Corporation Limited PO. Mumbai 400051
CPIO Mr. P. 3-6-346 to 438. Kalinga Road (Mission Road). Gopalakrishnan Dy. Bandra (East). CPIO Mr. Himayat Nagar. Institutional Area. Bandra (East). Core -2.
Address Research & Development Centre. at Faridabad Faridabad. 29 P. G-9. New Delhi . Sector 13.786171 Assam
Assam Oil Division
For Refinery related matter including general Administration / Services of AOD at Digboi and all offices under Assam Oil Division Mr.110003
39. Bankapur Director (Refineries) Corporate Office.M. Bangalore installations and offices under Karnataka State Office. IndianOil Bhavan.N. Nazirudeen General Manager Kerala State Office
36. Anand Kumar Director (R & D) Administrative Office R & D Centre IO CL at R & D Centre Sector 13. 7. B.
Address IndianOil Corporation Limited Panampilli Avenue. Sudhir General Manager (Human Resources)
Mr. IO CL SCOPE Complex. and offices under IndianOil Bhavan. Gautam Datta Executive Director (HR) IOCL Head Office.
Address IndianOil Corporation Limited No. offices under G-9. Andhra Pradesh G-9. installations and IndianOil Bhavan. Bandra (East). Kerala State Office at Marketing Cochin and all Division. Ali Yavar State Office. Digboi . Mumbai 400051
Research & Development
Mr. Faridabad . Naspur House. Mumbai 400051 Mr. Marketing Division. Ali Yavar Jung Marg.121002 (Haryana)
38. Hyderabad. PO. IndianOil Corporation Limited. Jung Marg.121002 CPIO Mr. Panampilli Nagar. S. S. Jung Marg. D. Gautam Datta Executive Director (HR) IOCL Andhra Pradesh State Head Office. Lodhi Road. Ali Yavar Kerala State Office.General Manager (Lubes) Andhra Pradesh State Office
37. Cochin Kerala CPIO Mr. Office at Hyderabad Marketing and all installations Division.
400 crore (US $ 5. besides refining and pipeline capacity augmentation. product quality up gradation and expansion of marketing infrastructure.For the year 2004-05. the Indian Oil group sold 50.204 crore and profits of Rs. Indian Oil is investing Rs.6 billion) during the X Plan period (2002-07) in integration and diversification projects.96 million tonnes through exports. 42% national refining capacity and 69% petroleum products pipeline capacity.915 crore for fiscal 2005. 1. The Indian Oil Group of companies owns and operates 10 of India’s 18 refineries with a combined refining capacity of 54.20 million tonnes per annum (1 million barrels per day). The Company’s cross-country crude oil and product pipelines network spanning over 9. 24.000 km meets the vital energy needs of the country.
. To maintain its competitive edge and leadership status. Indian Oil and its subsidiaries account for 56% petroleum products market share among public sector oil companies. including 1. 83. 4.IOCL is currently India’s largest company by sales with a turnover of Rs.13 million tonnes of petroleum products.
integrated energy company. playing a national role in oil security and public distribution.000 Oil. Coal & Related Services Oil Refiners & Distributors INDIA 29862
Company Perspectives: We strive be a major diversified.600. 1958: The government forms its own refinery company.000. Gas. Indian Refineries Ltd. 1959: Indian Oil Company is founded as a statutory body to supply oil products
.PROLIFE OF IOCL
PROFILE OF INDIAN OIL CORPORATION LIMITED
Company Profile: Ticker: Exchanges: 2007 Sales: Major Industry: Sub Industry: Country: Employees:
Indian Oil Corporation Limited IOCL BOM 1. which states that its oil industry should be state-owned and operated. Key Dates: 1948: India's government passes the Industrial Policy Resolution. with national leadership and a strong environmental conscience. transnational.844.
profits. 2002: The Indian petroleum industry is deregulated.20 million tonnes per annum 32
. In the Forbes’ ‘Global 2000’ list of the world’s biggest public companies in 2005. India’s Downstream Major: The Indian Oil Group of companies owns and operates 10 of India’s 18 refineries with a combined refining capacity of 60.000 crore mark in sales turnover in the year 2004-05 and posted major milestones in the downstream segment with its product sales crossing 50 million tones and its countrywide network of petrol and diesel stations (retail outlets) expanding beyond 10. viz.to Indian state enterprise
. Indian Oil continued its dominance in the Indian corporate sector and retained its leadership position in the Fortune ‘Global 500’ listing released this year. Indian Oil also broke new ground during the year by grossing its first US$ 1 billion in revenues through initiatives in new businesses.000 during the year. 189 in 2004. overseas Ventures. Indian Oil is the first Indian corporate to breach the Rs. featuring the top 500 largest companies listed on the Bombay Stock Exchange by market valued and released by The Hindu Business line.. In the year 2004-05. a big achievement. It is also the largest grassroots single train Kerosene-to-LAB unit in the world. assets and market value. 1981: Half of India's 12 refineries are operated by Indian Oil. gas marketing and petrochemicals. Indian oil had moved up to 191 in 2003.
1964: Indian Refineries and Indian Oil Company merge to form the Indian Oil Corporation 1976: The Burmah-Shell and the Caltex refineries are nationalized. From a ranking of 226 in the year 2002. Indian Oil marked big-ticket entry into petrochemicals with the commissioning of the country’s largest Linear Alkyl Benzene (LAB) plant at Gujarat Refinery. 1998: The company's seventh refinery is commissioned at Panipat. Indian oil is placed at 279 based on composite ranking for sales. 150. and 170 in 2005 based on its performance in 2004-05. Recently it has got the position 153. It also topped the list of “Indian’s most Valuable Brands 2004”.
These include two refineries of subsidiary Chennai Petroleum Corporation Ltd. including 2. (CPCL) and one of Bongaigaon Refinery and Petrochemicals Limited (BRPL).(1. Indian Oil and its subsidiaries account for 44. product quality up gradation and retail expansion.
. besides refining and pipeline capacity augmentation. Indian Oil is investing Rs.42 MMTPA.000 crore (US $ 5.61 million tonnes of petroleum products. 24.
Indian Oil owns and operates the country’s largest network of crosscountry crude oil and product pipelines spanning nearly 9. For the year 2005-06.2 million barrels per day). with a combined capacity of 60.6 billion) during the X Plan Period (2002-07) in integration and diversification projects.09 million tonnes through exports. 42% national refining capacity and 69% downstream pipeline throughput capacity.50% petroleum products market share among public sector oil companies. Indian Oil sold 49. To maintain its competitive edge and leadership status.000 kilometers.
B N Bankapur 34
Director (HR) & Director-in-charge (IBP Division)
BOARD OF DIRECTORS
B M Bansal
Director (Planning & Business Development)
S V Narasimha
Government of Maharashtra
Former Chief Secretary. BATA India Ltd. Agarwal
Former Chairman. Ahmedabad and President.Director (Marketing)
P K Chakraborti
P K Sinha
Joint Secretary & Financial Advisor Ministry of Petroleum & Natural Gas
.Tech Mahindra Ltd.
Prof S K Barua
Additional Secretary Ministry Of Petroleum & Natural Gas
PART TIME. And Former Chairman Pepsico India Holdings
V. IIM. FLAME. NON-OFFICIAL DIRECTORS
Vice Chairman & Managing Director . Railway Board
With rising automotive fuel prices at the global level.PRODUCTS OF IOCL
Indian Oil Corporation Limited is responsible manufacturing many products. Marine Fuels 10. some products and their details are as follows: 1. The higher energy content in this fuel results in a 10% reduction of Carbon-dioxide emission compared to other fuels and substantially reduces air pollution caused by 36
. high-octane and eco-friendly fuel. use of domestic LPG cylinders in automobiles is not only illegal but also highly unsafe. Superior Kerosene Oil 8. It is obtained from natural gas through fractionation and from crude oil through refining. Special Products 12. Bitumen 9.Crude Oil Details of each product are as follows: AUTO GAS Auto Gas from Indian Oil is India's leading Auto LPG fuel brand available in about 60 cities. 2000. Auto LPG 2. the use of Auto LPG as an automotive fuel was made legal in India. MS/Gasoline 7. It is a mixture of petroleum gases like propane and butane. However. customers are increasingly opting for economical and eco-friendly fuel alternatives. one of which is Auto LPG. High Speed Diesel 4. Auto LPG has less impact on greenhouse emissions than any other fossil fuel when measured through the total fuel cycle. Petrochemicals 11. Auto LPG is a clean. With effect from April 24. Aviation Turbine Fuel 3. Liquefied Petroleum Gas 5. albeit within the prescribed safety terms and conditions. Lubricant and Greases 6.
and aromatic hydrocarbons (including napthalenes and alkylbenzenes). 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 . straight-run petroleum distillate liquid. and cycloparaffins). iso .
AVIATION TURBINE FUEL 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. Rudolf Diesel originally designed the diesel engine to use coal dust as a fuel. self-ignition engine. but oil proved more effective. Fuel is ignited by the heat of high compression and no spark plug is used. a type of internal combustion engine. buses. combustible. Its principal uses are as jet engine fuel. motorcycles. Indian Oil Aviation Service refuels over 1500 flights – from the bustling metros to the remote airports linking the vast Indian landscape.vehicular emissions. petroleum drilling and other off-road equipment and to be the prime mover in a wide range of power generation & pumping applications. Automotive diesel fuel serves to power trains. With a switchover to Auto LPG–driven cars. Indian Oil is India's first ISO-9002 certified oil company conforming to stringent global quality requirements of aviation fuel storage & handling. from the icy heights of Leh (the highest airport in the world at 10. Indian Oil Aviation also caters to the fuel requirements of the Indian Defence Services. Diesel engines are used in cars. besides refueling VVIP flights at all the airports and remote heli-pads/heli-bases across the Indian subcontinent. customers can save about 30% on their fuel bills. The diesel engine is high compression.682 ft) to the distant islands of Andaman & Nicobar. Jet fuel is a colorless. trucks. boats and locomotives. to run construction.
. Diesel is used in diesel engines. Between one sunrise and the next.The governing specifications in India are IS 1571: 2001 (7th Rev). and automobiles. The most common jet fuel worldwide is a kerosene-based fuel classified as JET A-1.
SERVO backed by Indian Oil's pioneering R&D. LUBRICANT AND GREASES Indian Oil's SERVO range of lubricants reigns as the undisputed market leader in the Indian lubricants market. Since LPG has only a faint scent. flash point. LPG is a blend of Butane and Propane readily liquefied under moderate pressure. after which it will be implemented on a countrywide basis. Indian Oil 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 of SERVOXpress stations. Initial trials are currently going on. sustained brand enhancement and new generation packaging is a one-stop shop for complete lubrication solutions in the automotive. a mercaptan odorant is added to help in its detection. LPG in fairly large concentrations displaces oxygen leading to a nauseous or suffocating feeling. reliability and convenience. Known for its cutting-edge technology and high-quality products. LPG also led to a substantial improvement in the health of women in rural areas by replacing smoky and unhealthy chullahs
with Indane. besides Indian Oil petrol stations. flame retardant aprons and energy efficient Green Label stoves are recommended to enhance safety measures while using LPG as fuel. LIQUEFIED PETROLEUM GAS Indane is today one of the largest packed-LPG brands in the world.The Indian Standard governing the properties of diesel fuels are IS 1460:2005 (5th Rev). In the event of an LPG leak. industrial and marine segments. handling at low temperature. thus it normally settles down in low-lying places. which is easy to observe. Suraksha LPG hose. the Indane brand is being backed by RFID technology. bazaar 38
. efficient and safe cooking fuel. the vapourisation of liquid cools the atmosphere and condenses the water vapour contained in it to form a whitish fog. To prevent diversion. LPG vapour is heavier than air. a new concept that helps track the movement of LPG cylinders. In the retailing segment.
It is today a fuel synonymous with safety. extensive blending and distribution network. Important characteristics are ignition characteristics.
vacuum cleaning. Motor gasoline is sold at retail outlets where it is directly delivered into the automobile tank.outlets and thousands of auto spare parts shops across the country. the science of Rubbing. Water is a natural lubricant but has extremely limited application due to its very low viscosity and very low boiling point besides its contribution to rusting and corrosion. high pour point rapid thickening and may even let out foul odours in time. polishing and lamination installation too.Tribology. with significant technological progress in commercial usage in the 20th century. Most of the liquid lubricants used at present all over the world are petroleum-based mineral oils. The Indian Standard governing the properties of motor gasoline & gasolineoxygenate blends is IS 2796: 2000 (3rd Rev). MS/GASOLINE Automotive gasoline and gasoline-oxygenate blends are used in internal combustion spark-ignition engines. ashless organic compound (such as an alcohol or ether) which can be used as a fuel or fuel supplement. The SERVOXpress is a one-stop shop for quick. In the recent past two terminologies have gained currency . The SERVO range includes over 500 lubricants and 1200 formulations encompassing literally every lubricant requirement. The rapid development of this science can be said to have started from the 18th century. easy and convenient auto care. These spark ignition engine fuels are primarily used for passenger cars. upholstery cleaning. The SERVOXpress stations have facilities for oil change. The earliest knowledge of lubrication is evident from grease lubricated chariot wheels excavated from the ruins. The hundreds of individual hydrocarbons in gasoline range from c4 to c11. Most lubricants are liquids. the study of stream or flow. farm machinery and in other spark ignition engines employed in a variety of service applications. A/C service. Vegetable oils have excellent lubrication properties but have very poor oxidation stability. 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.
. Lubrication is the art of reducing friction between rubbing or rolling surfaces. perfuming. An oxygenate is an oxygen-containing. providing customers with a refreshing experience. Rheology. tyre/battery checkups. They are also used in off-highway utility vans.
Indian Oil refineries at Panipat. colour & burning qualities (char value). Since kerosene is less volatile than gasoline. kerosene and diesel. Indian standard institutions define Bitumen as a black or dark brown noncrystalline soil or viscous material having adhesive properties derived from petroleum crude either by natural or by refinery processes. SUPERIOR KEROSENE OIL Kerosenes are distillate fractions of crude oil in the boiling range of 150-250°C.'Indmul'. The two types of burners which achieve this fall into two categories namely vaporisers & atomisers.In view of the auto fuel policy issued by Govt. Haldia and CPCL produce grades Bitumen 80/100. weeds and fungi. General uses of Bitumen: For civil engineering works Constructions of roads. Euro IV) are being made applicable for the gasolines being marketed in India. It is available both in packed and in bulk. Bitumen has gradually replaced road tar for road construction purposes mainly because of its greater availability as compared to road tars. Euro III. are removed generally by distillation from suitable crude oil. BITUMEN The common binders used in bituminous road constructions are road tars and Bitumen. This has led to reduction of environmentally polluting factors in gasoline. of India. The Indian Standard governing the property of kerosene is IS 1459:1974 (2nd Rev). 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. It is principally obtained as a residual product in petroleum refineries after higher tractions like gas. more & more stringent specifications (equivalent to Euro II. Kerosene is used as a domestic fuel for heating / lighting and also for manufacture of insecticides/herbicides/fungicides to control pest. Mathura.
.. runways and platforms. Koyali. Bitumen 30/40. petrol. Bitumen 60/70. Bitumen CRMB and Bitumen Emulsion. etc. 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.
While IndianOil supplies Furnace Oil (FO). Canal lining to prevent eroding. Chennai. MARINE FUELS Indian Oil caters to all types of bunker fuels and lubricants required by various types of vessels operating throughout the world in the shipping industry. Battery manufacturers as sealing compound. Water proofing to prevent water seepage. Cochin. JNPT. Light Diesel Oil (LDO) and High Flash High Speed Diesel (HFHSD) meeting the 41
Dump-proof courses for masonry. Vizag. Mastic floorings for factories and godowns. The Bunker supplies are made at all major ports of India. Ceramic industries. Port Blair and Haldia. Apart from Indian Navy whose 100% bunker requirement is met by Indian Oil. Kolkata. Vasco. Mumbai. New Mangalore. Printing inks. Bituminous grease for lubricating open gears. Tuticorin. Water proof papers. Joint filling material for mason
For industries Electrical cables and junction boxes. Kandla. Paradeep. Electrical capacitors. Spot requirement of different vessels calling at Indian ports are undertaken through nominations received from local shipping agents and international bunker trader/brokers. Paint industries for manufacturing black paints and anti corrosive paints. Bituminous felts. Tank foundation. it also supplies bunker fuels to all major shipping and dredging companies of India.
A Naphtha Cracker complex with downstream polymer units is coming up at Panipat and a refinery-cum-petrochemicals complex is proposed at Paradip on the east coast of India. This SBU has five exclusive sub-groups. Vizag. Supplies are made through pipeline.000 crore in the petrochemicals business in the next few years. Vasco. Cochin and Chennai. in PTA business. IndianOil has set up a world-scale Linear Alkyl Benzene (LAB) plant at Gujarat Refinery and an integrated Paraxylene/Purified Terephthalic Acid (PX/PTA) plant at Panipat. Vizag. a separate Strategic Business Unit (SBU) has been created in Indian Oil for marketing of petrochemicals. classified product wise (LAB. Mangalore and Haldia. Port Blair. Similarly. Beginning with a low-investment. The Corporation is envisaging an investment of Rs 30. PTA. it also offers the entire range of SERVO brand of marine grade lubricants. PETROCHEMICALS India is amongst the fastest growing petrochemicals markets in the world. Petrochemicals have been identified as a prime driver of future growth by IndianOil. Today. thereby achieving better exploitation of the hydrocarbon value chain. Mangalore. A robust logistics model has 42
are used for bunker supplies at jetties and inner anchorages at Haldia.stringent BIS specifications. Paradeep. JNPT and Chennai.These initiatives are designed to catapult IndianOil among the top three petrochemicals players in Southeast Asia in the long term. Polymers) and function wise (Logistics & Exports). Bunker supplies are undertaken through pipeline at specified jetties at Haldia. Kandla. Port Blair. In order to penetrate the petrochemicals market effectively. Vadodara. both national and international. all major domestic customers are catered to by Indian Oil. These projects will utilise product streams from the existing refineries of Indian Oil. 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. high-value projects such as Methyl Tertiary Butyl Ether (MTBE) and Butene-1 at Gujarat Refinery. barges and tank trucks. Indian Oil is a major supplier to the key players in the detergent industry. This SBU has already established Indian Oil's LAB business both in India and abroad.Tank Trucks are used for bunker supplies at Tuticorin. Taking this into consideration and to enhance its downstream integration. in addition to regional/field set-ups to offer reliable customer service. Mumbai.
The indicative list of products from Indian Oil's various refineries is as follows: Refinery P&S Products Barauni Carbon Black Feedstock (CBFS). Every petroleum refinery is not designed to produce P&S products but Indian Oil's refineries have been planned to make a large portfolio of P&S products.
Mega Plants: Linear Alkyl Benzene (LAB) plant. 60.000 TPA of PX whilst the PTA plant has a world scale capacity of 5..000 TPA. road and sea.000 tonnes per annum (TPA). etc. Sulphur
. Indian Oil refineries also manufacture petroleum products for specific applications. 20. Currently the plant produces two grades of superior quality LAB-high molecular weight and low molecular weight for manufacture of environment-friendly biodegradable detergents. Jute Batching Oil (JBO). Haldia Mineral Turpentine Oil (MTO). Paraxylene/Purified Terephthalic Acid (PX/PTA). Panipat: It is the most technologically advanced plant in the country which manufactures ParaXylene (PX) from captive Naphtha. Sulphur Digboi Paraffin Wax Guwahati Raw Petroleum Coke (RPC) CBFS. middle distillates. Bitumen. 53. 00. Gujarat Refinery: With an installed capacity of 1. and thereafter converts into Purified Terephthalic Acid (PTA) The PX plant is designed to process 5. The petroleum products. These specific applications could be feed stock for chemical industry. raw material for specific industries and solid fuels.been the key to Indian Oil's success story and facilities have been put in place for seamless product dispatches to customers by rail. produced for specific applications are called. 'Petrochemicals and Specialties (P&S) Products'. heavier products like Furnace Oil. SPECIAL PRODUCTS Other than the regular petroleum products like light distillates.000 TPA of heart-cut Naphtha to produce 3. it is the largest grassroots singletrain Kerosene-to-Lab unit in the world. Micro Crystalline Wax (MCW). Raw Petroleum Coke (RPC).
molecules made of hydrogen and carbon atoms . It can be a straw-colored liquid or tar-black solid. Crude oil is classified by the location of its origin (e. which have been settled to the sea (or lake) bottom in large quantities under anoxic conditions.g. West Texas Intermediate.form the basis of all crude oils. The number of carbon atoms determines the oil's relative `weight’ or density. Brent. 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. both in its use and composition. green and brown hues are not uncommon. the youngest being as old as about 1 million years Although various types of hydrocarbons . petroleum may be taken to oil refineries and the hydrocarbon chemicals separated by distillation and treated by other chemical processes. The chemical structure of petroleum is composed of hydrocarbon chains of different lengths. they differ in their configurations. refiners may also refer to it as `sweet’. Dubai or Minas) and often by its relative weight or viscosity (light. which means it contains substantial amounts of sulphur and requires more refining in order to meet current product specifications. Crude oil is formed from the preserved remains of prehistoric zooplankton and algae. hundreds. Red. and asphalts. which means it contains relatively little sulphur. Sulphur
CRUDE OIL Crude oil . The oldest oil-bearing rocks date back to more than 600 million years. Sulphur. Crude oil from an area in which the crude oil's molecular characteristics have been determined and the oil has been classified are used as pricing references throughout the world. Toluene Mathura Propylene. while heavy oils and waxes may have 50. Mineral Turpentine Oil (MTO). Mineral Turpentine Oil (MTO). Because of this.Koyali LABFS. These references are known as Crude oil benchmarks
. Gases generally have one to four carbon atoms.is a remarkably varied substance.as petroleum directly out of the ground is called . Sulphur Panipat Benzene. to be used for a variety of purposes. WT. or as `sour’. Petcoke. intermediate or heavy).
3. SERVO lubricants. Mediterranean. West Africa and Latin American sources.After considering availability of indigenous crude oil. balance crude oil is required to be imported. All the division has its own significance and prime functions. Indane LPG. To gain the first-mover advantage and to create entry barriers. Kisan Seva Kendra (KSK) retail stations have been rolled out across several rural markets in the country. and developing customised products. 2. All these division are indispensable for IOCL. XTRAPOWER Fleet Card. 1. besides involving customers in our Quality & Quantity (Q&Q) drive.
DIVISIONS OF IOCL
Indian Oil Corporation Limited has mainly four division. Value-added services have been introduced at Indian Oil’s XTRACARE retail stations. so. Divisions are as follows: Marketing Refineries Pipelines Research And Development Business Development
MARKETING: Indian Oil was adjudged as one of the top service brands of the country. 4. 6. That is the reason for Indian Oil continuing to be the most preferred fuel supplier to several core industries in our country. 45
. XTRAMILE diesel. enhancing the bottomline of our customers continues to be a top priority for us. Gulf region. While we play a major role in driving the fundamentals of a resurgent India. Marketing Division has developed several power packed "energy brands" which provide customers the freedom to choose from a wider range of offerings such as XTRAPREMIUM petrol. Rural India is growing at a healthy rate. Indian Oil sources its crude oil requirement from Far East. that the organization can be run in a systematic manner. AutoGas LPG and Indian Oil Aviation . 5.all of which are leaders in their respective categories. Customers have experienced at Indian Oil touch points all over the country.
Indian Oil stood second in India with an estimated brand value of US$ 4. propylene and styrene) at Paradip has been obtained and the detailed feasibility report is under preparation. Coke Calcining. Several Clean Development Mechanism projects have 46
. de-bottlenecking. and expansion of Panipat Refinery from 12 to 15 MMTPA. Hydrocracking. In a recent in-depth analysis of brand value by a U. Catalytic Reforming. In a dynamic and yet uncertain business environment. resid upgradation project at Gujarat Refinery. which are continually updated. The strength of Indian Oil springs from its experience of operating the largest number of refineries in India adapting to a variety of refining processes along the way.Success at one level is only ephemeral while value is a long-term proposition.2 Billion. Wax Hydro finishing. which are in operation in Indian Oil refineries include: Atmospheric/Vacuum Distillation.2 million metric tonnes per annum (MMTPA) or 1. Merox Treatment. Hydro-Desulphirisation of Kerosene&Gasoil streams. On the environment front. investors and. Barauni. Dewaxing. Major projects under implementation include Naphtha Cracker at Panipat. 45. The group refining capacity is 60. in fact. The basket of technologies. Lube Processing Units. The Corporation has commissioned several grassroot refineries and modern process units. Sulphur recovery. Brand Finance.2 million barrels per day -the largest share among refining companies in India. for the entire nation. Procedures for commissioning and start-up of individual units and the refinery have been well lay out and enshrined in various customized operating manuals. And a value that has stood the test of time.K. While this is an asset that truly belongs to India. Guwahati and Digboi refineries for completion by the end of 2009. hydrocracker unit and capacity augmentation project at Haldia Refinery. all Indian Oil refineries fully comply with the statutory requirements. it is also a legacy that will motivate us to build India's first fully integrated. In-principle approval of the Board for setting up a 15 MMTPA grassroots refinery integrated with petrochemicals units (paraxylene.000 crore for capacity augmentation. The project is scheduled for completion by October 2011. bottom upgradation and quality upgradation.4% share of national refining capacity. Distillate FCC/Resid FCC. Delayed Coking.value for customers. petrol quality upgradation projects are under implementation at Panipat. transnational energy major. based research group. In addition. Indian Oil continues to stand for value . Mathura.
REFINERIES: Indian Oil controls 10 of India’s 19 refineries. Indian Oil refineries have an ambitious growth plan with an outlay of about Rs. Hydrogen Generation. etc. Visbreaking. It accounts for 40.
Barauni Refinery The Barauni Refinery in Eastern India was commissioned in 1964 with a capacity of 2.0 MMTPA by 1969 and further to its current capacity of 6. heavy ends and excellent quality wax from indigenous crude oil produced at the Assam oil fields.also been initiated. the refinery installed an Indmax Unit.70. resulting in a reduction in the frequency of accidents. it produces middle distillates from heavy ends and supplies petroleum products to NorthEastern India.the first Public Sector refinery of the country -. Indian Oil refineries will continue to play a leading role in the downstream hydrocarbon sector for meeting the rising energy needs of our country. Modernisation project of this refinery has been completed and the refinery now has an increased capacity of 0. A new Solvent Dewaxing Unit for maximizing production of micro-crystalline wax was installed and commissioned in 2003. Hydrotreater Unit for improving the quality of diesel has been commissioned in 2002. The refining capacity was increased to 3. A new Delayed Coking Unit of 1. it became part of Indian Oil in 1981. To address concerns on safety at the work place. Matching secondary processing facility such as 47
.75 MMTPA which was subsequently increased to 1. Petroleum products are supplied mainly to north-eastern India primarily through road and by rail wagons.0 MMTPA through debottlenecking projects. The refinery has also installed Hydrotreater to improve the quality of diesel.000 TPA capacity was commissioned in 1999. a number of steps were taken during the year. a coking unit. In 2003. and surplus products onward to Siliguri in West Bengal in 2003.5 MMTPA since 1901. The refinery processes only indigenous crude oil from the Assam oil fields. Diesel oil. Its original refining capacity had been 0. MotorSpirit.0 MMTPA.0 MMTPA through low cost revamping and debottlenecking. With its main secondary unit.
Digboi Refinery (Upper Assam) The Digboi Refinery in North Eastern India is India’s oldest refinery and was commissioned in 1901. With strategies and plans for several value-added projects in place. Originally a part of Assam Oil Company. Guwahati Refinery (Assam) The Guwahati Refinery in North East India -. a novel technology developed by Indian Oil's R&D Centre for upgrading heavy ends into LPG. Innovative strategies and knowledge-sharing are the tools available for converting challenges into opportunities for sustained organisational growth. The Digboi refinery produces distillates.65 MMTPA.was commissioned in 1962 with a capacity of 0.
25% wt (max. The capacity has since been increased to its present capacity of 13. etc. The capacity of the refinery was further increased to 9. The refinery was commissioned in 1965.70 MMTPA by low cost debottlenecking.5 MMTPA in 1999 by addition of new Atmospheric Unit of 3 MMTPA alongwith revamp of FCC Unit. Projects are also planned for meeting future fuel quality requirements.). Gujarat Refinery The Gujarat Refinery at Koyali in Gujarat in Western India is Indian Oil’s largest refinery. With the commissioning of the 6. Its facilities include five atmospheric crude distillation units.RFCC (Resid Fluidised Catalytic Cracker) and hydrotreater facilities for diesel quality improvement have been added. A CRU (Catalytic Reformer Unit) was also added to the refinery in 1997 for production of unleaded motor spirit. Subsequently the crude capacity was increased to 12. In order to meet future fuel quality requirements. refinery’s crude input was primarily from the Assam oil fields through pipeline. It was subsequently increased to 4. Toluene. Barauni Refinery supplies distillate products besides eastern India to northern India through a product pipeline to Kanpur in Uttar Pradesh. the refinery primarily serves the demand for petroleum products inwestern and northern India. Food Grade Hexane.0 MMTPA. FCCU and the first Hydrocracking unit of the country. The major units include CRU. Earlier. The refinery also produces a wide range of specialty products like Benzene. MS Quality improvement facilities are planned to be installed by 48
. MTO.0 MMTPA Haldia-Barauni crude oil pipelines. the refinery now receives imported crude for processing. The Gujarat Refinery achieved the distinction of becoming the first refinery in the country to have completed the DHDS (Diesel Hydro De-sulphurisation) project in June 1999. when the refinery started production of HSD with low sulphur content of 0. The company has already commissioned the facilities for MTBE and Butene-1 production.5 MMTPA by 1990 through low cost revamping / debottlenecking and addition of a hydrocracker in 1992 for maximisation of middle distillates. solvents.which is one of the major raw materials used in manufacturing detergents) from kerosene streams has been implemented. In 1978. Through a product pipeline to Ahmedabad and a recently commissioned product pipeline connecting to BKPL product pipeline and also by rail wagons/trucks. A fluidised catalytic cracking unit was added to the refinery in 1981 to increase production of middle distillates. When commissioned. LABFS.3 MMTPA by the revamping of three distillation units. its processing capacity was further increased to 7. A project for production of high value LAB (Linear Alkyl Benzene -. such as diesel and LPG.30 MMTPA by the addition of a crude distillation unit. the Gujarat refinery had a design capacity of 3.
apart from being the sole producer of Jute Batching Oil and Russian Turbine Fuel. Products like MS. was commissioned in January 1975.5 MMTPA. On 10th May 1963. This is the only refinery in the country to produce such high quality LOBS. a site for the establishment of a 2 million tonne oil refinery in Gujarat at Koyali near Vadodara Was selected on the 17th April. Petroleum products from this Refinery are supplied mainly to eastern India through two Product Pipelines as well as through Barges. It is situated 136 km downstream of Kolkata in the district of East Midnapur.75 MMTPA in 1997 with the installation/commissioning of second Crude Distillation Unit of 1. a Catalytic Dewaxing Unit (CIDWU) was installed and commissioned in 2003. HSD and Bitumen are exported from this refinery. Haldia Refinery Haldia Refinery. Capacity of the Refinery was increased to 2. Tank Wagons and Tank Trucks. meeting the API Gr-II standard of LOBS.2006. West Bengal. Diesel Hydro Desulphurisation (DHDS) Unit was commissioned in 1999. MS and HSD. near the confluence of river Hoogly and river Haldi. Refining capacity was further increased to 3. Gujarat Refinery: 1961 Onwards Following the conclusion of an Indo-Soviet agreement in 1961 February. Pandit Jawaharlal Nehru laid the foundation stone of the refinery. the then Prime Minister of India.25% wt) High Speed Diesel (HSD). With augmentation of this unit.0 MMTPA capacity. the fourth in the chain of seven operating refineries of IndianOil.
.75 MMTPA through de-bottlenecking in 1989-90. The refinery had an original crude oil processing capacity of 2. The strategic significance of this Refinery lies in its being the only coastal refinery of the Corporation and the lone lube flagship. Resid Fluidised Catalytic Cracking Unit (RFCCU) was commissioned in 2001 in order to increase the distillate yield of the refinery as well as to meet the growing demand of LPG. Refinery also produces eco friendly Bitumen emulsion and Microcrystalline Wax. for production of low Sulphur content (0. In addition. refinery is producing BS-II and Euro-III equivalent HSD (part quantity) at present.1961. for production of high quality Lube Oil Base Stocks (LOBS).
The Soviet and Indian engineers signed a contract in October 1961 for the preparation of the project report jointly.
A hydro-cracker for increasing middle distillates was also completed in 2000. USA. Currently the unit is under stabilisation. the MS Quality Improvement Project has been incorporated for production of Euro-III equivalent MS. facilities for improvement in quality of MS & HSD are under installation and planned to be completed by 2005.5 MMTPA by debottlenecking and revamping.25% wt (max). The company commissioned a two-stage desalter in 1998 for improving the on-stream availability of the crude distillation unit and a CCRU for production of unleaded Motor Spirit. USA. It receives crude from Vadinar 50
. Resid Fluidised Catalytic Cracking unit. The capacity was increased to 7.5 MMTPA as well as a Hydrocracker project has been approved for Haldia Refinery. the refinery mainly produces middle distillates and supplies them to Northern India though a product pipeline to Jalandhar. Haldor-Topsoe. the Refinery is operating at a capacity of 5. The present capacity of the refinery is 8 MMTPA In order to meet future fuel requirements. Refinery expansion to 7. 3868 crore. commissioning of which shall enable this Refinery to supply entire Euro – III HSD to the eastern region of India. The major secondary processing units of the Refinery include Catalytic Reforming Unit. In order to improve diesel quality. Panipat Refinery is the seventh refinery of IndianOil. Bitumen blowing unit. UNOCAL/UOP. Denmark. The original refinery with 6 MMTPA capacity was built and commissioned in 1998 at a cost of Rs. Visbreaker unit. a Diesel Hydro Desulphurisation Unit (DHDS) was subsequently commissioned in 1999.In order to meet the Euro-III fuel quality standards. With its fluid catalytic cracking units. It is located in the historic district of Panipat in the state of Haryana and is about 23 km from Panipat City.0 MMTPA. It processes a wide range of both indigenous and imported grades of crude oil.5 MMTPA. At present. Once Through Hydrocracker unit. Panipat Refinery was built using global technologies from IFP France. Sulphur block and associated Auxiliary facilities. Punjab via Delhi. A DHDS Unit was commissioned in 1999 for production of HSD with low Sulphur content of 0. and Stone & Webster. Referred as one of India’s most modern refineries. Panipat Refinery Panipat Refinery has doubled its refining capacity from 6 MMT/yr to 12 MMT/yr with the commissioning of its Expansion Project.
Mathura Refinery The Mathura refinery was commissioned in 1982 with an original capacity of 6.
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. as well as parts of Rajasthan and Delhi.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. India being a vast country. the petroleum pipelines form a crucial part enabling sustained availability of petroleum products in all parts of the country for economic growth. The Refinery caters to the highconsumption demand centres in North-Western India including the States of Haryana.
The LPG produced from the refinery is pumped through a dedicated pipeline to Indian Oil’s Kohand Bottling plant where bottling and bulk dispatches are done. road as well as environment-friendly pipelines.000 km. Commissioning of new projects worth about Rs. It is already operating above 100% capacity for the last four years. Chandigarh. 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. Indian Oil’s sustained pursuit and implementation of proven safety and environmental management systems have brought rich results. Uttaranchal. All operating 51
. Punjab. Over the last four decades the pipeline network of Indian Oil has grown to 9273 km with a capacity of about 62 million metric tonnes per year. Since then Indian Oil has mastered the art and technology of pipeline engineering. and sub-Zero diesel for the Indian army. It is an established fact that pipelines are preferred as a cost effective.through the 1370 km long Salaya-Mathura Pipeline which also supplies crude to Koyali and Mathura Refineries of Indian Oil. PIPELINES: In India’s infrastructure. Panipat Refinery has also developed new products like 96 RON petrol. Guwahati-Siliguri Pipeline in the year 1964. energy efficient. 2. Indian Oil. Himachal. J&K. Petroleum products are transported through various modes like rail. 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. 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.
fuels. additives. operations and maintenance including training in countries like Oman. material failure analysis and remaining life assessment and technical services to operating units. refining process. established in 1972. has state-of –the art facilities and has delivered pioneering results in lubricants technology. distillation simulation and modeling. Today Indian Oil is well placed to provide seamless services in the entire spectrum of petroleum pipelines covering techno-economic feasibility studies. The Centre has also developed and introduced many new lubricant products to the Indian market like multigrade railroad oils.
. selection. Various initiatives in the field of project management. operations and maintenance. operations and maintenance of tank farm and pump stations are other areas of expertise available with Indian Oil’s Pipelines Division. and applied metallurgy has won several awards. Railways. consultancy services in augmentation and modernization. maintenance and operational support. petroleum product and crude oil accounting. Ethiopia. biotechnology. ocean loss control. quality control. Tanker handling. tribiological and emission studies. catalysis. Kuwait and Sudan have been undertaken. etc. lube processing. design and detailed engineering. biofuels and fuel-efficient appliances. process optimization. Indian Oil 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.pipeline units have been accredited with ISO 9000 and ISO 14001 certificates. project execution. RESEARCH & DEVELOPMENT: Indian Oil's worldclass R&D Centre. testing and evaluation of drag reducers. crude evaluation. refining processes. hydroprocessing. resid upgradation. pipeline transportation.
Supervisory Control and Data Acquisition (SCADA) and application software expertise are available from project implementation to commissioning including field services. pipeline transportations. Over the past three decades. Public Utilities and Transportation. engine evaluation. pigging procedure development and analysis of pigging data. The R&D Centre's activities in refining technology are targeted in the areas of fluid catalytic cracking (FCC). Focussed research in the areas of lubricants and grease formulations.
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 new subsidiary markets the intellectual properties developed by Indian Oil R&D Centre. optimization of operating parameters. evaluation of licensors' process technologies. Indian Oil grossed its first US$ 1 billion in revenues through initiatives in new businesses in 2004-05. development of novel processes and simulation models. BUSINESS DEVELOPMENT: Indian Oil’s has drawn up a comprehensive business plan to seek growth beyond existing business through a three-pronged approach: INTEGRATION – Upwards into Exploration & Production (E&P) and downwards into Petroleumicals Diversification into Gas Diversification into Gas Expanding the existing geographical boundaries of our market through export of products and services besides setting up downstream marketing ventures overseas.In FCC. Expanding Horizons Indian Oil has set its sight to reach US$ 60 billion revenues by the year 2010-11 from current earnings of US$ 34. technology and innovation. Indian Oil has launched Indian Oil Technology Ltd. The road map to attain this milestone has been laid through vertical integration –
With a vision of evolving into a leader as technology provider through excellence in management of knowledge.44 billion. 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 Indian Oil as well as other companies. Indian Oil's R&D Centre is fully equipped to provide technical support to commercial hydrocracker units in the evaluation of feedstocks and catalysts.
Indian Oil grossed its first US$ 1 billion in revenues through initiatives in new business in 2004-05.26 MMSCMD (million metric standard cubic metres per day) of gas. to name a few. Indian Oil’s Regional Office in Dubai. In natural gas business. Spreading Wings The Corporation has launched several joint ventures in partnership with some of the most respected Corporates from India and abroad -. Overseas ventures include 2 blocks in Sirte Basin in Libya and Farsi Exploration Block in Iran. in consortium with other companies. The Corporation has also proposed partnering Petropars.000 crore (US$ 5. IndianOil also proposes to convert the on-going Paradip refinery into a refinery-cum-petrochemicals complex to strengthen its presence in the sector.
In exploration & production (E&P). in jointly developing gas blocks in the North Pars fields of Iran. and was awarded 11 exploration blocks. It has acquired participating interest in on-shore blocks in Assam and Arunachal Pradesh region. The Corporation is also exploring opportunities to acquire a suitable medium-sized E&P company to quickly consolidate its upstream operations. it has now finalised an import deal for 1. SERVO lubricants are
. a subsidiary of National Iranian Oil Company. which is coordinating business expansion in the Middle East. Indian Oil has participated in the first three rounds of NELP (New Exploration Licensing Policy) in India. Indian Oil is already marketing 5.7 billion) investment is already underway. 25. Petronas.Lubrizol. Oiltanking GmbH.75 million tonnes of LNG per annum with Iran for supplies from the year 2009 onwards. The commissioning of the world’s largest single train Linear Alkyl Benzene plant at Koyali refinery in August 2004 and the on-going integrated Paraxylene/Purified Terephthalic Acid (PX/PTA) plant and a world-scale Naphtha Cracker with downstream polymer projects are part of this plan. a master plan envisaging Rs.forward into petrochemicals and backwards into exploration and production of crude oil. TRANSNATIONAL PRESENCE: To emerge as a transnational energy major. Mauritius and UAE and is simultaneously scouting new opportunities in energy markets in Asia and Africa. besides diversification into natural gas business and globalization of our operations. Marubeni. Nyco SA.In petrochemicals. Indian Oil has set up offices in Sri Lanka. To augment its business in the sector. Has commenced blending of SERVO lubricants through contact blending arrangements for the first time recently.
Indian Oil's sincere commitment to Quality. Nigeria. Nepal. Indonesia. Maldives. Safety. Abu Dhabi. Indian Oil has been lending its expertise for nearly two decades to various countries in several areas of refining. Iraq. transportation. marketing. Bahrain. Ethiopia. Bhutan. Malaysia. The 18th largest petroleum Company in the world. Tanzania. Malaysia. Bhutan. Kuwait. These include Sri Lanka. Bangladesh. Indian Oil is well on its way to becoming an integrated. Sudan and Zambia. Kyrgyzstan.
. transnational energy corporate. training and research & development. Health and Environment is reflected in the series of national and international certifications and awards earned over the years.being marketed in Dubai. Bahrain. Mauritius. Algeria. Kuwait. Sri Lanka. etc.
In Kanpur division there are six field officers. whether fuel available in retail outlets is of good quality or not or they sell adulterated one. Mainly.PROFILE OF KANPUR MARKETING DIVISION
Kanpur divisional office mainly concern with marketing of fuel. Kanpur has three field offices namely Kanpur-I. Under retail sales two areas are to be considered i. Jalaun. second is engineering and third is finance. It is responsible for effective marketing and inventory management of fuel. Jhasi and Fatehpur has only one field office. one in Jhasi and one in Fatehpur. In Kanpur divisional office fuel is available for marketing by the pipelines services of IOCL. Field officers are suppose to monitor the activities of retail outlets. Kanpur-II and Kanpur-III.e. the pipeline from where this division is able to supply fuel in retail outlets is Barauni-Kanpur-Haldia pipeline. By Kanpur division average selling of 8000 KL of Motor Spirit (petrol) and 30. one in Jalaun. Here. whether they are selling at the right price or not . All these activities are control by field officers. Barauni–Kanpur Pipeline (BKPL): It is a cross-country product pipeline originating from Barauni in Bihar and terminating at Kanpur/Lucknow in Uttar
. government regulatory act. In this division comprise of three main functions. These retail outlets and SKO agencies are supervised by field officers. Three in Kanpur. sales and field marketing. Pipelines are the transporter of the fuel. first is retail sales. in this division administrative work is to be taken up like quality control. inventory management. and product indenting and clearance activities..000 KL High Spirit Diesel (diesel). Other than Kanpur. Kanpur divisional office is spanning over 9 districts under which 277 retail outlets (petrol pumps) and 58 SKO (Superior Kerosene Oil) agencies are there.
Straight Run Naphtha (SRN).It transports High Speed Diesel (HSD).petroleum products from Barauni Oil Refinery are transported through this 737 KM long pipeline which traverses through the states of Bihar and UP. Mineral Turpentine Oil (MTO) Light Diesel Oil (LDO) and ultra low sulphur MS/HSD. Mixed Run Naphtha (MRN).5MMTPA upto Patna and 1.Pradesh (UP). and two terminal stations at Kanpur and Lucknow the transportation capacity of BKPL is presently 3.
With originating Pump Station at Barauni .Part of the Eastern Region of Indian Oil Pipeline Division. The pipe line unit follows in operation and maintenance the stringent norms for quality management and environment management systems conforming to ISO 9001. till 2006. 2000 and ISO 14001:1996 and is accredited to both systems. Mughalsarai & Allahabad. Superior Kerosene Oil (SKO). intermediate boosting station cum Tap-off-Points (TOP) at Patna. Motor Spirit (MS). it is operated and maintained by IOCL.8MMTPA onwards.The products from Refinery are delivered to the Marketing Division at the TOPs who in turn further transport through Road and Rail to consumption centres. The certifications are valid for ISO 9001 till 2007 and for ISO 14001. To meet the petroleum products demand of Bihar and Central & Eastern UP .71lakhs.
Managerial Hierarchy of Kanpur Divisional Office:
.The annual turn over of the unit for yr 200304 was Rs 9218.
SANJAY Kr.HAMANT KS Asst. R. PAL
FieldOffice. Manager (RS)
ENGINEERING Manager (ENG. Manager (RS)
FieldOffice. Officer Mr.MARKETING) Mr.Manager(RS)-II Mr. SANJAY MEHRA
Engineering Officer-I Mr.) Mr. VISHRAM SINGH
Engineering Officer-I Mr.KAUSAL Kr.KNP-II Mr.Manager(F. OMKAR PAL Dy. PANKAJ
FieldOffice. JALAUN Mr. ABHISHEK BHATNAGAR
RETAIL SALES Dy. K.TRIBHUVAN PANDEY Asst.Manager(RS)
FINANCE Acct.TANAY KUMAR Dy. VIMAL CHANDRA Asst.KNP-III Mr. Manager (RS)
FieldOffice. OM PRAKASH SHARMA
RETAIL SALES Dy.KNP-I Mr.Manager(RS)-I Mr. RAVI KANT RATHORE Sales Officer (RS)
FieldOffice. JHS Mr.DRSM Mr.FATEHPUR Mr.
amongst others. aviation fuel stations. Indian Oil is fully equipped to handle small to large-scale infrastructural projects in the petroleum downstream sector anywhere in the country.Indian Oil provides a wide range of marketing services and consultancy in fuel handling. 59
. etc. distribution. retail business (non-fuel alliances) and SERVO technical services. Marketing Division is illustrated in this section. LPG bottling plants. filling plants.
The wide network of services offered by Indian Oil. terminals. steel. textile mills. Indian Oil's fuel management system to bulk customers offer customized solutions that deliver least cost supplies keeping in mind usage patterns and inventory levels. commercial/reticulated LPG. LPG Business (nonfuel alliances). Indian Oil'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. Indian Oil Aviation Service. loyalty programs. storage and fuel/lube technical services. With a formidable bank of technical and engineering talent. total fuel management/ consumer pumps. fertiliser. 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. pipelines. have set up depots. Our project teams have independently or jointly as a consortium. Cutting edge systems and processes are designed around one simple belief-to provide valuable customers with an unbeatable edge in their business. which includes. gas plants.
This gigantic public sector oil company services more than 53 percent of th country’s petroleum needs. 93 aviation fuel stations and 79 LPG bottling plants in addition to the 2. Lubrication Survey for Recommending Lubricants in Existing Plants. As with its other strengths.000 sales points serviced by more than 169 bulk storage terminals.000 distributors of the Indane cooking gas of Indian oil. Indian Oil has a substantial presence in the vital aviation sector with a huge share of 68 percent of the market for the products catering to international and domestic carriers alike. Setting Up and Operation of Lube Blending Plants. summarise the massive marketing strength of the company. It was the first company to introduce the Hydrant Refueling system in Mumbai. It also set up the first state of the art LPG import facility at Kandla with Cryogenic Storage and also introduced for the first time mobile LPG bottling in the country. Setting Up and Operation of Hydrant Refueling System. Setting Up and Operation of Marketing Terminals. It has been constantly upgrading its retail marketing efforts by providing additional facilities and value added services to its customers Millions of households throughout the country are serviced through more than 4. Indian Oil has been the first in many of its marketing initiatives as well.
HUMAN RESOURCE POLICIES
.Main Marketing policies of IOCL regarding Techno-Economic Feasibility are as follows: Up gradation / Automation of Existing Oil Terminals. Marketing efficiency of IOCL: More than 21. in addition to defence services and private aircraft operators. installations and depots.500 sales points owned by its recently acquired subsidiary IBP. Development of New Grades for Specific Applications.
playing a national role in oil security & public distribution. Dealers. the organisation also conducts various training programmes pertaining to Safety. diversified. the company has endeavoured to protect human lives by deploying state-of-the-art-technology. Besides. Despite dealing with hazardous processes/products. Hazardous Waste Management and Environment Protection. It also shares information on different issues under the ‘Right to Information Act’ with various interested parties and stake holders. integrated energy company. with national leadership and a strong environment conscience.
. Exhaustive Disaster Control Plans have been developed at each major location.Vision of Human Resource department of IOCL is “a major. trans-national.
Ensure that the organization is not complicit in human
rights abusesIndian Oil conforms to human rights principles and has ensured that no violation has occurred during the year. which has the approval of the concerned District Authorities. Issues raised by other stakeholders such as Contractors. The organization actively carries out Mock Drills at various sites in order to familiarize employees with the steps they should take in the event of fire. Regular maintenance of equipment is taken up for safety & security of the employees and the inhabitants living in the surrounding areas. Health and Environment such as LayOff Protection Analysis.” Followings are the policies of HR department of IOCL . The organization has an approved policy for handling grievances of employees and customers. Vendors and surrounding villagers and public are also attended promptly. First Aid etc.that are prevailing in the organization :
Support and respect the protection of internationally
proclaimed human rights – The Organisation continued subscribing to internationally proclaimed human rights.
Upholding the freedom of association and effective recognition of the right to collective bargainingFreedom of association is available to all 29862 employees. Similarly. The company also signed a Memorandum of Understanding pertaining to Modification of Leave Rules and Modification of Rehabilitation Option under the Superannuation Benefit Fund Scheme with the recognized unions of Marketing Division during this period. Earlier. Overall there are 21 recognized unions representing workmen in various Divisions and one common Officers’ Association for all officers in Indian Oil. The company continued to impart training on Gender Sensitivity to employees to create a conducive working environment. 1926. On the website www. a number of meetings were held at Divisional as well as local level with the collectives. The organization has established policies and practices through which the collectives exercise the freedom of collective bargaining on issues of common interest and sign Long Term Settlements on salary and pay related issues and perks.com there is also a platform titled ‘Personnel Touch’ of Director (HR) through which any employee can directly communicate with Director (HR) on various issues. the organization had initiated six meetings with the Officers Association representatives and one meeting with the 21 recognized unions at the corporate level. growth strategies and business plans with the collectives by way of Communication Meetings.indianoilxpress. MOU was signed with the recognized unions of other than Marketing Division. During the year 2006-07. 62
In addition. which were web cast live to Indian Oil Offices spread over the country. which is promptly replied to. The organization also proactively shared details of performance. Using this soft medium. The Chairman also communicates with all the employees through a monthly bulletin called ‘Straight Talk’. where the organizational issues are discussed. In order to have participative management and effective communication channels with our collective bodies and the employees. the following initiatives are taken: Regular structured meetings are held with the collectives. These collectives’ bodies are registered under the Trade Union Act. the Chairman also solicits views/suggestions of employees since he accesses all his e-mails and replies to each personally. Directors of each Division write to employees of the Division through columns of Divisional Journals and interact with them freely during Open Forums held during their many visits to various locations of the company.
The organization supports effective abolition of child labour The organization has prescribed the minimum age limit of 18 years for employment/contract labour.
One of the largest employers of Women in the public sector . It does not buy products / services from industries deploying child labour. There is no discrimination for employment/growth on the basis of caste. Provident Fund and coverage of contract labour underEmployees State Insurance Scheme. Govt.7. Scheduled Tribe. The organization has made it compulsory for the contractors to cover their respective contract labour under accident insurance. and Other Backward Classes & Physically Challenged Persons followed scrupulously. gender.
Organisation promotes elimination of discrimination in respect
of employment and occupationIndian Oil is an equal opportunity employer. colour. Workmen’s Compensation Act etc.2007. Organisation provides equal opportunity for training and development to different strata of employees. The payment to various contractors is made subject to their fulfilling the aforementioned conditions besides other statutory obligations. Organisation supports the elimination of all forms of forced and
compulsory labourThe Company believes in voluntary labour and during the year no instance of forced/ compulsory or bonded labour has come to light.73% women employees as on 31. religion or region.
. There are in-built provisions in the company policy for ensuring payment of minimum wages. It has been steadily deputing them for trainings outside the organization and has won maximum number of laurels for Women Developments. From time to time the organization also conducts surprise checks and audits to monitor timely and correct payment to contract labour. instructions on Scheduled Caste.3.
an integral part of our functioning Ensures safety during transportation/storage/use of products the organisation is subjected to energy/environment audits by the Govt. which are headed by an organizational level leader known as Apex Level WIPS Leader. All our refineries. Each WIPS Cell is steered by a women leader known as WIPS Leader. Pipeline’s Regional Offices. Development of green belts and ecological parks . Indian Oil has established a network of seventeen Women’s Cells under the aegis of the “Forum of Women in Public Sector” (WIPS) at all Refinery Units/ Regional Offices of the Marketing Division. entire pipelines network & large no. agencies. IndianOil has 17 WIPS Cells. R&D Centre and Head Office of Refineries. The Forum of Women in Public Sector functions under the aegis of Standing Conference on Public Enterprises. In all. the organization has been using technology that minimizes environmental impact.
. promoting quality products that reduce pollution as well as promoting research for environment protection. This Cell functions under the active guidance of Head of Human Resource Department of the Unit / Region concerned.
organization adopts a Environmental Challenges-
Despite dealing with hazardous material /processes /products. Pipelines and Marketing Divisions. The company is proud to mention that it encouraged two of its executives to compete for top positions in the forum of professional women at national level called the Forum of Women in Public Sector (WIPS). Indian Oil’s R&D identified by MOP&NG as Nodal Agency to take up Hydrogen research programme. of the Retail Outlets have Environment Management Systems accredited to ISO-14001 Fully comply with the prescribed Minimal National Standards (MINAS) and other environmental standards. which functions under aegis of Standing Conference on Public Enterprises (SCOPE) comprising of members from 89 PSUs.
. Auto LPG Dispensing Stations have been set up in various States and Union Territory of Chandigarh. Took up distribution of condoms for truck drivers through our Retail Outlets as also reading material on ‘Aids prevention’. environment friendly network of pipelines network of more than 9273 KM the largest in India. Organization encourages use of environment friendly LPG as automobile fuel (Auto LPG). Consistent and concerted efforts to achieve quality of treated effluent and atmospheric emissions better than stipulated in the norms. Minimizing environmental impacts arising out of our operations and use of our products/services by constantly upgrading our technology. Tertiary Treatment/Reverse Osmosis plant for Treated effluent has been installed and commissioned at Panipat Refinery with the primary objective of conserving fresh water resources. 100% Compliance to stringent norms for effluents & emissions. The company also launched green fuels for use in Taj Trapezium & also introduced piped gas supply in the city including donation of 500 improvised Cycle Rickshaws.
Recharging ground water through rain Water harvesting is carried out at our units and installations. Ensured good health of employees with regular health check up and neighbouring communities
Workshops held for housewives educating them about ‘Safe use of LPG’. Special efforts to protect Taj Trapezium . Deployment of Zero Effluent Discharge Technology at Panipat Refinery since commissioning in 1998.
The organization initiates promotion of greater environmental
responsibility Organisation has deployed advanced state of the art technology in all its Refinery Units and Marketing & Pipeline Installations. Transportation of petroleum crude and products through extensive.extensive plantations taken up by the organization.
family planning camps. cancer detection. blood donation. Assam serves as the District Hospital.200 Lakhs is met by the corporation towards the running of hospital services.
Health check-up. An ISOSIV unit has been installed and commissioned at Guwahati refinery for production of lead free petrol. Panipat. etc are organised. education. environment protection.
Organisation should encourage development and diffusion of
environment friendly technologiesSome of the advanced technologies used by the Indian Oil are: Leveraged Fluidized Catalytic Cracking Technology for minimizing residue. The Community Development Programme adopts a multidisciplinary approach incorporating health. Hydro Cracker Units commissioned at Gujarat. 200 hundred bedded AOD Hospital at Digboi.75% of the net profit of previous year is earmarked towards donations/contributions and community development activities. About 25% of Community Development budget is spent towards welfare of Scheduled Caste and Schedule Tribe. Panipat and Haldia Refineries for production of extra low and ultra low sulphur Diesel. pre & post natal check up. family welfare. CRU is in use at Gujarat and Haldia Refineries since inception. A modern 50-bed hospital for treating respiratory diseases was set up near Mathura Refinery as a goodwill gesture to the community. As a measure of discharging Corporation's social responsibility towards society. Diesel Hydro Desulphurisation at Gujarat. Panipat and Mathura. immunization.
. Mathura. Catalytic Reformers Units (CRU) at Mathura. empowerment of women and other marginalised groups. Barauni & Digboi Refineries for supplying lead free Motor Spirit. an annual expenditure up to 0. drinking water and sanitation. An annual expenditure of about Rs. eye-care camps. Assam Oil School of Nursing set up by Assam Oil Division provides ‘Diploma in Nursing” and “Midwifery”.All Refinery hospitals render regular extensive health care for the employees and their family members.
Launched for worldwide use.
Various energy conservation measures in our Refineries result in reduction in fuel consumption. which are in various stages of implementation. In order to reduce green house gas emissions projects have been identified in our Refineries. Indian Oil R&D Centre developed the INDMAX Technology. Indian Oil’s R&D identified by MOP&NG as Nodal Agency to take up Hydrogen research programme. Mathura & Panipat Refineries for improvement of Diesel quality. Auto LPG Dispensing Stations (ALDS) set up throughout the country for supply of LPG as auto fuel. the technology achieved its commercial success 67
. Motor Spirit Quality upgradation units are installed at Gujarat and Haldia Refineries to produce Motor Spirit of EURO-III equivalent quality. Diesel Hydrotreater Units at Barauni. Digboi. Hydrotreater Unit in Guwahati refinery for Improvement of Kerosene and Diesel quality. for the first time in the world for conversion of low value heavy residues into high value LPG. thereby reducing atmospheric emissions.
R&D centre has made extensive efforts for development of Bio Diesel transesterfication technology and ethanol gasoline blends. • • • • • Environment friendly products developed and launched: Low Sulphur HSD Ultra Low Sulphur HSD Un-leaded Motor Spirit/Petrol Low Benzene MS LPG as auto fuel
Premium grade MS and Diesel launched for efficiency improvement with the following trade names: • IOC Premium in MS • Diesel Super in HSD International Class R&D Centre at Faridabad upgrading products & technologies.
Acoustic enclosure provided for DG sets at Panipat.including extortion and bribery The organization has adopted Conduct. Institution of Engineers.
Numerous training programmes and workshops are held for disseminating knowledge about organisational systems. Awarded the prestigious National technology Award. thereby minimizing adverse effect on environment. Checks and measures are in-built in the organizational system that help in preventing corruption.
The organization should work against corruption in all its
forms. The company has developed indigenously Oilivorous bacteria that decompose oily & acidic sludges. Faculty assistance was mainly provided by Directorate General Factory advice Services an Labour Institutes (DGFASLI). Printed Booklets of these rules were circulated to the concerned employees. An employee violating the code of conduct and ethics is subjected to investigation and appropriate action is initiated against him based on result of investigation. Discipline and Appeal rules that bar acceptance bribes and describe it as a misconduct. as also for checking corruption. Indian Oil received the Safety Innovation Award 2007 instituted by safety & Quality Forum.
Training programme for Internal safety [professional was organized recently in December 2007 at our prestigious IiPM. Ambala and Bijwasan installations of our Pipelined Division to achieve further 20dB reduction in noise level. India for the third consecutive year.
. 2004 for successful commercialization of this technology.with the setting up of INDMAX Unit at Guwahati Refinery of 1 Lakh Tonnes per annum capacity.
. for the sites. fees and charges will be charged at commercial rates. maximum up to 60 meters. service apartments. restaurant. in Agriculture Zone and will be stand alone project. The commercial area will be for shopping (25% FAR). related policies of IOCL are as follows: Land Use Zone: . which are located outside Urbanizable area and where no development plan has been finalized and the colonies are being considered in accordance with the policy of the Industries Department to promote setting up of Industrial Estate in Backward Blocks. The FAR for commercial area will be 150% ground coverage 50% height. community contents. The residential component will be housing for the owners of industrial properties and dedicated housing for the workers on rental basis. banks. multi story industrial sheds and IT buildings. some govt.e.The colony is allowed in the Urbanizable Conforming Zone i. RELATED POLICIES
IOCL also has some government related policies for the improvement and diserversification of the organization. Other Parameters: Industrial area shall be in the form of industrial plot. in the industrial Zone. hotels.
The colonizer will not be allowed to sell the plots/flats to people other than the industrial units/workers in the industrial units. The EDC will be worked out by the HUDA for the areas, where the proposed colony forms part of the Urbanizable Zone, however, for the sites, which are located outside the Urbanizable Zone and where no Development Plans has been finalized and the colonies are being considered in accordance with the policy of industries Department to promote setting up of Industrial Estate in Backward Blocks, the colonizer himself will be responsible to provide the infrastructure mfacilities at his own cost to the satisfaction of the Director. The layout plan shall be drawn as per the norms of T & CP Deptt.
The Development works will also be taken up by the developers keeping in view the requirements of the Industrial Estate and will get approved from T & CP. Deptt The department shall also take care of the development around the Industrial Estate and if any, integration is required the same shall be taken care of by T & CP Deptt. The developer shall also make sufficient arrangement for rain water harvesting and recharging the ground water table to meet its own requirement. The developer shall also take necessary measures for setting up of effluent treatment plant and its appropriate use/disposal after proper treatment. The developer shall also indicate solid waste management measures as directed by the Haryana State Pollution Control Board. The benefit for the area falling in master plan roads, green belt will be followed as per provision envisaged in the residential colony. 70
ATTRACTIVE FEATURES OF IOCL
The company has many attractive features which make it to dominate on its competitors. Its attractive features are as follows: 1. 2. 3. 4. 5. 6. 7. 8. 9. Crude Distillation Unit (CDU/01) Indmax Unit (new unit) Isosiv Unit (new unit) Delayed coking unit (DCU/03) Hydrotreater Unit Hydrogen H2 (new unit) Nitrogen N2 (new unit) Effluent Treatment plant (ETP) Oil Movement & Storage (OM&S)
CRUDE DISTILLATION Atmospheric distillation of crude oil is done in the crude distillation unit to obtain light; medium and heavier fractions of products called gasoline, kerosene gas oil and reduced crude. These fractions are stored in intermediate tanks and either utilized for blending into finished products or as feedstocks to the subsequent processing units. The Indane Maximization (INDMAX) technology developed byR&D centre of Indian Oil installed at the Refinery is designed to achieve LPG yield as high as 44% through Catalytic Cracking of residual feedstocks like Reduced Crude Oil, Coker Fuel Oil and Coker Gasoline. The INDMAX unit enables Guwahati Refinery to upgrade all its residual products to high value distillate products and make it a Zero residue Refinery. ISOSIV UNIT Molecular sieve technologies being used for production of lead free petrol for the first time in India at Guwahati Refinery. The process separate Octane rich MS (Motor Spirits) components (Isosivate) from the feed Naptha.The fuel obtained and formed; from ISOSIV unit renews Indian Oil’s commitment. Upholding the corporate Mission “to help enrich the quality of life of the community and environmental consciousness along with compliance with all the statutory rules obligations and regulations for the environmental protection, under the various Acts and decrees from the MOE&F, GOI (Ministry of Environment & Forests, Govt. of India”) DELAYED COKING UNIT: The heavy fraction from the crude distillation unit via reduced crude is utilized as the feedstock in the delayed coking unit, for upgrading into lighter distillates and also to produce raw materials coke (RPC). The distal late fractions obtained from this unit and blended for production of finished products. Petroleum cokes produced in this unit are ultimately as a feedstock for calcine coke production, which is a very high product, especially the needle coke variety. NAPTHA SPLITTER: The Naphtha Splitter is designed to produce special cut (110-145) degree centigrade boiling range reformer naphtha which is used by Bongaigaon Refinery &petro-chemical (BRPL) Limited to produce DMT/Polyster staple Fiber. It process the entire production of light and heavy gasoline from the crude distillations un and produce four product stream viz LPG, light Naptha, Reformer
on account of large under-recoveries. A Product Pipeline from Guwahati Refinery to Siliguri (GSPL). However. Cylinders. but to ensure avail-ability of land for new project they are now being bottled in Mirza and North Guwahati both located on the outskirts of the Guwahati city and is being marketed under the Indian Oil Trade name “INDANE”. they were dispatched from the refinery.4% YoY) and discounts from refineries set off part of the losses.LPG is generally bottled in 14.
Performance of Indian Oil Corporation: IOC reported a net loss of Rs14. The product Reformer Naphtha is transported by railways to its end-users a raw material in mainland India.4% YoY.9b (up 78. Fuel marketing under-recoveries (net of upstream sharing and refinery discounts) of Rs49b was up 53.Naphtha and Heavy Naptha. and non issuance of oil bonds before the quarterly results.8b. PRODUCT PIPELINE FOR DESPATCH OF PRODUCTS: The finished products are dispatched from the refinery locally by tank Wagons and tank Lorries to meet the requirements of North-East in particular. Stronger than expected refining margin softened the blow. LIQUIFIED PETROLEUM GAS (LPG): The production of LPG liquefied petroleum gas commenced in the Refinery in 1971. But to meet the commercial needs they are also being bottled in 17 kg cylinders and to meet the needs of the rural & hilly /mountainous regions are especially bottled in 5kg cylinders.2 kg. was commissioned in oct. Upstream players sharing of Rs29. This product pipeline is the first public sector product pipeline.4b (before extra-ordinary income) for 1QFY06 as against loss of Rs542m last year. a distance of 426km. 73
. within its vicinity. Earlier.1964 through which the finished products after meeting requirements of India’s North-eastern region are pumped to marketing instillation at Siliguri for onward dispatch to various destinations. thanks to historic high crude prices and sticky domestic retail prices. Net profit including extraordinary gains (on account of sale of ONGC stake) was Rs17.
16/bbl last year) cushioned losses caused by under-recoveries.0x FY08E.9/bbl) is sustainable. valuations are attractive.8b. Inventory gains at Rs2. Inventory gains at Rs2.7/bbl (as against US$6. lack of clarity on policy to tackle incremental losses (given the higher crude prices) would continue to impact stock performance.4% YoY) and discounts from refineries set off part of the losses.
Pipeline earnings remain stable
. is comparable to Singapore GRM of US$8. Sector wise performance :
Fuel marketing losses continue to hurt
Fuel marketing under-recoveries (net of upstream sharing and refinery discounts) of Rs49b was up 53.4/bbl. nonissuance of estimated Rs34. given the limited new capacity in the pipeline and robust demand growth.7m tons.6b (our estimate) of oil bonds pulled down performance. GRM of about US$8. wiping off 1QFY07 losses. Global refining margins are on an extended upswing.5/bbl (as against 1QFY07 GRM of US$8.1b was up 52% YoY.7/bbl (as against US$6. Upstream players sharing of Rs29. We expect oil bonds to be issued in 2QFY07. However. thanks to historic high crude prices and sticky domestic retail prices.7/bbl.3% YoY. Pipeline thruput was up 5. we believe.16/bbl last year) cushioned losses caused by under-recoveries. While oil bond issue over the next couple of months would wipe off the losses. We believe Singapore complex margins of US$7.1b were up 52% YoY. Strong refining margin of US6. Adjusting for (industry) average refinery discounts of US$1. However. EBITDA contribution from pipeline was largely flat at Rs5. while market sales volume was up 2.9/bbl and other PSU refineries.1m tons.1% YoY at 11.non-issuance of estimated Rs34. Continued strong refining margins in 2QFY07 could drive earnings upgrade. at a P/E of 10.9b (up 78. the quantum of swing in inventory has been moderated after inventory valuation methodology was changed to weighted average from FIFO by IOC last year
Refining margin buoyancy continues
Strong refining margin of US6.5% at 13. We believe stronger than expected refining margins could provide a positive earnings surprise.8x FY08E and an EV/EBITDA of 6. However. On the operations front.6b (our estimate) of oil bonds pulled down performance. which is likely to continue for the next 48 months. refinery thruput at 10m tons was up 9.4% YoY.
EBITDA contribution from pipeline was largely flat at Rs5.8b. ranging from light distillates.
IOCL has many operations.
Operating parameters improve
On the operations front. naphtha and
. partly on account of commissioning of 6mtons of new capacity at Panipat. such as LPG.1m tons.
New refining and petrochemical capacity to drive volume growth
Commissioning of 6m tons of new refining capacity at Panipat along with PX/PTA complex (550ktpa of PTA and 350ktpa of PX) is expected to drive volume growth over the next 3 quarters. We expect thruput to further rise in the coming quarters as the full impact of the expansion flows through.1% YoY at 11. though pipeline thruput was up marginally by 5. Main operations of the organization are as follows: Refineries Indian Oil group of companies owns and operates 10 out of India’s 19 refineries with a combined refining capacity of 60. from which it produces more than 60 types of petroleum products.2 million tonnes per annum. Strong margin environment on both refining and petrochemical front (GRMs are at a new high.5% at 13.3% YoY. while PX spread over naphtha is at a historic high) augurs well for IOC. We believe demand growth. impact of higher crude thruput and Reliance winding down its retail thruput in June 2006 could have driven market sales growth. Market sales volume was up 2. Indian Oil refineries process all major indigenous crude oil plus over 36 types of imported crude oil. these operations makes the organization to run with nice pace. refinery thruput at 10m tons was up 9.7m tons.
72 million metric tonnes per annum as on March 2007. the Indian Oil R&D Centre at Faridabad has completed over 35 years of glorious service to the nation. distributors etc. The company’s pipelines are well positioned to supply petroleum products from its refineries and India’s ports to high demand states in northwestern India. Indian Oil has invested in secondary processing facilities to produce these higher value added products. The total network of pipelines is 9273 km with a capacity of 61. 76
. The company distributes its products directly to bulk customers and to retail customers via a network of retail outlets and dealers/distributors. such as HSD and superior kerosene oil. Indian Oil refineries are fully equipped to meet the current environmental norms in relation to product specifications in the country and are being constantly modernized and upgraded to be able to meet all future environment regulatory requirements. IndianOil’s pipelines include 3987 kilometers of crude oil pipelines and 5286 kilometers of product pipelines. To meet the growing domestic demand for middle distillate products. to heavy ends. Research And Development Established in 1972 for the development of lube as well as refining process technologies. It is one of its kind in Asia and has grown into a major technological development center of international repute in the down stream areas of lubricants.motor spirit. ship tanker. The flexibility of processing capability allows Indian Oil to vary both its crude oil inputs and petroleum product outputs to achieve the company’s desired production mix. Products are transported to the distribution points by pipeline.
The company’s overall distribution network encompasses over 32.500 sales points incorporating its own franchise as well as independent outlets. Marketing Indian Oil and its subsidiaries account for 47% petroleum products market share. pipelines and refining processes. consumer pumps. such as furnace oil and low sulphur heavy stock. Pipelines Indian Oil Corporation owns and operates the largest network of crude oil and product pipelines in India. rail tankers and road tanker trucks. the substantial majority of which are governed by dealership agreements.
Indian Oil markets around 800 grades of lubricants under the brand name “SERVO” based on its own R&D technology and are one among the six worldwide technology holders of marine oil technology. i-Max. OiliVorous-S. the Centre has taken up a pilot project for developing infrastructure for fuelling neat hydrogen as well as H2-CNG blended fuel and is currently in the process of setting up a Hydrogen-CNG dispensing station at COCO retail outlet in Delhi. It has extensive laboratory and pilot plant facilities to successfully pursue projects in lube. predominantly utilising the streams available in various refineries. OverseasDownstream Marketing
. fertilizers and transportations. its share in the total energy basket is expected to reach 20% by the year 2025. Its rich reservoir of highly qualified/ specialized scientific and technical manpower has elevated this centre to global status. INDMAX. Exploration And Production Vertical integration along the entire hydrocarbon value chain is a key strategy for achieving growth in the hydrocarbon business. Gas With gas emerging as preferred fuel for the utilities sectors viz.Developing more than 2500 formulations over the years. the vibrant and innovative research at the Centre has led to many technological innovations. Having an effective IPR portfolio of 195 patents including 48 US patents. it has successfully perfected the state-of-the-art lube formulation technology meeting latest national and international specifications with approvals from major original equipment manufacturers. INDETreat/INDESweet are few of them.. Petrochemicals Indian Oil has finalised a master plan to enter into the petrochemical product line by integrating its core refining business with petrochemical activities. refining and pipeline areas making it a unique technology centre. Indian Oil is attempting vertical integration through E&P initiatives to secure its own equity oil so as to safeguard its business interest against the highly volatile international oil market. The company has taken several initiatives to harness these growth potentials.. The Centre has also taken the lead in the development and commercialisation of biodiesel. some of which have received prestigious national and international awards. Being the nodal agency of the hydrocarbon sector for implementation of the Hydrogen energy programmes in the country. power.
political and manufacturing landscape of the region. Indian Oil’s own performance in the financial year 2006-07 was a case of 'exceeding expectations' with both turnover and profits reaching new highs.000 crore were put on stream during the year. and the refineries as well as pipelines network enhancing their capacities beyond 60 MMTPA and registering record throughputs. right from mobilising capital to engaging in subtle diplomacy.Indian Oil has successfully graduated from a product exporter to a transnational energy company with establishment of two wholly owned overseas subsidiaries. Among new businesses. product sales registering a quantum jump. Its quest for energy will create new economic and strategic challenges. New projects worth Rs. Lanka IOC PLC and Indian Oil (Mauritius) Limited (IOML). the petrochemicals and natural gas verticals and
PROMOTERS OF IOCL
An energy self-sufficient India can alter the economic.
it is attempting quantum growth in LNG imports. With India’s energy needs projected to grow by 40% in the next five years.
Indian Oiltanking Limited
28. by leveraging its downstream capabilities to form joint venture partnerships with reputed enterprises overseas. Indian Oil is working to emerge as a major player in the petrochemicals business by the year 2011-12. predominantly from African and CIS countries. with 80 MMTPA refining capacity in its fold. and nodal research in alternative fuels. a future the 31. In marketing.08. France: 50% Area(s) of Operation To blend. the future is indeed full of promise for Indian Oil. Indian Oil is set to leverage the combined strength of over 32. Joint Ventures Name of JV Date of Promoters & Incorporation Equity Avi .000 km mark in the next two years. infrastructure and marketing. which provides strategic logistics advantage to the marketing operations.000 marketing touch points.1996
IOC: 50% Oiltanking GmbH: 50% 79
.participating interests in a clutch of oil & gas assets in India and abroad has ensured expansion of the upstream portfolio. products and processes. In the high-risk business of oil exploration & production. non-fuel revenues and pure retailing business. Beyond core businesses. Indian Oil aspires to be Asia’s leading commercial R&D organisation in the downstream hydrocarbon sector by building on its capabilities in developing innovative technologies. the Indian Oil Group. Indian Oil’s consortium approach with established players is paying off well in terms of exceptional Government support and successful forays in India and abroad. with two petrochemical hubs shaping up at Panipat and Paradip.1993 IOC: 25% Limited Balmer Lawrie: 25% NYCO SA. greases and hydraulic fluids. manufacture and sell synthetic. besides city gas distribution. Its current interests are focussed on oil equity and sourcing of natural gas. In natural gas business. The pipelines network. To build and operate terminalling services for petroleum products. semi synthetic and mineral based lubricating oils.250 crore in the next five years. with focus on hitherto untapped rural markets. would be playing a key role in realising India’s bid to emerge as an export-oriented hub for finished products.700 strong Indian Oil team shall build as they fuel the dreams of over a billion of their countrymen. 43. is also set to cross the 10. Indian Oil has ambitious investment plans of Rs. By 2011-12.Oil India 04. related products and specialities for Defence and Civil Aviation uses.11.
01. RPL.5% each.12. GIIC.5% GAIL: 22.12.Public Issue : 35% IOC. RPL.04. SBI. lubricants and greases. IL&FS.IBP: 02%
Petronet India Limited (PIL)
26.IL&FS: 05% each.05. KPT.1998
IOC: 50% Lubrizol Corp.2005
City gas distribution in Lucknow and Agra
Indo Cat Pvt.CB: 02% IOC: 22.
Petronet VK Limited
07. EOL: 13% each. GAIL. Pipeline projects through Special Purpose Vehicles.04.Gaz de France International : 10%.05.2006
Manufacture & marketing of FCC catalysts and additives.06.
To manufacture and market chemicals for use as additives in fuels.5% IDFC:20% IL&FS: 20% Others: 10% UP State Govt. BPC.Lubrizol India Private Limited Indian Oil Petronas Private Limited Petronet LNG Limited
01. USA: 50% 03.1998
IOC. Development of facilities for import and regasification of LNG at Dahej and Kochi.1998
IOC. EOL: 10% each.
To implement Petroleum Products.ONGC: 12. ICICI.:5% IOC: 50% USA: 50% 80
To construct and operate a pipeline for transportation of petroleum products from Vadinar to Kandla.
Green Gas Ltd. PIL: 26% each. HPC:16% each. Asian Development Bank :5%. To construct and import facilities for LPG import at Haldia and to engage in parallel marketing of LPG.10. BPC.
Germany: 33. Indicators (and the associated databases) also reveal key couplings between energy use. operate & maintain aviation fuel facility projects. developed a series of energy indicators to be used as tools for studying energy-use developments to assist Member countries in analysing factors behind changes in energy use and CO2 emissions.Indian Oil Sky Tanking Limited
Design.33% Skytanking GmbH. The IEA has since 1997.2006
IOC: 33.08. a set of disaggregated measures of how energy is used.33% IOTL: 33. The IEA's role is to assist and internationalise these efforts through the maintenance of transparent international databases and through collaboration with other international organisations. Many IEA Member countries already employ energy indicators.
Energy indicators are an important tool for analysing the interactions among economic and human activity. construct. 81
. finance. energy use and CO2 emissions.
Fast-growing nations like China. This insight is crucial when assessing and monitoring past and present energy efficiency policies and for designing effective future action and the important aim of the IEA's work on indicators is to increase the transparency and quality of energy-use data. Smart fuel planning is the key to maximizing your fleet’s fueling needs. have led to investors moving into safe-haven assets like gold and silver. these commodities have pervasively ruled supreme in almost any discussion of economic importance. Petroleum products are commodities that have been the talk of business circles in the recent past. in determining non-compliance issues and for identifying potential employee fuel theft. Their rising populations and improving lifestyles have also led to a massive increase in demand for resources. Indispensable and necessary. they too will continue to require resources to replace and renew their existing infrastructure.energy prices and economic activity. Recession concerns in the US. For more reasons than one. businesses cannot afford to operate fleets inefficiently. As for the developed countries. Oil prices are at around $115 a barrel. followed by successive interest rate cuts by the Federal Reserve. Crude prices are at a high following crisis in the Middle East. there have always been efforts to generate and harness this natural resource in its varied forms to
. Because higher fuel costs escalate operational costs. Metal prices have also been scaling new peaks. NECS stands ready to independently analyze your fleet’s overall fuel consumption for fuel purchasing programs. Prices of agricultural commodities too are rising on account of supply-side pressures. so much so that they are today among the biggest contributors to the current round of inflation. the largest supplier of the commodity. India and Russia are the biggest contributors to the rise in demand for natural resources. This demand-supply mismatch is unlikely to end anytime soon. Boom in commodities Crude oil and metal prices have been surging for some time. These countries are investing massively in their infrastructure. Petroleum products as a source of energy have always been at the core of any economic activity. Fuel prices are wildly fluctuating in today’s petroleum market. for use in supporting fuel tax refund applications.
Much of the activity in the petroleum sector has been dominated by government policies till date. In India petroleum for long has been a state subject with the government exercising a strict control over the sector.
.fulfill the various needs of energy. However. disparities in the regional dispersion of this natural resource have led to vast imbalances between different countries with respect to the availability and use of petroleum products.
Yet. Distribution decisions are relevant for nearly all types of products. safer and easier ways of buying products and services. However. In my report I have cover the basics of distribution including defining what channels of distribution are and why these are important. establishing facilities for product storage. (2) To organise communication. achieving these goals takes considerable effort. For tangible and digital goods. marketers may find that getting to the point at which a customer can acquire a product is complicated.. and expensive. Without distribution even the best product or service fails. delivers a good or service to the right place. time consuming. in the right amount.e. cheaper. mortgages over the phone and phones themselves from vending machines are just some innovations in distribution which create competitive advantage as customers are offered newer. Importance of Distribution Buying a computer in the post. Determining whether a reseller network is needed to assist in the distribution process. in the right condition) and efficient (i. Creating a delivery system for transporting the product to the customer.. faster. allows customers to gain access and purchase a marketer’s product.
Author Jean-Jacques Lambin believes a marketer has two roles: (1) To organise exchange through distribution.Distribution Distribution decisions focus on establishing a system that.e. Arranging a reliable ordering system that allows customers to place orders. as we will see. at its basic level.
. In order to facilitate an effective and efficient distribution system many decisions must be made including (but certainly not limited to): Assessing the best distribution channels for getting products to customers. The bottom line is a marketer’s distribution system must be both effective (i. delivers at the right time and for the right cost).
delivery methods. Decisions about physical distribution are key strategic decisions. direct marketing and a sales force.Physical distribution. Increasingly it involves strategic alliances and partnerships which are founded on trust and mutual benefits. prices are often determined by distribution channels. Distribution is important because: Firstly. and the image of the channel must fit in with the supplier's required 'positioning'. Controlling the flow of products and services from producer to customer requires careful consideration. Deciding between blanket coverage or selective distribution. Secondly. We are seeing the birth of strategic distribution alliances. They are not short term. vertical systems or multi-channel networks. strategic alliances or solo sales forces. This affects cost competitiveness as well as profits since margins are squeezed by distribution costs. retailers. delivery frequency and warehouse locations have major cash flow implications as well as customer satisfaction implications. delivery is seen as part of the product influencing customer satisfaction. Channels change throughout a product's life cycle.if it's not available it can't be sold. Distribution and its associated customer service play a big part in relationship marketing. the design of product packaging must fit onto a pallet. must integrate with the other 'P's in the marketing mix. It can determine success or failure in the market place. it affects sales . Changing lifestyles. into a truck and onto a shelf. or Place. Meanwhile we should always remember that distribution is one of the main roles of marketing. aspirations and expectations along with the IT explosion offer new opportunities of using distribution to create a competitive edge. distribution affects profits and competitiveness since it can contribute up to 50 percent of the final selling price of some goods. Decisions about levels of stock. minimum order quantities. But why exactly does a company need others to help with the distribution of their product? Wouldn’t a company that handles its own distribution functions be in a better position to exercise control over 85
. For example. requires strong strategic thinking. Thirdly. Most customers won't wait. Distribution channels often require the assistance of others in order for the marketer to reach its target market. The choice of channel includes choosing among and between distributors. agents. franchisees. It provides new ways of getting products and services in front of customers.
Hindustan Petroleum (HPCL). Engine oil constitutes around 83 percent of total sales volumes. The public sector contributes to over 60 percent of the revenues for this market. and engine coolants contribute to the balance. Unlike other countries where lubricant demand has witnessed stagnation. Disribution channel of IOCL The Indian automotive lubricant market is the sixth largest market in the world with revenues of approximately $1.product sales and potentially earn higher profits? Also.. For example. marketers who are successful without utilizing resellers to sell their product (e. Companies like Castrol. Elf Total-Fina. 86
. by using shipping companies Dell is taking advantage of the benefits these services offer to Dell and to Dell’s customers. Automotive lubricants are further divided into diesel lubes and petrol lubes. hydraulic brake fluids. which have to cover greater distances.g. their market share is higher. Market Size Total production of automotive lubricants in India is approximately 8 to 10 percent of global lube production. Gear oils. it was a highly regulated market with a clear dominance of the public sector.g. While companies can do without the assistance of certain channel members. It is also one of the fastest growing retail markets in India. Dell Computers sells mostly through the Internet and not in retail stores) may still need assistance with certain parts of the distribution process (e. the Indian market has been growing at approximately 7 percent per annum for the past 2 years. Until 1993. Thus. Gulf. Dell uses parcel post shippers such as FedEx and UPS). and Shell Oil have made their presence felt in the market. Diesel lubes comprise 70 percent of the market and petrol based lubricants cover the rest. MNC’s have 5 percent market share and the remaining share is held by the unorganized sector.e. for many marketers some level of channel partnership is needed.. transmission fluids. handling all aspects of distribution) there are many factors preventing companies from doing so. with the advent of the increasing number of multinationals in the Indian market there is a growing presence of private companies. doesn’t the Internet make it much easier to distribute products thus lessening the need for others to be involved in selling a company’s product? While on the surface it may seem to make sense for a company to operate its own distribution channel (i. In recent years. In Dell’s case creating their own transportation system makes little sense given how large such a system would need to be in order to service Dell’s customer base.30 billion in 2002. Companies like Bharat Petroleum (BPCL).. and Indian Oil Corporation (IOC) held more than 75 percent of the market share.
As diesel lubes are used by commercial vehicles.
Import of base oil. In medium to long term. In the next couple of years. Almost 70 percent of the lubricants in India are sold through petrol pumps. After the deregulation of the petrol pumps companies are keenly watching the developments in the lubes market. Frost & Sullivan expects private sector companies to have a market share of around 25 percent. Distribution Structure There are two key markets for lubricants in India. Elf. The standalone refineries will have to be merged with the marketing companies. logistics management. Gulf Oil etc. the key raw material. Private participants will also gain a presence in the Indian oil and gas sector and hence there will be competition between participants that will ensure the growth of the sector. Companies like Reliance are already selling their products through petrol pumps. These developments naturally encouraged the entry of foreign players on Indian shores who were already facing a slowdown in demand in their local markets. was de-canalized with IOC losing its status as the sole canalizing agent. which made it more difficult for the Indian lube manufacturers to survive. and risk management are going to be the crucial factors. The original equipment market contributes almost 70 percent and 30 percent of the market is comprised by the retail sales segment.
Most of the MNC’s have tied up with oil majors for marketing their lubricants like Castrol with Escorts and Tata BP with Telco. Retail networks. Pricing of base oil was deregulated in a phased manner and currently it is market determined. the government decided to open the Indian market to foreign competition. All quantitative restrictions were also removed. which are now sold at petrol pumps. Given high levels of competition original equipment.
. the industry is going to witness sea changes. linkages are gaining importance. With the dismantling of Administered Price Mechanism (APM) the burden of subsidies is now being passed on to the government. as they do not have the distribution infrastructure to sell their products in a deregulated market.Competitive Analysis The first seeds of competition were sown in the early 1990’s when following the liberalization of the Indian economy. The channel for replacement market or the retail segment is petrol pumps or retail stores. MNC’s will be able to sell their products through petrol pumps. The coming in of foreign participants created an excess supply situation in the Indian automotive lubes market. Recent deregulations in the lubricant market have promised many new opportunities for the private lube manufacturers. Castrol. The monopoly of the public sector holdings will no longer exist. Lubes manufactured by Reliance Petroleum. Basic custom duty on base oil stock was also reduced from a peak of 85 percent to a level of 25 percent.
retail storeowner. it was found that vehicles owners’ decision to buy a certain lubricant is affected by a garage mechanic. Castrol is next with 25 percent of the share and HPCL and BPCL are next with about 20 percent and 15 percent shares respectively. which can affect the customer’s decision to buy a certain brand. Hence. stockiest and retailers through out India. brand awareness. Tata BP with Telco. as well as preference. Other private companies hold the remaining market share. Most of the MNC’s have tied up with oil majors to market their brands like Castrol with Escorts. Castrol developed the concept of "Bazaars.The distribution channel adopted by public sector units is through the petrol pumps. Indian Oil Corporation Limited is leading the market with 30 percent market share. or the advertisements. concepts like "Bazaars" and "Super Stores" have also been developed. it becomes important to have a good brand name in the market. the consumer selects his own brand of lube after giving his vehicle for service in the same outlet.
Margins and Discount Schemes Private companies mostly sell their products through stockiest. mechanics. Maximum sales are achieved through 88
. brand image plays a key role in affecting the consumer’s decision to buy a lubricant. In this. and retail stores. MNC’s and private companies sell through retail stores. Key Success Factors Frost and Sullivan believe that the key factors for success in this highly fragmented and competitive industry include: Brand Image With lubricants becoming a fast moving consumer good and the brand preference of the consumers witnessing a change. Other private participants have had to set up an independent infrastructure comprising of distributors." These are outlets meant only for lubricant sales. dealers. distributors. Public limited companies selling primarily through petrol pumps manage to achieve a deeper penetration. The concept of "User Outlet" is another new concept developed by Castrol. Convenient stores and highway stops for vehicles are being built from where the vehicle owners can get their vehicles repaired and get their supply of lubricants. This will help the private companies to establish a wider access. The lubricants market in India is very highly fragmented and complex. To compete with dominant public sector distribution. it is vital for the companies to reach a wider segment of customers. Distribution Channels With increasing number of players in the market. In a recent study by Frost & Sullivan. In the lube market.
This sector has witnessed considerable amount of mergers and acquisitions. TAFE. In the past one and a half years. the Indian lubricant market has witnessed a phase of consolidation. However. and Skoda have entered into collaboration with IOC and Castrol for some of their models. This will increase the replacement cycle for lubes. Prices and Promotion The transformation from the administered pricing mechanism to free pricing has increased the importance of providing cost effective product to the users. in the future volume growth will be affected because of use of better quality. companies are entering into collaborations with vehicle manufactures.
. Market Trend In the recent past. Toyota. one will witness intense competition in a slow growing market marked by a consolidation activity. In the shorter term. the scenario has improved with higher sales of commercial vehicles and two-wheelers. growth in the automotive lubricants industry will largely depend on the overall performance of the economy. Multinationals with better technology. British Petroleum’s not so recent acquisition of Castrol is one example. Thus product costing and competitive pricing are key factors affecting the market. with increasing number of competitors it is not possible for every one to carve a nich in the market. which has the potential to change the face of the lubricant industry. Maruti Udyog. brand name and finances have the power to launch themselves on their own in the market. However. The Indian lubes market is a combative market place and lubricant companies find themselves fighting a tough battle for survival. Hindustan Motors. In the OE sector also lubricant manufacturing. Margins and discount schemes offered to the storeowners and mechanics prompt them to sell and promote a particular brand. Hyundai Motors. long drain lubes. Outlook In the future. Given the rising competition.mechanics and retail stores. success of a product would largely depend how well it is branded and distributed.
suppliers. they added. Importing diesel from Indian Oil Corporation hit snag as the move taken by Bangladesh petroleum corporation to strike a deal in this regard flopped. work-in-progress. officials said. sources inside BPC said. inventory and delivery channels. Supply chain management is the oversight of materials. It is said that the ultimate goal of any effective supply chain management system is to reduce inventory while maintaining necessary product availability. denoting the various channels that existed inside and outside the company in terms of supply. sources added. their allocation amongst its various refineries and in arriving at the optimal distribution plan with least placement cost to the consuming centers and facilitating decision in respect of major investments. Supply chain management involves coordinating and integrating these flows both within and among companies. and every company is part of a larger value chain that includes customers. information. Supply chain integration and optimization are critical to compete in the global market today. returned on Thursday after holding an inconclusive talks with BPC officials.
A delegation of IOC which came on Tuesday to negotiate the premium for signing a deal to supply 100. every department.000 metric tons of diesel. The term 'supply chain' came into existence.SUPPLY CHAIN MANAGEMENT (SCM) In today's world. no one is an island. The move failed as IOC declined to lower its premium against the supply of diesel to BPC. Indian Oil Corporation stated that the collaboration with Honeywell has an End-to-end Supply Chain optimization that has enabled IOC to optimize corporate profitability across its entire supply chain. Various concepts like Just-in-time and Zero Inventory were finding acceptance and implementations among the manufacturing industries. “Our meeting with IOC delegation ended inconclusively as our attempt to 90
. Our collaborative solutions are enabling the Corporation in selection of optimal crudes. partners and even competitors. and finances as they move in a process from supplier to manufacturer to wholesaler to retailer to consumer. Every individual. more effective decision making that leads to overall improved business performance. IOC demanded a premium of over six US dollars per barrel of diesel while BPC tried to negotiate below six dollars. The past few decades had brought about a major change in the way companies manage their supply and delivery channels. Supply Chain solution improves visibility to the supply chain process and enables faster.
Ltd. with a combined capacity of 58. has another 3.000 retail sales outlets.. IOC team stick to its demand for premium of six dollars which we could not afford. Any mishaps lead to losses. officials said. IOCL accounts for 56% petroleum products market share among public companies. Its subsidiary. The company also owns and operates the country’s largest network of cross-country crude oil and product pipelines of 7. It is the19th largest petroleum company in the world and has also been recognized as the number one company in petroleum trading among the national oil companies in the Asia-Pacific region. “The IOC team however. the BPC officials informed. 2008” he also said. It allows better utilization of resources and improved operational effectiveness. IBP Co. Earlier. the diesel will be directly supplied to Daulatpur depot of BPC based in Khulna on board special barges from Haldia port of India. 95 aviation fuel stations and 85 LPG bottling plants.000 petrol/diesel stations – backed by 165 bulk storage facilities.000 retail outlets. BPC officials said that the premium in this deal was fixed at 5. BPC officials said adding that every month it will supply a consignment of 10. WHY SCM? Organizations now have to efficiently manage these supply chains. A supply chain management tool utilizes technology to allow you to manage the supply chains. including more than 10.730 km. 91
. BPC imported 200. assured us of reviewing the premium issue by the end of January. 42% national refining capacity and 69% downstream pipeline throughput capacity. As India’s flagship national oil company.49 US dollars per barrel. If IOC agrees to lower the premium.62 million metric tons per annum. The company has a countrywide sales network of more than 23.000 metric tons of diesel from IOC in the year 2006. The first consignment of diesel from BPCL is expected to reach by next week.negotiate the premium failed” said the director (operation) of BPC Mozammel Huq. to import 120.000 MT of diesel. BPC signed a deal with another Indian company Bharat Petroleum Corporation Ltd by the end of May this year. IOCL operates 10 of India's 18 refineries with a combined rated capacity of one million barrels per day (bpd). Meanwhile.000 MT of diesel. Efficiency of supply-chain management Indian Oil Corporation (IOCL) is India’s number one oil company and holds the 189th spot on the famed Fortune 500 list of companies.
including exports of 1. unit capacities. IOCL had the multifaceted challenge of maintaining its leadership position and meeting its vision of being a diversified. Optimal refinery production planning considering crude assays.
• Analysis to formulate strategies to meet future scenarios like change in specifications • Faster. imports and exports • Improved response and execution capability
Challenges in supply-chain management As a leading oil supplier. and the pipeline network transported 43. integrated energy company with a strong environment conscience and national role in oil security and public distribution. product specifications and demands. taxes and duties and transportation constraints Indian Oil experienced major benefits on account of: • Improved visibility into its supply chain process across the five selected refineries • Investment analysis for refinery units. As the company looked for ways to maximize profits one thing was clear – more visibility into the supply chain and finding ways to optimize this value chain was critical. more effective decision making on exchange strategies. Its seven own refineries achieved a throughput of 36. IOCL evaluated different supply chain management solutions to 92
.03 million tonnes of crude oil and petroleum products.96 million tonnes. Crude selection and allocation which takes into account product demands. Optimal distribution planning considering transportation costs.For the year 2004-05. pipelines. refinery capabilities and effect of crudes already procured.63 million tonnes. IOCL sold 50.1 million tonnes of petroleum products. etc. and feedstock availability. Importance of supply-chain management Integrated supply chain planning which optimizes the entire supply chain providing higher margins and increased profitability.
along with a large network of 200 depots. decisions are sometimes made based on incomplete data or they can’t be applied across the entire corporation. multi-plant planning solution. Traditionally different departments or divisions within one organization manage their own disparate project of this complex process and don’t always talk with one another. where to process it.address this business problem and how best to implement a solution that integrates five separate refineries. A multi-site refining company has various supply chain problems to solve including which crude to buy. The resulting decision was to implement an integrated. how much to buy and make. 10 refineries and five detailed models. As a result. 17 pipelines and six transportation modes. To put it in perspective IOCL had challenges in the supply chain to integrate. 40 terminals.
. Our challenge was how to plan for various possible breaks that could occur in the supply chain and how to best optimize each specific point to increase our profitability and link activities of five separate refineries. what to make and where and how to transport it. view and make decisions based on 80 crudes sourced from South America to South East Asia.
700 people. The company primarily operates in India with a presence in some Asian and African countries.2 billion (approximately$46. The Indian Oil Group of companies owns and operates 10 of Indias 19 refineries with a combined refining capacity of 60 million tonnes per annum (1. key executives.1 billion (approximately $2.3 billion (approximately $1. These include two refineries of subsidiary Chennai Petroleum Corporation Ltd. (CPCL) and one of Bongaigaon Refinery and Petrochemicals Limited (BRPL).3% over 2006.2% over 2006. an increase of 22. The operating profit of the company was INR116.
Keep fully up to date on your competitors' business structure. The company recorded revenues of INR2.2 million barrels per day).
. India and employs about 31. Data is supplemented with details on the company’s history. Obtain the most up to date company information available. Contains a study of the major internal and external factors affecting the company in the form of a SWOT analysis as well as a breakdown and examination of leading product revenue streams.
Qualify prospective partners and suppliers.8 billion) in fiscal year 2007. It is headquartered in New Delhi.1 billion) during the fiscal year ended March 2007. business description.Indian Oil Corporation Limited (IOC) is India's largest downstream oil company. 003.7 billion) during fiscal year 2007. strategy and prospects. Scope of the SWOT analysis: Provides all the crucial company information required for business and competitor intelligence needs. an increase of 60. locations and subsidiaries as well as a list of products and services and the latest available company statement. an increase of 59.3% over 2006. Reasons to SWOT analysis: Support sales activities by understanding your customers' businesses better. The net profit was INR79.
SWOT Analysis OF the Company Strengths: Deals in strong and well differentiated brands with leading market shares.
Capable and committed human resources. Opportunities: Potential for expansion in the market.
Threats: Competitive environment with diverse players. Rising prices of fuels. Strong equity with consumers as a Company with “high quality” brands. Ability to pass through cost increases in price point Stock Keeping Units. Efficient supply chain. Potential for growth through increased penetration. People attraction and retention. Well diversified product portfolio. Distribution structure that allows wide reach and coverage in the allotted markets. Weakness : Complex supply chain configuration.
SECNARIO OF OIL INDUSTRY
Global oil industry: The world’s primary energy consumption was 9,741mtoe (million tons oil equivalent) in 2003 with oil and gas accounting for 37.3% and 23.4% of the energy basket respectively. The world energy consumption grew 2.9% yoy, whereas Asia-Pacific saw its energy demand increasing 6.3% yoy in 2003. Similarly world oil and gas consumption grew 2.1% and 2% respectively, whereas the consumption in Asia-Pacific region grew 4% for oil and 5.7% for gas. China has emerged as major growth driver in Asia-Pacific region. The world oil demand is expected to increase to 121 million barrels per day (mbpd) by the year 2025 from 78mbpd in 2003 with Asia accounting for the 40% incremental projected growth. The demand for petroleum products is expected to increase at CAGR of 3.9% in India and by 4% in China till 2025. OPEC’s (Organization of Petroleum Exporting Countries) share in oil production remains at around 40% of the world total demand (80mbpd). Gross refinery margins (GRM) touched their lows in 2002 and rebounded thereafter. While Singapore GRM were around US$3.5/bbl, North-West Europe and US Gulf Coast GRM were at US$5/bbl in 2003. Indian oil industry: India’s petroleum consumption grew 3.5% to 108mmtpa in FY04. After a flat growth in FY02 the industry clocked over 3% growth for the second year in succession. HSD (which accounts for 40% of the total petroleum product consumption) consumption grew by only 1.7%. However, HSD consumption in the Q4 FY04 and Q1 FY05 registered double-digit growth, as the Government stopped parallel importing of SKO. Discontinuation of SKO import means lower adulteration, which otherwise would have replaced HSD, and hence higher consumption of HSD. With refinery capacity at 125mmtpa and consumption of petroleum products at 108mmtpa, the surplus refining capacity is a cause of concern. Increased availability of the natural gas is another important development in the industry, where gas is seen as replacing substantial volumes of Naphtha and fueloil/LSHS.
The entry of private and foreign players in marketing and distribution will lead to severe competition in the downstream refinery sector. Last year 3,000 new retail outlets were commissioned, mostly by PSU oil companies and permission to setup another 11,000 retail outlets is already granted by the Government to all the players - PSUs, private and foreign companies. Thus, oil PSUs for the first time will face serious competition. Subsidiaries and overseas ventures: Chennai Petroleum Corporation Ltd (CPCL) IOC owns 52%equity of the CPCL, which owns and operates 10.5mmtpa of refining capacity. The company added 3mmtpa of capacity in March 2004; thus raising total capacity to 10.5mmtpa. It recorded a 3% increase in throughput to 7mmtpa in FY04 as against 6.8mmtpa in FY03. It clocked a 9% yoy increase in sales to Rs94.3bn and 32% yoy increase in PAT to Rs4bn in FY04. The company’s EPS stood at Rs26.8 in FY04 as against Rs20.3 in FY03. Bongaigaon Refineries Ltd (BRL) IOC owns 74.4% equity of the company, which operates 2.35mmtpa of refinery. It achieved a throughput of 2.13mmtpa during FY04; thus achieving a capacity utilization of 90.5%. During the FY04 it restarted its DMT and PSF plant after a gap of 3 years in an alliance with Reliance Industries Ltd. The company registered a 53% yoy increase in its turnover to Rs28.5bn and a 71% yoy rise in PAT to Rs3bn; thus taking its EPS to Rs15.2 in FY04. IBP Ltd IOC owns 53.6% of equity share in the company. The company operates in downstream sector with 2,765 retail outlets, of which 688 were added in FY04. The company’s turnover increased to Rs106bn in FY04, recording an increase of 19% yoy. PAT increased by a whopping 145% yoy to Rs2.2bn and taking its EPS to Rs96.9 in FY04. The Board has approved the merger of the company with IOC and will officially get merged with IOC once all the regulatory approvals are obtained.
Overseas ventures: Lanka IOC Pvt. Ltd (LIOC) Lanka IOC is full-fledged Sri Lanka company, which commenced operation in February 2003 by taking-over 100 retail station from Ceylon Petroleum Corporation Ltd and the Trincomalee Tank Form taken on long term lease. The company has added 57 outlets and another 100 more are on the pipeline. The company’s throughput per retail outlet is 300kl, which is better than the industry average. The company has captured 25% market share in Sri Lanka. The company recorded a turnover of INR7.2bn and net profit of INR288mn; thus taking its EPS to INR2.1 in FY04, its first full year of operation. Indian Oil Mauritius Ltd (IOML) The principal activity of the company is distribution of petroleum products. The company commissioned 15.5tmt (thousand metric tons) petroleum storage terminal at Mer Rouge Port in April 2004. The company recorded a turnover of INR56.9mn and a net loss of INR8mn in FY04, its first full year of operation. Upward Integration and Diversification: Exploration and Production (E&P) The company has embarked upon major investment in E&P so as to secure its own equity oil and safeguard its business interest against volatile international oil market. It has entered into various joint ventures and “farm out agreement” with ONGC and other private and foreign companies in India and abroad. Gas Gas has emerged as the preferred fuel of the utilities viz power, fertilizers and transportation. Its share in the total energy basket is expected to rise from 8.8% at present to 20% by 2025. The company has adopted multi-pronged strategy to take advantage of the strategic shift occurring in the energy sector. Petronet LNG Ltd (PLL) PLL, a joint venture promoted by IOC along with BPCL, ONGC and GAIL has commissioned its 5mmtpa LNG terminal at Dahej in Gujarat, with first parcel of LNG from Qatar received in January 2004. The IOC has decided to off-take 1.5mmtpa of LNG for the next 25 years as its maiden foray into gas marketing.
5bn. The company has just commissioned its LAB (linear alkyl benzene) unit at its Koyali refinery with an investment of Rs12.
. The unit would use Kerosene as feedstock (100tmtpa) and with LAB (120tmtpa) as output.Petrochemical The company considers petrochemical as major growth driver in the future growth.
for acquisition of overseas E&P assets. In addition.84 million tonnes during the previous year.74 million tonnes in 2007-08 as compared to 1.48 million tonnes in the previous year. As part of the consortium approach with Oil India Ltd.47. Mr.12 million tonnes of crude oil and petroleum products. This includes sale of natural gas. as compared to 54. Ltd. The year 2007-08 also saw a major restructuring exercise in the form of seamless merger of the marketing subsidiary. According to Indian Oil Chairman. Sarthak Behuria.479 crore. the Corporation sold 59.1 % as compared to Rs. 4. Indian Oil Corporation Ltd. registered one more year of sustained all-round growth in 2007-08 despite a challenging business environment and turbulence in the market place. a special purpose vehicle.
.33 million tonnes from 3. (Indian Oil). Bongaigaon Refinery and Petrochemicals Ltd. Core Performance Financial Performance Indian Oil's Gross Turnover (inclusive of excise duty) for the year 2007-08 reached a new high of Rs. up by 12. Natural Gas Marketing and Petrochemicals together generated revenues of over Rs. Its pipelines network too registered the highest ever operational throughput of 57. Mauritius.INDIAN OIL PERFORMANCE 2007-2008
India’s No. IndOIL Overseas Ltd.4 million tonnes.779 crore in the previous year. 2.20.1 Fortune ‘Global 500’ company and downstream oil major.600 crore during the year 2007-08. which has gone up to 1. with IndianOil.13 million tonnes in the previous year. product exports rose to 3. (BRPL). A similar exercise is underway for merger of the refining subsidiary.29 million tonnes of petroleum products during the year 2007-08. IBP Co. Swift integration of the countrywide assets and operations of both the companies led to the formation of a larger and more formidable marketing network for IndianOil. 2.. The Corporation’s seven refineries surpassed 100% capacity utilisation and clocked the highest ever throughput of 47. (OIL).. The year also marked expansion of the Corporation’s E&P (Exploration & Production) portfolio to 19 oil & gas assets in India and abroad. Among new businesses. was incorporated at Port Louis.
with expansion of the network to 17. State Transport Undertakings.477 retail outlets of Indian Oil respectively. maintained their leadership status. Indian Oil enrolled over 37 lakh new LPG (Liquefied Petroleum Gas) customers during the year 2007-08. for rewarding retail customers with free fuel and gifts from alliance partners. This includes commissioning of 727 specialformat Kisan Seva Kendra (KSK) outlets in rural markets during the year. XTRAPREMIUM and XTRAMILE are now available from 7. Autogas (LPG) sales from over 150 Indian Oil retail outlets in 71 cities touched 90.The Profit After Tax was Rs.2% and 12. XTRAPREMIUM petrol and XTRAMILE diesel.36 million tonnes in the previous year to 57. Growth in domestic sales from 53. a 53% growth over the previous year. 9. About 1. 9.90 for 200607. Use of XTRAPOWER fleet card by fleet owners went up by 26%.7% respectively. with a market share of 48% and 58. the Company's Earnings Per Share (EPS) stand at Rs. Retail sales in MS (petrol) and HSD (diesel) registered a robust growth of 12.7% respectively among branded fuels in the market. after considering the compensation received in the form of oil bonds. crossed the one-lakh mark during the year. etc. Railways.39 as compared to Rs. PDS kerosene and Domestic LPG in the financial year 2007-08 is Rs.3% growth in market share. of India subsidy. recommended a Dividend @ 55 %.500 outlets.000 outlets were fully automated during the year.
.000. The total net under-recovery on account of price under-realisation on petrol. The process of third-party certification was also extended to more outlets and now covers about 6.55 million tonnes for the year 2007-08 ensured a 2. More Indian Oil outlets were upgraded to XTRACARE standards during the year.050. which is after considering the compensation of Rs. which met here today. The Indian Oil Board. while the XTRAREWARDS loyalty card programme. For the year 2007-08. 62. 18. taking their total to nearly 2.071 and 10.963 crore.000 tonnes. 6. raising the total number of Indane households to 504 lakhs.997 crore in the form of oil bonds issued by the Government of India.800 crore. Non-domestic packed LPG sales recorded a 41% growth while bulk LPG sales registered a 38% growth over the previous year.774 crore.642 petrol/diesel stations (retail outlets). subsidy sharing by upstream companies and Govt. 58. Market leadership was maintained in the direct consumer business with further strengthening of long-standing business ties with core sector customers like the Defence Services. Marketing Indian Oil’s Marketing group maintained its dominance in the market place during the year 2007-08. with transactions of Rs. diesel. taking their total to 2. through innovative initiatives. The Corporation’s branded fuels.
a group company.5% growth in domestic market while exports grew by 56% during the year with tapping of new markets in Indonesia. Nigeria. Cameroon. 50. Pipelines As the backbone of Indian Oil’s refining and marketing operations.12 million tonnes during the year.45% increase in throughput at 21.27 million tonnes while the crude oil pipelines registered a 10.6% market share. residue upgradation and MS/HSD quality improvement project at Gujarat
. Indian Oil continued to be the leader in aviation fuelling business with a 62. Marine sales grew by about 12%.4% as against the previous highest of 3% in 2006-07). Stream-sharing between group refineries ensured better capacity utilisation and enhanced gross refining margins.8% as against the previous highest of 43.300 km pipelines network registered the highest ever operational throughput of 57. registering a 7. (CPCL). Nigeria and Oman and appointment of new distributors in Bahrain and Qatar.000 crore currently. Equatorial Guinea and Malaysia to widen the crude oil basket. these refineries processed the highest ever percentage of high-sulphur crude oil (48.73 million tonnes of crude oil in 2007-08 as against 42. This includes crude oil imported for Chennai Petroleum Corporation Ltd. 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. Navy and over 88% of the Air Force during the year.7% in 2006-07) and heavy crude oil (9. Refineries For the year 2007-08.SERVO lubricants achieved over 4. Indian Oil’s seven refineries achieved the highest ever throughput of 47.4 million tonnes. For improved margins. Vietnam.68 million tonnes in 2006-07. Several new grades were procured from Angola. the product pipelines achieved a 10. Continuing with direct chartering of ships for petroleum imports.5 MMTPA). During the year. It met the full requirements of aviation fuels of the Army. Projects Indian Oil is implementing projects of over Rs.7% growth in crude oil processing over the previous year. Compared to the previous year.85 million tonnes. MS quality improvement projects at Panipat and Mathura refineries. capacity augmentation at Panipat Refinery (from 12 to 15 million metric tonnes per annum or MMTPA) and Haldia Refinery (from 6 to 7. Major ones among them are: a crude oil pipeline system from Paradip to Haldia (330 km). Indian Oil imported a record quantity of 45. its 9.
It has also signed a Memorandum of Understanding with Saudi Aramco for research into cracking of refinery condensate for generating value-added products. New Businesses Besides consolidation in core areas. of which 160 were commercialised. Indian Oil holds a participating interest of 43.5% in the gas block with HOEC as the operator. The R&D Centre is in the process of setting up a commercial HydrogenCNG dispensing station at an IndianOil retail outlet in New Delhi this year as part of the Corporation’s efforts to promote Hydrogen as an alternative fuel. a novel Needle Coke technology was licenced to Numaligarh Refineries Ltd. Eighteen new patents were filed. including over 50 international patents. OIL and Hindustan Oil Exploration Company (HOEC) discovered gas in Assam during the year and commerciality of the find is being established. The IndianOil Board has approved purchase of 5% equity of upstream major OIL on offer from the Government of India. It has commissioned a bio-gas plant and bio-mass gasifier plant during the year 2007-08 for conducting research into energy-efficient biogas burners.. a 15 MMTPA integrated refinerycum-petrochemicals complex at Paradip. About 45 approvals were also received from OEMs (Original Equipment Manufacturers). and Mathura to Bharatpur (21 km) and also its first gas pipeline from Dadri to Panipat (130 km). Chennai to Bangalore (290 km). of which 12 were approved.
. the first time to a company outside the Indian Oil Group. Indian Oil took big strides in new businesses during the year 2007-08.Refinery. and new product pipelines from Koyali to Ratlam (265 km). This takes the total number of patents to nearly 120. The Indian Oil-OIL-Sonatrach (Algeria) consortium bagged Area 95/96 under the fourth round of international bidding in Libya. with Sonatrach as the operator. Research & Development Indian Oil R&D developed 186 lubricant formulations during the year. a Naphtha Cracker at Panipat. As part of commercialisation of in-house developed technologies. Panipat to Jalandhar (275 km LPG pipeline). Integration Initiatives Exploration & Production (E&P) The consortium of Indian Oil.
The Corporation also exported Paraxylene to Indonesia. feedstock for the polyester industry) business in 2007-08 with sales of 375. Globalisation Initiatives 104
.74 million tonnes of R-LNG during 2007-08. The Government of Madhya Pradesh has also allotted 2. with exports to about nine countries. As a sequel to this.1.000 hectares of revenue wasteland) and other activities related to bio-diesel production in the State.000 hectares of revenue wasteland in Jhabua district to Indian Oil for energy crop plantation. and Ratnagiri Gas & Power Pvt. A technology innovation was initiated to reach LNG directly to the doorstep of bulk consumers.525 crore in the domestic market. Delhi. Ltd. Indian Oil emerged as the most preferred supplier of LAB (Linear Alkyl Benzene. Indian Oil obtained the approval of its Board and the consent of its shareholders for amending the Company’s Memorandum of Association to enable entry into the entire value chain of bio-diesel. generating revenues of over Rs. Bio-fuels During the year 2007-08.3% growth in the domestic market and 22% growth in exports. The domestic market share of IOCLAB is nearly 37%.899 crore in 2006-07).. Thailand and Malaysia for the first time during the year.077 crore (Rs. Supplies have commenced through cryogenic tankers to customers in Maharashtra and Gujarat for industrial as well as captive power applications. used in the manufacture of detergents) in the domestic market. Indian Oil completed its first full year in PTA (Purified Terephthalic Acid.Petrochemicals During the year. IOCLAB sales grew by 12% over the previous year. This translated into sales of 136. it has signed a MoU with the Government of Chhattisgarh for the formation of a joint venture to take up plantation of Jatropha (in about 30. thus generating a turnover of Rs. 697 crore in 2006-07. Diversification Initiatives Gas Indian Oil sold 1.210 tonnes and revenue of over Rs.000 tonnes and a plant capacity utilisation of over 110%. the Corporation has tied up with several more new partners for sourcing of gas and entered into gas sales agreements with major customers like Pragati Power Corporation Ltd. 2. During the year. 935 crore during the year as compared to Rs. as a cumulative of 9. 1.
Lanka IOC commissioned an 18. with a 35% market share. the storage capacity of IOML’s Mer Rouge terminal went up to 24. Indian Oil Middle East FZE Indian Oil Middle East FZE (IOME). Lanka IOC Ltd.000 tonnes.5% equity in the Trans-Anatolian Pipeline Company (TAPCO) promoted by Calik Enerji and Eni. taking the total number to 13. Discussions are underway with Calik Enerji.Indian Oil (Mauritius) Ltd.000 tonnes per annum lubricants blending plant and a state-of-the-art laboratory for testing fuels and lubricants at Trincomalee during the year. is mainly into blending of SERVO lubricants and marketing of lubricants and petroleum products in the Middle East. set up to oversee the expansion of the Corporation’s business in the Middle East. It also commenced bunkering business and commissioned 8 new lube distributorships to expand the lube marketing network. Indian Oil (Mauritius) Ltd. Eni (Italy). Overall sales grew by 19. Discussions are also underway to finalise the share sale purchase agreement for acquiring 12.5% as compared to the previous year while sale of SERVO lubricants grew by 40% to 142 kl. Consultancy The Turkish Energy Market Regulatory Authority has granted licence to Indian Oil and Calik Enerji of Turkey for setting up a 15 MMTPA grassroots integrated refinery-cum-petrochemicals complex at Ceyhan in Southern Turkey. Qatar and Bahrain and are under finalisation in UAE and Yemen. and KazMunay Gas (Kazakhstan) for formation of a consortium. (IOML) emerged as the leader in the highly competitive aviation business during the year. SERVO distributors were appointed for Oman. Africa and CIS countries During 2007-09. TAPCO will develop and implement a 550-km crude oil pipeline of 50 MMTPA capacity from Samsun to Ceyhan
. With the commissioning of two new tanks. Five new retail outlets were commissioned during the year. SERVO trademark has been registered in the UAE and is in process in Oman. IOME saw a five-fold increase in sale of finished lubes as compared to the previous year.
have been extended by one more year. A consultancy contract at Mina Al Ahmadi Refinery of Kuwait National
. Dubai.The technical services and manpower secondment agreements of over a decade with Emirates National Oil Company.
BHARAT PETROLEUM CORPORATION LIMITED (BPCL) HINDUSTAN PETROLEUM CORPORATION LIMITED (HPCL) RELIANCE INDUSTRIES LIMITED (RIL) OIL AND NATURAL GAS COMMISSION (ONGC) BHARAT PETROLEUM CORPORATION LIMITED (BPCL)
Bharat Petroleum Corporation (BPCL) traces its history to 1928 when the Burmah shell Oil Storage & Distribution Company of India was incorporated in England to enter the petroleum products business in India. Ltd. February the Government of India formed Bharat Petroleum Corporation Limited in 1977. The entire operations of Burmah Shell in India were nationalized in 1976 and the Refinery and Marketing Companies were merged to form BPCL. 3. The Burmah Shell as storage & Distributing Company of India. The Companies name changed to Bharat Refineries Limited (BRL) on 12th. The business of the Company grew substantially given the international backing of Shell and it achieved the leadership Position of India.
. 2. as a part of nationalization of Oil Companies.. The Company was incorporated on 3rd November 1952 under the name Burmah shell Refineries Limited (BSR). In 1952. 4. Shell And Burmah Oil Company set up Burmah Shell Refineries to set up a refinery in Mumbai. foreign companies established in England in 1928 were carrying on in India. The business of distributing and marketing petroleum products and for that purpose Established places in India.COMPETITORS PROFILE
Main competitors of IOCL are as follows: 1.
besides supplying fuel directly to hundreds of industries. The Indian Oil sector is at the threshold of decontrol. BPCL has a well-spread marketing Infrastructure comprising of 4489 retail stations. 147 Installations/depots. LPG Distributors. near Bombay. The Journey The core strength of Bharat Petroleum Corporation Limited has always been the ardent pursuit of qualitative excellence for maximisation of customer satisfaction. and several international and domestic airlines. located at Mahul. Thus Bharat Petroleum. 16 aircraft fueling stations and 27 LPG bottling plants.
. which is a Prerequisite in a Decontrolled scenario. Kerosene Dealers.year pact with its unions for wage revision. Over a period of time the government stake in the Company was diluted From 100% to 66%. from petrochemicals and solvents to aircraft fuel and speciality lubricants and markets them through its wide network of Petrol Stations. Government has a 66% stake in the company. It has port facilities at six locations and strong Marketing infrastructure of depots. BPCL has entered into a 10. A possible cross holding between BPCL and HPCL is also proposed. The contenders for the same include MNCs like Shell along with Domestic Companies like Reliance Industries. The Company also market Products produced by Madras Refineries Ltd. HSD. which was set up in 1955. ATF. Lube Shoppes. SKO and LPG) that Contribute 70% of the volumes . The government is gradually Slackening controls over the 5 products (MS. Bharat Petroleum Corporation Ltd (BPCL) is a public sector undertaking with a 6mtpa Refinery at Mumbai and an overall market share of 20%.However with crude prices touching new highs with No corresponding rise in product prices the refining margins is largely effected.BPCL took over refining operations of Burmah Shell Refining Limited and marketing/distribution operations of Burmah Shell Oil and Storage Distribution Company. LPG bottling plants. which it plans to divest in due course of Time. the erstwhile Burmah Shell. BPCL has only one refinery. has today become one of the most formidable names in the petroleum industry Bharat Petroleum produces a diverse range of products. SKO/LDO dealers and retail outlets. The Company has recently launched the “Smart Fleet” card targeted at fleet owners and Corporate customers.
On July 15th.Corporate Vision Make BPCL a great place to work Fulfill social responsibilities Effective boundary management Apply the best technologies Be an ethical company Develop cohesive corporate strategy Establish first class brand and corporate image To be the best Make people a source of our improvement
HINDUSTAN PETROLEUM CORPORATION LIMITED (HPCL)
The company was in corporate in the name of Standard Vacuum Refining Company of the India Limited on July 5.320 (E) dated July 15. passed by the company Law Board. GOI. the name of the company was changed to its present name Hindustan Petroleum Corporation Limited.On 31st March 1962. VII of 1913. the name was changed to ESSO Standard Refining Company of India Limited. Mumbai on September 4th.A certificate to this effect was issued by the Register of Companies. by Virtue of Lube India and ESSO Standard Refining Company of India Limited Amalgamation Order 1974 dated July 12. New Delhi and as published in the Gazette of India Extra-Ordinary GSR No.. 1952 under the Indian Company Act. Department of Company Affairs. 1974.
ATF. It also has 37. petrol pumps. In the oil and business of exploration. Guru Gobind Singh Refineries.HPCL would contribute Rs 20bn towards equity to fund the Rs 98bn refinery project to set up by its subsidiary. and another pipeline from Mangalore to Bangalore.a stand alone refinery. The contenders for the same include MNCs like Totalfina. The company is also a co-promoter of Mangalore Refineries and petrochemicals Ltd (MRPL) . of which 46% are owned by the company. HPCL was nationalized and given its current name in 1974. HPCL now command 20% of market share in industrial products. Visakhapatnam to VijayWada. HPCL has a well established marketing infrastructure with 4400 retail outlets.Hindustan Petroleum Corporation limited (HPCL) is the third refinery – after IOC and Reliance Petroleum – in India with combined installed capacity of 10. and market – HPCL is currently classified as a refining and marketing company with 18 direct sales regional offices around the country and two refineries one each at Bombay at Vishakh. Established in 1954 in Mumbai by ESSO. HSD. Government has 51% stake in the company. The company incurred capital expenditure of Rs10bn for projects during FY01. A possible cross holding between BPCL and HPCL is also proposed. Hindustan Petroleum Corporation Ltd (HPCL) is a public sector undertaking with two refineries at Mumbai and Vishakhapatnam (visag) and a 20% market share. However due to infrastructure constrains HPCL has the exclusive rights to market MRPL’s products. HPCL’s huge asset base broadly consists of townships around refineries. The company registered a net profit of Rs 10880mn as compared to Rs 1057mn in the previous year. The government is gradually slackening controls over the 5 products (MS. Indian Oil sector is at the threshold of decontrol. Vishakh refinery of CALTEX was merged with HPCL in 1978. refining. Exxon etc and domestic companies like Reliance Industries. However with crude prices touching new heights with no corresponding rise in the product prices the refining margins are largely affected. which it plans to divest in due course of time.8% stake in Mangalore Refinery and Petrochemicals (MRPL) with a capacity of 9. Besides the company also owns product pipelines to evacuate products from its refineries. Subsequently. Its major markets are in Western and Southern regions around its refineries.00 Million Metric Tones per Annum (MMTPA).9 MMTPA. to be extended to Secunderabad. 110
. refine ring plant and machinery. and transportation. The pipelines include those from Mumbai to Pune. warehouses. SKO and LPG) that contribute 70% of the Volumes.
805mn shares at Rs10 at an premium of Rs380 to FIIs/MFs/aggregating to Rs6089. Reliance Industries Limited. Group's annual revenues are in excess of USD 22 billion. Ambani (1932-2002). The company currently has a market share of 23% and its diesel engine oil (Lal Ghoda) is a market leader in this category. with businesses in the energy and materials value chain.The company has plans to set up an underground LPG storage system at Vizag and a crude oil terminal at Mundra with single Buoy Mooring facilities.73mn equity shares along with the detachable warrants comprising 1. HPCL had its maiden public issue of 1.3mn. internet kiosks and ATM facilities. GOI nationalized Caltex operated the Vizag refinery. The flagship company. In February 1995. which owned Bombay refinery.
. founded by Dhirubhai H. Burls group in 1992.HPCL. is a Fortune Global 500 company and is the largest private sector company in India. The corporation has 4500 retail outlets and 50 distributions. The undertakings of Kosangas Gas Company were also merged in 1979. 1995.V. is India's largest private sector enterprise. It plans to spur its retail activities by introducing more convenience stores.345mn shares of Rs10 at a premium of Rs330 to Indian public/NRI/employees and 3. is the third largest refining company’s undertakings (now Exxon. USA) and Lube India were nationalized in 1974 and vested in HPCL.
RELIANCE INDUSTRIES LIMITED (RIL)
The Reliance Group. a public sector enterprise. HPCL’s Bombay refinery located on the west costal was set up in 1954 and Vizag refinery as a joint venture with A.the allotment was made on April12.
net worth of Rs 34. first in the private sector in India. Petroleum Refining and retailing is the second link in Reliance's drive for growth and global leadership in the core energy and materials value chain.160 crore (US$ 1.
.to be fully integrated along the materials and energy value chain. which will make it the largest petroleum refinery in the world. being the largest polyester yarn and fibre producer in the world and among the top five to ten producers in the world in major petrochemical products. plastics petrochemicals. Reliance Industries Limited (RIL) is also the India's largest private sector company on all major financial parameters with gross turnover of Rs 74. In January 2005. has now completed five years of successful operations. petrochemicals (polyester. Reliance operates the third largest refinery in the world at any single location. Reliance is also rolling out a state-of-the-art.3billion). fibre intermediates. Reliance is in the process of doubling the petroleum refinery at Jamnagar.197 crore (US$ 2. plastics and chemicals). Gujarat. petroleum refining and oil and gas exploration and production . at Jamnagar. The Group exports products in excess of USD 7 billion to more than 100 countries in the world.2 billion).9 billion) and total assets of Rs 71. Starting with textiles in the late seventies.418 crore (US$ 17 billion). fibre intermediates. with a capacity of 30 million tons per year or 0. Reliance processed the 1. India has become a net exporter of petroleum products. With the Jamnagar Refinery significantly improving domestic product availability. Major Group Companies are Reliance Industries Limited (including main subsidiaries Reliance Petroleum Limited and Reliance Retail Limited). The Reliance petroleum refinery. net profit of Rs 5. pan-India petroleum retail network aimed at providing the Indian consumer with world-class retail experience. The Group's activities span exploration and production of oil and gas.157 crore (US$16.452 crore (US$ 7.6 million barrels per day of crude throughput. Reliance pursued a strategy of backward vertical integration . RIL is the first and only private sector company from India to feature in the 2004 Fortune Global 500 list of 'World's Largest Corporations' and ranks amongst the world's Top 200 companies in terms of profits.1 billion). There are more than 25. cash profit of Rs 9. petroleum refining and marketing.000 millionth barrel of crude oil. textiles and retail.000 employees on the rolls of Group Companies. Reliance enjoys global leadership in its businesses.in polyester. Indian Petrochemicals Corporation Limited and Reliance Industrial Infrastructure Limited.Backward vertical integration has been the cornerstone of the evolution and growth of Reliance.
RIL also emerged as the only Indian company in the list of global companies that create most value for their shareholders, published by Financial Times based on a global survey and research conducted by PricewaterhouseCoopers in 2004. RIL featured in the Forbes Global list of world's 400 best big companies and in FT Global 500 list of world's largest companies. RIL emerged as the 'Best Managed Company' in India in a study by Business Today and A.T. Kearney in 2003. In 2004, the company emerged as 'India's biggest wealth creator' in the private sector over a 5-year period in a study by Business Today Stern Stewart and as India's 'Most Admired Company' in a Business Barons - TNS Mode Opinion Poll. Products & Brands The Company expanded into textiles in 1975. Since its initial public offering in 1977, the Company has expanded rapidly and integrated backwards into other industry sectors, most notably the production of petrochemicals and the refining of crude oil. The Company now has operations that span from the exploration and production of oil and gas to the manufacture of petroleum products, polyester products, polyester intermediates, plastics, polymer intermediates, chemicals and synthetic textiles and fabrics. The Company from time to time seeks to further diversify into other industries. In January 2006, the Company approved a plan to establish a retail business through a subsidiary Reliance Retail Limited that will operate, among other things, supermarkets, convenience stores and specialty stores across India. The Company approved initial expenditure of US$ 750 million to fund the initial stages of this plan. The Company's subsidiary Reliance Infrastructure Ltd. is currently establishing infrastructure facilities such as roads and buildings for the proposed Special Economic Zone (SEZ) at Jamnagar, Gujarat. The Company's major products and brands, from oil and gas to textiles are tightly integrated and benefit from synergies across the Company. Central to the Company's operations is its vertical backward integration strategy; raw materials such as PTA, MEG, ethylene, propylene and normal paraffin that were previously imported at a higher cost and subject to import duties are now sourced from within the Company. This has had a positive effect on the Company's operating margins and interest costs and decreased the Company's exposure to the cyclicality of markets and raw material prices. The Company believes that this strategy is also important in maintaining a domestic market leadership position in its major product lines and in providing a competitive advantage.
The Company's operations can be classified into three segments namely: Petroleum Refining and Marketing business Petrochemicals business Others (including Crude Oil and Natural Gas Exploration & Production business.
The Company's refinery at Jamnagar is the third largest refinery at a single location in the world. The Company is: The world's largest producer of Polyester Fibre and Yarn 4th largest producer of Paraxylene (PX) 5th largest producer of Purified Terepthalic Acid (PTA) 7th largest producer of Polypropylene (PP) Reliance believes that any business conduct can be ethical only when it rests on the nine core values of Honesty, Integrity, Respect, Fairness, Purposefulness, Trust, Responsibility, Citizenship and Caring. The essence of these commitments is that each employee conducts the company's business with integrity, in compliance with applicable laws, and in a manner that excludes considerations of personal advantage. We do not lose sight of these values under any circumstances, regardless of the goals we have to achieve. To us, the means are as important as the ends.
OIL AND NATURAL GAS COMMISSION (ONGC)
In 1955, Government of India decided to develop the oil and natural gas resources in the various regions of the country as part of the Public Sector development. With this objective, an Oil and Natural Gas Directorate was set up towards the end of 1955, as a subordinate office under the then Ministry of Natural Resources and Scientific Research. The department was constituted with a nucleus of geoscientists from the Geological survey of India. A delegation under the leadership of Mr. K D Malviya, the then Minister of Natural Resources, visited several European countries to study the status of oil industry in those countries and to facilitate the training of Indian professionals for exploring potential oil and gas reserves. Foreign experts from USA, West Germany, Romania and erstwhile U.S.S.R visited India and helped the government with their expertise. Finally, the visiting Soviet experts drew up a detailed plan for geological and geophysical surveys and drilling operations to be carried out in the 2nd Five Year Plan (1956-57 to 1960-61). In April 1956, the Government of India adopted the Industrial Policy Resolution, which placed mineral oil industry among the schedule 'A' industries, the future development of which was to be the sole and exclusive responsibility of the state. Soon, after the formation of the Oil and Natural Gas Directorate, it became apparent that it would not be possible for the Directorate with its limited financial and administrative powers as subordinate office of the Government, to function efficiently. So in August, 1956, the Directorate was raised to the status of a commission with enhanced powers, although it continued to be under the government. In October 1959, the Commission was converted into a statutory body by an act of the Indian Parliament, which enhanced powers of the commission further.
This discovery. The liberalized economic policy. amongst themselves.11 per cent. ONGC was re-organized as a limited Company under the Company's Act. were "to plan.a downstream giant and Gas Authority of India Limited (GAIL) . ONGC has been instrumental in transforming the country's limited upstream sector into a large viable playing field. sought to deregulate and de-license the core sectors (including petroleum sector) with partial disinvestments of government equity in Public Sector Undertakings and other measures. agreed to have cross holding in each other's stock. assign to it ". ONGC expanded its equity by another 2 per cent by offering shares to its employees. along with subsequent discoveries of huge oil and gas fields in Western offshore changed the oil scenario of the country. with its activities spread throughout India and significantly in overseas territories. promote. were discovered. Subsequently.The main functions of the Oil and Natural Gas Commission subject to the provisions of the Act. ONGC not only found new resources in Assam but also established new oil province in Cambay basin (Gujarat).5 per cent to GAIL. ONGC. With this. which were present in the country. and to perform such other functions as the Central Government may. Indian Oil Corporation (IOC) . adopted by the Government of India in July 1991. The most important contribution of ONGC. The act further outlined the activities and steps to be taken by ONGC in fulfilling its mandate. now known as Mumbai High. is its self-reliance and development of core competence in E&P activities at a globally competitive level. During March 1999. Subsequently.the only gas marketing company. the Government holding in ONGC came down to 84. the Government disinvested 2 per cent of its shares through competitive bidding. After the conversion of business of the erstwhile Oil & Natural Gas Commission to that of Oil & Natural Gas Corporation Limited in 1993. Consequent to this the Government sold off 10 per cent of its share holding in ONGC to IOC and 2. 1956 in February 1994. ONGC went offshore in early 70's and discovered a giant oil field in the form of Bombay High. while adding new petroliferous areas in the Assam-Arakan Fold Belt and East coast basins (both inland and offshore). In the inland areas. Since its inception. As a consequence thereof.
. over 5 billion tonnes of hydrocarbons. This paved the way for long-term strategic alliances both for the domestic and overseas business opportunities in the energy value chain. from time to time. organize and implement programmes for development of Petroleum Resources and the production and sale of petroleum and petroleum products produced by it. however.
ONGC diversified into the downstream sector. Integrated In Energy Business Focus on domestic and international oil and gas exploration and production business opportunities. ONGC will soon be entering into the retailing business. health and environment to enrich quality of community life. openness and mutual concern to make working a stimulating and challenging experience for our people. after taking over MRPL from the A V Birla Group. VISION AND MISSION OF ONGC To be a world-class Oil and Gas Company integrated in energy business with dominant Indian leadership and global presence. Provide value linkages in other sectors of energy business. Dominant Indian Leadership Retain dominant position in Indian petroleum sector and enhance India's energy availability
. Abiding commitment to safety. ONGC has also entered the global field through its subsidiary. World Class Dedicated to excellence by leveraging competitive advantages in R&D and technology with involved people. Create growth opportunities and maximize shareholder value. Sakhalin and Sudan and earned its first hydrocarbon revenue from its investment in Vietnam. Imbibe high standards of business ethics and organizational values. Foster a culture of trust. ONGC Videsh Ltd. Strive for customer delight through quality products and services. (OVL). ONGC has made major investments in Vietnam.In the year 2002-03.
skills and experience Maximum number of Exploration Licenses.02-0. ONGC was the biggest Wealth Creator during 1998-2003 (Rs 226. as per Motilal Oswal Securities ONGC’s mega Public Offer (India’s biggest-ever equity offer worth more than Rs 100 billion was over subscribed 5. As per 5th Business Today Stern-Stewart study. including nearly 3200 kilometers of sub-sea pipelines.Competitive Strength All crudes are sweet and most (76%) are light. information.10.30 billion). Strong intellectual property base. API gravity ranging from 26°-46° and hence attracts a premium in the market.
. with sulphur percentage ranging from 0. It was again the highest wealth creator during 1999-2004.88 times . including competitive NELP rounds ONGC owns and operates more than 11000 kilometers of pipelines in India. ONGC is the only Indian company to have earned a Net Profit of over Rs 10. No other company in India. India’s Most Valuable Company With a market capitalization having exceeded Rs 1 trillion. maintaining the trend of positive accretion for the third consecutive year. knowledge.000 crores (2002-03) The market capitalization of the ONGC group constitutes 8% of the market capitalization of BSE ONGC added 49.06 MMT of ultimate reserves of O+OEG during 2003-04 (including overseas acquisitions). ONGC retains its position as the most valuable company in India in various listings. operates even 50 per cent of this route length.
On the other hand. according to disinvestment secretary Mr Pradeep Baijal. Government too has acknowledged that out of 107 MoU signing CPSEs evaluated.17 per cent for 2000-01 as against Rs 17. obviously. brought out by the government itself. became a nearly Rs 60. What Mr Baijal is saying is not a figment of imagination.526 crore for the year.653 crore in the year under consideration from Rs 14. Reliance even after it merged Reliance Petroleum Limited with Reliance Industry. Indian Oil Corporation has a turnover of over Rs 111.331 crore in 1999-2000. could not be possible without increasing efficiency and generation of more profits. The sector increased its contribution to Central exchequer by way of divident. interest and host of taxes by over Rs 14.000 crore entity with net profit of Rs 4. says the Public Enterprises Survey for 20001. Indeed the much hyped corporate sector perceives the value of PSE nearly ten times higher than the par value and had willingly purchased government equity in the same proportion. This intrinsic strength of the sector can be easily gauged by the fact that government sold its shares of Rs 631 crore (at par) since April 2000 to fetch a total of Rs Rs 6.22 per cent. This shows a return on equity (net profit to paid-up capital ratio) was 18. as many as 49 were rated as "Excellent" and another 26 as "Very Good". bears testimony to this as it reports that net profit of these undertakings increased to Rs 15.000 crore.977. have listed just these two companies in the Indian Peer Group in the oil sector.66 in the previous year.97 crore.000 crore. it also cut down its reliance on budgetary support which accounts for less than 10 per cent of the total plan outlay of Rs 47. reflecting a growth of 9.are way ahead of top private entity.771 crore. Such a trend. The annual report of the performance of CPSEs.000 crore while Oil and Natural Gas Corporation has a net profit level of over Rs 6.Indian Oil Corporation and Oil and Natural Gas Corporation . the Central Public Sector Enterprises have once again demonstrated their overall financial strength and independence.000 crore in two years ending 2000-01 to a total of Rs 60. No wonder Ambanis. It is also a fact that top PSUs both in terms of profits and turnover .
.SCOPE OF PUBLIC SECTOR
Contrary to propagation by many that public sector was heavily dependent on government for survival. Against this. Indeed such a proportion of success at a time of global and domestic slowdown would be and should be considered exceptionally good even by the protagonists of private sector and privatization. promoters of Reliance.
Later. ATM facility. during the year. Need of Non-Fuel Revenue Generation 1. status of the customer who used to refuel their vehicles from the particular outlets. so. type of services customer want. that desire revenue can be generated.
. Outlets situated at highways are suppose to provide services like servicing centre. led to a decline in crude oil prices and the Indian basket toucheda low of US$ 53 per barrel in January 2007. that more revenue can be generated. among other factors. Demographics include location of the retail outlets. in the same way outlets situated in the centre of any city are suppose to provide services like ticketing facility. it is required to search other option for generating revenue.INTRODUCTION
Analysis of non-fuel revenue generation of IOCL at its retail outlets symbolises the revenue earned by those retail outlets by providing services at their place. However this respite did not last long. Internationally increase in price of crude oil: The causal relationship between global volatility of crude oil prices and geo-political uncertainties during the year was further compounded by low availability of spare production capacity in the oil exporting countries. margin of the selling is not increasing at desire rate and also cost of crude oil per barrel increases gradually. So. It has been observed that during last 2-3 years sales volume of the fuel is increases. refreshment centers. The Indian crude oil basket recorded a high of US$ 71 per barrel during August 2006. continued to fluctuate over a high range. Non-fuel revenue generation is an emerging trend to generate revenue. it is clear that depending upon the preferences of the customer services in the retail outlets should to implemented so. and non-fuel revenue generation is one of the options to generate revenue. Hence. Prices hardened once again to US$ 60 per barrel in March 2007 and thereafter touched an all-time high of over US$ 74 per barrel inJuly 2007. ice-cream parlour. Different retail outlets provide different services according to the demographics of those retail outlets. a warm winter in the US. but. therefore. Oil prices.
the demand for diesel barely touched 2 per cent. The increase in adulteration of diesel with white kerosene and the introduction of CNG as a transport fuel in smaller towns has also adversely affected the diesel market. environmental concerns. access to remote geographical regions for prospective gas finds. integration of global gas markets has been one of the most positive developments in the recent years. Liquefied Natural Gas (LNG) has been one of the key drivers of this integration. should be restored to 35 per cent. is leading to reasonably significant replacement of traditional liquid fuels by gas. While.
. Continuous lowering of costs across the value chain has transformed LNG economics. the transport strike in April-May was one of the major factors that led to the sharp fall in diesel demand. etc. 2. The standing committee on petroleum and chemicals has asked the government to completely stop the import of superior kerosene oil (SKO) by private retailers in order to stop adulteration of diesel.With fossil fuels continuing to be the dominant source of energy in the immediate future. in June. when it registered a negative growth of -5. development of transnational gas pipelines amongst contiguous nations has grown into a viable supply option in the current context. Changing economics due to technological advancements. is the mainstay of oil marketing companies and a drop of this kind will dent bottom-lines and margins of oil companies. which was reduced to 20 per cent from 35 per cent. Besides. Fall in Diesel demand: The demand curve for diesel has taken a sharp downward turn in the period between April-July. In fact..000 kl in volume terms. refining and pipelines segments remains a major challenge. scale of operations. which translates to 535. Diesel. On the other hand. This has made oil companies and petroleum ministry officials examine the major factors that has led to the drastic fall in demand. capital expenditure by petroleum majors across the globe in upgrading infrastructure in upstream. particularly in the face of geo-political uncertainties in several parts of the world.6 per cent (compared to the same period last year). which comprises 40-45 per cent of the total petro-product consumption. the committee has stated that the customs duty on this product. expanded demand base.
non-fuel revenue generation is one of the emerging concepts and it has change the dynamics of retailing. Introduce the ‘Top Gear’ outlets featuring fast food restaurants. pharmacies and auto car wash facility.CHANGING DYNAMICS OF NON-FUEL RETAILING
Retailing of fuel has been change now only retailing of fuel is not sufficient for any organization to incurred desired revenue. From total revenue 62% is incurred from fuel and 38% is incurred from non-fuel revenue
. Centurion Banks and PNB for ATMs.Dominos Pizza for pizza outlets and ICICI Banks. Apollo Hospitals for pharmacies. IOCL stars providing facilities Entered into tie-ups with Akbaralley’s for convience stores. Non-fuel revenue generation arises due to following consequences:
Steady growth of oil industry but increasing margin pressure and the
factors responsible for that To overcome margin pressure Indian Public Sector Undertaking Oil Companies have started their non-fuel effort. So. Contribution of non-fuel revenue is significant. Formed alliances with MTNL to enables with customer to make their payments at selected retail outlets in Mumbai and Delhi.