Company Report

Gas Authority of India Limited (GAIL)

Group-6

INDEX

Sl. No Topic Page No.

1 Introduction to the company 1
2 Value chain of the industry – Primary and 2
Secondary
3 Marketing 2
4 Key Success Factors 4
5 Competitive Advantage 5
6 Brand Power 5
7 Product Portfolio 5
8 Technical Prowess 7
9 Employee Skills Requirement 9
10 Company Structure and Culture 9
11 Job Profiles in the company 9

1. Introduction to the company

Founded – 1984
Mission - To accelerate and optimize the effective and economic use of Natural Gas and its fractions for
the benefit of the national economy

Vision - Be the leading company in Natural Gas and Beyond, with Global Focus, Committed to Customer
Care, Value Creation for all Stakeholders and Environmental Responsibility.

Listed on London Stock Exchange – NSE:GAIL (https://www.google.com/finance?cid=10984042 )

(https://in.finance.yahoo.com/q/hp?s=GAIL.NS )

Corporate Governance Structure of the Company

Chairman & Managing director – Shri. B.C. Tripathi

Three whole time directors –

 Shri M. Ravindran, Director (HR)

 Dr. Ashutosh Karnatak , Director (Projects)
 Shri Subir Purkayastha, Director (Finance)

Two part time directors (Government nominees)–

 Shri Anant Kumar Singh

 Shri Ashish Chatterjee

Three part time non-official (Independent) directors –

 Shri S K Srivastava
 Shri Anupam Kulshreshtha
 Shri Sanjay Tandon

Chief vigilance officer – Shri Rajesh Ranjan

Company Secretary – Shri A.K.Jha

Major events which has shaped the firm over the period of time.

Current performance (for year ended march 2016)

Net Profit of 2,298.90 cr.

Strategic Alliances, Strategic Problem they have?

12 Joint ventures and 5 Subsidiaries

Refer - http://www.gailonline.com/final_site/jv.html
 2. Value Chain of the Industry – Primary & Secondary

3. Marketing
Since inception in 1984, GAIL has been the undisputed leader in the marketing, transmission and
distribution of Natural Gas in India. As India's leading Natural Gas Major, it has been instrumental in the
development of the Natural Gas market in the country.
Currently, GAIL sells around 65 % of Natural Gas sold in the country. Of this, 31.3% is to the power
sector and 31.5% to the fertilizer sector. Currently, GAIL is supplying around 59 MMSCMD of Natural Gas
from domestic sources to customers across India. These customers range from the smallest of
companies to mega power and fertilizer plants. GAIL has adopted a Gas Management System to handle
multiple sources of supply and delivery of gas in a co-mingled form and provide a seamless interface
between shippers, customers, transporters and suppliers. We are present in 16 states, i.e., Gujarat,
Rajasthan, Madhya Pradesh, Delhi, Haryana, Uttar Pradesh, Maharashtra, Tamil Nadu, Karnataka,
Uttranchal, Goa, Punjab, Kerala, Andhra Pradesh, Assam, and Tripura. We are further extending our
coverage to states of West Bengal, Jharkhand and Bihar through our upcoming pipelines.

We are also actively pursuing opportunities in inter-regional gas trade both in the form of Pipeline gas
and LNG.
 4. Key Success Factors
Since inception in 1984, GAIL has created value through its business by contributing significantly to
India’s gas infrastructure and posting a remarkable business growth year on year. We started with an
equity of INR 8,450 million that has grown multi-fold to about INR 590,000 million in last 27 years

Supply chain expertise an imperative for competitive advantage

Expertise in supply chain dynamics is a critical enabler for the growth of GAIL. India is a large and fragmented
country and the absence of strong infrastructure and logistics systems make it challenging to reach consumers
across other geographies. Studies suggest that logistics costs range from 10% to 12% of total GDP. With the
Indian government making investments in state highways, an overall decline of logistics costs is bound has
occurred thereby creating efficient supply chains and achieving competitive advantage for GAIL is a function of
the following:

 Integrating vendor-managed inventory programmes with planning and forecasting processes

 Integrating components of the value chain
 Using a multimodal transport network
 Encouraging skill development
 Using innovative techniques

GAIL is the youngest PSE to be endowed with the status of a Maharatna.

It is one of the first companies and PSEs to adopt sustainability measures and has been publishing a separate
sustainability report along with its financial reports.
 5. Competitive advantage (Managerial/ Operational/
Financial/Technology)
Competitive advantages of GAIL can be listed as under :

 Low market competition: GAIL is one of the central provider of gas and associated products to all
heavy industries and smaller sectors in India. It regulates both the production and pricing of the
gas. It receives competition from fellow PSEs like Indian Oil, ONGC and others, but the market is
highly regulated.

 Promoted by No. 1 gas company in India with presence across Gas value Chain. Leading Training
Institute offering various Training Programmes related to gas value chain. Practical exposure to
various facets of Gas value chain under one umbrella (NG pipelines, Gas processing units,
Petrochemical plant, LPG pipeline, CNG/PNG supply, SCADA, Telecom etc.)

 Highly Qualified and Experienced Faculty in the entire Natural Gas Value Chain, LPG and
Petrochemicals

 ISO 9001:2008 CERTIFIED INSTITUTE

 World Class Infrastructure with Class rooms, Conference halls, Computer Lab, Auditorium and In-
house Hostel facilities for participants

 Offering customized programmes according to industry need

 Successfully provided training on O&M of Natural Gas and LPG Pipelines, Petrochemicals, City Gas &
CNG, Cathodic Protection etc. to executives from Reliance, IOCL, TNGCL, IGL, EIL, OPaL, MGL, GSPC
Gas etc.

 Authorized Training Provider for American Society of Mechanical Engineers (ASME) certified courses
on Integrity Management and Maintenance of Gas Pipeline, Pipeline Personnel Qualification and Gas
Transmission & Distribution Piping System.

6. Brand power:
GAIL is the largest stated owned gas distributor in India. GAIL got the status of Maharatna on 1 st Feb
2013 and is now in the league with other six biggest PSU. It also got 131 st position in trusted brands in
brand trust report 2014 which was conducted by Trust Research Advisory.

7. Product portfolio
Gas Authority of India Limited (GAIL) is the largest state-owned natural gas processing and distribution
company in India.

The complete product portfolio of GAIL is

 Natural Gas
1. Natural Gas transmission - GAIL has built a network of trunk pipelines covering length of
around 11,000 km. Leveraging on the core competencies, GAIL played a key role as gas
market developer in India for decades catering to major industrial sectors like power,
fertilizers, and city gas distribution. The Ministry of Petroleum and Natural Gas has
authorized GAIL to further construct 5500 km of pipeline in 2007.
2. Gas Marketing – GAIL has been an undisputed leader in marketing, distribution and
transmission of natural gas in India since its inception in 1984. GAIL has a market share of
around 51% of the total Natural Gas sales in India. Of this, 37% is sold to the power sector
and 26% is sold to the fertilizer sector.
3. LNG – Since GAIL is a major player in the gas sector in India, it plays a major role in sourcing
LNG and creating efficient infrastructure(pipeline) across India, thus developing a national
grid connecting all demand centers.

 Petrochemicals
GAIL enhanced from gas promoting and transmission into the polymer business by setting up North
India's first gas based Petrochemicals complex. Indeed, even without having any related knowledge
in petrochemicals, GAIL authorized the plant effectively in year 1999 by thorough cooperation and
venture administration capacities. The petrochemical business is one of the center concentration
region of GAIL.

GAIL has set up a world-scale gas saltine plant, petrochemical complex at Pata in Auraiya locale of
Uttar Pradesh with a venture of ₹25 billion (US$370 million).

 Liquid Hydrocarbons
GAIL is also in gas preparing units (GPUs) items, specifically condensed petroleum gas, propane,
pentane, naphtha and by-results of polymer plant, in particular MFO, propylene and hydrogenated
C4 blend. LPG is being sold only to PSU oil promoting organizations (OMCs) while different items are
sold specifically to clients in the retail section.

GAIL is India's one of the prominent maker of propane, prevalently known as GAIL Propane. It is an
eco-accommodating fuel and gives a powerful method for diminishing contamination and expanding
efficiency.

 Liquefied petroleum Gas transmission

GAIL is the first company in India to own and operate pipelines for LPG transmission. It has 1,900 km
LPG pipeline network 1,300 km of which connects the western and northern parts of India and
600 km of networks is in the southern part of the country connecting the Eastern Coast. The LPG
transmission system has a capacity to transport 3.8 MMTPA of LPG. LPG transmission through
pipelines was 3337 TMT in the year 2010–11.
GAIL has a share of about 10% of the Indian LPG market in LPG production and 7% in LPG sales .
 City gas distribution
GAIL is the pioneer of city gas circulation in India. GAIL took numerous activities to present PNG for
family units and CNG for the vehicle area to address the rising contamination levels. Pilot tasks were
propelled in mid 1990s in two metros Delhi and Mumbai through joint wander organizations
Indraprastha Gas Limited (IGL) and Mahanagar Gas Limited (MGL) prompting to the begin of
business operation of city gas ventures. The aftereffects of these endeavors are very obvious
through the change in air quality in these urban communities.

 Exploration and Production

GAIL has interest in 31 investigation obstructs, in Basins, for example, Mahanadi, Mumbai, Cambay,
Assam-Arakan, Tripura Fold Belt, Gujarat Kutch, Krishna Godavari, Cauvery and Cauvery Palar. GAIL
has association in these squares with different organizations, for example, ONGC, OIL, GSPC, Hardy
Exploration and Production, Petrogas, JOGPL, Eni and Daewoo as Operators.
GAIL is an active member of multi-organisation team (MOT) set-up for assessment of shale gas
potential in Indian basins. GAIL is also a member of National Gas Hydrate Program.
 Telecommunication
GAILTEL, the Telecom and Telemetry administrations arm of GAIL (India) Limited, is giving
correspondence administrations to its business basic pipeline Supervisory Control and Data
Acquisition (SCADA), Enterprise Resource Planning (ERP) for automation of association wide
business forms/works and entomb/intra office interchanges separated from monetarily renting
telecom administrations to telecom administrators crosswise over India since 2001.

GAILTEL has a scope of around 13,000 km of OFC system along GAIL's dependable cross country
pipelines (5,681 km) and state/national parkway highways (7,346 km), interfacing 150 towns/urban
areas traversing crosswise over Rajasthan, Gujarat, Madhya Pradesh, Uttar Pradesh, Maharashtra,
Andhra Pradesh, Karnataka, Tamil Nadu, Kerala and NCR.

 Electricity Generation
Ratnagiri Gas And Power Pvt. Ltd. (RGPPL) is a joint wander organization between GAIL (India) Ltd,
NTPC Limited, Indian Financial Institutions (IFIs) and MSEB Holding Company Limited. The promoters
have fused and enrolled the organization as a private restricted organization on 8 July 2005. The
approved share capital of the organization is 20 billion and the shareholdings of GAIL, NTPC and IFI's
are 28.3% each and MSEB 15%. The venture is situated at Ratnagiri locale of Maharashtra state
around 340 km south of Mumbai. The venture has control era limit of 2150 MW alongside a
coordinated 5 MMTPA LNG terminal. Essential fuel for the power plant is common gas.

8. Technical Prowess
Technical Mastery of GAIL and be observed by seeing the wide array of businesses they are in. But if we
concentrate on the Natural gas sector, company is posting net profits in hundreds of crores in past few
quarters even though there is a decline in demand and import price hike. Their broad infrastructure of
pipelines and their capabilities in managing and operating effectively has made them one of the trusted
brand in India.
 9. Employee skills required
The company expects in-depth knowledge in the field employee will be working on. Most of their
recruitment processes consists of written round to test the technical proficiency of and hold over that
particular field. Secondly, good communication skills and interpersonal skill are indispensable for
employees in various sectors of the company.

10. Company Structure & Culture

Structure of GAIL is not very different from any ordinary PSU. It is highly vertical and strict hierarchy is
present. But what is different in GAIL then others is the organization culture. Since the inception of GAIL,
their objective has been to achieve business growth through lean and thin workforce. This pushes the
employees to strive towards perfection. GAIL is a dynamic organization which believes in investing on its
employees and offers several opportunities for growth and development. “Engaging their employees for
superior results in their mantra.” Organization values commitment, dedication, integrity and sincerity
and a result of which employees are expected to take initiatives and surpass expectations from the early
stages. Close working relationship with peers & superiors, collaborative & supportive working
environment and informal work culture are some of the facets of GAIL which makes it a very exciting
company to work for. Accessible senior leadership is a part of GAIL’s culture.

11. Job Profiles in the company

Different job profiles are available in GAIL for a management graduate. They are as follows

 Business Development
 Business Information System
 Corporate Planning
 Corporate Affairs
 Marketing
i. Products like Natural Gas, Petrochemicals and Liquid Hydrocarbons
ii. Services like Natural Gas, LPG transmission.
 Corporate Communications
 Corporate Social Responsibility
 Contract and Procurement
 Finance
 Human Resource
 Operations and Maintenance