INTERNSHIP REPORT

JUNE 7th 2021

INDIAN OIL CORPORATION LIMITED

KARNATAKA STATE OFFICE

BENGALURU, INDIA

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 INTERNSHIP REPORT

Submitted in partial fulfilment of the requirements of the Internship

Certificate

BY

Aditi Pant

Pursuing Second Year Bachelors of Business Administration

CHRIST (Deemed to be) UNIVERSITY

Bengaluru, India

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 Acknowledgement

I would like to take this opportunity to thank Indian Oil Corporation Limited for giving me
the internship opportunity. The internship was truly an enriching experience and helped me
develop my practical skills.

I also extend my heartfelt gratitude to Ms Sneha Sah Biala Ma‟am, and Mr A Periasami Sir,
for providing me with constant support and encouragement, and ensuring I learned something
new throughout my internship. The internship program could be successful only due to their
support.

Lastly, I would like to thank my college, family, and friends, for encouraging me to work
diligently and seek learning in all my endeavours.

- Aditi Pant

Place: Bengaluru, India

Date: 4th June 2021

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 Declaration

I, Aditi Pant, hereby declare that the Internship at Indian Oil Corporation Limited was in
partial fulfilment of the requirements for the award of the Degree of Bachelor of Business
Administration. This report is a record of original and independent study undertaken by me
during 2020–2021 under the supervision and guidance of Miss Sneha Sah Biala and Mr A
Periasami.

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 Table of Contents

Serial Number Title Page Number

1 Industry Profile 6

2 Market Share 7

3 Company Profile 8

4 Internship Experience 11

5 Behavioural Learning 13

6 Conclusion 14

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 Industry Profile

Overview of Oil and Gas Industry

Although there is an increased focus on renewable energy, demand for oil has always been on
the rise, and is estimated to grow at least until 2040. India‟s oil consumption grew 8.3 percent
year-on-year to 212.7 million tons in 2016, as against the global growth of 1.5 percent,
thereby making it the third-largest oil consuming nation in the world. The O&NG industry in
India has huge potential and contributes over 15% to the India‟s GDP.
Industry at a Glance:
India imports and exports the following commodities
 Crude Oil
 LNG
 Petroleum Products
Companies in Oil and Gas Industry can be broadly classified into Upstream, Midstream and
Downstream.
 The Upstream Sector includes searching for potential underground crude oil and
natural gas fields, drilling exploratory wells, and subsequently drilling and operating
the wells that recover and bring the crude oil or raw natural gas to the surface.
 The Midstream Sector includes the processing, storing, transporting and marketing
of oil, natural gas and natural gas liquids.
 The Downstream Sector is the refining of petroleum crude oil and the processing
and purifying of raw natural gas, as well as the marketing and distribution of products
derived from crude oil and natural gas. The downstream sector reaches consumers
through products such as such as gasoline or petrol, kerosene, jet fuel, diesel oil,
heating oil, fuel oils, lubricants, waxes, asphalt, natural gas, and liquefied petroleum
gas (LPG) as well as hundreds of petrochemicals.
The key players from each sector are as follows:
 Upstream Sector
o Indian Oil Corporation Limited
o Oil and Natural Gas Corporation Limited
o Reliance Industries Limited
o Oil India Limited
 Midstream Sector

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 o Indian Oil Corporation Limited
o GAIL India Limited
o Reliance Industries Limited
o Indraprastha Gas Limited
 Downstream Sector
o Indian Oil Corporation Limited
o Reliance Industries Limited
o Bharat Petroleum Corporation Limited
o Hindustan Petroleum Corporation Limited
Indian Oil Corporation Limited operates in all the streams – Upstream, Midstream and
Downstream.
Market Share
Private fuel retailers like Rosneft-owned Essar Oil and Reliance Industries have doubled their
market share in last three years, capturing close to 7 per cent of petrol sales and over 8 per
cent of diesel sales. Consequently, Reliance, Essar and Shell set up petrol pumps to directly
compete with public sector giants like Indian Oil Corp (IOC). In the initial years, private
firms were aggressive in setting up of petrol pumps. However, they slowed down once
government control over pricing came back in vogue in 2004-05, and they couldn't compete
with subsidized fuel sold by PSUs.
PSU sales rose from 20.95 million tonnes in 2015-16 to 22.39 million tons in the following
year before dropping to 21.99 million tons in 2017-18. Private retailers, on the other hand,
saw petrol sales double - from 767,900 tons in 2015-16 to 1.59 million tons in 2017-18.
India had 61,678 petrol pumps as of January 2017. IOC operates the maximum 26,752
pumps, HPCL has 14,853 and BPCL 14,293 pumps. In the private sector, Essar had 4,275
petrol pumps while Reliance had 1,400 retail outlets. Shell operates 100 petrol pumps.
Government Regulations
 The main laws affecting the O&NG Industry are as follows:
 The Petroleum Act, 1934
 The Oil fields (Regulation and Development) Act, 1948
 The Petroleum and Natural Gas Rules, 1959
 The Petroleum and Natural Gas Regulatory Board Act, 2006
 Hydrogen Exploration and Licensing Policy (HELP)

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 Company Profile

Historic Information
Indian Oil Corporation (IOC), India‟s flagship national oil company and downstream
petroleum major, was incorporated on June 30, 1959 as Indian Oil Company. The company
was renamed as Indian Oil Corporation on September 1, 1964 following the merger of Indian
Refineries (established 1958) with it.
The Indian Oil Group of companies owns and operates 11 of India's 23 refineries with a
combined refining capacity of 60.2 million metric tons per annum (MMTPA .i.e., 1.2 million
barrels per day). These include two refineries of subsidiary Chennai Petroleum Corporation.
The corporation's cross–country network of crude oil and product pipelines, spanning over
10,000 km and the largest in the country, meets the vital energy needs of the consumers in an
efficient, economical and environment–friendly manner.
IOCL reaches precious petroleum products to millions of people every day through a
countrywide network of about 35,000 sales points. They are backed for supplies by 167 bulk
storage terminals and depots, 101 aviation fuel stations and 89 Indane (LPG) bottling plants.
About 7,335 bulk consumer pumps are also in operation for the convenience of large
consumers, ensuring products and inventory at their doorstep.

The company operates the largest and the widest network of petrol and diesel stations in the
country, numbering over 18,278. It reaches Indane cooking gas to the doorsteps of over 53
million households in nearly 2,700 markets through a network of about 5,000 Indane
distributors.

Indian Oil is currently metamorphosing from a pure sectorial company with dominance in
downstream in India to vertically integrated, transnational energy.

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The corporation is implementing a master plan to emerge as a major player in petrochemicals
in integrating its core refining business with petrochemical activities, besides making large
investments in E&P and import/marketing ventures for oil and gas in India and abroad.

With a view to this Indian Oil is strengthening its exiting overseas marketing ventures and
simultaneously scouting new opportunities for marketing and export of petroleum products to
new energy markets in Asia and Africa.

Products

Indian Oil accounts for nearly half of India's petroleum products market share, 35% national
refining capacity (together with its subsidiary Chennai Petroleum Corporation Ltd., or
CPCL), and 71% downstream sector pipelines through capacity.

The Indian Oil Group owns and operates 11 of India's 23 refineries with a combined refining
capacity of 80.7 MMTPA (million metric tons per annum). Indian Oil's cross-country
pipeline network, for transportation of crude oil to refineries and finished products to high-
demand centers, spans over 13,000 km IOCL has a throughput capacity of 80.49 MMTPA for
crude oil and petroleum products and 9.5 MMSCMD for gas.

On 19th November 2017, IOCL, in collaboration with Ola, launched India‟s first electric
charging station at one of its petrol-diesel stations in Nagpur. Indian governments‟ National
Electric Mobility Mission Plan launched in 2013 aims at gradually ensuring a vehicle
population of 6 to 7 million electric and hybrid vehicles in India by 2020.

The retail brand template of XtraCare(Urban), Swagat (Highway) and Kisanseva Kendra‟s
(Rural) are widely recognized as pioneering brands in the petroleum retail segment. Indian
Oil‟s leadership extends to its energy brands: Indane LPG, SERVO Lubricants ,Auto gas
LPG, XtraPremium Branded Petrol, XtraMile Branded Diesel, XtraPower Fleet card, Indian
Oil Aviation, and XtraRewards Cash customers loyalty programme.

Areas of Operation

In the upstream sector, it searches for potential underground crude oil and natural gas fields.
To meet the huge demand in India, IOCL imports 80% of crude oil. IndianOil controls 11 of
India‟s 23 refineries. Some of the Refineries of IndianOil are given below.

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The Midstream activities include the processing, storing, transporting and marketing of oil,
natural gas and natural gas liquids. IOCL operates a network of about 12848 km long crude
oil, petroleum products and gas pipelines with a throughput capacity of 93.7 MMTPA of oil
and 9.5 million metric standard cubic metre per day of gas.

The downstream sector reaches consumers through products such as such as gasoline or
petrol, kerosene, jet fuel, diesel oil, heating oil, fuel oils, lubricants, waxes, asphalt, natural
gas, and liquefied petroleum gas (LPG) as well as hundreds of petrochemicals. IOC operates
the maximum 26,752 pumps in India. It has offices in all major cities of each state.

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 Internship Experience

I worked in the finance department of Indian Oil Corporation Limited, Karnataka State
Office, Bengaluru. In specific, I worked with taxation and pricing.

Initially, I was given information on the Marketing Discipline Guidelines, which ensure that
distributors follow operating policies, procedures and practices, and various actions to be
taken against erring distributors.

I was also introduced to the concept of Vendor Reconciliation, which would form the basis of
the majority of my work at IOCL.

After completing the vendor reconciliation project, I was given a new project to work on –
calculating rates and profit margins, and analyzing the differences between the rates and
profit margins at different points in time.

The project helped me to understand the pricing and costing of different products.
Considering the fact that I had historic data, I could also identify the impact the pandemic had
on the prices and revenue.

The following was my learning in different fields:

Marketing Discipline Guidelines

The Marketing Discipline Guidelines form part and parcel of the instructions as issued from
time to time under relevant clause on „Faithful Performance‟ of the
Distributorship/Dealership Agreement. These guidelines do not preclude any action under the
Distributorship Agreement.

The Marketing Discipline Guidelines has been in existence for over 30 years. The first
Marketing Discipline Guidelines were introduced in 1982. These were subsequently revised
in 1988, 1994, 2001, 2014, 2015, and thereafter in 2017. These guidelines need to be
constantly updated to meet the requirement of new schemes, challenges of IT, the growing
customer expectations, ensuring quality of product and services, enforcing discipline amongst
the distributorship network and prevent malpractices in the sale of petroleum products. The
guidelines are revised to include the requirements of the PMUY scheme.

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These guidelines ensure that distributors follow operating policies, procedures and practices,
and various actions to be taken against erring distributors.

Vendor Reconciliation

Vendor reconciliation means statement showing difference of Company payable

to vendor a/c balance and vendor outstanding balance. It is reconciled from both accounts:
Balance Company and vendor. If there is any advance to vendor, it will reduce the balance
from company payable amount.

Vendor payments account for a substantial cash outflow in any

given business. Typically, Account payable managers perform a reconciliation of vendor
statements for ease of function. Even though this task can be time-consuming and tedious, it
offers many benefits. To ensure optimal business performance, every operational function,
including vendor reconciliations must be effectively implemented and utilized.

I was given a large Excel document to work on. It had information regarding the vendors and
tax amounts. My job was to spot the differences between the tax amounts for IOCL and the
vendor companies, identify reasons for the differences, and reconcile and close the accounts.

I was able to understand the reasons for differences between accounts of vendors and
companies, and how these can be resolved.

Rate and Profit Margin Analysis

I was given a new Excel spread sheet and was explained how I had to make different
calculations and analyse the results, and further depict them in graphical form based on
different requirements.

The project helped me to understand the pricing and costing of different products.
Considering the fact that I had historic data, I could also identify the impact the pandemic had
on the prices and revenue.

Microsoft Excel Proficiency

Since a lot of my work was spreadsheet-based, I got a better understanding regarding the
functioning of Microsoft Excel, which is an integral tool in the corporate world. Microsoft
Excel is a helpful and powerful program for data analysis and documentation. It is a

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spreadsheet program, which contains a number of columns and rows, where each intersection
of a column and a row is a “cell.” Each cell contains one point of data or one piece of
information. By organizing the information in this way, you can make information easier to
find, and automatically draw information from changing data. I also learned about different
shortcut keys used in Excel, which would be really useful for me in the coming days.

Behavioural Learning from the Internship

Communication

Good communication skills are essential to allow others and yourself to understand
information more accurately and quickly. In contrast, poor communication skills lead to
frequent misunderstanding and frustration. In today's hectic world, we rely heavily on sharing
information, resulting in greater emphasis being placed on having good communication skills.
Good verbal and written communication skills are essential in order to deliver and understand
information quickly and accurately. Being able to communicate effectively is a vital life skill and
should not be overlooked. I learned how we should interact with professionals working in
corporates. I also learned to pay attention to details communicated to me in order to avoid
confusion.

Punctuality

Punctuality displays a person‟s respect for people and time. This not only means being on
time for work, but also depicts the importance of finishing the work before or on time. I
learned to finish my work punctually in order to avoid delays, which formed an important
aspect of my overall learning from my internship.

Self-Improvement

Throughout my internship, I was constantly motivated to do better and work on myself. This
helped me to keep a constant check on my work and ensure perfection. Recognising and
acknowledging my shortcomings and working on them to become better was one of the most
important things I learned from my internship.

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 Conclusion

Six weeks of my Internship at Indian Oil Corporation Limited have given me immense work
experience and confidence. The following are my major learning‟s during my internship with
the company.

 Study of Indian Economy and Role of Oil and Gas Industry in India‟s Growth
 Decision Making Process in the Company including hierarchy structure
 Functions of each department like HR, Finance, Projects, Material & Contracts and
Planning & coordination.
 Operational Areas of IOCL like Refineries, Marketing, Pipelines, Research &
Development, gave me more practical knowledge of the field.
 Different Products manufactured by IOCL and its market share.
 Vision, mission and core values and their importance.
 Analysis of the company‟s strengths, weaknesses, opportunities and threats.
 Roles and Responsibilities of each grade of employees in the organization.

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