Indian Oil Corporation

Indian Oil is a government-owned company in India. It is owned by the Ministry of

Petroleum and Natural Gas of the Government of India, which is based in New Delhi. As of
2021, the government firm is placed 212nd on Fortune's Global 500 list of the world's
largest enterprises. With a net profit of $6.1 billion for the fiscal year 2020-21, it is the
country's largest government-owned oil firm. Indian Oil has 31,648 employees as of March
31, 2021, with 17,762 executives and 13,876 non-executives, and 2,775 women, accounting
for 8.77 percent of the overall workforce.

Indian Oil's commercial activities span the whole hydrocarbon value chain, including
refining, petroleum product marketing, pipeline transportation, crude oil exploration and
production, petrochemicals, and natural gas production. Indian Oil has dabbled with
alternative energy and downstream globalization. In Sri Lanka (Lanka IOC), the Middle East
(IOC Middle East FZE), and Mauritius (Indian Oil (Mauritius) Ltd), the company has
subsidiaries.

For the second year in a row, IOCL became India's most lucrative government company,
with a record profit of 21,346 crores in 2017–18, followed by Oil and Natural Gas
Corporation, which had a profit of 19,945 crores. [14] The firm secured an agreement with
the Russian oil major Rosneft in February 2020 to acquire 140,000 barrels of petroleum per
day in 2020. [15] By April 1, 2020, Indian Oil was fully prepared to launch BS-VI (Bharat Stage
VI) fuels in all its Telangana retail stores and embrace world-class emission standards. [16]

Sales of 410,000 barrels of oil per day were recorded at an all-time high of 410,000 barrels
per day from January 2021 to January 26th, 2021. Its major commercial partners are Delek,
Qatar Petroleum, and Saudi Aramco, with Abu Dhabi National Oil Company and National
Iranian Oil Company finalizing agreements to produce high production output by the end of
2020. (1, n.d.)
MILESTONE

1959 - The Company was incorporated on 30th June, under the name and style of the Indian
Oil Company, Ltd. With a view to coordinating the activities of the Indian Refineries, Ltd.,
and Indian Oil Company, Ltd.

1962 - In November, the Corporation signed an agreement with Mobil Petroleum Co., Ltd.,
New York, for setting up of two blending plants in Calcutta and Mumbai.

1965 - The Corporation entered the field of LPG for domestic cooking and distribution
started under the name `Indane' in selected cities of the Eastern region

1972 - Government gave its decision to set up a refinery at Mathura (U.P). in collaboration
with USSR. In terms of the collaboration, a contract was entered into with Neftechimprom
export for project report, technical assistance, supply of materials etc.

1988 - The Corporation added 8 new bottling plants at Delhi (Tikrikalan), Karnal. Haldwani,
Ajmer, Bhopal, Jamshedpur, Balasore and Parwanoo (Baddi).

1995 - With the addition of two new LPG bottling plants at Belgaum and Delhi, the 35 LPG
bottling plants have capacity to bottle 13.29 lakh tonnes LPG per annum.

2004 -Launches its premium, hi-octane petrol, Xtra Premium in Visakhapatna.

2011 -The historic Digboi Refinery bagged the third prize in the category of environmental
campaign at the 33rd All India Public Relations Society of India Awards held at Nagpur
(Maharashtra) recently.

2015 -Indian Oil Corporation commenced construction work on its proposed 4 MW solar
power project at Muttam village in the district.

2017 - Indian Oil to set up 28 petrol outlets on TSRTC lands." & "IOC to set up ethanol plant
in Panipat" - Indian Oil Corporation (IOCL) has decided to set up a second-generation
ethanol plant over an area of 50 acres at Panipat in Haryana. (1, n.d.)
CONTRIBUTION OF INDIAN OIL CORPORATION.

Indian oil corporation stands among the top 10 companies in the Indian oil and gas industry.

the last 52 week analysis the highest share price was 141.50 and the lowest was 84.20. the
book value of share is 134.67.

With a turnover of Rs. 6,05,924 crore (US$ 86.70 billion) and a market capitalisation of Rs.
1,71,511 crore (US$ 26.61 billion) in FY20, it is recognised as one of India's most valuable
companies. The company continues to be the largest contributor to the national exchequer
in the form of duties and taxes. (2, n.d.)

(2, n.d.)

SWOT analysis:
Strength:
1.IOCL is India's largest commercial enterprise with a strong brand name
2. Indian Oil has several petroleum products, fuels, lubricants, petrochemicals etc
3. Operates several refineries in India
4. Huge distribution network through retailing makes Indian Oil a renowned brand name
5. Accounts for a majority share in the petroleum products market as well as substantial
share in refining capacity and downstream sector pipelines capacity in India
6. IOCL has nearly 35,000 employees (4, n.d.)
Weakness:
1. Limited market share increase due to fierce rivalry from other oil corporations.
2. The activities of a government-controlled firm like IOCL are hampered by bureaucracy. (4,
n.d.)
Opportunities:
1. IOCL can benefit from rising demand and increased fuel/oil costs.
2. The demand for natural gas in industries and transportation is growing.
3. Foreign expansion through joint ventures with international oil firms.
4. IOCL's position can be bolstered through the acquisition of smaller businesses. (4, n.d.)
Threat:
1. Government rules can stifle growth.
2. IOCL's market share is limited due to intense competition.
3. non-governmental organizations (NGOs) and enterprises that are concerned about the
environment might be a barrier to doing business.
Indian Oil controls approximately half of India's petroleum products market, 35 percent of
national refining capacity (via its subsidiary Chennai Petroleum Corporation Ltd., or CPCL),
and 71% of downstream sector pipeline capacity. 11 of India's 23 refineries are owned and
operated by the Indian Oil Group, with a total refining capacity of 80.7 million tonnes per
year. (4, n.d.)

CHALLENGES FACED BY THE COMPANY :

India oil has been suffering from the problem of shortage of raw materials, i.e., petroleum
crude.
India oil has been depending too much on foreign countries for the supply of petroleum
crude and machineries.
Company is also suffering from numerous technical problems in respect of production of
middle distillates, activating its firefighting systems etc.
The growing pollution near the refineries and oil fields is a big problem for company . The
Government is trying to control such pollution by adopting certain effective measures. (5,
n.d.)
Bibliography
(2, n.d.)

(1, n.d.)
(3, n.d.) (4, n.d.)

(5, n.d.)