Indian Oil Corporation Ltd.

An Internship Report

Giselle Charisma Sequeira SSN: 889-94-0978
In Partial Fulfillment of the Master s Program in Business Administration, Ohio University, Athens, USA

OHIO University Christ College Academy for Management Education Christ College Campus, Hosur Road, Bangalore-29

April 2007

ACKNOWLEDGEMENTS

Completing a task is never a solo effort. It is often the result of invaluable contributions by a number of individuals in a direct or indirect manner, which helps in the shaping and achievement of success. Firstly, I would like to express my sincere gratitude to Mr. Nilesh Nekaljay, Manager (T&D) for granting me the opportunity to undertake an internship at the Indian Oil Corporation Ltd. (Marketing Division, Mumbai). I am extremely grateful to my project guide, Mr. Vigyan Kumar, Manager (Retail Sale) for his encouragement and patience throughout the duration of this project. Without his vision, guidance and support this report would not have materialized. I would also like to deeply thank the various people at IndianOil who, during the period of my internship, provided me with useful and helpful assistance. Without their care and consideration this report would not have been completed. I am thankful to the Internship Coordinators at Ohio University Christ College, Dr. Amalendu Jyotishi and Mr. Girish M. for their invaluable support and guidance during the internship period.

Last but not the least, I would like to thank my parents for their inestimable love, support and encouragement which gave me the confidence and determination to carry out this project.

EXECUTIVE SUMMARY

The deregulation of the Indian Petroleum sector in 1999 brought about a major change in the way Petroleum companies conduct their business. This sector has been exposed to new market forces and competition has grown enormously. With the entry of private players, the consumers demands have increased. The existing players have thus come to recognize the need to evolve at a quick pace and to be market driven, service driven and most importantly relationship driven. Loyalty programs is the new trend which is catching up at a relatively fast pace in India.

Indian Oil Corporation Limited (IOCL) is running its own loyalty based fleet card program known as the XTRAPOWER Fleet Card Program. Launched in March 2004, this program has emerged as the largest and most wide-ranging fleet card program in the country and has crossed the mark of one million customers. In spite of this program s huge success and active promotional schemes being undertaken by IOCL, the current customers are not using the cards to the full extent. The main objective of my project at IOCL was to, thus, study the XTRAPOWER Fleet Card Program Proposition and to recommend steps to be taken to enhance card usage. This project report includes the methodology of the research undertaken, findings and solutions to the current problems being faced by customers.

31 . Additional Information on Reward Program 4.TABLE OF CONTENTS Particulars Page No. Program Details 2.37 ... The Oil Industry in India y 5 .. Mission & Values Organization Structure Business of IndianOil IndianOil Products IndianOil Brands Group of Companies Financial Analysis Project Findings y y Petrol Retail & Consumer Loyalty In India XTRAPOWER Fleet Card Program 1. Additional Information on Insurance Cover .32 ..40 Oil Industry Structure In India Indian Oil Corporation Limited y y y y y y y Vision..8 9 . 28 29 .6 7 ...22 27 .16 . 14 .38 .. Additional Information on Fleet Tracking 3.10 ..

...y y Objective & Scope of the Study Market Research Methodology . Statistical Inference & Findings y y y Total Customers Contacted [Diagram] Problems Faced by Inactive Customers [Diagram] Problems Faced by Active Customers (Customers Temporarily Inactive During Oct-Nov. (DARCL) Contacted and Reasons for Cards Not Being Used 50 ... ..58 .56 ..59 .. . Selecting & Establishing the Research Design 3. 2006) [Diagram] . Defining the Research Problem 2.42 42 42 . .44 46 . Collecting & Analyzing Data 4. Conclusion & Future Line of Work References Appendix y y Appendix 1 Appendix 2 ..61 y y y SWOT Analysis Recommendations . ..47 1.....59 .52 ....53 .. Ltd. .47 48 y Reasons Why Customers are Not using the Cards y Branches of Delhi Assam Roadways Corp. .46 .43 .

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02 BCM respectively. .92 MMT respectively. The production and consumption of petroleum products was estimated at 119. 2006. The country imports more than 70% of its crude oil requirements. The oil and gas industry is broadly classified into Upstream. y UPSTREAM SECTOR: The upstream sector. markets and transports commodities such as crude oil. propane and butane. Midstream operations are usually included in the downstream category.THE OIL & GAS INDUSTRY IN INDIA India is the sixth largest consumer of oil. Midstream and Downstream segments.11 MMT and 31. natural gas and natural gas liquids (NGLs) such as ethane. India has recently emerged as net exporter of petroleum products. During the same year. y MIDSTREAM SECTOR: The midstream sector processes. The Indian Oil Industry comprises of 18 refineries with a total refining capacity of 132. stores. In the year 2005. the consumption of crude oil and that of natural gas was estimated at 130.75 MMTPA and 111. and subsequently operating in the wells that recover and bring the crude oil and/or raw natural gas to the surface. There exists a huge gap between the demand and supply of oil and gas in India. followed by coal at 55%.47 MMTPA as of April 1. oil and gas accounted for 38% of primary energy consumption in India. the drilling of exploratory wells. is concerned with the search for potential underground or underwater oil and gas fields. also known as the exploration and production (E & P) sector.

asphalt. OIL & GAS INDUSTRY STRUCTURE IN INDIA Oil and Natural Gas Corporation Ltd. petroleum product distribution. pharmaceuticals. synthetic rubber. diesel. (IOCL) Reliance Industries Ltd. retail outlets and natural gas distribution companies. (RIL) . petrochemical plants. fertilizers.y DOWNSTREAM SECTOR: The downstream sector includes oil refineries. antifreeze. heating oil. plastics. The downstream sector reaches thousands of products such as gasoline. jet fuel. pesticides. lubricants. (ONGC) UPSTREAM Oil India Ltd. Indian Oil Corporation Ltd. natural gas and propane to consumers.

(HPCL) Mangalore Refinery & Petrochemicals Ltd. (BPCL) Hindustan Petroleum Corporation Ltd.DOWNSTREAM Bharat Petroleum Corporation Ltd. (GAIL) . (MRPL) GAS TRANSPORT & DISTRIBUTION Gas Authority of India Ltd.

915 crore (US$ 1. accounts for a market share of 47% in petroleum products.000 km meets the vital energy needs of the country. IndianOil. having moved up 17 places to the 153rd position this year based on the performance of the fiscal year 2005. 4. Indian Oil Corporation Ltd. Company profile: Formed in 1964 through the merger of Indian Oil Company Ltd.10 billion) in the fiscal year 2005.204 crore (US$ 41 billion) and profits of Rs. . (CPCL) and one of the Bongaigaon Refinery & Petrochemicals Ltd.6 million tonnes through exports. In addition to being the 21st largest petroleum company in the world. 1958). 1. it also tops the list of the petroleum trading companies among the National Oil Companies in the Asia-Pacific region.83.1 million barrels per day). (Estd. 41% refining capacity and a petroleum product capacity of 51% in India. 1959) and Indian Refineries Ltd. (BRPL). The IndianOil Group of companies presently owns and operates 10 out of 18 refineries with a combined refining capacity of 54.INDIAN OIL CORPORATION LTD. the IndianOil Group sold 54. along with its subsidiaries. (Estd.20 million tonnes per annum (1. IndianOil also enjoys the status of being the highest ranked Indian company in the prestigious Fortune Global 500 listing. (IndianOil) is presently India s largest commercial enterprise with a sales turnover of Rs. In the year 2005-06. The Corporation s cross-country crude oil and product pipeline network spanning over 9. These include two refineries of the subsidiary Chennai Petroleum Corporation Ltd.

MISSION & VALUES Vision A major diversified. integrated energy company.VISION. with national leadership and a strong environment conscience. playing a national role in oil security& public distribution. y y To maximize creation of wealth. value and satisfaction for the stakeholders.the-art technology for competitive advantage. and cost reduction. To foster a culture of participation and innovation for employee growth and contribution. . y y To provide technology and services through sustained Research and Development. To attain leadership in developing. transnational. Mission y 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. adopting and assimilating state-of.

which are: y y y y Care Innovation Passion Trust ORGANIZATION STRUCTURE The organization structure of the Indian Oil Corporation Ltd. y To help enrich the quality of life of the community and preserve ecological balance and heritage through a strong environment conscience. Values IndianOil nurture a set of core values. marketing. finance. research & development. . Each division is headed by a director with general managers and executive directors working under him.y To cultivate high standards of business ethics and Total Quality Management for a strong corporate identity and brand equity. and planning and business. refineries. is divided on the basis of the company s functions comprising of pipelines. human resource.

. Employee involvement is thus encouraged through a decentralized decision making process. There are many individual units within the organization which enables the existence of a horizontal organization structure. I can state that the organization structure of IndianOil is fairly flat with few levels of intervening management between staff and managers. workers are more directly involved in the decision making process concerned with the company.On the basis of my observations. Rather than being closely supervised by many layers of management.

BUSINESS OF INDIANOIL y y y y y y y Refining Pipelines Marketing Research & Development Petrochemicals Gas Exploration & Production Refineries: IndianOil presently owns and operates 10 out of India s 18 refineries with a current combined capacity of 54. The seven refineries together achieved a capacity utilization of 93. All refinery units are accredited with ISO 9002 and ISO 14001 certifications. During the year 200506 IndianOil refineries recorded a crude oil throughput of 38. West Bengal) . which is functioning under the Refineries Division.1 million tonnes per day).20 million tonnes per annum (1. Bihar) Haldia Refinery (Near Kolkata.52 million tonnes.1%. higher than the Asia-Pacific average of 91.5% which also happens to be the highest in the last six years. The fiscal year 2005 also witnessed IndianOil becoming the first public sector organization in the country to have its own ship Chartering Cell. The refineries are as follows: y y y y Guwahati Refinery (Assam) Digboi Refinery (Upper Assam) Barauni Refinery (Near Patna.

) Pipelines: IndianOil owns and operates a pipeline network of 9.) CPCL (Chennai Petroleum Corporation Ltd.35 million metric tonnes during the year 2005-06. This widespread network of pipelines achieved the highest ever throughput of 45.y y y Mathura Refinery (Near Delhi) Panipat Refinery (Near Delhi) Koyali Refinery y y BRPL (Bongaigaon Refinery & Petrochemicals Ltd. The major pipelines of IndianOil are: y y y y y y y Salaya Mathura Pipeline Kandla-Bhatinda Pipeline Mathura-Jalandhar Pipeline Guwahati-Siliguri Pipeline Barauni-Kanpur Pipeline Haldia-Barauni Pipeline Koyali-Roorkee Pipeline Marketing: . the largest network of crude oil and product pipelines in India.024 km.

8 billion) investment by the year 2011-12. LPG distributors. IndianOil s R&D Centre developed 85 cost-effective formulations during the year. The company is currently executing a plan to achieve Rs. Petrochemicals: IndianOil has been continuously striving for growth by incorporating its core business with opportunities available in the petrochemicals sector. IBP Co.IndianOil has a wide spread marketing network with over 23. Divisional and Indane Area offices have also been set up in each region. Research & Development: Operating the first R&D Centre to get ISO 9002 and 14001 Certifications. SERVO shops. These include petrol/diesel stations. IndianOil boasts of having the best Research & Development Centre in Asia which is also one of the finest in the world. out of which 74 were commercialized. 30. West and Southern Regions of India. It has been involved in world-class petroleum research and is carrying out extensive work on refinery processes and transportation of pipelines. Ltd. IndianOil commands a dominant market share in the petroleum retail segment in India and has over 10. and Assam Division supplements operations in the North-East.000 sales points. In order to . lube distributors.000 crore (US$ 6. East.144 petrol and diesel stations spread throughout the country along with an additional 3. The regional offices are in charge of the North. the R&D Centre commissioned IndianOil s first Hydrogen-CNG (H-CNG) dispensing station in October 2005. consumer outlets. SKO/LDO dealers. State level.272 of the subsidiary company. Marking a new milestone in the march towards a Hydrogen-fuelled economy.

Exploration & Production (E&P): Having participated actively in the bidding rounds to increase the indigenous production of Oil. A Naphtha Cracker with downstream polymer units. In order to strengthen its presence in the petrochemicals sector. . designed to produce 8. The corporation is already marketing 1. IndianOil. a world-scale Linear Alkyl benzene (LAB) plant at the Gujarat Refinery and an integrated Paraxylene/Purified Terephthalic Acid (PX/PTA) plant at Panipat are already in operation. Gas: As a step towards expanding its business in the Natural Gas sector. IndianOil has also embarked on a pilot project to supply LNG through cryogenic road/rail tankers as the limited gas pipeline infrastructure in the country presents good opportunities in this area. IndianOil has entered into a joint venture with GAIL (India) Ltd. in 2005 to distribute city gas.000 tonnes per annum of Propylene is coming up at Panipat.000 tonnes per annum of Ethylene and 6.implement this plan. Entry in the shipping business is being actively pursued in order to implement the corporation s strategy to participate in the entire gas value chain. called Green Gas Ltd.00.43 million tonnes per annum.00.75 million tonnes of LNG per annum starting from the year 2009 onwards. is another emerging growth area for IndianOil. IndianOil also plans to develop a refinery cum petrochemicals complex at Paradip on the east coast of India. IndianOil has signed an MOU with Iran to implement the import of 1. under the New Exploration Licensing Policy (NELP) in consortium with other companies has bagged nine blocks in the first three rounds. This project initially launched in Agra and Lucknow.

the Farsi exploration block in Iran and onshore farm-in arrangements in Gabon.The corporation has also obtained participating interest in on-shore blocks in Assam and Arunachal Pradesh. . IndianOil has undertaken overseas ventures including two gas blocks in the Sirte basin of Libya. Opportunities are being explored to acquire a suitable medium-sized E&P company in order to consolidate its upstream portfolio.

Fuels & Feedstock y y y Naphtha Light Diesel Oil Furnace Oil/ LSHS/ HHS 2. Lubricants & Greases y Automotive Lubricating Oils .INDIANOIL PRODUCTS Indian Oil Corporation Limited has a number of products which are as follows: 1.

Motor Spirit/ Gasoline .y y y y y y y y y y y Automotive Specialty Oils Railroad Oils Industrial Lubricating Oils Metal Working Oils Agricultural Spray Oils Automotive Greases Railroad Greases Industrial Greases Marine Lubricating Oils Defense Grade Lubes Industrial Specialty Oils 3. Petrochemicals & Specialties y y y y y Benzene Calcined Petroleum Coke Hexane Jute Batching Oil Paraffin & Microcrystalline Waxes 4. Liquefied Petroleum Gas 5.

6. High Speed Diesel/ Gas Oil 8. Superior Kerosene Oil/ KERO 7. Aviation turbine fuel/ Jet Kero .

XtraPower 7. Premium Fuels-XtraPremium & XtraMile 6. µSwagat Highway Flagship Retail Outlets 9. SERVO 2. IndianOil Aviation Service 5. XtraCare 10. XtraRewards 8. Kisan Sewa Kendras 1.000 Retail Outlets and a . Indane LPGas 3. SERVO is also India s largest selling lubricant brand.INDIANOIL BRANDS 1. The SERVO range of lubricants is available to customers at over 9. SERVO: IndianOil s Global Brand. AutoGas 4.

Bajaj and Lancer. over 1. medical labs. Burkina Faso. Bangladesh. is widely used in commercial sectors like industries. Having been developed at IndianOil s world-class R&D Centre at Faridabad. This range of lubricants is used in nearly all applications covering automotive. Sri Lanka. with a market share of 48% and a network of 4. etc. Extensive safety tests have led to the conclusion that Autogas is substantially safer than petrol due to its more robust fuel tank having a resistance to impact damage. AutoGas: AutoGas is Liquefied Petroleum Gas (LPG) used as an alternative fuel for the propulsion of road vehicles. Having emerged as a Superbrand. Nepal. Indane LPGas: IndianOil s Indane LPGas. It has an excellent safety record both in terms of its storage.300 SERVO shops and a nationwide network of bazaar traders. Bahrain. Mauritius. transportation and use. industrial and marine sectors and is approved by major Original Equipment Manufacturers (OEMs) including new generation cars. Presently. It is also fast making its mark in overseas markets such as the UAE. . hotels & restaurants. 3. Maruti. Kenya. Reunion Islands and others. new and improved 5 kg Indane LPGas cylinders are being introduced in rural and hilly regions to implement wider usage by the economically weaker sections. 2.countrywide network of SERVO SSLs and SSAs Bazaar traders. Yemen. Servo has genuine oil tie ups with a wide range of companies like Hyundai. Malaysia. Around 87 bottling plants are spread across the country with a combined bottling capacity of 3.350 Indane distributors.77 MMTPA. Kuwait. It is used daily in over 40 million homes as cooking fuel. SERVO enjoys a market share of 42% and is sold through over 8.100 IndianOil petrol/diesel stations.

with a 68% market share and a network of 95 Aviation Fuel Stations (AFS). IndianOil Aviation Service caters to over 90% demand of the Indian Defence Services as well as the sensitive requirements of WIP flights at all airports and at remote helipads across the Indian subcontinent.AutoGas has been introduced in Hyderabad. meets the fuel and lubricant needs of domestic and international airlines. Defence Services and private aircraft operators. Bangalore and Mumbai through a network of 48 stations out of an industry total of 103 Auto LPG Dispensing Stations. IndianOil Aviation Service serves over 71 International airlines. 4. IndianOil Aviation Service: IndianOil s Aviation Services. IndianOil Aviation service is ISO 9002 certified and is not only the largest aviation fuel marketer in the country but is also the most preferred supplier of jet fuel for customers in India and abroad. It not only maintains world-class standards in operations and safety but also conforms to the severe global quality requirements of Aviation fuel storage and handling. Premium Fuels-XtraPremium & XtraMile: . This alternative fuel is a good long term business proposition. and IndianOil intends to further expand its marketing in a big way. Besides the domestic airlines. 5.

it has the following features: o o o o Extra mileage leading to a Greater Acceleration Faster pick up.400 Retail Outlets nationwide. which enables the cashless purchase of fuel and lubes from designated retail outlets of IndianOil through flexible prepaid and credit facilities. XtraMile is the leader in its market segment. XtraPremium: India s first 91 octane petrol. resulting in lower Maintenance Costs Longer engine life. the premium fuels XtraPremium and XtraMile (originally IOC Oremium and Diesel Super respectively). mark a new beginning for IndianOil and offer the benefits of convenience and enhanced comfort to its customers. The fleet card program aimed at solving the needs of fleet . thus providing Enhanced Overall Performance Eliminates engine knockings 6. XtraPower: XtraPower is a Smart Card based Fleet Card Program. Offered at over 4.000 Retail Outlets all over the country and has the following attributes: o o o o o Super Mileage and Pick-up Enhances cleaning of engines Minimizes exhaust emissions Restores peak engine power and acceleration Reduces maintenance cost XtraMile: IndianOil s new generation High Speed Diesel with world-class additives. XtraPremium is reinforced with multifunctional additives including Friction Buster .Launched on September 24. 2002. It is available at over 2.

redemption of points not only for fuel/lubes but also for a wide range of consumer goods and novelties and Free Personal Accident Insurance Cover for fleet owners. XtraRewards: .iocxtrapower. Personal Accident Insurance Cover and Vehicle Tracking Facilities. Card Limits for better control. Each fleet owner is issued one Fleet Control Card and VehicleSpecific Fleet Cards for every vehicle enrolled under the program. has emerged as the largest fleet card program in the country. It has the widest Retail Outlet coverage with over 4. discounts on purchase through reward points. 100/-. Option for Real Time tracking of vehicles at subsidized cost.owners/operators offers many benefits which includes an exciting rewards Program. Co-drivers and Helpers. Drivers. Backed by IndianOil/s vast infrastructural network as well as service providers through its dedicated site www. The XtraPower Fleet Card Program is thus a solution to every Fleet Owner/Operator s Fleet management Problems. Web-bases allocation of funds on specific cards. Launched in March 2004. XtraPower. Corporate or Business Entity owning or operating commercial vehicles can sign up for membership of the XtraPower Fleet Card Program at an annual charge of Rs. XtraPower provides many facilities to its members through the numerous salient features such as Flexible Pre-paid and Credit options. 7. Attractive Reward program. Any Fleet Owner/Operator.800 Retail Outlets in its network and has locked in about 22% of the Fleet market share in the retail segment. having crossed the one million mark. Card-to-Card Fund Transfer. interest-free credit with an option for customers to choose from more than one credit partners.com.

IndianOil has launched this reward program with an aim to leverage technology in its retail business in order to provide maximum facilities and benefits to its customers and also to help the dealers plan and manage inventory.The country s first online loyalty card for cash customers. The card is backed by Tata Indicom s CDMA based PDSN technology which will act as the communication backbone with HDFC Bank providing Point of Sale Terminals (POST) at the designated IndianOil Retail Outlets. 1. These loyalty points can also be accrued by customers paying through credit and debit. These Flagship retail outlets are spread across the country and 45 out of the total 111 Swagat retail outlets have already been commissioned with fuel and non-fuel facilities.250 outlets of IndianOil and IBP will be automated by September at a cost of Rs. East-West corridors. Having been launched in 60 outlets all over Bangalore. These retail outlets have been designed to provide customers with fuel/lubes including XtraMile and XtraPremium as well as non-fuel facilities such as . XtraRewards is a loyalty program for urban vehicle owners through which the customers can add further value to their purchases by piling up loyalty points. 163 crore to be implemented by the middle of 2008. monitor activities of their fore-court and to maintain records for dealing with customer complaints and queries online. Swagat Highway Flagship Retail Outlets: The Swagat Retail Outlets have been launched by IndianOil to cater to the high growth areas of National Highways forming a part of the golden Quadrilateral and the NorthSouth.178 outlets at Rs. XtraRewards was launched in Bangalore on the 26th of March 2007. In the first phase. 8. this program will be unveiled later in Chennai followed by Hyderabad. 169 crore to be followed by 1.

density measurement sensors. XtraCare: IndianOil s XtraCare outlets are benchmarked against international standards of Q&Q. The Platinum Circle and Gold Circle are exclusive. 10. automatic bill printing facility. etc. The launch of XtraCare was a result of a series of plans in retail design. vehicle care etc. Kisan Sewa Kendras: . The non-fuel services are boosted in the IndiaOil XtraCare plan with a wide range of loyalty programs. back-office server with DU controls. product and service upgradation. fortnight sampling through Quality Audit Officers and training through a professional agency. customer database. more recently XtraRewards and co-branded cards like IndianOil-Citibank credit cards. loyalty programs and retail site management techniques. These retail outlets maintain high Q&Q standards through retail outlet site and tank truck automation. temperature sensors.XtraPower. housekeeping. XtraCare has the most state-of-the-art automation with cutting edge technology including automatic tank level gauges. automation. maintenance and customer service as certified by the global agency Bureau Veritas. parking. top of the line clubs for high selling retail outlet dealers and these dealers have emerged as peer leaders and are an integral part of the XtraCare dealer sensitization strategy.food/rest. IndianOil had recently introduced the Platinum Circle and Gold Circle as a precursor to the XtraCare launch. 9. healthcare. third party certification through Bureau Veritas. communication. capability training.

thus meeting the diverse needs of the rural population. Besides serving the farming community through wide-ranging products.IndianOil launched Kisan Sewa Kendras for the rural markets as a new growth area in retail business. vegetables. services and facilities. this initiative is also expected to create employment avenues in rural India. thereby providing attractive returns to the operators. which is fast emerging as one of the largest consumer bases. pesticides. fertilizers and agro inputs like seeds. These outlets offer a variety of products and services besides autofuels and kerosene. stationery and other items. . farming equipment. The Kendras mainly market petroleum fuels. SERVO lubricants.

Bongaigaon Refinery and Petrochemicals Limited (BRPL) 6. IndianOil s vast experience in downstream petroleum operations in India creates a healthy and competitive petroleum industry in Sri Lanka which largely benefits the island nation. 3. Lanka IOC. IndianOil (Mauritius) Limited. is the only private oil company other than the state owned Ceylon Petroleum Corporation (CPC) that operates retail petrol/diesel stations within Sri Lanka. IndianOil entered into Sri Lanka with a view to accomplish its objective of becoming a transnational energy major. Chennai Petroleum Corporation Limited (CPCL) 5. Thus it not only provides energy security and supply stability to Sri Lanka but also upgrades the overall standards of service. building and operating storage facilities at the Trincomalee Tank farm. Limited (IBP) 4. Lanka IOC Limited has been incorporated mainly to carry out retail marketing of petroleum products. . IBP Co.GROUP OF COMPANIES The IndianOil Group of Companies comprises of: 1. bulk supply to industrial consumers. particularly in the retail sector of the nation. Lanka IOC Limited (LIOC): IndianOil s subsidiary in Sri Lanka. IndianOil Technologies Limited 1. Lanka IOC Limited (LIOC) 2. etc.

24-hour ATMs. In order to provide world class quality petroleum products and services at the most competitive prices to the Sri Lankan customers. IndianOil (Mauritius) Limited. separate import lines for Motor Gasoline (petrol). . etc. This microprocessor-controlled facility with automated product level monitoring. the company occupies the NO.500 metric tonnes has already been commissioned at Mer Rouge to serve as the supply base of petroleum products. IndianOil is investing US$ 36 million to set up a range of marketing infrastructure in Mauritius through its wholly owned subsidiary IndianOil Mauritius Ltd. automatic carwash. the company is also making available non-fuel facilities like convenience stores.Having a market share of 22% and operating over 160 outlets. Its oil terminal at Trincomalee is Sri Lanka s largest petroleum storage facility. truck loading and computerized access control is the first-of-its-kind in Mauritius. food marts. 2. Through its retail chain. A stateof-the-art petroleum storage terminal with a capacity of 15. The retail outlets are being refurbished with state-of-the-art facilities and services at par with international standards. (IOML). Gas Oil (Diesel). 2 position among the top 50 listed companies operating in Sri Lanka. Jet Fuel (Aviation Fuel) and Fuel Oil have also been laid. IOML has also strengthened the bunkering facilities with new lines to various quays in the port. These revamped stations of Lanka IOC have earned praises for the company from all sections of the Sri Lankan society. As part of this project. Lanka IOC is making periodic investments to the tune of about INR 450 crore. which is fast emerging as the region s busiest port.

hydrant lines and aircraft fuelling facilities in Mauritius.8% in petrol and 6.4% in diesel as compared to same period last year. Explosives and Cryogenics. a subsidiary of IndianOil.IOML has undertaken means to set up a network of 25 world class petrol stations in Mauritius in order to provide the Mauritian customers with auto fuels and lubricants of international quality. . 3. These outlets will be equipped with a range of value-added services including both fuel and non-fuel facilities.018 KL of diesel which resulted in a sales growth of 2. Limited. is a stand-alone petroleum marketing company with exclusive Business Groups for Petroleum. Limited (IBP): IBP Co. The revenue from the Business Group (Petroleum) witnessed an increase of 16% during the fiscal year 2005-06. a modern producttesting laboratory is also being set up in Mauritius. IBP Co. Besides the expansion of the retail network.559 KL of petrol and 2. IOML has also joined a consortium of four existing oil companies to operate aviation fuel storage.959. IndianOil (Mauritius) Ltd. which has attained a 14% market share includes aviation fuelling and bunkering business. It now occupies the 25th place among the top 100 companies in Mauritius in less than 30 months after commencement of operations there. During the period April Dec 2006 the company achieved a sales volume of 798. IBP s marketing efforts are fully focused on improving its sales of petrol and diesel. The consortium will soon build a new Aviation Fuel Terminal at Sir Seewoosagar Ramgoolam International Airport.

4. As part of synergy with the parent company IndianOil. with a capacity of 9. Lube. Wax and Petrochemical feedstock production facilities. viz. The Manali Refinery. Independent agencies are appointed to collect samples from these retail outlets in order to test them on a monthly basis so as to guarantee that products available to customers meet the specified standards. IBP is constantly striving to keep up with industry standards by implementing third party audits by reputed agencies.A pioneer in introducing quality and quantity assurance of all products and services at its retail outlets. This program is designed to help transporters in efficient management of their fleets besides rewarding them for their loyalty to the Company. Chennai Petroleum Corporation Limited (CPCL): A subsidiary of IndianOil. CPCL s second refinery is located at Cauvery Basin at Nagapattinam with a capacity of 1. The branding activities are further reinforced through an initiative called Project Horizon in which IBP s 422 select top of the line high-volume outlets are specially branded with an upgraded retail visual identity. ..0 MMTPA.5 Million Tonnes Per Annum (MMTPA). Chennai Petroleum Corporation Limited has two refineries with a combined capacity of 10.5 MMTPA is one of the most complex refineries in India with Fuel. XTRAPREMIUM petrol and XTRAMILE diesel at select retail outlets of the Company. IBP has also introduced Indian Oil s XtraCare Fleet Card Program in its network. the Company has begun marketing branded fuels.

Propylene Recovery Project. Kolkata. Motor Spirit. Fuel Oil.4 MMT. Windmill Power Project. The turnover for the year 2005-06 was the highest-ever at Rs. Mumbai and Delhi.35 million tonnes per annum of crude oil.5 MGD Capacity Sewage Reclamation Plant and a 5. Lube Base Stocks. Naphtha. The company has its Regional/Marketing offices at Guwahati. The Company has a Refinery with a rated capacity of 2. Resid Upgradation Project.8 MGD Desalination Project. Superior Kerosene. High Speed Diesel.2 MMT. The turnover was higher mainly due to increase in crude throughput and higher prices for the products based on import-parity.270 Crore in the previous year registering an increase of about 56%. 5. During the year. The core activities of BRPL are refining of crude oil and production of petroleum products.68 MMT and Cauvery Basin Refinery (CBR) processed 0. CPCL s MoU target for 2006-07 has been set at 10. Aviation Turbine Fuel.68 MMT. Bongaigaon Refinery and Petrochemicals Limited (BRPL): Bongaigaon Refinery and Petrochemicals Limited (BRPL) has its registered office and production units at Dhaligaon in the Bongaigaon District (now under recently constituted Chirang District) of Assam. Bitumen. Additional 2.The main products of the company are LPG. CPCL has commissioned many new facilities including a Zero Discharge Plant.25. Paraffin Wax. The crude processing was 16% higher than the previous year crude throughput of 8. the Manali Refinery processed 9.36 Million Metric Tonnes (MMT) against the Memorandum of Understanding (MoU) target of 10. The new project and initiatives being implemented are Crude Oil Pipeline Project. The Company is also engaged in the production and marketing of value-added petrochemical and PSF products. a petrochemicals complex comprising of a .92 MMT. Hexane and Petrochemical feed stocks. Quality upgradation Projects to meet Euro-IV Products and Refinery Capacity augmentation at Manali.16.409 Crore as against Rs. The crude throughput for the year 2005-06 was highest-ever at 10.

6. catalysis. The company imparts training in the areas of FCC. The petroleum products (except RPC & CPC) are marketed by Indian Oil Corporation Ltd. Naphtha. has developed several technologies and technical expertise both in refining and the lubricant sector. This centre. lube processing. established through wide market acceptance. Petrochemicals and PSF products through its own marketing network. SKO. RPC & CPC. process optimization. Hydroprocessing. LVFO. The Petrochemicals units consume Naphtha as its major raw material. crude oil evaluation. Unleaded MS. The Refinery. IndianOil Technologies Limited (ITL) is the technology-marketing arm for the entire range of technologies developed at IndianOil s R&D Centre at Faridabad. LDO. residue upgradation. CPC. The major products from the refinery are LPG. ITL also markets the R&D developed lubricants technology. LSHS. hydro processing. HSD. The R&D activities in refining technology are targeted in the areas of fluid catalytic cracking (FCC). which is supplied from the Refinery itself. simulation and modeling. Commercial production of the refinery started in 1979 and other plants were commissioned in stages. which was set up over three decades ago. The major products of the Petrochemicals and PSF units are DMT and PSF. a Dimethyl Terephthalate (DMT) plant and a Polyester Staple Fibre (PSF) plant. ITL also offers state-of-the-art sludge disposal technology based on biotechnology which is widely accepted in the hydrocarbon sector. . ATF. remaining life assessment and other technical services.Xylene plant. which possesses USPs. is presently processing crude from Ravva Oil Fields of Krishna Godavari Basin also. distillation. IndianOil Technologies Limited (ITL): A wholly owned subsidiary of IndianOil. material failure analysis. BRPL markets RPC. (IOCL). which normally processes crude oil available in Assam.

90 96453. As a result. In the recent past ITL carried out such trainings in Kuwait.00 639168.70 100. Analytical techniques.60 220018.70 55954. Iran etc.22 18.00 145263.16 9. Simulation and Modeling. products.60 %BT 56.01 11.40 233037.42 8.80 58329.20 121088. covering the basics.Catalytic Reforming.53 8.80 39731. Crude Assay.10 100.26 7.94 859013.44 12.90 66994. This approach has worked well as the hydrocarbon sector is both technology and knowledge intensive.79 31Mar05 Rs mn 397824.00 .00 696980.71 29.10 52865.80 242777.80 6.20 87339.40 %BT 57.20 195048. Lubricants & grease etc.10 57049. Material Failure Analysis. IndianOil has adopted the approach of nurturing human talent as a means to nurturing technology. Bio-remediation.20 56898.91 28.39 6. FINANCIAL ANALYIS OF INDIANOIL BALANCE SHEET As on Assets Gross Block Net Block Capital WIP Investments Inventory Receivables Other Current Assets Balance Sheet Total(BT) 31Mar06 Rs mn 435588.27 8.86 34. Remaining Life Assessment.80 100.10 249193.08 33. the Corporation is now in a position to offer a bouquet of technologies.19 27.23 16.70 31Mar04 Rs mn 363413. plant trouble shooting and technical solutions.98 8.75 23. processes and solutions that are aimed at improving performance and profitability.70 %BT 50.30 149510. Delayed coking.70 67608.

05 12.00 696980.20 128307.05 19.94 247061.85 16.70 100.903 Debt equity ratio is the related contribution of creditors and owners of the business in its financing.89 208399. A large part of the firm s current assets are tied up in slow paying debts.10 %BT 1.56 30.20 35.10 %BT 1.83 279731.00 RATIO ANALYSIS y CURRENT RATIO = 1.224 The current ratio being 1.10 100. current assets of 1.14 217613.90 173199. .60 34.20 20.10 121776.40 32.224 are available to meet them.47 175257.60 859013.45 24.10 %BT 1.40 152560.10 79699.36 Rs mn 11680.224 implies that for every one rupee of current liabilities.903 of equity and debt of the company is being used to finance its assets.30 112479. This ratio thus signifies that a portion of 0.68 Rs mn 11680.74 14. y DEBT EQUITY RATIO = 0.80 100.26 The quick ratio is a measure of the firm s ability to service short term liabilities. Balance Sheet Total(BT) Rs mn 11680. y QUICK RATIO = 0.30 21.80 32.00 639168.Liabilities Equity Share Capital Reserves Total Debt Creditors and Acceptances Other current liab/prov.20 264037.

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