OIL AND GAS SECTOR ANALYSIS

Bargaining Power of Buyers

The bargaining power of buyers in India's oil and gas sector is moderate. Major buyers include IOCL,
HPCL and BPCL who control majority of refining and distribution. But high demand and lack of
substitutes limit their bargaining power. Industrial consumers have some leverage to negotiate
prices. But overall, buyer power is constrained by high demand.

Bargaining Power of Suppliers

Supplier power is moderate in India. ONGC and Oil India are major upstream suppliers and have
significant oil reserves under their control. But gas production depends on JVs with international
firms like ExxonMobil. Suppliers negotiate firmly especially when demand is high during price spikes.
But competition between state firms and private ones like Reliance reduces bargaining power.

Rivalry Among Existing Competitors

Competitive rivalry is intensifying in India's oil and gas sector. Major incumbents include state-owned
firms like ONGC, IOCL, BPCL who dominate upstream and downstream. But private firms like Reliance
Industries are expanding, leading to rising competition especially in gas and retail. International oil
majors also competing for assets.

Threat of Substitute Products

Threat of substitutes is low currently but set to rise. Gas faces substitution from renewable energy.
But oil and gas remain integral to transport and industry. Coal also competes in power. But high
infrastructure needs limit rapid substitution. However, governmment's renewable push will increase
threat
Threat of New Entrants

Threat of new entrants is low. High capital needs and dominant state-owned incumbents make entry
difficult. FDI restrictions also deter foreign players. But progressive reforms are easing entry for
private firms including Adani, Vedanta and foreign majors. So threat is increasing but still low.

Overall, India's oil and gas outlook is moderate. Competition is increasing from private firms. But
state dominance, high demand and limitations on substitutes sustain sector attractiveness. More
reforms could improve prospects.