Chapter- 1 Industry Profile

Indian Oil owes its origins to the Indian government's conflicts with foreign-owned oil companies in the period immediately following India's independence in 1947. The leaders of the newly independent state found that much of the country's oil industry was effectively in the hands of a private monopoly led by a combination of British-owned oil companies Burmah and Shell and U.S. companies Standard-Vacuum and Caltex. An indigenous Indian industry barely existed. During the 1930s, a small number of Indian oil traders had managed to trade outside the international cartel. They imported motor spirit, diesel, and kerosene, mainly from the Soviet Union, at less than world market prices. Supplies were irregular, and they lacked marketing networks that could effectively compete with the multinationals. Burmah-Shell entered into price wars against these independents, causing protests in the national press, which demanded government-set minimum and maximum prices for kerosene--a basic cooking and lighting requirement for India's people and motor spirit. No action was taken, but some of the independents managed to survive until World War II, when they were taken over by the colonial government for wartime purposes. During the war, the supply of petroleum products in India was regulated by a committee in London. Within India, a committee under the chairmanship of the general manager of Burmah-Shell and composed of oil company representatives pooled the supply and worked out a set price. Prices were regulated by the government, and the government coordinated the supply of oil in accordance with defense policy. Wartime rationing lasted until 1950, and a shortage of oil products continued until well after independence. The government's 1948 Industrial Policy Resolution declared the oil industry to be an area of the economy that should be reserved for state ownership and control, stipulating that all new units should be government-owned unless specifically authorized. India remained effectively tied to a colonial supply system, however. In 1949, India asked the oil companies of Britain and the United States to offer advice on a refinery project to make the country more self-sufficient in oil. The joint technical committee advised against the project and said it could only be run at a considerable loss. The oil companies were prepared to consider building two refineries, but only if these refineries were allowed to sell products at a price ten percent above world parity price. The government refused, but within two years an event in the Persian Gulf caused the companies to change their minds and build the refineries. The companies had lost their huge refinery at Abadan in Iran to Prime Minister Mussadegh's nationalization decree and were unable to supply India's petroleum needs from a sterling-area country. With the severe foreign exchange problems created, the foreign companies feared new Iranian competition within India. Even more important, the government began to discuss setting up a refinery by itself. Between 1954 and 1957, two refineries were built by Burmah-Shell and Standard-Vacuum at Bombay, and another was built at Vizagapatnam by Caltex. During the same period the companies found themselves in increasing conflict with the government.

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The government came into disagreement with Burmah Oil over the Nahorkatiya oil field shortly after its discovery in 1953. It refused Burmah the right to refine or market this oil and insisted on joint ownership in crude production. Burmah then temporarily suspended all exploration activities in India. Shortly afterward, the government accused the companies of charging excessive prices for importing oil. The companies also refused to refine Soviet oil that the government had secured on very favorable terms. The government was impatient with the companies' reluctance to expand refining capacity or train sufficient Indian personnel. In 1958, the government formed its own refinery company, Indian Refineries Ltd. With Soviet and Romanian assistance, the company was able to build its own refineries at Noonmati, Barauni, and Koyali. Foreign companies were told that they would not be allowed to build any new refineries unless they agreed to a majority shareholding by the Indian government. In 1959, The Indian Oil Company was founded as a statutory body. At first, its objective was to supply oil products to Indian state enterprise. Then it was made responsible for the sale of the products of state refineries. After a 1961 price war with the foreign companies, it emerged as the nation's major marketing body for the export and import of oil and gas.

Project Report on Profile Of IOCL


Chapter- 2 Introduction to the IOCL
2.1 History
A Giant Is Born
Indian Oil was born of the vision of Pandit Jawaharlal Nehru, the first Prime Minister of India, to pursue a policy of self-sufficiency in the petroleum sector as a strategic requirement of a free nation. As part of Panditji’s thrust on oil exploration, refining and marketing operations, Indian Refineries Ltd. was established in August 1958 under 100% Government ownership to erect refineries and lays petroleum pipelines. To take care of marketing of petroleum products across the country, Indian Oil Company Ltd., another 100% Government-owned Company, was formed on 30th June 1959. It was entrusted with the task of reaching petroleum products to every nook and corner of the nation, overcoming severe constraints in terms of logistics, terrain and wide seasonal and regional fluctuations in demand.

The marketing activities of Indian Oil Company began on 17th August 1960 with the receipt of the first parcel of 11,390 tones of imported diesel of Russian origin from MV Uzhgorod docked at Pir Pau Jetty in Mumbai. The Indian petroleum market at that time was ruled by goliaths like Burmah Shell, Esso Eastern Inc., Caltex (India) Ltd., Indo-Burmah Petroleum Co. Ltd and Assam Oil Company Ltd. Indian Oil Company’s first and foremost challenge was to assert itself in the face of stiff competition from these well-entrenched transnational oil companies operating in India. In its first year of marketing (1960-61), the Company’s volume sales was a meager 0.038 million tones (approximately 5% of industry sale) worth Rs. 0.8 crore. The first activity that Indian Refineries Ltd. undertook was the construction of a refinery at Noonmati near Guwahati in Assam with Rumanian help. The refinery was inaugurated by Pandit Jawaharlal Nehru himself in 1962, and processed Upper Assam crude oil received through an Oil India Ltd. (OIL) pipeline from Nahorkatiya. For product evacuation, the 435km Guwahati-Siliguri pipeline and the Siliguri terminal were built and commissioned in 1964. Soon after, it was decided to set up two more refineries, one each at Barauni and Koyali for processing newly-discovered crude oil at Assam and Gujarat respectively. The

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Barauni Refinery was built with Russian collaboration and went on stream in July 1964. The Koyali Refinery was also set up with technical assistance of Soviet Russia. Indian Oil acquired control of the refinery from Oil & Natural Gas Commission on 1st April 1965 and commissioned it in October the same year after formal inauguration by the then President of India, Dr. S Radhakrishnan. Meanwhile, on 1st September 1964, Indian Refineries Ltd. was merged in Indian Oil Company to form a vertically integrated entity straddling both refining and marketing functions, and Indian Oil Company was renamed as Indian Oil Corporation Ltd. (Indian Oil). While announcing the historic merger, Prof. Humayun Kabir, the then Union Minister of Petroleum & Chemicals, hoped that Indian Oil would soon handle at least half of the trade in petroleum products. He was proved right within five years. By 1969, the Corporation was handling more than 50% of the total petroleum consumption of the nation and reached 64.2% market participation by the year 1974 During this same decade, India found that rapid industrialization meant a large fuel bill, which was a steady drain on foreign exchange. To meet the crisis, the government prohibited imported petroleum and petroleum product imports by private companies. In effect, Indian Oil was given a monopoly on oil imports. A policy of state control was reinforced by India's closer economic and political links with the Soviet Union and its isolation from the mainstream of western multinational capitalism. Although India identified its international political stance as non-aligned, the government became increasingly friendly with the Soviet Bloc, because the United States and China were seen as too closely linked to India's major rival, Pakistan. India and the USSR entered into a number of trade deals. One of the most important of these trade pacts allowed Indian Oil to import oil from the USSR and Romania at prices lower than those prevailing in world markets and to pay in local currency, rather than dollars or other convertible currencies. For a time, no more foreign refineries were allowed. By the mid-1960s, government policy was modified to allow expansions of foreign-owned refinery capacity. The Indian Oil Corporation worked out barter agreements with major oil companies in order to facilitate distribution of refinery products. The government decided to nationalize the country's remaining refineries. The Burmah-Shell refinery at Bombay and the Caltex refinery at Vizagapatnam were taken over in 1976. The Burmah-Shell refinery became the main asset of a new state company; Bharat Petroleum Ltd. Caltex Oil Refining (India) Ltd. was amalgamated with another state company, Hindustan Petroleum Corporation Ltd., in March 1978. Hindustan had become fully Indian-owned on October 1, 1976, when Esso's 26 percent share was bought out. On October 14, 1981, Burmah Oil's remaining interests in the Assam Oil Company were nationalized, and Indian Oil took over its refining and marketing activities. Half of India's 12 refineries belonged to Indian Oil. The other half belonged to other state-owned companies. By the end of the 1980s, India's oil consumption continued to grow at eight percent per year, and Indian Oil expanded its capacity to about 150 million barrels of crude per annum. In 1989, Indian Oil announced plans to build a new refinery at Pradip and modernize the Digboi

Project Report on Profile Of IOCL


refinery, India's oldest. However, the government's Public Investment Board refused to approve a 120,000 barrels-per-day refinery at Daitari in Orissa because it feared future overcapacity. By the early 1990s, Indian Oil refined, produced, and transported petroleum products throughout India. Indian Oil produced crude oil, base oil, formula products, lubricants, greases, and other petroleum products. It was organized into three divisions. The refineries and pipelines division had six refineries, located at Guwahati, Barauni, Gujarat, Haldia, Mathura, and Digboi. Together, the six represented 45 percent of the country's refining capacity. The division also laid and managed oil pipelines. The marketing division was responsible for storage and distribution and controlled about 60 percent of the total oil industry sales. The Assam Oil division controlled the marketing and distribution activities of the formerly British-owned company. Indian Oil also established its own research center at Faridabad near New Delhi for testing lubricants and other petroleum products. It developed lubricants under the brand names Servo and Servo prime. The center also designed fuel-efficient equipment. The oil industry in India changed dramatically throughout the 1990s and into the new millennium. Reform in the downstream hydrocarbon sector--the sector in which Indian Oil was the market leader--began as early in 1991 and continued throughout the decade. In 1997, the government announced that the Administered Pricing Mechanism (APM) would be dismantled by 2002. To prepare for the increased competition that deregulation would bring, Indian Oil added a seventh refinery to its holdings in 1998 when the Panipat facility was commissioned. The company also looked to strengthen its industry position by forming joint ventures. In 1993, the firm teamed up with Balmer Lawrie & Co. and NYCO SA of France to create Avi-Oil India Ltd., a manufacturer of oil products used by defense and civil aviation firms. One year later, Indo Mobil Ltd. was formed in a 50-50 joint venture with Exxon Mobil. The new company imported and blended Mobil brand lubricants for marketing in India, Nepal, and Bhutan. In addition, Indian Oil was involved in the formation of ten major ventures from 1996 through 2000. Indian Oil also entered the public arena as the government divested nearly 10 percent of the company. In 2000, Indian Oil and ONGC traded a 10 percent equity stake in each other in a strategic alliance that would better position the two after the APM dismantling, which was scheduled for 2002. According to a 1999 Hindu article, Indian Oil Corporation's strategy at this time was "to become a diversified, integrated global energy corporation." The article went on to claim that "while maintaining its leadership in oil refining, marketing and pipeline transportation, it aims for higher growth through integration and diversification. For this, it is harnessing new business opportunities in petrochemicals, power, lube marketing, exploration and production ... and fuel management in this country and abroad." In early 2002, Indian Oil acquired IBP, a state-owned petroleum marketing company. The firm also purchased a 26 percent stake in financially troubled Haldia Petrochemicals Ltd. In April of that year, Indian Oil's monopoly over crude imports ended as deregulation of the Project Report on Profile Of IOCL 5

From a small beginning with a sale of 0. Indian Oil operates the largest and the widest network of petrol & diesel stations in the country.000 sales points.100 bulk consumer pumps are also in operation for the convenience of large consumers.600. in 1965. Nevertheless. Indian Oil is investing Rs. From then on. As a result. Project Report on Profile Of IOCL 6 . ensuring products and inventory at their doorstep. numbering over 17. Indian Oil reaches precious petroleum products to millions of people everyday through a countrywide network of about 34. and industrial. The Corporation also enjoys a dominant share of the bulk consumer business. Indian Oil believed it was well positioned for future growth and prosperity. During the first 45 days of deregulation. Indian Oil management believed that the deregulation would bring lucrative opportunities to the company and would eventually allow it to become one of the top 100 companies on the Fortune 500--in 2001 the company was ranked 209. Indian Oil achieved sales of 10 million kilolitres with a turnover of Rs. the Indian Oil group sold 59. 43. They are backed for supplies by 166 bulk storage terminals and depots. the company has grown from strength to strength and for the fiscal 2007. the company faced increased competition from large international firms as well as new domestic entrants to the market. including 1.5 crore by the late 60's.petroleum industry went into effect. private airlines and the Indian Defense Services.2 Network beyond Compare As the flagship national oil company in the downstream sector. and exported 3. 22.000 Indane distributors Indian Oil's ISO-9002 certified Aviation Service commands over 62% market share in aviation fuel business. state transport undertakings. 101 aviation fuel stations and 89 Indane (LPG’s) bottling plants. a signal that the India's largest oil refiner would indeed face challenges as a result of the changes. About 7. Indian Oil commissioned India's first product pipeline.393 crore (US $10.74 million tones of natural gas.25 billion. expansion of marketing infrastructure and product quality up gradation as well as in integration and diversification projects 2.Siliguri pipeline. Indian Oil lost Rs7. agricultural and marine sectors. With demand for petroleum products in India projected to grow from 148 million metric tons in 2006 to 368 million metric tons by 2025.700 markets through a network of about 5.33 million tones of petroleum products.8 billion) during the period 2007-12 in augmentation of refining and pipeline capacities.29 million tones of petroleum products. 635 crore* and profit Rs.032 million kilolitres. This 435-Km pipeline connecting Guwahati Refinery to different installations was designed to carry about 0. including that of railways. meeting the fuel needs of domestic and international flag carriers. It reaches Indane cooking gas to the doorsteps of over 50 million households in nearly 2. the Guwahati .818 MMT of oil per year.

besides auto fuels and kerosene.2. The Corporation’s objectives in this key performance area are enshrined in its Mission statement: "…to help enrich the quality of life of the community and preserve ecological balance and heritage through a strong environment conscience. which provides for attractive scholarships to bright students selected on 'merit-cummeans' basis. offering a variety of products and services such as seeds. medicines.3 Customer First At Indian Oil. SERVOXpress has been launched recently as a one-stop shop for auto care services. spare parts for trucks and tractors. while at the same time ensuring the highest standards of safety and environment protection in its operations. The Corporation respects human rights. 2. spare parts shop. and students from J & K as well as the Northeast States. New initiatives are launched round-theyear for the convenience of the various customer segments.4 Initiatives by Indian Oil At Indian Oil. As part of Indian Oil's social responsibility programme. and invests in innovative technologies and solutions for sustainable energy flow and economic growth. farm equipment. In the past four decades. tractor engine oils and pump set oils. Besides focusing primarily on the welfare of economically and socially deprived sections of society. Large format Swagat brand outlets cater to highway motorists. first aid. special encouragement is being given to girl students. To safeguard the interest of the valuable customers. As part of the scheme. Specially formatted Kisan Seva Kendra outlets meet the diverse needs of the rural populace. values its employees. Indian Oil also aims at developing techno-economically viable and environmentfriendly products & services for the benefit of millions of its consumers. Indian Oil has been taking concrete action to realize its social responsibility objectives. Indian Oil has always been in the forefront in times of national emergencies. interventions like retail automation. rest rooms and dormitories. Touching the lives of millions of people positively by supporting environmental and health-care projects and social." As a constructive partner in the communities in which it operates. pesticides. etc. Indian Oil People have time and again rallied to help victims of natural calamities. cultural and educational programmes. maintaining Project Report on Profile Of IOCL 7 . Exclusive XTRACARE petrol & diesel stations unveiled in select urban and semi-urban markets offer a range of value-added services to enhance customer delight and loyalty. fertilizers. Indian Oil has supported innumerable social and community initiatives in India. thereby building value for its shareholders and customers. corporate social responsibility (CSR) has been the cornerstone of success right from inception in the year 1964. with multiple facilities such as food courts. vehicle tracking and marker systems have been introduced to ensure quality and quantity of petroleum products. customers always get the first priority. physically challenged students. there is an Indian Oil Scholarship scheme.

on 1st September 1964 following the merger of Indian Refineries Ltd. Established as an oil marketing entity on 30th June 1959. 101 Project Report on Profile Of IOCL 8 .000 sales points. Indian Oil is also committed to the Global Compact Programme of the United Nations and endeavors to abide by the 10 principles of the programme. Indian Oil is committed to conducting business with a strong environment conscience. 45. Indian Oil has invested close to Rs. The integrated refining & marketing entity has since grown into the country’s largest commercial enterprise and India’s No. Indian Oil has also set up the Indian Oil Foundation (IOF) as a non-profit trust to protect.337 crore. touch every heart and fuel a billion dreams. They are backed for supplies by 167 bulk storage terminals and depots. reaching precious petroleum products to millions of people everyday through a countrywide network of around 35. 2. Indian Oil Corporation Ltd. 2.38 million tones valued at Rs. health and environment protection high on its corporate agenda.18 crore and sales of 1. preserve and promote national heritage monuments.1 Company in the prestigious Fortune ‘Global 500’ listing of the world’s largest corporates. was renamed Indian Oil Corporation Ltd. 78 crore in the year 1965. Indian Oil today accounts for nearly half of India’s petroleum consumption. 285. As part of its environment-protection initiatives. (Indian Oil) is celebrating its Golden Jubilee during 30th June . customers and the community.5 “50 Golden Years in the Service of the Nation” India’s flagship national oil company and downstream petroleum major.1 Indian Oil Today From a fledgling company with a net worth of just Rs.5.000 crore in state-of-the-art technologies at its refineries for production of green fuels meeting global standards. Indian Oil has since grown over 3000 times with a sales turnover of Rs. so as to ensure sustainable development.950 crore for 2008-09. 7. safe work places and enrichment of the quality of life of its employees. 2. Indian Oil Company Ltd. It is also the 18th largest petroleum company in the world.1st September 2009. (established in August 1958) with it. the highest–ever for an Indian company. It is the firm resolves of Indian Oil people to move beyond business. currently at the 116th position. Set up with the mandate of achieving self-sufficiency in refining and marketing operations for a nascent nation set on the path of economic growth and prosperity. and a net profit of Rs.uninterrupted supply of petroleum products and contributing to relief and rehabilitation measures in cash and kind. With safety. some of which are already part of the Corporation’s Vision and Mission statements.

including polymers.000 km more by the year 2012. This was proved beyond doubt during the 1965 war. Indian Oil's R&D Centre has blossomed into a world-class institution and Asia's finest.7 million tones of natural gas. maintenance and consultancy services. Another opportunity to show its mettle in times of national emergencies came Indian Oil’s way during the1971 war. the Corporation crossed 10. Indian Oil has been genetically coded to serve the Defense services. refinery processes. Indian Oil sold 62. pipeline transportation and alternative fuels such as ethanol-blended petrol and bio-diesel. during the war for liberation of Bangladesh. Projects under execution will take the capacity further to 80 MMTPA by the year 2011-12. It has over 214 active patents to its credit. In-house capabilities have enabled the Corporation undertake all pipeline projects on its own and even offer turnkey expertise in techno-economic feasibility studies.000 km in pipeline length and about 70 MMTPA in throughput capacity with the commissioning of the 330-km Paradip-Haldia crude oil pipeline recently. disabled Defense personnel. and continues to honor this tradition even now. including high-sulphur types. Besides its pioneering work in lubricants formulation. operations. In fact. Indian Oil even arranged for crude oil supplies to the Chittagong Refinery. At the time of Operation Vijay at Kargil in 1999. the Centre is also the nodal agency of the Indian hydrocarbon sector for ushering in Hydrogen fuel into the country. Indian Oil’s entry into the aviation fuelling business too began with the Defense Services in October 1964 and then to civil aviation a year later.. and alternative energy sources. in March 1972. After the war. in November 1965. For the year 2008-09. In fact. 2. Indian Oil maintained petroleum supplies in the war zone and stood by the families of the war heroes later. including 113 international patents. the Srinagar depot was one of the first bulk storage facilities set up by the Corporation. Indian Oil has undertaken chartering of ships for crude oil imports on its own and is expanding its basket of crudes and upgrading its refineries to handle a wider array of crudes. Plans are under execution to add about 4. despite shelling of its depots at Leh and Kargil. accounting for 34% of national refining capacity. the Corporation for the first time extended reservation in award of retail outlet dealerships to war widows. including 1. Besides setting up state-of-the-art facilities to raise product quality to global standards. freedom fighters.5. after excluding EOU refineries. Set up in 1972. when Indian Oil People maintained the vital supply of petroleum products to the armed forces with grit and determination. The Indian Oil Group of companies owns and operates 10 of India’s 20 refineries with a combined capacity of over 60 MMTPA. Its current R&D focus is on the future business needs of Indian Oil in the areas of petrochemicals. design and detailed engineering.aviation fuel stations and 89 Indane LPG bottling plants. in 1963.6 million tones of petroleum products. As a pioneer in lying of cross-country crude oil and product pipelines. etc.2 Battle Spurs As a veteran IOCian put it once. Project Report on Profile Of IOCL 9 . project execution.

pesticides.Having proved its mettle in the 1965 war. About 600 such Kendra are being added to the Corporation’s marketing network every year. Indian Oil has been chosen as the ‘Most Admired Retailer of the Year’ in the category of Rural Retailing at the India Retail Forum during 2008. fertilizers.550 specially formatted Kisan Seva Kendra outlets set up across the country meet the diverse needs of the rural populace. with multiple facilities such as food courts.3 Marketing Innovations Having set up Its first petrol & diesel station (retail outlet) at Kochi in October 1962. Over the years. etc. 278 with focus on customer convenience. New generation branded transportation fuels with multifunctional additives are now available in major markets. first aid. including that of railways. laying pipelines. agricultural and marine sectors. and industrial. tractor engine oils and pump set oils. Project Report on Profile Of IOCL 10 . for commissioning by the year 2012. customer-focused specialty products and customer rewards programmes. besides auto fuels and kerosene. The Haldia Refinery was set up in 1975. meeting the fuel needs of domestic and international flag carriers. marine bunkering. Indian Oil also enjoys a dominant share of the bulk consumer business. exclusive XTRACARE outlets unveiled in select urban and semi-urban markets offer a range of value-added services to enhance customer delight and loyalty. vehicle tracking and marker systems have been introduced to ensure quality and quantity of petroleum products. Indian Oil plunged into frenetic activity with newfound confidence – setting up refineries. Mathura Refinery in 1982 and Panipat Refinery in 1998. farm equipment. These MPDCs served as one-stop convenience shops. As on date. 2. As part of customer segmentation. interventions like retail automation. and appointing dealers and distributors across the country. spare parts for trucks and tractors. Initiatives for cashless transactions for customer convenience through co-brand credit cards and fleet cards have met with great success. spare parts shops. SERVOXpress has been launched recently as a one-stop shop for autocare services. state transport undertakings. rest rooms and dormitories. Large format outlets on highways cater to the needs of motorists. offering a variety of products and services such as seeds. building storage terminals and aviation fuel stations. medicines. over 2. and were the harbingers of the modern Kisan Seva Kendra (KSK) successfully introduced by Indian Oil in 2006. Indian Oil currently operates the country’s largest network of retail outlets numbering over 18. The Corporation is setting up another grassroots refinery at Paradip in Orissa. entering new businesses like bitumen. private airlines and the Indian Defense Services. especially for farmers.5. To safeguard the interest of the valuable customers. It was the first oil marketing company to introduce the concept of Multipurpose Distribution Centers (MPDCs) at its retail outlets located in rural areas way back in 1975. Its ISO9002 certified Aviation Service commands over 63% market share in aviation fuel business. Indian Oil has also launched several branded products.

and diversification into natural gas marketing. Encouraged by customer response and to ensure dedicated service.3.000 crore (US$ 7.63. In petrochemicals. Indian Oil has bagged eight oil & gas blocks and two Coal Bed Methane blocks under NELP (New Exploration Licensing Policy) rounds in India. – a special purpose vehicle for acquisition of overseas E&P assets – in Port Louis.. Indane cooking gas today reaches the doorsteps of over 53 million households in nearly 2. Mauritius. an onland block in Nigeria and two onshore blocks in Yemen.000 Indane distributors. New Businesses In pursuit of its Corporate Vision and to achieve the next level of growth. Through the world’s largest single-train Linear Alkyl Benzene (LAB) plant with an annual capacity of 1. Indian Oil has incorporated Ind-OIL Overseas Ltd. like mounded storage and 19-kg cylinders for bulk customers. 30.4 Kitchen Revolution Indane was the first branded product from Indian Oil to hit the market. in consortium with OIL. A technology innovation has been initiated to reach LNG (Liquefied Natural Gas) directly to Project Report on Profile Of IOCL 11 . the Corporation has already captured a significant market share of LAB in India. besides exports. reticulated supplies for housing complexes and 5-kg cylinders for customers in inaccessible and hilly terrain.700 markets through a network of about 5. with product sourced from its Barauni Refinery. besides globalization of its downstream operations. 2. The Corporation’s in-house IndMax process is aimed at enhancing LPG yield from crude oil refining. In E&P. A world-scale Paraxylene/Purified Terephthalic Acid plant (annual capacities: PX . Farsi Exploration Block in Iran.000 tones. PTA – 5. Overseas ventures of the Corporation include two blocks in Sirte Basin and Areas 95/96 in Ghadames basin of Libya. equipped with downstream polymer units is also coming up at Panipat. The process continues even today with the setting up of 89 Indane bottling plants.upstream into oil exploration & production (E&P) and downstream into petrochemicals . Indian Oil is currently forging ahead on a well laid-out road map through vertical integration .000 tones set up at its Gujarat Refinery. while a Naphtha Cracker with a capacity of 800. mostly in upcountry locations for quicker turnaround of cylinders.4 billion) investment by the year 2011-12. Autogas (LPG) dispensing stations are being set up in metros and major cities to cater to the growing vehicle population using LPG as fuel. onshore farmin arrangements in Gabon. at Kolkata in October 1965. In natural gas business. Indian Oil is envisaging Rs. Indian Oil undertook massive augmentation of LPG storage and distribution facilities across the country in 1983. 20. Introduction of the clean and efficient LPG as cooking gas ushered in a revolution in millions of households. Indian Oil is targeting sale of 2 million tones in 2008-09. in consortium with other companies. It has also acquired participating interest in two onshore blocks in Assam and Arunachal Pradesh.000 tones of ethylene per annum. Several innovations were introduced in LPG marketing from time to time.2.000 tones) for polyester intermediates is already in operation at Panipat. This includes customers in Andaman & Nicobar and Lakshadweep islands.

Mauritius (2004) and the United Arab Emirates (2006). terminalling services. city gas marketing. Indian Oil People have been in the forefront in adapting to the changing environment and enhancing the organization’s capabilities in providing innovative and value-added offerings to the customers. Indian Oil Technologies Ltd.7 Future Plans In spite of deregulation of the oil sector and stiff competition from private players. operates a modern petroleum bulk storage terminal at Mer Rouge port. strategic turnaround initiatives taken by the Indian Oil helped BRPL come out of the red and post profits and merger with the parent company is due soon. Subsequently.5. the refinery operations and marketing activities of Assam Oil Company were vested in Indian Oil in October 1981. leading to the formation of a larger and more formidable marketing network. In the year 2001. IOC Middle East FZE oversees blending of SERVO lubricants and marketing of petroleum products and lubricants in the Middle East. LPG and LNG imports and storage. In addition. and commands a 32% market share in aviation fuelling business in Mauritius. capacity expansion of CPCL and laying of the 526-km Chennai-TrichyMadurai product pipeline helped further strengthen Indian Oil’s marketing in South India. Indian Oil acquired the Government stake and management control of stand-alone refiners Chennai Petroleum Corporation Ltd. Indian Oil has eight active joint ventures in operation with reputed Indian and overseas partners in the areas of aviation refueling. An LNG import terminal is proposed to be set up at Ennore near Chennai. Indian Oil acquired IBP in the year 2002 and seamlessly merged it with the parent company in 2007. Indian Oil (Mauritius) Ltd. Was launched as a fully-owned R&D subsidiary in the year 2003 to market the Corporation’s intellectual property. has an overall market share of nearly 20%. City gas distribution projects are in the pipeline in partnership with other companies. Project Report on Profile Of IOCL 12 . 2. besides an oil terminal and a lube blending plant at Trincomalee. operates about 150 petrol & diesel stations in the island nation. Indian Oil has set up three overseas subsidiaries – in Sri Lanka (2003). Indian Oil has maintained its position as India's flagship national oil company.5. Similarly.6 Group Synergy As part of inorganic growth through mergers and acquisitions. Africa and CIS countries. (BRPL). Lanka IOC Ltd. specialty lubricants and additives. (CPCL) and Bongaigaon Refinery & Petrochemicals Ltd. The old units of the vintage Digboi Refinery (the first refinery in Asia) were revamped and by 1996 it was transformed into a modern refinery of Indian Oil. 2.the doorstep of bulk consumers in cryogenic containers for industrial as well as captive power applications. etc. and it became the Assam Oil Division of Indian Oil. substantially enhancing group refining capacity.

difficult terrains and harsh climatic conditions. The rising customer aspirations for quality products and services. etc. and achieving greater synergy with group companies for enhanced efficiency and effectiveness in the market place.Against the backdrop of a rapidly changing business environment. As part of the Marketing Transformation Programme to move closer to the customers. transferred powers from the four regional offices to 16 marketing offices in State capitals. The ambitious Project Manthan IT re-engineering project has enabled the organization to assimilate IT and web-based business solutions for real time. competitive business strategies. have also thrown up myriad opportunities. Indian Oil is making the most of them mainly in expanding its existing customer base. 2. Indian Oil has successfully combined its corporate social responsibility agenda with its business offerings. customizing products for specific market segments. brand management and bio-fuels. Indian Oil is focusing on certain key issues for sustained growth in the deregulated market. integrated transactions and IT solutions for supply chain optimization. customer-focused innovations in product and service offerings. and set up exclusive groups for process & systems optimization. traversing a diversity of cultures. at par with international standards. The Corporation takes pride in its continuous investments in innovative technologies and solutions for sustainable energy flow and economic growth and in developing techno-economically viable and environment-friendly products & services for the benefit of its consumers Project Report on Profile Of IOCL 13 . streamlining distribution infrastructure. meeting the energy needs of millions of people everyday across the length and breadth of the country. Indian Oil has bifurcated its marketing function vertically into exclusive retail and direct consumer groups.5.8 India Inspired As a leading public sector enterprise of India. streamlining of business processes. optimum capacity utilization of refineries and pipelines network. These are: prudent finance and projects management.

2. 1959: Indian Oil Company is founded as a statutory body to supply oil products to Indian state enterprise. which states that its oil industry should be state-owned and operated 1958: The government forms its own refinery company.6 Key dates for the IOCL • • • • • • • • 1948: India's government passes the Industrial Policy Resolution. 1998: The Company’s seventh refinery is commissioned at Panipat. 1964: Indian Refineries and Indian Oil Company merges to form the Indian Oil Corporation. 1981: Half of India's 12 refineries are operated by Indian Oil. 1976: The Burmah-Shell and the Caltex refineries are nationalized. Indian Refineries Ltd. 2002: The Indian petroleum industry is deregulated. Project Report on Profile Of IOCL 14 .

In the ‘Global 500' club. all made possible by a 35000 . 189 in 2004 to 170 in 2005. Bharat Petroleum (289). Indian Oil’s rank is 20. Indian Oil leads the pack of seven Indian companies appearing in the list that is based on the performance in of the year 2008. and a crowning glory in its Golden Jubilee Year (1959-2009). Hindustan Petroleum (311). Indian Oil has steadfastly climbed from 226 in the year 2002 to 191 in 2003. 135 in 2007. Indian Oil has also maintained its leadership status as India's numero uno corporate in the prestigious listing.strong team of Indian Oil People. in the just-released Fortune 'Global 500' list of world's largest companies by sales for the year 2009. Project Report on Profile Of IOCL 15 . Reliance Industries (264). Fortune. Placed at 105. followed by Tata Steel (258). Amongst the petroleum companies in the world. Indian Oil has been consistently improving its position in the elite list published annually by the CNN-Time Warner group magazine.993 billion (excluding excise duties). in Fortune's 'Global 500' listing for 2009 In a befitting acknowledgement of its ever-improving performance.2. 153 in 2006. State Bank of India (363) and Oil & Natural Gas Corporation (402). 116 in 2008 and now 105 in 2009. This is the 7th year in succession that Indian Oil has improved its ranking.7 Indian Oil leads India Inc. Fortune magazine has considered Indian Oil’s revenue for the fiscal 2008-09 and has derived the same at US$ 62. Indian Oil has moved up 11 places.

7 million tones of Gas). 2.000 km mark in length. the 'Global 500' has been the premier list of the world's largest companies. besides globalization of its downstream operations. The Corporation also achieved record sales of 62. The Profit after Tax was Rs.4 million tones. with a well laid-out road map through vertical integration . India's No. Project Report on Profile Of IOCL 16 .6 million tones (including 1. 2.Battling odds in a challenging business environment. 2.47. Indian Oil notched up another year of sterling performance for fiscal 2008-2009.85.3% as compared to Rs. Breaching the 10.457 crore in the previous year. thus carving a niche for itself in the global arena.and diversification into natural gas marketing.upstream into oil exploration & production (E&P) and downstream into petrochemicals . Indian Oil’s gross turnover (inclusive of excise duty) for the year 2008-09 reached a new high of Rs.5 million tones of crude oil and petroleum products. Indian Oil's leap forward in the oil & gas sector. And 2009 is no exception except the bar has been set higher to make it to the list.1 commercial enterprise and flagship oil major. It is one of the best snapshots of the business world today. The Corporation's refineries surpassed 100% capacity utilization and clocked the highest ever throughput of 51. For the past 15 years.337 crore up by 15.950 crore. represents the growth of the Indian corporate sector as well. the pipelines network registered the highest-ever operational throughput of 59.

marketing units such as LPG bottling plants. Applications are then scrutinized and checked for eligibility. It follows a mix of open and campus recruitment. Indian Oil visits the IITs. systems officers. they are further called for group discussion/ group task and interview.2. It also recruits Chartered Accountants from various centers of the Institute of Chartered Accountants of India (ICAI).8. terminals. The candidates meeting the criteria set by Indian Oil are then called for a written test. accounts officers. Apart from fully equipped hospitals at refinery townships. which are continuously upgraded. NITs and other reputed technical institutes of the country for recruiting final year engineering students. Interested candidates meeting Indian Oil's requirements can apply online. Aviation Fuel Stations. For open recruitment advertisements are published in leading national dailies. For campus recruitment. Indian Oil provides its employees many facilities and welfare measures. the Corporation has also nominated hospitals at various locations to meet employee needs. The medical facilities extended to the employees are rated amongst the best in the country. Holiday homes at select locations throughout the country help employees and their families unwind Project Report on Profile Of IOCL 17 . Most of Indian Oil's top executives have grown from within -. lab officers.1 Work Opportunities @ Indian Oil Indian Oil offers a world of opportunities across more than 600 locations In India including refineries. etc. Career growth opportunities are based on the individual's performance and contribution to the common goal of sustained growth. First division professional degree holders and post-graduates from relevant disciplines are recruited as management / engineer trainees. Job rotation and inter-location transfers throughout the country facilitate planned development of careers and broaden outlook.a testimony to the unlimited opportunities for growth available to the meritorious. Indian Oil inducts officers at the junior-most level of the management hierarchy (A Grade). scientists. communications officers. and at the R&D Centre at the entry level. bulk storage terminals.8 Career Opportunities at IOCL 2. Retail/Consumer/Lubricants sales. medical officers. It recruits bright and professionally qualified people for its executive cadre. pipeline. Apart from attractive scales and perks. Based on their performance in the written test. and prominent business management institutes for final year MBA students.

As an ISO 9001-2000 certificate institute. where its divisions. state-ofthe-art computer facility. 2006 and for the year 2007 as well. The only one of its kind in the petroleum sector. a swimming pool and other amenities to provide a highly invigorating learning ambience. Over the years IiPM has evolved into a world-class centre of excellence in leadership development and has become a hub for meaningful interaction between the participants and business leaders from within and outside and best-in-class academia. around 200 officials from the Iraqi oil industry have already completed their training at IiPM on various facets of the oil industry. IiPM has been awarded the Golden Peacock National Award for 'Innovative Training Practices' by the Institute of Directors (IOD). IiPM. the Institute has a well-equipped library. In addition to the modem infrastructure. IiPM has been conducting global standard international business management programmes for executive along with various management development programmes. The Institute. 2000. Over the last one and half years. for 1998. Indian Oil has also been entrusted with the responsibility of training executives from various Iraqi oil companies by the Ministry of Petroleum & Natural Gas (MOP & NG) and the Ministry of External Affairs.2 Indian Oil on IiPM To meet the emerging challenges of post-deregulated era of the oil sector. IiPM has designed and developed the contents and pedagogy of unique programmes in the areas of Strategic and General Management. Every year. The Institute's programmes have been designed and developed based on the industry experience and inputs. Project Report on Profile Of IOCL 18 . Since the last 12 years.2. Marketing Management and Operations & Technology Management to meet the present and future challenges to manage and lead the workplace and organization more effectively. With a mission to align the human resource with corporate business goals and to cater to the pressing organizational needs. the Indian Society of Training & Development (ISTD) also presented the 'Innovative Training Practices' award to IiPM. The institute is centrally air conditioned with 100% power backup. Human Resource Management. has excellent facilities to accommodate over 100 participants at a time. diversities and domain expertise fuse to create the integrated minds of future leadership. Indian Oil in 1995 set up the Indian Oil Institute of Petroleum Management (IiPM) as an apex centre for learning. It also has a 10 executive suites block earmarked to accommodate the visiting faculty. For the year 2006-2007.8. IiPM aims to create a vibrant bridge of knowledge managers to lead the Indian energy companies. with its sprawling campus in 16 acres of lush green landscape. IiPM conducts more than 35 short duration programmes for about 1200 senior executives. It also received the 'Best Innovation in Teaching' award from the Association of Indian Management Schools for the year 1998-99. gym. 2005. considered as being Indian Oil's crucible.

who have also been granted marketing rights for transportation fuels. Even the vast bank of the case studies. Management Development Institute (MDI). Their marketing presence today. Nigerian Nation Petroleum Company (NNPC). The company – wise market share in sales is tabled below: It is evident that the share of the private sector in meeting total consumption of refined petroleum products presently stands at around 15%. This proportion is however. International Management Institute (IMI). reading material and video films related to real-life business. Qatar Refinery Company. and the Indian School of Petroleum. gives it a noteworthy edge for imparting management education to working executives of the Indian industry in general and the energy sector in particular 2.9 Brief Profile of Other Players At present. Qatar (QRC). Dehradun. Gurgaon. Oman (ORC). Kolkata & Bangalore.Indian Oil is also deputing its experts as faculty to impart training to reputed overseas business organizations like Petronas (Malaysia). are in the process of setting up retail outlets to integrate across the entire hydrocarbon value chain. however. IiPM has also developed a comprehensive data bank on expert faculty members which enables designing & development and delivering highly focused market-oriented programmes. Indian Oil has sent in-house experts to train executives of various Sudanese oil companies on pipeline operations & maintenance. BPC and IBP (subsidiary of IOC) marketing oil products in the country. etc. expected to grow significantly in the coming years Project Report on Profile Of IOCL 19 . During the last 12 years of carrying out intensive training development research and consultancy activities. there are four PSUs namely. HPC. Some additional players like ONGC. Essar and Shell have also in marketing rights for transportation fuels. The Institute has a long-lasting academic partnership with premium management institutes like the Indian Institute of Managements (IIMs) based at Ahmedabad. IOC. Abu Dhabi National Oil Company (ADNOC). It has the unique advantage of having information and access to the best faculty to train on the highly critical and significant areas of the ever-growing petroleum industry.380. for designing of programmes and sourcing of expert faculty. Oman Refinery Company. Faculty of Management Studies (FMS). Recently. IiPM has sharpened its skills of imparting international standard management development programmes for executives performing in the highly competitive business of oil & gas. Delhi. certain private players like Reliance. In addition. is not significant and is limited to about 1370 outlets out of total retail outlet strength of about 29. Delhi.

03.837 Crores ($25. and Inland Relay Depots & Retail Outlets. With a capacity of 335 TMT. one in Mumbai (West Coast) of 5.892Million).03. a state-of-the-art refinery at Mangalore with a capacity of 9 MMTPA. The Corporation over the years has moved from strength to strength on all fronts. HPCL holds an equity stake of 16.5 MMTPA.2. In addition. 16% Refining & Marketing share in India and a strong market infrastructure. The Corporation operates 2 major refineries producing a wide variety of petroleum fuels & specialties. This Lube Refinery accounts for over 40% of the India's total Lube Base Oil production. LPG Bottling Plants.1 Hindustan Petroleum Corporation (HPCL) HPCL is a Fortune 500 company. The vast marketing network of the Corporation consists of Zonal offices in major cities and over 91 Regional offices facilitated by a Supply & Distribution infrastructure comprising Terminals. HPCL also owns and operates the largest Lube Refinery in the country producing Lube Base Oils of international standards. Corresponding figures for FY 2006-07 are: Rs 91.95% in Mangalore Refinery & Petrochemicals Limited. (East Coast) with a capacity of 7.9.448 crores ($20.5 million tones in 1984/85 to 13.142 Millions) during FY 2007-08. the turnover grew from Rs.5 MMTPA capacities and the other In Vishakapatnam.837 Crores in FY 2007-08. HPCL is progressing towards setting up of a refinery in the state of Punjab in the joint sector. 2687 crores in 1984-85 to an impressive Rs 1. with an annual turnover of over Rs 1. Aviation Service Stations. On the financial front. The refining capacity steadily increased from 5.70 million metric tones (MMT) presently. Project Report on Profile Of IOCL 20 .

Apart from MRPL. The acquisition of MRPL was in order to facilitate its entry in the downstream industry. but subsequently the Government has let go a part of its holding to financial institutions. and is also planning to buy out the balance HPCL stake. the company also is working on plans to enter the marketing and retailing businesses. Government’s decision not to revise petrol and diesel prices in line with rising crude prices internationally had an adverse impact as the company recorded net losses for a third consecutive quarter. Some of the key features of BPCL are BPCL is the second largest refining and marketing company in India. that has been stuck up in the middle of the process along with HPCL.  The Company has also adopted innovative marketing strategies such as introducing value added highway retailing among others. despite close links. they remained separate. in order to improve its retail sales. 2. In the 1970s. with a capacity of 0. the company was nationalized by way of acquiring a 100% equity stake in 1976. and has now three refineries. ONGC is also having a mini plant. including KRL and NRL. mutual funds. and 24% in HSD. but this Project Report on Profile Of IOCL 21 . etc. ONGC is expanding the scope of its operations to become an integrated player.13 lakh tones. It has a 19% market share in the country in terms of sales. In line with the other oil refining and marketing companies Bharat Petroleum (BPCL) also ended up in red for the quarter ended Dec 05. MRPL is now a subsidiary of ONGC. which has a 71% holding in it. and a retail market share of 32.2 Bharat Petroleum Corporation (BPCL) BPCL was incorporated in 1952 when the Government entered into a joint venture with Burma Oil and Shell Petroleum. made several important new finds off the west coast of India. The company along with its subsidiaries owns 15% of the refining capacity and 9% of the product pipelines.9. ONGC retained control of most of the country's exploration and production capacity. BPCL is the second largest refining and marketing company in India.9. Indian Oil remained responsible for refining and marketing. Company’s operating margins turned negative and the company made operating losses. and another target for disinvestment. It was widely expected that Indian Oil and India's Oil and Natural Gas Commission (ONGC) would eventually be merged into a single state monopoly company. Moreover. with the help of Soviet and other foreign companies.2.2% in MS.3 Mangalore Refinery & Petrochemicals (MRPL) – ONGC Set up as a joint venture between HPCL and the Aditya Birla group in 1988 as a standalone refinery. The company is anticipated to take advantage of its real estate throughout the country for this purpose. Subsequently. Today. Both companies grew vastly in size and sales volume but.  The Company has the third largest retail outlet and LPG distributor network in the country. The company hopes to put in place a retail network of 1700 outlets in place over the next 3-4 years. the Oil and Natural Gas Commission of India.

The refinery was commissioned in July 1999. RIL’s sales moved up just 2% to Rs. and has since merged with its parent company RIL. The company posted just 2% rise in revenues and a 15% fall in reported PAT after the operating margins slipped 210 basis points. Iraqi. Now RIL has plans to set up about 4300 more outlets throughout the country subsequently. India became the largest single purchaser of crude on the Dubai spot market. Reliance Industries (RIL).4 Reliance Industries Limited (RIL) Reliance Petroleum was incorporated in 1991as Reliance Refineries. RIL is a private integrated player in India. depreciation and tax provisions could not bring any respite for the company. When international prices rose steeply after the 1973 Arab oil boycott. For the quarter ended Dec 05. and it commenced its operations in 2000-01. Kuwaiti. Indian Oil's role as the country's monopoly buyer gave the company an increasingly important role in the economy. India's foreign exchange problems mounted. 18168 crore. While the Soviet Union continued to be an important supplier. The refining margins continued to suffer as the company recorded a 46% plunge in the PBIT from refining Project Report on Profile Of IOCL 22 . Small reductions in interest. Its foray into marketing is expected to improve its marketing margins. and constitutes 24% of the country’s refining capacity. and is at Jamnagar.4%. The operating margins slipped by 210 basis points to 16. and has established a retail network of more than 1300 units. RIL also owns 23% of the product pipelines in the country. Indian Oil also bought Saudi. and United Arab Emirate oil. Its refinery is a standalone.increased domestic supply was unable to keep up with demand. 2. Additionally. which pulled the operating profits down by 10% to Rs. and complete its attempt at downstream integration. on the country’s western coast. the largest private Sector Company in India came out with disappointing results for the quarter ended Dec 05. RIL had marketing agreements with the oil PSUs till March 2004 to market about 14 million tones of its petroleum products. It is India’s largest standalone refinery.9. Earlier. but changed its name to the former in 1993. the Jamnagar refinery is also the world’s fifth largest refinery at a single place. 2976 crore.

10 Indian Oil’s Values. Mission. Objectives & Obligations Values with Vision Project Report on Profile Of IOCL 23 . Vision.2.

Project Report on Profile Of IOCL 24 .

Project Report on Profile Of IOCL 25 .

product formulations.  To enhance the country’s self-sufficiency in crude oil refining and build expertise in laying of crude oil and petroleum product pipelines.  To create a strong research & development base in refinery processes. both national and global.  To develop operational synergies with subsidiaries and joint ventures and continuously engage across the hydrocarbon value chain for the benefit of society at large.  To minimise fuel consumption and hydrocarbon loss in refineries and stock loss in marketing operations to effect energy conservation. integration and diversification by harnessing new business opportunities in oil exploration & production.  To achieve higher growth through mergers. natural gas and downstream opportunities overseas. To ensure maintenance of continuous and smooth supplies of petroleum products by way of crude oil refining.  To earn a reasonable rate of return on investment.  To inculcate strong ‘core values’ among the employees and continuously update skill sets for full exploitation of the new business opportunities. pipeline transportation and alternative fuels with a view to minimising/ eliminating imports and to have next generation products.  To maximise utilisation of the existing facilities for improving efficiency and increasing productivity.  To avail of all viable opportunities. Project Report on Profile Of IOCL 26 . acquisitions.  To further enhance marketing infrastructure and reseller network for providing assured service to customers throughout the country.Objectives  To serve the national interests in oil and related sectors in accordance and consistent with Government policies. petrochemicals.  To optimise utilisation of refining capacity and maximise distillate yield and gross refining margin. arising out of the Government of India’s policy of liberalisation and reforms. transportation and marketing activities and to provide appropriate assistance to consumers to conserve and use petroleum products efficiently.

• To have fair dealings with recognised representatives of employees in pursuance of healthy industrial relations practices and sound personnel policies. To ensure maximum economy in expenditure. Obligations (a)Towards customers and dealers To provide prompt. courteous and efficient service and quality products at competitive prices. (c) Towards employees • To develop their capabilities and facilitate their advancement through appropriate training and career planning.Financial Objectives • • • To ensure adequate return on the capital employed and maintain a reasonable annual dividend on equity capital. without budgetary support. To complete all planned projects within the scheduled time and approved cost. • • • To develop long-term corporate plans to provide for adequate growth of the Corporation’s business. To manage and operate all facilities in an efficient manner so as to generate adequate internal resources to meet revenue cost and requirements for project investment. Project Report on Profile Of IOCL 27 . impartiality and courtesy and help promote ancillary industries. (b)Towards suppliers To ensure prompt dealings with integrity. To reduce the cost of production of petroleum products by means of systematic cost control measures and thereby sustain market leadership through cost-competitiveness.

(e)Towards Defense Services To maintain adequate supplies to Defense and other para-military services during normal as well as emergency situations. To maintain the highest standards in respect of safety.(d)Towards community • • To develop techno-economically viable and environment-friendly products. Project Report on Profile Of IOCL 28 . environment protection and occupational health at all production units.

the prestigious Indira Gandhi Paryavaran Puraskar 2006 in the 'Organization' category at a function held on June 5." She added that our former Prime Minister Mrs. President in her lucid address said. New Delhi. E. 2009 at Vigyan Bhawan. President of India.E. conserve and save the environment. the earth and our future generations will survive. H. H. A silver lotus trophy. Chairman.11 Awards & Accreditations Bongaigaon Refinery bestowed Indira Gandhi The first among Indian Refineries to receive the award Paryavaran Puraskar 2006. under the aegis of Ministry of Environment & Forests. So to save our future generations the responsibility rests on each citizen of this country to protect. citation along with a cash prize was presented to the Chairman. presented Mr. Indira Gandhi's vision of One Earth-One Environment One Humanity needs to be imbibed and propagated on a global platform Project Report on Profile Of IOCL 29 . "As long there are mountains and green trees on this earth. Pratibha Patil. Sarthak Behuria. Ms.2.

The nomination for the award can be recommended by any citizen of India. Mr. It would be significant to recall that the foundation stone of Bongaigaon Refinery was laid by Late Smt. The company has been promoting clean and eco-friendly technologies and has been successful in achieving zero effluent discharge and recycling of treated effluent. A herbal and orchid garden 'Nandan Kanan' has been developed for promoting traditional knowledge. 000 trees of different species have been planted. Self nominations are not considered. Bankapur. Project Report on Profile Of IOCL 30 . Executive Director.Bongaigaon Refinery is the first amongst Indian refineries and second among industry. Indira Gandhi. A Saran. B. Director (Refineries) and Mr. 1972. on January 19. along with his team members shared the citation which read. to be presented with this prestigious award. Short listing of the nomination is carried out by three Expert Members selected by the Prime Minister's Office comprising the Speaker of the Lok Sabha. "The Bongaigaon Refinery has done commendable work in preserving natural resources in Assam. There has been a co-benefit in the form of a substantial reduction in water requirement. in recognition of its outstanding contribution to environmental conservation and for creating awareness in the Chirang region of Assam." The Environmental Prize Committee constituted under the Chairmanship of Hon'ble Vice President of India select the awardees. N. both in the private and public sector. the then Prime Minister of India. Minister of Environment & Forests. Over 66. Secretary of the Ministry of Environment & Forests and 3 expert members.


as following:1. To gain familiarity with a phenomenon or to achieve new insights into it. The main aim of research is to find out the truth which is hidden and which has not been discovered as yet. To determine the frequency with which something occurs or with which it is associated with something else. organizing and evaluating data. Objectives of Research The purpose of research is to discover answers to questions through the application of scientific procedures. Studies with this object in view are known as descriptive research studies. To test a hypothesis of a casual relationship between variables. collecting. Studies with this object in view are known as diagnostic research studies. research comprises defining and redefining problems. situation or a group. To portray accurately the characteristics of a particular individual.” Some people consider research as a movement. formulating hypothesis or suggested solutions. and at last carefully testing the conclusions to determine whether they fit the formulating hypothesis. Project Report on Profile Of IOCL 32 . Though each research study has its own specific purpose but the research objectives can be listed into a number of broad categories.Chapter-3 Research Methodology Meaning of Research Redman and Mory define research as a “systemized effort to gain new knowledge. Such studies are known as hypothesis-testing research studies. a movement from the known to the unknown. According to Clifford Woody. 3. Research is an academic activity and as such the term should be used in a technical sense. Studies with this object in view are termed as exploratory or formulative research studies. making deductions and reaching conclusions. 4. 2.

The increasing complex nature of business and government has focused attention on the use of research in solving operational problems. Doubt is often better than overconfidence. has gained added importance. To study products produced by IOCL. The role of research in several fields of applied economics. In it we study the various steps that are generally adopted by a researcher in studying his research problem along with the logic behind them. Significance of Research “All process is born of inquiry. To study in brief the financial aspects of IOCL. as an aid to economic policy. Research. It is necessary for the researcher to know not only the research methods or techniques but also the methodology.” Is a famous Hudson Maxim in context of which the significance of research can well be understood. has greatly increased in modern times. for it leads to inquiry and inquiry leads to invention. Project Report on Profile Of IOCL 33 . whether related to business or to the economy as a whole. To study the company profile of IOCL. To study the strategies followed by IOCL to capture the market share. It may be understood as a science of studying how research is done scientifically. To study the SWOT & PEST for IOCL. both for government and business.Objectives of the Project • • • • • • • To understand the petroleum sector of India. Increased amounts of research make progress possible. To study the organizational chart followed by IOCL. Research Methodology Research methodology is a way to systematically solve the research problem. Research inculcates scientific and inductive thinking and it promotes the development of logical habits of thinking and organization.

the two method by which primary data can be collected is observation and questionnaire. are secondary data in the hands of researcher. Secondary Data Any data. The data collected for this project has been taken from the secondary source. Thus. we do the both. if we want to have first hand information or any happening or event.Data Collection Source Information can be collected through both primary and secondary sources. Sources of secondary data are:• • • Internet Magazines Publications • Newspapers Project Report on Profile Of IOCL 34 . Primary Data In some cases the researchers may realize the need for collecting the first hand information. which have been gathered earlier for some other purpose. we either ask someone who knows about it or we observe it ourselves. As in the case of everyday life.

4 Products & Strategy 4. i. Himachal Pradesh.100 Indian Oil petrol/diesel stations.1 Products Flagships Brands 1) Servo Indian Oil's SERVO is the largest selling lubricant brand in India. Compact 5 kg Indane cylinders were launched in 75 rural and hilly markets of 11 states.300 SERVO Shops and a countrywide network of bazaar traders. The Corporation’s 82 LPG plants bottle about 3.000 markets through the country's largest network of over 4. Arunachal Pradesh.380 thousand tones of LPG per annum. Project Report on Profile Of IOCL 35 . there is a SERVO lubricant for virtually every single application. With over 42% market share and 450 grades. Punjab. Uttar Pradesh. Orissa. Madhya Pradesh and Tamil Nadu. with plans to introduce them in 500 markets in rural areas. Developed exclusively at Indian Oil's world-class R&D Centre at Faridabad. over 1. the country's leading SERVO brand lubricants from Indian Oil are sold through over 8.e. Meghalaya. West Bengal. J & K.000 distributors.Chapter. with one of the largest ranges of automotive and industrial lubricants. 2) Indane Indian Oil reaches Indane brand cooking gas to the doorsteps of over 35 million households in over 2. Assam.

with 68% market share. 24. and Indian Oil intends to further expand its marketing in a big way. Indian Oil refuels over 900 aircrafts. XtraPremium sales have been extended to 315 cities and 950 petrol & diesel stations. Bangalore and Mumbai markets. 2002. the only petrol in India with 91 Octane and doped with Multifunctional Additives. meets the fuel and lubricants needs of domestic and international flag carriers. The wing’s foreign exchange earnings during the year 2008-09 touched Rs. 5) Auto Gas Auto gas (LPG) has been introduced in Hyderabad. 1015 crore. Defense Services and private aircraft operators through 93 aviation fuelling stations.3) Premium Fuel The launch of premium fuels . The maiden launch of these branded fuels took place in Delhi on Sept.XtraPremium and XtraMile (originally IOC Premium and Diesel Super respectively). In fact. the refueling never stops and neither does our customer service. This alternative fuel is a good business proposition in the long term. marks a new beginning for Indian Oil and its customers. Project Report on Profile Of IOCL 36 . and XtraMile to 1050 cities and 2000 petrol and diesel stations by the end of the financial year 2008 – 2009. which is round the clock. Between one sunrise and the next. 4) Aviation Service Indian Oil’s ISO-9002 certified Aviation Service. in fact. Subsequently. XtraPremium is.

XtraMile Branded Diesel. Quantity and Service to world-class standards is a philosophy that Indian Oil adheres to so as to ensure that customers get a truly global experience in India. Indian Oil Aviation also caters to the fuel requirements of the Indian Defense Services. Project Report on Profile Of IOCL 37 . While quality. Recently Indian Oil has also introduced a new business line of supplying LNG (Liquefied natural gas) by the cryogenic transportation. Swagat (Highway) and Kisan Seva Kendras (Rural) are widely recognized as pioneering brands in the petroleum retail segment. Jet fuel is a colorless. Indian Oil Aviation Service refuels over 1500 flights – from the bustling metros to the remote airports linking the vast Indian landscape. global brand at another level. Indian Oil’s leadership extends to its energy brands . Indian Oil Aviation Service Indian Oil Aviation Service is a leading aviation fuel solution provider in India and the mostpreferred supplier of jet fuel to major international and domestic airlines. Indian Oil is India's first ISO-9002 certified oil company conforming to stringent global quality requirements of aviation fuel storage & handling. The company’s Retail Brand template of XtraCare (Urban). Autogas LPG. The branding called "LNG at Doorstep". straight-run petroleum distillate liquid. Indian Oil is widely recognized as India’s dominant energy brand and customers perceive Indian Oil as a reliable symbol for high quality products and services. besides refueling VVIP flights at all the airports and remote heli-pads/heli-bases across the Indian subcontinent . SERVO Lubricants. LNG headquarters are located in scope complex.The governing specifications in India are IS 1571: 2001 (7th Rev). Benchmarking Quality. combustible. reliability and service remains the core benefits to our customers. Besides having a dominant market share. from the icy heights of Leh (the highest airport in the world at 10. our stringent checks are built into operating systems.Indian Oil is not only the largest commercial enterprise in the country it is the flagship corporate of the Indian Nation. Indian Oil is a heritage and iconic brand at one level and a contemporary. The most common jet fuel worldwide is a kerosene-based fuel classified as JET A-1. Its principal uses are as jet engine fuel. XtraPremium Branded Petrol.Indane LPG. XtraPower Fleet Card. Lodhi Road Delhi. at every level ensuring the trust of over a billion Indians over the last four decades. Our continued emphasis is on providing fuel management solutions to customers who can then benefit from our expertise in efficient sourcing and least cost supplies keeping in mind their usage patterns and inventory management. Indian Oil Aviation and XtraRewards cash customer loyalty programme.682 ft) to the distant islands of Andaman & Nicobar. Between one sunrise and the next.

Jet A-1 and aviation lubricants. etc. Indian Oil regularly organizes seminars. statutory aviation authorities and government agencies from over 35 countries. Project Report on Profile Of IOCL 38 .Indian Oil Aviation group regularly organizes International Aviation conferences that act as a vital information facilitator with participation from leading international and all domestic airlines. helps us to stay abreast with advances in technology. ATF is pumped into an aircraft by two methods: Overwing and Underwing. Ensuring that these standards are always upheld.JP-5. Overwing fuelling is used on smaller planes. the world leader in aviation business. 15 Quality Certification Laboratories provide complete specification tests roundthe-clock. To ensure that you receive the best service. there is a back up of a highly skilled. In addition. allied industries. which are driven up to parked airplanes and helicopters. Underwing fuelling. symposiums and workshops to constantly interact with its partners. Indian Oil has a strategic partnership with Air BP. which apart from being a two-way channel of communication. helicopters. Indian Oil is the only oil company in India to market the widest possible range of fuels used by the aviation industry in India. Methanol Water or more fuel ports are opened and fuel is pumped in with a conventional pump. Aviation Turbine Fuel (ATF) is dispensed from specially designed refuelers. also called single-point is used on larger aircraft. Avgas 100LL. Essentially. every one of our 101 AFSs follows specific quality audits based on a Quality Control Index System benchmarked to global standards. Major airports have hydrant refueling systems that pump the fuel right up to the filling outlets on the tarmac through underground pipelines for faster refueling. and piston-engine aircraft and is similar to automobile fuelling . qualified and dedicated team of officers and refueling crew.

4. Guwahati.1. Narimanam and Bongaigaon .50 million metric tones per annum (MMTPA) or 950 thousand barrels per day (bpd). Chennai. Digboi. Mathura. “Indian Oil accounts for 41% of India's total refining capacity. Barauni.” Project Report on Profile Of IOCL 39 . Koyali.with a current combined rated capacity of 47. Haldia.1 Refineries Indian Oil controls 10 of India's 18 refineries .

was built in collaboration with Russia and Romania. was built with Romanian collaboration and was inaugurated by Late Pt. Its capacity today is 6 MMTPA. which has since been increased to 5. situated 136 km downstream of Kolkata in the Purba Medinipur (East Midnapore) district. The original refinery with 6 MMTPA capacities was built and commissioned in 1998.8 MMTPA Mathura Refinery was commissioned in 1982 as the sixth refinery in the fold of Indian Oil and with an original capacity of 6. It also houses the first hydrocracking unit of the country. the first Prime Minister of India. at Koyali in Gujarat in Western India. Located strategically between the historic cities of Delhi and Agra. is Indian Oil’s largest refinery. the first public sector refinery of the country. Originally a part of Assam Oil Company.5 MMTPA.Refineries under IOCL • Digboi Refinery.95 MMTPA).5 MMTPA since 1901. Its present capacity is 13.70 MMTPA. Guwahati Refinery.5 MMTPA. Jawaharlal Nehru. Modernization project of this refinery has been completed and the refinery now has an increased capacity of 0. it became part of Indian Oil in 1981. It was commissioned in 1964 with a capacity of 1 MMTPA. Chennai Petroleum (9. Panipat Refinery is the seventh refinery of Indian Oil. on 1 January 1962. • • • • • • Subsidiary refineries — Bongaigaon Refinery (2. in Upper Assam.0 MMTPA. It was commissioned in 1975 with a capacity of 2. Its original refining capacity had been 0. Panipat Refinery has doubled its refining capacity from 6 MMT/yr to 12 MMTPA with the commissioning of its Expansion Project.65 MMTPA. is India's oldest refinery and was commissioned in 1901. in Bihar. The refinery was commissioned in 1965.5 MMTPA) Project Report on Profile Of IOCL 40 . Haldia Refinery is the only coastal refinery of the Corporation. Gujarat Refinery. the capacity of Mathura refinery was increased to 7. Barauni Refinery.

“Indian Oil owns & operates 76% of India's downstream pipeline network.” As the backbone of Indian Oil’s refining and marketing operations.1. Indian Oil opened new facilities at Mundra port on the west coast for handling of heavy crude oil and blending of heavy and normal grades.45 MMTPA. with a combined capacity of 43. Indian Oil also operates two Single Buoy Mooring systems in the high seas off Vadinar coast in the Gulf of Kutch for receipt of crude oil.45% increase in throughput at 21. Compared to the previous year.000 km.300 km pipelines network registered the highest ever operational throughput of 57.4. the product pipelines achieved a 10.27 million tones while the crude oil pipelines registered a 10. During the year.2 Pipelines of IOCL Indian Oil owns and operates India's largest network of cross-country crude oil and product pipelines of 7. Project Report on Profile Of IOCL 41 .12 million tones during the year. its 9.54% growth at 35.85 million tones.

The countrywide marketing operations are coordinated by 16 State Offices and over 100 decentralized administrative offices Project Report on Profile Of IOCL 42 .3 Marketing Indian Oil’s countrywide network of over 22. SERVO lubricants & greases outlets and large volume consumer pumps are backed by bulk storage terminals and installations. Indian Oil is truly 'in every heart. installations and depots.000 marketing touch points. 92 aviation fuel stations and 78 LPG bottling plants. LPG bottling plants and lube blending plants amongst others. well spread out marketing infrastructure comprising 182 bulk storage terminals. inland depots. is a stand-alone marketing company with a nationwide retail network of over 1900 sales points. From the icy heights of the Himalayas to the sun-soaked shores of Kerala. Indian Oil touches every customer's heart by keeping the vital oil supply line operating relentlessly in every nook and corner of India.4.” Indian Oil has one of the largest petroleum marketing and distribution networks in Asia. Its ubiquitous petrol/diesel stations are located across different terrains and regions of the Indian sub-continent.000 sales points ensures that essential petroleum products reach the customer at the "right place and right time". “Indian Oil caters to over 53% of India's petroleum consumption.000 retail sales points is backed for supplies by its extensive. Its subsidiary. from Kutch on India's western tip to Kohima in the verdant North East. in every part'. with over 35.1. Indane (LPG) distributorships. Indian Oil's vast marketing infrastructure of petrol/diesel stations. IBP Co. Indian Oil’s vast distribution network of over 22. aviation fuel stations. Ltd.

2 STRATEGY 4.2.1 Current strategies as a leader Defending its market share • • Market leader in branded fuels with 60% market share Branded fuel growth rate is 75% YOY for IOCL Porter’s generic strategies • • • Overall cost leadership Differentiation Focus Strategic alliance • • • • Product or service alliance Promotional alliance Logistic alliance Pricing collaboration Project Report on Profile Of IOCL 43 .4.

Steps followed in Strategic Formulation Project Report on Profile Of IOCL 44 .

Project Report on Profile Of IOCL 45 .Indian Government might reduce its share in IOCL in order to streamline fund raising and compete globally. solar power expansion will increase in a large scale and bio-fuel plantation will be on increased scaled.2 Suggested Strategy for 2012  Blended fuel – brand repositioning has to be done.  India 70% unexplored sedimentary blocks provide a potential opportunity for the company for diversification  Global competitiveness-With Governments relaxation in FDI norms. ♦ Trans-national: IOCL must go bullish on future acquisitions of oil blocks either in India or abroad ♦ Diversified: IOCL must push for the 5% ethanol (jatropha) blended diesel to promote bio-fuels ♦ Integrated Energy Company: IOCL should market itself as a integrated energy company by venturing into diversified energy sources like.2.4. as they are not able to capture the intended turnover response from the market  Company needs to improve upon upstream R & D so as to be an integrated energy company and be self-sufficient.  Company should go for independent Oil block acquisition in future after attaining sufficient experience in that area.(up to 49% allowed in refining sector).

To provide the products with best satisfaction to the retailers (Industries. But there can be some strategies in the organization.4. Aviation) as well as to the customers. To provide various schemes to the customers as already launched like IOC Extra and Credit Card etc. Structure of the marketing division 1. Strategy 2. which are being used in any organization. Project Report on Profile Of IOCL 46 . To provide better working environment to the employees to attract the potential employees as well as satisfy the present employees.3 MANAGERIAL USEFULLNESS OF STUDY ANALYSIS ON THE BASIS OF 4 S MODEL OF Mc KINSEY MODEL FOLLOWED: 1. which will remain the same over a period of time because of their nature. Style 3. Internal Strategies: • • • • • To provide the quality products. To concentrate more on customer orientation than profit maximization. STRATEGY: Strategies can be defined as the policies or the guidelines. Strategies of any company can be changed with the change in business atmosphere or the increase in the competition. Skills 4.2.

Though it has a big domestic market. Project Report on Profile Of IOCL 47 . at times • In case of excess the products are exported. where the means of transportation is very costly as well as rare. The various measures of training adopted in IOCL are: • • • • Off the job training. Bangladesh. • Indian Oil is providing its services to Airlines also. There is no area left in the country where Indian Oil doesn’t have its retail outlets. Leh etc. Lecture system.It has its retail outlets in under developed areas like J&K. Aviation is one of the major customers of the company and it is providing the best quality product to Airlines. Indian Oil has provided the required oil without fear. with profits because of regular dealings with these countries. It is providing the facility inside the Airport only so that the requirements can be met at any time. training has become the necessity of any organization. Kenya etc. In J&K in spite of terrorism and Kargil war. Himachal Pradesh. Seminars etc. STYLE: Since with the increase in the competition and new inventions. It has its retail outlets not only in urban area but also in rural areas . 2. But the company has to face losses on these exports. It also exports Lubricants to Dubai. EXPORTS: • Indian Oil exports its products mainly to Kenya. Group discussion. So it has helped in nation’s security and integration also. and Dubai etc.Broad Area: • IOCL has been developed all over the country. Most of the times the NAPHTA is being exported to these countries. Indian Oil’s employees are being trained from time to time as per requirement.

4. maintaining high market share has been a challenging task for the company. lab officers. officers. accountants. First division professional degree holders and Post Graduates from relevant disciplines are recruited as management/engineering trainees. The success of any company depends on its employees. So the company should try to adopt the system of On the Job Training where the employees are actually given hands on work for what they are being trained. medical officers. This system is more effective and motivating than any other system. communication officers. After the deregulations of aviation products in 1992. STRUCTURE FOR THE MARKETING DIVISION It can be broadly divided into 3 categories as represented by the following ways MARKETING AVIATION L. It is also one of the most important systems in any organization. There are no direct placements in the company. system officers.G PETROL AIRLINES AIRFORCE There are only 2 major customers for aviation products namely airlines and air force.Since all these measures of training are indirect and less motivating because the employees are not actually put into work.P.G. SKILLS: The term Recruitment means to attract the potential employees to apply in the organization. the company has divided the total market into various areas headed by respected area officers Project Report on Profile Of IOCL 48 .P. The written examinations are conducted as per the requirements and the selected candidates are called for an interview. 3. For marketing of L. scientists etc. In IOC people are being recruited on the basis of the qualification required for the particular job.

in the eastern part of the country. This complex envisages production of integrated petrochemicals like Paraxylene. Project Report on Profile Of IOCL 49 .4 Indian Oil Major Projects Indian Oil continues to lay emphasis on infrastructure development. MS. Diesel and other products. This will be the most modern refinery in India with nil residue production and the products would meet stringent specifications. Brief Description: A 15 MMTPA grassroots refinery-cum-petrochemicals complex (along with a product pipeline to Ranchi) is planned to be constructed at Paradip in the state of Orissa. Naphtha. It will also have an integrated gasification combined cycle plant for production of steam. a Delayed Coker Unit and other secondary processing facilities. The Refinery will have. apart from a Crude and Vacuum Distillation Unit. LPG. Schemes for improvement and increased profitability through debottlenecking / modifications / introduction of value added products are being taken up in addition to grassroots facilities. Polypropylene. power and hydrogen from petroleum coke for captive use in the refinery. Project systems have been streamlined in line with ISO standards. 1) GRASSROOTS REFINERY .4. a number of schemes have been initiated with increasing emphasis on project execution in compressed schedules as per world benchmarking standards.646 crore Expected Commissioning: By end of 2011-12 Benefit: The project will help in partly meeting deficit of distillates viz. Towards this end.2. a Hydro cracking Unit. and Styrene. The complex will generate intermediate petrochemicals feedstock. Jet/Kero.CUM – PETROCHEMICALS PROJECT AT PARADIP Project Cost: Rs. 25. 3344 acre of land has been taken over by Indian Oil and necessary infrastructure development jobs prior to setting up of the main refinery are progressing.

2007 3) NAPHTHA CRACKER AND POLYMER COMPLEX AT PANIPAT (HARYANA) Project Cost: Rs. processing increased quantity of high sulphur crude and improvement in distillate yield.693 crore Expected Commissioning: January 2010 Benefit: The project envisages setting up of a number of units like VGO-HDT. 5. With a capacity of 800. this project shall lay the foundation for creation of a world-class petrochemicals hub. Brief Description: The project envisages setting up of a Naphtha Cracker based on captive utilization of naphtha from Panipat. It shall ensure meeting product quality requirement of MS/HSD to EURO-III/IV levels. Last Updated: August 09. Brief Description: The objectives of the project are multifold. a dedicated HDPE unit. benzene extraction etc.000 MT/year of ethylene production.439 crore Expected Commissioning: November 2009 Benefit: This project is a cornerstone for Indian Oil's entry into petrochemicals and a new business line for growth. hydrogenation. DHDT. ATF-Merox. butadiene extraction. ISOM. which will engender significant industrial activity in the coming years.2) RESIDUE UPGRADATION AND MS/HSD QUALITY IMPROVEMENT PROJECT AT GUJARAT REFINERY Project Cost: Rs. FCC-Merox. Polypropylene unit and MEG unit Project Report on Profile Of IOCL 50 . the Cracker complex will have associated units viz. For the State of Haryana. besides downstream polymer units like swing unit (LLDPE/HDPE). HGU (PDS) and SRU. 14. Mathura and Koyali refineries of Indian Oil. Coker. LPG-Merox.

Sanganer and Rewari. Benefit: This is a low cost expansion scheme of Mundra-Panipat crude oil pipeline system for meeting the additional crude oil requirement of Panipat refinery to the tune of 3 MMTPA. Brief Description: The proposed R-LNG pipeline would provide for an economical means of feeding natural gas to Panipat refinery 6) AUGMENTATION OF MUNDRA – PANIPAT CRUDE OIL PIPELINE Project Cost: Rs. 204. 250. 232. Project Report on Profile Of IOCL 51 .4) CHENNAI-BANGLORE PRODUCT PIPELINE Project Cost: Rs. Chennai) in Tamil Nadu to Banglore in Karnataka Brief Description: The pipeline would ensure uninterrupted. regular and economical transportation of petroleum products to Bangalore-fed areas in a cost-effective manner. 5) DADRI-PANIPAT R-LNG SPUR PIPELINE Project Cost: Rs.11 crore Expected Commissioning: July 2009(or 24 months from Forest & Environment Clearance) Benefit: The project consists of laying 14"/12" diameter 290 km long product pipeline from CPCL Refinery (Manali. Kot.66 crore Expected Commissioning: January 2009 Benefit: The 132 km long 30 inch diameter spur line carrying regassified LNG (R-LNG) will stretch from GAIL India’s Dadri terminal in UP to Panipat.74 crore Expected Commissioning: December 2008 Brief Description: Project consists of laying a 22" diameter 20 KM long loopline in KotBeawar section and conversion of Radhanpur scraper station to pumping station while adding pumping units at Mundra.

72 crore Expected Commissioning: August 2008 Benefit: The pipeline with feed Indian Oil’s LPG bottling Plants at Nabha and Jalandhar in a cost-effective manner. Brief Description: Project consists of laying a 10" diameter 275 KM long LPG pipeline from Kohand (near Panipat refinery) in Haryana to Jalandhar via Nabha in Punjab. Project Report on Profile Of IOCL 52 .7) PANIPAT-JALANDHAR LPG PIPELINE Project Cost: Rs.186.

etc. training and consultancy. petrochemicals. Bangladesh. and Nepal. lube additives. which are high demand and high growth areas.1 Strengths o IOC controls 10 refineries. Dubai. IOC has also acquired equity stakes in CPCL and BRPL. gas.1 SWOT Analysis for IOCL INTERNAL ENVIRONMENT 5. IOC is also weighing the possibility of entering Indonesia. 8000 LPG distributors. and not near the major ports IOC has a very strong distribution network by virtue of having a share of 48% in the country’s product pipelines. o IOC also acquired management control of the marketing company IBP. Its interests include downstream activities in Sri Lanka.Chapter-5 SWOT & PEST Analysis of IOCL 5.79 MMT. Maldives. o The company has already entered overseas markets such as Sri Lanka. by virtue of which it has a total share of around 40% of India’s overall refining capacity. Its network includes 19830 retail outlets. the company has a presence in various other related activities such as petroleum storage.1. IOC has also started exploring the overseas markets for increasing its scope of operations. Maldives. among others. these refineries became subsidiaries of IOC. Oman. etc. and in 2001. o 58% of IOC’s refining capacity is located in the Northern and Western regions. o Although its refineries are located the interior of the country. and 6492 kerosene/LDO dealers. exploration. and Oman and is presently considering entering Turkey through a JV. interest in the lubes business in Maldives. It also has a dominant share in all segments in terms marketing infrastructure. and of its own initiative as well. Sri Lanka. Project Report on Profile Of IOCL 53 . pipelines. o By virtue of entering into extensive joint venture agreements. thereby strengthening its position in these activities. The total capacity of these product pipelines is 49.

Project Report on Profile Of IOCL 54 . o The major weakness for the company is the R&D. but still it has many weaknesses.2 Weakness:The company is the market leader in the industry. It is already involves in E&P but only in a very limited scale. which will get support from its huge market network. and can introduce any new products.1. as compared to some major foreign player is another weakness for the company. it can very easily go for extension at any point of time. o Since the company has the maximum no. so that it will be an independent player and it will also support its aviation fuel supply. This is because the petroleum products are a need for everyone and still contain a lot of scope for customization. The various opportunities are listed below. o The Company has a great scope in E&P. o The technological drawback.1.5. EXTERNAL ENVIRONMENT 5. The list is given below. o The Company can think over the issue to build its own pipelines. o The Company can make the buying process easier for the customers. o The petrochemical product development technology is another weakness for the company.3 Opportunity: The IOCL has much opportunity in the present market conditions. of refineries in India. The company starts working on it. by implying many more schemes in the range of XTRAPOWER AND XTRAREWARD. of out lets and also the maximum no.

5. some time had operated in loss also. o If the Govt. Project Report on Profile Of IOCL 55 . so faces maximum threats from other players and many other issues.4 Threats: Since the company is the market leader in the field. o The foreign players with more advanced technology are the biggest treat for the company. because the company cannot fix its price and so. Policies allow the private players to set their own price. o In future the market will welcome more private players. the private player can seriously harm the market share of IOCL.1. The list of threats is given below. which will eat up its market share. It is the biggest problem because the maximum part of their crude is been imported. o The crude oil supply is also a big issue in front of the company.

2.3 Socio cultural environment  70% of India lives in villages  Customer psychology is also different for different regions 5.  Mission of the company.2.“to develop environmental friendly products” Project Report on Profile Of IOCL 56 .0.2.130PNG  Regulator is PNGRB  Geo political tensions 5.2 Economic environment  Projected GDP growth rate of 7%  Recent high inflation attributed to spike in crude oil price  2.63 mb/day oil consumption  First reason for the Indian trade deficit 5.5 Natural environment  Increased emphasis on environmental policies by Govt.2 PEST ANALYSIS 5.4 Technological environment  Increased R&D expenditures by the company  First experimental H-CNG at R&D center Faridabad  Latest technology development for bio diesel production Political and legal environment  Prices governed by Mo.5.

 Won SCOPE meritorious award for environmental excellence Project Report on Profile Of IOCL 57 .

meeting the energy needs of millions of people everyday across the length and breadth of the country.Chapter. agricultural and marine sectors. • Indian Oil has successfully combined its corporate social responsibility agenda with its business offerings. Various checklists of control have been made as exhaustive as possible in dealing with the banking transactions. • Bongaigaon Refinery is the first amongst Indian refineries and second among industry. to be presented with this prestigious award. it is because of this incredible expertise an synchronize functioning that Indian Oil has a monopoly in the down stream sector. • Utmost care is taken while implementing all the control measures and there is no deviation from the laid down procedures. • The Indian Oil Corporation also enjoys a dominant share of the bulk consumer business. After undergoing an in-depth study of the report. Reform in the downstream hydrocarbon sector--the sector in which Indian Oil was the market leader--began as early in 1991 and continued throughout the decade. • The oil industry in India changed dramatically throughout the 1990s and into the new millennium. both in the private and public sector. • • The functions. activities. one can easily recognize that Indian Oil ensures proper accounting for each and every rupee transacted through Project Report on Profile Of IOCL 58 . including that of railways. state transport undertakings. and industrial. roles and responsibilities of the concerned work groups are also being performed very smoothly. traversing a diversity of cultures. but still certain improvements are yet to take place. Undoubtedly. difficult terrains and harsh climatic conditions.6 Conclusions • bank. in recognition of its outstanding contribution to environmental conservation and for creating awareness in the Chirang region of Assam.

which are high demand and high growth areas. IOC has also acquired equity stakes in CPCL and BRPL. petrochemicals. training and consultancy. and 6492 kerosene/LDO dealers. • By virtue of entering into extensive joint venture agreements. by virtue of which it has a total share of around 40% of India’s overall refining capacity. 8000 LPG distributors. pipelines. these refineries became subsidiaries of IOC. It also has a dominant share in all segments in terms marketing infrastructure.• • • Indian Oil Aviation Service is a leading aviation fuel solution provider in India and the most-preferred supplier of jet fuel to major international and domestic airlines. exploration. • • 58% of IOC’s refining capacity is located in the Northern and Western regions. and in 2001. etc. gas. Its network includes 19830 retail outlets. IOC controls 10 refineries. and of its own initiative as well. thereby strengthening its position in these activities. the company has a presence in various other related activities such as petroleum storage. IOC also acquired management control of the marketing company IBP. lube additives. Project Report on Profile Of IOCL 59 . Indian Oil is India's first ISO-9002 certified oil company conforming to stringent global quality requirements of aviation fuel storage & handling.

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