INDIAN OIL

CORPORATION
Maharatna company

MAHARATNA
INDIAN OIL CORPORATION AQUIRE MAHARATNA
STATUS IN 2010
INDIAN OIL CORPORATION AQUIRE NAVRATNA STATUS
IN 2005

TOPICS TO BE COVERED
1.INDUSTRY OVERVIEW
2.COMPANY OVERVIEW
3.OBJECTIVE OF THE STUDY
4. METHODOLOGY
5. OBSERVATIONS & ANALYSIS
6.FINDINGS
7. RECOMMENDATIONS
8. CONCLUSION

INDUSTRY OVERVIEW
Indian oil and gas sector - one of the six core
industries in India and has very significant
forward linkages with the entire economy.
The growing demand for crude oil and gas in
the country and policy initiative of
Government of India towards increased E&P
activity leads to a great impetus to the Indian
E&P industry raising hopes of increased
exploration.
Oil and Natural Gas Corporation Limited
(ONGC) and Oil India Ltd. (OIL), the two
National Oil Companies (NOCs) and private
and joint-venture companies are engaged in
the exploration and production (E&P) of

COMPANY OVERVIEW
I-----Interacts with your customer regularly
N----Needs- identify precise needs of your customer
D----Delight your customer every time
I-----Innovate your services for customer excellence
A----Accuracy- accurate quantity to be provided
N----Never argue with your customers
O----Offer them every service available to you
I------Invite your customer to visit again
L------Leave a long lasting impression on your
customers

Continued
Established on 30th June 1959, as Indian
Oil Company Ltd. & renamed as Indian Oil
Corporation Ltd. on 1st September 1964.
18th largest petroleum company in the
world.
Indian Oil Corporation Ltd. is India's largest
company by sales with a turnover of Rs.
3,28,744 crore ($ 72,125 million) and profit
of Rs. 7445 crore ($ 1,633 million) for the
year 2010-11.
IndianOil is the highest ranked Indian
company in the latest Fortune Global 500

Vision of the company

A major diversified,
trans-national,
integrated energy
company, with
national leadership
and a strong
environment
conscience, playing
a national role in oil
security & public
distribution.

Mission of the company

To achieve international standards of excellence in all
aspects of energy and diversified business with focus on
customer delight through value of products and
services, and cost reduction.

Retail market share

Name of the company

Market share (%)

IOC GROUP

46.2

BPCL

18.6

HPCL

16.5

OTHER PSUs

2.2

TOTAL PSUs

83.5

PRIVATE

16.5

TOTAL

100

Retail Market Share (as on Nov-2011)

Products
Indane Gas
Auto Gas
Natural Gas
Petrol
Diesel
Jet Fuel

Lubricants &
Greases
Marine Fuels
Kerosene
Bulk/Industrial Fuels
Bitumen
Petrochemicals
Special Products
Crude Oil

Services offered by the company

Refining
Pipeline
R&D
Marketing

SWOT of the company

STRENTGH
>controls 10 refineries
>acquired equity stakes in CPCL
& BRPL, & in 2001, became
subsidiaries of IOC.
>very strong distribution
network
>acquired management control
of the marketing company IBP
>extensive joint venture
agreements
>already entered overseas
marketsOPPORTUNITY
such as Sri Lanka,
Maldives, and Oman.

WEAKNESS
>major weakness for the
company is the R&D
>petrochemical product
development technology
>technological drawback, as
compared to some major foreign
player
> Size of the organization is too
big to manage all effectively

>easily go for extension at any point

of time, and can introduce any new
products.
>make the buying process more easy
for the customers.
>think over the issue to build its own

>foreign players with more advanced

technology are the biggest threat for
the company
>crude oil supply - cannot fix its price
,
>In future the market will welcome

THREAT

OBJECTIVE OF STUDY
To propose a plan which should be cost effective and
should cater the L.P.G demand of all the areas for the
year 2016-17.

Methodology
The method which we are using is pretty simple .We have taken
maps of each state and with the available demand of the L.P.G.
as well as existing capacity of common-user plants, we were able
to calculate deficit of each district. After calculating the deficit we
have applied thumb rule.
The next step is to analyse the figure of deficit, if the deficit is
high and in future it will be rising even more we have proposed a
new plant otherwise we have augmented the capacity of existing
IOCL bottling plants.
Whenever there is a surplus that particular plant will cater the
demand of near by plants where there is deficit within the range
of 160-200 kms

ASSUMPTIONS
1). We are applying the thumb rule i.e if a common user plant is
located in a particular district it is feasible to cater the demand of L.P.G.
within one way distance of 111 kms.
2). If we are recommending a new plant we assume that the new plants
can feed the demand of other plants in future which are located in a
distance of 160-200 kms one way distances.
3). We have assumed that in a state where the districts cant be fed
from that particular state, we tried to cater the demand from near by
plants of the other states.
4). We have also proposed a new plant where the demand is more and
the competitors already have a bottling plant in that particular place
and there is high rising in demand in future. This will give us the
competitive edge.

CONCLUTION
THE IN ALL TOTAL 66 NEW PLANTS ARE PROPOSED FOR
THE YEAR 2016-2017.
THE NEW CAPACITY BY THE YEAR 2016-2017 IS NEEDED
AS 3192 TMT.
THE TOTAL SAVINGS COMING OUT TO BE
Rs 538.38 CRORES WITH AUGUMENTATION
COST NOT TAKEN INTO CONSIDERATION.

CONCLUTION
TOTAL 66 NEW PLANTS ARE NEEDED FOR THE YEAR
2016-17 IN ORDER TO CATER THE DEMAND.
THE TOTAL SAVINGS ARE COMING UP TO

Rs. 538 CRORES.

AUGUMENTATION OF EXISTING BOTTELING PLANTS ARE
REQUIRED AS PER THE SUGGESTIONS GIVEN ABOVE.
THE NEW CAPACITY NEEDED FOR THE YEAR

2016-17 IS 4640 TMTPA

INDIAN OIL PETROL PUMP

KANGRA AT 22/10/16
12:16AM