OPERATIONS

STRATEGY
Case Analysis 2

Madras Refineries
Limited
GROUP 1

Somesh Rathod (P18032)

Kamal Saraogi (P18038)
Binoy M T (P18076)
 Madras Refineries Limited
• 9th in the chain of 12 Indian refineries
• Commissioned in Jun, 1969
• 3 partners – GOI (74% stake), NIOC and Amoco India (13% stake each)
• IOC is the only customer
• Capacity – 2.8 mn tonnes p.a.
• 13 process plants
• Products – Light distillates, Middle distillates, lube-base stocks, asphalt, furnace
oil, sulphur
• Sales CAGR 25% between 1977-1982, PBT margin 16% in 1982
• Expansion project to double the capacity

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 Reasons for better performance of MRL

 Instead of reducing throughput, they took the risk of producing at par with plant
capacity which helped in continuous operation of the plant

 Close coordination among parties

 Anticipating the problems

 Intervention of OM&S department in managing crude oil inventory levels

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 Future Plans of MRL

 Since MRL is working in full capacity, there is a requirement for expanding the
plant

Microsoft Excel
Worksheet

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 Thank You

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