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    SUMMER TRAINING REPORT

    ON

    INDANE LPG,FACTORS AFFECTING ITS CUSTOMERS ANDSALES AND ITS COMPARATIVE ANALYSIS WITH PNG

    (Submitted in partial fulfilment for Post Graduate Diploma in

    Management, from IMS NOIDA, NOIDA)

    Institute of Management Studies,

    Noida

    SUBMITTED TO SUBMITTED BY

    RITU SHARMA ANKIT KUMAR JHA

    PGD-11013

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    EXECUTIVE SUMMARY

    1. The Title Of The

    Project

    COMMERCIAL LPG, FACTORS AFFECTING ITS

    CUSTOMERS AND SALES AND ITS

    COMPARATIVE ANALYSIS WITH PNG

    2. Name Of The

    Organization

    INDIAN OIL CORPORATION LTD

    3. Institutional Guide Ms. Ritu Sharma , Professor , IMS NOIDA

    4. Organizational Guide Mr. Naresh Gera

    Chief Area Manager , IOCL, Noida

    Project Duration 6 Weeks from 09.05.2012

    5. Objectives Primary

    - To identify the issues related to Indane Gas

    customers

    Secondary

    - To find out short term problem in every sub-regionso

    - to provide solution to the identified problems toimprove upon Corporations image and sales.

    -6. Research procedure Sample Size-30

    Sampling Technique- Convenient Sampling

    Sources of data- Commercial Customers of LPG in NCR

    Type of data- Primary and Secondary

    Data collection tool- Structured Questionnaire

    7. Major Finding Most of the Customers are planningto shift to PNG OF IGL.

    8. Recommendation Setting up of Effective Grievance Handling System

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    TABLE OF CONTENTS

    Topic Page Nos.

    Executive Summary 4

    Overview of the Industry 6

    Company Profile

    Products

    Services

    Indane (special mention)

    12

    1926

    Introduction to research topic 28

    Review the Literature 29

    Research methodology

    Define a problem

    Purpose or objectives

    Target population

    Sampling method

    Data collection method

    Limitations of the study

    31-32

    Data analysis 33-40

    Findings &Suggestions 41

    Conclusion 41

    References 42

    Appendix

    Questionnaires (for PNG & Commercial

    LPG customers)

    43-44

    OBJECTIVES OF THE STUDY

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    For any research study there has to be some objectives which canhighlight the purpose of doing the research work.

    PRIMARY OBJECTIVES

    To study the advantages and disadvantages of PNG.

    To study the market penetration of PNG.

    To finds the consumer preference of PNG.

    To study the comparative analysis of PNG and LPG.

    To find out the impact on profitability through shift of customers from LPGto PNG.

    GENERAL OBJECTIVES

    To get a flavor of Teamwork, Organizational culture, Team dynamics, resultorientation, organizational pressure, complexities in achieving desire result.

    To check my theoretical knowledge with comparison to the practical marketdemands.

    And at last but not the least for sharpen my career goals for a bright career

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    Introduction

    Overview of the Industry:

    The Indian oil and gas sector is one of the six core industries in India and has verysignificant forward linkages with the entire economy. India has been growing at 8-9

    per cent annually and is committed to accelerate the growth momentum in the years tocome. This would translate into India's energy needs growing many times in the yearsto come. Hence, there is an emphasized need for wider and more intensive exploration

    for new finds, more efficient and effective recovery, a more rational and optimallybalanced global price regime - as against the rather wide upward fluctuations of recen t

    times, and a spirit of equitable common benefit in global energy cooperation.

    Oil & Gas - Key Developments and Investments Energy giant Reliance Industries Ltd (RIL) is in full force to strengthen itsglobal leadership position through its ambitious US$ 11 billion-Jamnagar phasethree expansion project (popularly known as J-3 mega petrochemicals project).The company has approached international markets to raise funds for the same.

    Recently, RIL officials have signed a US$ 400 million-loan agreement withItalian finance group SACE Spa.

    State-run Indian Oil Corporation (IOC) plans to expand its pipeline network(from 10,900 km to 15,000 km) by investing Rs 7,700 crore (US$ 1.55 billion)

    by 2015. The company would lay more than 20 new pipel ines to materi al ize it sexpansion plan.

    Oil & Natural Gas Corporation (ONGC) and IOC are eyeing exploration andrefining opportunities in Sri Lanka as the island's Government would call for

    bi ds for seven oi l and gas blocks in Mannar Basin by June 2012. Both thecompanies are reported to have visited Sri Lanka to review the opportunities

    and discuss the prospect with concerned authorities

    After setting up two terminals on the western coast, Petronet LNG Ltd isplanning to set up its th ird terminal in the east coas t of India. The terminal ,with a 5 million tonne capacity, is projected to cost around Rs 4, 500 crore

    (US$ 902.9 million).

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    INTRODUCTION TO THE PROJECT

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    ABOUT LPG

    Liquefied petroleum gas is one of the most common and an alternative fuels used inthe world today. Liquefied petroleum gas is also called as LPG, LP Gas, or Autogas. The gas is a mixture of hydrocarbon gases used as a fuel for various purposes.

    This is mainly used in heating appliances and vehicles and is replacingchlorofluorocarbons as an aerosol propellant. It is also used as a refrigerant mainlyto reduce damage to the ozone layer.LP gas is a mainstay for cooking and heating in some areas of India and rural areasof the United States and the other parts of the world. LPG is also used as alternatefor petroleum and Diesel. The main reason behind this being the soaring in the

    prices of the oil, LPG has emerged as much preferred choice. LPG is a fossil fueland can be refined from oil and natural gas.LPG is basically a hydrocarbon with propane and butane as main constituent

    Properties of LPG

    LPG is twice as heavy as air and half as heavy as water.

    LPG is colourless and odourless; hence an odorant is used to detect leaks.

    LPG can be compressed at a ratio of 1:250, which enables it to be marked in

    portable containers in liquid form.

    LPG is safe fuel and ignites only within the specified LPG- Air ratio of 2% to9%.

    A high calorific value of 11,900 Kcal/Kg results in high efficiency heatoutput

    LPG As Cooking FuelLPG is a gas at normal temperature and pressure. The gas is compressed into aliquid by application of moderate pressure. This action of applying pressure reducesthe volume by approximately 240 times. When the pressure is released, which isdone by opening the cylinder valve, the liquid immediately becomes gas.The appliances that run on LPG are highly efficient. LPG is very clean gas and isalso quick, convenient and safe. It is cheaper than most other fuels except perhapskerosene but it does greatly outweigh the marginal extra cost. It is delivered by gas

    agency directly at home

    ADVANTAGES OF LPG

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    Uninterrupted supply

    PNG offers the convenience of ensuring continuous and adequate supply of

    PNG at all times, without any problem of storing gas in cylinders.

    Unmatched convenienceThe domestic consumers have to take upon themselves the trying task of

    booking an LPG cylinder refill, time and again. Then starts the wait for the

    deliveryman to deliver the cylinder. Switching over to PNG renders this

    entire exercise unnecessary. PNG also eliminates the tedious routine of

    checking LPG refill cylinder for any suspected leakage, or it being

    underweight, at the time of delivery.

    Safety

    The combustible mixture of natural gas and air does not ignite if the mixture

    is leaner than 5% and richer than 15% of the air-fuel ratio required for

    ignition. This narrow inflammability range makes PNG one of the safest fuels

    in the world.

    Billing

    The user is charged only for the amount of PNG used, and no pilferage is

    possible with PNG as the billing is done according to the meter. A unique

    feature is that the user gets to pay only after consumption of gas. Thedomestic consumer pays the PNG bill only once in four months.

    A versatile fuel

    Natural gas is being used predominantly as a versatile fuel in many major

    cities catering to domestic and commercial applications, as a cooking fuel, for

    water heating, space heating, air conditioning, etc.

    Environment friendly

    Natural gas is one of the cleanest burning fossil fuels, and helps improve thequality of air, especially when used in place of other more polluting energy

    sources.

    No daily liasioning

    The consumer is spared the task of liasioning with oil companies and co-

    ordinating with them for ensuring the daily supply of fuel, because PNG is

    supplied directly through pipes.

    The daily bills, settlements and reconciliation are also avoided as the

    consumer is billed once a month, and that too as per the meter reading.

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    No spillage and pilferage

    In case of fuels like LPG, there are considerable chances of spillage and

    pilferage. In case of PNG these losses are invariably done away with, for

    PNG is supplied through pipes.

    Billing - No up-front payment

    The user is charged only for the amount of PNG used, and no pilferage is

    possible with PNG as the billing is done according to the meter. The

    commercial consumer pays on a monthly basis.

    Lower maintenance cost

    With PNG, soot or ash accumulation and greasy spillages are absent from

    your appliance. Maintenance costs are, thus, driven down.

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    Company Profile

    INDIAN OIL CORPORATION LTD.

    HISTORY OF INDIAN OIL CORPORATION LTD.

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    The Indian Oil Corporation Ltd. operates as the largest company in India in terms of

    turnover and is the only Indian company to rank in the Fortune "Global 500" listing.

    The oil concern is administratively controlled by India's Ministry of Petroleum and

    Natural Gas, a government entity that owns just over 90 percent of the firm. Since

    1959, this refining, marketing, and international trading company served the Indian

    state with the important task of reducing India's dependence on foreign oil and thus

    conserving valuable foreign exchange. That changed in April 2002, however, when

    the Indian government deregulated its petroleum industry and ended Indian Oil's

    monopoly on crude oil imports. The firm owns and operates seven of the 17

    refineries in India, controlling nearly 40 percent of the country's refining capacity.

    1958

    Indian Refineries Ltd. formed in August with Mr Feroze Gandhi as the

    Chairman.

    1959

    Indian Oil Company Ltd. established on 30 th June 1959 with Mr S. Nijalingappa

    as the Chairman.

    1960

    Agreement for supply of Kerosene and Diesel signed with the then USSR.

    MV Uzhgorod carrying the first parcel of 11,390 tonnes of Diesel for

    IndianOil docked at Pir Pau Jetty in Mumbai on 17th August 1960.

    1962

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    Guwahati Refinery inaugurated by Pt. Jawaharlal Nehru, Honble Prime

    Minister of India.

    Construction of Barauni Refinery commenced.

    1963

    Foundation laid for Gujarat Refinery

    Indian Oil Blending Ltd. (a 50:50 Joint Venture with Mobil) formed.

    1964

    Indian Refineries Ltd. merged with Indian Oil Company with effect from 1st

    September, 1964, and Indian Oil Company renamed as Indian Oil Corporation

    Ltd.

    Barauni Refinery commissioned.

    The first petroleum product pipeline from Guwahati to Siliguri commissioned.

    1965

    Gujarat Refinery inaugurated by HE Dr. S.Radhakrishnan, President of India.Barauni-Kanpur product pipeline and Koyali- Ahmedabad product pipeline

    commissioned.

    IndianOil People maintained the vital supply of Petroleum products to

    Defence Services during Indo-Pak war.

    1967

    Haldia Barauni product pipeline commissioned. Bitumen and marinebunkering businesses commenced.

    1968

    Techno-economic studies for Haldia-Calcutta, Bombay-Pune and Bombay-

    Manmad Pipelines submitted to Government.

    1969

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    Marketing of Madras Refineries Ltd. products commences.

    1970

    Acquired 60% majority shares of IBP Co. Ltd. The same was offloaded infavor of the President of India in 1972.

    1971

    Dealership/reservation extended to war widows, disabled Defence personnel,

    freedom fighters, etc. for the first time after the Indo-Pak war.

    1972

    R&D Centre established at Faridabad.

    SERVO, the first indigenous lubricant, launched.

    1973

    Foundation-stone of Mathura Refinery laid by Mrs. Indira Gandhi, Honble

    Prime Minister of India.1974

    Indian Oil Blending Ltd. became the wholly-owned subsidiary.

    Marketing Division attained a new watershed with market participation of

    64.2%.

    1975

    Haldia Refinery commissioned. Multipurpose Distribution Centres

    introduced at 132 Retail Outlets pioneering rural convenience.

    1977

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    Nutan wick stove launched by R&D Centre.

    1978

    Phase-wise commissioning of Salaya-Mathura crude oil pipeline begins.

    1981

    Digboi Refinery and Assam Oil Company's (AOC) marketing operations

    vested in IndianOil and it became Assam Oil Division (AOD) of IndianOil.

    1982

    Mathura Refinery and Mathura-Jalandhar Pipeline commissioned.

    1983

    Massive augmentation of LPG storage and distribution facilities undertaken.

    Proposal for the 6 MMTPA Refinery at Karnal submitted.

    1984

    Taluka Kerosene Depots (TKDs) commissioned for improved availability of

    kerosene in rural and hilly areas in addition to Multipurpose

    DistributionCentres.

    Foreshore Terminal at Kandla Port commissioned.

    Integrated Corporate Planning a 10-year Perspective Plan and 5-year Long

    Range Plan initiated.

    1985

    New office complex for Registered Office of the Corporation and HeadOffice

    of Marketing Division in Mumbai completed.

    1986

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    A new Foreshore Terminal at Madras commissioned.

    1987

    Test marketing of 5 kg LPG cylinders begins in 1986-87 in Garo Hills andKumaon.

    1989

    Salaya-Mathura crude oil pipeline suitably modified for handling Bombay

    High Crude during winter.

    1990

    Kandla-Bhatinda product pipeline project approv

    First LPG Bottling Plant of Assam Oil Division (AOD) commissioned at

    Silchar.

    1991

    Digboi Refinery modernisation project initiated.

    Bunkering facility at Paradip commissioned.

    1993

    New era Micro-processor based Distributed Digital Control Systems

    replacing the pneumatic instrumentations began in refineries.

    1994

    India's first Hydrocracker commissioned at Gujarat Refinery. Vision-2000, the Retail Visual Identity programme launched to upgrade retail

    outlets.

    1995

    1,443 km. long Kandla-Bhatinda product pipeline commissioned.

    First lndane Home Shoppe launched.

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    1996

    State-of-the-art LPG Import Terminal at Kandla (capacity of 6,00,000 tonnes

    per annum) commissioned.

    First batch of one-year International MBA (iMBA) programme passes out of

    IndianOil Institute of Petroleum Management (IIPM).

    1997

    Business Development received renewed thrust with new functional group.

    Indian Oil enters into LNG business through Petronet LNG -a JV company.

    19981998

    Panipat Refinery was commissioned.

    Haldia, Barauni Crude Oil Pipeline (HBCPL) was completed.

    The Administrative Pricing Mechanism (APM) was withdrawn from the

    Refining Sector effective 1" April 1998. Phase-wise dismantling of APM began.

    19991999

    Indian Hydrocarbon Vision -2025" was announced at PETROTECH-99,

    organised by Indian Oil on behalf of the oil Industry.

    Diesel Hydro-desulphurisation Units commissioned at Gujarat, Panipat,

    Mathura and Haldia Refineries.

    Manthan -- the IT re-engineering project was launched.

    20002000

    Indian Oil crossed the turnover of the magical mark of Rs l ,00,000 Crore --

    the first Corporate in India to do so.

    Indian Oil entered into Exploration & Production (E&P) with the award of

    two exploration blocks to Indian Oil and ONGC consortium under NELP-1

    Y2K compatibility achieved.

    JNPT Terminal was commissioned.

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    20012001

    Digboi Refinery completed 100 years of continuous operation.

    Chennai Petroleum Corporation Ltd. (CPCL) and Bongaigaon Refinery and

    Petrochemicals Ltd. (BRPL) were acquired.

    Fluidised Catalytic Cracker Unit at Haldia Refinery was commissioned.

    Augmentation of Kandla-Bhatinda Pipeline (KBPL) to 8.8 MMTPA

    completed.

    Eight Exploration blocks awarded to the Indian Oilled consortium under

    NELP-II.20022002

    APM dismantled. Pricing of Petroleum products decontrolled.

    IBP Co. Ltd. was acquired with management control.

    Barauni Refinery expansion project completed.

    New generation auto fuels IOC Premium and Diesel Super introduced.

    20032003

    Lanka IOC Pvt. Ltd. (LIOC) launched in Sri Lanka.

    Retail operations began in Sri Lanka. Indian Oil became the first Indian Petroleum

    Company to begin downstream marketing operations in overseas market. Lanka

    IOC became an independent oil company in Sri Lanka

    Gasahol, 5% ethanol blended petrol, was introduced in select states.

    20042004

    Indian Oil turned a Gas marketer by sale of regasified LNG.

    Lanka IOC Pvt. Ltd. (LIOC) launched in Sri Lanka.

    Gasahol, 5% ethanol blended petrol, was introduced in select states.

    INDMAX unit at Guwahati Refinery commissioned.

    Maiden LPG supplies to Port Blair.

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    20052005

    The year marked Indian Oil's big ticket entry into the high stakes business of

    E&P.

    Indian Oil's Mathura Refinerywas the first refinery in India to attain the

    capability of producing entire quantity of Euro-III compliant diesel by

    commissioning the Rs 1046 crore DHDT (Diesel hydrotreating unit).

    Indian Oil breached the Rs 150, 000 crore mark in sales turnover by

    clocking Rs 150, 677 in turnover in fiscal 2004.

    Indian Oil signed a JV agreement with GAIL to enter the city gas

    distribution projects in Agra and Lucknow.

    Indian Oil allowed by Government of India to charter crude oil ships on its

    own instead of going through Transchart, the chartering wing of the

    Ministry of Shipping.

    2006

    Panipat Refinery capacity enhanced from 9 to 12 MMTPA

    World-scale Paraxylene/Purified Terephthalic Acid (PX/PTA) plant

    commissioned at Panipat as mother plant for polyester industry

    Chennai-Trichy-Madurai product pipeline dedicated to the nation.

    2007

    Marketing subsidiary IBP Co. Ltd. merged with parent company.

    Concept ofSERVOXpress Centres as one-stop shops for autocare services

    launched.

    Lanka IOC commissions Lube Blending Plant and laboratory for testing

    fuels and lubricants at Trincomalee

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    Concept of LNG at the doorstep launched for customers located away from

    gas pipelines

    2008

    SERVO lubricants launched in Oman.

    IndianOil Chairman elected as President of World LP Gas Association.

    Introduction to the Organization

    IndianOil is India's flagship national oil company with business interest straddlingthe entire hydrocarbon value chain from refining, pipeline transportation andmarketing of petroleum products to natural gas and petrochemicals. It is the leadingIndian corporate in the Fortune 'Global 500' listing, ranked at 83 by sales turnover

    for the year 2011.

    IndianOil and its subsidiaries have a dominant share of the petroleum productsMarket, national refining capacity and downstream sector pipelines capacity inIndia. With over a 34,000-strong workforce, IndianOil has been helping meetIndias energy demands for over five decades now. At IndianOil, operations areStrategically structured along business verticals - Refineries, Pipelines,Marketing,R&D and Business Development - E&P, Petrochemicals and NaturalGas.

    IndianOil controls 10 of Indias 20 refineries with a group refining capacity of65.7MMTPA. Its cross-country network of crude oil, product and gas pipelines,Spanning 10,899 km with a capacity of 75.2 MMTPA, is the largest in the country.With a throughput of 68.5 million tonnes, it meets the vital energy needs oftheconsumers in an efficient and environment-friendly manner.

    IndianOil has a formidable network of customer touch-points dotting theLandscapeacross urban and rural India. With a countrywide network of salesPoints, backed forsupplies by bulk storage terminals and depots, aviation fuelStations and LPGas

    bottling plants, IndianOil services every nook and corner of thecountry, every hourof the day. Indane LPGas is present in almost all marketsthrough a vast network ofdistributors. A large network of consumer pumps is alsoin operation for theconvenience of bulk consumers, ensuring products andinventory at their doorstep.

    IndianOil has a portfolio of powerful and much-loved energy brands that includeIndane LPG, SERVO lubricants, XtraPremium petrol, XtraMile diesel,Propelpetrochemicals etc. Validating the trust of millions of motorists, IndianOil

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    hasbeen voted the Most Trusted petrol station brand in the country for the year2010-11.IndianOil's ISO-9002 certified Aviation Service commands the largestmarketshare in the aviation fuel business, successfully servicing the demandsofdomestic and international flag carriers, private airlines and the Indian

    DefenseServices. The Corporation also enjoys a dominant share of the bulkconsumer,industrial, agricultural and marine sectors.With a steady aim of maintaining its position as a market leader and providing

    bestquality products and services, IndianOil is investing over ` 47,000 crore in ahostof projects for augmentation of refining and pipeline capacities, expansionofmarketing infrastructure and product quality up gradation.

    IndianOil has a world-class R&D Centre that is the finest in Asia. It conductsPioneering work in lubricants formulation, refinery processes,pipelineTransportation and alternative fuels. The Centre holds 212 active patents,with over100 international patents.

    Having set up subsidiaries in Sri Lanka, Mauritius and theUnited Arab Emirates(UAE), IndianOil is simultaneouslyscouting for new business opportunities in theenergymarkets of Asia and Africa. Indian Oils businessDevelopment initiativescontinue to be guided by itscorporate vision of becoming a diversified,transnationaland integrated energy company. Its business strategyfocuses primarily

    on expansion across the hydrocarbon value chain, both withinand outside thecountry.

    Over the years, natural gas has emerged as the 'fuel of choice' across the world.Naturalgas marketing is another thrust area for IndianOil with special focus on CityGasDistribution (CGD) business. The Corporation has entered into franchiseagreementswith several CGD players to market Compressed Natural Gas through itsretail outlets.Green Gas Ltd., IndianOil's joint venture with GAIL (India) Ltd., isalready operational inAgra and Lucknow in the state of Uttar Pradesh and is

    furtherexpanding to cater to the increased demand in various sectors.

    IndianOil has a concerted social responsibility programme to partnercommunitiesfor health, family welfare, education, environment protection,

    providing potablewater, sanitation, and empowerment of women and othermarginalized groups.IndianOil has always been at the forefront in times of nationalemergencies.IndianOilPeople have time and again rallied to help victims of naturalcalamities, maintaining uninterrupted supply of petroleum products andcontributing to reliefand rehabilitation measures. IndianOil has successfully

    combined its corporatesocial responsibility agenda with its business offerings,meeting the energy needsof millions of people every day, across the length and

    breadth of the country.

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    Mission, Vision & Values of Indian Oil

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    ORGANIZATIONAL STRUCTURE OF IOCL:

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    LIST OF KEY MANAGEMENT PERSONNEL

    R S Butola CHAIRMANDR R K MALHOTRA Director ( Research & Development)

    SUDHIR BHALLA Director (Human Resources)

    A M K Sinha Director (Planning & Business Development)

    P K Goyal Director (Finance)

    R K Ghosh Director (Refineries)

    Makrand Nene Director (Marketing)

    V S Okhde Director (Pipelines)

    Sudhir Bhargava Additional SecretaryMinistry of Petroleum & Natural Gas

    Anees Noorani Managing Director

    Zodiac Clothing Company Ltd.

    Michael Bastian Former Chairman & Managing Director,Syndicate Bank

    Dr.(Mrs.) Indu Shahani Principal, HR College of Commerce &Economics,Mumbai and Sheriff of Mumbai

    Prof. Gautam Barua Director,Indian Institute of Technology,Guwahati

    N K Poddar Senior Advocate,Kolkata

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    CURRENT SALES

    Indian Oil Corporation Ltd. is Indias 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 listings, ranked at

    the 83rd position.

    PRODUCTS MIX/ PROFILE OF IOCL

    The Products produced by IOCL are broadly classified into the following cases:

    Class A:

    1. Liquid Petroleum Gas (L.P.G)

    Class B:

    2. Motor Spirit (M.S.)/Gasoline

    3. Super Kerosene Oil (S.K.O)

    4. High Speed Diesel Oil (H.S.D)

    Class C :

    5. High Speed Diesel Oil (H.S.D)

    6. Furnace Oil (F.O.)

    7. Bitumen

    8. Naphtha

    9. Aviation Turbine Fuel (A.T.F)

    Class D :

    10.Mineral Turpentine Oil (M.T.O)

    11.Jute Batching Oil (J.B.O)

    12.Light Diesel Oil (L.D.O)

    13.Unleaded petroleum

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    Indraprastha GasLtd.

    SWOT ANALYSIS OF INDIAN OIL

    STRENGTHS

    HIGH FOREIGN EXCHANGE DEBT.

    IOCL has managed to significantly cut its borrowing cost due to high share of

    foreign exchange debt. Its share of foreign exchange borrowings is increasing with

    foreign exchange loans crossing 50% of its total debt compared to 42% at the end of

    the last financial year.

    HIGHEST MARKET SHARE

    As India's flagship national oil company, Indian Oil accounts for 56% petroleum

    products market share, 42% national refining capacity and 67% downstream

    pipeline throughput capacity.

    EXPERTISE IN OIL & GAS INDUSTRY

    Indian Oil is one of the leaders in providing engineering, construction and

    consultancy services to the pipeline industry. Highly qualified professionals with

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    vast experience execute pipeline projects from concept to commissioning and

    provide services for construction supervision and project management.

    FOREIGN SUBSIDIARIES AND JOINT VENTURES

    Indian Oil is strengthening its existing overseas marketing ventures and

    simultaneously scouting new opportunities for marketing and export of petroleum

    products in foreign markets. Two wholly owned subsidiaries are already operational

    in Sri Lanka and Mauritius, and regional offices at Dubai and Kuala Lumpur are

    coordinating expansion of business activities in Middle East and South East Asia

    regions.

    WEAKNESS

    STRINGENT CORPORATE POLICIES

    The decisions relating to administration are taken at the corporate level. Even minor

    proposals are to be referred to the top management. This leads to a delay in

    decision-making.

    LACK OF MARKETING EFFORTS

    Among the public sector oil companies, Indian Oil Corporation is the only one to

    follow a weak marketing strategy. It in only in the recent years that the company

    has started to market its products. However, still the efforts seem to be weak when

    compared with the competitors like BPCL and HPCL.

    PROMOTION POLICY

    Most of the public sector companies seem to suffer from these lacunae. Theemployees are promoted mainly on the basis of experience and not on the efforts

    and initiatives displayed by the employee in his work. This results in demotivation

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    and lack of interest for their work on the part of the hardworking employees, who

    then tend to shift jobs to satisfy their need for self-esteem.

    TENDER PROCESS

    The policy of selection of the lowest bidder tends to affect the quality of the

    products/services on some occasions. A more simplistic procedure is also likely to

    generate some savings for the company, since tendering process leads to expenses

    on account of advertisement.

    OPPORTUNITIES

    Exploration and Production

    Indian Oil is metamorphosing from a pure sector company with dominance in

    downstream in India to a vertically integrated, transnational energy behemoth. The

    Corporation is making investments in E&P and import/marketing ventures for oil

    and gas in India and abroad, and is implementing a master plan to emerge as a

    major player in petrochemicals by integrating its core refining business with

    petrochemical activities.

    THREATS

    Entry of Big Private players

    The opening up of the oil sector for private players poses a threat even for this well-

    established company. With Indian players like Reliance and Essar and foreign

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    players like Shell planning their entry into the Indian scenario, the road seems to be

    tough for Indian Oil.

    RESEARCH METHODOLOGY

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    RESEARCH OBJECTIVES :

    1. Market Attractiveness Evaluation:o Competitive presence and customer preference.

    o Customer spending patterns, budget cycles, and intent.

    o Channel trends, preferences.

    2. Customer Insight: Specific customer needs, aspirations, buying behaviors,usage patterns, decision models, preferences, favorability, intentions,etc.

    3. Competitive Forces: Current and potential basis of competition in amarket.

    4. Communications Planning: What information sources do prospectivecustomers pay attention to, how to reach them, opportunities / vehiclesfor influencing target customers and which are most effective.

    RESEARCH DESIGN

    Exploratory experimental Research.

    The research is primarily both exploratory in nature. The sources of information are

    both primary & secondary.

    Sample Unit

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    amount of time as the respondents is quick enough to choose from among the

    options given to him.

    Secondary data:

    Different published and unpublished (only online) materials basically articles from

    the internet have been focused on.

    Companys annual reports

    Companys journal and magazines

    Companys website

    Companys leaflets

    Companys pamphlets

    Products and sales report

    Data Analysis:

    The following graphs and table are basically a representation of the respondents in

    the form of questionnaire being filled by them. The number and percentage wise

    distribution is shown below and also separate analysis of the graphs has been shown

    therewith.

    DATA ANALYSIS AND INTERPRETATION

    Q1.Showing the response of respondents regarding the preference

    for a particular OilMarketing Company for fuel purchase

    SL. NO. Response NO. Of Responden

    ts

    Percentage(%)

    1. Yes 174 87%2. No 26 13%

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    INTERPRETATION:

    From the above analysis it is found that 87% of the respondents prefer fuel From Indian Oil whereas

    13% respondents purchase fuel from different companies.

    2. Showing the response of respondents regarding the preference

    Of INDIAN OIL in comparison to others

    SL. NO. Response NO. Of Respondents

    Percentage(%)

    1 IOCL 98 49%

    2 BPCL 66 33%

    3 HPCL 24 12%

    4 IGL, Others 12 6%

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    INTERPRETATION:

    According to the survey conducted, it has been observed that 49% of the respondents

    prefer INDIAN OIL for the purpose of purchasing fuel which is followed by BPCL (33%) and

    HPCL (12%). Even 6% of the respondents prefer companies like IGL.

    3. Showing the response of respondents about the convenience of PNG

    ascompared to LPG.

    SL. NO. Respons

    1 AGREE

    2 DISGARE

    3 NEUTRA

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    INTERPRETATION:

    The above analysis shows that 76% of the respondents are satisfied with the working of PNG and

    3% of the respondents do not agree with it. Whereas 21% of the respondents said that they do not

    find any difference between the two.

    6. Showing the response of respondents regarding the problem of leakage.

    SL.NO Response No. Of

    Respondents

    Percentage

    (%)1. PNG 12 6%

    2. LPG 188 94%

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    INTERPRETATION:

    According to the survey conducted 94% of the respondents say that the problem of

    leakagemostly occurs with LPG due to several reasons like defective cylinder which creates

    risk andalso injures people.

    7. Showing the response of respondents that whether PNG reduces thechances of accidents.

    SL.NO Response No. Of

    Respondents

    Percentage

    (%)1. AGREE 174 87%

    2. DISAGREE 22 11%3. NEUTRAL 4 2%

    INTERPRETATION:

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    INTERPRETATION:

    According to the above analysis 89% of the respondents say that PNG reduces the tedious task of

    booking a cylinder whereas 11% of the respondents do not find booking a cylinder as a tedious task.

    9. Showing the response of respondents that whether there exists any kindof pilferage as far as

    billing is concerned.

    SL.NO Response No. Of

    Respondents

    Percentage

    (%)1. AGREE 108 54%

    2. DISAGREE 92 46%

    INTERPRETATION:

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    The above analysis shows that 54% of the respondents say that there exists problem in the case of

    PNG while billing is done whereas 46% of the respondents say that there does not exist any kind of

    pilferage as far as billing is concerned.

    .

    10. Showing the response of respondents regarding uninterrupted supply of gas without

    inconvenience

    SL.NO Response No. Of

    Respondents

    Percentage

    (%)1. YES 136 68%

    2. NO 64 32%

    INTERPRETATION:

    According to the above analysis 68% of the respondents say that there is an uninterrupted supply of

    gas when they use PNG whereas 32% do not agree with the same .

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    FINDINGS OF THE STUDY

    On the basis of Primary data analysis:

    I surveyed 200 respondents as in total and on the basis of the questionnaires

    being filled by them, I can say that:

    Around 87% of the respondents prefer a particular Oil MarketingCompany i.e Indian Oil for purchasing fuel.

    Amongst all the competitors BPCL is the biggest threat for IOCLfollowed by HPCL.

    It has been observed that majority of the respondents (62%) find PNG

    more convenient than LPG.

    Around 74% of the respondents find PNG more economical as comparedto LPG.

    More than 3/4th of the people that is 76% people are satisfied with theworking of PNG.

    Maximum respondents i.e. 94% people say that the problem of leakage

    occurs mostly in the case of LPG.

    87% of the people surveyed agreed that PNG reduces the chances ofaccidents.

    Around 89% people feel that PNG reduces the tedious task of booking anLPG cylinder.

    Almost half of the people disagree that there exists any kind of pilferage asfar as billing is concerned.

    68% of the respondents said that there is uninterrupted supply of gas without

    inconvenience in case of PNG.

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    PROBLEMS/LIMITATIONS OF RESEARCH

    a. Lack of Training: The lack of scientific training in the methodology of research is a

    great handicap during research.

    b.Repetition: Research studies overlapping one another are undertaken quite often for

    want of adequate information.

    c. Lack of Resources: For conducting a quality researchAdequate funds are not provided.

    g. Lack of Coordination: There exists lack of coordination among various agencies

    responsible for conducting research.

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    APPENDIX

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    Questionnaires for Customers

    Basic Details

    Name -

    Contacts-

    Address-

    1) Till when you used LPG?

    2)What is your consumption in kg/month?

    3)Which type of cylinders you used?

    a) LOT b) VOT

    4) What was the capacity?

    a) 14.2kg b) 19 kg c) 47.5kg

    5)What was your consumption of total cylinders per month?

    6) What were the reasons for shifting to PNG from LPG?

    7)Advantages & disadvantages w.r.t to LPG?

    8)Who are your service providers?

    9)What is the price you pay and discount you get?

    10) Is customer aware of setting of Pipelines in his/her Area?

    10)Problems faced (if any) & suggestions?

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    BIBLIOGRAPHY

    Books:

    Kothari, C.R.,Research Methodology Sultan Chand Publication, New

    Delhi, 2004.

    T.N. Chhabra, Marketing Management

    Philip Kotler, Marketing Management -Kevin Lane Keller.

    Web Pages:

    http://www.iocl.com/aboutus.aspx

    http://www.lpg.in/index.html

    http://en.wikipedia.org/wiki/Pipeline_transport

    http://www.iglonline.net/BenefitsPNG.aspx http://www.iglonline.net/AboutPNG.aspx

    http://www.iocl.com/aboutus.aspxhttp://www.lpg.in/index.htmlhttp://www.lpg.in/index.htmlhttp://en.wikipedia.org/wiki/Pipeline_transporthttp://www.iglonline.net/BenefitsPNG.aspxhttp://www.iglonline.net/AboutPNG.aspxhttp://www.iocl.com/aboutus.aspxhttp://www.lpg.in/index.htmlhttp://en.wikipedia.org/wiki/Pipeline_transporthttp://www.iglonline.net/BenefitsPNG.aspxhttp://www.iglonline.net/AboutPNG.aspx