indian oil.docx

7/27/2019 indian oil.docx

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The Indian Petroleum IndustryThe Petroleum industry in India stands out as an example of the strides made by the

country in its march towards economic self-reliance. At the time of independence in

1947, international companies controlled the industry. Today, a little over 50 years

later, the industry is largely in the public domain with skills and technical know-how

comparable to the highest international standards. The testimony of its vigour and

success during the past five and half decades is the significant increase in crude oil

production from 0.25 to 0.33 million tonnes per annum and refining capacity from 0.3

to 103 million metric tonnes per annum. The consumption of petroleum products has

grown 30 times in the last 50 years from 3 million tonnes during 1948-49 to about

107.7 million tonnes in 2003-04, an increase of 3.5% over 104.1 million tonnes

registered in 2002-03. A vast network of over 29,000 dealerships and distributorships

has been developed backed by over 400 storage points over the years to serve the

people even in the remote and once-inaccessible areas.

Oil production & consumption in India(Million tons)2006 2007 2008 2009 2010

Crude oil production 32.9 33.9 32.7 32 32.5

Crude oil consumption 62.9 65.2 68.5 86 103.5

Deficit (Met by Imports) (33.9) (34.5) (39.8) (54.0) (71.0)


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In order to understand the level of Indian demand for petroleum products in a global

perspective, the following table furnishes a comparison of per capita consumption of

petroleum products in the various parts of the world.

(Kilograms per annum)

* India 98

* China 165

* North America 2,610

* World average 585

With the per capita consumption level in India being only about 60% of that in

China, a strong growth potential exists in India, given particularly a large population

base of over a billion.

GrowthIn the 50 years since independence India has witnesses a significant growth in the

refining facilities and increase in the number of refineries from one to eighteen now.

The first decade of Independence (1947-57) saw the establishment of three costal

refineries by multinational oil companies operating in India at that time, viz. Burmah

Shell, Esso Stanvac and Caltex; the first two at Mumbai and the third at

Vishakhapatnam. A major boost to the oil industry came in pursuance of the

Industrial Policy Resolution, 1956 that intended to promote growth of the vital

sectors such as petroleum under the State control. ONGC, which was formed a

Directorate in 1955, became a Commission in 1956.


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The second decade (1957-67) witnessed the setting up of the Indian Refineries Ltd. in

1985, a wholly owned public sector Government Company. Under its banner three

refineries were set up at Guwahati (Assam), Barauni (Bihar) and Koyali (Gujarat)

essentially to process the indigenous crude discovered in Assam and Gujarat. In 1959,

the Indian Oil Company (INDIANOIL), again a wholly owned Government company,

was formed for marketing of petroleum products. Indian Refineries Ltd. was merged

with Indian Oil Company Ltd. to form Indian Oil Corporation Ltd. on 1st September

1964.

The next ten years period (1967-77) witnessed the establishment of two refineries,

one with equity participation from America and Iranian companies at Chennai and

another in the public sector at Haldia by Indian Oil.

The Period 1977-87 saw the commissioning of two more refineries in the public

sector. The refinery at Bongaigaon was the first experiment in having an integrated

petroleum refinery-cum-petrochemicals unit. The other refinery was set up at

Mathura in 1982. Major expansions of the coastal refineries at Mumbai, Cochin,

Chennai and Vishakhapatnam were also completed during this period. The notable

feature of the capacity additions during this decade have been the extensive

utilization of the process design capabilities of M/s. Engineers India Ltd. and

installation of Secondary Processing Facilities to increase the production of much

required kerosene, diesel and LPG.

During the fifth decade (1987-97), a small refinery of 0.5 MMTpa (Million metric

tonnes per annum) at Nagapatinnam was built in Tamil Nadu. It is based on crude

from adjoining fields. In 1996, a MMTpa refinery was built in the joint sector at

Mangalore between HPCL and Indian Rayon. This decade also saw significant


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expansion to the capacities of the existing refineries, thereby raising the refining

capacity to about 62 MMTpa.

However, the production of crude oil increased to over 35 million tonnes per annum

in the year 1997-98. This represents only less than 50% of countrys requirement of

petroleum. The balance had to be made good by imports putting our foreign

exchange to a great strain. Considering the ever-growing demand of petroleum at the

rate of about 7% per annum, and the dwindling reliance on indigenous production of

oil and natural gas, the Government of India, in 1991 decided to open up the

exploration and production of oil and natural gas to the private sector.

The ministry of petroleum invited bids from the private parties / consortiums, in a

number of bidding rounds. Consequently, as many as 21 small oil-gas fields and more

than a dozen exploration blocks were awarded to private parties, for exploration and

production work. It was also decided by government to import Liquefied Natural

Gas, to meet the ever-growing requirement of natural gas in the country. The

government also decided to open up oil exploration in the deeper continental shelf by

private parties.

With the setting up of Panipat Refinery in 1999-2000, there are 18 refineries

operating in the country, 15 in the public sector, one in the joint sector and one in the

private sector, with an installed capacity of 102 million metric tonnes per annum. The

year 2003-04 saw important developments in Government policy as well a concerted

efforts by individual companies to align their plans and progress with the free market

scenario.

On the disinvestments front, the Government of India successfully sold 10% of its

equity in Oil & Natural Gas Corporation Ltd.(ONGC) and GAIL (India) Ltd. during


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the year. The Government also sold its residual equity of 26% in IBP Co. Ltd.

through public offer. Earlier in 2002, IndianOil had acquired 33.58% of Government

of Indias equity in IBP through competitive bidding process, and thereafter acquired

another 20% through open offer to the public.

In the upstream sector, the Government of India signed 20 contracts for oil & gas

exploration under the fourth round of New Exploration Licensing Policy (NELP) and

eight contracts under the second round of the Coal Bed Methane (CBM) Policy.

Significant hydrocarbon discoveries in the blocks awarded earlier enhanced the

prospects of finding more oil & gas reserves in the country. For enhancing the

countrys oil security, the Government decided to set up 5 million tonnes of strategic

crude oil storage in the country at Mangalore and Vishakhapatnam, which will be

built and operated by IndianOil.

Threats:Towards end of the year, the major concern of the petroleum industry was the rising

cost of crude oil. While the uprising in gross refining margins helped improve the

bottom line, Indian refiners were severely impacted by the ever-rising and fluctuation

price of crude oil and products in the international market. Since our country is still

dependent on imports to the extent of 70% of its requirement, we shall continue to be

subject to volatility in the international prices of oil. The strengthening of the Indian

Rupee against the US Dollar helped limit the impact partially. Concerted steps taken

by the Government to augment indigenous production through the NELP rounds, and

encouragement to Indian companies in acquiring equity oil and gas abroad, are

therefore steps in the right direction


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Introduction:Petroleum is one of the most valuable natural resource in the world. Some people call

it as Black Gold, but it may be better described as the Life Blood of Industrialised

Countries.

The Indian oil sector is in the threshold of major changes. The Government of India

had already decanalised some products like Furnace Oil, Aviation Turbine Fuel etc

and also trying to decontrol High Speed Diesel, Motor Spirit, Liquefied Petroleum

Gas, Superior Kerosene Oil etc in the near future. In spite of Government regulations

there exists an intense competition among the existing oil companies. The flexibility

of grabbing more market share will intensify after decontrol of these products from

the Government.

Consumption of Petroleum products is an index of a countrys development,

industrialisation and economic well-being. From an annual consumption of less than

3 Million Tonnes in 1948-1949 Indias Petroleum products consumption has grown to

107.7 Million Tonnes in 2003-2004. It shows the growth rate of Petroleum Industry

in the country in the post independence period.

In order to protect national interest, the Government of India decided to establish a

nationally owned and controlled Oil Industry in the India under the Ministry of

Petroleum and Natural Gas.


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IndianOil Corporation as an idea was born out of the Industrial Policy Resolution of

1956 and since then has emerged as one of the largest and leading corporations in the

world.

Indian Oil Corporation Limited (INDIAN OIL) is the 18th largest Petroleum Companyin the World. INDIAN OIL is ranked 153rd among the 500 largest companies in the

world. (as per the Fortune Listing). It is the only Public Sector Undertaking among

Indias Top 10 Companies listed by the Far Eastern Economic Review in 2004.

Indian Oil has also been adjudged No.1 in petroleum trading among the national oil

companies in the Asia-Pacific region.

In another major feat, Indian Oil was ranked among the top 10 Best Employers in

India2004 in a joint survey conducted by Business Today and Hewitt Associates

across 220 organizations.

For 15th consecutive year, Indian Oil earned Excellent rating for its performance in

its MOU with the Government of India for the year 2003-04.

Indian Oil started with a sales turnover of Rs. 109 crores and a profit of 1 crore in

1964-65. In the year 2005-06 INDIAN OIL has achieved a sales turnover of

Rs.1,83,204/-crores (profits of Rs. 4,915 crores for 2005-06). The total sales volume

(inclusive of export sales) increased from 47.56MMT in 2002-03 to 48.61MMT in

2003-04, registering a growth of 2.2 %. The Corporation recorded the highest ever

Profit Before Tax of Rs.9,691 crore (Rs.2,686 crore tax) during 2003-04 as against

Rs.8,414 crore (Rs. 2,299 crore Tax) in 2002-03, registering a growth of 15.2 %. The

Profit before tax for the year ending 2005-06 was 6,706/-crores.


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Indian Oil deals with various petroleum products. The Companies main products are:

1. Fuel and Feedstock

2. Lubes and Greases

3. Petrochemicals and specialties

4. Liquefied Petroleum Gas / LPG

5. Motor Spirit / Gasoline

6. Superior Kerosene Oil / Kero

7. High Speed Diesel / Gas Oil

8. Aviation Turbine Fuel / Jet Kero

9. Lubricants

HistoryIn the late 1950s Indian oil industry was dominated by three Multi national

Companies, viz., Shell, Esso and Caltex. The country was dependant on refined

petroleum products imported into the country by these companies.

In the year 1956, Parliament passed an Industrial Policy Resolution bringing Oil

under the purview of the State sector as a step to bring all the industries of basic and

strategic importance into the Public Sector.

In 1958, a Public Sector Company called Indian Refineries Limited was set up,

followed by a marketing organisation called Indian Oil Company Limited In 1959. By

September 1964 both these companies were merged and Indian Oil Corporation was

formed.


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In 1970, the Multinational Oil Companies were nationalized and this led to the

emergence of Bharat Petroleum Corporation Limited (BPCL) (from Shell) and

Hindustan Petroleum Corporation Limited (HPCL) (from Esso and Caltex). Apart

from this Government also formed Indo-Burma Petroleum (IBP) Limited. While the

three oil majors have their own refineries, IBP relied only on marketing. Later Assam

Oil Company was merged with INDIAN OIL, and a separate division known as Assam

Oil Division (of INDIAN OIL) was formed.

Apart from this other public and private sector companies like Madras Refineries

Limited, Cochin Refineries Limited, Bongaigaon Refineries and Petrochemicals

Limited, IPCL, Reliance Petroleum, Essar Oil Limited also entered the market at later

stages. Initially they were not given any marketing rights for the controlled oil

products but could refine crude oil and sell through the nationalized oil companies.

But, after the withdrawal of Administered Pricing Mechanism (APM), (in 2002) these

oil companies were allowed to sell these decontrolled products through the Retail

Outlets or by bulk to direct customers.

Indian Oil holds over 33% of the country's refining share (42%, if the capacity of

recently acquired subsidiaries is also added). All refinery units are accredited with

ISO 9002 and ISO 14001 certifications. Its Mathura refinery is the first refinery in

Asia and the third in the world to earn the British Standard (BS: 7750) and ISO-14001

certifications in environmental management.


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The refinery network is presented with its installed refining capacity:

IndianOil Refineries: Installed Capacities

(In MMTPA)

RefineryAs on

1.4.2006

As on

1.4.2007

As on

1.4.2008

As on

1.4.2009

As on

1.4.2010

As on

1.4. 2011

IOC

IOC- Guwahati 1.0 1.0 1.0 1.0 1.0 1.0

IOC- Barauni 3.3 4.2 4.2 6.0 6.0 6.0

IOC- Koyali 13.0 13.7 13.7 13.7 13.7 13.7

IOC- Haldia 4.6 4.6 4.6 4.6 6.0 6.0

IOC- Mathura 7.5 8.0 8.0 8.0 8.0 8.00

IOC- Digboi 0.65 0.65 0.65 0.65 0.65 0.65

IOC- Panipat 6.0 6.0 6.0 6.0 6.0 6.0

Sub-Total IOC 36.05 38.15 38.15 39.95 41.35 41.35

IOC Subsidiaries

CPCL- Chennai 6.5 6.5 6.5 6.5 9.5 9.5

CPCL-Narimanam

0.50 0.50 0.50 1.0 1.0 1.0

BRPL-Bongaigaon

2.35 2.35 2.35 2.35 2.35 2.35

Sub-Total IOCSubisdiaries

9.35 9.35 9.35 9.85 12.85 12.85

IOC-Total(With-Subsidiaries)

45.40 47.50 47.50 49.80 54.20 54.20


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Indian Oil holds over 33% of the country's refining share (42%, if the capacity of

recently acquired subsidiaries is also added). All refinery units are accredited with

ISO 9002 and ISO 14001 certifications. Its Mathura refinery is the first refinery in

Asia and the third in the world to earn the British Standard (BS: 7750) and ISO-14001

certifications in environmental management. The refinery network is presented

below with its installed refining capacity.

The Indian Oil group of companies owns and operates 10 out of 18 Oil refineries in

the country with a current combined rated capacity of 57.80 million metric tonnes

per annum (MMTPA) or one million barrels per day (bpd). These include two

refineries of subsidiary Chennai Petroleum Corporation Limited and Bongaigaon

Refinery & Petrochemicals limited to increase its refining capacity . These are

located at Guwahati and Digboi (Assam), Barauni (Bihar), Koyali (Baroda,Gujarat),

Haldia (West Bengal), Mathura (Uttar Pradesh) and Panipat (Haryana). Continuous

innovation and up gradation of technology have resulted in high efficiency and

optimum capacity utilization.

With sales of 49.61 Million Tonnes in 2005-06, Indian Oil holds over 51.2 % of

Market share. (with the acquisition of IBP it holds around 60 % of the market in

India)

The Corporations employee strength as on March 31, 2006 was 30,801, including

10,437 officers. There are 2,406 women employees including 775 officers,

constituting 7.8% of the total manpower. These employees are engaged in Crude Oil

Refining, Pipeline Transportation and Marketing of Petroleum Products. It is the sole

canalizing agency for the import and export of Crude Oil and Finished Petroleum

products.


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INDIAN OIL has five divisions:

1) Refineries Division

2) Pipelines Division

3) Marketing Division

4) Research and Development Division and

5) Assam Oil division.

As the name suggests Refineries division is into refining of imported and local crude

which is available in India. In maximum cases it crosses the installed capacity

utilization. Research and development division is into developing new lubes and lube

formulations required for the current market. From its inception it has formulated

more than 2000 lube formulations. Assam Oil division is into refining and also

marketing of oil products in the northeast part of India.

The marketing division has its Head Office at Mumbai. It controls a network of over

22,000 sales points spread over India (the largest in the country). These include Retail

Outlets of MS/HSD, SKO/LDO dealers, LPG distributors, SERVO shops etc.

INDIAN OIL constantly strives to develop its nationwide pipeline network. It

transports Crude Oil and Finished Products through over 7,575 kms of Cross-country

pipelines (countrys largest network). It keeps abreast of the latest technology when

laying new systems and inducts the same into existing systems too.

Twelve Joint ventures are now operational in partnership with leading companies like

Mobil and Lubrizol Corporation (USA), Oil tanking GmbH (Germany), Petronas

(Malaysia), Marubeni (Japan), Bharat Petroleum Corporation Limited (BPCL), Oil and

Natural Gas Corporation Limited (ONGC), IBP, Reliance Petroleum Limited (RPL),

Essar Oil Limited (EOL), Gas Authority of India Limited (GAIL) etc of India.


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In addition to products refined at its own plants, INDIAN OIL also markets the

products refined by the following refineries :

i. Madras Refineries Limited

ii. Reliance Petroleum Limited

iii. Cochin Refineries Limited

iv. Bongaigaon Refineries & Petrochemicals Limited.

The famous Brands under Indian Oil

Indian Oil's branded fuels XtraMile andXtraPremium have made a significant impact in the petroleum retail market.

XtraMile, Indian Oil's new generation High Speed Diesel with world-class additives

has taken a leadership position in the market.

The launch of premium fuels - XtraPremium and XtraMile (originally IOC Premium

and Diesel Super respectively), marks a new beginning for Indian Oil and its

customers. XtraPremium is, in fact, the only petrol in India with 91 Octane and doped

with Multifunctional Additives. The maiden launch of these branded fuels took place

in Delhi on Sept. 24, 2002. Subsequently, XtraPremiuem sales have been extended to

200 cities and 750 petrol & diesel stations, and XtraMile to 850 cities and 1750 petrol

and diesel stations by the end of


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SERVO is India's largest selling lubricant brand.SERVO ranges of lubricants enjoy approvals from major Original Equipment

Manufacturers (OEMs) including new generation cars. 9,000 Retail Outlets and a

countrywide network of SERVO SSls and SSAs Bazaar traders offer servo range of

lubricants to customers.

The Servorange of lubricants is used in almost every application covering automotive,industrial and marine sectors. Servo range of lubricants is fast emerging as a Global

Brand. Servohas been designated as a superbrand.Servo has genuine oil tie ups with awide range of companies like Hyundai, Maruti, Bajaj, Lancer. Anil Kumble, the ever

dependable sporting icon is servo Brand Ambassador.

Developed exclusively at IndianOil's world-class R&D Centre at Faridabad, there is a

Servo lubricant for virtually every single application. With over 42% market share

and 450 grades, the country's leading Servo brand lubricants from IndianOil are sold

through over 8,100 IndianOil petrol/diesel stations, over 1,300 Servo Shops and a

countrywide network of bazaar traders.


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IndianOil Indane LPGas is used in 40 Million

homes as cooking fuel and commands over 48% market share in India. Indane LPGas

is marketed through a network of 4350 Indane distributors. Widely used in

commercial sectors like industries, hotels & restaurants, medical labs, etc. 87 Indane

Bottling Plants are spread across the country with a combined bottling capacity of

3.77 MMTPA. New and convenient 5 kg Indane LPGas cylinders introduced in ruraland hilly regions for wider use by economically weaker sections. IndianOil's auto

LPG brand Autogas is the leader in the segment. Marketed through a network 48

stations out of an industry total of 103 Auto LPG Dispensing Stations.


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Autogas (LPG) has been introduced in Hyderabad,

Bangalore and Mumbai markets. This alternative fuel is a good business proposition inthe long term, and IndianOil intends to further expand its marketing in a big way

INDIANOIL SERVES CUSTOMERS FROM KARGIL TOKANYAKUMARI:

IndianOils remarkable marketing and distribution network extends from Kargil to

Kanyakumari, catering to a vast spectrum of customers including households,

industries, agriculture, transport, and defence forces, with total sales crossing 49.61

Million Metric Tonnes in 2005-06.

The Marketing Division of the Corporation has its headquarters located in Mumbai. It

has FOUR Regional Offices located at Mumbai, Delhi, Chennai and Kolkata. There

are 15 State Offices and 44 Divisional Offices including 2 of Assam Oil Division. A

large network of 9,138 Retail Outlets including 82 Jubilee Retail Outlets serve the

retail market. A total of 3,521 Kerosene/ Light Diesel Oil (LDO) dealers reach the

products to the customers throughout the country. They are fed by 162 Bulk storage

depots/terminals all over the country.

INDIAN OIL has 35 Area Offices to deal with the marketing of LPG. Indane Cooking

Gas is distributed to over 375 lakh customers in 2,177 towns through 4,350

distributors. The Corporation has 87 LPG Bottling plants with a total capacity of 36,

74,000 tonnes per annum.


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INDIAN OIL has 94 Aviation Fuel Stations catering to Civil and Defense Aircrafts

with a market share of 68 %. INDIAN OIL meets around 89 % requirements of Air

Force whereas total needs of Army and Navy.

The company has a ISO-9001 certified, modern Research and Development Centre at

Faridabad with facilities matching international standards. The centre has developed

over 2000 Lubricant/Grease formulations and introduced multigrade fuel-efficient

lubricants for modern vehicles and is constantly trying new ways of improving fuel

efficiency and quality. INDIAN OIL has launched genuine lubricating oils for almost

all brands and makes of vehicles. A wholly owned subsidiary, Indian Oil Blending

Ltd. manufactures over 450 grades of the countrys leading SERVO brand of

lubricants and greases with 42 % market share, and are sold through more than 9,100

Company retail outlets, besides a countrywide network of bazaar traders.

INDIAN OIL- IMPROVING THE QUALITY OF LIFE:

INDIAN OIL provides welfare schemes including housing, medical, sports and

recreation facilities to its employees and their families. INDIAN OIL has also given

top priority to its customers interests. Be it peace time or war, drought or floods,

INDIAN OIL has carried oil requirements to remote hamlets, provided fuel for

transport and fulfilled energy needs of the Defence forces. INDIAN OIL has always

been keen supporter of worthy causes such as family planning and welfare and

rehabilitation of handicapped and under privileged. INDIAN OIL views energy as a

means of achieving self-reliance and healthy economy. So it continuously strives to

bring energy to life.


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Projects :

Indian Oil accords high priority to timely project implementation. The details of

various major projects are as follows:

Completed Projects :

Diesel Hydrotreating and Solvent De-waxing units at Digboi Refinery.

Viramgam Koyali crude oil pipeline (148 km).

Koyali-Viramgam-Sidhpur product pipeline (102 km).

Kurukshetra-Roorkee-Najibabad product pipeline (167 km).

LPG bottling plants at eight locations.

Port terminal at Mauritius with a tankage of 15.5 TMT.

Ongoing Project :

Linear Alkyl Benzene unit at Koyali Refinery.

Diesel Hydrotreating unit at Mathura Refinery.

MS quality improvement projects at Mathura, Koyali and Haldia

refineries.

Paraxylene/Purified Terephthallic Acid unit at Panipat Refinery.

Panipat Refinery expansion from 6 MMT per annum to 12 MMT per

annum.

Grassroots refinery at Paradip

Mundra-Kandla crude oil pipeline (73 km) and conversion of the Kandla

Panipat section of KBPL to crude oil service.


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Paradip Haldia crude oil pipeline (353 km).

Sidhpur Sanganer product pipeline (506 km).

Chennai Trichy Madurai product pipeline (683 km).

Capacity augmentation of LPG bottling plants at Chengalpet and

Tikrikalan.

Naphtha transfer pipeline from Asaoti to NTPC, Faridabad.

Hydrocracker Laboratory Phase-II at R&D Centre.

New Project :Naphtha Cracker project and downstream polymer units at Panipat.

Branch pipelines to Raxaul and Baitalpur from Barauni Kanpur product

pipeline.

Koyali - Ratlam (274 km) and Koyali Dahej (112 km) product pipeline.

Dadri Panipat gas pipeline.

7 depots at various locations.

Dockline at Narimanam (8 km).

Construction of grassroots LPG bottling plants at Raipur and

Virudhachalam.

Divisions of Indian OilCorporate :IndianOil is Indias Flagship national oil company, accounting for 51.2% petroleum

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


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transportation network. In 2005-06 , Indian Oil sold 46.22 million metric tonnes

(MMT) of petroleum products, while its seven own refineries achieves a throughput

of 37.66 MMT, and pipeline network transported 44.50 MMT of crude oil andpetroleum products.

IndianOil is the countrys largest commercial enterprise also the first and only

company to cross Rs.1 lakh crore turnover with a Gross Turnover of Rs. 1,83,204/-

crore (approx US$ 41,059 million), and a net profit of Rs.4915 crore (approx US$

1,603 million) for 2003-04. IndianOil is the sole Indian presence in Fortunes

prestigious listing of the worlds 500 largest corporations, ranked 153 and is the 18th

largest petroleum company in the world. It has been adjudged No.1 in petroleum

trading among the national oil companies in the Asia-Pacific region, and is ranked

325thin the current Forbes Global 500 listing of the largest public companies.

IndianOil operates under the aegis of the Ministry of Petroleum & Natural Gas(MOP&NG), Government of India, with the VISION to be a major, diversified,transnational, integrated energy company, with national leadership and a strongenvironment conscience, playing a national role in oil security & public distribution.


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Objectives of the company

To serve the national interests in the oil and related sectors in accordance

and consistent with Government policies.

To ensure and maintain continuous and smooth supplies of petroleum

products by way of crude refining, transportation and marketing

activities and to provide appropriate assistance to the consumer to

conserve and use petroleum products efficiently.

To earn a reasonable rate of interest on investment.

To work towards the achievement of self-sufficiency in the field of oil

refining by setting up adequate capacity and to build up expertise in

laying of crude and petroleum product pipelines.

To create a strong research and development base in the field of oil

refining and stimulate the development of new product formulations

with a view to minimize/eliminate their imports and to have next

generation products.

To maximize utilization of the existing facilities in order to improve

efficiency and increase productivity.

To optimize utilization of its refining capacity and maximize distillate

yield from refining of crude to minimize foreign exchange outgo.

To minimize fuel consumption in refineries and stock losses in marketing

operations to effect energy conservation.

To further enhance distribution network for providing assured service to

customers throughout the country through expansion of reseller network

as per Marketing Plan/Government approval.

To avail of all viable opportunities, both national and global, arising out

of the liberalization policies being pursued by the Government of India.


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To achieve higher growth through integration, mergers, acquisitions and

diversification by harnessing new business opportunities like

petrochemicals, power, lube business, consultancy abroad and

exploration & production.

Financial Objectives

To ensure adequate return on the capital employed and maintain a

reasonable annual Dividend on its equity capital.

To ensure maximum economy in expenditure.

To manage and operate the facilities in an efficient manner so as to

generate adequate internal resources to meet revenue cost and

requirements for project investment, without budgetary support.

To develop long-term corporate plans to provide for adequate growth of

the activities of the Corporations.

To endeavour to reduce the cost of production of petroleum products by

means of systematic cost control measures.

To endeavour to complete all planned projects within the stipulated time

and cost estimates.


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Performance Graphs 2010-11

Obligations :Towards customers and dealers :

To provide prompt, courteous and efficient service and quality products

at fair and reasonable prices.

Towards suppliers:To ensure prompt dealings with integrity, impartiality and courtesy and

promote ancillary industries.

Towards employees:Develop their capability and advancement through appropriate training

and career planning.

Expeditious redressal of grievances:


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Towards community:To develop techno-economically viable and environment-friendly

products for the benefit of the people.

To encourage progressive indigenous manufacture of products and

materials so as to substitute imports.

To ensure safety in operations and highest standards of environment

protection in its manufacturing plants and townships by taking suitable

and effective measures.

Towards Defence Services:To maintain adequate supplies to Defence Services during normal and emergency

situations as per their requirement at different locations.

StrengthsWide field network.

Dealership network to assist in our direct efforts.

Up-country storages nearer to the market.

Lower cost of production from old Refineries.

Strength on international trade.

Eight existing Refineries.

Spreading Wings :IndianOil has overseas offices in Sri Lanka, Dubai, Kuala Lumpur and Mauritius to co-

ordinate business activities. It has also set up subsidiaries in Mauritius and Sri Lanka


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for implementing business expansion project. SERVO lubricants are being exportedto Dubai, Nepal, Bhutan, Kuwait, Malaysia, Bahrain, Indonesia, Sri Lanka, Mauritius,

Bangladesh etc.

MarketingThe marketing of petroleum products in India today is dominated by the four state-

owned oil companies. Their market shares as on 31st March 2001 were as follows:

* Indian Oil Corporation 55 % approx.*

* Bharat Petroleum Corporation 21 % approx.*

* Hindustan Petroleum Corporation 19.5 % approx.*

* IBP Company 4.5 % approx.*


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Conclusion:Training has played a very important role in helping IndianOil to reach the

commanding heights of performance. Any training would be considered to be

successful only when the knowledge gained by the participants is transferred to the

job performance. And IndianOil is been very successful in doing that.

IndianOil has a very strong base of human resource development and training and it

has percolated right form the top to the bottom levels and this had played a role in

more systematic organization development. The training programmes have helped

their employees to improve their skill and efficiency as a result of which they are able

to undertake new challenges in their work. The training and development

programmes held in IndianOil helped their employees to know theirs strength and

weaknesses and helped them to work on their weaknesses.


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CERTIFICATEThe project report titled COMPNAY PROFILE

SURVEY OF INDIAN OIL" Prepared by PRAKASH

SINGH LODHI (MBA 1st Sem.), under the guidance and

supervision of Mr. AJAY DWIVEDI (Asst. Prof. OF

M.B.A. Deptt., SSHCJ IMR SAGAR) for the partial

fulfillment of the degree of Master of Business

Administration is satisfactory in respect of :-

Signature of H.O.D. : -------------------------

Signature of Supervisor : ------------------------

Signature of Examiner : -------------------------


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DECLARATION BY CANDIDATE

I declare that the project report on COMPNAY PROFILESURVEY OF INDIAN OIL " is my own work, conduct under thesupervision of M r . A J A Y D W I V E D I ( A s s t . P r o f . O F M . B . A .D e p t t . , S S H C J I M R S A G A R ) Affiliated to Dr. Hari SinghGour University, Sagar . To the best of my knowledge the report does

not contain any work which has been submitted for the award of any

degree, anywhere.

Signature of the CandidatePRAKASH SINGH LODHIM.B.A. 2nd SEM..


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ACKNOWLEDGEMENTSI wish to express my deep sense of gratitude to all those who

generously helped in successful completion of this research work by

sharing their valuable time and knowledge. A great deal of

motivation, direction and hard work was require to complete the

report, but the precious guidance provided by my teachers made this

job enjoyable and a nice learning experience.

It is my proud privilege to express my deep sense regards to the

Mrs. Parul Guru (H.O.D. of MBA Deptt., SSHCJ IMR, Sagar) affiliated

Dr. Hari Singh Gour Vishwavidhyalaya, Sagar for giving me

opportunity to prepare a project report on the COMPNAYPROFILE SURVEY OF INDIAN OIL " which I have done. Iexpress my deep sense of gratitude to M r . A J A Y D W I V E D I( A s s t . P r o f . O F M . B . A . D e p t t . , S S H C J I M R S A G A R ) for hisconstant encouragement, guidance and his valuable suggestion to

under take this study.

I am also grateful to my faculty members, customers, friends

and family members for their outstanding support and guidance.

PRAKASH SINGH LODHI

M. B. A. 2nd sem .


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PREFACEThe project report has an objective to get the MBA student

familiar with real life business situation and gives an opportunity to the

student of understand the theoretical concepts of marketing and finance

in practical way.

Every research work has to deal with various people in concern

organization and each of them have their own opinion and thinking

about various topics.

COMPANY PROFILE SURVEY OF INDIAN OIL " I triedmy best to express the report through satisfactional representation,

graphs, pie diagrams etc. and it helped me to enhance my knowledge I

am extremely happy to place before our esteemed teachers.


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RESEARCH METHODOLOGYThese types of research design used project are exploratory.

Exploratory research is that in which new relationship are discovered.

Design of Conclusive Research

Study of Secondary sources of information:-

Different book of marketing and research served as sources of

information. The information from Internet was very useful as well.

Survey of individual with ideas on general subject:-

Information was also collected from owner and distributor of Indian Oil,

which is base of this whole project.

Data Collection Method:-

The method used to collect data is from primary sources. This method is

appropriate as compared to secondary data available looking at the

objectives of the report.

The method used to collect data is a survey in which questionnaire is

prepared and is given to the respondent to fill it.


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Sampling method:-

The universe of this research report consists of 1 dialers and 25

customers those served as source of information.

Research designs:-

Research Type : Exploratory

Data Collection Method : Primary & Secondary

Venue : Sagar

Research Approach : Survey Method

Research Instrument : Questionnaire

Sample Size : 25 Customers & 1 Dealers

Sampling Unit : respondents of Sagar


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LIMITATIONS1. The report had to be completed in a selected area with in a

specified time limit.

2. The facts & Figures perceived in this project report are based

on the data collected from the respondents. Hence their might

be chance of having a little difference from actual.

3. Sample size was very small as compared to the population of

Sagar city.

4. People did not give full response & there is a bias in some

personnel questions.

5. Data from the secondary source may have some errors & their

objectives may not be relevant with the present project.


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SUGGESTIONS & RECOMMENDATIONS

1. The companies should keep pace with time and introduce new

quality and improved service time to time.

2. Resources should be properly utilized to reduce the prices.

3. Commission and margin should also be given to small dealers

and retailers.

4. Sales promotion techniques should be used frequently.

5. Prices should be stable and less variable. Price differentiation

should be removed.

6. The person should be trained by the company to provide

customer satisfaction and to develop public relation.

7. Effective sales force should be used by the companies to

penetrate the interior market.

8. Season discounts on festivals should be given.

9. Companies should take measures to develop new market.


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DATA ANALYSISINDIAN OIL 45%

CASTROL OIL 30%

BP OIL 15%

OTHERS 10%

45%

30%

15%

10%

INDIAN OIL

CASTROL OIL

BP OIL

OTHERS


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COMPANY IMAGE 35%

PRICE 20%

QUALITY 30%

OTHERS 15%


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EXCELLENT 40%

GOOD 35%

AVERAGE 15%

POOR 10%


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BIBLIOGRAPHY

Sharma D.D. : Marketing research Principles, Application

and cases , Sultranchand and Sons New Delhi.

Kothari, C.R. : Research Methodology, Methods and

Technology, Wishwa Prakashan, New Delhi.

Kolter, Philips d (2000), Marketing Management, Prentice

Hall of India Pvt. Ltd. New Delhi.

Websites:

www.indianoil.com

www.google.com

www.wikipedia.com
http://www.indianoil.com/http://www.indianoil.com/http://www.google.com/http://www.google.com/http://www.wikipedia.com/http://www.wikipedia.com/http://www.wikipedia.com/http://www.google.com/http://www.indianoil.com/


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DEALERS QUESTIONNAIRES

NAME:- .. DATE .

YEAR OF ESTABLISHMENT : .

1. Dealing with following company of oil?

Company year .

2. Average sales/month? ..............................

3. How many orders do you order in a month ? ---------------------------------------

----------------------------------------------------------------------------------------------------

4. Who are the competitors of your product? ------------------------------------------

----------------------------------------------------------------------------------------------------

5. Do you think that the company has a long standing image? Yes / No. may be

----------------------------------------------------------------------------------------------------

6. Reason you account for you sale?

a. Quality b. Price. C. Varieties Offered d. Brand Name

7. What promotional technique is being providing by company to you?

----------------------------------------------------------------------------------------------------

---------------------------------------------------------------------------------------------------8. Are you satisfied with these techniques ? Yes / NO --------------------------------

---------------------------------------------------------------------------------------------------

9. What extra facilities are provided by company to you?

a. cash discount b. Dealers discount c. transportation d.

others.

10. Which form of media had lot of impact on the customers?

----------------------------------------------------------------------------------------------------

----------------------------------------------------------------------------------------------------

Date: Signature

Thanks for you co-operation & valuable time


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CUSTOMERS QUESTIONNAIRE

NAME : ------------------------------------------------------------------------ AGE : ---------

SEX : ----------------------- OCCUPATION : ------------------------------------------------

1. Which Oil brand do you use?

a. Indian Oil b. Castrol Oil c. BP Oil d. others

2. What do you think about the price of product?

a. High b. Low c. Reasonable

3. How did you come to know about this brand?

a. Newspaper b. Magazine c . T.V. d. Hoardings

4. What criteria you see when you purchase Indian Oil?

a. Brand Name b. Price c. Quality d. Others

5. Do you feel Indian Oil price Economic? Yes/ No. & Why ?------------------------

----------------------------------------------------------------------------------------------------

6. If you purchase any other Oil which one will you buy ?

----------------------------------------------------------------------------------------------------

---------------------------------------------------------------------------------------------------

7. Do you have any complaints ? Yes / No ----------------------------------------------

----------------------------------------------------------------------------------------------------

8. Any Suggestion ----------------------------------------------------------------------------

----------------------------------------------------------------------------------------------------

Date: Signature

Thanks for you co-operation & valuable time

indian oil.docx

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