India Oil

MarketLine Industry Profile
Oil & Gas in India

September 2019
Reference Code: 0102-2116
Publication Date: September 2019
WWW.MARKETLINE.COM
MARKETLINE. THIS PROFILE IS A LICENSED PRODUCT
AND IS NOT TO BE PHOTOCOPIED
© MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED Page | 1

Oil & Gas in India
Industry Profiles
1. Executive Summary
1.1. Market value

The Indian oil & gas market grew by 18% in 2018 to reach a value of $94.4 billion.
1.2. Market value forecast

In 2023, the Indian oil & gas market is forecast to have a value of $124.2 billion, an increase of 31.6% since 2018.
1.3. Market volume

The Indian oil & gas market grew by 0.5% in 2018 to reach a volume of 2,053 million barrels of oil equivalent.
1.4. Market volume forecast

In 2023, the Indian oil & gas market is forecast to have a volume of 2,356.3 million barrels of oil equivalent, an
increase of 14.8% since 2018.
1.5. Category segmentation

Crude oil is the largest segment of the oil & gas market in India, accounting for 93.6% of the market's total value.
1.6. Geography segmentation

India accounts for 12.8% of the Asia-Pacific oil & gas market value.
1.7. Market rivalry

Oil and gas companies are typically large, integrated players that benefit from the scale of their operations. The Indian
market has a mixture of large private and state-owned companies operating within it. Examples include Reliance
Industries or state owned Indian Oil Corporation Limited (IOCL). The presence of such large incumbents intensifies
rivalry in the market.
1.8. Competitive Landscape

Oil & Gas in India
Industry Profiles
The Indian Oil & Gas market has experienced volatile growth between 2015 and 2018. The Indian oil and gas market
like most other markets across the globe has witnessed a strong decline in its value in the historic period largely due
to a steep decline in the price of crude oil. In July 2014 for example the price of Brent crude oil stood at $104/bbl. In
the same month the following year the price had fallen to $48/bbl. The lowest price was noted in February 2016, after
which the price of crude oil has eventually stabilized but nevertheless remained far below levels seen at the beginning
of the historic period. This has had a profound impact on the profitability of players operating in this market and
consequently impacted the value of the oil and gas market as well.

Oil & Gas in India
Industry Profiles
TABLE OF CONTENTS
1. Executive Summary2
1.1. Market value ................................................................................................................................ 2
1.2. Market value forecast .................................................................................................................. 2
1.3. Market volume ............................................................................................................................. 2
1.4. Market volume forecast ............................................................................................................... 2
1.5. Category segmentation ............................................................................................................... 2
1.6. Geography segmentation ............................................................................................................ 2
1.7. Market rivalry ............................................................................................................................... 2
1.8. Competitive Landscape ............................................................................................................... 2
2. Market Overview9
2.1. Market definition .......................................................................................................................... 9
2.2. Market analysis ............................................................................................................................ 9
3. Market Data11
3.1. Market value .............................................................................................................................. 11
3.2. Market volume ........................................................................................................................... 12
4. Market Segmentation13
4.1. Category segmentation ............................................................................................................. 13
4.2. Geography segmentation .......................................................................................................... 14
5. Market Outlook15
5.1. Market value forecast ................................................................................................................ 15
5.2. Market volume forecast ............................................................................................................. 16
6. Five Forces Analysis17
6.1. Summary ................................................................................................................................... 17
6.2. Buyer power............................................................................................................................... 18
6.3. Supplier power ........................................................................................................................... 20
6.4. New entrants.............................................................................................................................. 22

Oil & Gas in India
Industry Profiles
6.5. Threat of substitutes .................................................................................................................. 24
6.6. Degree of rivalry ........................................................................................................................ 25
7. Competitive Landscape26
7.1. Who are the leading players? .................................................................................................... 26
7.2. What strategies do the leading players follow? ......................................................................... 26
7.3. What have been the most significant contracts/acquisitions over the last year? ...................... 27
8. Company Profiles29
8.1. Reliance Industries Limited ....................................................................................................... 29
8.2. Indian Oil Corporation Limited ................................................................................................... 33
8.3. Shapoorji Pallonji & Co Ltd ........................................................................................................ 40
8.4. Chevron Lummus Global LLC ................................................................................................... 42
8.5. Bharat Petroleum Corporation Limited ...................................................................................... 43
8.6. Hindustan Petroleum Corporation Limited ................................................................................ 49
9. Macroeconomic Indicators54
9.1. Country data .............................................................................................................................. 54
Appendix 56
Methodology............................................................................................................................................. 56
9.2. Industry associations ................................................................................................................. 56
9.3. Related MarketLine research .................................................................................................... 57
About MarketLine ..................................................................................................................................... 58

Oil & Gas in India
Industry Profiles
LIST OF TABLES
Table 1: India oil & gas market value: $ billion, 2014–18 11
Table 2: India oil & gas market volume: million barrels of oil equivalent, 2014–18 12
Table 3: India oil & gas market category segmentation: $ billion, 2018 13
Table 4: India oil & gas market geography segmentation: $ billion, 2018 14
Table 5: India oil & gas market value forecast: $ billion, 2018–23 15
Table 6: India oil & gas market volume forecast: million barrels of oil equivalent, 2018–23 16
Table 7: Reliance Industries Limited: key facts 29
Table 8: Reliance Industries Limited: Annual Financial Ratios 31
Table 9: Reliance Industries Limited: Key Employees 32
Table 10: Indian Oil Corporation Limited: key facts 33
Table 11: Indian Oil Corporation Limited: Annual Financial Ratios 35
Table 12: Indian Oil Corporation Limited: Key Employees 36
Table 13: Indian Oil Corporation Limited: Key Employees Continued 37
Table 16: Shapoorji Pallonji & Co Ltd: key facts 40
Table 17: Shapoorji Pallonji & Co Ltd: Key Employees 41
Table 18: Chevron Lummus Global LLC: key facts 42
Table 19: Bharat Petroleum Corporation Limited: key facts 43
Table 20: Bharat Petroleum Corporation Limited: Annual Financial Ratios 45
Table 21: Bharat Petroleum Corporation Limited: Annual Financial Ratios (Continued) 46
Table 22: Bharat Petroleum Corporation Limited: Key Employees 47
Table 23: Bharat Petroleum Corporation Limited: Key Employees Continued 48
Table 24: Hindustan Petroleum Corporation Limited: key facts 49
Table 25: Hindustan Petroleum Corporation Limited: Annual Financial Ratios 51
Table 26: Hindustan Petroleum Corporation Limited: Key Employees 52
Table 27: Hindustan Petroleum Corporation Limited: Key Employees Continued 53

Oil & Gas in India
Industry Profiles
Table 28: India size of population (million), 2014–18 54
Table 29: India gdp (constant 2005 prices, $ billion), 2014–18 54
Table 30: India gdp (current prices, $ billion), 2014–18 54
Table 31: India inflation, 2014–18 54
Table 32: India consumer price index (absolute), 2014–18 55
Table 33: India exchange rate, 2014–18 55

Oil & Gas in India
Industry Profiles
LIST OF FIGURES
Figure 1: India oil & gas market value: $ billion, 2014–18 11
Figure 2: India oil & gas market volume: million barrels of oil equivalent, 2014–18 12
Figure 3: India oil & gas market category segmentation: % share, by value, 2018 13
Figure 4: India oil & gas market geography segmentation: % share, by value, 2018 14
Figure 5: India oil & gas market value forecast: $ billion, 2018–23 15
Figure 6: India oil & gas market volume forecast: million barrels of oil equivalent, 2018–23 16
Figure 7: Forces driving competition in the oil & gas market in India, 2018 17
Figure 8: Drivers of buyer power in the oil & gas market in India, 2018 18
Figure 9: Drivers of supplier power in the oil & gas market in India, 2018 20
Figure 10: Factors influencing the likelihood of new entrants in the oil & gas market in India, 2018 22
Figure 11: Factors influencing the threat of substitutes in the oil & gas market in India, 2018 24
Figure 12: Drivers of degree of rivalry in the oil & gas market in India, 2018 25

Oil & Gas in India
Industry Profiles
2. Market Overview
2.1. Market definition

The oil and gas market volume is defined as the total consumption (barrels of oil equivalent) of refined petroleum
products and natural gas by end-users in each country.
The value of the oil segment reflects the total volume of refined petroleum products, including refinery consumption
and losses, multiplied by the hub price of crude oil.
The value of the gas segment is calculated as the total volume of dry natural gas consumed multiplied by the price of
natural gas (Henry Hub spot price). The values represent the total revenues available to exploration and production
companies from sales of crude oil and natural gas.
Any currency conversions used in this report have been calculated using constant 2018 annual average exchange
rates.
For the purposes of this report, Middle East comprises Egypt, Israel, Saudi Arabia, United Arab Emirates, Bahrain,
Algeria, Iran, Iraq, Jordan, Kuwait, Libya, Morocco, Oman, Palestine, Qatar, Syria, Tunisia and Yemen.
2.2. Market analysis

The Indian Oil & Gas market has experienced volatile growth during the historic period which is unlikely to continue
during the forecast years, as growth in the market is expected to return to stable levels.
The Indian Kong oil and gas market like most other markets across the globe has witnessed a strong decline in its
value in the historic period thanks largely due to a steep decline in the price of crude oil. In July 2014 for example the
price of Brent crude oil stood at $104/bbl. In the same month the following year the price had fallen down to $48/bbl.
The lowest price was noted in February 2016, after which the price of crude oil has eventually stabilized but
nevertheless remained far below levels seen at the beginning of the historic period. This has had a profound impact
on the profitability of players operating in this market and consequently impacted the value of the oil and gas market
as well.
The Indian oil & gas market had total revenues of $94.4bn in 2018, representing a compound annual rate of change
(CARC) of -6.8% between 2014 and 2018. In comparison, the South Korean and Chinese markets declined with
compound annual rate of change (CARC)s of -8.9% and -7% respectively, over the same period, to reach respective
values of $57.0bn and $276.9bn in 2018.
Oil prices have been volatile thanks to swings in supply. On May 10, 2018, prices rose to a record of $80/b. That
occurred two days after the United States pulled out of the Iran nuclear agreement and reinstated sanctions. Oil
prices used to have a predictable seasonal swing. They spiked in the spring, as oil traders anticipated high demand for
summer vacation driving. Once demand peaked, prices dropped in the fall and winter.
Market consumption volume increased with a compound annual growth rate (CAGR) of 4.7% between 2014 and 2018,
to reach a total of 2,053 million Barrel of oil equivalent in 2018. The market's volume is expected to rise to 2,356.3
million Barrel of oil equivalent by the end of 2023, representing a CAGR of 2.8% for the 2018-2023 period.
Oil & Gas prices have been unpredictable for three fundamental reasons. First, U.S. production of shale oil and
alternative fuels, such as ethanol, began increasing in 2015. The EIA estimated that U.S. fuel production averaged
11.5m b/d in November 2018. It beat the previous U.S. record of 9.6m b/d set in 1970. Production averaged 9.4m b/d
in 2017, and 10.9m b/d in 2018. At the same time, massive oil wells in the Gulf of Mexico began producing in large
quantities. They couldn't stop production regardless of low oil prices. As a result, large traditional oil enterprises
stopped exploring new reserves. Second, OPEC has not been willing to cut output enough to put a floor under prices.
Members don't want to lose market share to U.S. companies. Throughout its history, OPEC controlled production to

Oil & Gas in India
Industry Profiles
maintain a $70/b price target. Increased U.S. supply means it no longer has the clout to do this.
Third, foreign exchange traders drove up the value of the dollar by 25% in 2014 and 2015. All oil transactions are paid
in U.S. dollars. The strong dollar helped cause some of the 70% decline in the price of petroleum for exporting
countries. Most oil-exporting countries peg their currencies to the dollar. As a result, a 25% rise in the dollar offsets a
25% drop in oil prices. Global uncertainty keeps the U.S. dollar strong.
The Crude Oil segment was the market's most lucrative in 2018, with total revenues of $88.4bn, equivalent to 93.6%
of the market's overall value. The Natural Gas segment contributed revenues of $6.1bn in 2018, equating to 6.4% of
the market's aggregate value.
Crude Oil was the most successful segment for the Oil & Gas market due to the majority of automobiles but as well
heavy machinery using oil for consumption or other purposes. Especially automobiles are positively correlated with oil
consumption, meaning as along as the automobile industry is growing the crude oil market will grow as well.
However, that is highly dependent on the kind of automobiles are being produced, meaning that they have to
consume oil or any variations of it. On the other hand, Natural Gas was the second most successful segment for the
Oil & Gas market due to the majority of houses using gas heating. As global temperatures will continue to fall
alongside with high prices for crude oil, demand for gas will increase. In addition, there are many gas consuming cars
in the market, which are boosting revenues for gas producing companies and will potentially play a big role for the
future of Oil & Gas market.
The performance of the market is forecast to accelerate, with an anticipated CAGR of 5.6% for the five-year period
2018 - 2023, which is expected to drive the market to a value of $124.2bn by the end of 2023. Comparatively, the
South Korean and Chinese markets will grow with CAGRs of 3.9% and 5.6% respectively, over the same period, to
reach respective values of $68.9bn and $363.3bn in 2023.
The Indian oil and gas market should witness a return to growth in the forecast period as price of oil stabilizes due to
OPEC supply cuts, economic and political instability reducing Venezuelan oil in the global market, and sanctions being
imposed on Iran again. Growth in the Indian market should also be boosted by strong growth in the country’s wider
economy which has resulted in increased wages in turn boosting demand for fossil fuel driven vehicles and
equipment.

Oil & Gas in India
Industry Profiles
3. Market Data
3.1. Market value

The Indian oil & gas market grew by 18% in 2018 to reach a value of $94.4 billion.
The compound annual rate of change of the market in the period 2014–18 was -6.8%.
Table 1: India oil & gas market value: $ billion, 2014–18
Year $ billion Rs. billion € billion % Growth

2014 124.9 8,544.4 105.9
2015 66.9 4,573.9 56.7 (46.5%)
2016 62.4 4,270.7 52.9 (6.6%)
2017 80.0 5,472.6 67.8 28.1%
2018 94.4 6,459.2 80.0 18.0%
CAGR: 2014–18 (6.8%)
SOURCE: MARKETLINE MARKETLINE
Figure 1: India oil & gas market value: $ billion, 2014–18

Oil & Gas in India
Industry Profiles
3.2. Market volume

The Indian oil & gas market grew by 0.5% in 2018 to reach a volume of 2,053 million barrels of oil equivalent.
The compound annual growth rate of the market in the period 2014–18 was 4.7%.
Table 2: India oil & gas market volume: million barrels of oil equivalent, 2014–18
Year million barrels of oil equivalent % Growth

2014 1,707.0
2015 1,802.4 5.6%
2016 1,972.9 9.5%
2017 2,041.9 3.5%
2018 2,053.0 0.5%
CAGR: 2014–18 4.7%
Figure 2: India oil & gas market volume: million barrels of oil equivalent, 2014–18

Oil & Gas in India
Industry Profiles
4. Market Segmentation
4.1. Category segmentation

Crude oil is the largest segment of the oil & gas market in India, accounting for 93.6% of the market's total value.
The Natural gas segment accounts for the remaining 6.4% of the market.
Table 3: India oil & gas market category segmentation: $ billion, 2018
Category 2018 %
Crude Oil 88.4 93.6%
Natural Gas 6.1 6.4%
Total 94.5 100%
Figure 3: India oil & gas market category segmentation: % share, by value, 2018

Oil & Gas in India
Industry Profiles
4.2. Geography segmentation

India accounts for 12.8% of the Asia-Pacific oil & gas market value.
China accounts for a further 37.6% of the Asia-Pacific market.
Table 4: India oil & gas market geography segmentation: $ billion, 2018
Geography 2018 %
China 276.9 37.6
India 94.4 12.8
Japan 86.1 11.7
South Korea 57.0 7.7
Taiwan 22.2 3.0
Rest of Asia-Pacific 200.5 27.2
Total 737.1 100%
Figure 4: India oil & gas market geography segmentation: % share, by value, 2018

Oil & Gas in India
Industry Profiles
5. Market Outlook
5.1. Market value forecast

In 2023, the Indian oil & gas market is forecast to have a value of $124.2 billion, an increase of 31.6% since 2018.
The compound annual growth rate of the market in the period 2018–23 is predicted to be 5.6%.
Table 5: India oil & gas market value forecast: $ billion, 2018–23
Year $ billion Rs. billion € billion % Growth

2018 94.4 6,459.2 80.0 18.0%
2019 101.1 6,918.4 85.7 7.1%
2020 106.8 7,305.3 90.5 5.6%
2021 111.9 7,656.4 94.9 4.8%
2022 118.1 8,076.8 100.1 5.5%
2023 124.2 8,494.5 105.3 5.2%
CAGR: 2018–23 5.6%
Figure 5: India oil & gas market value forecast: $ billion, 2018–23

Oil & Gas in India
Industry Profiles
5.2. Market volume forecast

In 2023, the Indian oil & gas market is forecast to have a volume of 2,356.3 million barrels of oil equivalent, an
increase of 14.8% since 2018.
The compound annual growth rate of the market in the period 2018–23 is predicted to be 2.8%.
Table 6: India oil & gas market volume forecast: million barrels of oil equivalent, 2018–23
Year million barrels of oil equivalent % Growth

2018 2,053.0 0.5%
2019 2,111.0 2.8%
2020 2,170.1 2.8%
2021 2,224.6 2.5%
2022 2,287.0 2.8%
2023 2,356.3 3.0%
CAGR: 2018–23 2.8%
Figure 6: India oil & gas market volume forecast: million barrels of oil equivalent, 2018–23

Oil & Gas in India
Industry Profiles
6. Five Forces Analysis

The oil & gas market will be analyzed taking companies engaged in oil and gas exploration and production as players.
The key buyers will be taken as end users (individual and institutional) and independent retailers, and suppliers of oil
and gas field services as the key suppliers.
6.1. Summary
Figure 7: Forces driving competition in the oil & gas market in India, 2018
Oil and gas companies are typically large, integrated players that benefit from the scale of their operations. The Indian
market has a mixture of large private and state-owned companies operating within it. Examples include Reliance
Industries or state owned Indian Oil Corporation Limited (IOCL). The presence of such large incumbents intensifies
rivalry in the market.
The likelihood of buyers backwards integrating and becoming players is extremely minute, as to enter this market
requires significant investment in equipment, as well as staying in line with regulatory measures designed to reduce
threats to the environment. This is beyond the scope of most buyers, except perhaps some very large sized buyers for
whom producing their own output of oil may be beneficial to other parts of their business. Overall, the likelihood of
backwards integration is slim at best.
Consolidation amongst suppliers means there are fewer companies that can act as suppliers, thereby increasing their
power as players become increasingly reliant on those players still operating and supplying in the market.
The oil and gas market is characterized by the presence of large, diversified international companies with highly
vertically integrated operations throughout oil exploration, production, refining, transportation and marketing. Both
the presence of these powerful incumbents and the need for substantial initial investment to set up facilities, such as
drilling rigs, reduce the threat of new companies establishing themselves in this market.
In recent years, the Indian oil and gas market has contracted in value overall owing to reduced crude oil prices.
Furthermore, with government policy increasingly favoring the renewable energy sector over the oil and gas market,
the oil and gas market will increasingly come under pressure from substitutes. This will reduce the threat of new
entrants.

Oil & Gas in India
Industry Profiles
Due to the high sensitivity of prices, it is difficult to predict future trends. Substitutes in the oil and gas market can be
considered in terms of increasing the production of alternative energy sources, although this can result in high
switching costs. High fixed costs and exit barriers intensify the competition level within the market."
6.2. Buyer power

Figure 8: Drivers of buyer power in the oil & gas market in India, 2018
The Indian oil and gas market is characterized by the presence of large, diversified international companies with highly
vertically integrated operations throughout oil exploration, production, refining, transportation and marketing, and
they appear as both buyers and players within different stages.
An example in the Indian market is state owned Indian Oil Corporation Limited (IOCL) which operates on several
different levels in the oil and gas market, ranging from exploration projects and refining oil at its numerous refiners
across the country such as the ones in Marutha or Barauni, to acting as a buyer through its service stations spread
throughout the country. Due to this complexity, as well as the importance of the products offered in this market,
there are a large number of buyers, not only individual but also institutional, weakening buyer power.
However, institutional buyers, i.e. independent retailers or chemical companies, are able to make large purchases and
losing such customers would impact players’ revenues, boosting their power to some extent. Commodities such as
crude oil or natural gas are relatively undifferentiated products, the prices of which are set according to supply and
demand by the mercantile exchanges of New York, London and Dubai, which effectively ameliorates buyer power on
the basis of price. The introduction of price comparison websites serves to increase the buyer power as the customer
can shop around for the best deal which is suited to them.
There is a possibility for some players to forward integrate into some buyer segments of the Italian market. As
previously stated IOCL is engaged in not only the refining of oil but also acts as a buyer through its service stations
spread across the country. This reduces buyer power.
The likelihood of buyers backwards integrating and becoming players is extremely minute, as to enter this market
requires significant investment in equipment, as well as staying in line with regulatory measures designed to reduce
threats to the environment. This is beyond the scope of most buyers, except perhaps some very large sized buyers for
whom producing their own output of oil may be beneficial to other parts of their business. Overall, the likelihood of
backwards integration is slim at best.

Oil & Gas in India
Industry Profiles
Brand loyalty is not likely to be a significant factor here (unless there are loyalty programs in place) so buyer power is
strengthened. Switching costs for individual buyers are not likely to be high, they may, however, be increased with
respect to institutional buyers with larger supply contracts.
Overall, buyer power within the oil and gas market is assessed as weak.

Oil & Gas in India
Industry Profiles
6.3. Supplier power

Figure 9: Drivers of supplier power in the oil & gas market in India, 2018
Major suppliers are oil and gas equipment and services providers, including: Schlumberger, GE, or Halliburton.
Typically, such suppliers are large, highly diversified companies, affording them greater bargaining power within the
market. GE, for example, has a wide product portfolio catering to the worldwide oil and natural gas market. The
company manufactures and supplies drill bits, primarily roller cone bits, and fixed-cutter polycrystalline diamond
compact (PDC) bits. It supplies them to the oil and natural gas market worldwide. GE also supplies drilling and
evaluation services which include directional drilling, measurement-while-drilling (MWD), and logging-while-drilling
(LWD) services. The company provides formation evaluation and wireline completion and production services for oil
and natural gas wells. Such suppliers are small in number and consolidation in the past has seen their numbers decline
even further. This enhances their power.
Consolidation is a trend that has been noticeable amongst suppliers in the oil and gas market in recent years. A
notable example is GE which merged with Baker Hughes in 2017, creating a new company with annual revenues in the
range of $23bn. Similarly Schlumberger further has been given the permission to acquire a 49% stake in Russia's
Eurasia Drilling Company. Consolidation amongst suppliers means there are fewer companies that can act as
suppliers, thereby increasing their power as players become increasingly reliant on those players still operating and
supplying in the market.
Supplier power can also be affected by the price of commodities. When the price is high, oil and gas companies may
explore deposits that were previously deemed too costly, which would boost suppliers’ revenues. When the price is
low, investment in drilling and exploration could fall, which would increase competition between suppliers. However,
rising oil prices over the past year have boosted demand for oil and resulted in an intensification of oil and gas
exploration projects globally. This reduces competition somewhat as suppliers can expand their operations without
theoretically having to infringe upon each other’s revenue streams. Reduced competition between suppliers
ultimately results in overall increased supplier power as they can be less flexible with players in such a scenario. In a
case where supplier competition is high, players can dictate the terms of a contract more strongly.
Amongst suppliers, there are also human resources providers, as well as landowners or governments. Some of these
may exert strong bargaining power due to their size. While there are a large number of companies providing specialist
equipment, it may be more difficult to assure adequate reserves, as oil and natural gas are non-renewable. This

Oil & Gas in India
Industry Profiles
means that major landowners, governments, and similar bodies can be viewed as suppliers, and these may be in a
strong position. Overall, supplier power in the oil and gas market is assessed as moderate.

Oil & Gas in India
Industry Profiles
6.4. New entrants

Figure 10: Factors influencing the likelihood of new entrants in the oil & gas market in India, 2018
Analysis of the threat of new entrants into the oil and gas market is complicated by the fact that it is possible for
companies to operate in one or more parts of the supply chain. Leading oil companies are typically large, highly
vertically-integrated, multinational companies, which use the large scale of their production and distribution networks
to reduce costs and enhance profitability. Such players have invested heavily in their fleets of drilling rigs, other
equipment, and technology, including product innovation. Examples in the Indian market include Reliance Industries
and state owned Indian Oil Corporation Limited (IOCL).
To keep up with the leading players, utilizing scale economies along with strong research and development (R&D)
capability is required. The presence of such powerful incumbent’s acts as a significant barrier to entry and the need
for substantial initial investment to set up facilities, such as drilling rigs, also reduces the threat of new companies
establishing themselves in this market. It is more often seen that huge players are co-operating with domestic players.
There is also a significant regulatory environment within the oil and gas market, which is restrictive to the entry of
players. Permission to explore new fields and extract oil and gas is generally given by national governments, and
obtaining it may be a lengthy process. As well as regulations surrounding taxation and the issue of whether oil and gas
exploration is permitted, there are also restrictions regarding environmental impact.
The Indian oil and gas market is to a large extent dominated by state owned giants such as IOCL, Hindustan Petroleum
Corporation and Bharat Petroleum Corporation. Although the market is technically without any legislative barrier and
as such open for new entrants, the presence of such large state owned enterprises with extremely entrenched
positions in the Indian market, makes it look unattractive for potential new entrants. Mergers and acquisitions are
fairly common in India, with Russian state owned oil giant Rosneft acquiring a major stake in Essar Oil in 2017. This
further reduces the threat of new entrants.
Much has been made of the extraction of shale gas using the controversial method of hydraulic fracturing (fracking)
which has been linked to issues with air quality, water contamination and earthquakes in nearby areas. In order to
reduce reliance on imported oil and gas the Indian government is keen to exploit the nation’s shale oil and gas
reserves. This presents an avenue of growth in the Indian oil and gas market as such.
The products most oil and gas players offer to buyers are largely undifferentiated, meaning that buyers are rather
price sensitive, and switching costs are relatively low unless the buyer is institutional and has engaged in a large long

Oil & Gas in India
Industry Profiles
term contract. This reduces the threat of new entrants as they will have to compete with incumbents largely based on
the pricing of their products. Incumbent players, however, possess huge financial power, meaning that they can out-
compete new entrants into this market unless the new entrant too is very large in size.
The contracting nature of the Indian market means that new players have less space to enter into, especially as
incumbents are more likely to retaliate to the emergence of new players in a declining market. This reduces the threat
of new entrants.
Overall, the threat of new entrants is assessed as weak within the oil and gas market.

Oil & Gas in India
Industry Profiles
6.5. Threat of substitutes

Figure 11: Factors influencing the threat of substitutes in the oil & gas market in India, 2018
As awareness of global warming increases, the importance of alternative energy sources to oil such as solar, biofuel,
coal and wind power, will increase. These substitutes offer notable benefits in terms of environmental impact and
sustainability, although shifting to some renewable energy sources is costly and will take time. Furthermore, certain
substitute energy sources are only available intermittently, such as solar power during the day or wind power when
the wind speed reaches a certain level. Biofuels, however, stand out from the other major substitute sources in the
sense that like oil they are a relatively stable source of energy, not affected by the time of the day or the speed of the
wind. On top of this, it is relatively easy to modify engines previously running on hydrocarbons like oil, to
subsequently run on biofuel.
Production and demand for renewable energy is increasing as climate change becomes a growing issue. However,
currently, the majority of global energy production originates from non-renewable sources, primarily oil, gas and coal.
Whilst power companies can alter their primary energy mix to a small extent without incurring many costs, a
thoroughgoing transition to these substitutes would require investment in new facilities, which constitutes a very high
switching cost. Biofuels, however, with their low switching costs stand out in this regard.
Renewable energy has been growing in popularity in India in recent years. In March 2018 the world’s largest solar park
came into operation in the Indian state of Karnataka. The country possesses vast potential for generating electricity
from renewable sources especially from solar power. Green energy as such presents itself as a major substitute to
fossil fuels in India.
Potential substitutes are starting to occupy a greater share of the energy market as a whole. Moreover, as reserves of
oil and gas decline over the following decades, it is expected that this will increase interest in substitute sources of
energy. However, many industries remain heavily reliant on oil and natural gas, which makes complete substitution
unlikely in the near future.
Overall, there is a moderate threat of substitutes.

Oil & Gas in India
Industry Profiles
6.6. Degree of rivalry

Figure 12: Drivers of degree of rivalry in the oil & gas market in India, 2018
Oil and gas companies are typically large, integrated players that benefit from the scale of their operations. The major
players in the India market are state owned firms such IOCL, Hindustan Petroleum Corporation and Bharat Petroleum
Corporation. Their dominance of the wider Indian oil and gas market lowers rivalry. However there is a possibility for
some large private sectors to also compete in the Indian market a prime example being Reliance Industry. However
some private competitors have to have very strong financial backing in order to remain competitive and are as such
few, meaning that overall the number of players in the Indian market is low. This reduces the degree of rivalry.
Due to the fact that oil and gas operations are highly energy and labor intensive, fixed costs are also high and the
market is hard to enter. Furthermore, exiting the market is even more difficult as leaving would require significant
divestments of assets very much specific to the business.
Most players are similar to each other and therefore competition is increasingly based on price. This increases the
degree of rivalry.
Rivalry in the Indian market is also boosted by the fact that the value of the market has suffered a strong decline in
recent years thanks to an oversupply of oil and gas. This has hurt player profits and forces them to compete more
intensely. However, the worsening state of the market results in the threat of new entrants being low. This factor
balances things to some extent.
The transition towards green energy will continue in the coming years as growing awareness of climate change puts
pressure on the government to ensure consumption of fossil fuels decline The Indian government is also keen on
exploiting the country’s potential of generating electricity from renewable sources thereby reducing reliance on
imported fossil fuels. This transition towards renewable energy will intensify rivalry in the Indian oil and gas market in
the coming years.
Overall, competitive rivalry is strong in the Indian oil and gas market.

Oil & Gas in India
Industry Profiles
7. Competitive Landscape
The Indian Oil & Gas market has experienced volatile growth between 2015 and 2018. The Indian oil and gas market
like most other markets across the globe has witnessed a strong decline in its value in the historic period largely due
to a steep decline in the price of crude oil. In July 2014 for example the price of Brent crude oil stood at $104/bbl. In
the same month the following year the price had fallen to $48/bbl. The lowest price was noted in February 2016, after
which the price of crude oil has eventually stabilized but nevertheless remained far below levels seen at the beginning
of the historic period. This has had a profound impact on the profitability of players operating in this market and
consequently impacted the value of the oil and gas market as well.
7.1. Who are the leading players?

Reliance Industries Limited is the largest Oil & Gas company in India with market capitalization of $112.719bn. The
company is based in Mumbai, India and is engaged in hydrocarbon exploration and production, petroleum refining
and marketing, and petrochemicals, retail and telecommunications businesses. Reliance offers a wide range of
products including oil, gas, petroleum products, polyester products, polyester intermediates, plastics, polymer
intermediates, chemicals, synthetic textiles and fabrics. RIL also provides retail services through its retail stores, super
markets, wholesale cash & carry stores, electronics specialty stores, apparel specialty stores and online fashion stores.
The company operates in Asia, Europe, the Middle East and Africa and North America.
Indian Oil Corporation Limited (IndianOil) is the second largest Oil & Gas provider in India, with market capitalization
of $22.227bn. The company is based in New Delhi, India and refines, transports, and markets petroleum products and
crude oil. It offers various products such as crude oil, bitumen, liquefied petroleum gas (LPG), gasoline, petrol, diesel,
jet fuel, kerosene, naphtha, lubricants and greases, furnace oil and heavy light diesel oil. IndianOil collaborates with
other consortium partners both in India and overseas in the US, Gabon, Canada, Libya, Russia, Nigeria, Venezuela, the
UAE, and Oman to perform upstream operations.
Bharat Petroleum Corporation Limited is the third largest Oil & Gas provider in India with market capitalization of
$12.654bn. The company is based in Mumbai, India and is involved in refining, processing, and distributing petroleum
products, and the exploration and production of hydrocarbons. It offers petrol, diesel, kerosene, aviation fuel,
liquefied petroleum gas (LPG), compressed natural gas (CNG), and lubricants. In addition, it offers industrial fuels
products, such as white oil, black oil, industrial gases, naphtha, diesel, kerosene, furnace oil, bitumen, sulfur and
solvents. The company offers its products under Speed, MAK and Bharatgas brands. BPCL distributes fuel to airlines
including international and domestic carriers. It operates fuel stations that sell petrol, diesel, automotive liquefied
petroleum gas (LPG), and compressed natural gas.
Hindustan Petroleum Corporation Limited is the fourth largest Oil & Gas provider in India with market capitalization of
$6.928bn. The company is based in Mumbai, India and refines, transports and markets crude oil and petroleum
products. It also carries out the exploration and production (E&P) of hydrocarbons through its wholly owned
subsidiary, Prize Petroleum Company Limited (PPCL). The company has refineries in Mumbai and Visakhapatnam,
which produce a range of petroleum fuels and specialties. It also has lube blending plants and liquefied petroleum gas
(LPG) bottling plants. HPCL marketing infrastructure base includes a network of installations, retail outlets, depots,
aviation service stations, and LPG distributors.
7.2. What strategies do the leading players follow?

Reliance Industries Limited’s backward vertical integration has had a positive effect on the company's performance
over the years, which renders its sales less sensitive to the cyclicality of markets and volatility of raw material prices.
Raw materials such as purified terephthalic acid (PTA), mono-ethylene glycol (MEG), ethylene, propylene and normal
paraffin were previously imported at a higher cost and subject to import duties. The company’s vertical integration

Oil & Gas in India
Industry Profiles
helps it to control the cost of raw materials. This has helped RIL to maintain a leading domestic market position in its
major product lines. The company started as a textiles business and expanded to polyester, fiber intermediates,
plastics, petrochemicals, petroleum refining, and oil and gas exploration and production. Currently, it is fully
integrated along the materials and energy value chain, which facilitates cost synergies. The company operates one of
the most integrated petrochemicals facilities globally, with a wide product portfolio. It has the largest refining capacity
at any single site at Jamnagar, Gujarat with crude processing capacity of 1.24m barrels per stream day (BPSD) and a
Nelson Complexity Index of 12.7. The complexity level of refining site is expected to improve significantly by several
notches with the commissioning of J3 projects. The company also has another refinery in the Special Economic Zone
at Jamnagar, which has a capacity for processing 580,000 BPSD of crude oil, the sixth largest in the world. The High
Complexity Index enables the company to procure and process different qualities of crude while meeting stringent
product specifications.
Indian Oil Corporation has a presence across the energy value chain. It carries out the exploration, development and
production of crude oil and natural gas; refinement of crude oil; transportation and distribution of natural gas,
petroleum products and petrochemicals. In the upstream segment, it has participating interests in consortiums with
other Indian oil and gas companies, for exploration and production rights in India. It is also engaged in exploration and
production (E&P) of crude oil and natural gas in the US, Canada, Gabon, Libya, Nigeria, Russia, Venezuela, Oman, and
UAE. The company has a participating interest in nine domestic and ten international blocks. In the midstream
segment, its pipeline network covers the entire country, and spans 13,391 km. In the downstream segment, it has a
major share in the domestic market with popular brands such as SERVO, Indane, XtraPremium and XtraMile, with
access to millions of households, consumers, and industries. IOCL has also diversified into wind, solar, biofuels and
nuclear power. It has built strategic relationships with major organizations for the development of alternative energy
in India. The company, along with Nuclear Power Corporation of India, has established a joint venture company
named NPCIL-IndianOil Nuclear Energy Corporation Limited to capitalize on opportunities in the nuclear energy
sector. The company’s integrated oil and gas operations and diversified energy portfolio strengthen its market
position.
Bharat Petroleum Corporation operates through an extensive nationwide distribution network which has enabled the
company to strengthen its market position in the Indian retail market. As of March 2018, the company had a total of
14,447 retail filling stations in India, of which 225 were Company Owned and Company Controlled (COCO) outlets and
One Stop Trucker Shops (OSTSs). In 2018, 8,046 retail outlets across the country offered Pure for Sure (PFS) service
standards to provide quality and quantity assurance in fueling. BPCL has 1,506 PFS Platinum outlets across India,
equipped with fully automated and computerized offerings. As a part of its marketing initiative, the company has In &
Out stores in across 143 retail outlets, and 121 quick service restaurants. As of March 2018, the company’s
distribution network included a network of 115 depots, 13 installations, 43 aviation service stations, 51 LPG bottling
plants, and 5,084 LPG distributors. As of March 2018, it operated a network of 2,241 km of product pipelines with
design capacity of 17.84 MMT.
Hindustan Petroleum Corporation strengthened the efficiency of its refining operations. The company reported an
increase in its refinery throughput volume in 2018, which strengthened its refining activities. In 2018, the company’s
total throughput volume stood at 18.28 MMT, compared to 17.81 MMT in 2017. In 2018, Mumbai refinery’s total
throughput volume stood at 8.64 MMT compared to installed capacity of 7.5 MMT. The Visakh Refinery achieved
crude throughput of 9.64 MMT compared to installed capacity of 8.33 MMT. In 2018, Mumbai refinery produced
2,433.35 MT of light distillates through effective utilization of assets. Visakh Refinery produced 1,802.81 MT of Motor
Spirit (MS) by blending reformate sourced from domestic imports. The company has the second largest network of
pipeline assets in India. It operates various cross country product pipelines with total length of 3,370 km, mainline
capacity of 24.93 MMTPA, and branch line capacity of 11.07 MMTPA.
7.3. What have been the most significant contracts/acquisitions

over the last year?
Chevron Lummus Global (CLG), a 50:50 joint venture of Chevron U.S.A. and McDermott International, has secured a
contract from HPCL Rajasthan Refinery Limited (HRRL), a joint venture company between Hindustan Petroleum
Corporation Ltd (HPCL) and Government of Rajasthan, for the provision of CLG’s proprietary delayed coking

Oil & Gas in India
Industry Profiles
technology licensing and extended basic engineering design services for 2,400 kilotonnes per annum (ktpa) delayed
coking plant at its planned grassroots refinery in Barmer District, Rajasthan, India.
Furthermore, Shapoorji Pallonji Bumi Armada Godavari Private Limited (SPBAG), a 30:70 joint venture between Bumi
Armada and Shapoorji Pallonji Oil & Gas Private Limited (SPOGPL), has secured a nine-year contract worth
approximately $2.1bn from Oil and Natural Gas Corporation (ONGC) for the charter hire and operations of Floating
Production, Storage and Offloading (FPSO) vessel at Cluster-II field as part of ONGC NELP Block KG - DWN 98/2
development project, located on the east coast of Kakinada, offshore India. ONGC has an option to extend the
contract for an additional seven years on a yearly basis at an aggregate contract value of approximately $655m, if all
the extension options are exercised.

Oil & Gas in India
Industry Profiles
8. Company Profiles
8.1. Reliance Industries Limited
8.1.1. Company Overview
Reliance Industries Limited (RIL or 'the company') operates businesses in the energy and materials value chain. The
company is engaged in hydrocarbon exploration and production, petroleum refining and marketing, and
petrochemicals, retail and telecommunications businesses. The company offers a wide range of products including oil,
gas, petroleum products, polyester products, polyester intermediates, plastics, polymer intermediates, chemicals,
synthetic textiles and fabrics. RIL also provides retail services through its retail stores, super markets, wholesale cash
& carry stores, electronics speciality stores, apparel speciality stores and online fashion stores. The company operates
in Asia, Europe, the Middle East and Africa and North America. The company is headquartered in Mumbai,
Maharashtra, India.
The company reported revenues of (Rupee) INR5,810,200 million for the fiscal year ended March 2019 (FY2019), an
increase of 42.3% over FY2018. In FY2019, the company’s operating margin was 11.1%, compared to an operating
margin of 11.9% in FY2018. In FY2019, the company recorded a net margin of 6.8%, compared to a net margin of 8.8%
in FY2018.The company reported revenues of INR1,613,490.0 million for the first quarter ended June 2019, an
increase of 13.9% over the previous quarter.
8.1.2. Key Facts
Table 7: Reliance Industries Limited: key facts
Head office: 3rd Floor Maker Chambers IV, 222, Nariman Point, Mumbai , Maharashtra, India
Number of Employees: 29533
Website: www.ril.com
Financial year-end: March
Ticker: RELIANCE
Stock exchange: National Stock Exchange of India
SOURCE: COMPANY WEBSITE MARKETLINE
8.1.3. Business Description
Reliance Industries Limited (RIL or 'the company') operates businesses in the energy and materials value chain. The
company is a global player in the integrated energy value chain, and has a growing presence in retail and digital
services in India. The company exports its services and products across 113 countries.
RIL operates through six reportable business segments: Refining, Petrochemicals; Oil and Gas; Organized Retail, Digital
Services and Others.
The Refining segment of the company includes production and marketing operations of the products related to
petroleum. Through the refining segment, RIL operates its refineries at Jamnagar. The refining segment produces
petroleum coke, naphtha, turbine fuel for aviation, sulphur, propylene, LPG, gasoline, and high speed diesel. During
FY2018, the company operates two refineries with capacity of 1.82 million barrels per day (MMbpd) with throughput
of 69.8 MMT and sales of 71.3 MMT, US$11.6/bbl of gross refining margin. It has a network of 1,313 retail fuel outlets
and serves 28 airports in India. In FY2018, the Refining segment of the company reported revenue of
INR2,289,970million, which accounted for 53.2% of the company’s total revenue.

Oil & Gas in India
Industry Profiles
The Petrochemicals segment is engaged in the production and marketing operations of petrochemical products
including: high and low density polyethylene (PE), polypropylene (PP), polyvinyl chloride (PVC), poly butadiene rubber
(PBR), polyester yarn, and polyester fibers. The company also produces purified terephthalic acid (PTA), paraxylene
(PX), ethylene glycol, olefins, aromatics, linear alkyl benzene, butadiene, acrylonitrile, caustic soda and polyethylene
terephthalate (PET). The segment consists of polymers, polyesters, polyester intermediates, elastomers and other
petrochemicals, with operations ranging from the production of feedstock and intermediates to end products in both
the polyester and polymer chain. The company operated 10 manufacturing plants in India and three in Malaysia. The
company has production capacities with 0.7 MMTA of Polyvinyl chloride; 2.2 MMTA of Polyethylene; 1.13 MMTA of
Polyethylene Terephthalate; 2.9 MMTA of Polypropylene; 3.6 MMTPA of Ethylene; 2.36 MMTA of Polyester Filament
Yarns and Polyester Staple Fibres; 1.5 MMTA of Monoethylene Glycol; 4.2 MMTA of Paraxylene; 4.9 MMTA of Purified
Terephthalic Acid; 120 KTA of Poly-Butadiene Rubber and 150 KTA of Styrene Butadiene Rubber. In FY2018, the
Petrochemicals segment of the company reported revenue of INR1,142,290 million, which accounted for 26.5% of the
company’s total revenue.
The company’s Oil and Gas segment includes exploration, development and production of crude oil and natural gas.
During FY2018, the company’s 1P reserves in India were 3.39 MMT of oil and 56,479 Mcm of gas. In FY2018, the Oil
and Gas segment of the company reported revenue of INR49,660 million, which accounted for 1.2% of the company’s
total revenue.
The Organized Retail segment includes retail organized activities. The company's retail business, operates value
formats that include neighbourhood stores, all under one roof supermarkets, and others which offer a range of
products for daily household usage. It also operates specialty formats offering consumer durables and information
technology, apparel and accessories, health, wellness and beauty, apple products, footwear, jewelry, books, music
and entertainment, automotive products and services and home ware, furniture, modular kitchens, and furnishings.
The company offers LPG, diesel and petrol. Reliance Retail operates 7,573 retail stores in over 4,400 cities covering an
area of 17.7 million square feet of space. Reliance Trends operates 458 Trends stores across 223 cities in 28 states and
operates 495 petro retail outlets. It also operates 5.6 million sq ft of warehousing facility. In FY2018, the Organized
Retail segment of the company reported revenue of INR687,290 million, which accounted for 16% of the company’s
total revenue.
Under Digital Services segment, the company offers digitized communications services through its brand Jio. It
includes digital entrepreneurship, social connectivity, digital entertainment, digital currency and healthcare, digital
communication and education and other devices. During FY2018, the segment had 186.6 million subscribers with 2.5
lakh km of fiber-optic cables, covering 18,000 cities and over 100,000 villages. In FY2018, the Digital Services segment
of the company reported revenue of INR46,850 million, which accounted for 1.1% of the company’s total revenue.
The Other segment includes textile, development of SEZ and media services. In FY2018, the Other segment of the
company reported revenue of INR91,250 million, which accounted for 2.1% of the company’s total revenue.
Geographically, the company classifies its business into two segments: India and Outside India. In FY2018, India
accounted for 48.5% of the company’s total revenue and Outside India accounted for 51.5% of the company’s total
revenue.

Oil & Gas in India
Industry Profiles
Table 8: Reliance Industries Limited: Annual Financial Ratios
Key Ratios 2014 2015 2016 2017 2018

Growth Ratios
Sales Growth % -13.59 -21.88 12.57 23.65 42.31
Operating Income Growth % 9.10 31.44 1.84 39.37 31.87
EBITDA Growth % 7.19 21.86 1.55 40.39 30.19
Net Income Growth % 4.77 26.22 0.52 20.65 9.74
EPS Growth % 4.40 1.43 7.78 24.21 16.84
Working Capital Growth % -91.18 -1910.89 54.27 46.96 -33.44
Equity Ratios
EPS (Earnings per Share) INR 40.05 50.37 50.57 60.89 66.80
Dividend per Share INR 5.00 5.25 5.50 6.00 6.50
Dividend Cover Absolute 8.01 9.59 9.19 10.15 10.28
Book Value per Share INR 354.56 392.73 445.62 495.63 653.26
Profitability Ratios
Gross Margin % 16.31 22.99 22.49 25.05 25.39
Operating Margin % 6.96 11.72 10.60 11.95 11.07
Net Profit Margin % 6.28 10.14 9.06 8.84 6.81
Profit Markup % 19.48 29.85 29.02 33.42 34.02
PBT Margin (Profit Before Tax) % 8.29 13.21 12.12 12.11 9.51
Return on Equity % 11.29 12.85 11.34 12.29 10.23
Return on Capital Employed % 7.23 8.30 7.34 9.71 9.39
Return on Assets % 5.10 5.43 4.56 4.72 4.35
Return on Working Capital % 66.73 825.35
Operating Costs (% of Sales) % 93.04 88.28 89.40 88.05 88.93
Administration Costs (% of Sales) % 6.27 9.76 8.96 10.22 10.29
Liquidity Ratios
Current Ratio Absolute 1.02 0.69 0.62 0.59 0.73
Quick Ratio Absolute 0.63 0.44 0.42 0.39 0.51
Cash Ratio Absolute 0.52 0.32 0.28 0.22 0.27
Leverage Ratios
Debt to Equity Ratio Absolute 0.64 0.68 0.63 0.62 0.58
Net Debt to Equity Absolute 0.71 0.73 0.73 0.73 0.72
Debt to Capital Ratio Absolute 0.39 0.40 0.38 0.38 0.37
Efficiency Ratios
Asset Turnover Absolute 0.81 0.54 0.50 0.53 0.64
Fixed Asset Turnover Absolute 1.91 1.02 0.88 0.90 1.24
Inventory Turnover Absolute 5.71 4.53 5.36 5.57 6.75
Current Asset Turnover Absolute 2.60 2.21 2.40 2.47 2.80
Capital Employed Turnover Absolute 1.04 0.71 0.69 0.81 0.85
Working Capital Turnover Absolute 12.10 118.51
SOURCE: COMPANY FILINGS MARKETLINE

Oil & Gas in India
Industry Profiles
Table 9: Reliance Industries Limited: Key Employees
Name Job Title Board

Adil Zainulbhai Director Non Executive Board
Alok Agarwal Chief Financial Officer Senior Management
Ashok Misra Director Non Executive Board
Dipak C. Jain Director Non Executive Board
Hital R. Meswani Director Non Executive Board
K Sethuraman Chief Compliance Officer Senior Management
K Sethuraman Secretary Senior Management
Mansingh L. Bhakta Director Non Executive Board
Mukesh D. Ambani Chairman Executive Board
Mukesh D. Ambani Managing Director Executive Board
Nikhil R. Meswani Director Non Executive Board
Nita M. Ambani Director Non Executive Board
P.M.S. Prasad Director Non Executive Board
Pawan Kumar Kapil Director Non Executive Board
Raghunath Anant Mashelkar Director Non Executive Board
Raminder S. Gujral Director Non Executive Board
Shumeet Banerji Director Non Executive Board
Soumyo Dutta Treasurer Senior Management
Srikanth Venkatachari Joint Chief Financial Officer Senior Management
Yogendra P. Trivedi Director Non Executive Board

Oil & Gas in India
Industry Profiles
8.2. Indian Oil Corporation Limited
Indian Oil Corporation Limited (IOCL or 'the company') explores and produces oil and natural gas. The company also
refines transports and markets of petroleum products and crude oil. It offers various products such as crude oil,
bitumen, liquefied petroleum gas (LPG), gasoline, petrol, diesel, jet fuel, kerosene, naphtha, lubricants and greases,
furnace oil and heavy light diesel oil. IOCL collaborates with other consortium partners both in India and overseas such
as the US, Gabon, Canada, Libya, Russia, Nigeria, Venezuela, the UAE and Oman to perform upstream operation. The
company is headquartered in New Delhi, India.
The company reported revenues of (Rupee) INR6,172,428.4 million for the fiscal year ended March 2019 (FY2019), an
increase of 19.7% over FY2018. In FY2019, the company’s operating margin was 4.6%, compared to an operating
margin of 6.6% in FY2018. In FY2019, the company recorded a net margin of 2.8%, compared to a net margin of 4.3%
in FY2018.The company reported revenues of INR1,524,955.6 million for the first quarter ended June 2019, an
increase of 3.6% over the previous quarter.
8.2.2. Key Facts
Table 10: Indian Oil Corporation Limited: key facts
Head office: Plot no.3079/3Sadiq Nagar, J.B. Tito Marg., New Delhi , Delhi, India
Website: www.iocl.com
Ticker: IOC
Indian Oil Corporation Limited (IOC or 'the company') is an oil and gas company. . It carries out exploration and
production of oil and natural gas, refining of crude oil, pipeline transportation and marketing of natural gas and
petroleum products. The company conducts the exploration and production (E&P) of crude oil and natural gas in the
US, Libya, Gabon, Nigeria, Russia, Oman, Canada, and Venezuela. In addition, the company also undertakes overseas
business activities through its subsidiaries in Mauritius, Sri Lanka, the UAE, Sweden, the US, Singapore and
Netherlands. During FY2018, IOCL sold a total of 88.8 million tons of products, including 77.1 million tons of petroleum
products, 1.9 million of gas products, 2.3 million tons of petrochemicals, and 0.2 million tons of explosives and 7.3
million tons of exports.
IOCL classifies its business operations into three reportable segments: Petroleum Products, Petrochemicals, and Other
Businesses.
The Petroleum Products segment is engaged in refining of crude oil and sale of refined and processed oil products.
IOCL also has limited presence in upstream activities. It procures most of its requirements of crude oil from the
international energy market. The company operates refineries and a retail network for sale of processed oil. The
company owns and operates nine refineries, which achieved the highest ever crude throughput of 69.00 million
metric tonnes in FY2018. IOCL operates a cross-country network of crude oil, product and gas pipelines, spanning
13,391 kilometers (km) with 87 pipeline terminals.

Oil & Gas in India
Industry Profiles
IOCL operates a network of 27,089 retail petrol and diesel stations nationwide and 7,529 Kisan Seva Kendras (KSKs).
With a countrywide network, the company has over 3,897 superior kerosene oil/ light diesel oil (SKO/LDO) dealers,
107 aviation fuel stations, 10 lube blending plants, and 91 liquefied petroleum gas (LPG) bottling plants. In the LPG
business, the company operated through a network of 10,213 distributors. In FY2018, the company released new
domestic LPG connections to 131.7 lakh customers, IOC also has a network of 6,650 consumer pumps for the
convenience of bulk consumers. In FY2018, the Petroleum Products segment reported revenue of INR4,811,684.3
million, which accounted for 95% of the company's revenue.
The Petrochemicals segment offers linear alkyl benzene (LAB), Paraxylene/ purified terephthallic acid (PTA), Glycols,
Butadiene. and an extensive range of polymers. The company offers a full slate of petrochemical products under the
brand name PROPEL. At the end of FY2018, the company sold a total of 2.3 million tons of petrochemicals. In FY2018,
the Petrochemicals segment reported revenue of INR180,338.4 million, which accounted for 3.6% of the company's
total revenue.
The company's Other Businesses segment comprises sale of gas, explosives and cryogenics, wind mill and solar power
generation, and oil and gas exploration activities. The company currently operates City Gas Distribution (CGD)
networks in Agra and Lucknow through its joint venture company, Green Gas Ltd., and in Allahabad, Chandigarh,
Ernakulam, Daman, Udham Singh Nagar, Dharwa and Panipat through its joint venture company, IndianOil-Adani Gas
Pvt. Ltd. (IOAGPL). As of March 2018, the company has a portfolio of 168 MW wind power and 34 MW solar PV, which
includes 17.5 MW grid connected solar PV and 16.5 MW off-grid solar projects. The company operates six wind power
plants and three solar power plants. The company operates 12 explosives manufacturing plants and one cryogenics
manufacturing plant across India.In FY2018, the company manufactured and sold 176,757 metric tons of explosives
and sold 28,782 units of cryocans and cryovessels in FY2018. IOCL refineries together achieved a crude oil throughput
of 69 million tons during FY2018 with a capacity utilization of 99.7%. The company carries out its exploration and
production activities through its joint operations, joint ventures and wholly owned subsidiaries.This upstream
portfolio consists of 19 assets, which include eight producing, three domestic discovered small fields, two coal bed
methane, one overseas under development, two domestic exploration with discoveries under appraisal and three
under exploration assets. In FY2018, the Other Business segment reported revenue of INR72,253.2 million, which
accounted for 1.4% of the company's total revenue.
Geographically, the company classifies its operations into two segments: India and Outside India. In FY2018, India
accounted for 95.2% of the company’s revenue, followed by Outside India (4.8%).

Oil & Gas in India
Industry Profiles
Table 11: Indian Oil Corporation Limited: Annual Financial Ratios
Key Ratios 2014 2015 2016 2017 2018

Growth Ratios
Sales Growth % -7.95 -7.72 9.40 13.61 19.73
Operating Income Growth % -46.60 142.58 30.81 24.32 -16.10
EBITDA Growth % -38.52 92.38 28.38 21.99 -11.13
Net Income Growth % -30.68 144.76 65.10 11.79 -21.69
EPS Growth % -49.86 266.82 78.21 11.57 -21.26
Working Capital Growth % 3348.62 75.02 240.50 -5.89 -9.60
Equity Ratios
Gross Margin % 6.63 12.79 16.01 14.74 10.05
Profit Markup % 7.10 14.67 19.06 17.29 11.17
Return on Equity % 5.55 13.36 19.44 19.49 15.45
Return on Assets % 1.97 5.17 7.86 7.80 5.51
Liquidity Ratios
Leverage Ratios
Efficiency Ratios

Oil & Gas in India
Industry Profiles
Table 12: Indian Oil Corporation Limited: Key Employees

Aarup A Bhattacharjee Director Human Resource, Marketing Senior Management
AK Basu Director Regional Services (Eastern Region) Senior Management
AK Ganjoo Director Uttar Pradesh State Office I Senior Management
AK Tewari Director Operations, Pipelines Senior Management
AK Verma Director Petrochemicals, Corporate Office Senior Management
Akshay Kumar Singh Director Pipelines Senior Management
Director I/C (Information Systems), Corporate
Alok Khanna Senior Management
Office
Director Corporate Affairs and Pricing,
Amita Singh Senior Management
Corporate Office
Director Petrochemicals (Projects), Corporate
AN Jha Senior Management
Office
Anish Aggarwal Director Pipelines Senior Management
Arun Kumar Sharma Director Finance Senior Management
Ashutosh Jindal Director Non Executive Board
B V Rama Gopal Director Refineries Senior Management
BK Ravi Advisor-Security Senior Management
BK Singh Director Regional Services (Western Region) Senior Management
Director Health, Safety and Environment,
BS Giridhar Senior Management
Marketing
Chitta Ranjan Biswal Director Non Executive Board
CK Tiwari Director Haldia Refinery Senior Management
Director I/C (Co ordination, Planning, Quality
CS Shankar Senior Management
Control and Law), Marketing
D. S. Shekhawat Director Non Executive Board
Director Exploration and Production,
Debashis Roy Senior Management
Corporate Office
Debasish Roy Director Finance, Refineries Senior Management
Director Corporate Information Systems,
Deepak Agarwal Senior Management
Corporate Office
Deepak Saxena Director Lube Technology, RandD Senior Management
Dipankar Ray Director West Bengal State Office Senior Management
DK Sharma Director Co ordination, Corporate Office Senior Management
DLN Sastri Director International Trade, Corporate Office Senior Management
DS Nanaware Director Southern Region Pipelines, Chennai Senior Management
G K Satish Director Planning and Business Development Senior Management
Gautam Ghosal Director Human Resource, Pipelines Senior Management

Oil & Gas in India
Industry Profiles
Table 13: Indian Oil Corporation Limited: Key Employees Continued

GS Singh Director I/C (Paradip Refinery) Senior Management
Gurmeet Singh Director Marketing Senior Management
HK Sachdev Director Regional Services (Northern Region) Senior Management
HK Singh Director Projects, Pipelines Senior Management
Jagdish Kishwan Director Non Executive Board
Jogen Barpujari Director Guwahati Refinery Senior Management
Kamal Kumar Gwalani Company Secretary Senior Management
Kaushik Bora Senior Management
Refineries
KL Murthy Director Lubes, Marketing Senior Management
LW Khongwir Director Mathura Refinery Senior Management
Director Corporate Communications,
M Kali Krishna Senior Management
Corporate Office
Director IndianOil Institute of Petroleum
M Srinivas Senior Management
Management
Mohammad Shafiq Ahmad Director Process (Projects), Refineries Senior Management
Murali Srinivasan Director Maharashtra State Office Senior Management
NVN Ramsai Director Finance, Marketing Senior Management
OP Jain Director BD (Finance), Corporate Office Senior Management
Parindu Bhagat Director Non Executive Board
Partha Ghosh Director Optimisation, Corporate Office Senior Management
Director South Eastern Region Pipelines,
PC Choubey Senior Management
Bhubaneswar
PK Das Director I/C Supplies, Marketing Senior Management
PK Yadav Director Automation, Marketing Senior Management
Pramod Narang Director Construction, Pipelines Senior Management
R Sitharthan Director Tamil Nadu State Office Senior Management
Director Telangana and Andhra Pradesh State
Rahul Bhardwaj Senior Management
Office
Rajendra Arlekar Director Non Executive Board
Director Business Development, Corporate
Rakesh Jain Senior Management
Office
Rakesh Sehgal Director Operations , Marketing Senior Management
Ranjan Kumar Mohapatra Director Human Resources Senior Management
Ravindra Garg Director Rajasthan State Office Senior Management
RD Kherdekar Director Pricing, Marketing Senior Management

Oil & Gas in India
Industry Profiles

Director Maintenance and Construction,
RK Samtani Senior Management
Pipelines
Director Anti Adulteration Cell, Corporate
RS Dahiya Senior Management
Office
S Senthil Kumar Director Regional Services (Southern Region) Senior Management
S Varadachari Director I/C (Karnataka State Office) Senior Management
S.K.Mazumdar Director Refining Technology, RandD Senior Management
Sajjan Kumar Director Delhi State Office Senior Management
Samirendra Chatterjee Director Non Executive Board
Sandeep Kumar Gupta Director Finance Senior Management
Sanjay Kapoor Director Non Executive Board
Sanjay Manchanda Director West Coast Refinery Project Senior Management
Director Corporate Planning and Economic
Sanjiv Sharma Senior Management
Studies, Corporate Office
Sanjiv Singh Chairman Executive Board
Sankar Chakraborti Director Non Executive Board
SK Awasthi Senior Management
Corporate Office
Director Human Resource Development,
SK Bose Senior Management
Corporate Office
SK Dam Director Coordination and Planning, Marketing Senior Management
SK Jain Director Retail Sales, Marketing Senior Management
SK Satija Senior Management
Pipelines
SK Sharma Director Bihar State Office Senior Management
SM Vaidya Director Operations, Refineries Senior Management
Srikrishna Chervu Director Cryogenics Senior Management
Director Maintenance and Inspection,
SS John Senior Management
Refineries
SS Lamba Director Gujarat State Office Senior Management
SSV Ramakumar Director Research and Development Senior Management
Director Human Resource and CSR,
Subimal Mondal Senior Management
Corporate Office
Director Corporate Communications and
Subodh Dakwale Senior Management
Branding, Marketing
Director Alternate Energy and Sustainable
Subodh Kumar Senior Management
Development, Corporate Office
Director IndianOil Foundation , Corporate
Subrata Barma Senior Management
Office
Sudhir Kumar Director Gujarat Refinery Senior Management
Director I/C (Corporate Planning and
Sukhendu Majumdar Senior Management
Economic Studies), Corporate Office

Oil & Gas in India
Industry Profiles

Sunil Mathur Director LPG, Marketing Senior Management
Suresh Chopra Director Projects, Refineries Senior Management
TDVS Gopalakrishna Director Technical, Paradip Refinery Senior Management
TS Khwaja Director Aviation, Marketing Senior Management
UP Singh Director Institutional Business, Marketing Senior Management
VC Sati Director Western Region Pipelines, Gauridad Senior Management
Vinod Kumar Chief Vigilance Officer Senior Management
Vinoo Mathur Director Non Executive Board
VK Misra Director Uttar Pradesh State Office II Senior Management
VK Raizada Director Panipat Refinery Senior Management
VK Shukla Director Human Resource, Refineries Senior Management
YK Gupta Director Engineering and Projects, Marketing Senior Management

Oil & Gas in India
Industry Profiles
8.3. Shapoorji Pallonji & Co Ltd
Shapoorji Pallonji & Co Ltd (SPCL) formerly Littlewood Pallonji & Co, is a construction contracting company that offers
engineering and construction services. The company services include conventional and general contracting,
conceptualization, design and build, engineering, project management, execution, construction and facility
management services. SPCL caters to commercial, health care, hospitality, industrial, institutional, residential, sports,
utility and infrastructure projects. The company’s projects comprise Bank of India, Citi Bank, Raheja Towers, Keppel
Purvankara, Phoenix Residences, United Motors (India) Ltd, and Life Insurance Corporation of India, among others. It
has operations with offices in Kolkata, Ahmedabad, Mumbai, Bengaluru, Chennai, New Delhi, Hyderabad, and Nasik,
India. SPCL is headquartered in Mumbai, Maharashtra, India.
8.3.2. Key Facts
Table 16: Shapoorji Pallonji & Co Ltd: key facts
SP Centre 41/44, Minoo Desai Marg

Head office:
, Colaba, Mumbai, Maharashtra, India
Website: www.shapoorjipallonji.com
Financial year-end: April

Oil & Gas in India
Industry Profiles
Table 17: Shapoorji Pallonji & Co Ltd: Key Employees

Vice President Contracts, Engineering and
Allan James Senior Management
Construction
General Manager Projects, Engineering and
Ananyo Mitra Senior Management
Construction
Dolly Rawal Vice President Accounts, SPCPL Senior Management
Kekoo Colah Executive Director-SPCPL Senior Management
Khurshed Daruvala Managing Director Sterling and Wilson Senior Management
Shapoor P. Mistry Chairman Executive Board
Zarine Commissariat Head CSR, SPCPL Senior Management

Oil & Gas in India
Industry Profiles
8.4. Chevron Lummus Global LLC
8.4.2. Key Facts
Table 18: Chevron Lummus Global LLC: key facts
Head office: 100 Chevron WayRichmond, California, United States

Financial year-end: April

Oil & Gas in India
Industry Profiles
8.5. Bharat Petroleum Corporation Limited
Bharat Petroleum Corporation Limited (BPCL or 'the company') is an Indian-based company into refining, processing,
and distributing petroleum products, and exploration and production of hydrocarbons. It offers petrol, diesel,
kerosene, aviation fuel, liquefied petroleum gas (LPG), compressed natural gas (CNG), and lubricants. In addition, it
offers industrial fuels products, such as white oil, black oil, industrial gases, naphtha, diesel, kerosene, furnace oil,
bitumen, sulphur and solvents. The company offers its products under Speed, MAK and Bharatgas brands. BPCL
distributes fuel to airlines including international and domestic. It operates fuel stations that sell petrol, diesel,
automotive liquefied petroleum gas (LPG), and compressed natural gas. The company is headquartered in Mumbai,
Maharashtra, India.
increase of 22% over FY2018. In FY2019, the company’s operating margin was 3.6%, compared to an operating margin
of 4.6% in FY2018. In FY2019, the company recorded a net margin of 2.3%, compared to a net margin of 3.2% in
FY2018.
8.5.2. Key Facts
Table 19: Bharat Petroleum Corporation Limited: key facts
Bharat Bhavan 4 and 6 Currimbhoy Road , Ballard Estate , Mumbai , Maharashtra,

Head office:
India
Website: www.bharatpetroleum.com
Ticker: BPCL
Bharat Petroleum Corporation Limited (BPCL or 'the company') is an India-based oil marketing company that focuses
on refining, processing, and distributing petroleum products. It primarily offers petrol, diesel, kerosene, aviation fuel,
liquefied petroleum gas (LPG), compressed natural gas (CNG), and lubricants.
BPCL operates through two business segments: Downstream Petroleum and Exploration and Production (E&P) of
Hydrocarbons.
The company's Downstream Petroleum segment’s activities include refining and marketing of petroleum products. Its
petroleum products include fuels, gases, lubricants, solvents, and special products. The company also produces
bitumen and sulfur. BPCL produces naphtha, diesel, kerosene, white oil, black oil and furnace oil. BPCL also offers
various gases, including poly propelene feed stock, natural gas, LPG, and Bharat metal cutting gas. The company
markets its products through its network of retail outlets, gas stations, kerosene dealers, LPG distributors, and
lubricant shops, as well as supplying fuels directly to international and domestic airlines. The company’s offers its
products under brands including MAK, Speed and Bharatgas. During FY2018, BPCL’s refineries at Mumbai and Kochi
had 12 MMT and 15.5 MMTPA, respectively. It had 50% interest in Bharat Oman Refineries Ltd (BORL), a joint venture
that operates a refinery at Bina in Madhya Pradesh, 61.65% interest in Numaligarh Refinery Ltd, which operates a 3
MMTPA refinery at Numaligarh, Assam. In FY2018, the segment operated four refineries with aggregate distillation

Oil & Gas in India
Industry Profiles
capacity of 34.72 million metric tonnes (MMT). Its crude throughput was 34.72MMT. It had 110 depots, 51 LPG
bottling plants, 50 aviation service stations, 3.95 million KL of total tankages, 13,980 retail outlets, 5,084 LPG
distributors and had 66.63 million LPG customers. The company also operated a network of multiproduct pipelines of
2,241 km with design capacity of 17.84 MMT and throughput of 14.97 MMT. In FY2018, the Downstream Petroleum
segment reported revenues of INR2,792,230 million, which accounted for 99.9% of the company's revenue.
BPCL's Exploration and Production (E&P) of Hydrocarbons segment operates through Bharat Petro Resources (BPRL), a
wholly-owned subsidiary of the company. BPRL has participating interests in 24 exploration blocks in eight countries
along with equity stake in two Russian entities, holding the license to 4 producing assets in Russia. Out of these blocks,
twelve blocks are in India, six in Brazil, and one each in UAE, Mozambique, Indonesia, Israel, Australia and Timor Leste.
BPRL’s total acreage holding is around 25,359 sq. km, of which approximately 77% is offshore acreage. BPRL and its
consortia have a total of 26 discoveries in respect of blocks held in five countries including Mozambique, Brazil,
Indonesia, India and Australia. In FY2018, the Exploration and Production (E&P) of Hydrocarbons segment reported
revenues of INR897 million, which accounted for 0.003% of the company's revenue.
The company's research activities aims to develop its existing products and improve to offer better products. The
company has research facilities in India including Uttar Pradesh and Mumbai and Greater Noida.

Oil & Gas in India
Industry Profiles
Table 20: Bharat Petroleum Corporation Limited: Annual Financial Ratios
Key Ratios 2014 2015 2016 2017 2018

Growth Ratios
Sales Growth % -8.25 -9.63 11.19 14.64 21.99
Operating Income Growth % -9.93 61.38 7.27 9.66 -3.67
EBITDA Growth % -3.25 32.62 6.38 13.82 0.40
Net Income Growth % 22.91 57.79 14.98 3.30 -13.39
EPS Growth % 15.14 75.01 14.52 3.58 -13.78
Working Capital Growth % -130.59 -144.59 -2175.82 -44.53 -16.90
Equity Ratios
Gross Margin % 7.69 9.72 9.22 9.05 8.02
Profit Markup % 8.33 10.77 10.15 9.96 8.72
Return on Equity % 19.69 26.10 28.30 24.60 20.13
Return on Assets % 5.72 9.16 8.92 7.85 6.07
Return on Working Capital % 226.10 2409.46
Return on Working Capital % 226.10
Liquidity Ratios
Leverage Ratios
Efficiency Ratios

Oil & Gas in India
Industry Profiles
Table 21: Bharat Petroleum Corporation Limited: Annual Financial Ratios (Continued)
Key Ratios 2014 2015 2016 2017 2018

Working Capital Turnover Absolute 79.73 484.64
Working Capital Turnover Absolute 79.73

Oil & Gas in India
Industry Profiles
Table 22: Bharat Petroleum Corporation Limited: Key Employees

S.S. Desai General Manager EandAS, Mumbai Refinery Senior Management
Executive Director - Supply Chain
Suresh K. Nair Senior Management
Optimization
Executive Director - Corporate & Digital
A. Krishnaswamy Senior Management
Strategy
A.K. Kaushik Executive Director - IS Group Refineries Senior Management
Arun Kumar Singh Executive Director - Retail Senior Management
Ashok K. Gupta Chief Procurement Officer Senior Management
C.J. Iyer Executive Director - I/C Mumbai Refinery Senior Management
D. Rajkumar Chairman Executive Board
D. Rajkumar Managing Director Executive Board
Deepak Bhojwani Director Non Executive Board
Dipti Sanzgiri Executive Director - Internal Audit Senior Management
General Manager Project Tech, Petrochem,
George Paul Senior Management
Kochi Refinery
Gopal Chandra Nanda Director Non Executive Board
I. Srinivas Rao Executive Director - LPG Senior Management
Indranil Mitra General Manager Finance, International Trade Senior Management
J. Dinaker Executive Director - International Trade Senior Management
Executive Director - Business Development
J.R. Akut Senior Management
Initiatives /CS & BD
J.S. Shah Executive Director - HR - Kochi Refinery Senior Management
K. B. Narayanan Executive Director - Information Systems Senior Management
K. Padmakar Director Human Resources Executive Board
Executive Director - Refineries Coordination &
K. Ravi Senior Management
Special Projects
K. Sivakumar Chief Financial Officer Senior Management
K.B. Narayanan Executive Director - Information Systems Senior Management
M. Venugopal Secretary Senior Management
Executive Director - Refinery Projects -
M.B. Pimpale Senior Management
Rasayani
Monica Widhani Executive Director - Aviation Senior Management
Executive Director - Business Development -
Pramod Sharma Senior Management
HQ
Prasad K. Panicker Executive Director - I/C (Kochi Refinery) Senior Management
R. P. Natekar Executive Director - Gas Senior Management
R. R. Nair Executive Director - HR (MR & JV Refineries) Senior Management

Oil & Gas in India
Industry Profiles
Table 23: Bharat Petroleum Corporation Limited: Key Employees Continued

R. Wadhawan General Manager E and C, Mumbai Refinery Senior Management
Rajamani Ramaswamy Executive Director - Corporate Treasury Senior Management
Rajesh Kumar Mangal Director Non Executive Board
Ramamoorthy Ramachandran Director Refineries Executive Board
S Ramesh Director Marketing Executive Board
S.K. Agrawal Executive Director - Corporate Affairs Senior Management
Sharad K. Sharma Executive Director - I&C Senior Management
Sujata N. Chogle Executive Director - Legal Senior Management
V. Anand Executive Director - Lubes Senior Management
Vishal Vinod Sharma Director Non Executive Board

Oil & Gas in India
Industry Profiles
8.6. Hindustan Petroleum Corporation Limited
Hindustan Petroleum Corporation Limited (HPCL or 'the company') is an oil and gas company that refines, transports
and markets crude oil and petroleum products. It also carries out the exploration and production (E&P) of
hydrocarbons through its wholly owned subsidiary, Prize Petroleum Company Limited (PPCL). The company has
refineries in Mumbai and Visakhapatnam, which produce a range of petroleum fuels and specialties. It also has lube
blending plants and liquefied petroleum gas (LPG) bottling plants. HPCL marketing infrastructure base includes a
network of installations, retail outlets depots, aviation service stations and LPG distributors. The company operates
and is headquartered in Mumbai, India.
increase of 21.7% over FY2018. In FY2019, the company’s operating margin was 3%, compared to an operating margin
of 3.3% in FY2018. In FY2019, the company recorded a net margin of 2.3%, compared to a net margin of 3% in
FY2018.The company reported revenues of INR748,741.7 million for the first quarter ended June 2019, a decrease of
74.8% over the previous quarter.
8.6.2. Key Facts
Table 24: Hindustan Petroleum Corporation Limited: key facts
Head office: Petroleum House17, Jamshedji Tata Road, Churchgate , Mumbai , Maharashtra, India
Website: www.hindustanpetroleum.com
Ticker: HINDPETRO
Hindustan Petroleum Corporation Limited (HPCL or 'the company') is an oil refining and marketing company in India.
The company's infrastructure includes refineries and liquefied petroleum gas (LPG) bottling plants, and lube blending
plants and storage facilities. As of March 31, 2018, Oil and Natural Gas Corporation Limited (ONGC) has a controlling
stake of 51.11% in the company. The company primarily operates in India.
HPCL classifies its business operations into two segments: Downstream Petroleum and Others.
The Downstream Petroleum segment refines and markets petroleum products. HPCL offers products from crude
petroleum such as petrol, diesel, kerosene, LPG, naphtha, and many other products..The company operates two major
refineries producing a range of petroleum fuels and specialties, in Mumbai and Visakhapatnam. During FY2018, these
refineries processed a combined crude throughput of 18.3 million tons (MT) with a capacity utilization of 116% of the
installed capacity.
The direct sales business line comprises of industrial and commercial (I&C) and lubes and greases. I&C business line
sells fuels, bitumen, Naptha and other bulk products to customers in mining, construction, power plants, shipping,
railways sectors. This business line exports bulk fuels and finished petroleum products. During FY2018, the company
achieved a sales volume of approximately 5 million tons in I&C segment. Lubes business line caters to lubricant and
greases requirement of industrial customers in both private and government sectors including power plants, chemical

Oil & Gas in India
Industry Profiles
units, fertilizer companies, railways, state transport units, army etc. Lubes business line also manages lube sales
through network of lube distributors catering to bazaar market and Lube carrying and forwarding agents (CFAs)
catering to MSME (Micro, Small & Medium Enterprise) segments. During FY2018, HPCL recorded total lube sales of
600,000 metric tons. HPCL’s aviation business unit provides fuelling services to the aviation industry through its vast
network of aviation service facilities (ASFs) covering all the major airports in India. In FY2018, the business unit
achieved sales volume of 729,000 metric tons.
Through its natural gas business, HPCL operates a CNG network at Ahmedabad through one mother station and 21
daughter stations. HPCL currently operates wind farms of 100.9 MW capacity installed in the states of Rajasthan and
Maharashtra. The electricity generated from these farms totaled 169 million kilo-watt hour (KWH) during the year.
HPCL operates a pipeline network of more than 3,370 kilometers (km) for transportation of petroleum products.
HPCL’s major ongoing pipeline infrastructure projects nclude: Mumbai Pune Solapur pipeline (MPSPL), Visakh
Vijayawada Secunderabad pipeline (VVSPL) capacity expansion including offshore tanker terminal (OSTT) / Sunken
Ship (SS) Jetty Sub-Sea Pipeline at Visakh, capacity expansion of Mundra Delhi pipeline (MDPL) and extension line
from Palanpur to Vadodara including greenfield terminal at Vadodara, Ramanmandi Bahadurgarh pipeline (RBPL)
capacity expansion, and Uran Chakan Shikrapur LPG Pipeline (UCSPL). The company operates a solar PV plant at
Bahadurgarh Terminal, Haryana with a capacity of 750 KWp.
HPCL has 156 regional offices facilitated by a supply and distribution infrastructure comprising 41 terminals/tap off
points, 6 lube blending plants, 41 ASFs, 48 LPG bottling plants, 41 depots (including exclusive lube depots), 15,062
retail outlets, 1638 SKO/LOD Dealers, and 4,849 LPG distributorships. During FY2018 the company achieved sold
(including exports) of 36.9 MMT of crude oil. In the LPG business line, the company served 69.3 million customers as
on March 31, 2018. In FY2018, the Downstream Petroleum segment reported revenue of INR2,440,840.3 million,
which accounted for 99.9% of the company's revenue.
In FY2018, the Other segment reported revenue of INR1780.8 million, which accounted for 0.1% of the company's
revenue.
The company also undertakes exploration and production (E&P) of hydrocarbons through its wholly owned subsidiary,
Prize Petroleum Company Limited (PPCL). PPCL also provides services for management of E&P blocks. In FY2018, PPCL
produced 33,752 barrels of crude oil from domestic oil field at Hirapur (Gujarat). PPCL has a wholly owned subsidiary,
Prize Petroleum International Pte Ltd (PPIPL), which has 11.25% and 9.75% participating stakes in two E&P blocks
(T/L1 and T/18P respectively) in Australia. During the FY2018, PPIPL has produced 459,269 BOE (Barrels of Oil
Equivalent) from Yolla Producing Field (T/L1).

Oil & Gas in India
Industry Profiles
Table 25: Hindustan Petroleum Corporation Limited: Annual Financial Ratios
Key Ratios 2014 2015 2016 2017 2018

Growth Ratios
Sales Growth % -7.53 -8.60 8.21 14.02 21.67
Operating Income Growth % -30.29 174.54 38.85 -0.93 13.72
EBITDA Growth % -23.70 87.53 25.25 -0.15 12.44
Net Income Growth % 38.71 211.94 76.18 -12.36 -7.31
EPS Growth % -36.67 341.73 75.77 -12.37 -7.43
Working Capital Growth % 7.49 -78.53 -1534.16 -13.20 23.82
Equity Ratios
Gross Margin % 5.20 7.43 8.14 7.41 8.84
Profit Markup % 5.49 8.03 8.86 8.01 9.70
Return on Equity % 10.66 28.05 39.09 28.27 22.01
Return on Assets % 1.84 6.91 10.99 8.49 6.79
Return on Working Capital % 78.82 51.12 653.83
Liquidity Ratios
Leverage Ratios
Efficiency Ratios
Working Capital Turnover Absolute 61.00 52.47 223.43

Oil & Gas in India
Industry Profiles
Table 26: Hindustan Petroleum Corporation Limited: Key Employees

B. Ravindran Director Treasury Senior Management
R. Radhakrishnan Director Information Systems (Functional) Senior Management
S.P. Gupta Director Joint Ventures Senior Management
A. Pande Director Operations, Distribution and Engg Senior Management
Abhishek Datta Director Human Resources Senior Management
Ajit Singh Director Direct Sales Senior Management
Amar Sinha Director Non Executive Board
Asifa Khan Director Non Executive Board
G. Sriganesh Director Research and Development Senior Management
G.S.V. Prasad Director Retail Senior Management
G.V. Krishna Director Non Executive Board
GSVSS Sarma Director Visakh Refinery Senior Management
J. Ramaswamy Chief Financial Officer Executive Board
J. Ramaswamy Director Executive Board
J.S. Prasad Director Pipelines Senior Management
L. Venugopal Director Mumbai Refinery Senior Management
M. Rambabu Director Refinery Coordination Senior Management
M.V.R. Krishnaswamy Director CPO (Marketing) Senior Management
Mukesh Kumar Surana Chairman Executive Board
Mukesh Kumar Surana Managing Director Executive Board
Pushp Kumar Joshi Director Human Resources Senior Management
R. Kesavan Director Finance Senior Management
R. Sudheendranath Director Lubes Senior Management
Rajneesh Narang Director Marketing Finance Senior Management
Rajnish Mehta Director CSandP and Business Development Senior Management
Rakesh Misri Director LPG Senior Management
Ram Niwas Jain Director Non Executive Board
S Jeyakrishnan Director Marketing Senior Management
S. Paul Director International Trade and Supplies Senior Management
Director Visakh Refinery Modernisation
S. Raja Senior Management
Project

Oil & Gas in India
Industry Profiles
Table 27: Hindustan Petroleum Corporation Limited: Key Employees Continued

S.K. Suri Director Coordination and EA to C and MD Senior Management
S.P. Gaikwad Director Refinery Projects Senior Management
Sandeep Poundrik Director Non Executive Board
Siraj Hussain Director Non Executive Board
Subhash Kumar Director Non Executive Board
Trilok Nath Singh Director Non Executive Board
U. Krishna Murty Chief Vigilance Officer Senior Management
V.K. Jain Director Tax Senior Management
Vinod S Shenoy Director Refineries Senior Management

Oil & Gas in India
Industry Profiles
9. Macroeconomic Indicators
9.1. Country data
Table 28: India size of population (million), 2014–18
Year Population (million) % Growth

2014 1,238.9 1.3%
2015 1,254.0 1.2%
2016 1,269.0 1.2%
2017 1,283.6 1.2%
2018 1,298.0 1.1%
Table 29: India gdp (constant 2005 prices, $ billion), 2014–18
Year Constant 2005 Prices, $ billion % Growth

2014 1,595.4 7.4%
2015 1,716.1 7.6%
2016 1,847.6 7.7%
2017 1,990.6 7.7%
2018 2,146.3 7.8%
Table 30: India gdp (current prices, $ billion), 2014–18
Year Current Prices, $ billion % Growth

2014 2,045.6 9.0%
2015 2,337.2 14.3%
2016 2,671.5 14.3%
2017 3,035.3 13.6%
2018 3,453.7 13.8%
Table 31: India inflation, 2014–18

Oil & Gas in India
Industry Profiles
Year Inflation Rate (%)

2014 7.7%
2015 7.2%
2016 6.7%
2017 6.4%
2018 6.3%
Table 32: India consumer price index (absolute), 2014–18
Year Consumer Price Index (2005 = 100)

2014 215.6
2015 231.0
2016 246.5
2017 262.2
2018 278.7
Table 33: India exchange rate, 2014–18
Year Exchange rate ($/Rs.) Exchange rate (€/Rs.)

2014 60.9620 80.8938
2015 64.1233 71.1453
2016 67.1794 74.3472
2017 65.0484 73.5945
2018 68.4090 80.6918

Oil & Gas in India
Industry Profiles
Appendix
Methodology
MarketLine Industry Profiles draw on extensive primary and secondary research, all aggregated, analyzed, cross-
checked and presented in a consistent and accessible style.
Review of in-house databases – Created using 250,000+ industry interviews and consumer surveys and supported by
analysis from industry experts using highly complex modeling & forecasting tools, MarketLine’s in-house databases
provide the foundation for all related industry profiles
Preparatory research – We also maintain extensive in-house databases of news, analyst commentary, company
profiles and macroeconomic & demographic information, which enable our researchers to build an accurate market
overview
Definitions – Market definitions are standardized to allow comparison from country to country. The parameters of
each definition are carefully reviewed at the start of the research process to ensure they match the requirements of
both the market and our clients
Extensive secondary research activities ensure we are always fully up-to-date with the latest industry events and
trends
MarketLine aggregates and analyzes a number of secondary information sources, including:
- National/Governmental statistics
- International data (official international sources)
- National and International trade associations
- Broker and analyst reports
- Company Annual Reports
- Business information libraries and databases
Modeling & forecasting tools – MarketLine has developed powerful tools that allow quantitative and qualitative data
to be combined with related macroeconomic and demographic drivers to create market models and forecasts, which
can then be refined according to specific competitive, regulatory and demand-related factors
Continuous quality control ensures that our processes and profiles remain focused, accurate and up-to-date
9.2. Industry associations
9.2.1. International Association of Oil & Gas producers (OGP)
209-215 Blackfriars Road, London SE1 8NL, GBR

Tel.: 44 20 7633 0272
Fax: 44 20 7633 2350
www.ogp.org.uk

Oil & Gas in India
Industry Profiles
9.3. Related MarketLine research
9.3.1. Industry Profile
Oil & Gas in China

Oil & Gas in Japan
Oil & Gas in Asia-Pacific
Oil & Gas in South Korea

Oil & Gas in India
Industry Profiles
About MarketLine
In an information-rich world, finding facts you can rely upon isn’t always easy. MarketLine is the solution.
We make it our job to sort through the data and deliver accurate, up-to-date information on companies, industries
and countries across the world. No other business information company comes close to matching our sheer breadth
of coverage.
And unlike many of our competitors, we cut the ‘data padding’ and present information in easy-to-digest formats, so
you can absorb key facts in minutes, not hours.
What we do
Profiling all major companies, industries and geographies, MarketLine is one of the most prolific publishers of business
information today.
Our dedicated research professionals aggregate, analyze, and cross-check facts in line with our strict research
methodology, ensuring a constant stream of new and accurate information is added to MarketLine every day.
With stringent checks and controls to capture and validate the accuracy of our data, you can be confident in
MarketLine to deliver quality data in an instant.
For further information about our products and services see more at: http://www.marketline.com/overview/
Disclaimer
All Rights Reserved.
No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form by any means,
electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the publisher,
MarketLine.
The facts of this report are believed to be correct at the time of publication but cannot be guaranteed. Please note
that the findings, conclusions and recommendations that MarketLine delivers will be based on information gathered
in good faith from both primary and secondary sources, whose accuracy we are not always in a position to guarantee.
As such MarketLine can accept no liability whatever for actions taken based on any information that may
subsequently prove to be incorrect.
Copyright of Oil & Gas Industry Profile: India is the property of MarketLine, a Progressive
Digital Media business and its content may not be copied or emailed to multiple sites or
posted to a listserv without the copyright holder's express written permission. However, users
may print, download, or email articles for individual use.

India Oil

Загружено:

Сведения о документе

Оригинальное название

Авторское право

Доступные форматы

Поделиться этим документом

Поделиться или встроить документ

Параметры публикации

Этот документ был вам полезен?

Это неприемлемый материал?

Авторское право:

Доступные форматы

India Oil

Загружено:

Авторское право:

Доступные форматы

MarketLine Industry Profile

Oil & Gas in India

Reference Code: 0102-2116

Publication Date: September 2019

© MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED Page | 1

1.1. Market value

1.2. Market value forecast

1.3. Market volume

1.4. Market volume forecast

1.5. Category segmentation

1.6. Geography segmentation

1.7. Market rivalry

1.8. Competitive Landscape

© MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED Page | 2

© MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED Page | 3

1.1. Market value ................................................................................................................................ 2

1.2. Market value forecast .................................................................................................................. 2

1.3. Market volume ............................................................................................................................. 2

1.4. Market volume forecast ............................................................................................................... 2

1.5. Category segmentation ............................................................................................................... 2

1.6. Geography segmentation ............................................................................................................ 2

1.7. Market rivalry ............................................................................................................................... 2

1.8. Competitive Landscape ............................................................................................................... 2

2.1. Market definition .......................................................................................................................... 9

2.2. Market analysis ............................................................................................................................ 9

3.1. Market value .............................................................................................................................. 11

3.2. Market volume ........................................................................................................................... 12

4.1. Category segmentation ............................................................................................................. 13

4.2. Geography segmentation .......................................................................................................... 14

5.1. Market value forecast ................................................................................................................ 15

5.2. Market volume forecast ............................................................................................................. 16

6. Five Forces Analysis17

6.1. Summary ................................................................................................................................... 17

6.2. Buyer power............................................................................................................................... 18

6.3. Supplier power ........................................................................................................................... 20

6.4. New entrants.............................................................................................................................. 22

© MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED Page | 4

6.5. Threat of substitutes .................................................................................................................. 24

6.6. Degree of rivalry ........................................................................................................................ 25

7.1. Who are the leading players? .................................................................................................... 26

7.2. What strategies do the leading players follow? ......................................................................... 26

8.1. Reliance Industries Limited ....................................................................................................... 29

8.2. Indian Oil Corporation Limited ................................................................................................... 33

8.3. Shapoorji Pallonji & Co Ltd ........................................................................................................ 40

8.4. Chevron Lummus Global LLC ................................................................................................... 42

8.5. Bharat Petroleum Corporation Limited ...................................................................................... 43

8.6. Hindustan Petroleum Corporation Limited ................................................................................ 49

9.1. Country data .............................................................................................................................. 54

9.2. Industry associations ................................................................................................................. 56

9.3. Related MarketLine research .................................................................................................... 57

About MarketLine ..................................................................................................................................... 58

© MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED Page | 5

Table 7: Reliance Industries Limited: key facts 29

Table 8: Reliance Industries Limited: Annual Financial Ratios 31

Table 9: Reliance Industries Limited: Key Employees 32

Table 10: Indian Oil Corporation Limited: key facts 33

Table 11: Indian Oil Corporation Limited: Annual Financial Ratios 35

Table 12: Indian Oil Corporation Limited: Key Employees 36

Table 13: Indian Oil Corporation Limited: Key Employees Continued 37

Table 14: Indian Oil Corporation Limited: Key Employees Continued 38

Table 15: Indian Oil Corporation Limited: Key Employees Continued 39

Table 16: Shapoorji Pallonji & Co Ltd: key facts 40

Table 17: Shapoorji Pallonji & Co Ltd: Key Employees 41