The Main Project

Chapter- 1 Industry Profile
Indian Oil owes its origins to the Indian government's conflicts with foreign-owned oil companies in the period immediately following India's independence in 1947. The leaders of the newly independent state found that much of the country's oil industry was effectively in the hands of a private monopoly led by a combination of British-owned oil companies Burmah and Shell and U.S. companies Standard-Vacuum and Caltex. An indigenous Indian industry barely existed. During the 1930s, a small number of Indian oil traders had managed to trade outside the international cartel. They imported motor spirit, diesel, and kerosene, mainly from the Soviet Union, at less than world market prices. Supplies were irregular, and they lacked marketing networks that could effectively compete with the multinationals. Burmah-Shell entered into price wars against these independents, causing protests in the national press, which demanded government-set minimum and maximum prices for kerosene--a basic cooking and lighting requirement for India's people and motor spirit. No action was taken, but some of the independents managed to survive until World War II, when they were taken over by the colonial government for wartime purposes. During the war, the supply of petroleum products in India was regulated by a committee in London. Within India, a committee under the chairmanship of the general manager of Burmah-Shell and composed of oil company representatives pooled the supply and worked out a set price. Prices were regulated by the government, and the government coordinated the supply of oil in accordance with defense policy. Wartime rationing lasted until 1950, and a shortage of oil products continued until well after independence. The government's 1948 Industrial Policy Resolution declared the oil industry to be an area of the economy that should be reserved for state ownership and control, stipulating that all new units should be government-owned unless specifically authorized. India remained effectively tied to a colonial supply system, however. In 1949, India asked the oil companies of Britain and the United States to offer advice on a refinery project to make the country more self-sufficient in oil. The joint technical committee advised against the project and said it could only be run at a considerable loss. The oil companies were prepared to consider building two refineries, but only if these refineries were allowed to sell products at a price ten percent above world parity price. The government refused, but within two years an event in the Persian Gulf caused the companies to change their minds and build the refineries. The companies had lost their huge refinery at Abadan in Iran to Prime Minister Mussadegh's nationalization decree and were unable to supply India's petroleum needs from a sterling-area country. With the severe foreign exchange problems created, the foreign companies feared new Iranian competition within India. Even more important, the government began to discuss setting up a refinery by itself. Between 1954 and 1957, two refineries were built by Burmah-Shell and Standard-Vacuum at Bombay, and another was built at Vizagapatnam by Caltex. During the same period the companies found themselves in increasing conflict with the government.
Project Report on Profile Of IOCL
The government came into disagreement with Burmah Oil over the Nahorkatiya oil field shortly after its discovery in 1953. It refused Burmah the right to refine or market this oil and insisted on joint ownership in crude production. Burmah then temporarily suspended all exploration activities in India. Shortly afterward, the government accused the companies of charging excessive prices for importing oil. The companies also refused to refine Soviet oil that the government had secured on very favorable terms. The government was impatient with the companies' reluctance to expand refining capacity or train sufficient Indian personnel. In 1958, the government formed its own refinery company, Indian Refineries Ltd. With Soviet and Romanian assistance, the company was able to build its own refineries at Noonmati, Barauni, and Koyali. Foreign companies were told that they would not be allowed to build any new refineries unless they agreed to a majority shareholding by the Indian government. In 1959, The Indian Oil Company was founded as a statutory body. At first, its objective was to supply oil products to Indian state enterprise. Then it was made responsible for the sale of the products of state refineries. After a 1961 price war with the foreign companies, it emerged as the nation's major marketing body for the export and import of oil and gas.
Chapter- 2 Introduction to the IOCL

2.1 History
A Giant Is Born
Indian Oil was born of the vision of Pandit Jawaharlal Nehru, the first Prime Minister of India, to pursue a policy of self-sufficiency in the petroleum sector as a strategic requirement of a free nation. As part of Panditjis thrust on oil exploration, refining and marketing operations, Indian Refineries Ltd. was established in August 1958 under 100% Government ownership to erect refineries and lays petroleum pipelines. To take care of marketing of petroleum products across the country, Indian Oil Company Ltd., another 100% Government-owned Company, was formed on 30th June 1959. It was entrusted with the task of reaching petroleum products to every nook and corner of the nation, overcoming severe constraints in terms of logistics, terrain and wide seasonal and regional fluctuations in demand.
The marketing activities of Indian Oil Company began on 17th August 1960 with the receipt of the first parcel of 11,390 tones of imported diesel of Russian origin from MV Uzhgorod docked at Pir Pau Jetty in Mumbai. The Indian petroleum market at that time was ruled by goliaths like Burmah Shell, Esso Eastern Inc., Caltex (India) Ltd., Indo-Burmah Petroleum Co. Ltd and Assam Oil Company Ltd. Indian Oil Companys first and foremost challenge was to assert itself in the face of stiff competition from these well-entrenched transnational oil companies operating in India. In its first year of marketing (1960-61), the Companys volume sales was a meager 0.038 million tones (approximately 5% of industry sale) worth Rs. 0.8 crore. The first activity that Indian Refineries Ltd. undertook was the construction of a refinery at Noonmati near Guwahati in Assam with Rumanian help. The refinery was inaugurated by Pandit Jawaharlal Nehru himself in 1962, and processed Upper Assam crude oil received through an Oil India Ltd. (OIL) pipeline from Nahorkatiya. For product evacuation, the 435km Guwahati-Siliguri pipeline and the Siliguri terminal were built and commissioned in 1964. Soon after, it was decided to set up two more refineries, one each at Barauni and Koyali for processing newly-discovered crude oil at Assam and Gujarat respectively. The
Barauni Refinery was built with Russian collaboration and went on stream in July 1964. The Koyali Refinery was also set up with technical assistance of Soviet Russia. Indian Oil acquired control of the refinery from Oil & Natural Gas Commission on 1st April 1965 and commissioned it in October the same year after formal inauguration by the then President of India, Dr. S Radhakrishnan. Meanwhile, on 1st September 1964, Indian Refineries Ltd. was merged in Indian Oil Company to form a vertically integrated entity straddling both refining and marketing functions, and Indian Oil Company was renamed as Indian Oil Corporation Ltd. (Indian Oil). While announcing the historic merger, Prof. Humayun Kabir, the then Union Minister of Petroleum & Chemicals, hoped that Indian Oil would soon handle at least half of the trade in petroleum products. He was proved right within five years. By 1969, the Corporation was handling more than 50% of the total petroleum consumption of the nation and reached 64.2% market participation by the year 1974 During this same decade, India found that rapid industrialization meant a large fuel bill, which was a steady drain on foreign exchange. To meet the crisis, the government prohibited imported petroleum and petroleum product imports by private companies. In effect, Indian Oil was given a monopoly on oil imports. A policy of state control was reinforced by India's closer economic and political links with the Soviet Union and its isolation from the mainstream of western multinational capitalism. Although India identified its international political stance as non-aligned, the government became increasingly friendly with the Soviet Bloc, because the United States and China were seen as too closely linked to India's major rival, Pakistan. India and the USSR entered into a number of trade deals. One of the most important of these trade pacts allowed Indian Oil to import oil from the USSR and Romania at prices lower than those prevailing in world markets and to pay in local currency, rather than dollars or other convertible currencies. For a time, no more foreign refineries were allowed. By the mid-1960s, government policy was modified to allow expansions of foreign-owned refinery capacity. The Indian Oil Corporation worked out barter agreements with major oil companies in order to facilitate distribution of refinery products. The government decided to nationalize the country's remaining refineries. The Burmah-Shell refinery at Bombay and the Caltex refinery at Vizagapatnam were taken over in 1976. The Burmah-Shell refinery became the main asset of a new state company; Bharat Petroleum Ltd. Caltex Oil Refining (India) Ltd. was amalgamated with another state company, Hindustan Petroleum Corporation Ltd., in March 1978. Hindustan had become fully Indian-owned on October 1, 1976, when Esso's 26 percent share was bought out. On October 14, 1981, Burmah Oil's remaining interests in the Assam Oil Company were nationalized, and Indian Oil took over its refining and marketing activities. Half of India's 12 refineries belonged to Indian Oil. The other half belonged to other state-owned companies. By the end of the 1980s, India's oil consumption continued to grow at eight percent per year, and Indian Oil expanded its capacity to about 150 million barrels of crude per annum. In 1989, Indian Oil announced plans to build a new refinery at Pradip and modernize the Digboi
refinery, India's oldest. However, the government's Public Investment Board refused to approve a 120,000 barrels-per-day refinery at Daitari in Orissa because it feared future overcapacity. By the early 1990s, Indian Oil refined, produced, and transported petroleum products throughout India. Indian Oil produced crude oil, base oil, formula products, lubricants, greases, and other petroleum products. It was organized into three divisions. The refineries and pipelines division had six refineries, located at Guwahati, Barauni, Gujarat, Haldia, Mathura, and Digboi. Together, the six represented 45 percent of the country's refining capacity. The division also laid and managed oil pipelines. The marketing division was responsible for storage and distribution and controlled about 60 percent of the total oil industry sales. The Assam Oil division controlled the marketing and distribution activities of the formerly British-owned company. Indian Oil also established its own research center at Faridabad near New Delhi for testing lubricants and other petroleum products. It developed lubricants under the brand names Servo and Servo prime. The center also designed fuel-efficient equipment. The oil industry in India changed dramatically throughout the 1990s and into the new millennium. Reform in the downstream hydrocarbon sector--the sector in which Indian Oil was the market leader--began as early in 1991 and continued throughout the decade. In 1997, the government announced that the Administered Pricing Mechanism (APM) would be dismantled by 2002. To prepare for the increased competition that deregulation would bring, Indian Oil added a seventh refinery to its holdings in 1998 when the Panipat facility was commissioned. The company also looked to strengthen its industry position by forming joint ventures. In 1993, the firm teamed up with Balmer Lawrie & Co. and NYCO SA of France to create Avi-Oil India Ltd., a manufacturer of oil products used by defense and civil aviation firms. One year later, Indo Mobil Ltd. was formed in a 50-50 joint venture with Exxon Mobil. The new company imported and blended Mobil brand lubricants for marketing in India, Nepal, and Bhutan. In addition, Indian Oil was involved in the formation of ten major ventures from 1996 through 2000. Indian Oil also entered the public arena as the government divested nearly 10 percent of the company. In 2000, Indian Oil and ONGC traded a 10 percent equity stake in each other in a strategic alliance that would better position the two after the APM dismantling, which was scheduled for 2002. According to a 1999 Hindu article, Indian Oil Corporation's strategy at this time was "to become a diversified, integrated global energy corporation." The article went on to claim that "while maintaining its leadership in oil refining, marketing and pipeline transportation, it aims for higher growth through integration and diversification. For this, it is harnessing new business opportunities in petrochemicals, power, lube marketing, exploration and production ... and fuel management in this country and abroad." In early 2002, Indian Oil acquired IBP, a state-owned petroleum marketing company. The firm also purchased a 26 percent stake in financially troubled Haldia Petrochemicals Ltd. In April of that year, Indian Oil's monopoly over crude imports ended as deregulation of the Project Report on Profile Of IOCL 5
petroleum industry went into effect. As a result, the company faced increased competition from large international firms as well as new domestic entrants to the market. During the first 45 days of deregulation, Indian Oil lost Rs7.25 billion, a signal that the India's largest oil refiner would indeed face challenges as a result of the changes. Nevertheless, Indian Oil management believed that the deregulation would bring lucrative opportunities to the company and would eventually allow it to become one of the top 100 companies on the Fortune 500--in 2001 the company was ranked 209. With demand for petroleum products in India projected to grow from 148 million metric tons in 2006 to 368 million metric tons by 2025, Indian Oil believed it was well positioned for future growth and prosperity. Indian Oil commissioned India's first product pipeline, the Guwahati - Siliguri pipeline, in 1965. This 435-Km pipeline connecting Guwahati Refinery to different installations was designed to carry about 0.818 MMT of oil per year. From a small beginning with a sale of 0.032 million kilolitres, Indian Oil achieved sales of 10 million kilolitres with a turnover of Rs. 635 crore* and profit Rs. 22.5 crore by the late 60's. From then on, the company has grown from strength to strength and for the fiscal 2007, the Indian Oil group sold 59.29 million tones of petroleum products, including 1.74 million tones of natural gas, and exported 3.33 million tones of petroleum products. Indian Oil is investing Rs. 43,393 crore (US $10.8 billion) during the period 2007-12 in augmentation of refining and pipeline capacities, expansion of marketing infrastructure and product quality up gradation as well as in integration and diversification projects
2.2 Network beyond Compare

As the flagship national oil company in the downstream sector, Indian Oil reaches precious petroleum products to millions of people everyday through a countrywide network of about 34,000 sales points. They are backed for supplies by 166 bulk storage terminals and depots, 101 aviation fuel stations and 89 Indane (LPGs) bottling plants. About 7,100 bulk consumer pumps are also in operation for the convenience of large consumers, ensuring products and inventory at their doorstep. Indian Oil operates the largest and the widest network of petrol & diesel stations in the country, numbering over 17,600. It reaches Indane cooking gas to the doorsteps of over 50 million households in nearly 2,700 markets through a network of about 5,000 Indane distributors Indian Oil's ISO-9002 certified Aviation Service commands over 62% market share in aviation fuel business, meeting the fuel needs of domestic and international flag carriers, private airlines and the Indian Defense Services. The Corporation also enjoys a dominant share of the bulk consumer business, including that of railways, state transport undertakings, and industrial, agricultural and marine sectors. Project Report on Profile Of IOCL 6
2.3 Customer First

At Indian Oil, customers always get the first priority. New initiatives are launched round-theyear for the convenience of the various customer segments. Exclusive XTRACARE petrol & diesel stations unveiled in select urban and semi-urban markets offer a range of value-added services to enhance customer delight and loyalty. Large format Swagat brand outlets cater to highway motorists, with multiple facilities such as food courts, first aid, rest rooms and dormitories, spare parts shop, etc. Specially formatted Kisan Seva Kendra outlets meet the diverse needs of the rural populace, offering a variety of products and services such as seeds, fertilizers, pesticides, farm equipment, medicines, spare parts for trucks and tractors, tractor engine oils and pump set oils, besides auto fuels and kerosene. SERVOXpress has been launched recently as a one-stop shop for auto care services. To safeguard the interest of the valuable customers, interventions like retail automation, vehicle tracking and marker systems have been introduced to ensure quality and quantity of petroleum products.
2.4 Initiatives by Indian Oil

At Indian Oil, corporate social responsibility (CSR) has been the cornerstone of success right from inception in the year 1964. The Corporations objectives in this key performance area are enshrined in its Mission statement: "to help enrich the quality of life of the community and preserve ecological balance and heritage through a strong environment conscience." As a constructive partner in the communities in which it operates, Indian Oil has been taking concrete action to realize its social responsibility objectives, thereby building value for its shareholders and customers. The Corporation respects human rights, values its employees, and invests in innovative technologies and solutions for sustainable energy flow and economic growth. In the past four decades, Indian Oil has supported innumerable social and community initiatives in India. Touching the lives of millions of people positively by supporting environmental and health-care projects and social, cultural and educational programmes. As part of Indian Oil's social responsibility programme, there is an Indian Oil Scholarship scheme, which provides for attractive scholarships to bright students selected on 'merit-cummeans' basis. As part of the scheme, special encouragement is being given to girl students, physically challenged students, and students from J & K as well as the Northeast States. Besides focusing primarily on the welfare of economically and socially deprived sections of society, Indian Oil also aims at developing techno-economically viable and environmentfriendly products & services for the benefit of millions of its consumers, while at the same time ensuring the highest standards of safety and environment protection in its operations. Indian Oil has always been in the forefront in times of national emergencies. Indian Oil People have time and again rallied to help victims of natural calamities, maintaining Project Report on Profile Of IOCL 7
uninterrupted supply of petroleum products and contributing to relief and rehabilitation measures in cash and kind. Indian Oil has also set up the Indian Oil Foundation (IOF) as a non-profit trust to protect, preserve and promote national heritage monuments. As part of its environment-protection initiatives, Indian Oil has invested close to Rs. 7,000 crore in state-of-the-art technologies at its refineries for production of green fuels meeting global standards. With safety, health and environment protection high on its corporate agenda, Indian Oil is committed to conducting business with a strong environment conscience, so as to ensure sustainable development, safe work places and enrichment of the quality of life of its employees, customers and the community. Indian Oil is also committed to the Global Compact Programme of the United Nations and endeavors to abide by the 10 principles of the programme, some of which are already part of the Corporations Vision and Mission statements. It is the firm resolves of Indian Oil people to move beyond business, touch every heart and fuel a billion dreams.
2.5 50 Golden Years in the Service of the Nation

Indias flagship national oil company and downstream petroleum major, Indian Oil Corporation Ltd. (Indian Oil) is celebrating its Golden Jubilee during 30th June - 1st September 2009. Established as an oil marketing entity on 30th June 1959, Indian Oil Company Ltd. was renamed Indian Oil Corporation Ltd. on 1st September 1964 following the merger of Indian Refineries Ltd. (established in August 1958) with it. The integrated refining & marketing entity has since grown into the countrys largest commercial enterprise and Indias No.1 Company in the prestigious Fortune Global 500 listing of the worlds largest corporates, currently at the 116th position. It is also the 18th largest petroleum company in the world.
2.5.1 Indian Oil Today

From a fledgling company with a net worth of just Rs. 45.18 crore and sales of 1.38 million tones valued at Rs. 78 crore in the year 1965, Indian Oil has since grown over 3000 times with a sales turnover of Rs. 285,337 crore, the highestever for an Indian company, and a net profit of Rs. 2,950 crore for 2008-09. Set up with the mandate of achieving self-sufficiency in refining and marketing operations for a nascent nation set on the path of economic growth and prosperity, Indian Oil today accounts for nearly half of Indias petroleum consumption, reaching precious petroleum products to millions of people everyday through a countrywide network of around 35,000 sales points. They are backed for supplies by 167 bulk storage terminals and depots, 101 Project Report on Profile Of IOCL 8
aviation fuel stations and 89 Indane LPG bottling plants. For the year 2008-09, Indian Oil sold 62.6 million tones of petroleum products, including 1.7 million tones of natural gas. The Indian Oil Group of companies owns and operates 10 of Indias 20 refineries with a combined capacity of over 60 MMTPA, accounting for 34% of national refining capacity, after excluding EOU refineries. Projects under execution will take the capacity further to 80 MMTPA by the year 2011-12. Besides setting up state-of-the-art facilities to raise product quality to global standards, Indian Oil has undertaken chartering of ships for crude oil imports on its own and is expanding its basket of crudes and upgrading its refineries to handle a wider array of crudes, including high-sulphur types. As a pioneer in lying of cross-country crude oil and product pipelines, the Corporation crossed 10,000 km in pipeline length and about 70 MMTPA in throughput capacity with the commissioning of the 330-km Paradip-Haldia crude oil pipeline recently. Plans are under execution to add about 4,000 km more by the year 2012. In-house capabilities have enabled the Corporation undertake all pipeline projects on its own and even offer turnkey expertise in techno-economic feasibility studies, design and detailed engineering, project execution, operations, maintenance and consultancy services. Set up in 1972, Indian Oil's R&D Centre has blossomed into a world-class institution and Asia's finest. Besides its pioneering work in lubricants formulation, refinery processes, pipeline transportation and alternative fuels such as ethanol-blended petrol and bio-diesel, the Centre is also the nodal agency of the Indian hydrocarbon sector for ushering in Hydrogen fuel into the country. It has over 214 active patents to its credit, including 113 international patents. Its current R&D focus is on the future business needs of Indian Oil in the areas of petrochemicals, including polymers, and alternative energy sources.
2.5.2 Battle Spurs

As a veteran IOCian put it once, Indian Oil has been genetically coded to serve the Defense services. This was proved beyond doubt during the 1965 war, when Indian Oil People maintained the vital supply of petroleum products to the armed forces with grit and determination. In fact, the Srinagar depot was one of the first bulk storage facilities set up by the Corporation, in 1963. Indian Oils entry into the aviation fuelling business too began with the Defense Services in October 1964 and then to civil aviation a year later, in November 1965. Another opportunity to show its mettle in times of national emergencies came Indian Oils way during the1971 war. In fact, in March 1972, during the war for liberation of Bangladesh, Indian Oil even arranged for crude oil supplies to the Chittagong Refinery. After the war, the Corporation for the first time extended reservation in award of retail outlet dealerships to war widows, disabled Defense personnel, freedom fighters, etc., and continues to honor this tradition even now. At the time of Operation Vijay at Kargil in 1999, despite shelling of its depots at Leh and Kargil, Indian Oil maintained petroleum supplies in the war zone and stood by the families of the war heroes later.
Having proved its mettle in the 1965 war, Indian Oil plunged into frenetic activity with newfound confidence setting up refineries, laying pipelines, building storage terminals and aviation fuel stations, entering new businesses like bitumen, marine bunkering, and appointing dealers and distributors across the country. The Haldia Refinery was set up in 1975, Mathura Refinery in 1982 and Panipat Refinery in 1998. The Corporation is setting up another grassroots refinery at Paradip in Orissa, for commissioning by the year 2012.
2.5.3 Marketing Innovations

Having set up Its first petrol & diesel station (retail outlet) at Kochi in October 1962, Indian Oil currently operates the countrys largest network of retail outlets numbering over 18, 278 with focus on customer convenience. It was the first oil marketing company to introduce the concept of Multipurpose Distribution Centers (MPDCs) at its retail outlets located in rural areas way back in 1975. These MPDCs served as one-stop convenience shops, especially for farmers, and were the harbingers of the modern Kisan Seva Kendra (KSK) successfully introduced by Indian Oil in 2006. As on date, over 2,550 specially formatted Kisan Seva Kendra outlets set up across the country meet the diverse needs of the rural populace, offering a variety of products and services such as seeds, fertilizers, pesticides, farm equipment, medicines, spare parts for trucks and tractors, tractor engine oils and pump set oils, besides auto fuels and kerosene. About 600 such Kendra are being added to the Corporations marketing network every year. Indian Oil has been chosen as the Most Admired Retailer of the Year in the category of Rural Retailing at the India Retail Forum during 2008. As part of customer segmentation, exclusive XTRACARE outlets unveiled in select urban and semi-urban markets offer a range of value-added services to enhance customer delight and loyalty. Large format outlets on highways cater to the needs of motorists, with multiple facilities such as food courts, first aid, rest rooms and dormitories, spare parts shops, etc. SERVOXpress has been launched recently as a one-stop shop for autocare services. To safeguard the interest of the valuable customers, interventions like retail automation, vehicle tracking and marker systems have been introduced to ensure quality and quantity of petroleum products. Over the years, Indian Oil has also launched several branded products, customer-focused specialty products and customer rewards programmes. New generation branded transportation fuels with multifunctional additives are now available in major markets. Initiatives for cashless transactions for customer convenience through co-brand credit cards and fleet cards have met with great success. Indian Oil also enjoys a dominant share of the bulk consumer business, including that of railways, state transport undertakings, and industrial, agricultural and marine sectors. Its ISO9002 certified Aviation Service commands over 63% market share in aviation fuel business, meeting the fuel needs of domestic and international flag carriers, private airlines and the Indian Defense Services.
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2.5.4 Kitchen Revolution

Indane was the first branded product from Indian Oil to hit the market, at Kolkata in October 1965, with product sourced from its Barauni Refinery. Introduction of the clean and efficient LPG as cooking gas ushered in a revolution in millions of households. Encouraged by customer response and to ensure dedicated service, Indian Oil undertook massive augmentation of LPG storage and distribution facilities across the country in 1983. The process continues even today with the setting up of 89 Indane bottling plants, mostly in upcountry locations for quicker turnaround of cylinders. Several innovations were introduced in LPG marketing from time to time, like mounded storage and 19-kg cylinders for bulk customers, reticulated supplies for housing complexes and 5-kg cylinders for customers in inaccessible and hilly terrain. The Corporations in-house IndMax process is aimed at enhancing LPG yield from crude oil refining. Indane cooking gas today reaches the doorsteps of over 53 million households in nearly 2,700 markets through a network of about 5,000 Indane distributors. This includes customers in Andaman & Nicobar and Lakshadweep islands. Autogas (LPG) dispensing stations are being set up in metros and major cities to cater to the growing vehicle population using LPG as fuel.
2.5.5 New Businesses

In pursuit of its Corporate Vision and to achieve the next level of growth,, Indian Oil is currently forging ahead on a well laid-out road map through vertical integration - upstream into oil exploration & production (E&P) and downstream into petrochemicals - and diversification into natural gas marketing, besides globalization of its downstream operations. In petrochemicals, Indian Oil is envisaging Rs. 30,000 crore (US$ 7.4 billion) investment by the year 2011-12. Through the worlds largest single-train Linear Alkyl Benzene (LAB) plant with an annual capacity of 1, 20,000 tones set up at its Gujarat Refinery; the Corporation has already captured a significant market share of LAB in India, besides exports. A world-scale Paraxylene/Purified Terephthalic Acid plant (annual capacities: PX - 3,63,000 tones, PTA 5,53,000 tones) for polyester intermediates is already in operation at Panipat, while a Naphtha Cracker with a capacity of 800,000 tones of ethylene per annum, equipped with downstream polymer units is also coming up at Panipat. In E&P, Indian Oil has bagged eight oil & gas blocks and two Coal Bed Methane blocks under NELP (New Exploration Licensing Policy) rounds in India, in consortium with other companies. It has also acquired participating interest in two onshore blocks in Assam and Arunachal Pradesh. Overseas ventures of the Corporation include two blocks in Sirte Basin and Areas 95/96 in Ghadames basin of Libya, Farsi Exploration Block in Iran, onshore farmin arrangements in Gabon, an onland block in Nigeria and two onshore blocks in Yemen. Indian Oil has incorporated Ind-OIL Overseas Ltd. a special purpose vehicle for acquisition of overseas E&P assets in Port Louis, Mauritius, in consortium with OIL. In natural gas business, Indian Oil is targeting sale of 2 million tones in 2008-09. A technology innovation has been initiated to reach LNG (Liquefied Natural Gas) directly to Project Report on Profile Of IOCL 11
the doorstep of bulk consumers in cryogenic containers for industrial as well as captive power applications. An LNG import terminal is proposed to be set up at Ennore near Chennai. City gas distribution projects are in the pipeline in partnership with other companies.
2.5.6 Group Synergy

As part of inorganic growth through mergers and acquisitions, the refinery operations and marketing activities of Assam Oil Company were vested in Indian Oil in October 1981, and it became the Assam Oil Division of Indian Oil. The old units of the vintage Digboi Refinery (the first refinery in Asia) were revamped and by 1996 it was transformed into a modern refinery of Indian Oil. In the year 2001, Indian Oil acquired the Government stake and management control of stand-alone refiners Chennai Petroleum Corporation Ltd. (CPCL) and Bongaigaon Refinery & Petrochemicals Ltd. (BRPL), substantially enhancing group refining capacity. Subsequently, capacity expansion of CPCL and laying of the 526-km Chennai-TrichyMadurai product pipeline helped further strengthen Indian Oils marketing in South India. Similarly, strategic turnaround initiatives taken by the Indian Oil helped BRPL come out of the red and post profits and merger with the parent company is due soon. Indian Oil acquired IBP in the year 2002 and seamlessly merged it with the parent company in 2007, leading to the formation of a larger and more formidable marketing network. Indian Oil Technologies Ltd. Was launched as a fully-owned R&D subsidiary in the year 2003 to market the Corporations intellectual property. Indian Oil has set up three overseas subsidiaries in Sri Lanka (2003), Mauritius (2004) and the United Arab Emirates (2006). Lanka IOC Ltd. operates about 150 petrol & diesel stations in the island nation, besides an oil terminal and a lube blending plant at Trincomalee. Indian Oil (Mauritius) Ltd. operates a modern petroleum bulk storage terminal at Mer Rouge port, has an overall market share of nearly 20%, and commands a 32% market share in aviation fuelling business in Mauritius. IOC Middle East FZE oversees blending of SERVO lubricants and marketing of petroleum products and lubricants in the Middle East, Africa and CIS countries. In addition, Indian Oil has eight active joint ventures in operation with reputed Indian and overseas partners in the areas of aviation refueling, city gas marketing, LPG and LNG imports and storage, specialty lubricants and additives, terminalling services, etc.
2.5.7 Future Plans

In spite of deregulation of the oil sector and stiff competition from private players, Indian Oil has maintained its position as India's flagship national oil company. Indian Oil People have been in the forefront in adapting to the changing environment and enhancing the organizations capabilities in providing innovative and value-added offerings to the customers. Project Report on Profile Of IOCL 12
Against the backdrop of a rapidly changing business environment, Indian Oil is focusing on certain key issues for sustained growth in the deregulated market. These are: prudent finance and projects management, optimum capacity utilization of refineries and pipelines network, competitive business strategies, customer-focused innovations in product and service offerings, streamlining of business processes, and achieving greater synergy with group companies for enhanced efficiency and effectiveness in the market place. The rising customer aspirations for quality products and services, at par with international standards, have also thrown up myriad opportunities. Indian Oil is making the most of them mainly in expanding its existing customer base, customizing products for specific market segments, streamlining distribution infrastructure, etc. As part of the Marketing Transformation Programme to move closer to the customers, Indian Oil has bifurcated its marketing function vertically into exclusive retail and direct consumer groups, transferred powers from the four regional offices to 16 marketing offices in State capitals, and set up exclusive groups for process & systems optimization, brand management and bio-fuels. The ambitious Project Manthan IT re-engineering project has enabled the organization to assimilate IT and web-based business solutions for real time, integrated transactions and IT solutions for supply chain optimization.
2.5.8 India Inspired

As a leading public sector enterprise of India, Indian Oil has successfully combined its corporate social responsibility agenda with its business offerings, meeting the energy needs of millions of people everyday across the length and breadth of the country, traversing a diversity of cultures, difficult terrains and harsh climatic conditions. The Corporation takes pride in its continuous investments in innovative technologies and solutions for sustainable energy flow and economic growth and in developing techno-economically viable and environment-friendly products & services for the benefit of its consumers
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2.6 Key dates for the IOCL

1948: India's government passes the Industrial Policy Resolution, which states that its oil industry should be state-owned and operated 1958: The government forms its own refinery company, Indian Refineries Ltd. 1959: Indian Oil Company is founded as a statutory body to supply oil products to Indian state enterprise. 1964: Indian Refineries and Indian Oil Company merges to form the Indian Oil Corporation. 1976: The Burmah-Shell and the Caltex refineries are nationalized. 1981: Half of India's 12 refineries are operated by Indian Oil. 1998: The Companys seventh refinery is commissioned at Panipat. 2002: The Indian petroleum industry is deregulated.
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2.7 Indian Oil leads India Inc. in Fortune's 'Global 500' listing for 2009
In a befitting acknowledgement of its ever-improving performance, and a crowning glory in its Golden Jubilee Year (1959-2009), Indian Oil has moved up 11 places, in the just-released Fortune 'Global 500' list of world's largest companies by sales for the year 2009. Placed at 105, Indian Oil leads the pack of seven Indian companies appearing in the list that is based on the performance in of the year 2008, all made possible by a 35000 - strong team of Indian Oil People. Indian Oil has been consistently improving its position in the elite list published annually by the CNN-Time Warner group magazine, Fortune. In the Global 500' club, Indian Oil has steadfastly climbed from 226 in the year 2002 to 191 in 2003, 189 in 2004 to 170 in 2005, 153 in 2006, 135 in 2007, 116 in 2008 and now 105 in 2009. Fortune magazine has considered Indian Oils revenue for the fiscal 2008-09 and has derived the same at US$ 62.993 billion (excluding excise duties). This is the 7th year in succession that Indian Oil has improved its ranking.
Indian Oil has also maintained its leadership status as India's numero uno corporate in the prestigious listing, followed by Tata Steel (258), Reliance Industries (264), Bharat Petroleum (289), Hindustan Petroleum (311), State Bank of India (363) and Oil & Natural Gas Corporation (402). Amongst the petroleum companies in the world, Indian Oils rank is 20.
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Battling odds in a challenging business environment, India's No.1 commercial enterprise and flagship oil major, Indian Oil notched up another year of sterling performance for fiscal 2008-2009. Indian Oils gross turnover (inclusive of excise duty) for the year 2008-09 reached a new high of Rs. 2,85,337 crore up by 15.3% as compared to Rs. 2,47,457 crore in the previous year. The Profit after Tax was Rs. 2,950 crore. The Corporation's refineries surpassed 100% capacity utilization and clocked the highest ever throughput of 51.4 million tones. The Corporation also achieved record sales of 62.6 million tones (including 1.7 million tones of Gas). Breaching the 10,000 km mark in length, the pipelines network registered the highest-ever operational throughput of 59.5 million tones of crude oil and petroleum products. Indian Oil's leap forward in the oil & gas sector, with a well laid-out road map through vertical integration - upstream into oil exploration & production (E&P) and downstream into petrochemicals - and diversification into natural gas marketing, besides globalization of its downstream operations, represents the growth of the Indian corporate sector as well, thus carving a niche for itself in the global arena. For the past 15 years, the 'Global 500' has been the premier list of the world's largest companies. And 2009 is no exception except the bar has been set higher to make it to the list. It is one of the best snapshots of the business world today.
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2.8 Career Opportunities at IOCL

2.8.1 Work Opportunities @ Indian Oil
Indian Oil offers a world of opportunities across more than 600 locations In India including refineries, pipeline, terminals, marketing units such as LPG bottling plants, bulk storage terminals, Aviation Fuel Stations, Retail/Consumer/Lubricants sales, and at the R&D Centre at the entry level. It recruits bright and professionally qualified people for its executive cadre. It follows a mix of open and campus recruitment. For open recruitment advertisements are published in leading national dailies. Interested candidates meeting Indian Oil's requirements can apply online. Applications are then scrutinized and checked for eligibility. The candidates meeting the criteria set by Indian Oil are then called for a written test. Based on their performance in the written test, they are further called for group discussion/ group task and interview. For campus recruitment, Indian Oil visits the IITs, NITs and other reputed technical institutes of the country for recruiting final year engineering students, and prominent business management institutes for final year MBA students. It also recruits Chartered Accountants from various centers of the Institute of Chartered Accountants of India (ICAI). Indian Oil inducts officers at the junior-most level of the management hierarchy (A Grade). First division professional degree holders and post-graduates from relevant disciplines are recruited as management / engineer trainees, accounts officers, medical officers, lab officers, systems officers, communications officers, scientists, etc. Job rotation and inter-location transfers throughout the country facilitate planned development of careers and broaden outlook. Career growth opportunities are based on the individual's performance and contribution to the common goal of sustained growth. Most of Indian Oil's top executives have grown from within -- a testimony to the unlimited opportunities for growth available to the meritorious. Apart from attractive scales and perks, Indian Oil provides its employees many facilities and welfare measures, which are continuously upgraded. The medical facilities extended to the employees are rated amongst the best in the country. Apart from fully equipped hospitals at refinery townships, the Corporation has also nominated hospitals at various locations to meet employee needs. Holiday homes at select locations throughout the country help employees and their families unwind
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2.8.2 Indian Oil on IiPM

To meet the emerging challenges of post-deregulated era of the oil sector, Indian Oil in 1995 set up the Indian Oil Institute of Petroleum Management (IiPM) as an apex centre for learning. The only one of its kind in the petroleum sector, IiPM aims to create a vibrant bridge of knowledge managers to lead the Indian energy companies. Since the last 12 years, IiPM has been conducting global standard international business management programmes for executive along with various management development programmes. The Institute, with its sprawling campus in 16 acres of lush green landscape, has excellent facilities to accommodate over 100 participants at a time. It also has a 10 executive suites block earmarked to accommodate the visiting faculty. The institute is centrally air conditioned with 100% power backup. In addition to the modem infrastructure, the Institute has a well-equipped library, state-ofthe-art computer facility, gym, a swimming pool and other amenities to provide a highly invigorating learning ambience. As an ISO 9001-2000 certificate institute, IiPM has been awarded the Golden Peacock National Award for 'Innovative Training Practices' by the Institute of Directors (IOD), for 1998, 2000, 2005, 2006 and for the year 2007 as well. For the year 2006-2007, the Indian Society of Training & Development (ISTD) also presented the 'Innovative Training Practices' award to IiPM. It also received the 'Best Innovation in Teaching' award from the Association of Indian Management Schools for the year 1998-99. With a mission to align the human resource with corporate business goals and to cater to the pressing organizational needs, IiPM has designed and developed the contents and pedagogy of unique programmes in the areas of Strategic and General Management, Human Resource Management, Marketing Management and Operations & Technology Management to meet the present and future challenges to manage and lead the workplace and organization more effectively. Every year, IiPM conducts more than 35 short duration programmes for about 1200 senior executives. The Institute's programmes have been designed and developed based on the industry experience and inputs. Indian Oil has also been entrusted with the responsibility of training executives from various Iraqi oil companies by the Ministry of Petroleum & Natural Gas (MOP & NG) and the Ministry of External Affairs. Over the last one and half years, around 200 officials from the Iraqi oil industry have already completed their training at IiPM on various facets of the oil industry. Over the years IiPM has evolved into a world-class centre of excellence in leadership development and has become a hub for meaningful interaction between the participants and business leaders from within and outside and best-in-class academia. IiPM, considered as being Indian Oil's crucible, where its divisions, diversities and domain expertise fuse to create the integrated minds of future leadership.
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Indian Oil is also deputing its experts as faculty to impart training to reputed overseas business organizations like Petronas (Malaysia), Oman Refinery Company, Oman (ORC), Abu Dhabi National Oil Company (ADNOC), Qatar Refinery Company, Qatar (QRC), Nigerian Nation Petroleum Company (NNPC), etc. Recently, Indian Oil has sent in-house experts to train executives of various Sudanese oil companies on pipeline operations & maintenance. During the last 12 years of carrying out intensive training development research and consultancy activities, IiPM has sharpened its skills of imparting international standard management development programmes for executives performing in the highly competitive business of oil & gas. The Institute has a long-lasting academic partnership with premium management institutes like the Indian Institute of Managements (IIMs) based at Ahmedabad, Kolkata & Bangalore, Management Development Institute (MDI), Gurgaon, International Management Institute (IMI), Delhi, Faculty of Management Studies (FMS), Delhi, and the Indian School of Petroleum, Dehradun, for designing of programmes and sourcing of expert faculty. IiPM has also developed a comprehensive data bank on expert faculty members which enables designing & development and delivering highly focused market-oriented programmes. It has the unique advantage of having information and access to the best faculty to train on the highly critical and significant areas of the ever-growing petroleum industry. Even the vast bank of the case studies, reading material and video films related to real-life business, gives it a noteworthy edge for imparting management education to working executives of the Indian industry in general and the energy sector in particular
2.9 Brief Profile of Other Players

At present, there are four PSUs namely, IOC, HPC, BPC and IBP (subsidiary of IOC) marketing oil products in the country. In addition, certain private players like Reliance, Essar and Shell have also in marketing rights for transportation fuels. Their marketing presence today, however, is not significant and is limited to about 1370 outlets out of total retail outlet strength of about 29,380. Some additional players like ONGC, who have also been granted marketing rights for transportation fuels, are in the process of setting up retail outlets to integrate across the entire hydrocarbon value chain. The company wise market share in sales is tabled below: It is evident that the share of the private sector in meeting total consumption of refined petroleum products presently stands at around 15%. This proportion is however, expected to grow significantly in the coming years
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2.9.1 Hindustan Petroleum Corporation (HPCL)

HPCL is a Fortune 500 company, with an annual turnover of over Rs 1,03,837 Crores ($25,142 Millions) during FY 2007-08, 16% Refining & Marketing share in India and a strong market infrastructure. Corresponding figures for FY 2006-07 are: Rs 91,448 crores ($20,892Million). The Corporation operates 2 major refineries producing a wide variety of petroleum fuels & specialties, one in Mumbai (West Coast) of 5.5 MMTPA capacities and the other In Vishakapatnam, (East Coast) with a capacity of 7.5 MMTPA. HPCL holds an equity stake of 16.95% in Mangalore Refinery & Petrochemicals Limited, a state-of-the-art refinery at Mangalore with a capacity of 9 MMTPA. In addition, HPCL is progressing towards setting up of a refinery in the state of Punjab in the joint sector. HPCL also owns and operates the largest Lube Refinery in the country producing Lube Base Oils of international standards. With a capacity of 335 TMT. This Lube Refinery accounts for over 40% of the India's total Lube Base Oil production. The vast marketing network of the Corporation consists of Zonal offices in major cities and over 91 Regional offices facilitated by a Supply & Distribution infrastructure comprising Terminals, Aviation Service Stations, LPG Bottling Plants, and Inland Relay Depots & Retail Outlets. The Corporation over the years has moved from strength to strength on all fronts. The refining capacity steadily increased from 5.5 million tones in 1984/85 to 13.70 million metric tones (MMT) presently. On the financial front, the turnover grew from Rs. 2687 crores in 1984-85 to an impressive Rs 1,03,837 Crores in FY 2007-08.
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2.9.2 Bharat Petroleum Corporation (BPCL)

BPCL was incorporated in 1952 when the Government entered into a joint venture with Burma Oil and Shell Petroleum. Subsequently, the company was nationalized by way of acquiring a 100% equity stake in 1976, but subsequently the Government has let go a part of its holding to financial institutions, mutual funds, etc. Today, BPCL is the second largest refining and marketing company in India, and has now three refineries, including KRL and NRL, and another target for disinvestment, that has been stuck up in the middle of the process along with HPCL. Some of the key features of BPCL are BPCL is the second largest refining and marketing company in India. The company along with its subsidiaries owns 15% of the refining capacity and 9% of the product pipelines. It has a 19% market share in the country in terms of sales, and a retail market share of 32.2% in MS, and 24% in HSD. The Company has the third largest retail outlet and LPG distributor network in the country. The Company has also adopted innovative marketing strategies such as introducing value added highway retailing among others, in order to improve its retail sales. In line with the other oil refining and marketing companies Bharat Petroleum (BPCL) also ended up in red for the quarter ended Dec 05. Governments decision not to revise petrol and diesel prices in line with rising crude prices internationally had an adverse impact as the company recorded net losses for a third consecutive quarter. Companys operating margins turned negative and the company made operating losses.
2.9.3 Mangalore Refinery & Petrochemicals (MRPL) ONGC

Set up as a joint venture between HPCL and the Aditya Birla group in 1988 as a standalone refinery, MRPL is now a subsidiary of ONGC, which has a 71% holding in it, and is also planning to buy out the balance HPCL stake. ONGC is expanding the scope of its operations to become an integrated player. The acquisition of MRPL was in order to facilitate its entry in the downstream industry. Apart from MRPL, ONGC is also having a mini plant, with a capacity of 0.13 lakh tones. Moreover, the company also is working on plans to enter the marketing and retailing businesses. The company hopes to put in place a retail network of 1700 outlets in place over the next 3-4 years. The company is anticipated to take advantage of its real estate throughout the country for this purpose. It was widely expected that Indian Oil and India's Oil and Natural Gas Commission (ONGC) would eventually be merged into a single state monopoly company. Both companies grew vastly in size and sales volume but, despite close links, they remained separate. ONGC retained control of most of the country's exploration and production capacity. Indian Oil remained responsible for refining and marketing. In the 1970s, the Oil and Natural Gas Commission of India, with the help of Soviet and other foreign companies, made several important new finds off the west coast of India, but this Project Report on Profile Of IOCL 21
increased domestic supply was unable to keep up with demand. When international prices rose steeply after the 1973 Arab oil boycott, India's foreign exchange problems mounted. Indian Oil's role as the country's monopoly buyer gave the company an increasingly important role in the economy. While the Soviet Union continued to be an important supplier, Indian Oil also bought Saudi, Iraqi, Kuwaiti, and United Arab Emirate oil. India became the largest single purchaser of crude on the Dubai spot market.
2.9.4 Reliance Industries Limited (RIL)

Reliance Petroleum was incorporated in 1991as Reliance Refineries, but changed its name to the former in 1993, and has since merged with its parent company RIL. Its refinery is a standalone, and is at Jamnagar, on the countrys western coast. The refinery was commissioned in July 1999, and it commenced its operations in 2000-01. It is Indias largest standalone refinery, and constitutes 24% of the countrys refining capacity. Additionally, the Jamnagar refinery is also the worlds fifth largest refinery at a single place. RIL also owns 23% of the product pipelines in the country. RIL is a private integrated player in India, and has established a retail network of more than 1300 units. Earlier, RIL had marketing agreements with the oil PSUs till March 2004 to market about 14 million tones of its petroleum products. Now RIL has plans to set up about 4300 more outlets throughout the country subsequently. Its foray into marketing is expected to improve its marketing margins, and complete its attempt at downstream integration. Reliance Industries (RIL), the largest private Sector Company in India came out with disappointing results for the quarter ended Dec 05. The company posted just 2% rise in revenues and a 15% fall in reported PAT after the operating margins slipped 210 basis points. For the quarter ended Dec 05, RILs sales moved up just 2% to Rs. 18168 crore. The operating margins slipped by 210 basis points to 16.4%, which pulled the operating profits down by 10% to Rs. 2976 crore. Small reductions in interest, depreciation and tax provisions could not bring any respite for the company. The refining margins continued to suffer as the company recorded a 46% plunge in the PBIT from refining
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2.10 Indian Oils Values, Vision, Mission, Objectives & Obligations Values with Vision
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Objectives
To serve the national interests in oil and related sectors in accordance and consistent with Government policies. To ensure maintenance of continuous and smooth supplies of petroleum products by way of crude oil refining, transportation and marketing activities and to provide appropriate assistance to consumers to conserve and use petroleum products efficiently.
To enhance the countrys self-sufficiency in crude oil refining and build expertise in
laying of crude oil and petroleum product pipelines. To further enhance marketing infrastructure and reseller network for providing assured service to customers throughout the country. To create a strong research & development base in refinery processes, product formulations, pipeline transportation and alternative fuels with a view to minimising/ eliminating imports and to have next generation products. To optimise utilisation of refining capacity and maximise distillate yield and gross refining margin. To maximise utilisation of the existing facilities for improving efficiency and increasing productivity. To minimise fuel consumption and hydrocarbon loss in refineries and stock loss in marketing operations to effect energy conservation. To earn a reasonable rate of return on investment. To avail of all viable opportunities, both national and global, arising out of the Government of Indias policy of liberalisation and reforms. To achieve higher growth through mergers, acquisitions, integration and diversification by harnessing new business opportunities in oil exploration & production, petrochemicals, natural gas and downstream opportunities overseas. To inculcate strong core values among the employees and continuously update skill sets for full exploitation of the new business opportunities. To develop operational synergies with subsidiaries and joint ventures and continuously engage across the hydrocarbon value chain for the benefit of society at large.
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Financial Objectives
To ensure adequate return on the capital employed and maintain a reasonable annual dividend on equity capital. To ensure maximum economy in expenditure. To manage and operate all facilities in an efficient manner so as to generate adequate internal resources to meet revenue cost and requirements for project investment, without budgetary support. To develop long-term corporate plans to provide for adequate growth of the Corporations business. To reduce the cost of production of petroleum products by means of systematic cost control measures and thereby sustain market leadership through cost-competitiveness. To complete all planned projects within the scheduled time and approved cost.
Obligations
(a)Towards customers and dealers
To provide prompt, courteous and efficient service and quality products at competitive prices.
(b)Towards suppliers
To ensure prompt dealings with integrity, impartiality and courtesy and help promote ancillary industries.
(c) Towards employees

To develop their capabilities and facilitate their advancement through appropriate training and career planning. To have fair dealings with recognised representatives of employees in pursuance of healthy industrial relations practices and sound personnel policies.
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(d)Towards community
To develop techno-economically viable and environment-friendly products. To maintain the highest standards in respect of safety, environment protection and occupational health at all production units.
(e)Towards Defense Services

To maintain adequate supplies to Defense and other para-military services during normal as well as emergency situations.
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2.11 Awards & Accreditations

Bongaigaon Refinery bestowed Indira Gandhi The first among Indian Refineries to receive the award
Paryavaran Puraskar 2006.
H.E. Ms. Pratibha Patil, President of India, presented Mr. Sarthak Behuria, Chairman, the prestigious Indira Gandhi Paryavaran Puraskar 2006 in the 'Organization' category at a function held on June 5, 2009 at Vigyan Bhawan, New Delhi, under the aegis of Ministry of Environment & Forests. A silver lotus trophy, citation along with a cash prize was presented to the Chairman. H. E. President in her lucid address said, "As long there are mountains and green trees on this earth, the earth and our future generations will survive. So to save our future generations the responsibility rests on each citizen of this country to protect, conserve and save the environment." She added that our former Prime Minister Mrs. Indira Gandhi's vision of One Earth-One Environment One Humanity needs to be imbibed and propagated on a global platform
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Bongaigaon Refinery is the first amongst Indian refineries and second among industry, both in the private and public sector, to be presented with this prestigious award, in recognition of its outstanding contribution to environmental conservation and for creating awareness in the Chirang region of Assam. It would be significant to recall that the foundation stone of Bongaigaon Refinery was laid by Late Smt. Indira Gandhi, the then Prime Minister of India, on January 19, 1972. Mr. B. N. Bankapur, Director (Refineries) and Mr. A Saran, Executive Director, along with his team members shared the citation which read, "The Bongaigaon Refinery has done commendable work in preserving natural resources in Assam. The company has been promoting clean and eco-friendly technologies and has been successful in achieving zero effluent discharge and recycling of treated effluent. There has been a co-benefit in the form of a substantial reduction in water requirement. A herbal and orchid garden 'Nandan Kanan' has been developed for promoting traditional knowledge. Over 66, 000 trees of different species have been planted." The Environmental Prize Committee constituted under the Chairmanship of Hon'ble Vice President of India select the awardees. The nomination for the award can be recommended by any citizen of India. Self nominations are not considered. Short listing of the nomination is carried out by three Expert Members selected by the Prime Minister's Office comprising the Speaker of the Lok Sabha, Minister of Environment & Forests, Secretary of the Ministry of Environment & Forests and 3 expert members.
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2.12 ORGANIZATIONAL CHART of IOCL
IOCL
PIPELINE DIVISION
REFINERY DIVISION
MARKETING DIVISION
ASSAM OIL DIVISION
NORTHERN REGION
EASTERN REGION
SOUTHERN REGION
WESTERN REGION
UPSO
RSO
PBSO
DSO
Here:UPSO- Uttar Pradesh State Office RSO- Rajasthan State Office PBSO- Punjab State Office DSO- Delhi State Office
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Chapter-3 Research Methodology
Meaning of Research
Redman and Mory define research as a systemized effort to gain new knowledge. Some people consider research as a movement, a movement from the known to the unknown. Research is an academic activity and as such the term should be used in a technical sense. According to Clifford Woody, research comprises defining and redefining problems, formulating hypothesis or suggested solutions; collecting, organizing and evaluating data; making deductions and reaching conclusions; and at last carefully testing the conclusions to determine whether they fit the formulating hypothesis.
Objectives of Research
The purpose of research is to discover answers to questions through the application of scientific procedures. The main aim of research is to find out the truth which is hidden and which has not been discovered as yet. Though each research study has its own specific purpose but the research objectives can be listed into a number of broad categories, as following:1. To gain familiarity with a phenomenon or to achieve new insights into it. Studies with this object in view are termed as exploratory or formulative research studies. 2. To portray accurately the characteristics of a particular individual, situation or a group. Studies with this object in view are known as descriptive research studies. 3. To determine the frequency with which something occurs or with which it is associated with something else. Studies with this object in view are known as diagnostic research studies. 4. To test a hypothesis of a casual relationship between variables. Such studies are known as hypothesis-testing research studies.
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Objectives of the Project

To understand the petroleum sector of India. To study the company profile of IOCL. To study the organizational chart followed by IOCL. To study products produced by IOCL. To study in brief the financial aspects of IOCL. To study the strategies followed by IOCL to capture the market share. To study the SWOT & PEST for IOCL.
Significance of Research
All process is born of inquiry. Doubt is often better than overconfidence, for it leads to inquiry and inquiry leads to invention. Is a famous Hudson Maxim in context of which the significance of research can well be understood. Increased amounts of research make progress possible. Research inculcates scientific and inductive thinking and it promotes the development of logical habits of thinking and organization. The role of research in several fields of applied economics, whether related to business or to the economy as a whole, has greatly increased in modern times. The increasing complex nature of business and government has focused attention on the use of research in solving operational problems. Research, as an aid to economic policy, has gained added importance, both for government and business.
Research Methodology
Research methodology is a way to systematically solve the research problem. It may be understood as a science of studying how research is done scientifically. In it we study the various steps that are generally adopted by a researcher in studying his research problem along with the logic behind them. It is necessary for the researcher to know not only the research methods or techniques but also the methodology.
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Data Collection Source

Information can be collected through both primary and secondary sources.
Primary Data
In some cases the researchers may realize the need for collecting the first hand information. As in the case of everyday life, if we want to have first hand information or any happening or event, we either ask someone who knows about it or we observe it ourselves, we do the both. Thus, the two method by which primary data can be collected is observation and questionnaire.
Secondary Data
Any data, which have been gathered earlier for some other purpose, are secondary data in the hands of researcher. The data collected for this project has been taken from the secondary source. Sources of secondary data are: Internet Magazines Publications
Newspapers
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Chapter- 4 Products & Strategy

4.1 Products
Flagships Brands 1) Servo
Indian Oil's SERVO is the largest selling lubricant brand in India, with one of the largest ranges of automotive and industrial lubricants. Developed exclusively at Indian Oil's world-class R&D Centre at Faridabad, there is a SERVO lubricant for virtually every single application. With over 42% market share and 450 grades, the country's leading SERVO brand lubricants from Indian Oil are sold through over 8,100 Indian Oil petrol/diesel stations, over 1,300 SERVO Shops and a countrywide network of bazaar traders.
2) Indane
Indian Oil reaches Indane brand cooking gas to the doorsteps of over 35 million households in over 2,000 markets through the country's largest network of over 4,000 distributors. The Corporations 82 LPG plants bottle about 3,380 thousand tones of LPG per annum. Compact 5 kg Indane cylinders were launched in 75 rural and hilly markets of 11 states, i.e. J & K, Himachal Pradesh, Punjab, Uttar Pradesh, Arunachal Pradesh, Meghalaya, Assam, Orissa, West Bengal, Madhya Pradesh and Tamil Nadu, with plans to introduce them in 500 markets in rural areas.
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3) Premium Fuel
The launch of premium fuels - XtraPremium and XtraMile (originally IOC Premium and Diesel Super respectively), marks a new beginning for Indian Oil and its customers. XtraPremium is, in fact, the only petrol in India with 91 Octane and doped with Multifunctional Additives. The maiden launch of these branded fuels took place in Delhi on Sept. 24, 2002. Subsequently, XtraPremium sales have been extended to 315 cities and 950 petrol & diesel stations, and XtraMile to 1050 cities and 2000 petrol and diesel stations by the end of the financial year 2008 2009.
4) Aviation Service Indian Oils ISO-9002 certified Aviation Service, with 68% market share, meets the fuel and lubricants needs of domestic and international flag carriers, Defense Services and private aircraft operators through 93 aviation fuelling stations. Between one sunrise and the next, Indian Oil refuels over 900 aircrafts. In fact, the refueling never stops and neither does our customer service, which is round the clock. The wings foreign exchange earnings during the year 2008-09 touched Rs. 1015 crore.
5) Auto Gas Auto gas (LPG) has been introduced in Hyderabad, Bangalore and Mumbai markets. This alternative fuel is a good business proposition in the long term, and Indian Oil intends to further expand its marketing in a big way.
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Indian Oil is not only the largest commercial enterprise in the country it is the flagship corporate of the Indian Nation. Besides having a dominant market share, Indian Oil is widely recognized as Indias dominant energy brand and customers perceive Indian Oil as a reliable symbol for high quality products and services. Benchmarking Quality, Quantity and Service to world-class standards is a philosophy that Indian Oil adheres to so as to ensure that customers get a truly global experience in India. Our continued emphasis is on providing fuel management solutions to customers who can then benefit from our expertise in efficient sourcing and least cost supplies keeping in mind their usage patterns and inventory management. Indian Oil is a heritage and iconic brand at one level and a contemporary, global brand at another level. While quality, reliability and service remains the core benefits to our customers, our stringent checks are built into operating systems, at every level ensuring the trust of over a billion Indians over the last four decades. The companys Retail Brand template of XtraCare (Urban), Swagat (Highway) and Kisan Seva Kendras (Rural) are widely recognized as pioneering brands in the petroleum retail segment. Indian Oils leadership extends to its energy brands - Indane LPG, SERVO Lubricants, Autogas LPG, XtraPremium Branded Petrol, XtraMile Branded Diesel, XtraPower Fleet Card, Indian Oil Aviation and XtraRewards cash customer loyalty programme. Recently Indian Oil has also introduced a new business line of supplying LNG (Liquefied natural gas) by the cryogenic transportation. The branding called "LNG at Doorstep". LNG headquarters are located in scope complex, Lodhi Road Delhi.
Indian Oil Aviation Service

Indian Oil Aviation Service is a leading aviation fuel solution provider in India and the mostpreferred supplier of jet fuel to major international and domestic airlines. Between one sunrise and the next, Indian Oil Aviation Service refuels over 1500 flights from the bustling metros to the remote airports linking the vast Indian landscape, from the icy heights of Leh (the highest airport in the world at 10,682 ft) to the distant islands of Andaman & Nicobar. Jet fuel is a colorless, combustible, straight-run petroleum distillate liquid. Its principal uses are as jet engine fuel. The most common jet fuel worldwide is a kerosene-based fuel classified as JET A-1.The governing specifications in India are IS 1571: 2001 (7th Rev). Indian Oil is India's first ISO-9002 certified oil company conforming to stringent global quality requirements of aviation fuel storage & handling. Indian Oil Aviation also caters to the fuel requirements of the Indian Defense Services, besides refueling VVIP flights at all the airports and remote heli-pads/heli-bases across the Indian subcontinent .
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Indian Oil Aviation group regularly organizes International Aviation conferences that act as a vital information facilitator with participation from leading international and all domestic airlines, allied industries, statutory aviation authorities and government agencies from over 35 countries. Indian Oil is the only oil company in India to market the widest possible range of fuels used by the aviation industry in India- JP-5, Avgas 100LL, Methanol Water Mixture, Jet A-1 and aviation lubricants, etc. Aviation Turbine Fuel (ATF) is dispensed from specially designed refuelers, which are driven up to parked airplanes and helicopters. Major airports have hydrant refueling systems that pump the fuel right up to the filling outlets on the tarmac through underground pipelines for faster refueling. Essentially, ATF is pumped into an aircraft by two methods: Overwing and Underwing. Overwing fuelling is used on smaller planes, helicopters, and piston-engine aircraft and is similar to automobile fuelling - one or more fuel ports are opened and fuel is pumped in with a conventional pump. Underwing fuelling, also called single-point is used on larger aircraft. To ensure that you receive the best service, every one of our 101 AFSs follows specific quality audits based on a Quality Control Index System benchmarked to global standards. In addition, 15 Quality Certification Laboratories provide complete specification tests roundthe-clock. Ensuring that these standards are always upheld, there is a back up of a highly skilled, qualified and dedicated team of officers and refueling crew. Indian Oil has a strategic partnership with Air BP, the world leader in aviation business. Indian Oil regularly organizes seminars, symposiums and workshops to constantly interact with its partners, which apart from being a two-way channel of communication, helps us to stay abreast with advances in technology.
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4.1.1 Refineries
Indian Oil controls 10 of India's 18 refineries - at Digboi, Guwahati, Barauni, Koyali, Haldia, Mathura, Panipat, Chennai, Narimanam and Bongaigaon - with a current combined rated capacity of 47.50 million metric tones per annum (MMTPA) or 950 thousand barrels per day (bpd).
Indian Oil accounts for 41% of India's total refining capacity.
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Refineries under IOCL
Digboi Refinery, in Upper Assam, is India's oldest refinery and was commissioned in 1901. Originally a part of Assam Oil Company, it became part of Indian Oil in 1981. Its original refining capacity had been 0.5 MMTPA since 1901. Modernization project of this refinery has been completed and the refinery now has an increased capacity of 0.65 MMTPA. Guwahati Refinery, the first public sector refinery of the country, was built with Romanian collaboration and was inaugurated by Late Pt. Jawaharlal Nehru, the first Prime Minister of India, on 1 January 1962. Barauni Refinery, in Bihar, was built in collaboration with Russia and Romania. It was commissioned in 1964 with a capacity of 1 MMTPA. Its capacity today is 6 MMTPA. Gujarat Refinery, at Koyali in Gujarat in Western India, is Indian Oils largest refinery. The refinery was commissioned in 1965. It also houses the first hydrocracking unit of the country. Its present capacity is 13.70 MMTPA. Haldia Refinery is the only coastal refinery of the Corporation, situated 136 km downstream of Kolkata in the Purba Medinipur (East Midnapore) district. It was commissioned in 1975 with a capacity of 2.5 MMTPA, which has since been increased to 5.8 MMTPA Mathura Refinery was commissioned in 1982 as the sixth refinery in the fold of Indian Oil and with an original capacity of 6.0 MMTPA. Located strategically between the historic cities of Delhi and Agra, the capacity of Mathura refinery was increased to 7.5 MMTPA. Panipat Refinery is the seventh refinery of Indian Oil. The original refinery with 6 MMTPA capacities was built and commissioned in 1998. Panipat Refinery has doubled its refining capacity from 6 MMT/yr to 12 MMTPA with the commissioning of its Expansion Project.
Subsidiary refineries Bongaigaon Refinery (2.95 MMTPA), Chennai Petroleum (9.5 MMTPA)
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4.1.2 Pipelines of IOCL

Indian Oil owns and operates India's largest network of cross-country crude oil and product pipelines of 7,000 km, with a combined capacity of 43.45 MMTPA. Indian Oil also operates two Single Buoy Mooring systems in the high seas off Vadinar coast in the Gulf of Kutch for receipt of crude oil.
Indian Oil owns & operates 76% of India's downstream pipeline network.
As the backbone of Indian Oils refining and marketing operations, its 9,300 km pipelines network registered the highest ever operational throughput of 57.12 million tones during the year. Compared to the previous year, the product pipelines achieved a 10.45% increase in throughput at 21.27 million tones while the crude oil pipelines registered a 10.54% growth at 35.85 million tones. During the year, Indian Oil opened new facilities at Mundra port on the west coast for handling of heavy crude oil and blending of heavy and normal grades.
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4.1.3 Marketing
Indian Oils countrywide network of over 22,000 retail sales points is backed for supplies by its extensive, well spread out marketing infrastructure comprising 182 bulk storage terminals, installations and depots, 92 aviation fuel stations and 78 LPG bottling plants. Its subsidiary, IBP Co. Ltd, is a stand-alone marketing company with a nationwide retail network of over 1900 sales points. Indian Oil touches every customer's heart by keeping the vital oil supply line operating relentlessly in every nook and corner of India. Indian Oils vast distribution network of over 22,000 sales points ensures that essential petroleum products reach the customer at the "right place and right time".
Indian Oil caters to over 53% of India's petroleum consumption.
Indian Oil has one of the largest petroleum marketing and distribution networks in Asia, with over 35,000 marketing touch points. Its ubiquitous petrol/diesel stations are located across different terrains and regions of the Indian sub-continent. From the icy heights of the Himalayas to the sun-soaked shores of Kerala, from Kutch on India's western tip to Kohima in the verdant North East, Indian Oil is truly 'in every heart, in every part'. Indian Oil's vast marketing infrastructure of petrol/diesel stations, Indane (LPG) distributorships, SERVO lubricants & greases outlets and large volume consumer pumps are backed by bulk storage terminals and installations, inland depots, aviation fuel stations, LPG bottling plants and lube blending plants amongst others. The countrywide marketing operations are coordinated by 16 State Offices and over 100 decentralized administrative offices
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4.2 STRATEGY
4.2.1 Current strategies as a leader Defending its market share
Market leader in branded fuels with 60% market share Branded fuel growth rate is 75% YOY for IOCL
Porters generic strategies

Overall cost leadership Differentiation Focus
Strategic alliance
Product or service alliance Promotional alliance Logistic alliance Pricing collaboration
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Steps followed in Strategic Formulation
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4.2.2 Suggested Strategy for 2012
Blended fuel brand repositioning has to be done, as they are not able to capture the intended turnover response from the market Company needs to improve upon upstream R & D so as to be an integrated energy company and be self-sufficient. Company should go for independent Oil block acquisition in future after attaining sufficient experience in that area. India 70% unexplored sedimentary blocks provide a potential opportunity for the company for diversification Global competitiveness-With Governments relaxation in FDI norms,(up to 49% allowed in refining sector),Indian Government might reduce its share in IOCL in order to streamline fund raising and compete globally.
Trans-national: IOCL must go bullish on future acquisitions of oil blocks either in India or abroad Diversified: IOCL must push for the 5% ethanol (jatropha) blended diesel to promote bio-fuels Integrated Energy Company: IOCL should market itself as a integrated energy company by venturing into diversified energy sources like, solar power expansion will increase in a large scale and bio-fuel plantation will be on increased scaled.
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4.2.3 MANAGERIAL USEFULLNESS OF STUDY
ANALYSIS ON THE BASIS OF 4 S MODEL OF Mc KINSEY
MODEL FOLLOWED:
1. Strategy 2. Style 3. Skills 4. Structure of the marketing division
1. STRATEGY:
Strategies can be defined as the policies or the guidelines, which are being used in any organization. Strategies of any company can be changed with the change in business atmosphere or the increase in the competition. But there can be some strategies in the organization, which will remain the same over a period of time because of their nature.
Internal Strategies: To provide the quality products. To provide various schemes to the customers as already launched like IOC Extra and Credit Card etc. To provide the products with best satisfaction to the retailers (Industries, Aviation) as well as to the customers. To concentrate more on customer orientation than profit maximization. To provide better working environment to the employees to attract the potential employees as well as satisfy the present employees. Project Report on Profile Of IOCL 46
Broad Area:
IOCL has been developed all over the country. There is no area left in the country where Indian Oil doesnt have its retail outlets. It has its retail outlets not only in urban area but also in rural areas .It has its retail outlets in under developed areas like J&K, Himachal Pradesh, Leh etc. where the means of transportation is very costly as well as rare. In J&K in spite of terrorism and Kargil war, Indian Oil has provided the required oil without fear. So it has helped in nations security and integration also. Indian Oil is providing its services to Airlines also. Aviation is one of the major customers of the company and it is providing the best quality product to Airlines. It is providing the facility inside the Airport only so that the requirements can be met at any time.
EXPORTS:
Indian Oil exports its products mainly to Kenya, Bangladesh, and Dubai etc. Most of the times the NAPHTA is being exported to these countries. But the company has to face losses on these exports. Though it has a big domestic market, at times In case of excess the products are exported. It also exports Lubricants to Dubai, Kenya etc. with profits because of regular dealings with these countries.
2. STYLE:
Since with the increase in the competition and new inventions, training has become the necessity of any organization. Indian Oils employees are being trained from time to time as per requirement. The various measures of training adopted in IOCL are: Off the job training. Lecture system. Group discussion. Seminars etc.
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Since all these measures of training are indirect and less motivating because the employees are not actually put into work. So the company should try to adopt the system of On the Job Training where the employees are actually given hands on work for what they are being trained. This system is more effective and motivating than any other system.
3. SKILLS:
The term Recruitment means to attract the potential employees to apply in the organization. It is also one of the most important systems in any organization. The success of any company depends on its employees. In IOC people are being recruited on the basis of the qualification required for the particular job. The written examinations are conducted as per the requirements and the selected candidates are called for an interview. There are no direct placements in the company. First division professional degree holders and Post Graduates from relevant disciplines are recruited as management/engineering trainees, officers, accountants, medical officers, lab officers, system officers, communication officers, scientists etc.
4. STRUCTURE FOR THE MARKETING DIVISION

It can be broadly divided into 3 categories as represented by the following ways
MARKETING
AVIATION
L.P.G
PETROL
AIRLINES
AIRFORCE
There are only 2 major customers for aviation products namely airlines and air force. After the deregulations of aviation products in 1992, maintaining high market share has been a challenging task for the company. For marketing of L.P.G, the company has divided the total market into various areas headed by respected area officers Project Report on Profile Of IOCL 48
4.2.4 Indian Oil Major Projects

Indian Oil continues to lay emphasis on infrastructure development. Towards this end, a number of schemes have been initiated with increasing emphasis on project execution in compressed schedules as per world benchmarking standards. Schemes for improvement and increased profitability through debottlenecking / modifications / introduction of value added products are being taken up in addition to grassroots facilities. Project systems have been streamlined in line with ISO standards.
1) GRASSROOTS REFINERY - CUM PETROCHEMICALS PROJECT AT PARADIP

Project Cost: Rs. 25,646 crore Expected Commissioning: By end of 2011-12 Benefit: The project will help in partly meeting deficit of distillates viz. LPG, Naphtha, MS, Jet/Kero, Diesel and other products, in the eastern part of the country. The complex will generate intermediate petrochemicals feedstock. Brief Description: A 15 MMTPA grassroots refinery-cum-petrochemicals complex (along with a product pipeline to Ranchi) is planned to be constructed at Paradip in the state of Orissa. The Refinery will have, apart from a Crude and Vacuum Distillation Unit, a Hydro cracking Unit, a Delayed Coker Unit and other secondary processing facilities. It will also have an integrated gasification combined cycle plant for production of steam, power and hydrogen from petroleum coke for captive use in the refinery. This will be the most modern refinery in India with nil residue production and the products would meet stringent specifications. 3344 acre of land has been taken over by Indian Oil and necessary infrastructure development jobs prior to setting up of the main refinery are progressing. This complex envisages production of integrated petrochemicals like Paraxylene, Polypropylene, and Styrene.
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2)
RESIDUE
UPGRADATION
AND
MS/HSD
QUALITY
IMPROVEMENT PROJECT AT GUJARAT REFINERY

Project Cost: Rs. 5,693 crore Expected Commissioning: January 2010 Benefit: The project envisages setting up of a number of units like VGO-HDT, ATF-Merox, FCC-Merox, LPG-Merox, ISOM, Coker, DHDT, HGU (PDS) and SRU. Brief Description: The objectives of the project are multifold. It shall ensure meeting product quality requirement of MS/HSD to EURO-III/IV levels, processing increased quantity of high sulphur crude and improvement in distillate yield. Last Updated: August 09, 2007
3) NAPHTHA CRACKER AND POLYMER COMPLEX AT PANIPAT (HARYANA)

Project Cost: Rs. 14,439 crore Expected Commissioning: November 2009 Benefit: This project is a cornerstone for Indian Oil's entry into petrochemicals and a new business line for growth. For the State of Haryana, this project shall lay the foundation for creation of a world-class petrochemicals hub, which will engender significant industrial activity in the coming years. Brief Description: The project envisages setting up of a Naphtha Cracker based on captive utilization of naphtha from Panipat, Mathura and Koyali refineries of Indian Oil. With a capacity of 800,000 MT/year of ethylene production, the Cracker complex will have associated units viz. hydrogenation, butadiene extraction, benzene extraction etc. besides downstream polymer units like swing unit (LLDPE/HDPE), a dedicated HDPE unit, Polypropylene unit and MEG unit
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4) CHENNAI-BANGLORE PRODUCT PIPELINE

Project Cost: Rs. 232.11 crore Expected Commissioning: July 2009(or 24 months from Forest & Environment Clearance) Benefit: The project consists of laying 14"/12" diameter 290 km long product pipeline from CPCL Refinery (Manali, Chennai) in Tamil Nadu to Banglore in Karnataka Brief Description: The pipeline would ensure uninterrupted, regular and economical transportation of petroleum products to Bangalore-fed areas in a cost-effective manner.
5) DADRI-PANIPAT R-LNG SPUR PIPELINE

Project Cost: Rs. 250.66 crore Expected Commissioning: January 2009 Benefit: The 132 km long 30 inch diameter spur line carrying regassified LNG (R-LNG) will stretch from GAIL Indias Dadri terminal in UP to Panipat. Brief Description: The proposed R-LNG pipeline would provide for an economical means of feeding natural gas to Panipat refinery
6) AUGMENTATION OF MUNDRA PANIPAT CRUDE OIL PIPELINE

Project Cost: Rs. 204.74 crore Expected Commissioning: December 2008 Brief Description: Project consists of laying a 22" diameter 20 KM long loopline in KotBeawar section and conversion of Radhanpur scraper station to pumping station while adding pumping units at Mundra, Kot, Sanganer and Rewari. Benefit: This is a low cost expansion scheme of Mundra-Panipat crude oil pipeline system for meeting the additional crude oil requirement of Panipat refinery to the tune of 3 MMTPA.
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7) PANIPAT-JALANDHAR LPG PIPELINE

Project Cost: Rs.186.72 crore Expected Commissioning: August 2008 Benefit: The pipeline with feed Indian Oils LPG bottling Plants at Nabha and Jalandhar in a cost-effective manner. Brief Description: Project consists of laying a 10" diameter 275 KM long LPG pipeline from Kohand (near Panipat refinery) in Haryana to Jalandhar via Nabha in Punjab.
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Chapter-5 SWOT & PEST Analysis of IOCL

5.1 SWOT Analysis for IOCL
INTERNAL ENVIRONMENT
5.1.1 Strengths
o IOC controls 10 refineries, by virtue of which it has a total share of around 40% of Indias overall refining capacity. IOC has also acquired equity stakes in CPCL and BRPL, and in 2001, these refineries became subsidiaries of IOC. o 58% of IOCs refining capacity is located in the Northern and Western regions, which are high demand and high growth areas. o Although its refineries are located the interior of the country, and not near the major ports IOC has a very strong distribution network by virtue of having a share of 48% in the countrys product pipelines. The total capacity of these product pipelines is 49.79 MMT. o IOC also acquired management control of the marketing company IBP, thereby strengthening its position in these activities. It also has a dominant share in all segments in terms marketing infrastructure. Its network includes 19830 retail outlets, 8000 LPG distributors, and 6492 kerosene/LDO dealers. o By virtue of entering into extensive joint venture agreements, and of its own initiative as well, the company has a presence in various other related activities such as petroleum storage, pipelines, lube additives, exploration, petrochemicals, gas, training and consultancy, etc. o The company has already entered overseas markets such as Sri Lanka, Maldives, and Oman and is presently considering entering Turkey through a JV. IOC is also weighing the possibility of entering Indonesia. IOC has also started exploring the overseas markets for increasing its scope of operations. Its interests include downstream activities in Sri Lanka, Maldives, Oman, and Nepal; interest in the lubes business in Maldives, Dubai, Bangladesh, Sri Lanka, etc; among others.
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5.1.2 Weakness:The company is the market leader in the industry, but still it has many weaknesses. The list is given below. o The major weakness for the company is the R&D. The company starts working on it. o The petrochemical product development technology is another weakness for the company. o The technological drawback, as compared to some major foreign player is another weakness for the company.
EXTERNAL ENVIRONMENT
5.1.3 Opportunity: The IOCL has much opportunity in the present market conditions. This is because the petroleum products are a need for everyone and still contain a lot of scope for customization. The various opportunities are listed below. o Since the company has the maximum no. of out lets and also the maximum no. of refineries in India, it can very easily go for extension at any point of time, and can introduce any new products, which will get support from its huge market network. o The Company can make the buying process easier for the customers, by implying many more schemes in the range of XTRAPOWER AND XTRAREWARD. o The Company can think over the issue to build its own pipelines, so that it will be an independent player and it will also support its aviation fuel supply. o The Company has a great scope in E&P. It is already involves in E&P but only in a very limited scale.
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5.1.4 Threats: Since the company is the market leader in the field, so faces maximum threats from other players and many other issues. The list of threats is given below. o The foreign players with more advanced technology are the biggest treat for the company. o The crude oil supply is also a big issue in front of the company, because the company cannot fix its price and so, some time had operated in loss also. It is the biggest problem because the maximum part of their crude is been imported. o In future the market will welcome more private players, which will eat up its market share. o If the Govt. Policies allow the private players to set their own price, the private player can seriously harm the market share of IOCL.
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5.2 PEST ANALYSIS

5.2.1 Political and legal environment
Prices governed by Mo.0.130PNG Regulator is PNGRB Geo political tensions
5.2.2 Economic environment

Projected GDP growth rate of 7% Recent high inflation attributed to spike in crude oil price 2.63 mb/day oil consumption First reason for the Indian trade deficit
5.2.3 Socio cultural environment

70% of India lives in villages Customer psychology is also different for different regions
5.2.4 Technological environment

Increased R&D expenditures by the company First experimental H-CNG at R&D center Faridabad Latest technology development for bio diesel production
5.2.5 Natural environment

Increased emphasis on environmental policies by Govt. Mission of the company- to develop environmental friendly products
Project Report on Profile Of IOCL 56
Won SCOPE meritorious award for environmental excellence
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Chapter- 6 Conclusions
bank. Utmost care is taken while implementing all the control measures and there is no deviation from the laid down procedures. Various checklists of control have been made as exhaustive as possible in dealing with the banking transactions. The functions, activities, roles and responsibilities of the concerned work groups are also being performed very smoothly. Undoubtedly, it is because of this incredible expertise an synchronize functioning that Indian Oil has a monopoly in the down stream sector, but still certain improvements are yet to take place. The oil industry in India changed dramatically throughout the 1990s and into the new millennium. Reform in the downstream hydrocarbon sector--the sector in which Indian Oil was the market leader--began as early in 1991 and continued throughout the decade. The Indian Oil Corporation also enjoys a dominant share of the bulk consumer business, including that of railways, state transport undertakings, and industrial, agricultural and marine sectors. Indian Oil has successfully combined its corporate social responsibility agenda with its business offerings, meeting the energy needs of millions of people everyday across the length and breadth of the country, traversing a diversity of cultures, difficult terrains and harsh climatic conditions. Bongaigaon Refinery is the first amongst Indian refineries and second among industry, both in the private and public sector, to be presented with this prestigious award, in recognition of its outstanding contribution to environmental conservation and for creating awareness in the Chirang region of Assam. After undergoing an in-depth study of the report, one can easily recognize that
Indian Oil ensures proper accounting for each and every rupee transacted through
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Indian Oil Aviation Service is a leading aviation fuel solution provider in India and the most-preferred supplier of jet fuel to major international and domestic airlines. Indian Oil is India's first ISO-9002 certified oil company conforming to stringent global quality requirements of aviation fuel storage & handling. IOC controls 10 refineries, by virtue of which it has a total share of around 40% of Indias overall refining capacity. IOC has also acquired equity stakes in CPCL and BRPL, and in 2001, these refineries became subsidiaries of IOC.
58% of IOCs refining capacity is located in the Northern and Western regions, which are high demand and high growth areas. IOC also acquired management control of the marketing company IBP, thereby strengthening its position in these activities. It also has a dominant share in all segments in terms marketing infrastructure. Its network includes 19830 retail outlets, 8000 LPG distributors, and 6492 kerosene/LDO dealers.
By virtue of entering into extensive joint venture agreements, and of its own initiative as well, the company has a presence in various other related activities such as petroleum storage, pipelines, lube additives, exploration, petrochemicals, gas, training and consultancy, etc.
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The Main Project

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The Main Project

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Chapter- 1 Industry Profile

Project Report on Profile Of IOCL

Project Report on Profile Of IOCL

Chapter- 2 Introduction to the IOCL

Project Report on Profile Of IOCL

Project Report on Profile Of IOCL

2.2 Network beyond Compare

2.3 Customer First

2.4 Initiatives by Indian Oil

2.5 50 Golden Years in the Service of the Nation

2.5.1 Indian Oil Today

2.5.2 Battle Spurs

Project Report on Profile Of IOCL

2.5.3 Marketing Innovations

Project Report on Profile Of IOCL

2.5.4 Kitchen Revolution

2.5.5 New Businesses

2.5.6 Group Synergy

2.5.7 Future Plans

2.5.8 India Inspired

Project Report on Profile Of IOCL

2.6 Key dates for the IOCL

Project Report on Profile Of IOCL

Project Report on Profile Of IOCL

Project Report on Profile Of IOCL

2.8 Career Opportunities at IOCL

Project Report on Profile Of IOCL

2.8.2 Indian Oil on IiPM

Project Report on Profile Of IOCL

2.9 Brief Profile of Other Players

Project Report on Profile Of IOCL

2.9.1 Hindustan Petroleum Corporation (HPCL)

Project Report on Profile Of IOCL

2.9.2 Bharat Petroleum Corporation (BPCL)

2.9.3 Mangalore Refinery & Petrochemicals (MRPL) ONGC

2.9.4 Reliance Industries Limited (RIL)

Project Report on Profile Of IOCL

Project Report on Profile Of IOCL

Project Report on Profile Of IOCL

Project Report on Profile Of IOCL

Project Report on Profile Of IOCL

(c) Towards employees

Project Report on Profile Of IOCL

(e)Towards Defense Services

Project Report on Profile Of IOCL

2.11 Awards & Accreditations

Project Report on Profile Of IOCL

Project Report on Profile Of IOCL

2.12 ORGANIZATIONAL CHART of IOCL

ASSAM OIL DIVISION

Project Report on Profile Of IOCL

Chapter-3 Research Methodology

Project Report on Profile Of IOCL

Objectives of the Project

Project Report on Profile Of IOCL

Data Collection Source

Project Report on Profile Of IOCL

Chapter- 4 Products & Strategy

Project Report on Profile Of IOCL

Project Report on Profile Of IOCL

Indian Oil Aviation Service

Project Report on Profile Of IOCL

Project Report on Profile Of IOCL