The Indian Petroleum Industry

The Petroleum industry in India stands out as an example of the strides made by the country in its march towards economic self-reliance. At the time of independence in 1947, international companies controlled the industry. Today, a little over 50 years later, the industry is largely in the public domain with skills and technical know-how comparable to the highest international standards. The testimony of its vigour and success during the past five and half decades is the significant increase in crude oil production from 0.25 to 0.33 million tonnes per annum and refining capacity from 0.3 to 103 million metric tonnes per annum. The consumption of petroleum products has grown 30 times in the last 50 years from 3 million tonnes during 1948-49 to about 107.7 million tonnes in 2003-04, an increase of 3.5% over 104.1 million tonnes registered in 2002-03. A vast network of over 29,000 dealerships and distributorships has been developed backed by over 400 storage points over the years to serve the people even in the remote and once-inaccessible areas.

Oil production & consumption in India(Million tons)

2006 Crude oil production Crude oil consumption Deficit (Met by Imports) 32.9 62.9 (33.9) 2007 33.9 65.2 (34.5) 2008 32.7 68.5 (39.8) 2009 32 86 (54.0) 2010 32.5 103.5 (71.0)

In order to understand the level of Indian demand for petroleum products in a global perspective, the following table furnishes a comparison of per capita consumption of petroleum products in the various parts of the world. (Kilograms per annum)

* * * *

India China North America World average

98 165 2,610 585

With the per capita consumption level in India being only about 60% of that in China, a strong growth potential exists in India, given particularly a large population base of over a billion.

Growth
In the 50 years since independence India has witnesses a significant growth in the refining facilities and increase in the number of refineries from one to eighteen now. The first decade of Independence (1947-57) saw the establishment of three costal refineries by multinational oil companies operating in India at that time, viz. Burmah Shell, Esso Stanvac and Caltex; the first two at Mumbai and the third at Vishakhapatnam. A major boost to the oil industry came in pursuance of the

Industrial Policy Resolution, 1956 that intended to promote growth of the vital sectors such as petroleum under the State control. ONGC, which was formed a Directorate in 1955, became a Commission in 1956.

The second decade (1957-67) witnessed the setting up of the Indian Refineries Ltd. in 1985, a wholly owned public sector Government Company. Under its banner three refineries were set up at Guwahati (Assam), Barauni (Bihar) and Koyali (Gujarat) essentially to process the indigenous crude discovered in Assam and Gujarat. In 1959, the Indian Oil Company (INDIANOIL), again a wholly owned Government company, was formed for marketing of petroleum products. Indian Refineries Ltd. was merged with Indian Oil Company Ltd. to form Indian Oil Corporation Ltd. on 1 st September 1964.

The next ten years period (1967-77) witnessed the establishment of two refineries, one with equity participation from America and Iranian companies at Chennai and another in the public sector at Haldia by Indian Oil.

The Period 1977-87 saw the commissioning of two more refineries in the public sector. The refinery at Bongaigaon was the first experiment in having an integrated petroleum refinery-cum-petrochemicals unit. The other refinery was set up at

Mathura in 1982. Major expansions of the coastal refineries at Mumbai, Cochin, Chennai and Vishakhapatnam were also completed during this period. The notable feature of the capacity additions during this decade have been the extensive utilization of the process design capabilities of M/s. Engineers India Ltd. and installation of Secondary Processing Facilities to increase the production of much required kerosene, diesel and LPG.

During the fifth decade (1987-97), a small refinery of 0.5 MMTpa (Million metric tonnes per annum) at Nagapatinnam was built in Tamil Nadu. It is based on crude from adjoining fields. In 1996, a MMTpa refinery was built in the joint sector at Mangalore between HPCL and Indian Rayon. This decade also saw significant

expansion to the capacities of the existing refineries, thereby raising the refining capacity to about 62 MMTpa.

However, the production of crude oil increased to over 35 million tonnes per annum in the year 1997-98. This represents only less than 50% of countrys requirement of petroleum. The balance had to be made good by imports putting our foreign

exchange to a great strain. Considering the ever-growing demand of petroleum at the rate of about 7% per annum, and the dwindling reliance on indigenous production of oil and natural gas, the Government of India, in 1991 decided to open up the exploration and production of oil and natural gas to the private sector.

The ministry of petroleum invited bids from the private parties / consortiums, in a number of bidding rounds. Consequently, as many as 21 small oil-gas fields and more than a dozen exploration blocks were awarded to private parties, for exploration and production work. It was also decided by government to import Liquefied Natural Gas, to meet the ever-growing requirement of natural gas in the country. The

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

With the setting up of Panipat Refinery in 1999-2000, there are 18 refineries operating in the country, 15 in the public sector, one in the joint sector and one in the private sector, with an installed capacity of 102 million metric tonnes per annum. The year 2003-04 saw important developments in Government policy as well a concerted efforts by individual companies to align their plans and progress with the free market scenario. On the disinvestments front, the Government of India successfully sold 10% of its equity in Oil & Natural Gas Corporation Ltd.(ONGC) and GAIL (India) Ltd. during

the year. The Government also sold its residual equity of 26% in IBP Co. Ltd. through public offer. Earlier in 2002, IndianOil had acquired 33.58% of Government of Indias equity in IBP through competitive bidding process, and thereafter acquired another 20% through open offer to the public.

In the upstream sector, the Government of India signed 20 contracts for oil & gas exploration under the fourth round of New Exploration Licensing Policy (NELP) and eight contracts under the second round of the Coal Bed Methane (CBM) Policy. Significant hydrocarbon discoveries in the blocks awarded earlier enhanced the prospects of finding more oil & gas reserves in the country. For enhancing the countrys oil security, the Government decided to set up 5 million tonnes of strategic crude oil storage in the country at Mangalore and Vishakhapatnam, which will be built and operated by IndianOil.

Threats:
Towards end of the year, the major concern of the petroleum industry was the rising cost of crude oil. While the uprising in gross refining margins helped improve the bottom line, Indian refiners were severely impacted by the ever-rising and fluctuation price of crude oil and products in the international market. Since our country is still dependent on imports to the extent of 70% of its requirement, we shall continue to be subject to volatility in the international prices of oil. The strengthening of the Indian Rupee against the US Dollar helped limit the impact partially. Concerted steps taken by the Government to augment indigenous production through the NELP rounds, and encouragement to Indian companies in acquiring equity oil and gas abroad, are therefore steps in the right direction

Introduction:
Petroleum is one of the most valuable natural resource in the world. Some people call it as Black Gold, but it may be better described as the Life Blood of Industrialised Countries.

The Indian oil sector is in the threshold of major changes. The Government of India had already decanalised some products like Furnace Oil, Aviation Turbine Fuel etc and also trying to decontrol High Speed Diesel, Motor Spirit, Liquefied Petroleum Gas, Superior Kerosene Oil etc in the near future. In spite of Government regulations there exists an intense competition among the existing oil companies. The flexibility of grabbing more market share will intensify after decontrol of these products from the Government.

Consumption of Petroleum products is an index of a countrys development, industrialisation and economic well-being. From an annual consumption of less than 3 Million Tonnes in 1948-1949 Indias Petroleum products consumption has grown to 107.7 Million Tonnes in 2003-2004. It shows the growth rate of Petroleum Industry in the country in the post independence period.

In order to protect national interest, the Government of India decided to establish a nationally owned and controlled Oil Industry in the India under the Ministry of Petroleum and Natural Gas.

IndianOil Corporation as an idea was born out of the Industrial Policy Resolution of 1956 and since then has emerged as one of the largest and leading corporations in the world.

Indian Oil Corporation Limited (INDIAN OIL) is the 18th largest Petroleum Company in the World. INDIAN OIL is ranked 153rd among the 500 largest companies in the world. (as per the Fortune Listing). It is the only Public Sector Undertaking among Indias Top 10 Companies listed by the Far Eastern Economic Review in 2004. Indian Oil has also been adjudged No.1 in petroleum trading among the national oil companies in the Asia-Pacific region.

In another major feat, Indian Oil was ranked among the top 10 Best Employers in India2004 in a joint survey conducted by Business Today and Hewitt Associates across 220 organizations.

For 15th consecutive year, Indian Oil earned Excellent rating for its performance in its MOU with the Government of India for the year 2003-04.

Indian Oil started with a sales turnover of Rs. 109 crores and a profit of 1 crore in 1964-65. In the year 2005-06 INDIAN OIL has achieved a sales turnover of Rs.1,83,204/-crores (profits of Rs. 4,915 crores for 2005-06). The total sales volume (inclusive of export sales) increased from 47.56MMT in 2002-03 to 48.61MMT in 2003-04, registering a growth of 2.2 %. The Corporation recorded the highest ever Profit Before Tax of Rs.9,691 crore (Rs.2,686 crore tax) during 2003-04 as against Rs.8,414 crore (Rs. 2,299 crore Tax) in 2002-03, registering a growth of 15.2 %. The Profit before tax for the year ending 2005-06 was 6,706/-crores.

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

1. Fuel and Feedstock 2. Lubes and Greases 3. Petrochemicals and specialties 4. Liquefied Petroleum Gas / LPG 5. Motor Spirit / Gasoline 6. Superior Kerosene Oil / Kero 7. High Speed Diesel / Gas Oil 8. Aviation Turbine Fuel / Jet Kero 9. Lubricants

History
In the late 1950s Indian oil industry was dominated by three Multi national Companies, viz., Shell, Esso and Caltex. The country was dependant on refined petroleum products imported into the country by these companies.

In the year 1956, Parliament passed an Industrial Policy Resolution bringing Oil under the purview of the State sector as a step to bring all the industries of basic and strategic importance into the Public Sector. In 1958, a Public Sector Company called Indian Refineries Limited was set up, followed by a marketing organisation called Indian Oil Company Limited In 1959. By September 1964 both these companies were merged and Indian Oil Corporation was formed.

In 1970, the Multinational Oil Companies were nationalized and this led to the emergence of Bharat Petroleum Corporation Limited (BPCL) (from Shell) and Hindustan Petroleum Corporation Limited (HPCL) (from Esso and Caltex). Apart from this Government also formed Indo-Burma Petroleum (IBP) Limited. While the three oil majors have their own refineries, IBP relied only on marketing. Later Assam Oil Company was merged with INDIAN OIL, and a separate division known as Assam Oil Division (of INDIAN OIL) was formed.

Apart from this other public and private sector companies like Madras Refineries Limited, Cochin Refineries Limited, Bongaigaon Refineries and Petrochemicals Limited, IPCL, Reliance Petroleum, Essar Oil Limited also entered the market at later stages. Initially they were not given any marketing rights for the controlled oil products but could refine crude oil and sell through the nationalized oil companies. But, after the withdrawal of Administered Pricing Mechanism (APM), (in 2002) these oil companies were allowed to sell these decontrolled products through the Retail Outlets or by bulk to direct customers.

Indian Oil holds over 33% of the country's refining share (42%, if the capacity of recently acquired subsidiaries is also added). All refinery units are accredited with ISO 9002 and ISO 14001 certifications. Its Mathura refinery is the first refinery in Asia and the third in the world to earn the British Standard (BS: 7750) and ISO-14001 certifications in environmental management.

The refinery network is presented with its installed refining capacity:

IndianOil Refineries: Installed Capacities

(In MMTPA)

Refinery IOC IOC- Guwahati IOC- Barauni IOC- Koyali IOC- Haldia IOC- Mathura IOC- Digboi IOC- Panipat Sub-Total IOC IOC Subsidiaries CPCL- Chennai CPCLNarimanam BRPLBongaigaon Sub-Total IOC Subisdiaries IOC-Total(WithSubsidiaries)

As on 1.4.2006

As on 1.4.2007

As on 1.4.2008

As on 1.4.2009

As on 1.4.2010

As 1.4. 2011

on

1.0 3.3 13.0 4.6 7.5 0.65 6.0 36.05 6.5 0.50 2.35 9.35 45.40

1.0 4.2 13.7 4.6 8.0 0.65 6.0 38.15 6.5 0.50 2.35 9.35 47.50

1.0 4.2 13.7 4.6 8.0 0.65 6.0 38.15 6.5 0.50 2.35 9.35 47.50

1.0 6.0 13.7 4.6 8.0 0.65 6.0 39.95 6.5 1.0 2.35 9.85 49.80

1.0 6.0 13.7 6.0 8.0 0.65 6.0 41.35 9.5 1.0 2.35 12.85 54.20

1.0 6.0 13.7 6.0 8.00 0.65 6.0 41.35 9.5 1.0 2.35 12.85 54.20

Indian Oil holds over 33% of the country's refining share (42%, if the capacity of recently acquired subsidiaries is also added). All refinery units are accredited with ISO 9002 and ISO 14001 certifications. Its Mathura refinery is the first refinery in Asia and the third in the world to earn the British Standard (BS: 7750) and ISO-14001 certifications in environmental management. The refinery network is presented below with its installed refining capacity.

The Indian Oil group of companies owns and operates 10 out of 18 Oil refineries in the country with a current combined rated capacity of 57.80 million metric tonnes per annum (MMTPA) or one million barrels per day (bpd). These include two refineries of subsidiary Chennai Petroleum Corporation Limited and Bongaigaon Refinery & Petrochemicals limited to increase its refining capacity . These are

located at Guwahati and Digboi (Assam), Barauni (Bihar), Koyali (Baroda,Gujarat), Haldia (West Bengal), Mathura (Uttar Pradesh) and Panipat (Haryana). Continuous innovation and up gradation of technology have resulted in high efficiency and optimum capacity utilization.

With sales of 49.61 Million Tonnes in 2005-06, Indian Oil holds over 51.2 % of Market share. (with the acquisition of IBP it holds around 60 % of the market in India) The Corporations employee strength as on March 31, 2006 was 30,801, including 10,437 officers. There are 2,406 women employees including 775 officers,

constituting 7.8% of the total manpower. These employees are engaged in Crude Oil Refining, Pipeline Transportation and Marketing of Petroleum Products. It is the sole canalizing agency for the import and export of Crude Oil and Finished Petroleum products.

INDIAN OIL has five divisions: 1) 2) 3) 4) 5) Refineries Division Pipelines Division Marketing Division Research and Development Division and Assam Oil division.

As the name suggests Refineries division is into refining of imported and local crude which is available in India. In maximum cases it crosses the installed capacity utilization. Research and development division is into developing new lubes and lube formulations required for the current market. From its inception it has formulated more than 2000 lube formulations. Assam Oil division is into refining and also marketing of oil products in the northeast part of India. The marketing division has its Head Office at Mumbai. It controls a network of over 22,000 sales points spread over India (the largest in the country). These include Retail Outlets of MS/HSD, SKO/LDO dealers, LPG distributors, SERVO shops etc.

INDIAN OIL constantly strives to develop its nationwide pipeline network. It transports Crude Oil and Finished Products through over 7,575 kms of Cross-country pipelines (countrys largest network). It keeps abreast of the latest technology when laying new systems and inducts the same into existing systems too.

Twelve Joint ventures are now operational in partnership with leading companies like Mobil and Lubrizol Corporation (USA), Oil tanking GmbH (Germany), Petronas (Malaysia), Marubeni (Japan), Bharat Petroleum Corporation Limited (BPCL), Oil and Natural Gas Corporation Limited (ONGC), IBP, Reliance Petroleum Limited (RPL), Essar Oil Limited (EOL), Gas Authority of India Limited (GAIL) etc of India.

In addition to products refined at its own plants, INDIAN OIL also markets the products refined by the following refineries :

i. ii. iii. iv.

Madras Refineries Limited Reliance Petroleum Limited Cochin Refineries Limited Bongaigaon Refineries & Petrochemicals Limited.

The famous Brands under Indian Oil

Indian

Oil's

branded

fuels

XtraMile

and

XtraPremium have made a significant impact in the petroleum retail market. XtraMile, Indian Oil's new generation High Speed Diesel with world-class additives has taken a leadership position in the market. The launch of premium fuels - XtraPremium and XtraMile (originally IOC Premium and Diesel Super respectively), marks a new beginning for Indian Oil and its customers. XtraPremium is, in fact, the only petrol in India with 91 Octane and doped with Multifunctional Additives. The maiden launch of these branded fuels took place in Delhi on Sept. 24, 2002. Subsequently, XtraPremiuem sales have been extended to 200 cities and 750 petrol & diesel stations, and XtraMile to 850 cities and 1750 petrol and diesel stations by the end of

SERVO is India's largest selling lubricant brand. SERVO ranges of lubricants enjoy approvals from major Original Equipment Manufacturers (OEMs) including new generation cars. 9,000 Retail Outlets and a countrywide network of SERVO SSls and SSAs Bazaar traders offer servo range of lubricants to customers. The Servo range of lubricants is used in almost every application covering automotive, industrial and marine sectors. Servo range of lubricants is fast emerging as a Global Brand. Servo has been designated as a superbrand. Servo has genuine oil tie ups with a wide range of companies like Hyundai, Maruti, Bajaj, Lancer. Anil Kumble, the ever dependable sporting icon is servo Brand Ambassador. Developed exclusively at IndianOil's world-class R&D Centre at Faridabad, there is a Servo lubricant for virtually every single application. With over 42% market share and 450 grades, the country's leading Servo brand lubricants from IndianOil are sold through over 8,100 IndianOil petrol/diesel stations, over 1,300 Servo Shops and a countrywide network of bazaar traders.

IndianOil Indane LPGas is used in 40 Million homes as cooking fuel and commands over 48% market share in India. Indane LPGas is marketed through a network of 4350 Indane distributors. Widely used in commercial sectors like industries, hotels & restaurants, medical labs, etc. 87 Indane Bottling Plants are spread across the country with a combined bottling capacity of 3.77 MMTPA. New and convenient 5 kg Indane LPGas cylinders introduced in rural and hilly regions for wider use by economically weaker sections. IndianOil's auto LPG brand Autogas is the leader in the segment. Marketed through a network 48 stations out of an industry total of 103 Auto LPG Dispensing Stations.

Autogas (LPG) has been introduced in Hyderabad, Bangalore and Mumbai markets. This alternative fuel is a good business proposition in the long term, and IndianOil intends to further expand its marketing in a big way

INDIANOIL

SERVES

CUSTOMERS

FROM

KARGIL

TO

KANYAKUMARI:

IndianOils remarkable marketing and distribution network extends from Kargil to Kanyakumari, catering to a vast spectrum of customers including households, industries, agriculture, transport, and defence forces, with total sales crossing 49.61 Million Metric Tonnes in 2005-06.

The Marketing Division of the Corporation has its headquarters located in Mumbai. It has FOUR Regional Offices located at Mumbai, Delhi, Chennai and Kolkata. There are 15 State Offices and 44 Divisional Offices including 2 of Assam Oil Division. A large network of 9,138 Retail Outlets including 82 Jubilee Retail Outlets serve the retail market. A total of 3,521 Kerosene/ Light Diesel Oil (LDO) dealers reach the products to the customers throughout the country. They are fed by 162 Bulk storage depots/terminals all over the country.

INDIAN OIL has 35 Area Offices to deal with the marketing of LPG. Indane Cooking Gas is distributed to over 375 lakh customers in 2,177 towns through 4,350 distributors. The Corporation has 87 LPG Bottling plants with a total capacity of 36, 74,000 tonnes per annum.

INDIAN OIL has 94 Aviation Fuel Stations catering to Civil and Defense Aircrafts with a market share of 68 %. INDIAN OIL meets around 89 % requirements of Air Force whereas total needs of Army and Navy.

The company has a ISO-9001 certified, modern Research and Development Centre at Faridabad with facilities matching international standards. The centre has developed over 2000 Lubricant/Grease formulations and introduced multigrade fuel-efficient lubricants for modern vehicles and is constantly trying new ways of improving fuel efficiency and quality. INDIAN OIL has launched genuine lubricating oils for almost all brands and makes of vehicles. A wholly owned subsidiary, Indian Oil Blending Ltd. manufactures over 450 grades of the countrys leading SERVO brand of lubricants and greases with 42 % market share, and are sold through more than 9,100 Company retail outlets, besides a countrywide network of bazaar traders.

INDIAN OIL- IMPROVING THE QUALITY OF LIFE:

INDIAN OIL provides welfare schemes including housing, medical, sports and recreation facilities to its employees and their families. INDIAN OIL has also given top priority to its customers interests. Be it peace time or war, drought or floods, INDIAN OIL has carried oil requirements to remote hamlets, provided fuel for transport and fulfilled energy needs of the Defence forces. INDIAN OIL has always been keen supporter of worthy causes such as family planning and welfare and rehabilitation of handicapped and under privileged. INDIAN OIL views energy as a means of achieving self-reliance and healthy economy. So it continuously strives to bring energy to life.

Projects :

Indian Oil accords high priority to timely project implementation. The details of various major projects are as follows:

Completed Projects :

Diesel Hydrotreating and Solvent De-waxing units at Digboi Refinery. Viramgam Koyali crude oil pipeline (148 km). Koyali-Viramgam-Sidhpur product pipeline (102 km). Kurukshetra-Roorkee-Najibabad product pipeline (167 km). LPG bottling plants at eight locations. Port terminal at Mauritius with a tankage of 15.5 TMT.

Ongoing Project :

Linear Alkyl Benzene unit at Koyali Refinery. Diesel Hydrotreating unit at Mathura Refinery. MS quality improvement projects at Mathura, Koyali and Haldia refineries. Paraxylene/Purified Terephthallic Acid unit at Panipat Refinery. Panipat Refinery expansion from 6 MMT per annum to 12 MMT per annum. Grassroots refinery at Paradip Mundra-Kandla crude oil pipeline (73 km) and conversion of the Kandla Panipat section of KBPL to crude oil service.

Paradip Haldia crude oil pipeline (353 km). Sidhpur Sanganer product pipeline (506 km). Chennai Trichy Madurai product pipeline (683 km). Capacity augmentation of LPG bottling plants at Chengalpet and Tikrikalan. Naphtha transfer pipeline from Asaoti to NTPC, Faridabad. Hydrocracker Laboratory Phase-II at R&D Centre.

New Project :

Naphtha Cracker project and downstream polymer units at Panipat. Branch pipelines to Raxaul and Baitalpur from Barauni Kanpur product pipeline. Koyali - Ratlam (274 km) and Koyali Dahej (112 km) product pipeline. Dadri Panipat gas pipeline. 7 depots at various locations. Dockline at Narimanam (8 km). Construction of grassroots LPG bottling plants at Raipur and

Virudhachalam.

Divisions of Indian Oil

Corporate :

IndianOil is Indias Flagship national oil company, accounting for 51.2% petroleum products market share, 42% national refining capacity and 67% downstream pipeline

transportation network. In 2005-06 , Indian Oil sold 46.22 million metric tonnes (MMT) of petroleum products, while its seven own refineries achieves a throughput of 37.66 MMT, and pipeline network transported 44.50 MMT of crude oil and petroleum products.

IndianOil is the countrys largest commercial enterprise also the first and only company to cross Rs.1 lakh crore turnover with a Gross Turnover of Rs. 1,83,204/crore (approx US$ 41,059 million), and a net profit of Rs.4915 crore (approx US$ 1,603 million) for 2003-04. IndianOil is the sole Indian presence in Fortunes

prestigious listing of the worlds 500 largest corporations, ranked 153 and is the 18th largest petroleum company in the world. It has been adjudged No.1 in petroleum trading among the national oil companies in the Asia-Pacific region, and is ranked 325th in the current Forbes Global 500 listing of the largest public companies.

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

Objectives of the company

To serve the national interests in the oil and related sectors in accordance and consistent with Government policies. To ensure and maintain continuous and smooth supplies of petroleum products by way of crude refining, transportation and marketing activities and to provide appropriate assistance to the consumer to conserve and use petroleum products efficiently. To earn a reasonable rate of interest on investment. To work towards the achievement of self-sufficiency in the field of oil refining by setting up adequate capacity and to build up expertise in laying of crude and petroleum product pipelines. To create a strong research and development base in the field of oil refining and stimulate the development of new product formulations with a view to minimize/eliminate their imports and to have next generation products. To maximize utilization of the existing facilities in order to improve efficiency and increase productivity. To optimize utilization of its refining capacity and maximize distillate yield from refining of crude to minimize foreign exchange outgo. To minimize fuel consumption in refineries and stock losses in marketing operations to effect energy conservation. To further enhance distribution network for providing assured service to customers throughout the country through expansion of reseller network as per Marketing Plan/Government approval. To avail of all viable opportunities, both national and global, arising out of the liberalization policies being pursued by the Government of India.

To achieve higher growth through integration, mergers, acquisitions and diversification petrochemicals, by harnessing lube new business opportunities abroad like and

power,

business,

consultancy

exploration & production.

Financial Objectives
To ensure adequate return on the capital employed and maintain a reasonable annual Dividend on its equity capital. To ensure maximum economy in expenditure.

To manage and operate the facilities in an efficient manner so as to generate adequate internal resources to meet revenue cost and requirements for project investment, without budgetary support. To develop long-term corporate plans to provide for adequate growth of the activities of the Corporations. To endeavour to reduce the cost of production of petroleum products by means of systematic cost control measures. To endeavour to complete all planned projects within the stipulated time and cost estimates.

Performance Graphs 2010-11

Obligations :
Towards customers and dealers :

To provide prompt, courteous and efficient service and quality products at fair and reasonable prices.

Towards suppliers:
To ensure prompt dealings with integrity, impartiality and courtesy and promote ancillary industries.

Towards employees:
Develop their capability and advancement through appropriate training and career planning. Expeditious redressal of grievances:

Towards community:
To develop techno-economically viable and environment-friendly products for the benefit of the people. To encourage progressive indigenous manufacture of products and materials so as to substitute imports. To ensure safety in operations and highest standards of environment protection in its manufacturing plants and townships by taking suitable and effective measures.

Towards Defence Services:

To maintain adequate supplies to Defence Services during normal and emergency situations as per their requirement at different locations.

Strengths
Wide field network. Dealership network to assist in our direct efforts. Up-country storages nearer to the market. Lower cost of production from old Refineries. Strength on international trade. Eight existing Refineries.

Spreading Wings :
IndianOil has overseas offices in Sri Lanka, Dubai, Kuala Lumpur and Mauritius to coordinate business activities. It has also set up subsidiaries in Mauritius and Sri Lanka

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

Marketing
The marketing of petroleum products in India today is dominated by the four stateowned oil companies. Their market shares as on 31st March 2001 were as follows:

* * * *

Indian Oil Corporation Bharat Petroleum Corporation Hindustan Petroleum Corporation IBP Company

55 % approx.* 21 % approx.* 19.5 % approx.* 4.5 % approx.*

Conclusion:
Training has played a very important role in helping IndianOil to reach the commanding heights of performance. Any training would be considered to be

successful only when the knowledge gained by the participants is transferred to the job performance. And IndianOil is been very successful in doing that.

IndianOil has a very strong base of human resource development and training and it has percolated right form the top to the bottom levels and this had played a role in more systematic organization development. The training programmes have helped their employees to improve their skill and efficiency as a result of which they are able to undertake new challenges in their work. The training and development programmes held in IndianOil helped their employees to know theirs strength and weaknesses and helped them to work on their weaknesses.

CERTIFICATE
The project report titled COMPNAY PROFILE SURVEY OF INDIAN OIL" Prepared by PRAKASH SINGH LODHI (MBA 1 st Sem.), under the guidance and supervision of Mr. AJAY DWIVEDI (Asst. Prof. OF M.B.A. Deptt., SSHCJ IMR SAGAR) for the partial fulfillment of the degree of Master of Administration is satisfactory in respect of :Business

Signature of H.O.D.

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

Signature of Supervisor

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

Signature of Examiner

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

DECLARATION BY CANDIDATE

I declare that the project report on COMPNAY PROFILE SURVEY OF INDIAN OIL " is my own work, conduct under the supervision of Mr. AJAY DWIVEDI (Asst. Prof. OF M.B.A.

Deptt., SSHCJ IMR SAGAR)

Affiliated to Dr. Hari Singh

Gour University, Sagar . To the best of my knowledge the report does not contain any work which has been submitted for the award of any degree, anywhere.

Signature of the Candidate

PRAKASH SINGH LODHI M.B.A. 2nd SEM..

ACKNOWLEDGEMENTS
I wish to express my deep sense of gratitude to all those who generously helped in successful completion of this research work by sharing their valuable time and knowledge. A great deal of motivation, direction and hard work was require to complete the report, but the precious guidance provided by my teachers made this job enjoyable and a nice learning experience. It is my proud privilege to express my deep sense regards to the Mrs. Parul Guru (H.O.D. of MBA Deptt., SSHCJ IMR, Sagar) affiliated Dr. Hari Singh Gour Vishwavidhyalaya, Sagar for giving me opportunity to prepare a project report on the COMPNAY

PROFILE SURVEY OF INDIAN OIL " which I have done. I

express my deep sense of gratitude to Mr. AJAY DWIVEDI

(Asst. Prof. OF M.B.A. Deptt., SSHCJ IMR SAGAR)

under take this study.

for his

constant encouragement, guidance and his valuable suggestion to

I am also grateful to my faculty members, customers, friends and family members for their outstanding support and guidance. PRAKASH SINGH LODHI

M. B. A. 2nd sem.

PREFACE
The project report has an objective to get the MBA student familiar with real life business situation and gives an opportunity to the student of understand the theoretical concepts of marketing and finance in practical way. Every research work has to deal with various people in concern organization and each of them have their own opinion and thinking about various topics.

COMPANY PROFILE SURVEY OF INDIAN OIL " I tried

my best to express the report through satisfactional representation, graphs, pie diagrams etc. and it helped me to enhance my knowledge I am extremely happy to place before our esteemed teachers.

RESEARCH METHODOLOGY
These types of research design used project are exploratory. Exploratory research is that in which new relationship are discovered. Design of Conclusive Research Study of Secondary sources of information:Different book of marketing and research served as sources of information. The information from Internet was very useful as well. Survey of individual with ideas on general subject:Information was also collected from owner and distributor of Indian Oil, which is base of this whole project. Data Collection Method:The method used to collect data is from primary sources. This method is appropriate as compared to secondary data available looking at the objectives of the report. The method used to collect data is a survey in which questionnaire is prepared and is given to the respondent to fill it.

Sampling method:The universe of this research report consists of 1 dialers and 25 customers those served as source of information.

Research designs: Research Type : Exploratory Primary & Secondary Sagar Survey Method Questionnaire 25 Customers & 1 Dealers respondents of Sagar

Data Collection Method : Venue Research Approach Research Instrument Sample Size Sampling Unit : : : : :

LIMITATIONS
1. The report had to be completed in a selected area with in a specified time limit. 2. The facts & Figures perceived in this project report are based on the data collected from the respondents. Hence their might be chance of having a little difference from actual. 3. Sample size was very small as compared to the population of Sagar city. 4. People did not give full response & there is a bias in some personnel questions. 5. Data from the secondary source may have some errors & their objectives may not be relevant with the present project.

SUGGESTIONS & RECOMMENDATIONS

1. The companies should keep pace with time and introduce new quality and improved service time to time. 2. Resources should be properly utilized to reduce the prices. 3. Commission and margin should also be given to small dealers and retailers. 4. Sales promotion techniques should be used frequently. 5. Prices should be stable and less variable. Price differentiation should be removed. 6. The person should be trained by the company to provide customer satisfaction and to develop public relation. 7. Effective sales force should be used by the companies to penetrate the interior market. 8. Season discounts on festivals should be given. 9. Companies should take measures to develop new market.

DATA ANALYSIS
INDIAN OIL CASTROL OIL BP OIL OTHERS 45% 30% 15% 10%

10%

15%

INDIAN OIL
45%

CASTROL OIL

BP OIL
OTHERS
30%

COMPANY IMAGE PRICE QUALITY OTHERS

35% 20% 30% 15%

EXCELLENT GOOD AVERAGE POOR

40% 35% 15% 10%

BIBLIOGRAPHY

Sharma D.D.

: Marketing research Principles, Application

and cases , Sultranchand and Sons New Delhi. Kothari, C.R. : Research Methodology, Methods and

Technology, Wishwa Prakashan, New Delhi. Kolter, Philips d (2000), Marketing Management, Prentice Hall of India Pvt. Ltd. New Delhi.

Websites:
www.indianoil.com www.google.com www.wikipedia.com

DEALERS QUESTIONNAIRES
NAME:- .. DATE . YEAR OF ESTABLISHMENT : . 1. Dealing with following company of oil? Company year . 2. Average sales/month? .............................. 3. How many orders do you order in a month ? -----------------------------------------------------------------------------------------------------------------------------------------4. Who are the competitors of your product? --------------------------------------------------------------------------------------------------------------------------------------------5. Do you think that the company has a long standing image? Yes / No. may be ---------------------------------------------------------------------------------------------------6. Reason you account for you sale? a. Quality b. Price. C. Varieties Offered d. Brand Name 7. What promotional technique is being providing by company to you? -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------8. Are you satisfied with these techniques ? Yes / NO ---------------------------------------------------------------------------------------------------------------------------------9. What extra facilities are provided by company to you? a. cash discount others. 10. Which form of media had lot of impact on the customers? ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------Date: Thanks for you co-operation & valuable time Signature b. Dealers discount c. transportation d.

CUSTOMERS QUESTIONNAIRE
NAME : ------------------------------------------------------------------------ AGE : --------SEX : ----------------------- OCCUPATION : -----------------------------------------------1. Which Oil brand do you use? a. Indian Oil a. High a. Newspaper a. Brand Name b. Castrol Oil b. Low c. BP Oil c. Reasonable . T.V. d. Others d. Hoardings d. others 2. What do you think about the price of product? 3. How did you come to know about this brand? b. Magazine c b. Price c. Quality 4. What criteria you see when you purchase Indian Oil? 5. Do you feel Indian Oil price Economic? Yes/ No. & Why ?--------------------------------------------------------------------------------------------------------------------------6. If you purchase any other Oil which one will you buy ? -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------7. Do you have any complaints ? Yes / No ------------------------------------------------------------------------------------------------------------------------------------------------8. Any Suggestion -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Date:

Signature

Thanks for you co-operation & valuable time