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Transcript of 37574153 Iocl Project Anju
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Project Report
On
How to enhance sales of commercial Liquefied Petroleum Gas
Project report submitted to the
INSTITIUTE OF TECHNOLOGY & MANAGEMENT
In partial fulfillment of the requirement for the award of the
Certificate of
MASTER OF BUSINESS ADMINISTRATION
Submitted By:-
JEEVAN kRANTI
MBA (3rd
sem)
Session: - 2009-2011
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ACKNOWLEDGEMENT
My indebtedness and gratitude to the many individuals who have helped to shapethis thesis in its present form cannot be adequately conveyed in just a few
sentences. Yet I must record my immense gratitude to the brains and hands that
worked overtime to support my efforts in making a near comprehensive study of a
topic as broad as How to enhance sales of commercial Liquefied Petroleum
Gas , in Indian oil corporation Ltd., Patna.
I am highly obliged toMr. Sachin Agarwal, & Mr. Pradeep Kumar M K, IOCL,Patna for giving me this opportunity to work on this challenging project and
lending me their learning over the months and continuous guidance in their
capacity as my Project Guide.
Next in line I thank all the professors of ITM for apprising me of their specific
requirements and the nuances of the system and helping me immensely with their
phenomenal and participative responses during the interviews I had with them.
The thank list would be far from incomplete without the mention of all such
Supervisors,Associates and all the employees ofIOCL, Patna.
Last but not the least I am thankful toAlmighty God, my parents, my uncle, my
friendsfor their immense support and cooperation throughout.
In fact the list can never be completed.
Jeevan Kranti
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Summary:
Liquefied petroleum gas refers to the gaseous liquids that are recovered from the
processing of natural gas and the refining of crude oil. This LPG consists of two
commercial products propane and butane both of which are ----- at ambient
temperature and pressure and yet are liquid when stored and transported under
pressure or in a refrigerated state.
India is a huge LPG retail market. The number of registered customers reached 100
million in April 2008. Annual sales are close to 12 million tons and growing at 5-6
percent per year. However, this market is being supported by Government price
subsidies on household cylinders, subsidies which have caused market distortions andresulted in the illegal diversion of the subsidized LPG for home use to the non-
subsidized commercial sector.
The Government maintains a subsidized LPG price (below free market levels) for
households in India because it is politically popular to do so and politically dangerous
to take it away.
Two years ago, there had been widespread reports of illegal LPG cylinder diversions
from the subsidized household sector to the unsubsidized commercial sector. The
Government instituted a clampdown. They sent inspectors around the country to
monitor the monthly sales patterns of LPG distributors and dealers and see if there
were any unusual distortions that might have been the result of these illegal
diversions. This action did seem to have some effect at the time.
Now, the problem has resurfaced again, this time as a result of the introduction of
piped gas into Indian cities. In Mumbai and Patna, consumers who are now receiving
piped gas have been returning their unwanted cylinders to LPG distributors. But the
LPG distributors in many cases, it would appear, have been continuing to take their
allocated subsidized LPG which they have then been reselling to the higher-paying
commercial sector. The differential between commercial and household LPG prices is
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so large that their profits are sizeable. As the Government has been complaining,
these profits are all coming out of their subsidy program.
Two measures are under consideration:
Rolling back the scheme for distribution of subsidized LPG in every area where pipedgas connections are provided.
And drawing up a scheme for focused and direct subsidization for LPG to consumers
living in rural and backward areas which are not covered by piped gas networks.
The measures would be politically popular. It is argued that subsidized LPG would be
more likely to reach the targeted people, instead of unjustified supply to affluent
sections of society in urban areas who are cashing in on the double subsidy benefit.
However, the first step is not without its problems. LPG distributors in urban areas
lose their business as the gas grids expand.
Indian officials believe they have to look after the local LPG distributors in some way
"so to not face possible resistance or even sabotage of the piped gas networks."
And because of all these reasons the sale of commercial LPG comes down and now
steps should be taken by government on this issue.
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TABLE OF CONTENT:
Introduction
Companys history
Companys profile
Vision of IOCL
Obligation & objectives of IOCL
Major projects of IOCL
Awards & accreditations
Services to nation by IOCL
Introduction to LPG
Specifications of LPG
Commercial LPG & its uses
Research methodology
Findings
Limitations
Conclusions & recommendations
Copy of questionnaire
Bibliography
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Indian oil corporation Companys history-
Company Perspectives:It strive be a major diversified, transnational, integrated energy company, with
national leadership and a strong environmental conscience, playing a national role in
oil security and public distribution.
Key Dates:
1948: Indias 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 merge to form the Indian Oil
Corporation.
1976: The Burma-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.
Company History:
The Indian Oil Corporation Ltd. operates as the largest company in India in terms of
turnover and is the only Indian company to rank in the Fortune "Global 500" listing.
The oil concern is administratively controlled by India's Ministry of Petroleum and
Natural Gas, a government entity that owns just over 90 percent of the firm. Since
1959, this refining, marketing, and international trading company served the Indian
state with the important task of reducing India's dependence on foreign oil and thus
conserving valuable foreign exchange. That changed in April 2002, however, when the
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Indian government deregulated its petroleum industry and ended Indian Oil's
monopoly on crude oil imports. The firm owns and operates seven of the 17 refineries
in India, controlling nearly 40 percent of the country's refining capacity.
Origins:
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 Burma 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.
Burma-Shell entered into price wars against these independents, causing protests inthe 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 Burma-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.
The Indian Oil Industry Evolves: Late 1940s-60s
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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. Oil could only be afforded if imported from a country in the sterling
area rather than from countries where it had to be paid for in dollars. 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 Burma-Shell and Standard-
Vacuum at Bombay, and another was built at Vizagapatam by Caltex. During the same
period the companies found themselves in increasing conflict with the government.
The government came into disagreement with Burma Oil over the Nahorkatiya oil field
shortly after its discovery in 1953. It refused Burma the right to refine or market this
oil and insisted on joint ownership in crude production. Burma 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
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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.
Growing Soviet imports led the foreign companies to respond with a price war in
August 1961. At this time, Indian Oil had no retail outlets and could sell only to bulk
consumers. The oil companies undercut Indian Oil's prices and left it with storage
problems. Indian Oil then offered even lower prices. The foreign companies were the
ultimate losers because the government was persuaded that a policy of allowing
Indian Oil dominance in the market was correct. This policy allowed Indian Oil themarket share of the output of all refineries that were partly or wholly owned by the
government. Foreign oil companies would only be allowed such market share as
equaled their share of refinery capacity.
Indian Oil Corporation: 1964 to the 1990s
In September 1964, Indian Refineries Ltd. and the Indian Oil Company were merged to
form the Indian Oil Corporation. The government announced that all future refinerypartnerships would be required to sell their products through Indian Oil.
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
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remained separate. ONGC retained control of most of the country's exploration and
production capacity. Indian Oil remained responsible for refining and marketing.
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. TheIndian Oil Corporation worked out barter agreements with major oil companies in
order to facilitate distribution of refinery products.
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 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.
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The government decided to nationalize the country's remaining refineries. The Burma-
Shell refinery at Bombay and the Caltex refinery at Vizagapatam were taken over in
1976. The Burma-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, Burma 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 over-capacity.
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 Gwahati,
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.
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Indian Oil also established its own research center at Faridabad near New Patna 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.
Changes in the Oil Industry: Late 1990s and Beyond
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, IndianOil 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
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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 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.
Principal Subsidiaries:
Indo Mobil Ltd. (50%); Avi-Oil Ltd. (25%); Indian Oil tanking Ltd. (25%); Petro net India
Ltd. (16%); Petro net VK Ltd. (26%); Petro net CTM Ltd. (26%); Petro net CIPL Ltd.
(12.5%); Indian Oil PETRONAS Ltd. (50%); Indian Oil Panipat Power Consortium Ltd.
(26%); Indian oil TCG Petrochem Ltd. (50%); Lubrizol India Pvt. Ltd. (50%).
Principal Competitors:Bharat Petroleum Corporation Ltd.; Hindustan Petroleum Corporation Ltd.; Royal
Dutch/Shell Group of Companies.
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Companys profile-
Corporate Overview:
Indian Oil is Indias flagship national oil company with business interests straddling theentire hydrocarbon value chain from refining, pipeline transportation and marketing
of petroleum products to exploration & production of crude oil & gas, marketing of
natural gas, and petrochemicals. It is the leading Indian corporate in the Fortune
'Global 500' listing, ranked at the 125th position in the year 2010.
With over 34,000-strong workforce, IndianOil has been helping to meet Indias energy
demands for over half a century. With a corporate vision to be the Energy of India,
Indian Oil closed the year 2009-10 with a sales turnover of Rs. 271,074 crore and
profits of Rs.10,221 crore. .
At Indian Oil, the operations are strategically structured along business verticals -
Refineries, Pipelines, Marketing, R&D Centre and Business Development E&P,
Petrochemicals and Natural Gas. 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 and alternative
energy, besides globalization of its downstream operations. Having set up subsidiaries in
Sri Lanka, Mauritius and the United Arab Emirates (UAE), IndianOil is simultaneously
scouting for new business opportunities in the energy markets of Asia and Africa.
With facilities at multiple locations and ever-expanding market opportunities, Indian
Oil is poised to become an integrated energy company with steady forays into OilExploration & Production, Petrochemicals and Renewable Energy.
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Reach and Network:
IndianOil and its subsidiaries account for over 48% petroleum products market share,
34% national refining capacity and 71% downstream sector pipelines capacity in India.
With a steady aim of maintaining its position as a market leader and providing best
quality products and services, IndianOil is currently investing Rs. 47,000 crore in a
host of projects for augmentation of refining and pipelines capacities, expansion of
marketing infrastructure and product quality up gradation.
The Indian Oil Group of companies owns and
operates 10 of India's 20 refineries with a
combined refining capacity of 60.2 million
metric tons per annum (MMTPA, .i.e. 1.2 million
barrels per day). Indian Oils cross-country
network of crude oil and product pipelines,
spanning 10,652 km and the largest in the
country, meets the vital energy needs of the consumers in an efficient, economical
and environment-friendly manner.
It has a portfolio of powerful and much-loved
energy brands that includes Indane LPGas,
SERVO lubricants, XtraPremium petrol, XtraMile
diesel, etc. Validating the trust of 56.8 million
households, Indane has earned the coveted
status of Super brand in the year 2009.
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Indian Oil has a keen customer focus and a
formidable network of customer touch-points
dotting the landscape across urban and rural
India. It has 18,643 petrol and diesel stations,
including 2,947 Kisan Seva Kendras (KSKs) in the
rural markets. With a countrywide network of
35,600 sales points, backed for supplies by 167
bulk storage terminals and depots, 98 aviation fuel stations and 88 LPGas bottling
plants, IndianOil services every nook and corner of the country. Indane is present in
almost 2764 markets through a network of 5095 distributors. About 7,593 bulk
consumer pumps are also in operation for the convenience of large consumers,
ensuring products and inventory at their doorstep.
Indian Oils ISO-9002 certified Aviation Service commands an enviable 63% market
share in aviation fuel business, successfully servicing the demands of domestic and
international flag carriers, private airlines and the Indian Defense Services. The
Corporation also enjoys a 65% share of the bulk consumer, industrial, agricultural and
marine sectors.
Innovation is key:
Indian Oil has a sprawling world-class R&D
Centre that is perhaps Asia's finest. It conducts
pioneering work in lubricants formulation,
refinery processes, pipeline transportation and
alternative fuels, and is also the nodal agency of
the Indian hydrocarbon sector for ushering in
Hydrogen fuel economy in the country. The
Centre holds 215 active patents, including 109 international patents.
Some of the in-house technologies and catalysts developed by Indian Oil are the
INDMAX technology (for maximizing LPG as yield), OlivorusS bio-remediation technology
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(extended to marine applications too), DHDS catalyst, a special Indicate catalyst for
Bharat Stage-IV compliant Diesel, IndVi catalyst for improved distillate yield and FCC
throughput, and adsorbent based deep desulphurization process for gasoline and diesel
streams.
Redefining the horizon:
In Petrochemicals, Indian Oil is investing Rs.
20,000 crore (US$ 4 billion) by the year 2011-12.
It offers a full slate of products including Linear
Alkyl Benzene (LAB), Purified Terephthallic Acid
(PTA), and an extensive range of polymers.
IndianOil holds a significant market share of LAB
in India and exports to 19 countries. A state-of-
the-art 120,000 tons per annum Styrene Butadiene Rubber (SBR) unit is underway at
Panipat. The SBR unit will further strengthen Indian Oils presence in the specialty
petrochemicals sector.
In Exploration & Production, Indian Oils
domestic portfolio includes ten oil & gas blocksand two Coal Bed Methane blocks. The overseas
portfolio includes nine blocks spread across
Libya, Iran, Gabon, Nigeria, Timor-Leste and
Yemen. Exploration activities are at various
stages of progress. In addition, as part of
consortium, IndianOil has been awarded Project -1 in the Carabobo heavy oil region
of Venezuela. To boost E&P activities, Indian Oil has incorporated Ind-OIL Overseas
Ltd. a special purpose vehicle for acquisition of overseas E&P assets in consortium
with Oil India ltd.
Natural Gas marketing is another thrust area for IndianOil with special focus on City
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Gas Distribution (CGD) business. The Corporation has entered into franchise
agreements with several CGD players to market Compressed Natural Gas through its
retail outlets. IndianOils joint venture with GAIL India Ltd. - Green Gas Ltd. has
been authorized to take up city gas distribution at Agra. A long term gas supply
agreement has been signed with NTPC.
Venturing into alternative fuels:
Indian Oil has forayed into alternative energy
options such as wind, solar, bio-fuels and
nuclear power. A 21 MW wind power project is
operational in the Kutch district of Gujarat and
the cumulative power generation from the 14
wind turbine generators has crossed 6 crore
units (KW/Hr) since commissioning in January
2009. The solar power initiative is being spearheaded on a pilot basis in Orissa,
Karnataka and the Northeast and an all-India phased roll out are underway. Solar
products such as solar lanterns and torches are being sold through the Retail Outlets
in rural and urban areas. With a view to investing in the nuclear energy sector in the
country, IndianOil has entered into an agreement with the Nuclear Power Corporationof India ltd.
Indian Oil has the largest captive plantation over 1,000 hectares for bio-fuel
production in India which is underway in Chhattisgarh and Madhya Pradesh, generating
rural employment of over 1.4 lakhs man-days. To straddle the complete bio-fuel value
chain, Indian Oil has formed a joint venture with the Chhattisgarh Renewable
Development Authority. IndianOil CREDA Biofuels Ltd. has been formed to carry out
farming, cultivating, manufacturing, production and sale of biomass, bio-fuels and
allied products and services in Chhattisgarh. In Uttar Pradesh, IndianOil is establishing a
model value chain for the production of bio-diesel. A MoU for collaborating on
commercial production of bio-diesel from algae has also been signed with PA LLC.
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IndianOil. The Energy of India: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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Vision with values:
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Objectives & Obligations:
Objectives:
y To serve the national interests in oil and related sectors in accordance andconsistent with Government policies.
y To ensure maintenance of continuous and smooth supplies of petroleumproducts by way of crude oil refining, transportation and marketing activities
and to provide appropriate assistance to consumers to conserve and use
petroleum products efficiently.
y To enhance the country's self-sufficiency in crude oil refining and buildexpertise in lying of crude oil and petroleum product pipelines.
y To further enhance marketing infrastructure and reseller network for providingassured service to customers throughout the country.
y To create a strong research & development base in refinery processes, productformulations, pipeline transportation and alternative fuels with a view to
minimizing/eliminating imports and to have next generation products.
y To optimize utilization of refining capacity and maximize distillate yield andgross refining margin.
y To maximize utilization of the existing facilities for improving efficiency andincreasing productivity.
y To minimize fuel consumption and hydrocarbon loss in refineries and stock lossin marketing operations to effect energy conservation.
y To earn a reasonable rate of return on investment.y To avail of all viable opportunities, both national and global, arising out of the
Government of Indias policy of liberalization and reforms.
yTo achieve higher growth through mergers, acquisitions, integration anddiversification by harnessing new business opportunities in oil exploration &
production, petrochemicals, natural gas and downstream opportunities
overseas.
y To inculcate strong core values among the employees and continuouslyupdate skill sets for full exploitation of the new business opportunities.
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y To develop operational synergies with subsidiaries and joint ventures andcontinuously engage across the hydrocarbon value chain for the benefit of
society at large.
Financial Objectives:
y To ensure adequate return on the capital employed and maintain a reasonableannual dividend on equity capital.
y To ensure maximum economy in expenditure.y 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.
y To develop long-term corporate plans to provide for adequate growth of theCorporations business.
y To reduce the cost of production of petroleum products by means of systematiccost control measures and thereby sustain market leadership through cost
competitiveness.
y To complete all planned projects within the scheduled time and approved cost.
Obligations:
y Towards customers and dealers: - To provide prompt, courteous and efficientservice and quality products at competitive prices.
y Towards suppliers: - To ensure prompt dealings with integrity, impartiality andcourtesy and help promote ancillary industries.
yTowards employees
: - To develop their capabilities and facilitate their
advancement through appropriate training and career planning. To have fair
dealings with recognized representatives of employees in pursuance of healthy
industrial relations practices and sound personnel policies.
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y Towards community: - To develop techno-economically viable andenvironment-friendly products. To maintain the highest standards in respect of
safety, environment protection and occupational health at all production units.
y Towards Defense Services: - To maintain adequate supplies to Defense andother Para-military services during normal as well as emergency situations.
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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.
GRASSROOTS REFINERY PROJECT AT PARA DIP (ORISSA):
Project Cost: Rs. 29,777.00 crore
Expected Commissioning: March-November, 2012
Benefit: The project will help in partially meeting the deficit in 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 refinery is being constructed at Para dip in Orissa. Therefinery will have, apart from a Crude and Vacuum Distillation Unit, a Hydro cracking
Unit, a Delayed Coker Unit and other secondary processing facilities. This will be the
most modern refinery in India with a nil-residue production, and the products would
meet stringent specifications. Indian Oil has taken over 3344 acres of land for the
project and necessary infrastructure development jobs prior to setting up of the main
refinery are in progress.
RESIDUE UPGRADATION AND MS/HSD QUALITY IMPROVEMENT PROJECT AT
GUJARAT REFINERY:
Project Cost: Rs. 6,898.00 crore
Expected Commissioning: July to October, 2010
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Benefit: The objectives of the project are multifold. It will ensure compliance to
product quality requirement of MS/HSD to EURO-III/IV levels; enable processing of
increased quantity of high sulphur crude, and improvement in distillate yield.
Brief Description: 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.
MS QUALITY UPGRADATION PROJECT BARAUNI REFINERY (BIHAR):
Project Cost: Rs. 1,492.00 crore
Expected Commissioning: September 2010
Benefit: The implementation of this project will improve the quality of MS to conform
to Euro-III equivalent norms.
Brief Description: The major process units under this project are Isomerisation,
Naphtha Hydrotreater, Reformate Splitter, FCC Gasoline Desulphurization Unit and
Hydrogen Generation Unit.
MS QUALITY UPGRADATION PROJECT AT GUWAHATI REFINERY (ASSAM):
Project Cost: Rs. 372.00 croreExpected Commissioning: September 2010
Benefit: The implementation of this project will improve the quality of MS to conform
to Euro-III equivalent norms.
Brief Description: The major process units under this project are Isomerisation, Light
Naphtha Splitter, Naphtha Hydrotreater and Indmax Gasoline Splitter.
MS QUALITY UPGRADATION PROJECT AT DIGBOI REFINERY (ASSAM):
Project Cost: Rs. 356.00 crore
Expected Commissioning: September 2010
Benefit: The implementation of this project will improve the quality of MS to conform
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to Euro-III equivalent norms.
Brief Description: The major process units under this project are Isomerisation,
Naphtha Splitter, Naphtha Hydrotreater and Reformate Splitter.
DADRI-PANIPAT R-LNG SPURPIPELINE:
Project Cost: Rs. 298.00 crore
Expected Commissioning *: Mid July 2010
Benefit: The 132 km long 30 inch diameter spur line carrying degasified LNG (R-LNG)
will stretch from GAIL Indias Dadri terminal in UP to Panipat.
Brief Description: The proposed R-LNG pipeline will provide for an economical means
of feeding natural gas to Panipat refinery.
* Subject to availability of RoW
PANIPAT REFINERY EXPANSION FROM 12 MMTPA TO 15 MMTPA:
Project Cost: Rs. 1,007.83 crore
Expected Commissioning * : October 2010
Benefit: To meet the growing deficit of petroleum products in the high demand
Northwest region of India.
Brief Description: The project consists of capacity revamp of Crude and Vacuum
Distillation Units (CDU / VDU), Once through Hydro cracking Unit (OHCU), Delayed
Coking Unit, and installation of second stage reactors in Diesel Hydro treating Unit
(DHDT).
* Quality part completed in November, 2009
BRANCH PIPELINE FROM KSPL, VIRAMGAM TO KANDLA:
Project Cost: Rs. 349.00 crore
Expected Commissioning: 30 months after receipt of environment & forest clearance
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Benefit: The pipeline would provide cost-effective link with the sea route ex-Kandla
for coastal movement of surplus products of Koyali refinery and enhance flexibility in
the system for ensuring sustained operation of the refinery.
Brief Description: Project consists of laying of 16-inch diameter 217 km long productpipeline from Viramgam to Churwa and use of 22 diameter 14 km existing KBPL
pipeline between Churwa to Kandla.
DIESEL HYDRO-TREATMENT (DHDT) PROJECT AT BONGAIGAON REFINERY (ASSAM):
Project Cost: Rs. 1646.39 crore
Expected Commissioning: September 2010
Benefit: The implementation of this project will improve the quality of HSD to
conform to Euro-III equivalent norms. The project would also improve smoke point of
Raw Kerosene and enhance production of SKO and ATF.
Brief Description: The major process units under this project are DHDT Unit, Sulphur
Recovery Block, Reformer, Power Plant, DM Plant and Hydrogen Generation Unit.
MS QUALITY UPGRADATION PROJECT AT BONGAIGAON REFINERY (ASSAM):
Project Cost: Rs. 293.60 crore
Expected Commissioning: September 2010
Benefit: The implementation of this project will improve the quality of MS to conform
to Euro-III equivalent norms.
Brief Description: The major process unit under this project is Light NaphthaIsomerisation Unit. Existing Xylene Fractionation facilities would also be used.
PARA DIP-NEW SAMBALPUR-RAIPUR-RANCHI PIPELINE:
Project Cost: Rs. 1793.60 crore
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Expected Commissioning: September 2012
Benefit: The proposed pipeline would ensure the evacuation of Para dip Refinery
products and uninterrupted supply to major parts of Orissa, Chhattisgarh and
Jharkhand.Brief Description: Project consists of laying of 1108 km long product pipeline with
intermediate pumping stations at Jatni and New Sambalpur and delivery stations at
Jatni, Jharsuguda, Ranchi, Raipur and Korba. The pipeline will be having a telescopic
diameter of 18/14/12/10 OD.
DE-BOTTLENECKING OF SALAYA-MATHURA CRUDE PIPLEINE:
Project Cost: Rs. 1584.00 crore
Expected Commissioning: 30 months after receipt of statutory clearances
Benefit: With the proposed de-bottlenecking/augmentation of SMPL, the refineries
would be in a position to process more crude oil.
Brief Description: The proposal is for enhancing the capacity of Salaya-Viramgam
section from 21 MMTPA to 25.0 MMTPA, [Viramgam-Koyali section from 8.5 MMTPA to
9.0 MMTPA, Viramgam-Chaksu section from 13.5 MMTPA to 16.5 MMTPA, Chaksu-
Mathura section from 7.5 MMTPA to 9.2 MMTPA and Chaksu-Panipat section from 6
MMTPA to 7.3 MMTPA].
INTEGRATED CRUDE OIL HANDLING FACILITIES AT PARA DIP:
Project Cost: Rs. 1492.33 crore
Expected Commissioning: March 2012
Benefit: The proposed facilities would enhance crude handling capacity at Para dip
port.
Brief Description: The proposal is for installation of 2nd SPM for Para dip Refinery
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and 3rd SPM & sub-sea crude oil transfer pipeline with associated facilities as a part
of Integrated Offshore Crude Handling Facilities at Para dip.
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Awards & Accreditations:
Awards:
Awards & Accreditations Date
Reader's Digest Trusted Brand Gold Award to
Indian Oil
01.07.2010
Barauni Refinery bags 'Best Kaizen Award' 29.06.2010
Indian Oil wins Dun & Bradstreet Awards 17.06.2010
Mathura Refinery bags International Safety Award 15.06.2010
Green tech Foundation honors Indian Oil 14.06.2010
Director Marketing felicitates Ranchi DO 07.06.2010
Golden Peacock Innovative Award to R&D Centre 29.05.2010
Green tech Safety Award to Bongaigaon Refinery 24.05.2010
Green tech Safety Award 2010 for Guwahati
Refinery
24.05.2010
Green tech Safety Award to Haldia Refinery 24.05.2010
Gold Award to Mathura Refinery for Safety
Management
24.05.2010
R&D Centre wins Technology Day Award 2010 11.05.2010
Chairman conferred IIT Patna Alumni Award 24.04.2010
Lifetime Achievement Award for Director (R&D) 20.04.2010
Director (Finance) wins Indias Best CFO Award 14.04.2010
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OCEANTEX 2010 Award to Director (Refineries) for
Outstanding Achievement
04.03.2010
Indian Oil tops Business Standards 'BS 1000' ranking 16.02.2010
Indian Oil bags four OISD Awards 20.10.2009
Chairman receives SCOPE Award for Excellence 15.10.2009
Indian Oil receives the MoU Excellence Award 2007-
08
15.10.2009
Indian Oil receives Award for Global Impact by an
Indian PSU
10.10.2009
Best Executive Honor on Director (Refineries) 30.09.2009
Most Innovative Company Honor to Indian Oil 30.09.2009
Indian Oil wins Oil & Gas Supply Chain Excellence
Award
21.09.2009
Indian Oil bags Safety Innovation Award 2009 21.09.2009
Indian Oils Director (HR) receives 'Pride of HRProfession Award
19.09.2009
Lanka Indian Oil bags Business Today Top 10Award
for 2007-08
21.08.2009
Bongaigaon Refinery bestowed Indira Gandhi
Paryavaran Puraskar 2006
05.06.2009
Indian Oil wins Reader's Digest Award for most
trusted petrol station brand
01.06.2009
Indian Oil sweeps five Petro Fed Oil & Gas Industry
Awards (For the year 2008)
16.04.2009
Indian Oil wins Retailer of the Year - 'Rural Impact 17.02.2009
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Award'
Indian Oil Conferred BML Munjal Award 2009 for
Excellence in Learning & Development
14.02.2009
Golden Peacock Award for Indian Oil-R&D for the
fourth time
02.01.2009
Indian Oil wins six awards at PRSI annual meet 16.12.2008
Indian Oil wins SCOPE Meritorious Awards for
Environmental Excellence & Sustainable
Development and Good Corporate Governance
24.11.2008
Indian Oil presented the 'Indian Express UptimeChampion Award'
08.10.2008
Indian Oil conferred SAP ACE Award 2008 for B2B
process Integration
24.09.2008
'Oil & Gas Supply Chain Excellence' Award for Indian
Oil
22.09.2008
Indian Oil bags 'Most Admired Retailer Rural' Award
2007
22.09.2008
Safety Innovation Award for Indian Oil for fourth
consecutive year
11.09.2008
CIO-100 award for Indian Oil for the third time 09.09.2008
Indian Oil conferred Business Super brand 2008 05.09.2008
Indian Oil's "Car in a Tank" sales promotion scheme
wins Stevie Award
07.07.2008
Indian Oil wins the World Petroleum Congress
Excellence Award 2008 for technical development
01.07.2008
Indian Oil's Xtra Power wins Loyalty Summit Award 25.01.2008
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Indian Oil Finance Director S.V. Narasimhan bags
Excellence in Finance Award
22.01.2008
Indian Oil wins Retailer of the Year - Rural Impact
Award
15.01.2008
Indian Oil- R&D Centre Awarded the coveted WIPO
GOLD MEDAL
18.10.2007
Indian Oil wins Oil Industry Safety Directorate
Awards
04.10.2007
SERVO acquires prestigious MAN Global approvals 24.09.2007
Indian Oil bags the 'Most Admired Retailer of theYear' award
10.09.2007
Indian Oil honored with `CIO 100 Award 2007' 10.09.2007
Indian Oil bags SCOPE Gold Trophy for Best Practices
in Human Resources Management 2005-06
06.09.2007
SAP ACE Awards for Customer Excellence for Indian
Oil
24.08.2007
Indian Oils R&D Centre gets special recognition for
Bioremediation
24.08.2007
SERVO secures entry into NSF White Book - H1
Category
23.08.2007
Indian Oil, the only petroleum company as `The
Most Trusted Brand' in ET's Brand Equity's annual
survey
01.06.2007
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Distinctions:
Distinctions Date
Indian Oil leads the pack of Indian companies inFortunes Global 500 list
12.07.2010
Indian Oil in Top 50 Best Companies To Work For 21.06.2010
Reigning on the pinnacle of success 25.02.2010
Indian Oil among 'Best Companies To Work For' 25.01.2010
Indian Oil in top five in Business Indias Super 100
ranking
07.12.2009
Indian Oil tops ET 500 ranking 25.11.2009
Indian Oil in Platts ranking 2009 19.11.2009
Indian Oil No.1 in BW 500 Ranking 27.10.2009
Indian Oil leads India Inc. in Fortune's 'Global 500'
listing for 2009
10.07.2009
Indian Oil the only PSU among Indias 25 best
employers
16.04.2009
Indian Oil frontrunner in Oil & Gas category in FE-
500listing of India's top corporate
31.03.2009
Indian Oil tops Business Standards 'BS 1000' again 13.03.2009
Indian Oil among India's 'Top 10' in Business India'sSuper 100 Listing
19.12.2008
Lanka IOC ranked No. 1 Company in Sri Lanka 12.12.2008
Indian Oil tops 'ET 500' rankings once again 21.10.2008
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Indian Oil tops Business world's BW Real 500
rankings again
20.10.2008
Indian Oil third most valuable (company) brand in
India: ET-brand finance survey
02.09.2008
Indian Oil leads India Inc. in Fortune's 'Global 500'
listing for 2008
11.07.2008
'The Most Trusted Brand' in ET's Brand Equity annual
survey-2008
12.06.2008
Indian Oil the 'Top Oil & Gas Company' in Financial
Express's 'FE 500' listing
23.05.2008
Indian Oil Tops Business Standard's 'BS 1000' listing 15.02.2008
'Top Ten' in Business India's Super 100 Listing 13.12.2007
Indian Oil among India's 'Top Valuable Companies in
BT 500 Listing'
30.11.2007
Indian Oil ranked 2nd amongst Indias Top 50 Most
Valuable Brands
31.07.2007
Indian Oil gets a top slot in ET500 listing 22.03.2007
Indian Oil tops 'BS 1000' companies in Sales again 03.01.2007
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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 corporate, currently at the 116th position. It is also the 18th largest petroleumcompany in the world.
Indian Oil Today:
From a fledgling company with a net worth of just Rs. 45.18 crore and sales of 1.38
million tons 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 every day through a countrywide
network of around 35,000 sales points. They are backed for supplies by 167 bulk
storage terminals and depots, 101 aviation fuel stations and 89 Indane LPG bottling
plants. For the year 2008-09, Indian Oil sold 62.6 million tons of petroleum products,
including 1.7 million tons of natural gas.
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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 Para dip-Haldia crude oil pipeline recently. Plans areunder 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.
StrategicOrigins:
Indian Oil was born of the vision of Pundit 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.
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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 tons of imported diesel of Russian origin from MV
Uzhgorod docked at Pir Pau Jetty in Mumbai. The Indian petroleum market at thattime was ruled by goliaths like Burma Shell, Esso Eastern Inc., Caltex (India) Ltd.,
Indo-Burma 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 tons
(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 435-km 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
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Having proved its mettle in the 1965 war, Indian Oil plunged into frenetic activity
with new-found 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 Para dip in Orissa, for
commissioning by the year 2012.
MarketingInnovations:
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 is 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. SERVO Xpress has been launched recently as a
one-stop shop for auto care services. To safeguard the interest of the valuable
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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 ISO-9002 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.
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.
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Auto gas (LPG) dispensing stations are being set up in metros and major cities to cater
to the growing vehicle population using LPG as fuel.
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 up
stream 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 tons 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 tons, PTA 5,53,000 tons) for polyester
intermediates is already in operation at Panipat, while a Naphtha Cracker with a
capacity of 800,000 tons of ethylene per annum, equipped with downstream polymer
units is also coming up in 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 farm-in arrangements in Gabon, an on land block in Nigeria andtwo 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,
Maturities, in consortium with oil.
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In natural gas business, Indian Oil is targeting sale of 2 million tons in 2008-09. A
technology innovation has been initiated to reach LNG (Liquefied Natural Gas) directly
to 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.
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 lying of the 526-km Chennai-
Trichy-Madurai 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 inthe 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
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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, terminal ling services,
etc.
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
offering to the customers.
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 of 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,
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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.
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 customers.
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Liquefied Petroleum Gas (LPG):
Indian is today one of the largest packed-LPG brands in the world. Indian Oil
pioneered the launch of LPG in India in the 1970s and transformed the lives of millions
of people with the introduction of the clean, efficient and safe cooking fuel. LPG also
led to a substantial improvement in the health of women in rural areas by replacing
smoky and unhealthy chullahs with Indane. It is today a fuel synonymous with safety,
reliability and convenience.
LPG is a blend of Butane and Propane readily liquefied under moderate pressure. LPG
vapor is heavier than air; thus it normally settles down in low-lying places. Since LPG
has only a faint scent, a mercaptan odorant is added to help in its detection. In theevent of an LPG leak, the vaporization of liquid cools the atmosphere and condenses
the water vapor contained in it to form a whitish fog, which is easy to observe. LPG in
fairly large concentrations displaces oxygen leading to a nauseous or suffocating
feeling.
Suraksha LPG hose, flame retardant aprons and energy efficient Green Label stoves
are recommended to enhance safety measures while using LPG as fuel.
To prevent diversion, the Indane brand is being backed by RFID technology, a new
concept that helps track the movement of LPG cylinders. Initial trials are currently
going on, after which it will be implemented on a countrywide basis.
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LIQUEFIED PETROLEUM GAS SPECIFICATIONS (LPG):
LPG is a mixture of commercial butane and commercial propane having both
saturated and unsaturated hydrocarbons. LPG marketed in India shall be governed by
Indian Standard Code IS-4576 (Refer Table 1.0) and the test methods by IS-1448.
PHYSICAL PROPERTIES AND CHARACTERISTICS:
DENSITY:
LPG at atmospheric pressure and temperature is a gas which is 1.5 to 2.0 times
heavier than air. It is readily liquefied under moderate pressures. The density of the
liquid is approximately half that of water and ranges from 0.525 to 0.580 @ 15 deg. C.
Since LPG vapor is heavier than air, it would normally settle down at ground level/
low lying places, and accumulate in depressions.
VAPORPRESSURE:
The pressure inside a LPG storage vessel/ cylinder will be equal to the vapor pressure
corresponding to the temperature of LPG in the storage vessel. The vapor pressure is
dependent on temperature as well as on the ratio of mixture of hydrocarbons. At
liquid full condition any further expansion of the liquid, the cylinder pressure will rise
by approx. 14 to 15 kg./sq.cm. For each degree centigrade. This clearly explains the
hazardous situation that could arise due to overfilling of cylinders.
FLAMMABILITY:
LPG has an explosive range of 1.8% to 9.5% volume of gas in air. This is considerablynarrower than other common gaseous fuels. This gives an indication of hazard of LPG
vapor accumulated in low lying area in the eventuality of the leakage or spillage.
The auto-ignition temperature of LPG is around 410-580 deg. C and hence it will not
ignite on its own at normal temperature.
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Commercial LPG & its uses:
LPG touches our lives in so many ways
although we are unaware of it. From
housing to health, from garments to glass,
from livestock to hospitality, Indian Oil
plays its role along the way, bringing your
products that are superior, durable and
simply the best.
Crispy Biscuits & Confectionery Poultry Textile Industry Steel Pharmaceuticals Glass Hotel Industry Reticulated Piping Paint drying Dal mill Goldsmiths favorite
Crispy Biscuits & Confectionery:
LPG is widely used to manufacture Crisp
Biscuits, Soft Bread, Fluffy Pastries, Light
Khari, Spongy Cakes and all types of cream
and bakery products of super quality.
Precision control of temperature and low
sulphur content in LPG makes the product
palatable and passes all Statutory tests for
human consumption.
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Poultry:
Dont count your chickens before they are
hatched, but with Indian Oil you can.
With Indian Oil you get uniform and
localized heating during the first five
weeks both during summer and winter.
The advantages of LPG in chicken brooding
are :
y Better heat control.y Rapid drying of litter.y The power failures in rural areas are very high resulting in heat failures, but
with LPG as the source of fuel this risk is eliminated.
y Direct view of chicks; the heaters dont take any floor area.y Very low LPG consumption of approx. 60 gms per hour or 50 paisa per bird in
winter.
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Textile Industry:
Has it ever occurred to you that to produce
the textiles youre wearing, LPG plays a
significant role. The four main steps in the
production of textile fabric:
y Preparation of fabricy Spinningy Weavingy Finishing which includes Singeing,
Bleaching, Dyeing, Printing,
Calendaring etc.
Each of these processes requires a heating source. Steam though mostly used is not
hot enough for certain operations so LPG or electricity is usually needed in the
Finishing process. LPG is better because the heat is more concentrated. The reflectors
do not have to be polished and heaters do not burn out.
Steel:
Now let us look at Indian Oil role in the
steel industry and here too, once again
Indian Oil steals the show.
Heat treatment of metals normally refers
to any process involving heating and
cooling of the solid metal with the aim of
modifying its physical properties but
without the intention of changing its
chemical composition.
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Indian Oil easily meets these requirements so steel giants like Jindal have stuck to
Indian Oil over the years for all their fuel needs.
Pharmaceuticals:
Just what the doctor ordered Indian Oil
from Bharat Petroleum.
LPG is used to join glass components to
form a single object. Indian Oil is preferred
because a clean flame is obtained which
can be adjusted to the desired size and
shape useful in the production of
ampoules.
Glass:
In the summer heat when you reach for a
thirst quencher, remember Indian Oil hasgone into making the bottles that hold
these great refreshers.
As seen here re-heating of melted
glassware in a special furnace is done
before shaping operations. When making
complicated shapes the glassware may
have to be reheated several times to keep
it malleable. LPG is generally used because
the firing rate is not very high and
combustion must be free of carbon.
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Glass Annealing:
Annealing glassware after manufacture. The cooling rate is very important because
strains will be set up in the glass if it cools at undesired rate.
Annealing is done in normally long ovens with the glass traveling through on a steel
conveyor belt. Indian Oil is used for direct firing and for finer temperature control.
Glass Melting:
The glass is passed through Indian Oil flames for one or more of the following reasons:
a. Round off sharp edges
b. Smooth off gob marks or grinding marks
c. Seal cracks
d. Increase surface luster
e. Heating jobs to remove cutting marks
Hotel Industry:
The cup that cheers the meal that
satisfies the mouth watering delicaciesthanks to Indian Oil.Indian Oil is
associated with top brand names in the
hotel industry like Taj. Normally 90% of
hotel use Indian Oil for cooking of food.
No matter what you serve, Continental,
Chinese, Moghlai, Italian or Russian - a variety of menus to suit various tastes but the
preferred choice and trusted cooking medium Indian Oil
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Reticulated Piping:
LPG at the turn of a tap so quick, so
convenient. Cooking was never easier.Thanks to the reticulated piped gas
available in several homes today, Indian Oil
is available at the turn of a tap. It ensures
increased safety and valuable space saving
in the kitchen. It eliminates cylinder refill
booking and handling. Saving of time and
no need to block money for a 2nd cylinder.
Paint drying:
LPG application in paint drying has got
distinct advantage over conventional
drying ovens. The hot air is generated
which is free from particulate matter,
leaves no ash and temperature control is
precise. The final quality of paint in the
baking oven is uniform. The result is
excellent surface finish and gloss.
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Dal mill:
The conventional method of grain drying is
process of sun - drying or passing of flue
gases through the bed of grain. Themodern method of grain drying is by LPG
Firing system which improves the drying
process and also gives no. 1 quality of the
grain. As the grains are of edible quality,
LPG does not leave any ash or carbon
particles on the grains and does not
produce any foul odor on the finished
surface thus fetching better market price.
Goldsmiths favorite:
LPG produces very powerful flame and can
be as sharp as needle. This type of flame isrequired for goldsmith to make very fine
gold / silver ornaments. The working
atmosphere remains free from obnoxious
gases and thus is conducive to the
workmen.
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Food:
LPG is widely used in the Food Industry like Hotels,
Restaurants, Bakeries, Canteens, and Resorts etc. Low
sulphur content and controllable temperature makes LPG
the most preferred fuel in the food industry.
Metal Industry
The metal industry is indeed one of the
most important consumers of energy. LPG
being a far superior fuel as compared to
the other heavy fuels helps improve the
cost of operation and strikes an economic
balance between fuel price and quality of
the end product. The application is
basically for cutting, heating and melting.
Both ferrous and non-ferrous metals are
frequently cast into shapes by melting and injection or pouringInto suitable patterns
and moulds. LPG in the instant case is an ideal fuel for meeting the requirement of
temperature regulation and desired quality.
Farming Industry
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LPG is the ideal fuel for production of
food by Agriculture and Animal Husbandry.
Drying of crops and Other Farm products
requires clean and sulphur free fuel for
drying activity to avoid any transfer of bad
taste or smell to the dried crops. LPG in
the farming industry can be used for the
following :
Drying of Crops
Cereal Drying
Curing of Tobacco and Rubber
Flame Cultivation
Horticulture
Soil Conditioning
Livestock Farming
Steam Raising
Coal , Furnace Oil & Natural Gas are the
most economical fuel for this application.
Though economical, it is undesirable for
reasons of environmental pollution.
Natural gas being a gaseous fuel requires
pipelines to cater to such requirements.
Hence LPG becomes the most preferred
fuel.
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Aerosol Industry
An aerosol formulation is a blend of an
active ingredient with propellant
,emulsifiers, perfumes, etc. LPG, being
environment friendly, has replaced the
Ozone depleting CFC gases which were
earlier used by the aerosol Industry.
Automotive Industry
Automotive LPG is a clean fuel with high
octane aptly suited for vehicles both in
terms of emissions and cost of the fuel.
The main advantage of using automotive
LPG : it is free of lead, very low in
sulphur,other metals, aromatics and other
contaminants. Unlike Natural Gas, LPG is
not a Green House Gas.
Cogeneration using LPG
LPG is an ideal fuel for electricity & heat / electricity and comfort cooling. This finds
varied Applications in industries requiring power and steam, power and hot air. LPG is
ideally suited for Shopping malls, offices requiring Power and air conditioning.
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RESEARCH METHODOLOGY
Research is an art of scientific and systematic search of pertinent information on a
specific topic. In fact research is an art of scientific investigation. The advance
learners Dictionary of current English lays down the meaning of research as a
careful investigation or inquiry especially through search for new facts in any branch
of knowledge. Redman and moray define research as Systematized effort to gain
new knowledge. Some people consider research as a movement, a movement from
the known to the unknown. It is actually a voyage of discovery. Redman and moray
define research as a systematized effort to gain new knowledge. According to
Clifford woody research comprise defining and redefining problems, formulatinghypothesis or suggested solution; collecting, organizing and evaluating data; make
deduction and reaching conclusions; and at last carefully testing the conclusions to
determine whether they fit the formulating hypothesis
Research Problem:
There are two type of research problem those, which relate to state of nature
and those, which relate to relationship between variables. Essentially two steps areinvolved in formulating the research problem understanding the problem thoroughly
and rephrasing the same into meaningful terms from an analytical point of view.
Research Type:
Research type applied over here is analytical research because the purpose is
to find how to enhance sales of commercial LPG.It includes surveys and fact-finding
inquiries of different kinds.
Sample Design:
The sample design used over here is deliberate sampling. This sample method
involves purposive or deliberate selection of particular units of universe or
constituting a sample, which represents the universe.
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Methods of data collection:
y Primary data.y Secondary data.
Primary data was collected by two methods: -
1) Questionnaire 2) Personal Interviews
The questionnaire: -
A single set of questionnaire was prepared was for all the non-officers. The
questions included both open-ended and close-ended questions.
Open ended questions or unstructured questions are those to which respondent
answer in their own words. Like:
1) What is your name?2) What is your occupation?3) What is your phone number?
Structured questions or close ended questions are those that specify the set of
response alternatives and the response format. A structure question could be multiple
choices, dichotomous or a scale.
Selection of the sample: -
Since it is not possible to cover all customers using commercial LPG,
a sample of them was taken from Paharganj area of New Patna for detailed study.
The sample was selected on a random basis and it was tried to make it as arepresentative of the population as possible. The survey was conducted on 100
customers.
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Collection of sec