Description
It explains about Industry Trends, PEST Analysis of Industry, Competitor Analysis, SWOT analysis, Company Description, General Information about the company, it's Finance performance, SWOT analysis of cairn india and Various Strategies employed.
Name Type Traded as Industry Founded Headquarter
Cairn India Ltd. Public Limited Company NSE-CAIRN, BSE-532792 oil and gas 2007 4th Floor, Vipul Plaza Sector 54, SunCity, Golf Course Road Gurgaon, Haryana 122002 India .
Area served Key people
India and Sri lanka. Rahul Dhir (MD & CEO) Navin Agarwal (Chairman)
Product Revenue Operating Income Total assets Total equity Employees Website
oil and gas US $2,480 million (FY 2011—12) US $1633.72 million
US $10456.49 million US $9446.80 million 1001-5000 www.cairnindia.com
1
Company Description :-
Cairn India is part of the Vedanta Group, a globally diversified natural resources group with wide ranging interests in aluminum, copper, zinc, lead, silver, iron ore, etc. Cairn India is one of the largest private exploration and production companies currently operating in India. The story began in 1979, when Sir Bill Gammell, our former chairman, founded Cairn Energy. In 1988, the company was listed on the London Stock Exchange. Sir Bill Gammell became its first Chief Executive and has held this position for more than two decades, overseeing the organization’s transformation to one of the largest independent exploration and production companies in Europe. As the Indian oil and gas market deregulated in the early 1990s, Cairn’s focus turned to this region, acquiring Command Petroleum Ltd in 1996, an Australian-quoted company with interests in South Asia. Cairn Energy PLC, a FTSE 100 company, was one of the first UK companies to invest in the Indian oil and gas sector. Cairn has been operating in India for more than 15 years and has played an active role in developing the oil and gas resources in the country. Ravva in eastern India was the first offshore oil and gas field to be developed, followed by the Lakshmi gas field in western India, which was discovered in 2000 and commenced production in 2002. In January 2004, Cairn added the Mangala oil field in Rajasthan to its assets and this, along with the other discoveries in Rajasthan, are expected to form core of the future developments in India. On 9 January 2007, Cairn India Limited was listed on the Bombay Stock Exchange and the National Stock Exchange of India. The Mangala field in the Rajasthan block, Barmer was discovered in January 2004. The field was dedicated to the nation in August 2009 by the Hon’ble Prime Minister of India, Dr. Manmohan Singh. This discovery is considered to be the largest onshore oil discovery in India in more than two decades. To date, 25 discoveries have been made in the Rajasthan block and the company is focused on exploiting the full potential. Cairn India has a total of 10 blocks in its portfolio in three strategically focused areas - one block in Rajasthan, three on the west coast and six on the east coast, including one in Sri Lanka. Cairn India produces oil and gas from three assets in India: Rajasthan and Cambay on the west coast of India and Ravva on the east coast of India. Cairn India and its JV partners account for more than 20 percent of India’s domestic crude oil production. Harnessing a combination of innovation and entrepreneurship, Cairn India is already one of the most significant oil and gas exploration and production companies in India. It is amongst the top 20 global independent E&P companies. These successes have created a company with more than 1,399 employees and world class oil reserves in one of the fastest-growing economies in the world.
2
Today, Cairn India has operations in Rajasthan, Andhra Pradesh and Gujarat. The company operates the largest producing oil field in the Indian private sector and has pioneered the use of cutting-edge technology to extend production life. Cairn India sells its oil to major refineries across India and its gas to both public and private buyers.
India's major shareholders are:* As on 30 th June 2012
Key Shareholding Categories* Vedanta Group (Promoter) Cairn UK Holdings Limited Other Institutions Foreign Institutional Investors Others
% 58.85 18.28 6.40 8.50 7.97
Cairn India's major shareholders by type are:-
3
Financial Highlights for FY2012:• Average daily gross production increased by 16% — from 149,103boepd in FY2011 to 172,887 boepd inFY2012. • Revenues grew by 15.4% — from Rs.102,779 million (Rs.10,278 crore) in FY2011 to Rs.118,607 million (Rs.11,861 crore) in FY2012 • EBIDTA rose by 10.7% — from Rs.83,562 million (Rs.8,356 crore) in FY2011 to Rs.92,544 million (Rs.9,254 crore) in FY2012. • PBT increased by 22% — from Rs.68,900 million (Rs.6,890 crore) inbFY2011 to Rs.84,235 million (Rs.8,424 crore) in FY2012. • PAT rose by 25% — from Rs.63,344 million (Rs.6,334 crore) in FY2011 to Rs.79,378 million (Rs.7,938 crore) in FY2012
Business Risk Management:Business Risk Management Process Cairn India’s business risk management system identifies and document business risks and appropriate controls to mitigate these across all aspects of the Company’s business. The risk management policy has been defined and establishes the principle by which risks are managed across the Company. The process is cascaded throughout the Company with independent, function-specific, risk management sub-committees that include appropriate cross-functional membership. These sub-committees address risks pertinent to the assets, projects or functions, and provide regular reports to the Risk Management Committee. The Risk Management Committee reviews these reports at its meetings and considers other risks not captured by the sub-committees to derive the overall Cairn India Group’s risk assessment.
Strategy:-
Cairn India's strategy is to establish commercial reserves from strategic positions in high potential exploration plays in order to create and deliver shareholder value. In the implementation of this strategy, Cairn India focuses on material positions that are capable of providing significant growth through exploration.
4
Pioneering discoveries:In India, Cairn has made 40 oil and gas discoveries. Three out of the seven landmark discoveries in India in the last decade have been made by Cairn. In January 2004, Cairn discovered the largest onshore oilfield in India since 1985 – the Mangala field in Rajasthan. To date, 25 discoveries have been made in Rajasthan.
Working in partnership to provide energy for the future:Working with the Government of India, State Governments and the joint venture partners for more than a decade, Cairn India has developed an in-depth understanding of the regulatory environment and, more importantly, has laid the foundations for the strong relationships that are needed to help provide some of the energy needs of one of the fastest-growing nations in the world. Cairn India aims to make a positive impact wherever it operate, not just for Cairn India employees but for their families and the wider community. The Company operates the largest producing oil field in the Indian private sector and has pioneered the use of cutting-edge technology to extend production life. Cairn India holds material exploration and production positions in 11 blocks in west and east India along with new exploration rights elsewhere in India and Sri Lanka.
BUSINESS : Cairn India currently produces nearly 15% of India's crude oil output from its fields in Rajasthan. The company owns 70% stake in the block, while the rest 30% is with ONGC. Cairn India's parent company the UK-based Cairn Energy Plc sold a majority stake in it to the Vedanta Group at Rs 355 a share. To obtain necessary approvals, Cairn India had to agree to bear the royalty and cess burden related to its share of production.
FINANCIALS : Cairn India's consolidated revenues and profits jumped more than six-fold in FY11 as it ramped up production at Mangala field. It is just four quarters since the Mangala output commenced, hence year-on-year comparisons have little relevance for the company. The company ended FY11 as a cash-surplus company. With around Rs 2,500 crore of cash generation every quarter it is well placed to carry out E&P projects in its other fields. VALUATIONS: Cairn India is currently trading at a price-to-earnings multiple of 6, which is substantially lesser to ONGC's 10.7 and Oil India's 11.6.
5
References:1. 2. 3. 4. www.cairnindia.com www.wikipedia.org www.articles.economictimes.indiatimes.com www.researchandmarkets.com
6
doc_197998814.docx
It explains about Industry Trends, PEST Analysis of Industry, Competitor Analysis, SWOT analysis, Company Description, General Information about the company, it's Finance performance, SWOT analysis of cairn india and Various Strategies employed.
Name Type Traded as Industry Founded Headquarter
Cairn India Ltd. Public Limited Company NSE-CAIRN, BSE-532792 oil and gas 2007 4th Floor, Vipul Plaza Sector 54, SunCity, Golf Course Road Gurgaon, Haryana 122002 India .
Area served Key people
India and Sri lanka. Rahul Dhir (MD & CEO) Navin Agarwal (Chairman)
Product Revenue Operating Income Total assets Total equity Employees Website
oil and gas US $2,480 million (FY 2011—12) US $1633.72 million
US $10456.49 million US $9446.80 million 1001-5000 www.cairnindia.com
1
Company Description :-
Cairn India is part of the Vedanta Group, a globally diversified natural resources group with wide ranging interests in aluminum, copper, zinc, lead, silver, iron ore, etc. Cairn India is one of the largest private exploration and production companies currently operating in India. The story began in 1979, when Sir Bill Gammell, our former chairman, founded Cairn Energy. In 1988, the company was listed on the London Stock Exchange. Sir Bill Gammell became its first Chief Executive and has held this position for more than two decades, overseeing the organization’s transformation to one of the largest independent exploration and production companies in Europe. As the Indian oil and gas market deregulated in the early 1990s, Cairn’s focus turned to this region, acquiring Command Petroleum Ltd in 1996, an Australian-quoted company with interests in South Asia. Cairn Energy PLC, a FTSE 100 company, was one of the first UK companies to invest in the Indian oil and gas sector. Cairn has been operating in India for more than 15 years and has played an active role in developing the oil and gas resources in the country. Ravva in eastern India was the first offshore oil and gas field to be developed, followed by the Lakshmi gas field in western India, which was discovered in 2000 and commenced production in 2002. In January 2004, Cairn added the Mangala oil field in Rajasthan to its assets and this, along with the other discoveries in Rajasthan, are expected to form core of the future developments in India. On 9 January 2007, Cairn India Limited was listed on the Bombay Stock Exchange and the National Stock Exchange of India. The Mangala field in the Rajasthan block, Barmer was discovered in January 2004. The field was dedicated to the nation in August 2009 by the Hon’ble Prime Minister of India, Dr. Manmohan Singh. This discovery is considered to be the largest onshore oil discovery in India in more than two decades. To date, 25 discoveries have been made in the Rajasthan block and the company is focused on exploiting the full potential. Cairn India has a total of 10 blocks in its portfolio in three strategically focused areas - one block in Rajasthan, three on the west coast and six on the east coast, including one in Sri Lanka. Cairn India produces oil and gas from three assets in India: Rajasthan and Cambay on the west coast of India and Ravva on the east coast of India. Cairn India and its JV partners account for more than 20 percent of India’s domestic crude oil production. Harnessing a combination of innovation and entrepreneurship, Cairn India is already one of the most significant oil and gas exploration and production companies in India. It is amongst the top 20 global independent E&P companies. These successes have created a company with more than 1,399 employees and world class oil reserves in one of the fastest-growing economies in the world.
2
Today, Cairn India has operations in Rajasthan, Andhra Pradesh and Gujarat. The company operates the largest producing oil field in the Indian private sector and has pioneered the use of cutting-edge technology to extend production life. Cairn India sells its oil to major refineries across India and its gas to both public and private buyers.
India's major shareholders are:* As on 30 th June 2012
Key Shareholding Categories* Vedanta Group (Promoter) Cairn UK Holdings Limited Other Institutions Foreign Institutional Investors Others
% 58.85 18.28 6.40 8.50 7.97
Cairn India's major shareholders by type are:-
3
Financial Highlights for FY2012:• Average daily gross production increased by 16% — from 149,103boepd in FY2011 to 172,887 boepd inFY2012. • Revenues grew by 15.4% — from Rs.102,779 million (Rs.10,278 crore) in FY2011 to Rs.118,607 million (Rs.11,861 crore) in FY2012 • EBIDTA rose by 10.7% — from Rs.83,562 million (Rs.8,356 crore) in FY2011 to Rs.92,544 million (Rs.9,254 crore) in FY2012. • PBT increased by 22% — from Rs.68,900 million (Rs.6,890 crore) inbFY2011 to Rs.84,235 million (Rs.8,424 crore) in FY2012. • PAT rose by 25% — from Rs.63,344 million (Rs.6,334 crore) in FY2011 to Rs.79,378 million (Rs.7,938 crore) in FY2012
Business Risk Management:Business Risk Management Process Cairn India’s business risk management system identifies and document business risks and appropriate controls to mitigate these across all aspects of the Company’s business. The risk management policy has been defined and establishes the principle by which risks are managed across the Company. The process is cascaded throughout the Company with independent, function-specific, risk management sub-committees that include appropriate cross-functional membership. These sub-committees address risks pertinent to the assets, projects or functions, and provide regular reports to the Risk Management Committee. The Risk Management Committee reviews these reports at its meetings and considers other risks not captured by the sub-committees to derive the overall Cairn India Group’s risk assessment.
Strategy:-
Cairn India's strategy is to establish commercial reserves from strategic positions in high potential exploration plays in order to create and deliver shareholder value. In the implementation of this strategy, Cairn India focuses on material positions that are capable of providing significant growth through exploration.
4
Pioneering discoveries:In India, Cairn has made 40 oil and gas discoveries. Three out of the seven landmark discoveries in India in the last decade have been made by Cairn. In January 2004, Cairn discovered the largest onshore oilfield in India since 1985 – the Mangala field in Rajasthan. To date, 25 discoveries have been made in Rajasthan.
Working in partnership to provide energy for the future:Working with the Government of India, State Governments and the joint venture partners for more than a decade, Cairn India has developed an in-depth understanding of the regulatory environment and, more importantly, has laid the foundations for the strong relationships that are needed to help provide some of the energy needs of one of the fastest-growing nations in the world. Cairn India aims to make a positive impact wherever it operate, not just for Cairn India employees but for their families and the wider community. The Company operates the largest producing oil field in the Indian private sector and has pioneered the use of cutting-edge technology to extend production life. Cairn India holds material exploration and production positions in 11 blocks in west and east India along with new exploration rights elsewhere in India and Sri Lanka.
BUSINESS : Cairn India currently produces nearly 15% of India's crude oil output from its fields in Rajasthan. The company owns 70% stake in the block, while the rest 30% is with ONGC. Cairn India's parent company the UK-based Cairn Energy Plc sold a majority stake in it to the Vedanta Group at Rs 355 a share. To obtain necessary approvals, Cairn India had to agree to bear the royalty and cess burden related to its share of production.
FINANCIALS : Cairn India's consolidated revenues and profits jumped more than six-fold in FY11 as it ramped up production at Mangala field. It is just four quarters since the Mangala output commenced, hence year-on-year comparisons have little relevance for the company. The company ended FY11 as a cash-surplus company. With around Rs 2,500 crore of cash generation every quarter it is well placed to carry out E&P projects in its other fields. VALUATIONS: Cairn India is currently trading at a price-to-earnings multiple of 6, which is substantially lesser to ONGC's 10.7 and Oil India's 11.6.
5
References:1. 2. 3. 4. www.cairnindia.com www.wikipedia.org www.articles.economictimes.indiatimes.com www.researchandmarkets.com
6
doc_197998814.docx