Description
It explains about Industry Trends oil industry, PEST Analysis of oil Industry, Competitor Analysis, SWOT analysis, Company Description, General Information about the IOCL, it's Finance performance, SWOT analysis of IOCL and Various Strategies employed by IOCL.
Indian Oil Corporation. Oil industry analysisThe petroleum/oil industry includes the global processes of exploration, extraction, refining transporting (often by oil tankers and pipelines), and marketing petroleum products. The largest volume products of the industry are fuel oil and gasoline (petrol). Petroleum (oil) is also the raw material for many chemical products, including pharmaceuticals, solvents, fertilizers, pesticides, and plastics. The industry is usually divided into three major components: upstream, midstream and downstream. Midstream operations are usually included in the downstream category. Petroleum is vital to many industries, and is of importance to the maintenance of industrial civilization in its current configuration, and thus is a critical concern for many nations. Oil accounts for a large percentage of the world’s energy consumption, ranging from as low of 32% for Europe and Asia, up to a high of 53% for the Middle East. Other geographic regions’ consumption patterns are as follows: South and Central America (44%), Africa (41%), and North America (40%). The world consumes 30 billion barrels (4.8 km³) of oil per year, with developed nations being the largest consumers. The United States consumed 25% of the oil produced in 2007. The production, distribution, refining, and retailing of petroleum taken as a whole represents the world's largest industry in terms of dollar value. Over the years India Petroleum Industry has played an influential part in triggering the speedy expansion of the country's economy by contributing 15% in the total GDP. Further to this, petroleum exports gave new dimension to foreign exchange earnings by drawing US$ 23.64 billion in the FY 2008-09. To assist and acknowledge the expansion of the sector, the Cabinet Committee on Economic Affairs felicitated 44 petroleum research blocks on November 2008 under the New Exploration Licensing Policy (NELP-VII). GLOBAL perspective – Europian perspective - What are the major challenges currently facing oil and gas businesses in Europe? => Currently, Chinese and indian oil companies are driving a lot of the merger and acquisition activity in the market. the Chinese, in particular, are looking to secure their supply and are using the current financial environment, with its low oil prices and the difficulties the independents have in raising debt and finance, to gain access to reserves. and, because these are national oil companies and are effectively supported by the governments behind them, they are able to provide significant debt for these transactions. the protectionism of reserves continues to drive the agenda of governments as they seek to retain control of developing their reserves. However, the lack of financing means that they are forced to look for outside help to fund the huge amount of capital expenditure required to fully bring these reserves to market. this provides opportunities for those companies with access to capital and government funds.
Russian perspective - What are the major challenges facing oil and gas companies in Russia? => Russia has a number of the world’s largest oil and gas companies. i think the challenges facing the companies in russia are two-fold. First, there is an external challenge caused by the volatility of global oil and gas prices – management is concerned about balancing demand and supply. all projects require significant capital investment and it is difficult for management to accurately project future returns. For example, Gazprom and other players in the gas sector need to develop new gas fields and transportation capacity in remote areas, which requires huge capital investment. russian companies are spending more per unit of production or transportation capacity than their peers, weighing down return on capital. at the same time, there is volatility in demand; in recent years, the demand for russian gas from European countries dropped by 15 to 30 percent, affecting revenue streams and companies’ projections. Recent happenings - 1.China Petroleum and Chemical Corp, or Sinopec Corp, said its crude throughput in the first half of 2012 rose 1.13 percent over a year earlier, easing from a 3-percent expansion in 2011. 2.NGC Seeks Intervention Of Ministry of Petroleum and Natural Gas for clearance by Indian Navy of Rig Actinia which is to drill in NELP block KG-OSN-2004/1 in Krishna-Goda varibasin. 3.JPPAC Says ONGC Crude Has High Level Of Base Sediments & Water. 4.Who is the lowest bidder for ONGC’s Heera Project (HRP-II 3) ? ONGC considers the consortium comprising Leighton Welspun Contractors and Gulf Piping of Abu Dhabi as the L-1. This has been questioned by L&T through a huge representation to ONGC with copies to tax authorities. As the news reached www.indianoilandgas.com only around midnight, Leighton Welspun - led consortium could not be contacted. SWOT analysis of Indian Oil and petroleum industry– Strengths1.world's one of the big players. 2.Strong brand name in south east Asia. 3.Excellent financial position. 4. companies Entered in fortune 500 company listing. And also few companies are entered in forbes. Weakness- 1.Long term debt 2.Legal issues 3.Accusations of being favored by the government Opportunities-
1.Growing demand for petroleum products 2.Buyout of competition Threats1.Government regulations 2.High Competition 3.Environmental laws 4.Economic issues. PEST analysis of oil and petroleum industry1. Political factorsThese are how and to what degree a govt. intervenes in the economy. Specifically, political factors include areas such astax policy, labour law , env. law and political stability. Political factors may also include goods and services which the government wants to provide or be provided merit goods and those that the government does not want to be provided merit bads. Furthermore ,governments have great influence on the health , education, and infrastructure of a nation. 2. Economic factors These include economic growth, exchange rate, and the inflation rate. These factors have major impacts on how businesses operate and make decisions. For example, interest rates affect a firm cost of capital and therefore to what extent a business grows and expands. Exchange rates affect the costs of exporting goods and the supply and price of imported goods in an economy. 3.Social factorsThese include the cultural aspects and include health consciousness, population growth rate, age distribution, career attitudes and emphasis on safety. Trends in social factors affect the demand for a company's products and how that company operates. For example, an ageing population may imply a smaller and less-willing workforce (thus increasing the cost of labor).Furthermore, companies may change various management strategies to adapt to these social trends (such as recruiting older workers). 4.Technological factors These include ecological and environmental aspects, such as R&D activity, automation, technology incentives and the rate of technological change. They can determine barriers to entry, minimum efficient production level and influence outsourcing decisions. Furthermore, technological shifts can affect costs, quality, and lead to innovation.
5. Environmental factorsThese include weather, climate, and climate change, which may especially affect industries such as tourism, farming, and insurance .Furthermore, growing awareness to climate change is affecting how companies operate and the products they offer--it is both creating new markets and diminishing or destroying existing ones.
6.Legal factorsThese include discrimination law, consumer law ,antitrust law, employment law, and health and safety law. These factors can affect how a company operates, its costs, and the demand for its products. Brief introduction of ‘Indian oil company’Indian Oil Corporation Limited, or IndianOil, is an Indian state-owned oil and gas corporation with its headquarters in New Delhi, India. The company is the world's 83rd largest public corporation, according to the Fortune Global 500 list, and the largest public corporation in India when ranked by revenue. IndianOil and its subsidiaries account for a 47% share in the petroleum products market, 34% share in refining capacity and 67% downstream sector pipelines capacity in India. The IndianOil Group of Companies owns and operates 10 of India's 21 refineries with a combined refining capacity of 65.7 million metric tons per year. The President of India owns 78.92% (1.9162 billion shares) in the company. In FY 2011 IOCL sold 64.1 million tons of petroleum products and reported a PBT of 90.96 billion, and the Government of India earned an excise duty of 257.899 billion and tax of 16,500 million. It is one of the five Maharatna status companies of India, apart from Coal India Limited, NTPC Limited, Oil and Natural Gas Corporation and Steel Authority of India Limited IndianOil operates the largest and the widest network of fuel stations in the country, numbering about 19,463 (15,946 regular ROs & 3,517 Kissan Sewa Kendra). It has also started Auto LPG Dispensing Stations (ALDS). It supplies Indane cooking gas to over 62.4 million households through a network of 5,456 Indian distributors. In addition, IndianOil's Research and Development Center (R&D) at Faridabad supports, develops and provides the necessary technology solutions to the operating divisions of the corporation and its customers within the country and abroad. On 28 May 2012, Indian Oil hinted at reduction in prices of petrol.[4] Establishment - Indian Oil began operation in 1959 as Indian Oil Company Ltd. The Indian Oil Corporation was formed in 1964, with the merger of Indian Refineries Ltd. Important offices of Indian oil corp. :Registered Office IndianOil Bhavan, G-9, Ali Yavar Jung Marg, Bandra (East), Mumbai - 400 051 Corporate Office 3079/3, Sadiq Nagar, J.B. Tito Marg, New Delhi - 110 049
Refineries Division
Head Office SCOPE Complex, Core-2, 7, Institutional Area, Lodhi Road, New Delhi - 110 003 Core team of Indian oil corporation - oard Member's
? ? ? ?
Chairman (1)- R. S. Butola Functional Directors 7 Non-Functional Director 11 Total 18
Functional dairectors - Shri P. K. Goyal, Shri A.M.K. Sinha, Shri Sudhir Bhalla, Dr. R.K. Malhotra, Shri K.K. Jha, Shri B.N. Bankapur, Shri G.C. Daga. Principle executives – Vipin Kumar Advisor Security : Arun SinghalChief Vigilance Officer:V P Sharma Executive Director (Internal Audit) :V K Sood Executive Director (Corporate Finance) :S C Jain Executive Director (Finance - Business Development): J P Guharay Executive Director (Mathura Refinery) :R Narayanan Executive Director (Corporate Affairs) :S K Garg Executive Director (IndianOil Foundation) :A K Roy Executive Director (Corporate Planning & Economic Studies): Satish Kumar Executive Director (Human Resource) H V Singh Executive Director (I/C) (Projects-PDRP), Refineries V S Okhde Executive Director (Exploration & Production) Share holding pattern – Aggregate of public share holding – 21.08 % Promoters and group of promoters share holding – 78.02 %.
SWOT analysis of Indian oil corporation – Strengths1.India's one of the biggest players 2.Strong brand name 3.Excellent financial position 4.Entered in fortune 500 company listing. 5.One of the few Indian companies to be featured in Forbes 6.Employs over 34371 people. Weakness-
1.Long term debt 2.Legal issues 3.Accusations of being favored by the government Opportunities1.Growing demand for petroleum products 2.Buyout of competition Threats1.Government regulations 2.High Competition 3.Environmental laws 4.Economic
? ? ? ? ? ? ?
Future challengesTOTAL DEREGULATION COMPETITION FROM PRIVATE REFINING COMPANIES PRODUCT QUALITY – STRINGENT MARKET DYNAMICS MARGIN PRESSURE CUSTOMER FOCUS
Compititors- 1.Bharat Petroleum 2.Hindustan Petroleum 3.Reliance Industries Ltd 4.ONGC
FINANCIAL Performance of company- On march 2012Sales- 408924.03 crores Profit before tax – 10113.98 crores Net profit- 4265.27 crores Total capital employed- 59544.75 crores
Refineries An Indian Oil Petrol Pump in Mumbai. In Assam Digboi refinery in Assam is India's oldest refinery and was commissioned in 1901. Originally a part of Assam oil company it became part of IndianOil in 1981. Its original refining capacity had been 0.5 MMTPA since 1901. Modernisation project of this refinery was completed by 1996 and the refinery now has an enhanced capacity of 0.65 MMTPA. UOP licensed the technology for the Coking process in this refinery. Guwahati refinery - the first public sector refinery of the country, was built with Romanian collaboration and was inaugurated by Late Pt Jawaharlal Nehru the first Prime Minister of India, on 1 January 1962. Bongaigaon refinery became the eighth refinery of IndianOil after merger of Bongaigaon Refinery & Petrochemicals Limited w.e.f. 25 March 2009. It is located at Dhaligaon in Chirang district of Assam, 200 km west of Guwahati. In Bihar Brauni refinery in Bihar, was built in collaboration with Russia and Romania. It was commissioned in 1964 with a capacity of 1 MMTPA. Its capacity today is 6 MMT. In Gujarat, Gujarat refinary at Koyali (near Vadodara) in Gujarat in Western India, is IndianOil’s second
largest refinery. The refinery was commissioned in 1965. It also houses the first hydrocracking unit of the country. Its present capacity is 13.70 MMTPA. In West Bengal Haldia refinary is the only coastal refinery of the Corporation, situated 136 km downstream of Kolkata in the Purba Medinipur (East Midnapore) district. It was commissioned in 1975 with a capacity of 2.5 MMTPA, which has since been increased to 7.5 MMTPA. In UP Mathura refinary was commissioned in 1982 as the sixth refinery in the fold of IndianOil and with an original capacity of 6.0 MMTPA. Located strategically between the historic cities of Delhi and Agra, the capacity of Mathura refinery was increased to 8.8 MM. In hariyana Panipat refinery is the seventh and largest refinery of IndianOil. The original refinery with 6 MMTPA capacity was built and commissioned in 1998. Panipat Refinery has since expanded its refining capacity to 15 MMTPA. It is believed that the future IOCL refinery will be Paradeep Refinery. It is expected to be handed over in 2012. Subsidiary refineries – Chennai Petroleum Actual process of refining –
Hydrocarbon molecules in crude do NOT meet customer needs - SEPARATION PROCESSES (Primary Processes) - CONVERSION PROCESSES (Secondary Processes) - FINISHING PROCESSES (Secondary Processes) - Segregate the content –Rearrange molecules- Remove Contaminant
- Marketable products ? ? ? ? ? ? Strategies of Indian oil corporation – VALUE ADDITION CAPACITY SATURATION QUICK RESPONSE – QUALITY / QUANTITY COST REDUCTION EFFECTIVE MANNING INTEGRATION – FORWARD/BACKWARD/ LATERAL
1.Strateties for selection of cruce oil - Overall refinery economics depend on Crude cost + Processing Cost,Lower the S, lower the SG = Higher is the crude price Lower processing requirement, HACs are normally cheaper ? Higher neutralization costRefineries would like to handle crudes with TAN<0.5 & subsequent process streamscontaining TAN<
? ?
Crude availability shifting from Light sweet ? Heavy sour ? Extra Heavy. HACs are opportunity crudes New Refinery: 1.design to process Extra Heavy Crudes 2.design to process HACs in admixture
2.Strategies for petro retail marketing of Indian oil corporation With Petroleum Marketing becoming increasingly competitive, a closer focus on identifying customer needs and developing attitudes and skills towards better service and improved products is required at all levels in the organization. By delivering value proposition that customer’s want-convenience, participation and anticipation is the key business challenge for companies, retained / engaged customer (both external and internal) is the most valuable asset of any organization. This programme sensitizes participants to internalize this understanding of internal and external customers towards building an enduring organization. The programme is designed to deliver without disturbing the field executives. 3. Market demands- clean product, more gasoline, more diesel, specific product, less residue. How to meet these demands- more sophisticated distillation, physical separation steps , chemical conversion steps. 4.To minimize pollution- Adequate Stack height for better dispersion of pollutants • Desulphurisation of fuel gas • Provision of a Sulphur recovery unit • Provision of continuous SO2 analyzers in all stacks • Providing Air monitoring stations • Efficiently running Effluent Treatment Plants •New Unit / Up-to-date technology for producing Ultra low Sulphur and benzene free fuels. 5. Adoption of new technologyDesulfurization of fuel products for reduction in Sulfur- DHDS unit, Kero-HDS unit, DHDT Conversion processes for bottom of the barrel upgradation - FCC, Hydrocracker, DCU etc. Quality Improvement to meet environment norm- Cetane improvement in Diesel; Benzene, Olefin, Aromatics & Sulfur. Challenges of industry - Environmental pressure- key factor in development & acquisition of new technology Sophistication in equipment design- demands for high performance products. Adoption of Euro norms for environment friendly transport fuels production, viz., Gasoline & Diesel. Demand for environment friendly, high quality LOBS- API class-II/ III. Cost Intensive Refining Technology.
Constraints to meet challenges- Crude oil sourcing – Indigenous production is only about 30% of the total requirement. Sharp fall in the availability of low Sulfur crude oil and even to the extent lighter crude oil. Hence refineries are forced to process wide variety of crude oil including high sulfur crude .Selection of suitable technology having enough flexibility
Joint ventures of company –
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IndianOil Ltd.
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Lanka IOC PLC – Group company for retail and storage operations in sri lanka. It is listed in the Colombo Stock Exchange. It was locked into a bitter subsidy payment dispute with Sri Lanka's Government which has since been resolved IOC Middle East FZE And Chennai coorporation Ltd. Green Gas Ltd. – a joint venture was gas authority of india limited for city-wide gas distribution networks. Indo Cat Pvt. Ltd., with intercat USA, for manufacturing 15,000 tonnes per annum of FCC (fluidised catalytic cracking) catalysts & additives in India. IndianOil – CREDA Biofuels Ltd., a joint venture with Chattisgarh government for production and marketing of Bio-fuels. Numerous exploration and production ventures with oil india lmt.
Products of Indian oil - IndianOil is not only the largest commercial enterprise in the country it is the flagship corporate of the Indian Nation. Besides having a dominant market share, IndianOil is widely recognized as India’s dominant energy brand and customers perceive IndianOil as a reliable symbol for high quality products and services. Products are as follows – Indane gas, natural gas, auto gas, gasoline, gas oil, jet fuel, servo lubricants and gases, marine fuel and lubricants, kerosin, industrial fuel, bitumin, petrochemicals, special products, crude oil.
doc_443936818.docx
It explains about Industry Trends oil industry, PEST Analysis of oil Industry, Competitor Analysis, SWOT analysis, Company Description, General Information about the IOCL, it's Finance performance, SWOT analysis of IOCL and Various Strategies employed by IOCL.
Indian Oil Corporation. Oil industry analysisThe petroleum/oil industry includes the global processes of exploration, extraction, refining transporting (often by oil tankers and pipelines), and marketing petroleum products. The largest volume products of the industry are fuel oil and gasoline (petrol). Petroleum (oil) is also the raw material for many chemical products, including pharmaceuticals, solvents, fertilizers, pesticides, and plastics. The industry is usually divided into three major components: upstream, midstream and downstream. Midstream operations are usually included in the downstream category. Petroleum is vital to many industries, and is of importance to the maintenance of industrial civilization in its current configuration, and thus is a critical concern for many nations. Oil accounts for a large percentage of the world’s energy consumption, ranging from as low of 32% for Europe and Asia, up to a high of 53% for the Middle East. Other geographic regions’ consumption patterns are as follows: South and Central America (44%), Africa (41%), and North America (40%). The world consumes 30 billion barrels (4.8 km³) of oil per year, with developed nations being the largest consumers. The United States consumed 25% of the oil produced in 2007. The production, distribution, refining, and retailing of petroleum taken as a whole represents the world's largest industry in terms of dollar value. Over the years India Petroleum Industry has played an influential part in triggering the speedy expansion of the country's economy by contributing 15% in the total GDP. Further to this, petroleum exports gave new dimension to foreign exchange earnings by drawing US$ 23.64 billion in the FY 2008-09. To assist and acknowledge the expansion of the sector, the Cabinet Committee on Economic Affairs felicitated 44 petroleum research blocks on November 2008 under the New Exploration Licensing Policy (NELP-VII). GLOBAL perspective – Europian perspective - What are the major challenges currently facing oil and gas businesses in Europe? => Currently, Chinese and indian oil companies are driving a lot of the merger and acquisition activity in the market. the Chinese, in particular, are looking to secure their supply and are using the current financial environment, with its low oil prices and the difficulties the independents have in raising debt and finance, to gain access to reserves. and, because these are national oil companies and are effectively supported by the governments behind them, they are able to provide significant debt for these transactions. the protectionism of reserves continues to drive the agenda of governments as they seek to retain control of developing their reserves. However, the lack of financing means that they are forced to look for outside help to fund the huge amount of capital expenditure required to fully bring these reserves to market. this provides opportunities for those companies with access to capital and government funds.
Russian perspective - What are the major challenges facing oil and gas companies in Russia? => Russia has a number of the world’s largest oil and gas companies. i think the challenges facing the companies in russia are two-fold. First, there is an external challenge caused by the volatility of global oil and gas prices – management is concerned about balancing demand and supply. all projects require significant capital investment and it is difficult for management to accurately project future returns. For example, Gazprom and other players in the gas sector need to develop new gas fields and transportation capacity in remote areas, which requires huge capital investment. russian companies are spending more per unit of production or transportation capacity than their peers, weighing down return on capital. at the same time, there is volatility in demand; in recent years, the demand for russian gas from European countries dropped by 15 to 30 percent, affecting revenue streams and companies’ projections. Recent happenings - 1.China Petroleum and Chemical Corp, or Sinopec Corp, said its crude throughput in the first half of 2012 rose 1.13 percent over a year earlier, easing from a 3-percent expansion in 2011. 2.NGC Seeks Intervention Of Ministry of Petroleum and Natural Gas for clearance by Indian Navy of Rig Actinia which is to drill in NELP block KG-OSN-2004/1 in Krishna-Goda varibasin. 3.JPPAC Says ONGC Crude Has High Level Of Base Sediments & Water. 4.Who is the lowest bidder for ONGC’s Heera Project (HRP-II 3) ? ONGC considers the consortium comprising Leighton Welspun Contractors and Gulf Piping of Abu Dhabi as the L-1. This has been questioned by L&T through a huge representation to ONGC with copies to tax authorities. As the news reached www.indianoilandgas.com only around midnight, Leighton Welspun - led consortium could not be contacted. SWOT analysis of Indian Oil and petroleum industry– Strengths1.world's one of the big players. 2.Strong brand name in south east Asia. 3.Excellent financial position. 4. companies Entered in fortune 500 company listing. And also few companies are entered in forbes. Weakness- 1.Long term debt 2.Legal issues 3.Accusations of being favored by the government Opportunities-
1.Growing demand for petroleum products 2.Buyout of competition Threats1.Government regulations 2.High Competition 3.Environmental laws 4.Economic issues. PEST analysis of oil and petroleum industry1. Political factorsThese are how and to what degree a govt. intervenes in the economy. Specifically, political factors include areas such astax policy, labour law , env. law and political stability. Political factors may also include goods and services which the government wants to provide or be provided merit goods and those that the government does not want to be provided merit bads. Furthermore ,governments have great influence on the health , education, and infrastructure of a nation. 2. Economic factors These include economic growth, exchange rate, and the inflation rate. These factors have major impacts on how businesses operate and make decisions. For example, interest rates affect a firm cost of capital and therefore to what extent a business grows and expands. Exchange rates affect the costs of exporting goods and the supply and price of imported goods in an economy. 3.Social factorsThese include the cultural aspects and include health consciousness, population growth rate, age distribution, career attitudes and emphasis on safety. Trends in social factors affect the demand for a company's products and how that company operates. For example, an ageing population may imply a smaller and less-willing workforce (thus increasing the cost of labor).Furthermore, companies may change various management strategies to adapt to these social trends (such as recruiting older workers). 4.Technological factors These include ecological and environmental aspects, such as R&D activity, automation, technology incentives and the rate of technological change. They can determine barriers to entry, minimum efficient production level and influence outsourcing decisions. Furthermore, technological shifts can affect costs, quality, and lead to innovation.
5. Environmental factorsThese include weather, climate, and climate change, which may especially affect industries such as tourism, farming, and insurance .Furthermore, growing awareness to climate change is affecting how companies operate and the products they offer--it is both creating new markets and diminishing or destroying existing ones.
6.Legal factorsThese include discrimination law, consumer law ,antitrust law, employment law, and health and safety law. These factors can affect how a company operates, its costs, and the demand for its products. Brief introduction of ‘Indian oil company’Indian Oil Corporation Limited, or IndianOil, is an Indian state-owned oil and gas corporation with its headquarters in New Delhi, India. The company is the world's 83rd largest public corporation, according to the Fortune Global 500 list, and the largest public corporation in India when ranked by revenue. IndianOil and its subsidiaries account for a 47% share in the petroleum products market, 34% share in refining capacity and 67% downstream sector pipelines capacity in India. The IndianOil Group of Companies owns and operates 10 of India's 21 refineries with a combined refining capacity of 65.7 million metric tons per year. The President of India owns 78.92% (1.9162 billion shares) in the company. In FY 2011 IOCL sold 64.1 million tons of petroleum products and reported a PBT of 90.96 billion, and the Government of India earned an excise duty of 257.899 billion and tax of 16,500 million. It is one of the five Maharatna status companies of India, apart from Coal India Limited, NTPC Limited, Oil and Natural Gas Corporation and Steel Authority of India Limited IndianOil operates the largest and the widest network of fuel stations in the country, numbering about 19,463 (15,946 regular ROs & 3,517 Kissan Sewa Kendra). It has also started Auto LPG Dispensing Stations (ALDS). It supplies Indane cooking gas to over 62.4 million households through a network of 5,456 Indian distributors. In addition, IndianOil's Research and Development Center (R&D) at Faridabad supports, develops and provides the necessary technology solutions to the operating divisions of the corporation and its customers within the country and abroad. On 28 May 2012, Indian Oil hinted at reduction in prices of petrol.[4] Establishment - Indian Oil began operation in 1959 as Indian Oil Company Ltd. The Indian Oil Corporation was formed in 1964, with the merger of Indian Refineries Ltd. Important offices of Indian oil corp. :Registered Office IndianOil Bhavan, G-9, Ali Yavar Jung Marg, Bandra (East), Mumbai - 400 051 Corporate Office 3079/3, Sadiq Nagar, J.B. Tito Marg, New Delhi - 110 049
Refineries Division
Head Office SCOPE Complex, Core-2, 7, Institutional Area, Lodhi Road, New Delhi - 110 003 Core team of Indian oil corporation - oard Member's
? ? ? ?
Chairman (1)- R. S. Butola Functional Directors 7 Non-Functional Director 11 Total 18
Functional dairectors - Shri P. K. Goyal, Shri A.M.K. Sinha, Shri Sudhir Bhalla, Dr. R.K. Malhotra, Shri K.K. Jha, Shri B.N. Bankapur, Shri G.C. Daga. Principle executives – Vipin Kumar Advisor Security : Arun SinghalChief Vigilance Officer:V P Sharma Executive Director (Internal Audit) :V K Sood Executive Director (Corporate Finance) :S C Jain Executive Director (Finance - Business Development): J P Guharay Executive Director (Mathura Refinery) :R Narayanan Executive Director (Corporate Affairs) :S K Garg Executive Director (IndianOil Foundation) :A K Roy Executive Director (Corporate Planning & Economic Studies): Satish Kumar Executive Director (Human Resource) H V Singh Executive Director (I/C) (Projects-PDRP), Refineries V S Okhde Executive Director (Exploration & Production) Share holding pattern – Aggregate of public share holding – 21.08 % Promoters and group of promoters share holding – 78.02 %.
SWOT analysis of Indian oil corporation – Strengths1.India's one of the biggest players 2.Strong brand name 3.Excellent financial position 4.Entered in fortune 500 company listing. 5.One of the few Indian companies to be featured in Forbes 6.Employs over 34371 people. Weakness-
1.Long term debt 2.Legal issues 3.Accusations of being favored by the government Opportunities1.Growing demand for petroleum products 2.Buyout of competition Threats1.Government regulations 2.High Competition 3.Environmental laws 4.Economic
? ? ? ? ? ? ?
Future challengesTOTAL DEREGULATION COMPETITION FROM PRIVATE REFINING COMPANIES PRODUCT QUALITY – STRINGENT MARKET DYNAMICS MARGIN PRESSURE CUSTOMER FOCUS
Compititors- 1.Bharat Petroleum 2.Hindustan Petroleum 3.Reliance Industries Ltd 4.ONGC
FINANCIAL Performance of company- On march 2012Sales- 408924.03 crores Profit before tax – 10113.98 crores Net profit- 4265.27 crores Total capital employed- 59544.75 crores
Refineries An Indian Oil Petrol Pump in Mumbai. In Assam Digboi refinery in Assam is India's oldest refinery and was commissioned in 1901. Originally a part of Assam oil company it became part of IndianOil in 1981. Its original refining capacity had been 0.5 MMTPA since 1901. Modernisation project of this refinery was completed by 1996 and the refinery now has an enhanced capacity of 0.65 MMTPA. UOP licensed the technology for the Coking process in this refinery. Guwahati refinery - the first public sector refinery of the country, was built with Romanian collaboration and was inaugurated by Late Pt Jawaharlal Nehru the first Prime Minister of India, on 1 January 1962. Bongaigaon refinery became the eighth refinery of IndianOil after merger of Bongaigaon Refinery & Petrochemicals Limited w.e.f. 25 March 2009. It is located at Dhaligaon in Chirang district of Assam, 200 km west of Guwahati. In Bihar Brauni refinery in Bihar, was built in collaboration with Russia and Romania. It was commissioned in 1964 with a capacity of 1 MMTPA. Its capacity today is 6 MMT. In Gujarat, Gujarat refinary at Koyali (near Vadodara) in Gujarat in Western India, is IndianOil’s second
largest refinery. The refinery was commissioned in 1965. It also houses the first hydrocracking unit of the country. Its present capacity is 13.70 MMTPA. In West Bengal Haldia refinary is the only coastal refinery of the Corporation, situated 136 km downstream of Kolkata in the Purba Medinipur (East Midnapore) district. It was commissioned in 1975 with a capacity of 2.5 MMTPA, which has since been increased to 7.5 MMTPA. In UP Mathura refinary was commissioned in 1982 as the sixth refinery in the fold of IndianOil and with an original capacity of 6.0 MMTPA. Located strategically between the historic cities of Delhi and Agra, the capacity of Mathura refinery was increased to 8.8 MM. In hariyana Panipat refinery is the seventh and largest refinery of IndianOil. The original refinery with 6 MMTPA capacity was built and commissioned in 1998. Panipat Refinery has since expanded its refining capacity to 15 MMTPA. It is believed that the future IOCL refinery will be Paradeep Refinery. It is expected to be handed over in 2012. Subsidiary refineries – Chennai Petroleum Actual process of refining –
Hydrocarbon molecules in crude do NOT meet customer needs - SEPARATION PROCESSES (Primary Processes) - CONVERSION PROCESSES (Secondary Processes) - FINISHING PROCESSES (Secondary Processes) - Segregate the content –Rearrange molecules- Remove Contaminant
- Marketable products ? ? ? ? ? ? Strategies of Indian oil corporation – VALUE ADDITION CAPACITY SATURATION QUICK RESPONSE – QUALITY / QUANTITY COST REDUCTION EFFECTIVE MANNING INTEGRATION – FORWARD/BACKWARD/ LATERAL
1.Strateties for selection of cruce oil - Overall refinery economics depend on Crude cost + Processing Cost,Lower the S, lower the SG = Higher is the crude price Lower processing requirement, HACs are normally cheaper ? Higher neutralization costRefineries would like to handle crudes with TAN<0.5 & subsequent process streamscontaining TAN<
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Crude availability shifting from Light sweet ? Heavy sour ? Extra Heavy. HACs are opportunity crudes New Refinery: 1.design to process Extra Heavy Crudes 2.design to process HACs in admixture
2.Strategies for petro retail marketing of Indian oil corporation With Petroleum Marketing becoming increasingly competitive, a closer focus on identifying customer needs and developing attitudes and skills towards better service and improved products is required at all levels in the organization. By delivering value proposition that customer’s want-convenience, participation and anticipation is the key business challenge for companies, retained / engaged customer (both external and internal) is the most valuable asset of any organization. This programme sensitizes participants to internalize this understanding of internal and external customers towards building an enduring organization. The programme is designed to deliver without disturbing the field executives. 3. Market demands- clean product, more gasoline, more diesel, specific product, less residue. How to meet these demands- more sophisticated distillation, physical separation steps , chemical conversion steps. 4.To minimize pollution- Adequate Stack height for better dispersion of pollutants • Desulphurisation of fuel gas • Provision of a Sulphur recovery unit • Provision of continuous SO2 analyzers in all stacks • Providing Air monitoring stations • Efficiently running Effluent Treatment Plants •New Unit / Up-to-date technology for producing Ultra low Sulphur and benzene free fuels. 5. Adoption of new technologyDesulfurization of fuel products for reduction in Sulfur- DHDS unit, Kero-HDS unit, DHDT Conversion processes for bottom of the barrel upgradation - FCC, Hydrocracker, DCU etc. Quality Improvement to meet environment norm- Cetane improvement in Diesel; Benzene, Olefin, Aromatics & Sulfur. Challenges of industry - Environmental pressure- key factor in development & acquisition of new technology Sophistication in equipment design- demands for high performance products. Adoption of Euro norms for environment friendly transport fuels production, viz., Gasoline & Diesel. Demand for environment friendly, high quality LOBS- API class-II/ III. Cost Intensive Refining Technology.
Constraints to meet challenges- Crude oil sourcing – Indigenous production is only about 30% of the total requirement. Sharp fall in the availability of low Sulfur crude oil and even to the extent lighter crude oil. Hence refineries are forced to process wide variety of crude oil including high sulfur crude .Selection of suitable technology having enough flexibility
Joint ventures of company –
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IndianOil Ltd.
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Lanka IOC PLC – Group company for retail and storage operations in sri lanka. It is listed in the Colombo Stock Exchange. It was locked into a bitter subsidy payment dispute with Sri Lanka's Government which has since been resolved IOC Middle East FZE And Chennai coorporation Ltd. Green Gas Ltd. – a joint venture was gas authority of india limited for city-wide gas distribution networks. Indo Cat Pvt. Ltd., with intercat USA, for manufacturing 15,000 tonnes per annum of FCC (fluidised catalytic cracking) catalysts & additives in India. IndianOil – CREDA Biofuels Ltd., a joint venture with Chattisgarh government for production and marketing of Bio-fuels. Numerous exploration and production ventures with oil india lmt.
Products of Indian oil - IndianOil is not only the largest commercial enterprise in the country it is the flagship corporate of the Indian Nation. Besides having a dominant market share, IndianOil is widely recognized as India’s dominant energy brand and customers perceive IndianOil as a reliable symbol for high quality products and services. Products are as follows – Indane gas, natural gas, auto gas, gasoline, gas oil, jet fuel, servo lubricants and gases, marine fuel and lubricants, kerosin, industrial fuel, bitumin, petrochemicals, special products, crude oil.
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