Description
Indian Oil Corporation operates 10 of India’s 20 refineries
The Company accounts for about 35% of the total
domestic refining capacity
Technologically [advanced] refineries
– Flexibility to switch between various production
processes and grades of crude oils
– Each refinery is a cracking refinery with moderate
conversion capacity
All the refineries are Euro III / IV compliant (Bongaigaon
Refinery expected to be compliant by Jul’11)
Diverse product basket:
– Refined petroleum products such as high speed diesel,
jet fuel, SKO, light petroleum gas, gasoline, bitumen,
heavy fuel oil & naphtha
Key Highlights
– Petrochemical products such as LAB, Px/PTA, polymers
– Lubricants and greases
Indian Oil Corporation
Investor Presentation
J une 2011
2
Company Overview 1
Attractive Market 2
Dominant Market Leader: ‘The Energy of India’ 3
Strong Operating & Financial Performance 5
Conclusion 6
Well Defined Strategy 4
Indian Oil Corporation: ‘The Energy of India’
3
Company Overview - Corporate History
Indian Oil Company Ltd.
1959 1959
Indian Refineries Ltd.
1958 1958
Indian Oil Corporation Ltd. 1964 1964
Merger
Merger
Assam Oil Company
1981 1981
IOBL
2006 2006
Companies Merged Companies Merged
IBP Co. Ltd
2007 2007
BRPL
2009 2009
Integrated Refining and
Marketing company in
PSU domain
4
Company Overview – Brief Description
India’s largest
commercial enterprise
Largest refiner
Largest pipeline
network
Largest marketing
infrastructure
Highest?ranked (125) Indian Company in Fortune Global 500
Highest?ranked (125) Indian Company in Fortune Global 500
Board Structure Shareholding Pattern
Notes
1. Shareholding pattern as on 31
st
March’11
5
Company Overview – Brief Description
Business
Description
? Operates 10 refineries with a total production
capacity of 65.7 MMT
? Operates a 10,899 km long product and
crude pipeline network as well as maintains a
marketing network with ~37,000 touchpoints
Financial
Summary
INR Bn unless specified
FY 11
Revenue
EBITDA
EBITDA Margin (%)
ROA/ ROE (%)
Debt/ Equity (x)
3.287
163
4.9%
15.6%/ 13.5%
Notes
1. As on 31
st
Mrch’11, including refineries operated by IOCL’s subsidiaries
FY 10
2,711
189
6.9%
33.9%/20.2%
? Investing in wider petrochemical product
slate
? Gas distribution – CGD, LNG at Doorstep
etc
? E&P through equity interest in blocks across
the world
? Power generation through renewable
sources of energy
Core Business: R&M
(1)
Diversification
Dividend Payout Ratio (%)
0.95x 0.88x
31.0% 31.0%
Higher EBITDA in FY’10 due to higher inventory & exchange gains.
6
Company Overview – Proven Track Record
0.6
4.5
17.5
94.1
328.7
0
50
100
150
200
250
300
350
1970 1980 1990 2000 2011
0
10
20
30
40
50
60
Turnover Networth
Net Worth & Revenues
(INR Thousand Crore)
7.8
15.8
28.0
47.5
65.7
0
15
30
45
60
75
1970 1980 1990 2000 2011
Refining Capacity: 65.7 MMT
(MMT)
0.4
2.0
4.0
5.4
9.0
10.9
0
2
4
6
8
10
12
1964 1975 1985 1995 2005 2011
Total Length of Pipeline Network: 10,899 Kms
Kms (‘000)
1964
2010 1997 2000 2003 2004 1972 1994
IOCL formed through merger
of Indian Refineries Ltd &
Indian Oil Company Ltd
First petroleum product
pipeline commissioned:
Guwahati-Siliguri pipeline
Company enters into
LPG business
through a J V with
Petronet LNG
Entry into E&P business,
is awarded two
exploration blocks under
NELP-I
Commissioned India’s
largest Naptha Cracker
Complex
Awarded “Maharatna"
status by the Govt. of India
Track Record: Rapid Growth Consistently
CAGR
16.5%
CAGR
5.3%
CAGR
7.3%
[Becomes first Indian oil
& gas] company to
establish Research &
Development Center
Commissions
India’s first
Hydrocracker unit
Becomes the first Indian
company to cross the INR
1,000 Bn [turnover] mark
First Indian petroleum
company to start
overseas retail business
Enters petrochemical
business by commissioning
the world’s largest single
train kerosene to LAB unit
Company enters into
the gas business
2005
IOCL’s Mathura refinery
becomes India’s first
refinery to produce Euro-III
Compliant diesel & petrol
IOCL is top national
oil company in Asia
Pacific
7
Attractive Market: Large Potential in India
Source BP Statistical Review of World Energy J une 2011,
8
Attractive Market: Large Potential in India
Source BP Statistical Review of World Energy J une 2009, & 2011
.. Leading to Large & Growing Petroleum Product Consumption in India
(MMT)
Source Petroleum Planning and Analysis Cell, Ministry of Petroleum and Natural Gas, Govt. of India
108
112
113
121
129
133
138
142
100
110
120
130
140
FY 04 FY 05 FY 06 FY 07 FY 08 FY 09 FY' 10 FY' 11
(1)
(1)
Note:
1. Figure for FY’11 is provisional
India One of the Fastest Growth in Oil Consumption
2009?14E CAGR (%)
4.8%
4.1%
2.6%
0.5%
0.3%
0%
1%
2%
3%
4%
5%
China India Asia Pacific N. America OECD
13.4
7.2
6.1
2.9
2.7
0.5
-0.2
-3
0
3
6
9
12
15
China India Af r ica Middle
East
US Eur ope Japan
.. Refinery Through Put …..% Change in 2010 over 2009
9
Dominant Market Leader: ‘The Energy of India’
The Leader: #1 Refiner in India
1
‘India’s Energy Lifeline’ – Dominant Pipeline Network
2
Unparalleled Market Reach
3
10
Simply – The # 1 R&M Player in India
Marketing
Pipeline
Refining
#1
#1: Largest refining
capacity in India:
about 35% market
share
#1: Highest petroleum
products market share:
46%
#1:87% downstream
market share in crude
oil pipelines
#1: Largest provider of
pipelines for petroleum
products: about 49%
downstream market
share
#1: 54% of total
consumer touch points
#1: 89% market share of
bulk consumer pumps
#1: 52% market share in
LPG dealership
Notes
1. As on 31
st
March 2011
11
Refining Capacity: Strategically Located Close to Profitable Markets 1
Digboi: 0.7 MMT
Guwahati: 1 MMT
Haldia: 7.5 MMT
Barauni: 6.0 MMT
Panipat: 15 MMT
Mathura: 8 MMT
Chennai: 10.5 MMT
Narimanan: 1.0 MMT
Koyali: 13.7 MMT
Bongaigaon: 2.4 MMT
Paradip: 15 MMT
Refineries owned and operated by IOCL’s subsidiary - CPCL
Operational refineries of IOCL
Under-construction refinery of IOCL
• Access to high demand
market of North India
• Highest refining capacity
in this region
• Access to high demand
market of North India
• Highest refining capacity
in this region
• Refineries benefit from
excise duty concessions
• Ability to supply to North
India markets at low cost by
leveraging pipeline network
• Refineries benefit from
excise duty concessions
• Ability to supply to North
India markets at low cost by
leveraging pipeline network
Installed capacity (IOC) : 54.2
Refinery (under construction) : 15.0
Subsidiaries : 11.50
12
The Leader: #1 Refiner in India
? Indian Oil Corporation operates 10 of India’s 20 refineries
? The Company accounts for about 35% of the total
domestic refining capacity
? Technologically [advanced] refineries
– Flexibility to switch between various production
processes and grades of crude oils
– Each refinery is a cracking refinery with moderate
conversion capacity
? All the refineries are Euro III / IV compliant (Bongaigaon
Refinery expected to be compliant by J ul’11)
? Diverse product basket:
– Refined petroleum products such as high speed diesel,
jet fuel, SKO, light petroleum gas, gasoline, bitumen,
heavy fuel oil & naphtha
– Petrochemical products such as LAB, Px/PTA, polymers
– Lubricants and greases
Key Highlights
65.7
62.0
24.5
14.8
11.9
10.5
0.0
15.0
30.0
45.0
60.0
75.0
IOC RIL BPCL HPCL ONGC Essar
Dominant Market Leader
(1)
Refining Capacity (MMT)
1
Notes
1. As on 31
st
March 2011
More than 100% capacity utilization for last 5 years
Throughput (MMT)
44.0
47.4
51.4
50.7
53.0
40.0
45.0
50.0
55.0
FY07 FY08 FY09 FY10 FY11
13
? IndianOil owns and operates India’s Largest
network of crude & product pipelines
? Getting closer to the clients with increasing length
Panipat
Guwahati
Koyali
Haldia
Mathura
Barauni
Kanpur
Bhatinda
Kandla
Vadinar
Chaksu
Ahmedabad
J alandhar
J odhpur
Budge Budge
Kot
Delhi
Bongaigaon
Siliguri
Meerut
Sidhpur
Digboi
Tinsukia
Chennai
Navagam
Tundla
Lucknow
Sanganer
Maurigram
Rajbandh
Najibabad
Roorkee
Ambala
Sangrur
Rewari
Ajmer
Chittaurgarh
Dahej
Sankari
Asanur
Trichy
Madurai
Paradip
Mundra
Ratlam
Dadri
Bengaluru
Hazira
Viramgam
Bharatpur
Ranchi
Raipur
Pipelines…India’s Energy Life Line
Product
Crude Oil
Pipelines (Existing
)
Product
Pipelines (Ongoing)
R-LNG Pipeline
LPG Pipeline
LPG Pipeline
As on 1.4.2011
Durgapur
14
Pipelines……
59.6
64.5
67.8
Throughput (Million tonne)
Capacity Utilization (%)
Length (KM) Capacity
(MMTPA)
Crude Oil 4,366 40.40
Product 6,401 34.86
TOTAL 10,767 75.26
Gas 132 10*
* MMSCMD
Market Share (Downstream)
Crude Oil
87%
Product
49%
19.3
21.3 21.4
23
25.4
32.4
35.8
38.2
41.5
42.4
0
10
20
30
40
50
60
70
FY07 FY08 FY09 FY10 FY11
Crude oil
Product
51.7
57.1
93.3
95.8
88.0
90.6
91.6
70
75
80
85
90
95
100
FY07 FY08 FY09 FY10 FY11
15
Patna
Delhi
Kolkata
Mumbai
Chennai
J aipur
Bengaluru
Kochi
Bhubaneswar
Bhopal
Ahmedabad
Guwahati
Chandigarh
Lucknow
Secunderabad
NOIDA
Marketing…
Aviation Fuel Stations (96)
LPG Distributors (5,456)
Marketing Touch Points ( about 37,000)
LPG Bottling Plants
(89)
Bulk Consumer Pumps
(7,780)
Terminal/Depots
(140)
SKO/LDO Dealers (3,960)
Retail Outlets (19,463 including 3,517 KSKs)
As on 1.4.2011
IOC has share of about 54% in Marketing Infrastructure
IOC has share of about 54% in Marketing Infrastructure
LPG Customers (61.8 million)
No.1 oil
marketing
company in
INDIA
No.1 oil
marketing
company in
INDIA
Regional Offices : 4
State Offices : 16
Divisional Offices
Retail : 66
Consumer : 34
Indane Area Offices : 45
16
Product Sales (MMT)
Marketing - Sales
Rural Penetration : Contributing towards inclusive growth
Rural Penetration : Contributing towards inclusive growth
N
o
.
o
f
K
S
K
s
c
o
m
m
i
s
s
i
o
n
e
d
d
u
r
i
n
g
t
h
e
y
e
a
r
9
8
18
20
46
Other s
RIL
HPCL
BPCL
IOCL
Petroleum Products Market – % Share
(1)
53.4
57.5
60.9
63
65.3
3.1
3.3
3.6
4.5
5
40
50
60
70
FY07 FY08 FY09 FY10 FY11
Export
Domestic
67.5
64.5
60.8
56.5
70.3
KSK Sales (MS & HSD) - % of total IOC’s Sales (MS & HSD )
KSK Sales (MS & HSD) - % of total IOC’s Sales (MS & HSD )
(1)
Market share of other companies is provisional
17
IndianOil in Every Part in Every Heart
Only oil company
operating in every
part of India
Along, Passighat, Ziro
Leh, Kargil, Lahaul Spiti
North East
Islands Andaman, Nicobar, Lakshadweep
Himalayas
Retail Outlet at Boat house
Kisan Seva Kendra outlets for
extending rural reach
Modern XTRAcare ROs
18
Well Defined Strategy
Integration led Value
Enhancement
Backward & forward
integration for
maximum value
capturing
Diversification
Geographic and
product expansion to
develop sustainable
profits
Increasing Quality &
Operational Flexibility
Drive flexibility and
efficiency of production
capabilities
Reinforcing
Competitive
Advantage
Building capacity of
core refining and
pipeline business
Investing in the
Future
Facilitating R&D and
innovation to lead
future growth
1
2
3 4
5
19
R & D – Providing Cutting Edge
Biotechnology,
Nanotechnology,
Alternative Energy
Hydrogen &
Gasification
Lubricant
Technology
Fuel Additives
Polymers &
Petrochemicals
Established in 1972 , Currently 438 scientists & support staff
Established in 1972 , Currently 438 scientists & support staff
Refining
Technology
20
Investing in the Future – R&D/ Innovation
5
Focus of R&D
? The major thrust for R&D in next decade would be
– Reducing the carbon footprint of IOCL’s processes, products and
technologies; endeavour to reduce Company’s emissions by 20% to 25%
from current levels
– Licensing the Company’s technologies on a larger scale
– Application of nano-technology
– Development of superior, high performance catalyst and lubricant additives
– Improvement of overall efficiencies
Advances in Products
? INDMAX:
– Facilitates maximization of LPG and light distillates from refinery residue
– Aims to install a 4 MMTPA unit as a part of the refinery/ petrochemicals
complex at Paradip by 2012
? Marine Oils: One of only six oil companies globally to have indigenously
developed “original equipment manufacturer-approved marine lubricants
technology”
? Needle Coke:
– One of three companies in the world that possess the technology to make
high value needle coke for application in graphite electrodes for steel-
making.
– Technology has been commercialized in Bongaigaon and Guwahati
Refineries
95
261
567
942
1,510
0
1,000
2,000
FYE 07 FYE 08 FYE 09 FYE 10 FYE 11
Investment in R&D
(INR MM)
Active Patents by Geography
25%
23%
52%
India
USA
Others
Active Patents by Division
19%
39%
42%
Lubes
Refinery
Others
Budgeted Estimate For FY11
21
Forward Integration - Petrochemicals
India’s one of the major petrochemical player
Assets : Value addition to downstream business
22
Diversification to Gas Business
City Gas
Distribution
(CGD)
Proposed
LNG terminal
of 5 MMTPA
at Ennore
Stakeholder
in M/s
Petronet LNG
Limited (PLL)
LNG at
Doorstep
Gas
pipelines
Gas Sales and Turnover
(1)
1.63
1.91
1.85
1.90
2.30
1746
2078
2,884
2,990
4,001
0
0.5
1
1.5
2
2.5
3
3.5
4
2006?07 2008?09 2010?11
0
500
1000
1500
2000
2500
3000
3500
4000
4500 Sales Volume(MMT)
Turnover (INR Crore)
(1)
Includes sales to IOC’s refineries
23
Upstream Integration - Exploration & Production
Overseas Blocks :10
Libya (3), Iran (1), Yemen (2), Nigeria (1),
Gabon (1), Timor-Leste (1) & Venezuela (1)
Domestic Blocks : 13
NELP (11), CBM : (2)
Discovered:
Domestic Blocks – 3
Overseas Blocks: 3 (Farsi (Iran), OML 142 (Nigeria),
Carabobo Project 1 (Venezuela))
Awarded two S type blocks in Cambay basin
with 100% participating interest and
operatorship.
For domestic blocks participated mainly with OIL
and ONGC
For overseas blocks participated mainly with OVL
and OIL
Carabobo Project 1, Venezuela: PdVSA (60%),
Repsol (11%), Petronas (11%), OVL (11%); OIL
(3.5%), IOC (3.5%)
Total investment so far in E&P - INR 1,536* crore
Discovered:
Domestic Blocks – 3
Overseas Blocks: 3 (Farsi (Iran), OML 142 (Nigeria),
Carabobo Project 1 (Venezuela))
Awarded two S type blocks in Cambay basin
with 100% participating interest and
operatorship.
For domestic blocks participated mainly with OIL
and ONGC
For overseas blocks participated mainly with OVL
and OIL
Carabobo Project 1, Venezuela: PdVSA (60%),
Repsol (11%), Petronas (11%), OVL (11%); OIL
(3.5%), IOC (3.5%)
Total investment so far in E&P - INR 1,536* crore
(*As on 31.3.2011)
24
Diversification - Clean Energy
5 MW Solar Power Plant
• IOCL won bid to set up 5
MW Solar PV Power Plant
at Barmer, Rajasthan under
J awaharlal Nehru National
Solar Mission
Empowering Rural India
• Over 30,000 solar lantern
sold from Retail Outlets
(ROs), LPG Distributors for
lighting rural home / shops
• For poorer villagers, 3
Solar Charging Stations
installed at pilot basis to
centrally charge lanterns
for renting to customers
5 MW Solar Power Plant
• IOCL won bid to set up 5
MW Solar PV Power Plant
at Barmer, Rajasthan under
J awaharlal Nehru National
Solar Mission
Empowering Rural India
• Over 30,000 solar lantern
sold from Retail Outlets
(ROs), LPG Distributors for
lighting rural home / shops
• For poorer villagers, 3
Solar Charging Stations
installed at pilot basis to
centrally charge lanterns
for renting to customers
Wind
Power Project
• Commissioned at
Kachchh, Gujarat
in J anuary 2009
• Capacity : 21
MW (14 WEGs
of 1.5 MW
each)
• Considering further
investment in wind
power projects
Wind
Power Project
• Commissioned at
Kachchh, Gujarat
in J anuary 2009
• Capacity : 21
MW (14 WEGs
of 1.5 MW
each)
• Considering further
investment in wind
power projects
Nuclear Power
• J V Company
incorporated to
put up Nuclear
Power Plants in
India
• Equity
participation
(26%) in
Rawatbhata
(RAPP 7/8,
700*2 MWs)
Rajasthan
Nuclear Power
• J V Company
incorporated to
put up Nuclear
Power Plants in
India
• Equity
participation
(26%) in
Rawatbhata
(RAPP 7/8,
700*2 MWs)
Rajasthan
Energy Crop
Plantation
•Captive plantation
for J atropha in India
•Chhattisgarh,
J habua, MP :
6070Ha
•UP: Plantation under
MNREGS funded
Public-Private-
Panchayat
Partnership (P4)
model: 10 ha
completed
•Proposed to extend
plantation upto
50,000 ha.
Energy Crop
Plantation
•Captive plantation
for J atropha in India
•Chhattisgarh,
J habua, MP :
6070Ha
•UP: Plantation under
MNREGS funded
Public-Private-
Panchayat
Partnership (P4)
model: 10 ha
completed
•Proposed to extend
plantation upto
50,000 ha.
BIOFUELS
BIOFUELS
NUCLEAR
NUCLEAR
WIND
WIND
SOLAR
SOLAR
25
Subsidiaries - Beyond Boundaries
Major
OVERSEAS
SUBSIDIARIES
Lanka IOC
Limited,
Sri Lanka
(2002)
IOC Middle
East FZE,
Dubai (2006)
IndianOil
Mauritius
Limited,
Mauritius
(2001)
• 75.11 % stake holding
• Storage, Terminaling and Retail trade
• Turnover (2010-11) INR 2090 crore
• Ranked No. 1 Company in Sri Lanka
by Lanka Monthly Digest for the
third consecutive year
•100% stake holding
•Aviation, Retail, Storage,
Quality Assurance
•Turnover (2010-11) INR
841 crore
•3
rd
largest petroleum
company in Mauritius
•100% stake holding
•Sale of Lubricants in Middle East
countries
•Turnover (2010-11) INR 77 crore
26
Subsidiaries & JVs
IndianOil
CREDA
Biofuels
Limited
(2009)
• 74 % Stake
holding
• Amount of
Investment
by IOC: INR
0.74 crore
Domestic
Subsidiaries
Chennai Petroleum
Corporation
Limited
(2001*)
• 51.89% stake
holding
• PAT (2010-11):
INR 512 crore
• Amount of
Investment by
IOC: INR
509.33 crore
• Refining
Capacity: 11.5
MMTPA
* Became subsidiary of IndianOil
IOT Infrastructure & Energy Services Ltd (50%, 1996)
Petronet LNG Ltd. (12.5%, 1998)
IndianOilPetronas Pvt. Ltd. (50%, 1998)
Lubrizol India Pvt. Ltd.(50%, 2000)
Green Gas Ltd. (25%, 2005)
Indo Cat (P) Ltd. (50%, 2006)
IndianOil Skytanking Ltd. (33.33%, 2006)
Avi?Oil India Pvt. Ltd (25%, 1993)
Major
Joint
Ventures
Major Major
Joint Joint
Ventures Ventures
27
Financial Performance
28
Financial Performance
NET PROFIT
TURNOVER
NET WORTH
EBITDA
(1)
(INR / bn)
(INR / bn)
(INR / bn)
(INR / bn)
4.2
9.0
3.7
4.5
5.9
0.0
2.0
4.0
6.0
8.0
10.0
FY07 FY08 FY09 FY10 FY11
($/ bl)
PIPELINES EBITDA
(2)
25
26
29
33
35
20
25
30
35
40
FY07 FY08 FY09 FY10 FY11
(INR./ bn)
349
411
440
506
553
200
300
400
500
600
FY07 FY08 FY09 FY10 FY11
GRMs
(3)
2,208
2,475
2,854
2,711
3,287
1,500
2,000
2,500
3,000
3,500
FY07 FY08 FY09 FY10 FY11
146
143
113
189
163
0
25
50
75
100
125
150
175
200
FY07 FY08 FY09 FY10 FY11
75
70
30
102
74
0
25
50
75
100
125
FY07 FY08 FY09 FY10 FY11
(1)Including interest income
(2)Excluding interest income
(3)GRM’s for FY’07 & FY’08 does not include Bongaigaon GRMs
29
Financial Performance
315
361
424
402
387
100
150
200
250
300
350
400
450
FY07 FY08 FY09 FY10 FY11
Investments
(1)
(INR Bn)
Long Term Debt to Equity
(x)
592
660
805
934
1,058
400
500
600
700
800
900
1,000
1,100
FY07 FY08 FY09 FY10 FY11
Fixed Assets
(INR Bn)
0.3
0.3
0.4 0.4
0.3
0.0
0.1
0.2
0.3
0.4
FY07 FY08 FY09 FY10 FY11
0.9
1.0
1.1
1.1
1.3
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
FY07 FY08 FY09 FY10 FY11
Debt to Investments Ratio
(1)
0.8
0.9
1.0
0.9
0.95
0.0
0.2
0.4
0.6
0.8
1.0
1.2
FY07 FY08 FY09 FY10 FY11
Total Debt to Equity
284
342
259
265
397
0
100
200
300
400
FY07 FY08 FY09 FY10 FY11
Contribution to Central Exchequer
(INR Bn)
Note
1. Investments include Market Value of shares held in ONGC Ltd., GAIL (India) Ltd., OIL India Ltd., shares held in Trust formed for merger of IBP Co. Ltd. and Bongaigaon Refinery &
Petrochemicals Ltd and Special Oil Bonds
( x )
30
2.2
9.8
3.1
3.8
11.9
7.5
16.7
0.6
13.9
19.0
40.4
15.2
22.6
14.3
18.2
FY07 FY08 FY09 FY10 FY' 11
Oi l Bonds / Budgetary Support #
Di scount from Refi ners
Di scount from Upstream Compani es
Net Under Real i zati on
INR Thousand Crore
TOTAL
GOVT. OF
INDIA
SUPPORT
28.6
43.1
58.6
Compensation of Under Realization
25.8
# Oil Bonds till FY09; Budgetary Support during FY’10 & FY’11
43.1
31
Investments - Fuelling the growth
INR crore INR crore
52,000
17,930
12,886
Five Year Plan
9
th
Plan
9
th
Plan
10
th
Plan
10
th
Plan
11
th
Plan
(Anticipated)
11
th
Plan
(Anticipated)
INR crore INR crore
2007-08 2008-09 2009-10 2010-11 2011-12*
Plan
Expenditure 5,142 10,353 12,256 9,831 14,500
Non Plan
Expenditure 1,874 1,678 2,007 2,588 4,440
Total
7,016 12,031 14,263 12,419 18,940
Capital Expenditure
* Budgeted Estimate * Budgeted Estimate
32
Major ongoing projects
Projects-Refinery
Anticipated Outlay
(INR crore)
Objective
Anticipated
Completion
Paradip Refinery 29,777
To meet domestic demand & export of surplus
product
Nov’12
MS Quality Upgradation Project at
Bongaigaon Refinery
294 To produce BS-III quality MS July’11
DHDT at Bongaigaon Refinery 1,646 To produce BS-III quality HSD June’11
Fluidized Catalytic Cracking Unit at
Mathura Refinery
1,000
To increase processing capacity of unit from 1.3 to 1.5
MMTPA & maximize production of value added
propylene
Jan’13
Butadiene Extraction Unit at Panipat 342
Designed to produce 138 MTPA of Butadiene to be
used as feedstock for SBR project at Panipat
Feb’13
Total (a):
33,059
Projects-Pipelines Anticipated Outlay (INR crore)
Anticipated Completion
Branch pipeline from KSPL, Viramgam to Kandla 349 Dec’11
Paradip-Sambalpur-Raipur-Ranchi pipeline 1,793 Sep’12
Debottlenecking of Salaya-Mathura crude pipeline 1,584 Dec’12
Integrated crude handling facilities at Paradip 1,493 Jun’12
Tanks and Blending facilities at Vadinar 267 Oct’11
Paradip-Haldia-Durgapur LPG pipeline 913 Dec’13
Total (b) : 6,399
Other Projects (c)
5,600
TOTAL (a+b+c) 45,058
33
Human Capital: Assets of IndianOil
33
33
34
IndianOilPeople…… towards excellence
34,105
34,105
Human Capital: Assets of IndianOil
As on 31.3.2011
35
Human Capital - Assets of IndianOil…
IndianOil People…… towards excellence
36
IndianOil: Beyond Business
37
Sustainable Development
CDM projects
Green fuels
Tree plantation
Emissions control
Effluent treatment
Water management
IndianOil
Initiatives
38
Care for Environment
Environment Management Systems at refineries, pipelines and major marketing
installations certified under ISO-14001 standards
Best procedures & practices of industry in place at all operating units to take
care of Safety, Occupational Health & Environmental Issues
Expected to generate 60,000 CERs per annum through various CDM projects
planned in refineries
Decline of ~22% is witnessed in effluent discharge (per TMT of crude oil) from
refineries in 2010-11 compared to 2009-10.
39
Corporate Social Responsibility
Indian Oil Foundation
Scholarships (30%)
Community Development:
(30%)
(Education, Health
& Drinking water)
National causes &
Natural calamities (35%)
LPG connections to BPL families
under RGGLVY (20%)
2% of retained profit of
previous year for CSR
Contributions/Donations (5%)
40
Conclusion
Delivering on Key Success Factors
1
The #1 R&M Player in India
2
Integrated Operations
3
Strong Performance
4
41
Conclusion – Delivering on Key Success Factors
Key Success Factors Indian Oil Corporation Positioning
Feedstock
? Long term contracts to build access to feedstock
? INR 15 bn invested in E&P blocks; Reserves identified in six blocks
Integration
? Increasing equity investment in E&P to create integrated projects
? Indian market leadership in refining and marketing
? Capacity enhancement to produce diversify petrochem product
slate
Manufacturing
Excellence and Scale
? In-house state of the art R&D facilities
? Largest refining capacity in the country
? Recently commissioned India’s largest Naphtha Cracker Unit
Access to Key
Markets
? Ideally positioned for growth in India
? Access to key markets in Asia Pacific
Logistics/
Distribution
? Largest crude and product pipeline network in the country
? Maximum number of customer touchpoints in the Indian petroleum
industry
?
?
?
?
?
1
42
Conclusion – The # 1 R&M Player in India
6 5. 7
6 2 . 0
2 4 . 5
14 . 8
10 . 5
12 . 0
0 . 0
15. 0
3 0 . 0
4 5. 0
6 0 . 0
75. 0
I OC RI L B PCL HPCL Essar ONGC
Refining Capacity
(MMT)
19,463
10,212
9,290
0
4,000
8,000
12,000
16,000
20,000
IOCL HP CL B P CL
Retail Outlets
(No.)
40
6
0
10
20
30
40
50
IOCL Ot her do wns t r eam P SU
Crude Pipelines
(MMT)
1.1x
6.7x
1.9x
65
28
26
0
15
30
45
60
75
IOCL B P CL HP CL
Domestic Sale of Petroleum Products
(MMT)
5,456
2,633
2,452
0
2,000
4,000
6,000
IOCL HP CL B P CL
LPG Distributors
(No.)
35
26
10
0
10
20
30
40
IOCL HP CL B P CL
Product Pipelines
(MMT)
2.2x
1.4x
2.1X
2
43
Conclusion – Integrated Operations
3
Petrochemicals
Refining
Pipelines
Marketing
Nuclear
Nuclear
Wind
Wind
Solar
Solar
Gas
44
Conclusion – Strong Performance
4
Notes
1. [Investments include Market Value of shares held in ONGC Ltd., GAIL (India) Ltd., OIL India Ltd., shares held in Trust formed for merger of IBP Co. Ltd. and
Bongaigaon Refinery & Petrochemicals Ltd and Special Oil Bonds
Debt to Investments Ratio
(1)
Long Term Debt to Equity
Performance
5yr CAGR Growth Rates
? Asset Base : 14.6%
? Turnover : 12.4%
? Net worth: 13.6%
? Refining capacity: 5.6%
? Pipelines capacity: 4.6%
Capital Structure: Virtually Debt Free
Growth Rates
Margins & Returns
? FY11 EBITDA margin of 4.9%
? FY11 ROE: 13.5%
? FY11 ROA: 15.6%
Margins & Returns
0.3
0.3
0.4 0.4
0.3
0.0
0.1
0.2
0.3
0.4
FY07 FY08 FY09 FY10 FY11
0.9
1.0
1.1
1.1
1.4
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
FY07 FY08 FY09 FY10 FY11
( x )
( x )
45
45
doc_641315782.pdf
Indian Oil Corporation operates 10 of India’s 20 refineries
The Company accounts for about 35% of the total
domestic refining capacity
Technologically [advanced] refineries
– Flexibility to switch between various production
processes and grades of crude oils
– Each refinery is a cracking refinery with moderate
conversion capacity
All the refineries are Euro III / IV compliant (Bongaigaon
Refinery expected to be compliant by Jul’11)
Diverse product basket:
– Refined petroleum products such as high speed diesel,
jet fuel, SKO, light petroleum gas, gasoline, bitumen,
heavy fuel oil & naphtha
Key Highlights
– Petrochemical products such as LAB, Px/PTA, polymers
– Lubricants and greases
Indian Oil Corporation
Investor Presentation
J une 2011
2
Company Overview 1
Attractive Market 2
Dominant Market Leader: ‘The Energy of India’ 3
Strong Operating & Financial Performance 5
Conclusion 6
Well Defined Strategy 4
Indian Oil Corporation: ‘The Energy of India’
3
Company Overview - Corporate History
Indian Oil Company Ltd.
1959 1959
Indian Refineries Ltd.
1958 1958
Indian Oil Corporation Ltd. 1964 1964
Merger
Merger
Assam Oil Company
1981 1981
IOBL
2006 2006
Companies Merged Companies Merged
IBP Co. Ltd
2007 2007
BRPL
2009 2009
Integrated Refining and
Marketing company in
PSU domain
4
Company Overview – Brief Description
India’s largest
commercial enterprise
Largest refiner
Largest pipeline
network
Largest marketing
infrastructure
Highest?ranked (125) Indian Company in Fortune Global 500
Highest?ranked (125) Indian Company in Fortune Global 500
Board Structure Shareholding Pattern
Notes
1. Shareholding pattern as on 31
st
March’11
5
Company Overview – Brief Description
Business
Description
? Operates 10 refineries with a total production
capacity of 65.7 MMT
? Operates a 10,899 km long product and
crude pipeline network as well as maintains a
marketing network with ~37,000 touchpoints
Financial
Summary
INR Bn unless specified
FY 11
Revenue
EBITDA
EBITDA Margin (%)
ROA/ ROE (%)
Debt/ Equity (x)
3.287
163
4.9%
15.6%/ 13.5%
Notes
1. As on 31
st
Mrch’11, including refineries operated by IOCL’s subsidiaries
FY 10
2,711
189
6.9%
33.9%/20.2%
? Investing in wider petrochemical product
slate
? Gas distribution – CGD, LNG at Doorstep
etc
? E&P through equity interest in blocks across
the world
? Power generation through renewable
sources of energy
Core Business: R&M
(1)
Diversification
Dividend Payout Ratio (%)
0.95x 0.88x
31.0% 31.0%
Higher EBITDA in FY’10 due to higher inventory & exchange gains.
6
Company Overview – Proven Track Record
0.6
4.5
17.5
94.1
328.7
0
50
100
150
200
250
300
350
1970 1980 1990 2000 2011
0
10
20
30
40
50
60
Turnover Networth
Net Worth & Revenues
(INR Thousand Crore)
7.8
15.8
28.0
47.5
65.7
0
15
30
45
60
75
1970 1980 1990 2000 2011
Refining Capacity: 65.7 MMT
(MMT)
0.4
2.0
4.0
5.4
9.0
10.9
0
2
4
6
8
10
12
1964 1975 1985 1995 2005 2011
Total Length of Pipeline Network: 10,899 Kms
Kms (‘000)
1964
2010 1997 2000 2003 2004 1972 1994
IOCL formed through merger
of Indian Refineries Ltd &
Indian Oil Company Ltd
First petroleum product
pipeline commissioned:
Guwahati-Siliguri pipeline
Company enters into
LPG business
through a J V with
Petronet LNG
Entry into E&P business,
is awarded two
exploration blocks under
NELP-I
Commissioned India’s
largest Naptha Cracker
Complex
Awarded “Maharatna"
status by the Govt. of India
Track Record: Rapid Growth Consistently
CAGR
16.5%
CAGR
5.3%
CAGR
7.3%
[Becomes first Indian oil
& gas] company to
establish Research &
Development Center
Commissions
India’s first
Hydrocracker unit
Becomes the first Indian
company to cross the INR
1,000 Bn [turnover] mark
First Indian petroleum
company to start
overseas retail business
Enters petrochemical
business by commissioning
the world’s largest single
train kerosene to LAB unit
Company enters into
the gas business
2005
IOCL’s Mathura refinery
becomes India’s first
refinery to produce Euro-III
Compliant diesel & petrol
IOCL is top national
oil company in Asia
Pacific
7
Attractive Market: Large Potential in India
Source BP Statistical Review of World Energy J une 2011,
8
Attractive Market: Large Potential in India
Source BP Statistical Review of World Energy J une 2009, & 2011
.. Leading to Large & Growing Petroleum Product Consumption in India
(MMT)
Source Petroleum Planning and Analysis Cell, Ministry of Petroleum and Natural Gas, Govt. of India
108
112
113
121
129
133
138
142
100
110
120
130
140
FY 04 FY 05 FY 06 FY 07 FY 08 FY 09 FY' 10 FY' 11
(1)
(1)
Note:
1. Figure for FY’11 is provisional
India One of the Fastest Growth in Oil Consumption
2009?14E CAGR (%)
4.8%
4.1%
2.6%
0.5%
0.3%
0%
1%
2%
3%
4%
5%
China India Asia Pacific N. America OECD
13.4
7.2
6.1
2.9
2.7
0.5
-0.2
-3
0
3
6
9
12
15
China India Af r ica Middle
East
US Eur ope Japan
.. Refinery Through Put …..% Change in 2010 over 2009
9
Dominant Market Leader: ‘The Energy of India’
The Leader: #1 Refiner in India
1
‘India’s Energy Lifeline’ – Dominant Pipeline Network
2
Unparalleled Market Reach
3
10
Simply – The # 1 R&M Player in India
Marketing
Pipeline
Refining
#1
#1: Largest refining
capacity in India:
about 35% market
share
#1: Highest petroleum
products market share:
46%
#1:87% downstream
market share in crude
oil pipelines
#1: Largest provider of
pipelines for petroleum
products: about 49%
downstream market
share
#1: 54% of total
consumer touch points
#1: 89% market share of
bulk consumer pumps
#1: 52% market share in
LPG dealership
Notes
1. As on 31
st
March 2011
11
Refining Capacity: Strategically Located Close to Profitable Markets 1
Digboi: 0.7 MMT
Guwahati: 1 MMT
Haldia: 7.5 MMT
Barauni: 6.0 MMT
Panipat: 15 MMT
Mathura: 8 MMT
Chennai: 10.5 MMT
Narimanan: 1.0 MMT
Koyali: 13.7 MMT
Bongaigaon: 2.4 MMT
Paradip: 15 MMT
Refineries owned and operated by IOCL’s subsidiary - CPCL
Operational refineries of IOCL
Under-construction refinery of IOCL
• Access to high demand
market of North India
• Highest refining capacity
in this region
• Access to high demand
market of North India
• Highest refining capacity
in this region
• Refineries benefit from
excise duty concessions
• Ability to supply to North
India markets at low cost by
leveraging pipeline network
• Refineries benefit from
excise duty concessions
• Ability to supply to North
India markets at low cost by
leveraging pipeline network
Installed capacity (IOC) : 54.2
Refinery (under construction) : 15.0
Subsidiaries : 11.50
12
The Leader: #1 Refiner in India
? Indian Oil Corporation operates 10 of India’s 20 refineries
? The Company accounts for about 35% of the total
domestic refining capacity
? Technologically [advanced] refineries
– Flexibility to switch between various production
processes and grades of crude oils
– Each refinery is a cracking refinery with moderate
conversion capacity
? All the refineries are Euro III / IV compliant (Bongaigaon
Refinery expected to be compliant by J ul’11)
? Diverse product basket:
– Refined petroleum products such as high speed diesel,
jet fuel, SKO, light petroleum gas, gasoline, bitumen,
heavy fuel oil & naphtha
– Petrochemical products such as LAB, Px/PTA, polymers
– Lubricants and greases
Key Highlights
65.7
62.0
24.5
14.8
11.9
10.5
0.0
15.0
30.0
45.0
60.0
75.0
IOC RIL BPCL HPCL ONGC Essar
Dominant Market Leader
(1)
Refining Capacity (MMT)
1
Notes
1. As on 31
st
March 2011
More than 100% capacity utilization for last 5 years
Throughput (MMT)
44.0
47.4
51.4
50.7
53.0
40.0
45.0
50.0
55.0
FY07 FY08 FY09 FY10 FY11
13
? IndianOil owns and operates India’s Largest
network of crude & product pipelines
? Getting closer to the clients with increasing length
Panipat
Guwahati
Koyali
Haldia
Mathura
Barauni
Kanpur
Bhatinda
Kandla
Vadinar
Chaksu
Ahmedabad
J alandhar
J odhpur
Budge Budge
Kot
Delhi
Bongaigaon
Siliguri
Meerut
Sidhpur
Digboi
Tinsukia
Chennai
Navagam
Tundla
Lucknow
Sanganer
Maurigram
Rajbandh
Najibabad
Roorkee
Ambala
Sangrur
Rewari
Ajmer
Chittaurgarh
Dahej
Sankari
Asanur
Trichy
Madurai
Paradip
Mundra
Ratlam
Dadri
Bengaluru
Hazira
Viramgam
Bharatpur
Ranchi
Raipur
Pipelines…India’s Energy Life Line
Product
Crude Oil
Pipelines (Existing
)
Product
Pipelines (Ongoing)
R-LNG Pipeline
LPG Pipeline
LPG Pipeline
As on 1.4.2011
Durgapur
14
Pipelines……
59.6
64.5
67.8
Throughput (Million tonne)
Capacity Utilization (%)
Length (KM) Capacity
(MMTPA)
Crude Oil 4,366 40.40
Product 6,401 34.86
TOTAL 10,767 75.26
Gas 132 10*
* MMSCMD
Market Share (Downstream)
Crude Oil
87%
Product
49%
19.3
21.3 21.4
23
25.4
32.4
35.8
38.2
41.5
42.4
0
10
20
30
40
50
60
70
FY07 FY08 FY09 FY10 FY11
Crude oil
Product
51.7
57.1
93.3
95.8
88.0
90.6
91.6
70
75
80
85
90
95
100
FY07 FY08 FY09 FY10 FY11
15
Patna
Delhi
Kolkata
Mumbai
Chennai
J aipur
Bengaluru
Kochi
Bhubaneswar
Bhopal
Ahmedabad
Guwahati
Chandigarh
Lucknow
Secunderabad
NOIDA
Marketing…
Aviation Fuel Stations (96)
LPG Distributors (5,456)
Marketing Touch Points ( about 37,000)
LPG Bottling Plants
(89)
Bulk Consumer Pumps
(7,780)
Terminal/Depots
(140)
SKO/LDO Dealers (3,960)
Retail Outlets (19,463 including 3,517 KSKs)
As on 1.4.2011
IOC has share of about 54% in Marketing Infrastructure
IOC has share of about 54% in Marketing Infrastructure
LPG Customers (61.8 million)
No.1 oil
marketing
company in
INDIA
No.1 oil
marketing
company in
INDIA
Regional Offices : 4
State Offices : 16
Divisional Offices
Retail : 66
Consumer : 34
Indane Area Offices : 45
16
Product Sales (MMT)
Marketing - Sales
Rural Penetration : Contributing towards inclusive growth
Rural Penetration : Contributing towards inclusive growth
N
o
.
o
f
K
S
K
s
c
o
m
m
i
s
s
i
o
n
e
d
d
u
r
i
n
g
t
h
e
y
e
a
r
9
8
18
20
46
Other s
RIL
HPCL
BPCL
IOCL
Petroleum Products Market – % Share
(1)
53.4
57.5
60.9
63
65.3
3.1
3.3
3.6
4.5
5
40
50
60
70
FY07 FY08 FY09 FY10 FY11
Export
Domestic
67.5
64.5
60.8
56.5
70.3
KSK Sales (MS & HSD) - % of total IOC’s Sales (MS & HSD )
KSK Sales (MS & HSD) - % of total IOC’s Sales (MS & HSD )
(1)
Market share of other companies is provisional
17
IndianOil in Every Part in Every Heart
Only oil company
operating in every
part of India
Along, Passighat, Ziro
Leh, Kargil, Lahaul Spiti
North East
Islands Andaman, Nicobar, Lakshadweep
Himalayas
Retail Outlet at Boat house
Kisan Seva Kendra outlets for
extending rural reach
Modern XTRAcare ROs
18
Well Defined Strategy
Integration led Value
Enhancement
Backward & forward
integration for
maximum value
capturing
Diversification
Geographic and
product expansion to
develop sustainable
profits
Increasing Quality &
Operational Flexibility
Drive flexibility and
efficiency of production
capabilities
Reinforcing
Competitive
Advantage
Building capacity of
core refining and
pipeline business
Investing in the
Future
Facilitating R&D and
innovation to lead
future growth
1
2
3 4
5
19
R & D – Providing Cutting Edge
Biotechnology,
Nanotechnology,
Alternative Energy
Hydrogen &
Gasification
Lubricant
Technology
Fuel Additives
Polymers &
Petrochemicals
Established in 1972 , Currently 438 scientists & support staff
Established in 1972 , Currently 438 scientists & support staff
Refining
Technology
20
Investing in the Future – R&D/ Innovation
5
Focus of R&D
? The major thrust for R&D in next decade would be
– Reducing the carbon footprint of IOCL’s processes, products and
technologies; endeavour to reduce Company’s emissions by 20% to 25%
from current levels
– Licensing the Company’s technologies on a larger scale
– Application of nano-technology
– Development of superior, high performance catalyst and lubricant additives
– Improvement of overall efficiencies
Advances in Products
? INDMAX:
– Facilitates maximization of LPG and light distillates from refinery residue
– Aims to install a 4 MMTPA unit as a part of the refinery/ petrochemicals
complex at Paradip by 2012
? Marine Oils: One of only six oil companies globally to have indigenously
developed “original equipment manufacturer-approved marine lubricants
technology”
? Needle Coke:
– One of three companies in the world that possess the technology to make
high value needle coke for application in graphite electrodes for steel-
making.
– Technology has been commercialized in Bongaigaon and Guwahati
Refineries
95
261
567
942
1,510
0
1,000
2,000
FYE 07 FYE 08 FYE 09 FYE 10 FYE 11
Investment in R&D
(INR MM)
Active Patents by Geography
25%
23%
52%
India
USA
Others
Active Patents by Division
19%
39%
42%
Lubes
Refinery
Others
Budgeted Estimate For FY11
21
Forward Integration - Petrochemicals
India’s one of the major petrochemical player
Assets : Value addition to downstream business
22
Diversification to Gas Business
City Gas
Distribution
(CGD)
Proposed
LNG terminal
of 5 MMTPA
at Ennore
Stakeholder
in M/s
Petronet LNG
Limited (PLL)
LNG at
Doorstep
Gas
pipelines
Gas Sales and Turnover
(1)
1.63
1.91
1.85
1.90
2.30
1746
2078
2,884
2,990
4,001
0
0.5
1
1.5
2
2.5
3
3.5
4
2006?07 2008?09 2010?11
0
500
1000
1500
2000
2500
3000
3500
4000
4500 Sales Volume(MMT)
Turnover (INR Crore)
(1)
Includes sales to IOC’s refineries
23
Upstream Integration - Exploration & Production
Overseas Blocks :10
Libya (3), Iran (1), Yemen (2), Nigeria (1),
Gabon (1), Timor-Leste (1) & Venezuela (1)
Domestic Blocks : 13
NELP (11), CBM : (2)
Discovered:
Domestic Blocks – 3
Overseas Blocks: 3 (Farsi (Iran), OML 142 (Nigeria),
Carabobo Project 1 (Venezuela))
Awarded two S type blocks in Cambay basin
with 100% participating interest and
operatorship.
For domestic blocks participated mainly with OIL
and ONGC
For overseas blocks participated mainly with OVL
and OIL
Carabobo Project 1, Venezuela: PdVSA (60%),
Repsol (11%), Petronas (11%), OVL (11%); OIL
(3.5%), IOC (3.5%)
Total investment so far in E&P - INR 1,536* crore
Discovered:
Domestic Blocks – 3
Overseas Blocks: 3 (Farsi (Iran), OML 142 (Nigeria),
Carabobo Project 1 (Venezuela))
Awarded two S type blocks in Cambay basin
with 100% participating interest and
operatorship.
For domestic blocks participated mainly with OIL
and ONGC
For overseas blocks participated mainly with OVL
and OIL
Carabobo Project 1, Venezuela: PdVSA (60%),
Repsol (11%), Petronas (11%), OVL (11%); OIL
(3.5%), IOC (3.5%)
Total investment so far in E&P - INR 1,536* crore
(*As on 31.3.2011)
24
Diversification - Clean Energy
5 MW Solar Power Plant
• IOCL won bid to set up 5
MW Solar PV Power Plant
at Barmer, Rajasthan under
J awaharlal Nehru National
Solar Mission
Empowering Rural India
• Over 30,000 solar lantern
sold from Retail Outlets
(ROs), LPG Distributors for
lighting rural home / shops
• For poorer villagers, 3
Solar Charging Stations
installed at pilot basis to
centrally charge lanterns
for renting to customers
5 MW Solar Power Plant
• IOCL won bid to set up 5
MW Solar PV Power Plant
at Barmer, Rajasthan under
J awaharlal Nehru National
Solar Mission
Empowering Rural India
• Over 30,000 solar lantern
sold from Retail Outlets
(ROs), LPG Distributors for
lighting rural home / shops
• For poorer villagers, 3
Solar Charging Stations
installed at pilot basis to
centrally charge lanterns
for renting to customers
Wind
Power Project
• Commissioned at
Kachchh, Gujarat
in J anuary 2009
• Capacity : 21
MW (14 WEGs
of 1.5 MW
each)
• Considering further
investment in wind
power projects
Wind
Power Project
• Commissioned at
Kachchh, Gujarat
in J anuary 2009
• Capacity : 21
MW (14 WEGs
of 1.5 MW
each)
• Considering further
investment in wind
power projects
Nuclear Power
• J V Company
incorporated to
put up Nuclear
Power Plants in
India
• Equity
participation
(26%) in
Rawatbhata
(RAPP 7/8,
700*2 MWs)
Rajasthan
Nuclear Power
• J V Company
incorporated to
put up Nuclear
Power Plants in
India
• Equity
participation
(26%) in
Rawatbhata
(RAPP 7/8,
700*2 MWs)
Rajasthan
Energy Crop
Plantation
•Captive plantation
for J atropha in India
•Chhattisgarh,
J habua, MP :
6070Ha
•UP: Plantation under
MNREGS funded
Public-Private-
Panchayat
Partnership (P4)
model: 10 ha
completed
•Proposed to extend
plantation upto
50,000 ha.
Energy Crop
Plantation
•Captive plantation
for J atropha in India
•Chhattisgarh,
J habua, MP :
6070Ha
•UP: Plantation under
MNREGS funded
Public-Private-
Panchayat
Partnership (P4)
model: 10 ha
completed
•Proposed to extend
plantation upto
50,000 ha.
BIOFUELS
BIOFUELS
NUCLEAR
NUCLEAR
WIND
WIND
SOLAR
SOLAR
25
Subsidiaries - Beyond Boundaries
Major
OVERSEAS
SUBSIDIARIES
Lanka IOC
Limited,
Sri Lanka
(2002)
IOC Middle
East FZE,
Dubai (2006)
IndianOil
Mauritius
Limited,
Mauritius
(2001)
• 75.11 % stake holding
• Storage, Terminaling and Retail trade
• Turnover (2010-11) INR 2090 crore
• Ranked No. 1 Company in Sri Lanka
by Lanka Monthly Digest for the
third consecutive year
•100% stake holding
•Aviation, Retail, Storage,
Quality Assurance
•Turnover (2010-11) INR
841 crore
•3
rd
largest petroleum
company in Mauritius
•100% stake holding
•Sale of Lubricants in Middle East
countries
•Turnover (2010-11) INR 77 crore
26
Subsidiaries & JVs
IndianOil
CREDA
Biofuels
Limited
(2009)
• 74 % Stake
holding
• Amount of
Investment
by IOC: INR
0.74 crore
Domestic
Subsidiaries
Chennai Petroleum
Corporation
Limited
(2001*)
• 51.89% stake
holding
• PAT (2010-11):
INR 512 crore
• Amount of
Investment by
IOC: INR
509.33 crore
• Refining
Capacity: 11.5
MMTPA
* Became subsidiary of IndianOil
IOT Infrastructure & Energy Services Ltd (50%, 1996)
Petronet LNG Ltd. (12.5%, 1998)
IndianOilPetronas Pvt. Ltd. (50%, 1998)
Lubrizol India Pvt. Ltd.(50%, 2000)
Green Gas Ltd. (25%, 2005)
Indo Cat (P) Ltd. (50%, 2006)
IndianOil Skytanking Ltd. (33.33%, 2006)
Avi?Oil India Pvt. Ltd (25%, 1993)
Major
Joint
Ventures
Major Major
Joint Joint
Ventures Ventures
27
Financial Performance
28
Financial Performance
NET PROFIT
TURNOVER
NET WORTH
EBITDA
(1)
(INR / bn)
(INR / bn)
(INR / bn)
(INR / bn)
4.2
9.0
3.7
4.5
5.9
0.0
2.0
4.0
6.0
8.0
10.0
FY07 FY08 FY09 FY10 FY11
($/ bl)
PIPELINES EBITDA
(2)
25
26
29
33
35
20
25
30
35
40
FY07 FY08 FY09 FY10 FY11
(INR./ bn)
349
411
440
506
553
200
300
400
500
600
FY07 FY08 FY09 FY10 FY11
GRMs
(3)
2,208
2,475
2,854
2,711
3,287
1,500
2,000
2,500
3,000
3,500
FY07 FY08 FY09 FY10 FY11
146
143
113
189
163
0
25
50
75
100
125
150
175
200
FY07 FY08 FY09 FY10 FY11
75
70
30
102
74
0
25
50
75
100
125
FY07 FY08 FY09 FY10 FY11
(1)Including interest income
(2)Excluding interest income
(3)GRM’s for FY’07 & FY’08 does not include Bongaigaon GRMs
29
Financial Performance
315
361
424
402
387
100
150
200
250
300
350
400
450
FY07 FY08 FY09 FY10 FY11
Investments
(1)
(INR Bn)
Long Term Debt to Equity
(x)
592
660
805
934
1,058
400
500
600
700
800
900
1,000
1,100
FY07 FY08 FY09 FY10 FY11
Fixed Assets
(INR Bn)
0.3
0.3
0.4 0.4
0.3
0.0
0.1
0.2
0.3
0.4
FY07 FY08 FY09 FY10 FY11
0.9
1.0
1.1
1.1
1.3
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
FY07 FY08 FY09 FY10 FY11
Debt to Investments Ratio
(1)
0.8
0.9
1.0
0.9
0.95
0.0
0.2
0.4
0.6
0.8
1.0
1.2
FY07 FY08 FY09 FY10 FY11
Total Debt to Equity
284
342
259
265
397
0
100
200
300
400
FY07 FY08 FY09 FY10 FY11
Contribution to Central Exchequer
(INR Bn)
Note
1. Investments include Market Value of shares held in ONGC Ltd., GAIL (India) Ltd., OIL India Ltd., shares held in Trust formed for merger of IBP Co. Ltd. and Bongaigaon Refinery &
Petrochemicals Ltd and Special Oil Bonds
( x )
30
2.2
9.8
3.1
3.8
11.9
7.5
16.7
0.6
13.9
19.0
40.4
15.2
22.6
14.3
18.2
FY07 FY08 FY09 FY10 FY' 11
Oi l Bonds / Budgetary Support #
Di scount from Refi ners
Di scount from Upstream Compani es
Net Under Real i zati on
INR Thousand Crore
TOTAL
GOVT. OF
INDIA
SUPPORT
28.6
43.1
58.6
Compensation of Under Realization
25.8
# Oil Bonds till FY09; Budgetary Support during FY’10 & FY’11
43.1
31
Investments - Fuelling the growth
INR crore INR crore
52,000
17,930
12,886
Five Year Plan
9
th
Plan
9
th
Plan
10
th
Plan
10
th
Plan
11
th
Plan
(Anticipated)
11
th
Plan
(Anticipated)
INR crore INR crore
2007-08 2008-09 2009-10 2010-11 2011-12*
Plan
Expenditure 5,142 10,353 12,256 9,831 14,500
Non Plan
Expenditure 1,874 1,678 2,007 2,588 4,440
Total
7,016 12,031 14,263 12,419 18,940
Capital Expenditure
* Budgeted Estimate * Budgeted Estimate
32
Major ongoing projects
Projects-Refinery
Anticipated Outlay
(INR crore)
Objective
Anticipated
Completion
Paradip Refinery 29,777
To meet domestic demand & export of surplus
product
Nov’12
MS Quality Upgradation Project at
Bongaigaon Refinery
294 To produce BS-III quality MS July’11
DHDT at Bongaigaon Refinery 1,646 To produce BS-III quality HSD June’11
Fluidized Catalytic Cracking Unit at
Mathura Refinery
1,000
To increase processing capacity of unit from 1.3 to 1.5
MMTPA & maximize production of value added
propylene
Jan’13
Butadiene Extraction Unit at Panipat 342
Designed to produce 138 MTPA of Butadiene to be
used as feedstock for SBR project at Panipat
Feb’13
Total (a):
33,059
Projects-Pipelines Anticipated Outlay (INR crore)
Anticipated Completion
Branch pipeline from KSPL, Viramgam to Kandla 349 Dec’11
Paradip-Sambalpur-Raipur-Ranchi pipeline 1,793 Sep’12
Debottlenecking of Salaya-Mathura crude pipeline 1,584 Dec’12
Integrated crude handling facilities at Paradip 1,493 Jun’12
Tanks and Blending facilities at Vadinar 267 Oct’11
Paradip-Haldia-Durgapur LPG pipeline 913 Dec’13
Total (b) : 6,399
Other Projects (c)
5,600
TOTAL (a+b+c) 45,058
33
Human Capital: Assets of IndianOil
33
33
34
IndianOilPeople…… towards excellence
34,105
34,105
Human Capital: Assets of IndianOil
As on 31.3.2011
35
Human Capital - Assets of IndianOil…
IndianOil People…… towards excellence
36
IndianOil: Beyond Business
37
Sustainable Development
CDM projects
Green fuels
Tree plantation
Emissions control
Effluent treatment
Water management
IndianOil
Initiatives
38
Care for Environment
Environment Management Systems at refineries, pipelines and major marketing
installations certified under ISO-14001 standards
Best procedures & practices of industry in place at all operating units to take
care of Safety, Occupational Health & Environmental Issues
Expected to generate 60,000 CERs per annum through various CDM projects
planned in refineries
Decline of ~22% is witnessed in effluent discharge (per TMT of crude oil) from
refineries in 2010-11 compared to 2009-10.
39
Corporate Social Responsibility
Indian Oil Foundation
Scholarships (30%)
Community Development:
(30%)
(Education, Health
& Drinking water)
National causes &
Natural calamities (35%)
LPG connections to BPL families
under RGGLVY (20%)
2% of retained profit of
previous year for CSR
Contributions/Donations (5%)
40
Conclusion
Delivering on Key Success Factors
1
The #1 R&M Player in India
2
Integrated Operations
3
Strong Performance
4
41
Conclusion – Delivering on Key Success Factors
Key Success Factors Indian Oil Corporation Positioning
Feedstock
? Long term contracts to build access to feedstock
? INR 15 bn invested in E&P blocks; Reserves identified in six blocks
Integration
? Increasing equity investment in E&P to create integrated projects
? Indian market leadership in refining and marketing
? Capacity enhancement to produce diversify petrochem product
slate
Manufacturing
Excellence and Scale
? In-house state of the art R&D facilities
? Largest refining capacity in the country
? Recently commissioned India’s largest Naphtha Cracker Unit
Access to Key
Markets
? Ideally positioned for growth in India
? Access to key markets in Asia Pacific
Logistics/
Distribution
? Largest crude and product pipeline network in the country
? Maximum number of customer touchpoints in the Indian petroleum
industry
?
?
?
?
?
1
42
Conclusion – The # 1 R&M Player in India
6 5. 7
6 2 . 0
2 4 . 5
14 . 8
10 . 5
12 . 0
0 . 0
15. 0
3 0 . 0
4 5. 0
6 0 . 0
75. 0
I OC RI L B PCL HPCL Essar ONGC
Refining Capacity
(MMT)
19,463
10,212
9,290
0
4,000
8,000
12,000
16,000
20,000
IOCL HP CL B P CL
Retail Outlets
(No.)
40
6
0
10
20
30
40
50
IOCL Ot her do wns t r eam P SU
Crude Pipelines
(MMT)
1.1x
6.7x
1.9x
65
28
26
0
15
30
45
60
75
IOCL B P CL HP CL
Domestic Sale of Petroleum Products
(MMT)
5,456
2,633
2,452
0
2,000
4,000
6,000
IOCL HP CL B P CL
LPG Distributors
(No.)
35
26
10
0
10
20
30
40
IOCL HP CL B P CL
Product Pipelines
(MMT)
2.2x
1.4x
2.1X
2
43
Conclusion – Integrated Operations
3
Petrochemicals
Refining
Pipelines
Marketing
Nuclear
Nuclear
Wind
Wind
Solar
Solar
Gas
44
Conclusion – Strong Performance
4
Notes
1. [Investments include Market Value of shares held in ONGC Ltd., GAIL (India) Ltd., OIL India Ltd., shares held in Trust formed for merger of IBP Co. Ltd. and
Bongaigaon Refinery & Petrochemicals Ltd and Special Oil Bonds
Debt to Investments Ratio
(1)
Long Term Debt to Equity
Performance
5yr CAGR Growth Rates
? Asset Base : 14.6%
? Turnover : 12.4%
? Net worth: 13.6%
? Refining capacity: 5.6%
? Pipelines capacity: 4.6%
Capital Structure: Virtually Debt Free
Growth Rates
Margins & Returns
? FY11 EBITDA margin of 4.9%
? FY11 ROE: 13.5%
? FY11 ROA: 15.6%
Margins & Returns
0.3
0.3
0.4 0.4
0.3
0.0
0.1
0.2
0.3
0.4
FY07 FY08 FY09 FY10 FY11
0.9
1.0
1.1
1.1
1.4
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
FY07 FY08 FY09 FY10 FY11
( x )
( x )
45
45
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