INTRODUCTION
Marketing strategy for lubricants
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In this period of globalization, factors like economic crises, differences in standards of living,
imbalances in income distribution, environmental degradation, political unrest and a plethora of
other social, economic and technological problems tend to increase the challenges and threats
faced b companies and nations! "hile these factors can be threats to a business, marketers tr
continuousl to convert them into opportunities! Thus, marketing plas a significant role in
successfull running a business! #arketing has become an inherent part of our lives and
permeates ever aspects of our da$ to$da e%istence! &ctivities such as 'atching television,
listening to the radio, reading the ne's paper, buing grocer items$ the are all dependent on
marketing! #arketing focuses on satisfing human and social needs and 'ants, and helps
companies transform private and social needs into profitabilit business opportunities #arketers
need to deliver value to their customers! The also need to communicate to their customers the
value the are delivering! Complete customer satisfaction is achieved b understanding customer
re(uirements and delivering superior (ualit goods and services! Companies must provide the
customers 'ith a continuous flo' of ne' ides)offers and constantl enhance their service levels
to build up satisfaction among customers !& marketing program starts 'ith idea generation for a
product and ends onl 'hen customer*s 'ants have been completel satisfied! It might run 'ell
beond the sale of the product, to ensure customer satisfaction and encourage repeat business!
.STRATEGIC MARKETING PLANNING
+trategic market planning is the process of communicating and sharing data bet'een different
departments of an organization to collectivel formulate future strategies and implement them
'ith ma%imum efficienc! +trateg formulation helps the decision makers of the organization to
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proactivel respond to needs of the market and thus sta ahead of companies #arketing strateg
for lubricants among ,leet o'ner segment!
CORPORATE AN I!ISIONAL STRATEGIC PLANNING
+trategic planning involves framing corporate and divisional strategies! -o'ever, prior to that
the compan has to identif its position in the market! Toda firms face global competition! To
sustain itself in a global market a compan has to adapt to international standards! The strategic
planning process ma suffer, if there is an increased resistance to change 'ithin the organization!
To deal 'ith such situation, Igor &n off suggested a .managed$resistance or accordion approach?
in 'hich a firm can emplo coercive strateg 'hen there is a pressing need for change!
MARKETING PROCESS
The marketing process of a compan tpicall involve identifing the viable and potential
marketing opportunities in the environment, developing strategies to efficienc utilize these
opportunities, evolving suitable marketing strategies and supervising the implementation of these
marketing efforts! Traditionall, marketing has been done based on production concept, 'here a
product is made and pushed into the market 'ithout considering the consumer perception and
attitudes! /ut over the ears, the marketing process has transformed into an integrated marketing
approach, 'hich is no' largel being emploed b most organizations across the globe! The firm
must therefore concentrate on formulating strategies to attract customers based on their value
perceptions"
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STEPS IN PLANNING PROCESS
The steps in the marketing planning process are, analzing the marketing opportunities,
developing marketing strategies, planning marketing programs, and managing effort!
#" ANAL$%ING T&E MARKETING OPP'RT'NITIES(
0ver compan has to analze its marketing opportunities based on its area of significance,
position, and sales in the market! ,or e%ample, let us sa there is a huge #arketing strateg for
lubricants among ,leet o'ner segment market potential for micro mobile phones! "here a small
chip can be placed inside the ear and one can hear and speak through it! #arket research has to
be conducted to estimate the market potential for the product, and the segments to be targeted
and to search for appropriate channels and distributors! The compan has focus on factors such
as the features and benefits that the customers 'ould e%pect and the advertising and promotional
strategies that have to be adopted! "ith such data, the product mabe developed using advanced
technolog, such as "&1 and /luetooth!
)" E!ELOPING MARKETING STRATEGIES(
#arketing strategies have to be designed subse(uent to the product development and the analsis
of marketing opportunities! +pecific suitable to the target markets have to be developed, even
'hile the product enters the different stages of its life ccle! +trategies developed at these stages
should be so effective that competitive advantages developed at these stages should be so
effective that a competitive advantage is al'as sustained!
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*" PLANNING MARKETING PROGRAMS(
#arketing programs have to be planned in such a 'a that the strategies formulated are properl
implemented and aid in the achievement of organizational goals! 0ver compan 'hile planning
the marketing programs should consider the marketing mi% variables$ product, price, place, and
promotion! 0ach marketing mi% variable in turn has several factors that have to be focused upon!
,or instance, the product has factors like features, design, (ualit, packing, etc! the pricing factor
are discounts, credit limits etc! The place includes factors such as distributors, location, market
coverage etc and finall the promotional factors include advertising, offers, public relations etc!
The budget allocation for different program has to be planned b the manager! The budget for
different marketing programs is often allocated depending upon the estimated sales of the
products "
+" MANAGING T&E MARKETING E,,ORT2
#anaging the marketing effort is a crucial task! &fter the strateg formulation and the subse(uent
development of the marketing plan, necessar steps have to be taken to control the activities and
put them on track! The budget allocated has to be properl utilized! If an deviations occur at an
stage of marketing process, the manager should efficientl control them! The management of the
marketing effort is the responsibilit of the entire organization, as an fault at an stage of
product development process, 'ill affect the scale badl! Therefore due care has to be taken
'hile selecting the ra' materials, stocking them, processing them and so on!
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-" MARKETING PLAN(
#arketing planning involves the development of logical process to establish marketing goals and
plans to achieve these goals! It involves allocating budgets for different marketing activities and
evaluating the target market segment! #arketing planning ma be informal in small
organizations 'hile it ma be formal process in large organizations! 0%perts have identified,
developed and implementation of marketing plans! The are confusion bet'een tactics and
strateg, marketing function and the marketing concept, organizational obstacles, lack of a proper
evaluation process, confusion bet'een operations and output, absence of ade(uate kno'ledge,
absence of a structural approach, inappropriate method of se(uencing the goals, and an
unfavorable corporate environment! Therefore, the management should take necessar steps to
overcome these barriers to marketing planning and implementation! The marketing plan of a
business firm involves several functions namel, a chart specifing the content, opportunit and
issue analsis, marketing strateg, action program, pro3ect profit and loss statement and control
measures!
Proactive Management of Lubricant Life
Selecting Premium Base Oil
One strateg for e%tending lubricant life is to select premium lubricants formulated 'ith
premium base oils, premium additive sstems or a combination of both! The &merican
1etroleum Institute 4&1I5 has provided a standard classification for base oils, called groupings, to
summarize the (ualit of the oil! The &1I categories include 6roup I, II, III, I7 and 7 oils!
6roups I, II and III are mineral base oils refined to varing degrees! 6roup I7 oils are
specificall snthesized hdrocarbon base oils such as polalphaolefin 41&O5, the most common
snthetic base oil! The &1I also indicates viscosit inde% 47I5, percent saturated hdrocarbon and
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percent sulfur re(uirements for 6roups I, II and III! 6roup 7 oils include everthing not in
6roups I, II, III or I7 such as dibasic acid ester, plo ester, pol glcol, phosphate ester and
numerous other base oils that possess special properties! Due to the 'ide range of 6roup 7 base
oils, specific re(uirements for this group have not been made!
!iscosity In.e/
The 7I is an indication of the base oil8s relative change in viscosit for a given change in
temperature! & high 7I is generall considered a favorable characteristic because lubricants
'ith this (ualit are operable across a greater range of temperatures! Compared to a lo' 7I
base oil of the same viscosit grade, high 7I base oil has comparativel lo'er viscosit at cold
+tart! Therefore, its flo' characteristics are superior and it maintains a higher viscosit at full
operating temperature, thus providing a thicker oil film to protect the oil! 6roup I has the
lo'est 7I re(uirement and 6roup I7 has the highest re(uirement set b the &1I, and 6roups II
and III fall in bet'een! 6roup I7 41&O5 base oils generall possess a higher 7I than either 6roups
I, II or III! The 7I of 6roup 7 base oil varies depending upon tpe!
'nsaturate. &y.rocarbons
The percentage of unsaturated hdrocarbons in oil indicates the base oil8s abilit to resist
o%idation and thermal failure! /ase oil that has been highl refined to reduce or eliminate
unsaturated molecules 'ill resist o%idation and thermal failure more effectivel than base oil
'ith a comparativel high percentage of unsaturated hdrocarbon molecules! 6roup I base oils
possess a higher percentage of unsaturated molecules than 6roups II or III, 'hich generall
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means that the o%idative and thermal life of 6roup III base oil is superior to 6roup II, 'hich is
superior to that of 6roup I! -o'ever, improving resistance to o%idative and thermal failure b
refining the base oil to reduce or eliminate unsaturated hdrocarbons can have negative side
effects! /ase oils 'ith a lo' percentage of unsaturated molecules have trouble dissolving
additives and the tend to cause elastomer shrinkage! To counter this, man 6roup II, III and I7
base oils are formulated 'ith co$base oil, such as diester to polol ester to improve additive
solubilit and offset seal shrinkage tendencies!
Sulfur
+ulfur occurs naturall in most mineral base oils! The &1I has designated ma%imum sulfur levels
for 6roup I, II and III base oils, 'ith 6roup I having a higher sulfur allo'ance than 6roups II or
III! 6roup I7 1&O, 'hich is a snthesized hdrocarbon, is sulfur$free! +urprisingl, sulfur
improves the base oil8s lubricit 4the oil8s abilit to lubricate under boundar metal$to$metal
contact conditions5 and natural resistance to o%idation! In fact, sulfur is a component in man
additive formulations, including antio%idants, anti'ar 4&"5 agents and antis cuffing or e%treme
pressure 4015 agents! "h, then, is lo'er sulfur associated 'ith higher base oil grades9 #odern
lubricant formulators prefer to control the chemical conte%t 'here the sulfur resides in the
finished lubricant! Therefore, the prefer to start 'ith base oil containing a lo' concentration of
naturall occurring sulfur so it can be added back into the concentration and chemical form
believed to be appropriate for the application!
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Synt0etic 1ase Oil
0nd users often presume that specifing a premium lubricant b definition means selecting a
lubricant formulated 'ith snthetic base oil! In some instances, snthetic base oil is
appropriate, but not al'as! +nthetic base oil, depending on its tpe, offers several possible
advantages 4Table :5! -o'ever, not all snthetic base oils offer these properties and
the ma not be re(uired! ,or instance, high 7I base oil is not re(uired for a machine that
operates ;<)= at a constant temperature! >ike'ise, detrimental aspects associated 'ith
snthetic base oil must be considered! If ou cannot make the decision ourself, consult e%pert
advice!
20at is OEM3
Original e4ui56ent 6anufacturer 4OEM5 is a term used 'hen one compan makes a part or
subsstem that is used in another compan8s end product! The term is used in several 'as, each
of 'hich is clear 'ithin a conte%t! The term sometimes refers to a part or subassembl maker,
sometimes to a final assembl maker, and sometimes to a mental categor comprising those t'o
in contrast to all other third part makers of parts or subassemblies from the aftermarket!
In the first usage, the O0# is the compan that makes a part that is marketed b another
compan, tpicall as a component of the second compan8s o'n product! ,or e%ample, if &cme
#anufacturing Co! makes po'er cords that are used on I/# computers, &cme is regarded as the
O0# of the po'er cords!
In the second usage, OEM refers to companies like value$added resellers, 'hich are
the second manufacturer in the definition above! If, for e%ample, -e'lett$1ackard sells circuit
boards to &cme +stems for use in &cme8s securit sstems, -$1 refers to &cme as an O0#!
In the third usage, OEM is a mental categor for all of the makers involved 'hen a final
assembl 'as first built 4originall e(uipped5?in contrast to 'hoever made after market parts
that 'ere installed later! ,or e%ample, if ,ord used &utoclave spark
plugs, 0%ide batteries, /osch fuel in3ectors, and ,ord8s o'n engine blocks and heads 'hen
building a car, then car restorers and collectors consider all of those brands as O0# brands, in
contrast to aftermarket brands 4Champion plugs, Diehard batteries, @indler fuel in3ectors, and
/#1 engine blocks and heads5! This can mean that /osch in3ectors are considered O0# parts on
one car model and aftermarket parts on another model! "hen referring to automotive parts, O0#
designates a replacement part made b the manufacturer of the original part! &s most cars are
originall assembled 'ith parts made b companies other than the one 'hose badge appears on
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the vehicle, it ma happen that a car compan sells O0# spare parts 'ithout claiming to have
manufactured the part itself!
&n automobile part ma carr the designation O0# if it is made b the same manufacturer that
made the original part used 'hen building and selling the car or pick$up truck!
ABC
The
term aftermarket is often used for non$O0# spare parts!
In purchasing parts at national, discount auto parts retailers 4e!g!, N&1&, &uto
Done, -alfords, &dvance &uto 1arts, 1ep /os, #otrin, &utobacs, etc!5, man parts 'ill have
O0# prominentl displaed but follo'ed b a (ualifier such as Emeets O0# standardsE! +uch
auto parts are not O0#F the are simpl claiming to have been manufactured to the same
specifications as the O0# parts?specifications that ma 'ell be unpublished and unkno'able!
L'1RICANTS
& lubricant is a substance introduced to reduce friction bet'een surfaces in mutual contact,
'hich ultimatel reduces the heat generated 'hen the surfaces move! It ma also have the
function of transmitting forces, transporting foreign particles, or heating or cooling the surfaces!
The propert of reducing friction is kno'n as lubricit 4or slipperiness5!
In addition to industrial applications, lubricants are used for man other purposes! Other uses
include cooking 4oils and fats in use in fring pans, in baking to prevent food sticking5, bio$
medical applications on humans 4e!g! lubricants for artificial 3oints5, ultrasound e%amination,
medical e%aminations, and the use of personal lubricant for se%ual purposes!
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>ubricants are an essential part of modern machiner! 0verthing from computer hard disk
drives to the &irbus &GHI re(uires lubrication of its moving parts !& lubricant 4collo(uiall, lube,
although this ma also refer to personal lubricants5 Isa substance 4usuall a li(uid5 introduced
bet'een t'o moving surfaces to reduce the friction and 'ear bet'een them! & lubricant provides
a protective film, 'hich allo's for t'o touching surfaces to be separated, thus lessening the
friction bet'een them! >ubricants also pla a role in cooling, rust prevention and help to avoid
deposition of solids bet'een closel fitting parts! >i(uid lubricants are most commonl used, but
for some special situations like e%tremes of temperature or 'here rene'al of li(uid lubes is
difficult, solid lubricants like graphite or molbdenum are used! Crude oil is an e%cellent source
of lubes because refining can produce a 'ide range of li(uids 'ith different phsical properties!
The basic process includes vacuum distillation and de' a%ing to produce the fraction 'ith the
right viscosit$temperature characteristics! 7iscosit is the most important characteristic 'hile
deciding on lubes! Changes in viscosit 'ith temperature are of significance and are denoted b
the 7iscosit Inde% J7iscosit is a measure of its thickness or abilit to flo'! / use of relativel
large amounts of additives it is possible to formulate oil 'hich ma fall 'ithin the range of more
than one +&0 4+ociet of &utomotive 0ngineers5grade! +ince all 7I improvers increase
viscosit, a base oil of lo' viscosit is used! >ubes can therefore be classified on the basis of the
characteristic as single grade or multiple grades! #ulti grade lubes are superior because of better
phsical characteristics and variet of use segment Tpicall lubricants contain KIL base oil
4most often petroleum fractions, called mineral oils5 and less than :IL additives! 7egetable oils
or snthetic li(uids such as hdrogenated pololefin*sF esters, silicone, fluorocarbons and man
others are sometimes used as base oils! &dditives deliver reduced friction and 'ear, increased
viscosit, improved viscosit inde%, resistance to corrosion and o%idation, aging or
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contamination, etc! Non$li(uid lubricants include grease, po'ders 4dr graphite, 1T,0,
#olbdenum disulfide, etc!5, Teflon tape used in plumbing, air cushion and others! ¬her
approach to reducing friction and 'ear is to use bearings such as ball bearings, roller bearings or
air bearings or to use sound, in the case of acoustic lubrication! >ubricants such as ;$ccle oil are
also added to some fuels! +ulfur impurities in fuels also provide some lubrication properties,
'hich have to be taken in account 'hen s'itching to a lo'$sulfur dieselF biodiesel is a popular
diesel fuel additive providing additional lubricit!
Ty5es of Lubricants(
• >i(uid including emulsions and suspensions
• +olid
• 6reases
• 1astes
Li4ui. lubricants(
>i(uid lubricants ma be characterized in man different 'as! One of the most common 'as is
b the tpe of base oil used! ,ollo'ing are the most common tpes!
• "ater
• #ineral oils
• 7egetable 4natural oil5
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• +nthetic oils
• Others
• +olid lubricants
In :KKK, an estimated G=,GII,III tons of lubricants 'ere consumed 'orld'ide!
A:C
&utomotive
applications dominate, but other industrial, marine, and metal 'orking applications are also big
consumers of lubricants! <hough air and other gas$based lubricants are kno'n 4e!g!, in fluid
bearings5, li(uid and solid lubricants dominate the market, especiall the former!
>ubricants are generall composed of a ma3orit of base oil plus a variet of additives to impart
desirable characteristics! <hough generall lubricants are based on one tpe of base oil,
mi%tures of the base oils also are used to meet performance re(uirements!
1ase oil grou5s
#ineral oil term is used to encompass lubricating base oil derived from crude oil! The &merican
1etroleum Institute 4&1I5 designates several tpes of lubricant base oil2
• 6roup I M +aturates N KIL and)or sulfur O I!IGL, and +ociet of &utomotive
0ngineers 4+&05 viscosit inde% 47I5 of HI to :;I #anufactured b solvent e%traction,
solvent or cataltic de' a%ing, and hdro$finishing processes! Common 6roup I base oil
are :BI+N 4solvent neutral5, BII+N, and :BI/+ 4bright stock5
• 6roup II M +aturates O KIL and sulfur N I!IGL, and +&0 viscosit inde% of HI to :;I
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#anufactured b hdrocracking and solvent or cataltic de' a%ing processes! 6roup II
base oil has superior anti$o%idation properties since virtuall all hdrocarbon molecules
are saturated! It has 'ater$'hite color!
• 6roup III M +aturates O KIL, sulfur N I!IGL, and +&0 viscosit inde% over :;I
#anufactured b special processes such as is hdro mediation! Can be manufactured
from base oil or slacks 'a% from de' a%ing process!
• 6roup I7 M 1ol alpha olefins 41&O5
• 6roup 7 M &ll others not included above such as naphthenic, 1&6, esters!
T0e lubricant in.ustry co66only e/ten.s t0is grou5 ter6inology to inclu.e(
• 6roup IP 'ith a 7iscosit Inde% of :IGM:IH
• 6roup IIP 'ith a 7iscosit Inde% of ::GM::K
• 6roup IIIP 'ith a 7iscosit Inde% of at least :<I
Can also be classified into three categories depending on the prevailing
compositions2
• 1araffinic
• Naphthenic
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• &romatic
>ubricants for internal combustion engines contain additives to reduce o%idation and
improve lubrication! The main constituent of such lubricant product is called the base oil,
base stock! "hile it is advantageous to have a high$grade base oil in a lubricant, proper
selection of the lubricant additives is e(uall as important! Thus some poorl selected
formulation of 1&O lubricant ma not last as long as more e%pensive formulation of
6roup IIIP lubricant!
1io lubricants 6a.e fro6 7egetable oils an. ot0er rene8able
sources
These are primaril triglceride esters derived from plants and animals! ,or
lubricant base oil use the vegetable derived materials are preferred! Common
ones include high oleic canola, castor oil, palm oil, sunflo'er seed
oil and rapeseed oil from vegetable, and Tall oil from tree sources! #an
vegetable oils are often hdrolzed to ield the acids 'hich are subse(uentl
combined selectivel to form specialist snthetic esters! Other naturall derived
lubricants include lanolin 4'ool grease, a natural 'ater repellent5!
"hale oil 'as a historicall important lubricant, 'ith some uses up to the latter
part of the ;Ith centur as a friction modifier additive for automatic transmission
fluid!
In ;IIH, the bio lubricant market 'as around :L of U@ lubricant sales in a total
lubricant market of H<I,III tonnes)ear!
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>anolin is a natural 'ater repellent, derived from sheep 'ool grease, and is an
alternative to the more common petro$chemical based lubricants! This lubricant
is also a corrosion inhibitor, protecting against rust, salts, and acids!
"ater can also be used on its o'n, or as a ma3or component in combination 'ith
one of the other base oils! Commonl used in engineering processes, such as
milling and lathe turning!
Synt0etic oils
• 1ol alpha$olefin 41&O5
• +nthetic esters
• 1ol alklene glcols 41&65
• 1hosphate esters
• &lklated naphthalene*s 4&N5
• +ilicate esters
• Ionic fluids
Soli. lubricants
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PT,E( pol tetra flour ethlene 41T,05 is tpicall used as a coating laer on,
for e%ample, cooking utensils to provide a non$stick surface! Its usable
temperature range up to GBI QC and chemical inertness make it a useful additive
in special greases! Under e%treme pressures, 1T,0 po'der or solids is of little
value as it is soft and flo's a'a from the area of contact! Ceramic or metal or
allo lubricants must be used then! ETeflonRE is a brand of 1T,0 o'ned b
Du1ont Co!
Inorganic soli.s( 6raphite, he%agonal boron nitride, molbdenum
disulfide and tungsten disulfide are e%amples of materials that can be used
as solid lubricants, often to ver high temperature! The use of some such
materials is sometimes restricted b their poor resistance to o%idation 4e!g!,
molbdenum disulfide can onl be used up to GBIQC in air, but ::IIQC in
reducing environments5!
Metal9alloy( #etal allos, composites and pure metals can be used as grease
additives or the sole constituents of sliding surfaces and
bearings! Cadmium and 6old are used for plating surfaces 'hich gives them
good corrosion resistance and sliding properties, >ead, Tin, Dinc allos and
various /ronze allos are used as sliding bearings, or their po'der can be used to
lubricate sliding surfaces alone, or as additives to
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A4ueous lubrication
&(ueous lubrication is of interest in a number of technological applications!
+trongl hdrated brush polmers such as 106 can act as lubricants at li(uid
solid interfaces! / continuous rapid e%change of bound 'ater 'ith other free
'ater molecules, these polmer films keep the surfaces separated 'hile
maintaining a high Suidit at the brushMbrush interface at high compressions,
thus leading to a ver lo' coefficient of friction!
Reac0 an. Net8ork
Indian Oil and its subsidiar 4C1C>5 account for over <KL petroleum products market share,
G:L national refining capacit and =:L do'nstream sector pipelines capacit in India!
The Indian Oil 6roup of companies o'ns and operates :I of India8s ;; refineries 'ith a
combined refining capacit of TB!= #illion #etric Tonnes 1er &nnum 4##T1&5, i!e! :!GI
million barrels per da appro%imatel! Indian Oil8s cross$countr net'ork of crude oil and
product pipelines spans ::,;:< km 'ith a capacit of ==!;BH ##T1& of crude oil and petroleum
products and :I ##+C#D of gas! This net'ork is the largest in the countr and meets the vital
energ needs of the consumers in an efficient, economical and environment$friendl manner!
The Corporation has a portfolio of po'erful and much$loved energ brands that includes Indane
>16as, +0R7O lubricants, Utra 1remium petrol, Utra #ile diesel, 1RO10> V petrochemicals,
etc! 7alidating the trust of H; million households, Indane has earned the coveted status of
1
8+uperbrand8!
Retail Outlets(
Indian Oil has a keen customer focus and a formidable net'ork of customer touch$points dotting
the landscape across urban and rural India! It has over ;G,KII petrol and diesel stations, including
over TIII @isan +eva @endras 4@+@s5 in the rural markets! "ith a countr'ide net'ork of over
<I,III sales points, backed for supplies b :GB bulk storage terminals and depots, G,KGI
+@O)>DO dealers 4TIL of the industr5, KH aviation fuel stations and KI >16as bottling plants,
Indian Oil serves ever nook and corner of the countr! Indane is present in almost G,:GI markets
through a net'ork of =IGB distributors 4B:!;L of the industr5! Over T,GII bulk consumer
pumps are also in operation for the convenience of large consumers, ensuring products and
inventor at their doorstep!
Indian Oil8s I+O$KII; certified &viation +ervice commands an enviable TGL market share in
aviation fuel business, successfull servicing the demands of domestic and international flag
carriers, private airlines and the Indian Defence +ervices! The Corporation also en3os a TBL
share of the bulk consumer, industrial, agricultural and marine sectors!
O1:ECTI!E O, ST'$
2!
The ob3ective of the surve 'as to collect information regarding the lube
marketing through O0# of various companies, mostl IOC>!
It comprised of the follo'ing details2
? To understand tpe of lubricant sold from different O0#s!
? To stud the effect on sale of lubes through &dvertisements, 1osters and banners,
@no'ledge of O0# attendant about lubricants
? To kno' effect on sale of lubes through offers and schemes,
? To catch the 'eak point of availabilit of demand
? To see a'areness about the product
!
SCOPE9SIGNI,ICANCE O, ST'$
Market 'n.erstan.ing
#arket understanding is the basic factor in a business to sell the right product to the right person
at the right time! "hile understanding a market the main problem the markets comes across are
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? "hat problem the product going to solve from customer vie'9
? "hat are our competitors providing in the same segments9
? "ho 'ill bu the product and 'h9
? "hat is the customer*s e%pectation in a future similar product9
? -o' 'ill the product reach the customer9
To get the e%act ans'ers for the above$mentioned (uestions the market surve has to be taken!
The steps involved in understanding the market are
? Understand the value 'ith an uni(ue selling proposition
? +urve the competitive landscape 'ith proper positioning!
? Understand the target market 'ith the market focus vie'!
? 1lan a sales campaign!
'n.erstan.ing t0e 7alue 8it0 an uni4ue selling 5ro5osition
This step helps the marketer to understand
? The target market
? The needs the product going to meet
? The plan points the product going to relieve for the customers
? Then, 'hat is the solutions
Sur7ey t0e co65etiti7e lan.sca5e 8it0 5ro5er 5ositioning
& proper positioning is re(uired for an product to sho' do'n the are different to their
competitor*s product! +ho'ing the uni(ueness of the product a surve should be conducted to
kno' ho' far the customers 'ill prefer the product in future and ho' far the product is going to
help the customer b reducing the pain points, 'hich is e%perienced from the current
competitor*s product he uses!
'n.erstan.ing t0e target 6arket by 6arket focus
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The market should have a clear market vie' on the right audience to make their product reach a
'ide range! Understanding the right customer can be done onl through proper observations on
the market! Targeting the right customers and e%plaining about the future product 'ill fetch some
understanding ho' the product 'ill 'ork in the market and ho' far the product 'ould be
successful!
Plan a sales ca65aign
+ales campaign has to be created to e%press the process 'hich 'ill help the customer understand
'hat actuall the product 'ill do and ho' far the product is different from the e%isting similar
competitor*s product! The demo 'ill help the marketer in understanding the customer*s feedback
about the product in realit!
INDUSTRY
23
PROFILE
T0e In.ian Petroleu6 In.ustry
The 1etroleum industr in India stands out as an e%ample of the strides made b the countr in
its march to'ards economic self$reliance! &t the time of independence in :K<=, international
companies controlled the industr! Toda, a little over BI ears later, the industr is largel in the
public domain 'ith skills and technical kno'$ho' comparable to the highest international
standards! The testimon of its vigor and success during the past five and half decades is the
significant increase in crude oil production from I!;B to I!GG million tonnes per annum and
refining capacit from I!G to :IG million metric tonnes per annum! The consumption of
petroleum products has gro'n GI times in the last BI ears from G million tonnes during :K<H$<K
to about :I=!= million tonnes in ;IIG$I<, an increase of G!BL over :I<!: million tonnes
registered in ;II;$IG! & vast net'ork of over ;K,III dealerships and distributorships has been
24
developed backed b over <II storage points over the ears to serve the people even in the
remote and once$inaccessible areas!
Oil production & consumption in India (Million tons)
2!!6 2!!7 2!!8 2!! 2!1!
"ru#e oil $ro#uction 32% 33% 32%7 32 32%5
"ru#e oil consum$tion 62% 65%2 68%5 86 1!3%5
&e'cit (Met b) *m$orts+ (33%+ (34%5+ (3%8+ (54%!+ (71%!+
*n or#er to un#erstan# t,e level of *n#ian #eman# for $etroleum $ro#ucts in
a global $ers$ective- t,e follo.ing table furnis,es a com$arison of $er ca$ita
consum$tion of $etroleum $ro#ucts in t,e various $arts of t,e .orl#%
(/ilograms $er annum+
0 *n#ia 8
0 ",ina 165
0 1ort, 2merica 2-61!
0 3orl# average 585
"ith the per capita consumption level in India being onl about TIL of that in China, a strong
gro'th potential e%ists in India, given particularl a large population base of over a billion!
25
Growth
In the BI ears since independence India has 'itnesses a significant gro'th in the refining
facilities and increase in the number of refineries from one to eighteen no'! The first decade of
Independence 4:K<=$B=5 sa' the establishment of three costal refineries b multinational oil
companies operating in India at that time, viz! /urma +hell, 6esso +tave and Calte%F the first t'o
at #umbai and the third at 7ishakhapatnam! & ma3or boost to the oil industr came in pursuance
of the Industrial 1olic Resolution, :KBT that intended to promote gro'th of the vital sectors
such as petroleum under the +tate control! ON6C, 'hich 'as formed a Directorate in :KBB,
became a Commission in :KBT!
The second decade 4:KB=$T=5 'itnessed the setting up of the Indian Refineries >td! in :KHB, a
'holl o'ned public sector 6overnment Compan! Under its banner three refineries 'ere set up
at 6u'ahati 4&ssam5, /arauni 4/ihar5 and @oali 46u3arat5 essentiall to process the indigenous
crude discovered in &ssam and 6u3arat! In :KBK, the Indian Oil Compan 4INDI&NOI>5, again
a 'holl o'ned 6overnment compan, 'as formed for marketing of petroleum products! Indian
Refineries >td! 'as merged 'ith Indian Oil Compan >td! to form Indian Oil Corporation >td!
on :
st
+eptember :KT<!
The ne%t ten ears period 4:KT=$==5 'itnessed the establishment of t'o refineries, one 'ith
e(uit participation from &merica and Iranian companies at Chennai and another in the public
sector at -aldia b Indian Oil!
The 1eriod :K==$H= sa' the commissioning of t'o more refineries in the public sector! The
refiner at /ongaigaon 'as the first e%periment in having an integrated petroleum refiner$cum$
26
petrochemicals unit! The other refiner 'as set up at #athura in :KH;! #a3or e%pansions of the
coastal refineries at #umbai, Cochin, Chennai and 7ishakhapatnam 'ere also completed during
this period! The notable feature of the capacit additions during this decade have been the
e%tensive utilization of the process design capabilities of #)s! 0ngineers India >td! and
installation of +econdar 1rocessing ,acilities to increase the production of much re(uired
kerosene, diesel and >16!
During the fifth decade 4:KH=$K=5, a small refiner of I!B ##Tpa 4#illion metric tonnes per
annum5 at Nagapatinnam 'as built in Tamil Nadu! It is based on crude from ad3oining fields! In
:KKT, a ##Tpa refiner 'as built in the 3oint sector at #angalore bet'een -1C> and Indian
Raon! This decade also sa' significant e%pansion to the capacities of the e%isting refineries,
thereb raising the refining capacit to about T; ##Tpa!
-o'ever, the production of crude oil increased to over GB million tonnes per annum in the ear
:KK=$KH! This represents onl less than BIL of countr*s re(uirement of petroleum! The
balance had to be made good b imports putting our foreign e%change to a great strain!
Considering the ever$gro'ing demand of petroleum at the rate of about =L per annum, and the
d'indling reliance on indigenous production of oil and natural gas, the 6overnment of India, in
:KK: decided to open up the e%ploration and production of oil and natural gas to the private
sector!
The ministr of petroleum invited bids from the private parties ) consortiums, in a number of
bidding rounds! Conse(uentl, as man as ;: small oil$gas fields and more than a dozen
27
e%ploration blocks 'ere a'arded to private parties, for e%ploration and production 'ork! It 'as
also decided b government to import >i(uefied Natural 6as, to meet the ever$gro'ing
re(uirement of natural gas in the countr! The government also decided to open up oil
e%ploration in the deeper continental shelf b private parties!
"ith the setting up of 1anipat Refiner in :KKK$;III, there are :H refineries operating in the
countr, :B in the public sector, one in the 3oint sector and one in the private sector, 'ith an
installed capacit of :I; million metric tonnes per annum! The ear ;IIG$I< sa' important
developments in 6overnment polic as 'ell a concerted efforts b individual companies to align
their plans and progress 'ith the free market scenario!
On the disinvestments front, the 6overnment of India successfull sold :IL of its e(uit in Oil
V Natural 6as Corporation >td!4ON6C5 and 6&I> 4India5 >td! during the ear! The
6overnment also sold its residual e(uit of ;TL in I/1 Co! >td! through public offer! 0arlier in
;II;, Indian Oil had ac(uired GG!BHL of 6overnment of India*s e(uit in I/1 through
competitive bidding process, and thereafter ac(uired another ;IL through open offer to the
public!
In the upstream sector, the 6overnment of India signed ;I contracts for oil V gas e%ploration
under the fourth round of Ne' 0%ploration >icensing 1olic 4N0>15 and eight contracts under
the second round of the Coal /ed #ethane 4C/#5 1olic! +ignificant hdrocarbon discoveries
in the blocks a'arded earlier enhanced the prospects of finding more oil V gas reserves in the
countr! ,or enhancing the countr*s oil securit, the 6overnment decided to set up B million
tonnes of strategic crude oil storage in the countr at #angalore and 7ishakhapatnam, 'hich 'ill
be built and operated b Indian Oil!
28
T0reats
To'ards end of the ear, the ma3or concern of the petroleum industr 'as the rising cost of crude
oil! "hile the uprising in gross refining margins helped improve the bottom line, Indian refiners
'ere severel impacted b the ever$rising and fluctuation price of crude oil and products in the
international market! +ince our countr is still dependent on imports to the e%tent of =IL of its
re(uirement, 'e shall continue to be sub3ect to volatilit in the international prices of oil! The
strengthening of the Indian Rupee against the U+ Dollar helped limit the impact partiall!
Concerted steps taken b the 6overnment to augment indigenous production through the N0>1
rounds, and encouragement to Indian companies in ac(uiring e(uit oil and gas abroad, are
therefore steps in the right direction!
T0e In.ian Lubricant Market
The Indian automotive lubricant market is the si/t0 largest 6arket in t0e 8orl. 'ith
;re7enues of a55ro/i6ately <#"*= billion in )==)>! It is also one of the fastest gro'ing retail
markets in India! Until :KKG, it 'as a highl regulated market 'ith a clear dominance of the
public sector! Companies like /harat 1etroleum 4/1C>5, -industan 1etroleum 4-1C>5, and
Indian Oil Corporation 4IOC5 held more than =B percent of the market share! In recent ears,
'ith the advent of the increasing number of multinationals in the Indian market there is a
gro'ing presence of private companies! Companies like Castrol, 0lf Total$,ina, 6ulf, and +hell
2
Oil have made their presence felt in the market! It has been estimated that there is a presence of
around GI companies in lube market of India! &ll the oil companies are fighting to consolidate
their position in market! The monopol of the public sector holdings no longer e%ist! #NC s 'ill ?
be able to sell their products through petrol pumps! >ubes manufactured b Reliance 1etroleum,
Castrol, 0lf, 6ulf Oil etc, are no' sold at petrol pumps! In medium to long term, W,rost ?
Sulli7an> e%pects private sector companies to have a market share of around ;B percent! In the
ne%t couple of ears, the industr is going to 'itness big changes! Retail net'orks, logistics
management, and risk management are going to be the crucial factors! The stand$alone refineries
'ill have to be merged 'ith the marketing companies, as the do not have the distribution
infrastructure to sell their products in a deregulated market! Companies like Reliance are alread
selling their products through petrol pumps! Lube Oil After Post Liberali@ation The first seeds
of competition 'ere so'n in the earl :KKI s 'hen follo'ing the liberalization of the Indian ?
econom, the government decided to open the Indian market to foreign competition! Import of
base oil, the ke ra' material, 'as de$canalized 'ith IOC losing its status as the sole canalizing
agent! 1ricing of base oil 'as deregulated in a phased manner and currentl it is no' market
determined! /asic custom dut on base oil stock 'as also reduced from a peak of HB percent to a
level of ;B percent! &ll (uantitative restrictions 'ere also removed! These developments
naturall encouraged the entr of foreign plaers on Indian shores 'ho 'ere alread facing a
slo'do'n in demand in their local markets! The coming of foreign participants created an e%cess
suppl situation in the Indian automotive lubes market, 'hich made it more difficult for the
Indian lube manufacturers to survive! Recent deregulations in the lubricant market have
promised man ne' opportunities for the private lube manufacturers! "ith the dismantling of
&dministered 1rice #echanism 4&1#5 the burden of subsidies is no' being passed on to the
3!
government! 1rivate participants 'ill also gain a presence in the Indian oil and 6as sector and
hence there 'ill be competition bet'een participants that 'ill ensure the gro'th of the sector
Market Si@e
WTotal production of automotive lubricants in India is appro%imatel H to :I percent of global
lube productionX! Unlike other countries 'here lubricant demand has 'itnessed stagnation, Wthe
Indian market has been gro'ing at appro%imatel = percent per annum for the past ; earsX!
.The public sector contributes to over TI percent of the revenues for this market! #NC s have B ?
percent market share and the remaining share is held b the unorganized sector?! The overall
Ratio of automotive) industrial lubricants is around to be TB2GB! &utomotive lubricants are
further divided into diesel lubes, petrol lubesV gas lubes! ? Diesel lubes comprise =I percent of
the market .and petrol based lubricants V gas based lubricants cover the rest! &s diesel lubes are
used b commercial vehicles, 'hich have to cover greater distances, their market share is higher!
W0ngine oil constitutes around HG percent of total sales volumes V in BH percent in terms of
market shareX! 6ear oils, transmission fluids, hdraulic brake fluids, and engine coolants
contribute to the balance! It is being estimated that b ear ;IIT the overall Indian lube oil
industr 'ill be :!; ##T1& 'hich is being a market value of more than U+ Y : /illion! &lso
India is the +eventh largest >ubricant market in the 'orldV +i%th largest automotive market in
the 'orld! The lube market 'ill 0%pected to 6ro' at a Rate Of GL in ;IIT$I=!
31
Company
32
Profile
&n energ self$sufficient India can alter the economic, political and manufacturing landscape of
the region! Its (uest for energ 'ill create ne' economic and strategic challenges, right from
mobilizing capital to engaging in subtle diplomac!
Indian Oil*s o'n performance in the financial ear ;IIT$I= 'as a case of 8e%ceeding
33
e%pectations8 'ith both turnover and profits reaching ne' highs, product sales registering a
(uantum 3ump, and the refineries as 'ell as pipelines net'ork enhancing their capacities beond
TI ##T1& and registering record throughputs! Ne' pro3ects 'orth Rs! :I,III crore 'ere put
on stream during the ear! &mong ne' businesses, the petrochemicals and natural gas verticals
and participating interests in a clutch of oil V gas assets in India and abroad has ensured
e%pansion of the upstream portfolio!
Indian Oil has ambitious investment plans of Rs! <G,;BI crore in the ne%t five ears! / ;I::$:;,
the Indian Oil 6roup, 'ith HI ##T1& refining capacit in its fold, 'ould be plaing a ke role
in realising India*s bid to emerge as an e%port$oriented hub for finished products! The pipelines
net'ork, 'hich provides strategic logistics advantage to the marketing operations, is also set to
cross the :I,III km mark in the ne%t t'o ears!
In marketing, Indian Oil is set to leverage the combined strength of over G;,III marketing touch
points, 'ith focus on hitherto untapped rural markets, non$fuel revenues and pure retailing
business! Indian Oil aspires to be &sia*s leading commercial RVD organisation in the
do'nstream hdrocarbon sector b building on its capabilities in developing innovative
technologies, products and processes, and nodal research in alternative fuels!
/eond core businesses, Indian Oil is 'orking to emerge as a ma3or plaer in the petrochemicals
business b the ear ;I::$:;, 'ith t'o petrochemical hubs shaping up at 1anipat and 1aradip! In
natural gas business, it is attempting (uantum gro'th in >N6 imports, infrastructure and
marketing, besides cit gas distribution! In the high$risk business of oil e%ploration V
production, Indian Oil*s consortium approach 'ith established plaers is paing off 'ell in terms
of e%ceptional 6overnment support and successful foras in India and abroad! Its current
interests are focused on oil e(uit and sourcing of natural gas, predominantl from &frican and
CI+ countries, b leveraging its do'nstream capabilities to form 3oint venture partnerships 'ith
34
reputed enterprises overseas!
"ith India*s energ needs pro3ected to gro' b <IL in the ne%t five ears, the future is indeed
full of promise for Indian OilF a future the G:,=II strong Indian Oil team shall build as the fuel
the dreams of over a billion of their countrmen!
Indian Oil has one of the largest petroleum marketing and distribution net'orks in &sia, 'ith
over GB,III marketing touch points! Its ubi(uitous petrol)diesel stations are located across
different terrains and regions of the Indian sub$continent! ,rom the ic heights of the -imalaas
to the sun$soaked shores of @erala, from @utch on India8s 'estern tip to @ohima in the verdant
North 0ast, Indian Oil is trul 8in ever heart, in ever part8! Indian Oil8s vast marketing
infrastructure of petrol)diesel stations, Indane 4>165 distributorships, +0R7O lubricants V
greases outlets and large volume consumer pumps are backed b bulk storage terminals and
installations, inland depots, aviation fuel stations, >16 bottling plants and lube blending plants
amongst others! The countr'ide marketing operations are coordinated b :T +tate Offices and
over :II decentralized administrative offices!
+everal landmark surves continue to rate Indian Oil as the dominant energ brand in the countr
and an enduring smbol for high (ualit petroleum products and services! The heritage and
iconic association that the brand invokes has been built over four decades of commitment to
uninterrupted suppl line of petroleum products to ever part of the countr, and uni(ue products
that cater not onl to the functional re(uirements but also the aspiration needs of millions of
customers!
Indian Oil has been ad3udged India8s No! : brand b U@$based /rand ,inance, an independent
35
consultanc that deals 'ith valuation of brands! It 'as also listed as India8s 8#ost Trusted /rand8
in the 86asoline8 categor in a Readers8 Digest $ &C Nielsen surve! In addition, Indian Oil
topped The -indu /usiness line*s EIndia8s #ost 7aluable /randsE list! -o'ever, the value of the
Indian Oil brand is not 3ust limited to its commercial role as an energ provider but straddles the
entire value chain of gamut of e%ploration V production, refining, transportation V marketing,
petrochemicals V natural gas and do'nstream marketing operations abroad! Indian Oil is a
national brand o'ned b over a billion Indians and that is a priceless value!
KE$ PEOPLE
S"No Na6e esignation
: / &shok Chairman
; Ra3u Ranganathan Compan +ecretar
G # Nene "hole time Director $ #arketing
< +C @huntia 6overnment Nominee Director
B Ra3ive @umar 6overnment Nominee Director
T 1 @ 6oal "hole time Director $ ,inance
= +hamala 6opinath Non 0%ecutive Independent Director
H +ham +aran Non 0%ecutive Independent Director
K Devang @hakhar Non 0%ecutive Independent Director
:I @ Zaira3 Non 0%ecutive Independent Director
:: Nesar &hmad Non 0%ecutive Independent Director
:; +unil @rishna Non 0%ecutive Independent Director
:G +aan Chatter3ee Non 0%ecutive Independent Director
:< 7+ Okhde "hole Time Director
36
:B +an3iv +ingh "hole Time Director
!ISION
& ma3or diversified, trans$national, integrated energ compan, 'ith national leadership and a strong
0nvironment conscience, plaing a national role in oil securit V public distribution!
37
MISSION
38
? To achieve international standards of e%cellence in all aspects of energ and diversified
business 'ith focus on customer delight through value of products and services, and cost
reduction!
? To ma%imize creation of 'ealth, value and satisfaction for the stakeholders!
? To attain leadership in developing, adopting and assimilating state$of$ the$art technolog
for competitive advantage!
? To provide technolog and services through sustained Research and Development!
? To foster a culture of participation and innovation for emploee gro'th and contribution!
? To cultivate high standards of business ethics and Total [ualit #anagement for a strong
corporate identit and brand e(uit!
? To help enrich the (ualit of life of the communit and preserve ecological balance and
heritage through a strong environment conscience!
!AL'ES(
Indian Oil nurtures the core values of Care, Innovation, 1assion V Trust across the organization
in order to deliver value to its stakeholders!
Care Stands for
• Concern
• 0mpath
• Understanding
• Co$operation
3
• 0mpo'erment
Inno7ation Stands for
• Creativit
• &bilit to learn
• ,le%ibilit
• Change
Passion Stands for
• Commitment
• Dedication
• 1ride
• Inspiration
• O'nership
• Deal V Dest
Trust Stands for
• Delivered promises
4!
• Reliabilit
• Dependabilit
• Integrit
• Truthfulness
• Transparenc
ObAecti7es
• To serve the national interests in oil and related sectors in accordance and consistent 'ith
6overnment policies!
• To ensure maintenance of continuous and smooth supplies of petroleum products b 'a
of crude oil refining, transportation and marketing activities and to provide appropriate
assistance to consumers to conserve and use petroleum products efficientl!
• To enhance the countr8s self$sufficienc in crude oil refining and build e%pertise in
laing of crude oil and petroleum product pipelines!
• To further enhance marketing infrastructure and reseller net'ork for providing assured
service to customers throughout the countr!
• To create a strong research V development base in refiner processes, product
41
formulations, pipeline transportation and alternative fuels 'ith a vie' to
minimizing)eliminating imports and to have ne%t generation products!
• To optimize utilization of refining capacit and ma%imize distillate ield and gross
refining margin!
• To ma%imize utilization of the e%isting facilities for improving efficienc and increasing
productivit!
• To minimize fuel consumption and hdrocarbon loss in refineries and stock loss in
marketing operations to effect energ conservation!
• To earn a reasonable rate of return on investment!
• To avail of all viable opportunities, both national and global, arising out of the
6overnment of India*s polic of liberalization and reforms!
• To achieve higher gro'th through mergers, ac(uisitions, integration and diversification
b harnessing ne' business opportunities in oil e%ploration V production,
petrochemicals, natural gas and do'nstream opportunities overseas!
• To inculcate strong \core values* among the emploees and continuousl update skill sets
for full e%ploitation of the ne' business opportunities!
• To develop operational snergies 'ith subsidiaries and 3oint ventures and continuousl
engage across the hdrocarbon value chain for the benefit of societ at large!
42
,inancial ObAecti7es
• To ensure ade(uate return on the capital emploed and maintain a reasonable annual
dividend on e(uit capital!
• To ensure ma%imum econom in e%penditure!
• To manage and operate all facilities in an efficient manner to generate ade(uate internal
resources to meet revenue cost and re(uirements for pro3ect investment, 'ithout
budgetar support!
• To develop long$term corporate plans to provide for ade(uate gro'th of the Corporation*s
business!
• To reduce the cost of production of petroleum products b means of sstematic cost
control measures and thereb sustain market leadership through cost competitiveness!
• To complete all planned pro3ects 'ithin the scheduled time and approved cost!
Obligations
• To'ards customers and dealers2 $ To provide prompt, courteous and efficient service and
(ualit products at competitive prices!
• To'ards suppliers2 $ To ensure prompt dealings 'ith integrit, impartialit and courtes
43
and help promote ancillar industries!
• To'ards emploees2 $ To develop their capabilities and facilitate their advancement
through appropriate training and career planning! To have fair dealings 'ith recognized
representatives of emploees in pursuance of health industrial relations practices and
sound personnel policies!
• To'ards communit2 $ To develop techno$economicall viable and environment$friendl
products! To maintain the highest standards in respect of safet, environment protection
and occupational health at all production units!
• To'ards Defence +ervices2 $ To maintain ade(uate supplies to Defence and other 1ara$
militar services during normal as 'ell as emergenc situations!
Pro.uct folio
Indian Oil is the largest commercial enterprise in the countr! it is the flagship corporate of the
Indian Nation! /esides having a dominant market share, Indian Oil is 'idel recognized as
India*s dominant energ brand and customers perceive Indian Oil as a reliable smbol for high
(ualit products and services!
/enchmarking [ualit, [uantit and +ervice to 'orld$class standards is a philosoph that Indian
Oil adheres to ensure that customers get a trul global e%perience in India! Our continued
44
emphasis is on providing fuel management solutions to customers 'ho can then benefit from our
e%pertise in efficient sourcing and least cost supplies keeping in mind their usage patterns and
inventor management!
Indian Oil is a heritage and iconic brand at one level and a contemporar, global brand at another
level! "hile (ualit, reliabilit and service remains the core benefits to our customers, our
stringent checks are built into operating sstems, at ever level ensuring the trust of over a
billion Indians over the last four decades!
Our Retail /rand template of Utra Care 4Urban5, +'agat 4-igh'a5 and @isan +eva @endras
4Rural5 are 'idel recognized as pioneering brands in the petroleum retail segment! Indian Oil*s
leadership e%tends to its energ brands $ Indane >16, SERO >ubricants, &uto gas >16, Utra
1remium /randed 1etrol, Utra #ile /randed Diesel, Utra 1o'er ,leet Card, Indian Oil &viation
and Utra Re'ards cash customer loalt programme!
1roducts
• Indane 6as
• &uto 6as
• Natural 6as
• 1etrol)6asoline
• Diesel)6as oil
45
• &T,)Zet ,uel
• SERO lubricants V greases
• #arine ,uels V >ubricants
• @erosene
• /ulk)Industrial ,uels
• /itumen
• 1etrochemicals
• +pecial 1roducts
• Crude Oil
T0e fa6ous 1ran.s un.er In.ian Oil
46
Indian Oil8s branded fuels Utra#ile and Utra1remium have made a significant impact in the
petroleum retail market! Utra#ile, Indian Oil8s ne' generation -igh +peed Diesel 'ith 'orld$
class additives has taken a leadership position in the market!
The launch of premium fuels $ Utra1remium and Utra#ile 4originall IOC 1remium and Diesel
+uper respectivel5, marks a ne' beginning for Indian Oil and its customers! Utra1remium is, in
fact, the onl petrol in India 'ith K: Octane and doped 'ith #ultifunctional &dditives! The
maiden launch of these branded fuels took place in Delhi on +ept! ;<, ;II;! +ubse(uentl, Utra
1remium sales have been e%tended to ;II cities and =BI petrol V diesel stations, and Utra#ile to
HBI cities and :=BI petrol and diesel stations b the end of!
47
SER!O is India8s largest selling lubricant brand! +0R7O ranges of lubricants en3o approvals
from ma3or Original 0(uipment #anufacturers 4O0#s5 including ne' generation cars! K,III
Retail Outlets and a countr'ide net'ork of +0R7O ++ls and ++&s /azaar traders offer servo
range of lubricants to customers!
The Ser7o range of lubricants is used in almost ever application covering automotive, industrial
and marine sectors! Ser7o range of lubricants is fast emerging as a 6lobal /rand! Ser7o has been
designated as a su5erbran." Ser7o has genuine oil tie ups 'ith a 'ide range of companies like
-undai, #aruti, /a3a3, >ancer! &nil @umble, the ever dependable sporting icon is ser7o /rand
&mbassador!
Developed e%clusivel at Indian Oil8s 'orld$class RVD Centre at ,aridabad, there is a Ser7o
lubricant for virtuall ever single application! "ith over <;L market share and <BI grades, the
countr8s leading +ervo brand lubricants from Indian Oil are sold through over H,:II Indian Oil
petrol)diesel stations, over :,GII +ervo +hops and a countr'ide net'ork of bazaar traders!
Indian Oil Indane >16as is used in <I #illion homes as cooking fuel and commands over <HL
market share in India! Indane >16as is marketed through a net'ork of <GBI Indane distributors!
"idel used in commercial sectors like industries, hotels V restaurants, medical labs, etc! H=
Indane /ottling 1lants are spread across the countr 'ith a combined bottling capacit of G!==
48
##T1&! Ne' and convenient B kg Indane >16as clinders introduced in rural and hill regions
for 'ider use b economicall 'eaker sections! Indian Oil8s auto >16 brand &utogas is the
leader in the segment! #arketed through a net'ork <H stations out of an industr total of :IG
&uto >16 Dispensing +tations!
&utogas 4>165 has been introduced in -derabad, /angalore and #umbai markets! This
alternative fuel is a good business proposition in the long term, and Indian Oil intends to further
e%pand its marketing in a big 'a!
4
SER!OBPRESS
+0R7OU1R0++ vehicle servicing centers are one$stop shops for (uick, eas and convenient auto
care, offering a refreshing e%perience to motorists! Opened in convenient locations like malls,
petrol pumps or as stand$alone units, +0R7OU1R0++ stations have facilities for engine oil
change, tre V batter check$ups, air$conditioner service, vacuum cleaning, perfuming, upholster
cleaning, polishing, lamination installation, etc!, besides replacement of minor parts for t'o and
four$'heeler vehicles!
Ser7ices(
Indian Oil has 'ide$ranging e%pertise in setting up and operating 6reenfield refineries and
/ro'nfield e%pansions! It has pioneered pipeline transportation kno' ho' in India, and has over
four decades of e%perience in putting up marketing infrastructure across the sub$continent, to
reach petroleum products to millions of people ever da! /acked b cutting edge RVD that
offers innovative products, technologies and services covering the entire gamut of do'nstream
operations!
5!
Indian Oil has been lending its e%pertise for nearl t'o decades to various countries in several
areas of refining, marketing, transportation, training and RVD! These include +ri >anka, @u'ait,
/ahrain, Ira(, &bu Dhabi, Tanzania, 0thiopia, &lgeria, Nigeria, Nepal, /hutan, #aldives,
#alasia and Dambia!
Indian Oil8s capabilities in the do'nstream sector of operations in the oil sector includeF
Technical and Consultanc +ervices, Operation V #aintenance, Techno$0conomic
feasibilit)special studies, Turnaround #aintenance M planning, monitoring V e%ecution,
Inspection, [ualit Control2 benchmarking, +hipping and Commercial, >ogistics, Research V
Development, +afet and Industrial hgiene, [ualit &uditing) #anagement, #aterials
#anagement, Training! In all this and more, Indian Oil looks for'ard to sharing its e%pertise
'orld'ide!
• Refining
• 1ipelines
• #arketing
• Technolog >icensing
• Training
Projects :
*n#ian Oil accor#s ,ig, $riorit) to timel) $ro4ect im$lementation% 5,e #etails of
various ma4or $ro4ects are as follo.s6
51
Completed Projects :
&iesel 7)#rotreating an# Solvent &e8.a9ing units at &igboi :e'ner)%
;iramgam < /o)ali cru#e oil $i$eline (148 =m+%
/o)ali8;iramgam8Si#,$ur $ro#uct $i$eline (1!2 =m+%
/uru=s,etra8
or=ee81a4ibaba# $ro#uct $i$eline (167 =m+%
LP> bottling $lants at eig,t locations%
Port terminal at Mauritius .it, a tan=age of 15%5 5M5%
Ongoing Project :
• Linear 2l=)l Ben?ene unit at /o)ali :e'ner)%
• &iesel 7)#rotreating unit at Mat,ura :e'ner)%
• MS @ualit) im$rovement $ro4ects at Mat,ura- /o)ali an# 7al#ia
re'neries%
• Para9)leneAPuri'e# 5ere$,t,allic 2ci# unit at Pani$at :e'ner)%
• Pani$at :e'ner) e9$ansion from 6 MM5 $er annum to 12 MM5 $er
annum%
• >rassroots re'ner) at Para#i$
• Mun#ra8/an#la cru#e oil $i$eline (73 =m+ an# conversion of t,e /an#la <
Pani$at section of /BPL to cru#e oil service%
• Para#i$ < 7al#ia cru#e oil $i$eline (353 =m+%
• Si#,$ur < Sanganer $ro#uct $i$eline (5!6 =m+%
• ",ennai < 5ric,) < Ma#urai $ro#uct $i$eline (683 =m+%
• "a$acit) augmentation of LP> bottling $lants at ",engal$et an#
5i=ri=alan%
52
• 1a$,t,a transfer $i$eline from 2saoti to 15P"- Bari#aba#%
• 7)#rocrac=er Laborator) < P,ase8** < at :C& "entre%
&istory
Indian Oil Corporation 4IOC5, established in :KBK, The Indian Oil Corporation 'as formed in
:KT<, 'ith the merger of Indian Refineries >td! Recentl Indian Oil Corp 4IOC5 has raised YBII
million b selling :I$ear dollar$denominated bonds, its fourth such issue overseas in the last
three and a half ears!
IOC is engaged in e%ploration and production and marketing of oil! It is India*s largest compan
sales 'ise 'ith a turnover of Rs ;,<=,<=K crore 4Y BK!;; billion5!
IOC has subsidiaries namel Indian oil Technologies, Chennai 1etroleum Corporation,
/ongaigaon Refiner V 1etrochemicals, Indian Oil 4#auritius5 and >anka IOC!
Out :K refineries, IOC o'ns and operates :I 'ith a combined capacit of capacit of TI!;
million metric tonnes per annum 4##T1&5, i!e! :!; million barrels per da! It has :TT bulk
storage terminals and depots, :I:$aviation fuel station and HK Indane bottling plants!
The refining ma3or has a countr'ide net'ork of petrol and disel stations 'ith :=,TII retail
outlets! Its Indane cooking gas net'ork has apresence in BI million households through its
distribution net'ork of B,III distributors!
Milestones
53
IOC is the highest ranked Indian compan In ,ortune \6lobal BII* list!
It is :Hth largest petroleum compan in the 'orld!
It is India*s most trusted fuel pump brand as per the surve conducted b 0T brand e(uit and
&C Neilsen!
It has received National &'ard for WInnovation in Implementing /usiness Continuit for +&1R)G
0nvironment Wfrom the 6overnment of India!
Outlook
IOC and 6&I> have signed a memorandum of understanding for cooperation in setting up an Rs
:I,III crore petroleum plants at /arauni in /ihar!
Indian Oil launched its lubricant brand +ervo in Oman! +ervo has BII different grades and :;II
varied formulations!
• In ;IIG, its 6u3arat Refiner 'as a'arded the E/est of allE
Grou5 co65anies an. Aoint 7entures
• Indian Oil 4#auritius5 >td!
• >anka IOC 1>C M 6roup compan for retail and storage operations in +ri >anka! It is
listed in the Colombo +tock 0%change! It 'as locked into a bitter subsid pament
dispute 'ith +ri >anka8s 6overnment, 'hich has since been resolved!
• IOC #iddle 0ast ,D0
54
• Chennai 1etroleum Corporation >imited
• 6reen 6as >td! M a 3oint venture 'ith 6as &uthorit of India >td! for cit'ide gas
distribution net'orks!
• Indo Cat 1vt! >td!, 'ith Intercat, U+&, for manufacturing :B,III tons per annum of ,CC
4fluidized cataltic cracking5 catalsts V additives in India!
• Indian Oil M CR0D& /iofuels >td!, a 3oint venture 'ith Chhattisgarh government for
production and marketing of /io$fuels!
• Numerous e%ploration and production ventures 'ith Oil India >td!, Oil and Natural 6as
Corporation
• India +nthetic Rubber >td $ & 3oint venture bet'een IOC>, Tai'an +nthetic Rubber
Corporation4Tai'an5 and #arubeni4Zapan5
• 10TRON&+ 4#alasia5 >td
International rankings
• Indian Oil is the highest ranked Indian compan in the ,ortune 6lobal BII listing, at the
KTth position in ;I:<! It is also the :Hth largest petroleum compan in the 'orld and the
No! : petroleum trading compan among the national oil companies in the &sia$1acific
region!
55
• IOC> 'as featured on the ;I:: ,orbes 6lobal ;III at position ;<G!
• It is the fifth most valued brand in India according to an annual surve conducted b
/rand ,inance and The 0conomic Times in ;I:I!
E65loyees
&s on G: #arch ;I:G, the compan had G<,IH< emploees, out of 'hich ;T<G 'ere 'omen
4=!HL5! Its 'orkforce includes :<,KH: officers! The attrition rate in Indian Oil is around :!BLThe
Compan incurred INR =H billion on emploee benefits during the ,] ;I:;$:G!
Concerns
Indian Oil Corporation >imited, b virtue of being the largest 1ublic sector Oil Compan has
borne the largest share of subsid burden due to 6overnment restriction on 1ricing of common
fuels like Diesel Oil, @erosene and >16!
The current formula of making the marketing compan share
Grd of the subsid burden 4 the
upstream and the 6overnment share the rest e(uall5 forces the corporation to cross subsidize
price regulated fuels 'ith other fuels that are not regulated like 6asoline, ,uel oil, &viation
Turbine ,uel and >ubricants! This has rendered the corporation8s fuels and >ubricant segments
uncompetitive 'ith respect to private marketers 'ho are delving into the open priced fuel)
>ubricants markets in an aggressive 'a!
56
The subsid burden 'hich 'ent over Rs! GII /illion in ;I:: has thereb handicapped the public
sector oil companies as a 'hole and Indian Oil in particular, b virtue of its large share of the
energ market!
Indian Oil has tried to come out of the disadvantageous position it finds itself vis$a$vis the
private companies like Total Oil India >imited and Reliance Industries, b taking the fight to
ne'er sectors 'here private plaers are dominant like 1etrochemicals and <ernative ,uels!
1etrochemicals are Indian Oil8s most profitable revenue division currentl and massive
investments in the recent ears have been made in 1etrochemical comple%es at 1anipat refiner
and the upcoming 1aradip refiner!
Despite substantial 'ell directed efforts, the corporation still faces significant challenges in
maintaining its current dominance once the imminent free pricing is introduced, although the
corporation8s vast infrastructure shall also pla to its advantage in such a scenario!
Listing an. s0are0ol.ing
Indian Oil8s e(uit shares are listed on the /omba +tock 0%change and National +tock
0%change of India!
57
&s on G: December ;I:G, the promoters 6overnment of India held appro%! =KL of the shares in
Indian Oil! ON6C held appro%! KL of the shares! Remaining :;L of the shares are held b
others!
S0are0ol.ers Cas on *#DecD)=#*E S0are0ol.ing
1romoter 6roup 46overnment of India5 =H!K;L
private single bod ;I!:GL
Insurance Companies I:!BIL
Individual shareholders I!HGL
Trusts I!<;L
,oreign Institutional Investors 4,II5 I!:GL
Others I!I=L
Total :II!IL
Marketing
The marketing of petroleum products in India toda is dominated b the four state$o'ned oil
companies! Their market shares as on G:st #arch ;II: 'ere as follo's2
J Indian Oil Corporation BB L appro%!J
J /harat 1etroleum Corporation ;: L appro%!J
J -industan 1etroleum Corporation :K!B L appro%!J
J I/1 Compan <!B L appro%!J
MO:AR PLA$ER PRO,ILE
58
#" &in.ustan 5etroleu6
-1C> 4#arket +hare$ GIL5
-1C> is a 6overnment of India 0nterprise 'ith a Navratna +tatus, and a ,ortune BII and ,orbes
;III compan, 'ith an annual turnover of Rs! :,G;,T=I Crores and sales)income from operations
of Rs :,<G,GKT Crores 4U+Y G:,B<T #illions5 during ,] ;I::$:;, having about GIL #arketing
share in India among 1+Us and a strong market infrastructure! -1C>8s Crude Thruput and
#arket +ales 4including e%ports5 are :<!=B #illion #etric Tonnes 4##T5 and ;=!IG ##T
respectivel in the same period!
-1C> operates ; ma3or refineries producing a 'ide variet of petroleum fuels V specialties, one
in #umbai 4"est Coast5 of T!B #illion #etric Tonnes 1er &nnum 4##T1&5 capacit and the
other in 7ishakhapatnam, 40ast Coast5 'ith a capacit of H!G ##T1&! -1C> holds an e(uit
stake of :T!KBL in #angalore Refiner V 1etrochemicals >imited, a state$of the$art
refiner at #angalore 'ith a capacit of K ##T1&! In addition, -1C> is constructing a K
##T1& refiner
at /athinda, in the state of 1un3ab, as a Zoint venture 'ith #ittal 0nerg Investments 1te! >td!
-1C> also o'ns and operates the largest >ube Refiner in the India producing >ube /ase Oils of
international standards, 'ith a capacit of GGB T#T! This >ube Refiner accounts for over <IL
of the India8s total >ube /ase Oil production!
-1C>8s vast marketing net'ork consists of :G Donal offices in ma3or cities and :I: Regional
5
Offices facilitated b a +uppl V Distribution infrastructure comprising Terminals, 1ipeline
net'orks, &viation +ervice +tations, >16 /ottling 1lants, Inland Rela Depots V Retail Outlets,
>ube and >16 Distributorships! -1C>, over the ears, has moved from strength to strength on
all fronts! The refining capacit steadil increased from B!B ##T1& in :KH<)HB to :<!H ##T1&
presentl! On the financial front, the turnover has gro'n from Rs! ;TH= Crores in :KH<$HB to an
impressive Rs :, G;,T=I Crores in ,] ;I::$:;!
)" 10arat 5etroleu6
BPCL (M!"#$ %&!#)83!D+
/harat 1etroleum offers a full range of &utomotive 0ngine Oils, 6ear Oils, Transmission oils,
+pecialt Oils and 6reases! The correct usage of these >ubricants of right (ualit ensures
prolonged and trouble free vehicle operation, providing ma%imum benefits to the users of present
da modern vehicles! In line 'ith the economic liberalization in India, >ubricants 'as the first
do'nstream 1etroleum product to be totall deregulated 'ith effect from :KK:! +ince then a large
number of plaers $National, #NCs as 'ell as 6lobal 1laers $ have entered the Indian
>ubricants market! Despite operating in a totall competitive environment, /1C>8s >ubricants
+/U has been registering a gro'th in lubricant sales continuousl over the past couple of
ears! In ;II=$IH, an overall gro'th of :IL has been registered, 'ith a health turnover of Rs!
:THI crores 4appro% U+D GBI million5! In :KKH, 'e re$launched our >ubricants in ne' attractive
6!
packs, mainl in &utomotive categor 'ith three ma3or brands depicting each segment$ #ak for
Diesel 0ngine oils, &utomol for 1etrol 0ngine oils and 6lide for T'o)Three 'heelers4mainl ;T
then5! In the ear ;IIG, 'e decided to go for Umbrella /rand$#&@ >ubricants, in subse(uent
ears, branded all our industrial grades 'ith #&@!
Su55ly C0ain Manage6ent
Indian Oil /lending >imited 4IO/>5 is full o'ned subsidiar of Indian Oil, engaged in
the manufacturing of lubricants and greases and catering to the Defence, rail'as, state transport,
aviation dept! etc &t IO/>, blending of lubricants 4mi%ing of base oil 'ith additives5 is done!
&fter blending of lubricants, then filling of barrels, bulk 'ork has to be done and dispatched to
+C,1! +C,1 then moves the lube to Dealer Operated 6odo'n 4D,O>65 and Carring V
,or'arding &gent 4C,&5! &fter that product id dispatched to the follo'ing2
• +ervo +tockiest &utomotive 4++&5
• +ervo +tockiest Industrial 4++I5
Direct Institutional Customers 4such as Defence, Rail'as, 6ovt! customers and large industrial
customer! ++& deals 'ith the sales and promotion of product*s supplies products in the market!
In "est /engal >ubricant is manufactured from /ase Oil at G places2
• 1aharpur 4>ube ,ield5, @olkata
• /udge /udge
• +C,1 $ #alda
/arrels of +0R7O are shipped from 1aharpur, >ube ,ieldF /uckets of +0R7O are shipped
61
from /udge /udge and Cartons and +mall 1acks of +0R7O lubricants are shipped from +C,1
#alda!
&ll these >ubricants are stored at C,& or CN, kno'n as Carring and ,or'arding &gent!
C,A2 $ &n third part, 'ho is engaged in providing an service, either directl or indirectl,
concerned 'ith the clearing and for'arding operations in an manner to an other person and
includes a consignment agent! It is considered as an important asset of a compan in the overall
compan8s marketing V positioning strateg and can serve as a ke differentiator! Channel
e%perience strongl affects end user*s overall perception of the brand8s image!
R! N! /! Udog, #ehndigan3, and >ink Road N-$GI o'n C,& 1atna of +0R7O lubricants!
SSA CSer7o Stockiest Auto6oti7eE
C,& suppl the +ervo products to ++&! No' it is the 3ob of ++& to suppl various +ervo products
to various +ervo Upress, /azaar traders, +ervo shops, Retail Outlet, ,leet transport and O0#*+ at
district and block level!
62
RESEARCH
METHODOLOGY
63
RESEARC& MET&OOLOG$
The research methodolog is the specification of methods and procedures for ac(uiring the
needed data to solve the problem! -ere for the market understanding of servo <T, the research
method adopted is e%plorator in nature!
E/5loratory researc0 6et0o.
The main focus for doing e%plorator research is to gain insights and familiarit for future
product! -ere the data can be both (ualitative and (uantitative! The main problem in e%plorator
research is there 'ill be no earlier studies to refer!
RESEARC& T$PE
The research is (ualitative and (uantitative in nature! It is a structured, standardized and
(uestionnaire based face$to$face intervie'!
SO'RCE O, ATA
64
The source of data is primar! The responds 'ere collected from the samples on a face Mto$face
intervie' tpe!
PRIMAR$ ATA
The primar data refers to the information obtained first handed b the researcher for the specific
purpose of the stud! -ere the primar data 'as collected b the method of surve using a
structured (uestionnaire form !Data has been collected from O0#s in the 1atna area!
RESEARC& INSTR'MENT
+tructured (uestionnaire 'as generated using open$ended (uestions!
SAMPLICNG 'NIT
The sampling unit is that of W'ho is to be surveedX! I have surveed O0#s in 1atna!
Sa65le Si@e(
The sample size is ;I !'hich includes O0#s in 1atna!
65
ata analysis
66
?
inter5retation
#" 80ic0 co65anyFs lubricant you use for your 7e0icles 3
INDIAN OIL 45%
CASTROL OIL 30%
BP OIL 15%
OTHERS 10%
67
'()
*+)
,()
,+)
I-.I- OIL
C%$!OL OIL
BP OIL
O$&#!%
Inter5retation2 according to the various data 'e find that <BL vehicle o'ner used IOC> for
there vehicles !because the think it is the best lube in the market!
)" On 80at basis you 5urc0ase t0e lube 5ro.ucts3
"OMP21E *M2>F 35D
P:*"F 2!D
GH2L*5E 3!D
O57F:S 15D
68
Inter5retation (most of people purchase lube product on the basis of compan image! because
the think if image is good in the market the product is also effective for their vehicle !
*"80at rate you gi7e t0e 5ro.uct on t0e basis of 4uality 3
EXCELLENT 40%
GOOD 35%
AVERAGE 15%
POOR 10%
6
Inter5retation( there are different rate given b the people 'ho use the lube product! most of the
people give the e%cellent rate for the (ualit of IOC> lube products!
+" Is t0e 5rice of IOCL lube 5ro.uct is reasonable for
custo6er 3
res5onse G
$es H=
No )=
7!
1st Gtr
no
Inter5retation( according to the m surve report most of customers satisfied 'ith the price!
The think the price of IOC> lube is reasonable for them!
-"Perce5tion about IOC CSER!OE bran. in ter6s of ser7ice"
6ood ;I
0%cellent BI
+atisfactor ;I
Need improvement :I
71
ser/ice perception
goo#
ec9ellent
satisfactor)
nee# im$rovement
Inter5retation( according to the m surve report BILpeeples perception about IOC> lube is
e%cellent! but some people also 'ant improvement in the IOC> lube products!
I"&o8 long you associate. 8it0 t0e IOCL3
NO of dealer ]ear
:II :B
=B :I
;B IB
72
1!!
75
25
Inter5retation( according to m surve result 'hich is done on the different dealers in patna
BIL dealers are associated 'ith the IOC> for their lube products !
J"20at are a7erage sales of IOCL lube in a 6ont0 3
No of dealers +ale 4in lit!5
:II :BII
=B :III
;B =II
73
%ales
1!! #ealer
75 #ealer
25 #ealer
Inter5retation( according to m surve report most of dealers sas that the average in a month
is appro% :BII lit! overall it it is good sales in a month 'hen compare 'ith the other
competitors!
H"20o are t0e 6ain co65etitors of IOCL in lube 6arket 3
Name of compan L
-1C> ;I
/1C> :I
C&+TRO> TI
0>, :I
74
COMP#$i$O!
7P"L
BP"L
"2S5:OL
FLB
Inter5retation( according to m surve Castrol is one of the ma3or competitor of IOC> in the
lube market in india !rest of compan*s has no ma3or effect on the market !
K" Are you satisfie. 8it0 t0e tec0ni4ue 80ic0 is use. in t0e
ser7o lube 5ro.ucts 3
Respondent L
]es HI
No ;I
75
8!D
2!D
)es no
Inter5retation2 according to the m surve report HIL of m sample size are satisfied 'ith the
techni(ue 'hich is used in the IOC> lube products!
#="20at e/tra facilities are 5ro7i.e. by co65any .ealers 3
Cash discount ;IL
Dealer*s discount ;BL
Transportation BIL
others IBL
76
e0tra pro1t
cas, #iscount
#ealers #iscount
ot,ers
trans$ortation
Inter5retation( there are different kind of e%tra profit 'hich is provided b the IOC> for there
dealers! these are cash discount, dealers discount, transportation and other things! according to
the m surve IOC> provided transportation facilit mostl!
77
,ININGS
?
S'GGESTION
,in.ings
• &ccording to the various data, 'e find that <BL vehicle o'ner used IOC> for their
vehicles !because the think it is the best lube in the market!
• #ost of people purchase lube product based on compan image! /ecause the think if
image is good in the market the product is also effective for their vehicle!
• #ost of the people give the e%cellent rate for the (ualit of IOC> lube products!
78
• &ccording to m surve result, 'hich is done on the different dealers in 1atna BIL,
dealers are associated 'ith the IOC> for their lube products!
• &ccording to m surve report most of dealers sas that the average in a month is appro%
:BII lit! Overall it is good sales in a month 'hen compare 'ith the other competitors!
• &ccording to m surve Castrol is one of the ma3or competitor of IOC> in the lube
market in India !rest of companies has no ma3or effect on the market!
• &ccording to the surve report, HIL of m sample size is satisfied 'ith the techni(ue,
'hich is used in the IOC> lube products!
• There is different kind of e%tra profit, 'hich is provided b the IOC> for their dealers!
These are cash discount, dealers* discount, transportation and other things! &ccording to
the surve, IOC> provided transportation facilit mostl!
• &ccording to the surve, report most of customers satisfied 'ith the price! The think the
price of IOC> lube is reasonable for them!
• &ccording to the surve report BIL, peeples perception about IOC> lube is e%cellent!
-o'ever, some people also 'ant improvement in the IOC> lube products!
S'GGESTIONS ? RECOMMENATIONS
#" The companies should keep pace 'ith time and introduce ne' (ualit and improved
service time to time!
)" Resources should be properl utilized to reduce the prices!
*" Commission and margin should also be given to small dealers and retailers!
+" +ales promotion techni(ues should be used fre(uentl!
7
-" 1rices should be stable and less variable! 1rice differentiation should be removed!
I" The person should be trained b the compan to provide customer satisfaction and to
develop public relation!
J" The companies to penetrate the interior market should use effective sales force!
H" +eason discounts on festivals should be given!
K" Companies should take measures to develop ne' market!
Conclusion(
5raining ,as $la)e# a ver) im$ortant role in ,el$ing *n#ian Oil to reac, t,e
comman#ing ,eig,ts of $erformance% 2n) training .oul# be consi#ere#
successful onl) .,en t,e =no.le#ge gaine# b) t,e $artici$ants is transferre#
to t,e 4ob $erformance% *n a##ition- *n#ian Oil is been ver) successful in
#oing t,at%
*n#ian Oil ,as a ver) strong base of ,uman resource #evelo$ment an# training- it
,as $ercolate# rig,t form t,e to$ to t,e bottom levels- an# t,is ,a# $la)e# a role in
8!
more s)stematic organi?ation #evelo$ment% 5,e training $rogrammes ,ave ,el$e#
t,eir em$lo)ees to im$rove t,eir s=ill an# eIcienc) because of .,ic, t,e) are able
to un#erta=e ne. c,allenges in t,eir .or=% 5,e training an# #evelo$ment
$rogrammes ,el# in *n#ian Oil ,el$e# t,eir em$lo)ees to =no. t,eir strengt, an#
.ea=nesses an# ,el$e# t,em to .or= on t,eir .ea=nesses%
LIMITATIONS
#" The report had to be completed in a selected area 'ithin a specified time limit!
)" The facts V ,igures perceived in this pro3ect report are based on the data collected
from the respondents! -ence their might be chance of having a little difference from
actual!
*" +ample size 'as ver small as compared to the population of 1atna!
+" 1eople did not give full response V there is a bias in some personnel (uestions!
81
-" Data from the secondar source ma have some errors V their ob3ectives ma not be
relevant 'ith the present pro3ect!
1I1LIOGRAP&$
• 1hilip @otler :Gth 0dition, 1earson 1rentice -all ^, ,ifth Impression, ;I:;
• #alhotra N! @!, ;I:;, 1rentice -all India =
th
0dition, W#arketing ResearchX
• Ra3an +a%ena Tata #c 6ro' M -ill 0ducation ;I::4Director, + 1 Zain institute of mgmt! V
Research, #umbai5!
• '''!iocl!co!in
• http2))'''!cheme%cil!gov!in)Indian+cenario!asp%
• http2))indiatransportportal!com);I:IB)huge$scope$for$specialt$lubricant$in$indian$market)
• http2))blogs!klinegroup!com);I:IG)Gindia_lubricant_
• http2))researchandmarkets)automotive)india
• 1ressconference_;HIB:;_Indian_Oil_;H)B):;
• http2))iocl)sevo)lubricantsandgreases)
• IndianOil_lube_product_sheet
• Investor_presentation_Zune_;I::_Indian_Oil_Corporation_>imited
• '''!slideshare!net
• '''!scribd!com )assignment)lubes)
82
A55en.i/
Luestionnaire(
.#L#!2% 34#%$IO--I!#%
83
12MF68 JJJJJJJJJJJJJJJJJJ%% &25F
JJJJJJJJJJJJJJJ%
EF2: OB FS52BL*S7MF15 6
JJJJJJJJJJJJJJJJJJJJJJJJJJJ%
1% &ealing .it, follo.ing com$an) of oilK
"om$an) JJJJJJJJJJJJJJ )ear
JJJJJJJJJJJJJJJJJJJ%
2% 2verage salesAmont,K
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3% 7o. man) or#ers #o )ou or#er in a mont, K
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87
doc_124639754.docx
Marketing strategy for lubricants
1
In this period of globalization, factors like economic crises, differences in standards of living,
imbalances in income distribution, environmental degradation, political unrest and a plethora of
other social, economic and technological problems tend to increase the challenges and threats
faced b companies and nations! "hile these factors can be threats to a business, marketers tr
continuousl to convert them into opportunities! Thus, marketing plas a significant role in
successfull running a business! #arketing has become an inherent part of our lives and
permeates ever aspects of our da$ to$da e%istence! &ctivities such as 'atching television,
listening to the radio, reading the ne's paper, buing grocer items$ the are all dependent on
marketing! #arketing focuses on satisfing human and social needs and 'ants, and helps
companies transform private and social needs into profitabilit business opportunities #arketers
need to deliver value to their customers! The also need to communicate to their customers the
value the are delivering! Complete customer satisfaction is achieved b understanding customer
re(uirements and delivering superior (ualit goods and services! Companies must provide the
customers 'ith a continuous flo' of ne' ides)offers and constantl enhance their service levels
to build up satisfaction among customers !& marketing program starts 'ith idea generation for a
product and ends onl 'hen customer*s 'ants have been completel satisfied! It might run 'ell
beond the sale of the product, to ensure customer satisfaction and encourage repeat business!
.STRATEGIC MARKETING PLANNING
+trategic market planning is the process of communicating and sharing data bet'een different
departments of an organization to collectivel formulate future strategies and implement them
'ith ma%imum efficienc! +trateg formulation helps the decision makers of the organization to
2
proactivel respond to needs of the market and thus sta ahead of companies #arketing strateg
for lubricants among ,leet o'ner segment!
CORPORATE AN I!ISIONAL STRATEGIC PLANNING
+trategic planning involves framing corporate and divisional strategies! -o'ever, prior to that
the compan has to identif its position in the market! Toda firms face global competition! To
sustain itself in a global market a compan has to adapt to international standards! The strategic
planning process ma suffer, if there is an increased resistance to change 'ithin the organization!
To deal 'ith such situation, Igor &n off suggested a .managed$resistance or accordion approach?
in 'hich a firm can emplo coercive strateg 'hen there is a pressing need for change!
MARKETING PROCESS
The marketing process of a compan tpicall involve identifing the viable and potential
marketing opportunities in the environment, developing strategies to efficienc utilize these
opportunities, evolving suitable marketing strategies and supervising the implementation of these
marketing efforts! Traditionall, marketing has been done based on production concept, 'here a
product is made and pushed into the market 'ithout considering the consumer perception and
attitudes! /ut over the ears, the marketing process has transformed into an integrated marketing
approach, 'hich is no' largel being emploed b most organizations across the globe! The firm
must therefore concentrate on formulating strategies to attract customers based on their value
perceptions"
3
STEPS IN PLANNING PROCESS
The steps in the marketing planning process are, analzing the marketing opportunities,
developing marketing strategies, planning marketing programs, and managing effort!
#" ANAL$%ING T&E MARKETING OPP'RT'NITIES(
0ver compan has to analze its marketing opportunities based on its area of significance,
position, and sales in the market! ,or e%ample, let us sa there is a huge #arketing strateg for
lubricants among ,leet o'ner segment market potential for micro mobile phones! "here a small
chip can be placed inside the ear and one can hear and speak through it! #arket research has to
be conducted to estimate the market potential for the product, and the segments to be targeted
and to search for appropriate channels and distributors! The compan has focus on factors such
as the features and benefits that the customers 'ould e%pect and the advertising and promotional
strategies that have to be adopted! "ith such data, the product mabe developed using advanced
technolog, such as "&1 and /luetooth!
)" E!ELOPING MARKETING STRATEGIES(
#arketing strategies have to be designed subse(uent to the product development and the analsis
of marketing opportunities! +pecific suitable to the target markets have to be developed, even
'hile the product enters the different stages of its life ccle! +trategies developed at these stages
should be so effective that competitive advantages developed at these stages should be so
effective that a competitive advantage is al'as sustained!
4
*" PLANNING MARKETING PROGRAMS(
#arketing programs have to be planned in such a 'a that the strategies formulated are properl
implemented and aid in the achievement of organizational goals! 0ver compan 'hile planning
the marketing programs should consider the marketing mi% variables$ product, price, place, and
promotion! 0ach marketing mi% variable in turn has several factors that have to be focused upon!
,or instance, the product has factors like features, design, (ualit, packing, etc! the pricing factor
are discounts, credit limits etc! The place includes factors such as distributors, location, market
coverage etc and finall the promotional factors include advertising, offers, public relations etc!
The budget allocation for different program has to be planned b the manager! The budget for
different marketing programs is often allocated depending upon the estimated sales of the
products "
+" MANAGING T&E MARKETING E,,ORT2
#anaging the marketing effort is a crucial task! &fter the strateg formulation and the subse(uent
development of the marketing plan, necessar steps have to be taken to control the activities and
put them on track! The budget allocated has to be properl utilized! If an deviations occur at an
stage of marketing process, the manager should efficientl control them! The management of the
marketing effort is the responsibilit of the entire organization, as an fault at an stage of
product development process, 'ill affect the scale badl! Therefore due care has to be taken
'hile selecting the ra' materials, stocking them, processing them and so on!
5
-" MARKETING PLAN(
#arketing planning involves the development of logical process to establish marketing goals and
plans to achieve these goals! It involves allocating budgets for different marketing activities and
evaluating the target market segment! #arketing planning ma be informal in small
organizations 'hile it ma be formal process in large organizations! 0%perts have identified,
developed and implementation of marketing plans! The are confusion bet'een tactics and
strateg, marketing function and the marketing concept, organizational obstacles, lack of a proper
evaluation process, confusion bet'een operations and output, absence of ade(uate kno'ledge,
absence of a structural approach, inappropriate method of se(uencing the goals, and an
unfavorable corporate environment! Therefore, the management should take necessar steps to
overcome these barriers to marketing planning and implementation! The marketing plan of a
business firm involves several functions namel, a chart specifing the content, opportunit and
issue analsis, marketing strateg, action program, pro3ect profit and loss statement and control
measures!
Proactive Management of Lubricant Life
Selecting Premium Base Oil
One strateg for e%tending lubricant life is to select premium lubricants formulated 'ith
premium base oils, premium additive sstems or a combination of both! The &merican
1etroleum Institute 4&1I5 has provided a standard classification for base oils, called groupings, to
summarize the (ualit of the oil! The &1I categories include 6roup I, II, III, I7 and 7 oils!
6roups I, II and III are mineral base oils refined to varing degrees! 6roup I7 oils are
specificall snthesized hdrocarbon base oils such as polalphaolefin 41&O5, the most common
snthetic base oil! The &1I also indicates viscosit inde% 47I5, percent saturated hdrocarbon and
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percent sulfur re(uirements for 6roups I, II and III! 6roup 7 oils include everthing not in
6roups I, II, III or I7 such as dibasic acid ester, plo ester, pol glcol, phosphate ester and
numerous other base oils that possess special properties! Due to the 'ide range of 6roup 7 base
oils, specific re(uirements for this group have not been made!
!iscosity In.e/
The 7I is an indication of the base oil8s relative change in viscosit for a given change in
temperature! & high 7I is generall considered a favorable characteristic because lubricants
'ith this (ualit are operable across a greater range of temperatures! Compared to a lo' 7I
base oil of the same viscosit grade, high 7I base oil has comparativel lo'er viscosit at cold
+tart! Therefore, its flo' characteristics are superior and it maintains a higher viscosit at full
operating temperature, thus providing a thicker oil film to protect the oil! 6roup I has the
lo'est 7I re(uirement and 6roup I7 has the highest re(uirement set b the &1I, and 6roups II
and III fall in bet'een! 6roup I7 41&O5 base oils generall possess a higher 7I than either 6roups
I, II or III! The 7I of 6roup 7 base oil varies depending upon tpe!
'nsaturate. &y.rocarbons
The percentage of unsaturated hdrocarbons in oil indicates the base oil8s abilit to resist
o%idation and thermal failure! /ase oil that has been highl refined to reduce or eliminate
unsaturated molecules 'ill resist o%idation and thermal failure more effectivel than base oil
'ith a comparativel high percentage of unsaturated hdrocarbon molecules! 6roup I base oils
possess a higher percentage of unsaturated molecules than 6roups II or III, 'hich generall
7
means that the o%idative and thermal life of 6roup III base oil is superior to 6roup II, 'hich is
superior to that of 6roup I! -o'ever, improving resistance to o%idative and thermal failure b
refining the base oil to reduce or eliminate unsaturated hdrocarbons can have negative side
effects! /ase oils 'ith a lo' percentage of unsaturated molecules have trouble dissolving
additives and the tend to cause elastomer shrinkage! To counter this, man 6roup II, III and I7
base oils are formulated 'ith co$base oil, such as diester to polol ester to improve additive
solubilit and offset seal shrinkage tendencies!
Sulfur
+ulfur occurs naturall in most mineral base oils! The &1I has designated ma%imum sulfur levels
for 6roup I, II and III base oils, 'ith 6roup I having a higher sulfur allo'ance than 6roups II or
III! 6roup I7 1&O, 'hich is a snthesized hdrocarbon, is sulfur$free! +urprisingl, sulfur
improves the base oil8s lubricit 4the oil8s abilit to lubricate under boundar metal$to$metal
contact conditions5 and natural resistance to o%idation! In fact, sulfur is a component in man
additive formulations, including antio%idants, anti'ar 4&"5 agents and antis cuffing or e%treme
pressure 4015 agents! "h, then, is lo'er sulfur associated 'ith higher base oil grades9 #odern
lubricant formulators prefer to control the chemical conte%t 'here the sulfur resides in the
finished lubricant! Therefore, the prefer to start 'ith base oil containing a lo' concentration of
naturall occurring sulfur so it can be added back into the concentration and chemical form
believed to be appropriate for the application!
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Synt0etic 1ase Oil
0nd users often presume that specifing a premium lubricant b definition means selecting a
lubricant formulated 'ith snthetic base oil! In some instances, snthetic base oil is
appropriate, but not al'as! +nthetic base oil, depending on its tpe, offers several possible
advantages 4Table :5! -o'ever, not all snthetic base oils offer these properties and
the ma not be re(uired! ,or instance, high 7I base oil is not re(uired for a machine that
operates ;<)= at a constant temperature! >ike'ise, detrimental aspects associated 'ith
snthetic base oil must be considered! If ou cannot make the decision ourself, consult e%pert
advice!
20at is OEM3
Original e4ui56ent 6anufacturer 4OEM5 is a term used 'hen one compan makes a part or
subsstem that is used in another compan8s end product! The term is used in several 'as, each
of 'hich is clear 'ithin a conte%t! The term sometimes refers to a part or subassembl maker,
sometimes to a final assembl maker, and sometimes to a mental categor comprising those t'o
in contrast to all other third part makers of parts or subassemblies from the aftermarket!
In the first usage, the O0# is the compan that makes a part that is marketed b another
compan, tpicall as a component of the second compan8s o'n product! ,or e%ample, if &cme
#anufacturing Co! makes po'er cords that are used on I/# computers, &cme is regarded as the
O0# of the po'er cords!
In the second usage, OEM refers to companies like value$added resellers, 'hich are
the second manufacturer in the definition above! If, for e%ample, -e'lett$1ackard sells circuit
boards to &cme +stems for use in &cme8s securit sstems, -$1 refers to &cme as an O0#!
In the third usage, OEM is a mental categor for all of the makers involved 'hen a final
assembl 'as first built 4originall e(uipped5?in contrast to 'hoever made after market parts
that 'ere installed later! ,or e%ample, if ,ord used &utoclave spark
plugs, 0%ide batteries, /osch fuel in3ectors, and ,ord8s o'n engine blocks and heads 'hen
building a car, then car restorers and collectors consider all of those brands as O0# brands, in
contrast to aftermarket brands 4Champion plugs, Diehard batteries, @indler fuel in3ectors, and
/#1 engine blocks and heads5! This can mean that /osch in3ectors are considered O0# parts on
one car model and aftermarket parts on another model! "hen referring to automotive parts, O0#
designates a replacement part made b the manufacturer of the original part! &s most cars are
originall assembled 'ith parts made b companies other than the one 'hose badge appears on
1!
the vehicle, it ma happen that a car compan sells O0# spare parts 'ithout claiming to have
manufactured the part itself!
&n automobile part ma carr the designation O0# if it is made b the same manufacturer that
made the original part used 'hen building and selling the car or pick$up truck!
ABC
The
term aftermarket is often used for non$O0# spare parts!
In purchasing parts at national, discount auto parts retailers 4e!g!, N&1&, &uto
Done, -alfords, &dvance &uto 1arts, 1ep /os, #otrin, &utobacs, etc!5, man parts 'ill have
O0# prominentl displaed but follo'ed b a (ualifier such as Emeets O0# standardsE! +uch
auto parts are not O0#F the are simpl claiming to have been manufactured to the same
specifications as the O0# parts?specifications that ma 'ell be unpublished and unkno'able!
L'1RICANTS
& lubricant is a substance introduced to reduce friction bet'een surfaces in mutual contact,
'hich ultimatel reduces the heat generated 'hen the surfaces move! It ma also have the
function of transmitting forces, transporting foreign particles, or heating or cooling the surfaces!
The propert of reducing friction is kno'n as lubricit 4or slipperiness5!
In addition to industrial applications, lubricants are used for man other purposes! Other uses
include cooking 4oils and fats in use in fring pans, in baking to prevent food sticking5, bio$
medical applications on humans 4e!g! lubricants for artificial 3oints5, ultrasound e%amination,
medical e%aminations, and the use of personal lubricant for se%ual purposes!
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>ubricants are an essential part of modern machiner! 0verthing from computer hard disk
drives to the &irbus &GHI re(uires lubrication of its moving parts !& lubricant 4collo(uiall, lube,
although this ma also refer to personal lubricants5 Isa substance 4usuall a li(uid5 introduced
bet'een t'o moving surfaces to reduce the friction and 'ear bet'een them! & lubricant provides
a protective film, 'hich allo's for t'o touching surfaces to be separated, thus lessening the
friction bet'een them! >ubricants also pla a role in cooling, rust prevention and help to avoid
deposition of solids bet'een closel fitting parts! >i(uid lubricants are most commonl used, but
for some special situations like e%tremes of temperature or 'here rene'al of li(uid lubes is
difficult, solid lubricants like graphite or molbdenum are used! Crude oil is an e%cellent source
of lubes because refining can produce a 'ide range of li(uids 'ith different phsical properties!
The basic process includes vacuum distillation and de' a%ing to produce the fraction 'ith the
right viscosit$temperature characteristics! 7iscosit is the most important characteristic 'hile
deciding on lubes! Changes in viscosit 'ith temperature are of significance and are denoted b
the 7iscosit Inde% J7iscosit is a measure of its thickness or abilit to flo'! / use of relativel
large amounts of additives it is possible to formulate oil 'hich ma fall 'ithin the range of more
than one +&0 4+ociet of &utomotive 0ngineers5grade! +ince all 7I improvers increase
viscosit, a base oil of lo' viscosit is used! >ubes can therefore be classified on the basis of the
characteristic as single grade or multiple grades! #ulti grade lubes are superior because of better
phsical characteristics and variet of use segment Tpicall lubricants contain KIL base oil
4most often petroleum fractions, called mineral oils5 and less than :IL additives! 7egetable oils
or snthetic li(uids such as hdrogenated pololefin*sF esters, silicone, fluorocarbons and man
others are sometimes used as base oils! &dditives deliver reduced friction and 'ear, increased
viscosit, improved viscosit inde%, resistance to corrosion and o%idation, aging or
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contamination, etc! Non$li(uid lubricants include grease, po'ders 4dr graphite, 1T,0,
#olbdenum disulfide, etc!5, Teflon tape used in plumbing, air cushion and others! ¬her
approach to reducing friction and 'ear is to use bearings such as ball bearings, roller bearings or
air bearings or to use sound, in the case of acoustic lubrication! >ubricants such as ;$ccle oil are
also added to some fuels! +ulfur impurities in fuels also provide some lubrication properties,
'hich have to be taken in account 'hen s'itching to a lo'$sulfur dieselF biodiesel is a popular
diesel fuel additive providing additional lubricit!
Ty5es of Lubricants(
• >i(uid including emulsions and suspensions
• +olid
• 6reases
• 1astes
Li4ui. lubricants(
>i(uid lubricants ma be characterized in man different 'as! One of the most common 'as is
b the tpe of base oil used! ,ollo'ing are the most common tpes!
• "ater
• #ineral oils
• 7egetable 4natural oil5
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• +nthetic oils
• Others
• +olid lubricants
In :KKK, an estimated G=,GII,III tons of lubricants 'ere consumed 'orld'ide!
A:C
&utomotive
applications dominate, but other industrial, marine, and metal 'orking applications are also big
consumers of lubricants! <hough air and other gas$based lubricants are kno'n 4e!g!, in fluid
bearings5, li(uid and solid lubricants dominate the market, especiall the former!
>ubricants are generall composed of a ma3orit of base oil plus a variet of additives to impart
desirable characteristics! <hough generall lubricants are based on one tpe of base oil,
mi%tures of the base oils also are used to meet performance re(uirements!
1ase oil grou5s
#ineral oil term is used to encompass lubricating base oil derived from crude oil! The &merican
1etroleum Institute 4&1I5 designates several tpes of lubricant base oil2
• 6roup I M +aturates N KIL and)or sulfur O I!IGL, and +ociet of &utomotive
0ngineers 4+&05 viscosit inde% 47I5 of HI to :;I #anufactured b solvent e%traction,
solvent or cataltic de' a%ing, and hdro$finishing processes! Common 6roup I base oil
are :BI+N 4solvent neutral5, BII+N, and :BI/+ 4bright stock5
• 6roup II M +aturates O KIL and sulfur N I!IGL, and +&0 viscosit inde% of HI to :;I
14
#anufactured b hdrocracking and solvent or cataltic de' a%ing processes! 6roup II
base oil has superior anti$o%idation properties since virtuall all hdrocarbon molecules
are saturated! It has 'ater$'hite color!
• 6roup III M +aturates O KIL, sulfur N I!IGL, and +&0 viscosit inde% over :;I
#anufactured b special processes such as is hdro mediation! Can be manufactured
from base oil or slacks 'a% from de' a%ing process!
• 6roup I7 M 1ol alpha olefins 41&O5
• 6roup 7 M &ll others not included above such as naphthenic, 1&6, esters!
T0e lubricant in.ustry co66only e/ten.s t0is grou5 ter6inology to inclu.e(
• 6roup IP 'ith a 7iscosit Inde% of :IGM:IH
• 6roup IIP 'ith a 7iscosit Inde% of ::GM::K
• 6roup IIIP 'ith a 7iscosit Inde% of at least :<I
Can also be classified into three categories depending on the prevailing
compositions2
• 1araffinic
• Naphthenic
15
• &romatic
>ubricants for internal combustion engines contain additives to reduce o%idation and
improve lubrication! The main constituent of such lubricant product is called the base oil,
base stock! "hile it is advantageous to have a high$grade base oil in a lubricant, proper
selection of the lubricant additives is e(uall as important! Thus some poorl selected
formulation of 1&O lubricant ma not last as long as more e%pensive formulation of
6roup IIIP lubricant!
1io lubricants 6a.e fro6 7egetable oils an. ot0er rene8able
sources
These are primaril triglceride esters derived from plants and animals! ,or
lubricant base oil use the vegetable derived materials are preferred! Common
ones include high oleic canola, castor oil, palm oil, sunflo'er seed
oil and rapeseed oil from vegetable, and Tall oil from tree sources! #an
vegetable oils are often hdrolzed to ield the acids 'hich are subse(uentl
combined selectivel to form specialist snthetic esters! Other naturall derived
lubricants include lanolin 4'ool grease, a natural 'ater repellent5!
"hale oil 'as a historicall important lubricant, 'ith some uses up to the latter
part of the ;Ith centur as a friction modifier additive for automatic transmission
fluid!
In ;IIH, the bio lubricant market 'as around :L of U@ lubricant sales in a total
lubricant market of H<I,III tonnes)ear!
16
>anolin is a natural 'ater repellent, derived from sheep 'ool grease, and is an
alternative to the more common petro$chemical based lubricants! This lubricant
is also a corrosion inhibitor, protecting against rust, salts, and acids!
"ater can also be used on its o'n, or as a ma3or component in combination 'ith
one of the other base oils! Commonl used in engineering processes, such as
milling and lathe turning!
Synt0etic oils
• 1ol alpha$olefin 41&O5
• +nthetic esters
• 1ol alklene glcols 41&65
• 1hosphate esters
• &lklated naphthalene*s 4&N5
• +ilicate esters
• Ionic fluids
Soli. lubricants
17
PT,E( pol tetra flour ethlene 41T,05 is tpicall used as a coating laer on,
for e%ample, cooking utensils to provide a non$stick surface! Its usable
temperature range up to GBI QC and chemical inertness make it a useful additive
in special greases! Under e%treme pressures, 1T,0 po'der or solids is of little
value as it is soft and flo's a'a from the area of contact! Ceramic or metal or
allo lubricants must be used then! ETeflonRE is a brand of 1T,0 o'ned b
Du1ont Co!
Inorganic soli.s( 6raphite, he%agonal boron nitride, molbdenum
disulfide and tungsten disulfide are e%amples of materials that can be used
as solid lubricants, often to ver high temperature! The use of some such
materials is sometimes restricted b their poor resistance to o%idation 4e!g!,
molbdenum disulfide can onl be used up to GBIQC in air, but ::IIQC in
reducing environments5!
Metal9alloy( #etal allos, composites and pure metals can be used as grease
additives or the sole constituents of sliding surfaces and
bearings! Cadmium and 6old are used for plating surfaces 'hich gives them
good corrosion resistance and sliding properties, >ead, Tin, Dinc allos and
various /ronze allos are used as sliding bearings, or their po'der can be used to
lubricate sliding surfaces alone, or as additives to
18
A4ueous lubrication
&(ueous lubrication is of interest in a number of technological applications!
+trongl hdrated brush polmers such as 106 can act as lubricants at li(uid
solid interfaces! / continuous rapid e%change of bound 'ater 'ith other free
'ater molecules, these polmer films keep the surfaces separated 'hile
maintaining a high Suidit at the brushMbrush interface at high compressions,
thus leading to a ver lo' coefficient of friction!
Reac0 an. Net8ork
Indian Oil and its subsidiar 4C1C>5 account for over <KL petroleum products market share,
G:L national refining capacit and =:L do'nstream sector pipelines capacit in India!
The Indian Oil 6roup of companies o'ns and operates :I of India8s ;; refineries 'ith a
combined refining capacit of TB!= #illion #etric Tonnes 1er &nnum 4##T1&5, i!e! :!GI
million barrels per da appro%imatel! Indian Oil8s cross$countr net'ork of crude oil and
product pipelines spans ::,;:< km 'ith a capacit of ==!;BH ##T1& of crude oil and petroleum
products and :I ##+C#D of gas! This net'ork is the largest in the countr and meets the vital
energ needs of the consumers in an efficient, economical and environment$friendl manner!
The Corporation has a portfolio of po'erful and much$loved energ brands that includes Indane
>16as, +0R7O lubricants, Utra 1remium petrol, Utra #ile diesel, 1RO10> V petrochemicals,
etc! 7alidating the trust of H; million households, Indane has earned the coveted status of
1
8+uperbrand8!
Retail Outlets(
Indian Oil has a keen customer focus and a formidable net'ork of customer touch$points dotting
the landscape across urban and rural India! It has over ;G,KII petrol and diesel stations, including
over TIII @isan +eva @endras 4@+@s5 in the rural markets! "ith a countr'ide net'ork of over
<I,III sales points, backed for supplies b :GB bulk storage terminals and depots, G,KGI
+@O)>DO dealers 4TIL of the industr5, KH aviation fuel stations and KI >16as bottling plants,
Indian Oil serves ever nook and corner of the countr! Indane is present in almost G,:GI markets
through a net'ork of =IGB distributors 4B:!;L of the industr5! Over T,GII bulk consumer
pumps are also in operation for the convenience of large consumers, ensuring products and
inventor at their doorstep!
Indian Oil8s I+O$KII; certified &viation +ervice commands an enviable TGL market share in
aviation fuel business, successfull servicing the demands of domestic and international flag
carriers, private airlines and the Indian Defence +ervices! The Corporation also en3os a TBL
share of the bulk consumer, industrial, agricultural and marine sectors!
O1:ECTI!E O, ST'$
2!
The ob3ective of the surve 'as to collect information regarding the lube
marketing through O0# of various companies, mostl IOC>!
It comprised of the follo'ing details2
? To understand tpe of lubricant sold from different O0#s!
? To stud the effect on sale of lubes through &dvertisements, 1osters and banners,
@no'ledge of O0# attendant about lubricants
? To kno' effect on sale of lubes through offers and schemes,
? To catch the 'eak point of availabilit of demand
? To see a'areness about the product
!
SCOPE9SIGNI,ICANCE O, ST'$
Market 'n.erstan.ing
#arket understanding is the basic factor in a business to sell the right product to the right person
at the right time! "hile understanding a market the main problem the markets comes across are
21
? "hat problem the product going to solve from customer vie'9
? "hat are our competitors providing in the same segments9
? "ho 'ill bu the product and 'h9
? "hat is the customer*s e%pectation in a future similar product9
? -o' 'ill the product reach the customer9
To get the e%act ans'ers for the above$mentioned (uestions the market surve has to be taken!
The steps involved in understanding the market are
? Understand the value 'ith an uni(ue selling proposition
? +urve the competitive landscape 'ith proper positioning!
? Understand the target market 'ith the market focus vie'!
? 1lan a sales campaign!
'n.erstan.ing t0e 7alue 8it0 an uni4ue selling 5ro5osition
This step helps the marketer to understand
? The target market
? The needs the product going to meet
? The plan points the product going to relieve for the customers
? Then, 'hat is the solutions
Sur7ey t0e co65etiti7e lan.sca5e 8it0 5ro5er 5ositioning
& proper positioning is re(uired for an product to sho' do'n the are different to their
competitor*s product! +ho'ing the uni(ueness of the product a surve should be conducted to
kno' ho' far the customers 'ill prefer the product in future and ho' far the product is going to
help the customer b reducing the pain points, 'hich is e%perienced from the current
competitor*s product he uses!
'n.erstan.ing t0e target 6arket by 6arket focus
22
The market should have a clear market vie' on the right audience to make their product reach a
'ide range! Understanding the right customer can be done onl through proper observations on
the market! Targeting the right customers and e%plaining about the future product 'ill fetch some
understanding ho' the product 'ill 'ork in the market and ho' far the product 'ould be
successful!
Plan a sales ca65aign
+ales campaign has to be created to e%press the process 'hich 'ill help the customer understand
'hat actuall the product 'ill do and ho' far the product is different from the e%isting similar
competitor*s product! The demo 'ill help the marketer in understanding the customer*s feedback
about the product in realit!
INDUSTRY
23
PROFILE
T0e In.ian Petroleu6 In.ustry
The 1etroleum industr in India stands out as an e%ample of the strides made b the countr in
its march to'ards economic self$reliance! &t the time of independence in :K<=, international
companies controlled the industr! Toda, a little over BI ears later, the industr is largel in the
public domain 'ith skills and technical kno'$ho' comparable to the highest international
standards! The testimon of its vigor and success during the past five and half decades is the
significant increase in crude oil production from I!;B to I!GG million tonnes per annum and
refining capacit from I!G to :IG million metric tonnes per annum! The consumption of
petroleum products has gro'n GI times in the last BI ears from G million tonnes during :K<H$<K
to about :I=!= million tonnes in ;IIG$I<, an increase of G!BL over :I<!: million tonnes
registered in ;II;$IG! & vast net'ork of over ;K,III dealerships and distributorships has been
24
developed backed b over <II storage points over the ears to serve the people even in the
remote and once$inaccessible areas!
Oil production & consumption in India (Million tons)
2!!6 2!!7 2!!8 2!! 2!1!
"ru#e oil $ro#uction 32% 33% 32%7 32 32%5
"ru#e oil consum$tion 62% 65%2 68%5 86 1!3%5
&e'cit (Met b) *m$orts+ (33%+ (34%5+ (3%8+ (54%!+ (71%!+
*n or#er to un#erstan# t,e level of *n#ian #eman# for $etroleum $ro#ucts in
a global $ers$ective- t,e follo.ing table furnis,es a com$arison of $er ca$ita
consum$tion of $etroleum $ro#ucts in t,e various $arts of t,e .orl#%
(/ilograms $er annum+
0 *n#ia 8
0 ",ina 165
0 1ort, 2merica 2-61!
0 3orl# average 585
"ith the per capita consumption level in India being onl about TIL of that in China, a strong
gro'th potential e%ists in India, given particularl a large population base of over a billion!
25
Growth
In the BI ears since independence India has 'itnesses a significant gro'th in the refining
facilities and increase in the number of refineries from one to eighteen no'! The first decade of
Independence 4:K<=$B=5 sa' the establishment of three costal refineries b multinational oil
companies operating in India at that time, viz! /urma +hell, 6esso +tave and Calte%F the first t'o
at #umbai and the third at 7ishakhapatnam! & ma3or boost to the oil industr came in pursuance
of the Industrial 1olic Resolution, :KBT that intended to promote gro'th of the vital sectors
such as petroleum under the +tate control! ON6C, 'hich 'as formed a Directorate in :KBB,
became a Commission in :KBT!
The second decade 4:KB=$T=5 'itnessed the setting up of the Indian Refineries >td! in :KHB, a
'holl o'ned public sector 6overnment Compan! Under its banner three refineries 'ere set up
at 6u'ahati 4&ssam5, /arauni 4/ihar5 and @oali 46u3arat5 essentiall to process the indigenous
crude discovered in &ssam and 6u3arat! In :KBK, the Indian Oil Compan 4INDI&NOI>5, again
a 'holl o'ned 6overnment compan, 'as formed for marketing of petroleum products! Indian
Refineries >td! 'as merged 'ith Indian Oil Compan >td! to form Indian Oil Corporation >td!
on :
st
+eptember :KT<!
The ne%t ten ears period 4:KT=$==5 'itnessed the establishment of t'o refineries, one 'ith
e(uit participation from &merica and Iranian companies at Chennai and another in the public
sector at -aldia b Indian Oil!
The 1eriod :K==$H= sa' the commissioning of t'o more refineries in the public sector! The
refiner at /ongaigaon 'as the first e%periment in having an integrated petroleum refiner$cum$
26
petrochemicals unit! The other refiner 'as set up at #athura in :KH;! #a3or e%pansions of the
coastal refineries at #umbai, Cochin, Chennai and 7ishakhapatnam 'ere also completed during
this period! The notable feature of the capacit additions during this decade have been the
e%tensive utilization of the process design capabilities of #)s! 0ngineers India >td! and
installation of +econdar 1rocessing ,acilities to increase the production of much re(uired
kerosene, diesel and >16!
During the fifth decade 4:KH=$K=5, a small refiner of I!B ##Tpa 4#illion metric tonnes per
annum5 at Nagapatinnam 'as built in Tamil Nadu! It is based on crude from ad3oining fields! In
:KKT, a ##Tpa refiner 'as built in the 3oint sector at #angalore bet'een -1C> and Indian
Raon! This decade also sa' significant e%pansion to the capacities of the e%isting refineries,
thereb raising the refining capacit to about T; ##Tpa!
-o'ever, the production of crude oil increased to over GB million tonnes per annum in the ear
:KK=$KH! This represents onl less than BIL of countr*s re(uirement of petroleum! The
balance had to be made good b imports putting our foreign e%change to a great strain!
Considering the ever$gro'ing demand of petroleum at the rate of about =L per annum, and the
d'indling reliance on indigenous production of oil and natural gas, the 6overnment of India, in
:KK: decided to open up the e%ploration and production of oil and natural gas to the private
sector!
The ministr of petroleum invited bids from the private parties ) consortiums, in a number of
bidding rounds! Conse(uentl, as man as ;: small oil$gas fields and more than a dozen
27
e%ploration blocks 'ere a'arded to private parties, for e%ploration and production 'ork! It 'as
also decided b government to import >i(uefied Natural 6as, to meet the ever$gro'ing
re(uirement of natural gas in the countr! The government also decided to open up oil
e%ploration in the deeper continental shelf b private parties!
"ith the setting up of 1anipat Refiner in :KKK$;III, there are :H refineries operating in the
countr, :B in the public sector, one in the 3oint sector and one in the private sector, 'ith an
installed capacit of :I; million metric tonnes per annum! The ear ;IIG$I< sa' important
developments in 6overnment polic as 'ell a concerted efforts b individual companies to align
their plans and progress 'ith the free market scenario!
On the disinvestments front, the 6overnment of India successfull sold :IL of its e(uit in Oil
V Natural 6as Corporation >td!4ON6C5 and 6&I> 4India5 >td! during the ear! The
6overnment also sold its residual e(uit of ;TL in I/1 Co! >td! through public offer! 0arlier in
;II;, Indian Oil had ac(uired GG!BHL of 6overnment of India*s e(uit in I/1 through
competitive bidding process, and thereafter ac(uired another ;IL through open offer to the
public!
In the upstream sector, the 6overnment of India signed ;I contracts for oil V gas e%ploration
under the fourth round of Ne' 0%ploration >icensing 1olic 4N0>15 and eight contracts under
the second round of the Coal /ed #ethane 4C/#5 1olic! +ignificant hdrocarbon discoveries
in the blocks a'arded earlier enhanced the prospects of finding more oil V gas reserves in the
countr! ,or enhancing the countr*s oil securit, the 6overnment decided to set up B million
tonnes of strategic crude oil storage in the countr at #angalore and 7ishakhapatnam, 'hich 'ill
be built and operated b Indian Oil!
28
T0reats
To'ards end of the ear, the ma3or concern of the petroleum industr 'as the rising cost of crude
oil! "hile the uprising in gross refining margins helped improve the bottom line, Indian refiners
'ere severel impacted b the ever$rising and fluctuation price of crude oil and products in the
international market! +ince our countr is still dependent on imports to the e%tent of =IL of its
re(uirement, 'e shall continue to be sub3ect to volatilit in the international prices of oil! The
strengthening of the Indian Rupee against the U+ Dollar helped limit the impact partiall!
Concerted steps taken b the 6overnment to augment indigenous production through the N0>1
rounds, and encouragement to Indian companies in ac(uiring e(uit oil and gas abroad, are
therefore steps in the right direction!
T0e In.ian Lubricant Market
The Indian automotive lubricant market is the si/t0 largest 6arket in t0e 8orl. 'ith
;re7enues of a55ro/i6ately <#"*= billion in )==)>! It is also one of the fastest gro'ing retail
markets in India! Until :KKG, it 'as a highl regulated market 'ith a clear dominance of the
public sector! Companies like /harat 1etroleum 4/1C>5, -industan 1etroleum 4-1C>5, and
Indian Oil Corporation 4IOC5 held more than =B percent of the market share! In recent ears,
'ith the advent of the increasing number of multinationals in the Indian market there is a
gro'ing presence of private companies! Companies like Castrol, 0lf Total$,ina, 6ulf, and +hell
2
Oil have made their presence felt in the market! It has been estimated that there is a presence of
around GI companies in lube market of India! &ll the oil companies are fighting to consolidate
their position in market! The monopol of the public sector holdings no longer e%ist! #NC s 'ill ?
be able to sell their products through petrol pumps! >ubes manufactured b Reliance 1etroleum,
Castrol, 0lf, 6ulf Oil etc, are no' sold at petrol pumps! In medium to long term, W,rost ?
Sulli7an> e%pects private sector companies to have a market share of around ;B percent! In the
ne%t couple of ears, the industr is going to 'itness big changes! Retail net'orks, logistics
management, and risk management are going to be the crucial factors! The stand$alone refineries
'ill have to be merged 'ith the marketing companies, as the do not have the distribution
infrastructure to sell their products in a deregulated market! Companies like Reliance are alread
selling their products through petrol pumps! Lube Oil After Post Liberali@ation The first seeds
of competition 'ere so'n in the earl :KKI s 'hen follo'ing the liberalization of the Indian ?
econom, the government decided to open the Indian market to foreign competition! Import of
base oil, the ke ra' material, 'as de$canalized 'ith IOC losing its status as the sole canalizing
agent! 1ricing of base oil 'as deregulated in a phased manner and currentl it is no' market
determined! /asic custom dut on base oil stock 'as also reduced from a peak of HB percent to a
level of ;B percent! &ll (uantitative restrictions 'ere also removed! These developments
naturall encouraged the entr of foreign plaers on Indian shores 'ho 'ere alread facing a
slo'do'n in demand in their local markets! The coming of foreign participants created an e%cess
suppl situation in the Indian automotive lubes market, 'hich made it more difficult for the
Indian lube manufacturers to survive! Recent deregulations in the lubricant market have
promised man ne' opportunities for the private lube manufacturers! "ith the dismantling of
&dministered 1rice #echanism 4&1#5 the burden of subsidies is no' being passed on to the
3!
government! 1rivate participants 'ill also gain a presence in the Indian oil and 6as sector and
hence there 'ill be competition bet'een participants that 'ill ensure the gro'th of the sector
Market Si@e
WTotal production of automotive lubricants in India is appro%imatel H to :I percent of global
lube productionX! Unlike other countries 'here lubricant demand has 'itnessed stagnation, Wthe
Indian market has been gro'ing at appro%imatel = percent per annum for the past ; earsX!
.The public sector contributes to over TI percent of the revenues for this market! #NC s have B ?
percent market share and the remaining share is held b the unorganized sector?! The overall
Ratio of automotive) industrial lubricants is around to be TB2GB! &utomotive lubricants are
further divided into diesel lubes, petrol lubesV gas lubes! ? Diesel lubes comprise =I percent of
the market .and petrol based lubricants V gas based lubricants cover the rest! &s diesel lubes are
used b commercial vehicles, 'hich have to cover greater distances, their market share is higher!
W0ngine oil constitutes around HG percent of total sales volumes V in BH percent in terms of
market shareX! 6ear oils, transmission fluids, hdraulic brake fluids, and engine coolants
contribute to the balance! It is being estimated that b ear ;IIT the overall Indian lube oil
industr 'ill be :!; ##T1& 'hich is being a market value of more than U+ Y : /illion! &lso
India is the +eventh largest >ubricant market in the 'orldV +i%th largest automotive market in
the 'orld! The lube market 'ill 0%pected to 6ro' at a Rate Of GL in ;IIT$I=!
31
Company
32
Profile
&n energ self$sufficient India can alter the economic, political and manufacturing landscape of
the region! Its (uest for energ 'ill create ne' economic and strategic challenges, right from
mobilizing capital to engaging in subtle diplomac!
Indian Oil*s o'n performance in the financial ear ;IIT$I= 'as a case of 8e%ceeding
33
e%pectations8 'ith both turnover and profits reaching ne' highs, product sales registering a
(uantum 3ump, and the refineries as 'ell as pipelines net'ork enhancing their capacities beond
TI ##T1& and registering record throughputs! Ne' pro3ects 'orth Rs! :I,III crore 'ere put
on stream during the ear! &mong ne' businesses, the petrochemicals and natural gas verticals
and participating interests in a clutch of oil V gas assets in India and abroad has ensured
e%pansion of the upstream portfolio!
Indian Oil has ambitious investment plans of Rs! <G,;BI crore in the ne%t five ears! / ;I::$:;,
the Indian Oil 6roup, 'ith HI ##T1& refining capacit in its fold, 'ould be plaing a ke role
in realising India*s bid to emerge as an e%port$oriented hub for finished products! The pipelines
net'ork, 'hich provides strategic logistics advantage to the marketing operations, is also set to
cross the :I,III km mark in the ne%t t'o ears!
In marketing, Indian Oil is set to leverage the combined strength of over G;,III marketing touch
points, 'ith focus on hitherto untapped rural markets, non$fuel revenues and pure retailing
business! Indian Oil aspires to be &sia*s leading commercial RVD organisation in the
do'nstream hdrocarbon sector b building on its capabilities in developing innovative
technologies, products and processes, and nodal research in alternative fuels!
/eond core businesses, Indian Oil is 'orking to emerge as a ma3or plaer in the petrochemicals
business b the ear ;I::$:;, 'ith t'o petrochemical hubs shaping up at 1anipat and 1aradip! In
natural gas business, it is attempting (uantum gro'th in >N6 imports, infrastructure and
marketing, besides cit gas distribution! In the high$risk business of oil e%ploration V
production, Indian Oil*s consortium approach 'ith established plaers is paing off 'ell in terms
of e%ceptional 6overnment support and successful foras in India and abroad! Its current
interests are focused on oil e(uit and sourcing of natural gas, predominantl from &frican and
CI+ countries, b leveraging its do'nstream capabilities to form 3oint venture partnerships 'ith
34
reputed enterprises overseas!
"ith India*s energ needs pro3ected to gro' b <IL in the ne%t five ears, the future is indeed
full of promise for Indian OilF a future the G:,=II strong Indian Oil team shall build as the fuel
the dreams of over a billion of their countrmen!
Indian Oil has one of the largest petroleum marketing and distribution net'orks in &sia, 'ith
over GB,III marketing touch points! Its ubi(uitous petrol)diesel stations are located across
different terrains and regions of the Indian sub$continent! ,rom the ic heights of the -imalaas
to the sun$soaked shores of @erala, from @utch on India8s 'estern tip to @ohima in the verdant
North 0ast, Indian Oil is trul 8in ever heart, in ever part8! Indian Oil8s vast marketing
infrastructure of petrol)diesel stations, Indane 4>165 distributorships, +0R7O lubricants V
greases outlets and large volume consumer pumps are backed b bulk storage terminals and
installations, inland depots, aviation fuel stations, >16 bottling plants and lube blending plants
amongst others! The countr'ide marketing operations are coordinated b :T +tate Offices and
over :II decentralized administrative offices!
+everal landmark surves continue to rate Indian Oil as the dominant energ brand in the countr
and an enduring smbol for high (ualit petroleum products and services! The heritage and
iconic association that the brand invokes has been built over four decades of commitment to
uninterrupted suppl line of petroleum products to ever part of the countr, and uni(ue products
that cater not onl to the functional re(uirements but also the aspiration needs of millions of
customers!
Indian Oil has been ad3udged India8s No! : brand b U@$based /rand ,inance, an independent
35
consultanc that deals 'ith valuation of brands! It 'as also listed as India8s 8#ost Trusted /rand8
in the 86asoline8 categor in a Readers8 Digest $ &C Nielsen surve! In addition, Indian Oil
topped The -indu /usiness line*s EIndia8s #ost 7aluable /randsE list! -o'ever, the value of the
Indian Oil brand is not 3ust limited to its commercial role as an energ provider but straddles the
entire value chain of gamut of e%ploration V production, refining, transportation V marketing,
petrochemicals V natural gas and do'nstream marketing operations abroad! Indian Oil is a
national brand o'ned b over a billion Indians and that is a priceless value!
KE$ PEOPLE
S"No Na6e esignation
: / &shok Chairman
; Ra3u Ranganathan Compan +ecretar
G # Nene "hole time Director $ #arketing
< +C @huntia 6overnment Nominee Director
B Ra3ive @umar 6overnment Nominee Director
T 1 @ 6oal "hole time Director $ ,inance
= +hamala 6opinath Non 0%ecutive Independent Director
H +ham +aran Non 0%ecutive Independent Director
K Devang @hakhar Non 0%ecutive Independent Director
:I @ Zaira3 Non 0%ecutive Independent Director
:: Nesar &hmad Non 0%ecutive Independent Director
:; +unil @rishna Non 0%ecutive Independent Director
:G +aan Chatter3ee Non 0%ecutive Independent Director
:< 7+ Okhde "hole Time Director
36
:B +an3iv +ingh "hole Time Director
!ISION
& ma3or diversified, trans$national, integrated energ compan, 'ith national leadership and a strong
0nvironment conscience, plaing a national role in oil securit V public distribution!
37
MISSION
38
? To achieve international standards of e%cellence in all aspects of energ and diversified
business 'ith focus on customer delight through value of products and services, and cost
reduction!
? To ma%imize creation of 'ealth, value and satisfaction for the stakeholders!
? To attain leadership in developing, adopting and assimilating state$of$ the$art technolog
for competitive advantage!
? To provide technolog and services through sustained Research and Development!
? To foster a culture of participation and innovation for emploee gro'th and contribution!
? To cultivate high standards of business ethics and Total [ualit #anagement for a strong
corporate identit and brand e(uit!
? To help enrich the (ualit of life of the communit and preserve ecological balance and
heritage through a strong environment conscience!
!AL'ES(
Indian Oil nurtures the core values of Care, Innovation, 1assion V Trust across the organization
in order to deliver value to its stakeholders!
Care Stands for
• Concern
• 0mpath
• Understanding
• Co$operation
3
• 0mpo'erment
Inno7ation Stands for
• Creativit
• &bilit to learn
• ,le%ibilit
• Change
Passion Stands for
• Commitment
• Dedication
• 1ride
• Inspiration
• O'nership
• Deal V Dest
Trust Stands for
• Delivered promises
4!
• Reliabilit
• Dependabilit
• Integrit
• Truthfulness
• Transparenc
ObAecti7es
• To serve the national interests in oil and related sectors in accordance and consistent 'ith
6overnment policies!
• To ensure maintenance of continuous and smooth supplies of petroleum products b 'a
of crude oil refining, transportation and marketing activities and to provide appropriate
assistance to consumers to conserve and use petroleum products efficientl!
• To enhance the countr8s self$sufficienc in crude oil refining and build e%pertise in
laing of crude oil and petroleum product pipelines!
• To further enhance marketing infrastructure and reseller net'ork for providing assured
service to customers throughout the countr!
• To create a strong research V development base in refiner processes, product
41
formulations, pipeline transportation and alternative fuels 'ith a vie' to
minimizing)eliminating imports and to have ne%t generation products!
• To optimize utilization of refining capacit and ma%imize distillate ield and gross
refining margin!
• To ma%imize utilization of the e%isting facilities for improving efficienc and increasing
productivit!
• To minimize fuel consumption and hdrocarbon loss in refineries and stock loss in
marketing operations to effect energ conservation!
• To earn a reasonable rate of return on investment!
• To avail of all viable opportunities, both national and global, arising out of the
6overnment of India*s polic of liberalization and reforms!
• To achieve higher gro'th through mergers, ac(uisitions, integration and diversification
b harnessing ne' business opportunities in oil e%ploration V production,
petrochemicals, natural gas and do'nstream opportunities overseas!
• To inculcate strong \core values* among the emploees and continuousl update skill sets
for full e%ploitation of the ne' business opportunities!
• To develop operational snergies 'ith subsidiaries and 3oint ventures and continuousl
engage across the hdrocarbon value chain for the benefit of societ at large!
42
,inancial ObAecti7es
• To ensure ade(uate return on the capital emploed and maintain a reasonable annual
dividend on e(uit capital!
• To ensure ma%imum econom in e%penditure!
• To manage and operate all facilities in an efficient manner to generate ade(uate internal
resources to meet revenue cost and re(uirements for pro3ect investment, 'ithout
budgetar support!
• To develop long$term corporate plans to provide for ade(uate gro'th of the Corporation*s
business!
• To reduce the cost of production of petroleum products b means of sstematic cost
control measures and thereb sustain market leadership through cost competitiveness!
• To complete all planned pro3ects 'ithin the scheduled time and approved cost!
Obligations
• To'ards customers and dealers2 $ To provide prompt, courteous and efficient service and
(ualit products at competitive prices!
• To'ards suppliers2 $ To ensure prompt dealings 'ith integrit, impartialit and courtes
43
and help promote ancillar industries!
• To'ards emploees2 $ To develop their capabilities and facilitate their advancement
through appropriate training and career planning! To have fair dealings 'ith recognized
representatives of emploees in pursuance of health industrial relations practices and
sound personnel policies!
• To'ards communit2 $ To develop techno$economicall viable and environment$friendl
products! To maintain the highest standards in respect of safet, environment protection
and occupational health at all production units!
• To'ards Defence +ervices2 $ To maintain ade(uate supplies to Defence and other 1ara$
militar services during normal as 'ell as emergenc situations!
Pro.uct folio
Indian Oil is the largest commercial enterprise in the countr! it is the flagship corporate of the
Indian Nation! /esides having a dominant market share, Indian Oil is 'idel recognized as
India*s dominant energ brand and customers perceive Indian Oil as a reliable smbol for high
(ualit products and services!
/enchmarking [ualit, [uantit and +ervice to 'orld$class standards is a philosoph that Indian
Oil adheres to ensure that customers get a trul global e%perience in India! Our continued
44
emphasis is on providing fuel management solutions to customers 'ho can then benefit from our
e%pertise in efficient sourcing and least cost supplies keeping in mind their usage patterns and
inventor management!
Indian Oil is a heritage and iconic brand at one level and a contemporar, global brand at another
level! "hile (ualit, reliabilit and service remains the core benefits to our customers, our
stringent checks are built into operating sstems, at ever level ensuring the trust of over a
billion Indians over the last four decades!
Our Retail /rand template of Utra Care 4Urban5, +'agat 4-igh'a5 and @isan +eva @endras
4Rural5 are 'idel recognized as pioneering brands in the petroleum retail segment! Indian Oil*s
leadership e%tends to its energ brands $ Indane >16, SERO >ubricants, &uto gas >16, Utra
1remium /randed 1etrol, Utra #ile /randed Diesel, Utra 1o'er ,leet Card, Indian Oil &viation
and Utra Re'ards cash customer loalt programme!
1roducts
• Indane 6as
• &uto 6as
• Natural 6as
• 1etrol)6asoline
• Diesel)6as oil
45
• &T,)Zet ,uel
• SERO lubricants V greases
• #arine ,uels V >ubricants
• @erosene
• /ulk)Industrial ,uels
• /itumen
• 1etrochemicals
• +pecial 1roducts
• Crude Oil
T0e fa6ous 1ran.s un.er In.ian Oil
46
Indian Oil8s branded fuels Utra#ile and Utra1remium have made a significant impact in the
petroleum retail market! Utra#ile, Indian Oil8s ne' generation -igh +peed Diesel 'ith 'orld$
class additives has taken a leadership position in the market!
The launch of premium fuels $ Utra1remium and Utra#ile 4originall IOC 1remium and Diesel
+uper respectivel5, marks a ne' beginning for Indian Oil and its customers! Utra1remium is, in
fact, the onl petrol in India 'ith K: Octane and doped 'ith #ultifunctional &dditives! The
maiden launch of these branded fuels took place in Delhi on +ept! ;<, ;II;! +ubse(uentl, Utra
1remium sales have been e%tended to ;II cities and =BI petrol V diesel stations, and Utra#ile to
HBI cities and :=BI petrol and diesel stations b the end of!
47
SER!O is India8s largest selling lubricant brand! +0R7O ranges of lubricants en3o approvals
from ma3or Original 0(uipment #anufacturers 4O0#s5 including ne' generation cars! K,III
Retail Outlets and a countr'ide net'ork of +0R7O ++ls and ++&s /azaar traders offer servo
range of lubricants to customers!
The Ser7o range of lubricants is used in almost ever application covering automotive, industrial
and marine sectors! Ser7o range of lubricants is fast emerging as a 6lobal /rand! Ser7o has been
designated as a su5erbran." Ser7o has genuine oil tie ups 'ith a 'ide range of companies like
-undai, #aruti, /a3a3, >ancer! &nil @umble, the ever dependable sporting icon is ser7o /rand
&mbassador!
Developed e%clusivel at Indian Oil8s 'orld$class RVD Centre at ,aridabad, there is a Ser7o
lubricant for virtuall ever single application! "ith over <;L market share and <BI grades, the
countr8s leading +ervo brand lubricants from Indian Oil are sold through over H,:II Indian Oil
petrol)diesel stations, over :,GII +ervo +hops and a countr'ide net'ork of bazaar traders!
Indian Oil Indane >16as is used in <I #illion homes as cooking fuel and commands over <HL
market share in India! Indane >16as is marketed through a net'ork of <GBI Indane distributors!
"idel used in commercial sectors like industries, hotels V restaurants, medical labs, etc! H=
Indane /ottling 1lants are spread across the countr 'ith a combined bottling capacit of G!==
48
##T1&! Ne' and convenient B kg Indane >16as clinders introduced in rural and hill regions
for 'ider use b economicall 'eaker sections! Indian Oil8s auto >16 brand &utogas is the
leader in the segment! #arketed through a net'ork <H stations out of an industr total of :IG
&uto >16 Dispensing +tations!
&utogas 4>165 has been introduced in -derabad, /angalore and #umbai markets! This
alternative fuel is a good business proposition in the long term, and Indian Oil intends to further
e%pand its marketing in a big 'a!
4
SER!OBPRESS
+0R7OU1R0++ vehicle servicing centers are one$stop shops for (uick, eas and convenient auto
care, offering a refreshing e%perience to motorists! Opened in convenient locations like malls,
petrol pumps or as stand$alone units, +0R7OU1R0++ stations have facilities for engine oil
change, tre V batter check$ups, air$conditioner service, vacuum cleaning, perfuming, upholster
cleaning, polishing, lamination installation, etc!, besides replacement of minor parts for t'o and
four$'heeler vehicles!
Ser7ices(
Indian Oil has 'ide$ranging e%pertise in setting up and operating 6reenfield refineries and
/ro'nfield e%pansions! It has pioneered pipeline transportation kno' ho' in India, and has over
four decades of e%perience in putting up marketing infrastructure across the sub$continent, to
reach petroleum products to millions of people ever da! /acked b cutting edge RVD that
offers innovative products, technologies and services covering the entire gamut of do'nstream
operations!
5!
Indian Oil has been lending its e%pertise for nearl t'o decades to various countries in several
areas of refining, marketing, transportation, training and RVD! These include +ri >anka, @u'ait,
/ahrain, Ira(, &bu Dhabi, Tanzania, 0thiopia, &lgeria, Nigeria, Nepal, /hutan, #aldives,
#alasia and Dambia!
Indian Oil8s capabilities in the do'nstream sector of operations in the oil sector includeF
Technical and Consultanc +ervices, Operation V #aintenance, Techno$0conomic
feasibilit)special studies, Turnaround #aintenance M planning, monitoring V e%ecution,
Inspection, [ualit Control2 benchmarking, +hipping and Commercial, >ogistics, Research V
Development, +afet and Industrial hgiene, [ualit &uditing) #anagement, #aterials
#anagement, Training! In all this and more, Indian Oil looks for'ard to sharing its e%pertise
'orld'ide!
• Refining
• 1ipelines
• #arketing
• Technolog >icensing
• Training
Projects :
*n#ian Oil accor#s ,ig, $riorit) to timel) $ro4ect im$lementation% 5,e #etails of
various ma4or $ro4ects are as follo.s6
51
Completed Projects :
&iesel 7)#rotreating an# Solvent &e8.a9ing units at &igboi :e'ner)%
;iramgam < /o)ali cru#e oil $i$eline (148 =m+%
/o)ali8;iramgam8Si#,$ur $ro#uct $i$eline (1!2 =m+%
/uru=s,etra8
or=ee81a4ibaba# $ro#uct $i$eline (167 =m+%LP> bottling $lants at eig,t locations%
Port terminal at Mauritius .it, a tan=age of 15%5 5M5%
Ongoing Project :
• Linear 2l=)l Ben?ene unit at /o)ali :e'ner)%
• &iesel 7)#rotreating unit at Mat,ura :e'ner)%
• MS @ualit) im$rovement $ro4ects at Mat,ura- /o)ali an# 7al#ia
re'neries%
• Para9)leneAPuri'e# 5ere$,t,allic 2ci# unit at Pani$at :e'ner)%
• Pani$at :e'ner) e9$ansion from 6 MM5 $er annum to 12 MM5 $er
annum%
• >rassroots re'ner) at Para#i$
• Mun#ra8/an#la cru#e oil $i$eline (73 =m+ an# conversion of t,e /an#la <
Pani$at section of /BPL to cru#e oil service%
• Para#i$ < 7al#ia cru#e oil $i$eline (353 =m+%
• Si#,$ur < Sanganer $ro#uct $i$eline (5!6 =m+%
• ",ennai < 5ric,) < Ma#urai $ro#uct $i$eline (683 =m+%
• "a$acit) augmentation of LP> bottling $lants at ",engal$et an#
5i=ri=alan%
52
• 1a$,t,a transfer $i$eline from 2saoti to 15P"- Bari#aba#%
• 7)#rocrac=er Laborator) < P,ase8** < at :C& "entre%
&istory
Indian Oil Corporation 4IOC5, established in :KBK, The Indian Oil Corporation 'as formed in
:KT<, 'ith the merger of Indian Refineries >td! Recentl Indian Oil Corp 4IOC5 has raised YBII
million b selling :I$ear dollar$denominated bonds, its fourth such issue overseas in the last
three and a half ears!
IOC is engaged in e%ploration and production and marketing of oil! It is India*s largest compan
sales 'ise 'ith a turnover of Rs ;,<=,<=K crore 4Y BK!;; billion5!
IOC has subsidiaries namel Indian oil Technologies, Chennai 1etroleum Corporation,
/ongaigaon Refiner V 1etrochemicals, Indian Oil 4#auritius5 and >anka IOC!
Out :K refineries, IOC o'ns and operates :I 'ith a combined capacit of capacit of TI!;
million metric tonnes per annum 4##T1&5, i!e! :!; million barrels per da! It has :TT bulk
storage terminals and depots, :I:$aviation fuel station and HK Indane bottling plants!
The refining ma3or has a countr'ide net'ork of petrol and disel stations 'ith :=,TII retail
outlets! Its Indane cooking gas net'ork has apresence in BI million households through its
distribution net'ork of B,III distributors!
Milestones
53
IOC is the highest ranked Indian compan In ,ortune \6lobal BII* list!
It is :Hth largest petroleum compan in the 'orld!
It is India*s most trusted fuel pump brand as per the surve conducted b 0T brand e(uit and
&C Neilsen!
It has received National &'ard for WInnovation in Implementing /usiness Continuit for +&1R)G
0nvironment Wfrom the 6overnment of India!
Outlook
IOC and 6&I> have signed a memorandum of understanding for cooperation in setting up an Rs
:I,III crore petroleum plants at /arauni in /ihar!
Indian Oil launched its lubricant brand +ervo in Oman! +ervo has BII different grades and :;II
varied formulations!
• In ;IIG, its 6u3arat Refiner 'as a'arded the E/est of allE
Grou5 co65anies an. Aoint 7entures
• Indian Oil 4#auritius5 >td!
• >anka IOC 1>C M 6roup compan for retail and storage operations in +ri >anka! It is
listed in the Colombo +tock 0%change! It 'as locked into a bitter subsid pament
dispute 'ith +ri >anka8s 6overnment, 'hich has since been resolved!
• IOC #iddle 0ast ,D0
54
• Chennai 1etroleum Corporation >imited
• 6reen 6as >td! M a 3oint venture 'ith 6as &uthorit of India >td! for cit'ide gas
distribution net'orks!
• Indo Cat 1vt! >td!, 'ith Intercat, U+&, for manufacturing :B,III tons per annum of ,CC
4fluidized cataltic cracking5 catalsts V additives in India!
• Indian Oil M CR0D& /iofuels >td!, a 3oint venture 'ith Chhattisgarh government for
production and marketing of /io$fuels!
• Numerous e%ploration and production ventures 'ith Oil India >td!, Oil and Natural 6as
Corporation
• India +nthetic Rubber >td $ & 3oint venture bet'een IOC>, Tai'an +nthetic Rubber
Corporation4Tai'an5 and #arubeni4Zapan5
• 10TRON&+ 4#alasia5 >td
International rankings
• Indian Oil is the highest ranked Indian compan in the ,ortune 6lobal BII listing, at the
KTth position in ;I:<! It is also the :Hth largest petroleum compan in the 'orld and the
No! : petroleum trading compan among the national oil companies in the &sia$1acific
region!
55
• IOC> 'as featured on the ;I:: ,orbes 6lobal ;III at position ;<G!
• It is the fifth most valued brand in India according to an annual surve conducted b
/rand ,inance and The 0conomic Times in ;I:I!
E65loyees
&s on G: #arch ;I:G, the compan had G<,IH< emploees, out of 'hich ;T<G 'ere 'omen
4=!HL5! Its 'orkforce includes :<,KH: officers! The attrition rate in Indian Oil is around :!BLThe
Compan incurred INR =H billion on emploee benefits during the ,] ;I:;$:G!
Concerns
Indian Oil Corporation >imited, b virtue of being the largest 1ublic sector Oil Compan has
borne the largest share of subsid burden due to 6overnment restriction on 1ricing of common
fuels like Diesel Oil, @erosene and >16!
The current formula of making the marketing compan share
Grd of the subsid burden 4 theupstream and the 6overnment share the rest e(uall5 forces the corporation to cross subsidize
price regulated fuels 'ith other fuels that are not regulated like 6asoline, ,uel oil, &viation
Turbine ,uel and >ubricants! This has rendered the corporation8s fuels and >ubricant segments
uncompetitive 'ith respect to private marketers 'ho are delving into the open priced fuel)
>ubricants markets in an aggressive 'a!
56
The subsid burden 'hich 'ent over Rs! GII /illion in ;I:: has thereb handicapped the public
sector oil companies as a 'hole and Indian Oil in particular, b virtue of its large share of the
energ market!
Indian Oil has tried to come out of the disadvantageous position it finds itself vis$a$vis the
private companies like Total Oil India >imited and Reliance Industries, b taking the fight to
ne'er sectors 'here private plaers are dominant like 1etrochemicals and <ernative ,uels!
1etrochemicals are Indian Oil8s most profitable revenue division currentl and massive
investments in the recent ears have been made in 1etrochemical comple%es at 1anipat refiner
and the upcoming 1aradip refiner!
Despite substantial 'ell directed efforts, the corporation still faces significant challenges in
maintaining its current dominance once the imminent free pricing is introduced, although the
corporation8s vast infrastructure shall also pla to its advantage in such a scenario!
Listing an. s0are0ol.ing
Indian Oil8s e(uit shares are listed on the /omba +tock 0%change and National +tock
0%change of India!
57
&s on G: December ;I:G, the promoters 6overnment of India held appro%! =KL of the shares in
Indian Oil! ON6C held appro%! KL of the shares! Remaining :;L of the shares are held b
others!
S0are0ol.ers Cas on *#DecD)=#*E S0are0ol.ing
1romoter 6roup 46overnment of India5 =H!K;L
private single bod ;I!:GL
Insurance Companies I:!BIL
Individual shareholders I!HGL
Trusts I!<;L
,oreign Institutional Investors 4,II5 I!:GL
Others I!I=L
Total :II!IL
Marketing
The marketing of petroleum products in India toda is dominated b the four state$o'ned oil
companies! Their market shares as on G:st #arch ;II: 'ere as follo's2
J Indian Oil Corporation BB L appro%!J
J /harat 1etroleum Corporation ;: L appro%!J
J -industan 1etroleum Corporation :K!B L appro%!J
J I/1 Compan <!B L appro%!J
MO:AR PLA$ER PRO,ILE
58
#" &in.ustan 5etroleu6
-1C> 4#arket +hare$ GIL5
-1C> is a 6overnment of India 0nterprise 'ith a Navratna +tatus, and a ,ortune BII and ,orbes
;III compan, 'ith an annual turnover of Rs! :,G;,T=I Crores and sales)income from operations
of Rs :,<G,GKT Crores 4U+Y G:,B<T #illions5 during ,] ;I::$:;, having about GIL #arketing
share in India among 1+Us and a strong market infrastructure! -1C>8s Crude Thruput and
#arket +ales 4including e%ports5 are :<!=B #illion #etric Tonnes 4##T5 and ;=!IG ##T
respectivel in the same period!
-1C> operates ; ma3or refineries producing a 'ide variet of petroleum fuels V specialties, one
in #umbai 4"est Coast5 of T!B #illion #etric Tonnes 1er &nnum 4##T1&5 capacit and the
other in 7ishakhapatnam, 40ast Coast5 'ith a capacit of H!G ##T1&! -1C> holds an e(uit
stake of :T!KBL in #angalore Refiner V 1etrochemicals >imited, a state$of the$art
refiner at #angalore 'ith a capacit of K ##T1&! In addition, -1C> is constructing a K
##T1& refiner
at /athinda, in the state of 1un3ab, as a Zoint venture 'ith #ittal 0nerg Investments 1te! >td!
-1C> also o'ns and operates the largest >ube Refiner in the India producing >ube /ase Oils of
international standards, 'ith a capacit of GGB T#T! This >ube Refiner accounts for over <IL
of the India8s total >ube /ase Oil production!
-1C>8s vast marketing net'ork consists of :G Donal offices in ma3or cities and :I: Regional
5
Offices facilitated b a +uppl V Distribution infrastructure comprising Terminals, 1ipeline
net'orks, &viation +ervice +tations, >16 /ottling 1lants, Inland Rela Depots V Retail Outlets,
>ube and >16 Distributorships! -1C>, over the ears, has moved from strength to strength on
all fronts! The refining capacit steadil increased from B!B ##T1& in :KH<)HB to :<!H ##T1&
presentl! On the financial front, the turnover has gro'n from Rs! ;TH= Crores in :KH<$HB to an
impressive Rs :, G;,T=I Crores in ,] ;I::$:;!
)" 10arat 5etroleu6
BPCL (M!"#$ %&!#)83!D+
/harat 1etroleum offers a full range of &utomotive 0ngine Oils, 6ear Oils, Transmission oils,
+pecialt Oils and 6reases! The correct usage of these >ubricants of right (ualit ensures
prolonged and trouble free vehicle operation, providing ma%imum benefits to the users of present
da modern vehicles! In line 'ith the economic liberalization in India, >ubricants 'as the first
do'nstream 1etroleum product to be totall deregulated 'ith effect from :KK:! +ince then a large
number of plaers $National, #NCs as 'ell as 6lobal 1laers $ have entered the Indian
>ubricants market! Despite operating in a totall competitive environment, /1C>8s >ubricants
+/U has been registering a gro'th in lubricant sales continuousl over the past couple of
ears! In ;II=$IH, an overall gro'th of :IL has been registered, 'ith a health turnover of Rs!
:THI crores 4appro% U+D GBI million5! In :KKH, 'e re$launched our >ubricants in ne' attractive
6!
packs, mainl in &utomotive categor 'ith three ma3or brands depicting each segment$ #ak for
Diesel 0ngine oils, &utomol for 1etrol 0ngine oils and 6lide for T'o)Three 'heelers4mainl ;T
then5! In the ear ;IIG, 'e decided to go for Umbrella /rand$#&@ >ubricants, in subse(uent
ears, branded all our industrial grades 'ith #&@!
Su55ly C0ain Manage6ent
Indian Oil /lending >imited 4IO/>5 is full o'ned subsidiar of Indian Oil, engaged in
the manufacturing of lubricants and greases and catering to the Defence, rail'as, state transport,
aviation dept! etc &t IO/>, blending of lubricants 4mi%ing of base oil 'ith additives5 is done!
&fter blending of lubricants, then filling of barrels, bulk 'ork has to be done and dispatched to
+C,1! +C,1 then moves the lube to Dealer Operated 6odo'n 4D,O>65 and Carring V
,or'arding &gent 4C,&5! &fter that product id dispatched to the follo'ing2
• +ervo +tockiest &utomotive 4++&5
• +ervo +tockiest Industrial 4++I5
Direct Institutional Customers 4such as Defence, Rail'as, 6ovt! customers and large industrial
customer! ++& deals 'ith the sales and promotion of product*s supplies products in the market!
In "est /engal >ubricant is manufactured from /ase Oil at G places2
• 1aharpur 4>ube ,ield5, @olkata
• /udge /udge
• +C,1 $ #alda
/arrels of +0R7O are shipped from 1aharpur, >ube ,ieldF /uckets of +0R7O are shipped
61
from /udge /udge and Cartons and +mall 1acks of +0R7O lubricants are shipped from +C,1
#alda!
&ll these >ubricants are stored at C,& or CN, kno'n as Carring and ,or'arding &gent!
C,A2 $ &n third part, 'ho is engaged in providing an service, either directl or indirectl,
concerned 'ith the clearing and for'arding operations in an manner to an other person and
includes a consignment agent! It is considered as an important asset of a compan in the overall
compan8s marketing V positioning strateg and can serve as a ke differentiator! Channel
e%perience strongl affects end user*s overall perception of the brand8s image!
R! N! /! Udog, #ehndigan3, and >ink Road N-$GI o'n C,& 1atna of +0R7O lubricants!
SSA CSer7o Stockiest Auto6oti7eE
C,& suppl the +ervo products to ++&! No' it is the 3ob of ++& to suppl various +ervo products
to various +ervo Upress, /azaar traders, +ervo shops, Retail Outlet, ,leet transport and O0#*+ at
district and block level!
62
RESEARCH
METHODOLOGY
63
RESEARC& MET&OOLOG$
The research methodolog is the specification of methods and procedures for ac(uiring the
needed data to solve the problem! -ere for the market understanding of servo <T, the research
method adopted is e%plorator in nature!
E/5loratory researc0 6et0o.
The main focus for doing e%plorator research is to gain insights and familiarit for future
product! -ere the data can be both (ualitative and (uantitative! The main problem in e%plorator
research is there 'ill be no earlier studies to refer!
RESEARC& T$PE
The research is (ualitative and (uantitative in nature! It is a structured, standardized and
(uestionnaire based face$to$face intervie'!
SO'RCE O, ATA
64
The source of data is primar! The responds 'ere collected from the samples on a face Mto$face
intervie' tpe!
PRIMAR$ ATA
The primar data refers to the information obtained first handed b the researcher for the specific
purpose of the stud! -ere the primar data 'as collected b the method of surve using a
structured (uestionnaire form !Data has been collected from O0#s in the 1atna area!
RESEARC& INSTR'MENT
+tructured (uestionnaire 'as generated using open$ended (uestions!
SAMPLICNG 'NIT
The sampling unit is that of W'ho is to be surveedX! I have surveed O0#s in 1atna!
Sa65le Si@e(
The sample size is ;I !'hich includes O0#s in 1atna!
65
ata analysis
66
?
inter5retation
#" 80ic0 co65anyFs lubricant you use for your 7e0icles 3
INDIAN OIL 45%
CASTROL OIL 30%
BP OIL 15%
OTHERS 10%
67
'()
*+)
,()
,+)
I-.I- OIL
C%$!OL OIL
BP OIL
O$&#!%
Inter5retation2 according to the various data 'e find that <BL vehicle o'ner used IOC> for
there vehicles !because the think it is the best lube in the market!
)" On 80at basis you 5urc0ase t0e lube 5ro.ucts3
"OMP21E *M2>F 35D
P:*"F 2!D
GH2L*5E 3!D
O57F:S 15D
68
Inter5retation (most of people purchase lube product on the basis of compan image! because
the think if image is good in the market the product is also effective for their vehicle !
*"80at rate you gi7e t0e 5ro.uct on t0e basis of 4uality 3
EXCELLENT 40%
GOOD 35%
AVERAGE 15%
POOR 10%
6
Inter5retation( there are different rate given b the people 'ho use the lube product! most of the
people give the e%cellent rate for the (ualit of IOC> lube products!
+" Is t0e 5rice of IOCL lube 5ro.uct is reasonable for
custo6er 3
res5onse G
$es H=
No )=
7!
1st Gtr
no
Inter5retation( according to the m surve report most of customers satisfied 'ith the price!
The think the price of IOC> lube is reasonable for them!
-"Perce5tion about IOC CSER!OE bran. in ter6s of ser7ice"
6ood ;I
0%cellent BI
+atisfactor ;I
Need improvement :I
71
ser/ice perception
goo#
ec9ellent
satisfactor)
nee# im$rovement
Inter5retation( according to the m surve report BILpeeples perception about IOC> lube is
e%cellent! but some people also 'ant improvement in the IOC> lube products!
I"&o8 long you associate. 8it0 t0e IOCL3
NO of dealer ]ear
:II :B
=B :I
;B IB
72
1!!
75
25
Inter5retation( according to m surve result 'hich is done on the different dealers in patna
BIL dealers are associated 'ith the IOC> for their lube products !
J"20at are a7erage sales of IOCL lube in a 6ont0 3
No of dealers +ale 4in lit!5
:II :BII
=B :III
;B =II
73
%ales
1!! #ealer
75 #ealer
25 #ealer
Inter5retation( according to m surve report most of dealers sas that the average in a month
is appro% :BII lit! overall it it is good sales in a month 'hen compare 'ith the other
competitors!
H"20o are t0e 6ain co65etitors of IOCL in lube 6arket 3
Name of compan L
-1C> ;I
/1C> :I
C&+TRO> TI
0>, :I
74
COMP#$i$O!
7P"L
BP"L
"2S5:OL
FLB
Inter5retation( according to m surve Castrol is one of the ma3or competitor of IOC> in the
lube market in india !rest of compan*s has no ma3or effect on the market !
K" Are you satisfie. 8it0 t0e tec0ni4ue 80ic0 is use. in t0e
ser7o lube 5ro.ucts 3
Respondent L
]es HI
No ;I
75
8!D
2!D
)es no
Inter5retation2 according to the m surve report HIL of m sample size are satisfied 'ith the
techni(ue 'hich is used in the IOC> lube products!
#="20at e/tra facilities are 5ro7i.e. by co65any .ealers 3
Cash discount ;IL
Dealer*s discount ;BL
Transportation BIL
others IBL
76
e0tra pro1t
cas, #iscount
#ealers #iscount
ot,ers
trans$ortation
Inter5retation( there are different kind of e%tra profit 'hich is provided b the IOC> for there
dealers! these are cash discount, dealers discount, transportation and other things! according to
the m surve IOC> provided transportation facilit mostl!
77
,ININGS
?
S'GGESTION
,in.ings
• &ccording to the various data, 'e find that <BL vehicle o'ner used IOC> for their
vehicles !because the think it is the best lube in the market!
• #ost of people purchase lube product based on compan image! /ecause the think if
image is good in the market the product is also effective for their vehicle!
• #ost of the people give the e%cellent rate for the (ualit of IOC> lube products!
78
• &ccording to m surve result, 'hich is done on the different dealers in 1atna BIL,
dealers are associated 'ith the IOC> for their lube products!
• &ccording to m surve report most of dealers sas that the average in a month is appro%
:BII lit! Overall it is good sales in a month 'hen compare 'ith the other competitors!
• &ccording to m surve Castrol is one of the ma3or competitor of IOC> in the lube
market in India !rest of companies has no ma3or effect on the market!
• &ccording to the surve report, HIL of m sample size is satisfied 'ith the techni(ue,
'hich is used in the IOC> lube products!
• There is different kind of e%tra profit, 'hich is provided b the IOC> for their dealers!
These are cash discount, dealers* discount, transportation and other things! &ccording to
the surve, IOC> provided transportation facilit mostl!
• &ccording to the surve, report most of customers satisfied 'ith the price! The think the
price of IOC> lube is reasonable for them!
• &ccording to the surve report BIL, peeples perception about IOC> lube is e%cellent!
-o'ever, some people also 'ant improvement in the IOC> lube products!
S'GGESTIONS ? RECOMMENATIONS
#" The companies should keep pace 'ith time and introduce ne' (ualit and improved
service time to time!
)" Resources should be properl utilized to reduce the prices!
*" Commission and margin should also be given to small dealers and retailers!
+" +ales promotion techni(ues should be used fre(uentl!
7
-" 1rices should be stable and less variable! 1rice differentiation should be removed!
I" The person should be trained b the compan to provide customer satisfaction and to
develop public relation!
J" The companies to penetrate the interior market should use effective sales force!
H" +eason discounts on festivals should be given!
K" Companies should take measures to develop ne' market!
Conclusion(
5raining ,as $la)e# a ver) im$ortant role in ,el$ing *n#ian Oil to reac, t,e
comman#ing ,eig,ts of $erformance% 2n) training .oul# be consi#ere#
successful onl) .,en t,e =no.le#ge gaine# b) t,e $artici$ants is transferre#
to t,e 4ob $erformance% *n a##ition- *n#ian Oil is been ver) successful in
#oing t,at%
*n#ian Oil ,as a ver) strong base of ,uman resource #evelo$ment an# training- it
,as $ercolate# rig,t form t,e to$ to t,e bottom levels- an# t,is ,a# $la)e# a role in
8!
more s)stematic organi?ation #evelo$ment% 5,e training $rogrammes ,ave ,el$e#
t,eir em$lo)ees to im$rove t,eir s=ill an# eIcienc) because of .,ic, t,e) are able
to un#erta=e ne. c,allenges in t,eir .or=% 5,e training an# #evelo$ment
$rogrammes ,el# in *n#ian Oil ,el$e# t,eir em$lo)ees to =no. t,eir strengt, an#
.ea=nesses an# ,el$e# t,em to .or= on t,eir .ea=nesses%
LIMITATIONS
#" The report had to be completed in a selected area 'ithin a specified time limit!
)" The facts V ,igures perceived in this pro3ect report are based on the data collected
from the respondents! -ence their might be chance of having a little difference from
actual!
*" +ample size 'as ver small as compared to the population of 1atna!
+" 1eople did not give full response V there is a bias in some personnel (uestions!
81
-" Data from the secondar source ma have some errors V their ob3ectives ma not be
relevant 'ith the present pro3ect!
1I1LIOGRAP&$
• 1hilip @otler :Gth 0dition, 1earson 1rentice -all ^, ,ifth Impression, ;I:;
• #alhotra N! @!, ;I:;, 1rentice -all India =
th
0dition, W#arketing ResearchX
• Ra3an +a%ena Tata #c 6ro' M -ill 0ducation ;I::4Director, + 1 Zain institute of mgmt! V
Research, #umbai5!
• '''!iocl!co!in
• http2))'''!cheme%cil!gov!in)Indian+cenario!asp%
• http2))indiatransportportal!com);I:
IB)huge$scope$for$specialt$lubricant$in$indian$market) • http2))blogs!klinegroup!com);I:
IG)Gindia_lubricant_ • http2))researchandmarkets)automotive)india
• 1ressconference_;HIB:;_Indian_Oil_;H)B):;
• http2))iocl)sevo)lubricantsandgreases)
• IndianOil_lube_product_sheet
• Investor_presentation_Zune_;I::_Indian_Oil_Corporation_>imited
• '''!slideshare!net
• '''!scribd!com )assignment)lubes)
82
A55en.i/
Luestionnaire(
.#L#!2% 34#%$IO--I!#%
83
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JJJJJJJJJJJJJJJ%
EF2: OB FS52BL*S7MF15 6
JJJJJJJJJJJJJJJJJJJJJJJJJJJ%
1% &ealing .it, follo.ing com$an) of oilK
"om$an) JJJJJJJJJJJJJJ )ear
JJJJJJJJJJJJJJJJJJJ%
2% 2verage salesAmont,K
JJJJJJJJJJJJJJJJJJJJ%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%
3% 7o. man) or#ers #o )ou or#er in a mont, K
888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888
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4% 3,o are t,e com$etitors of )our $ro#uctK
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5% &o )ou t,in= t,at t,e com$an) ,as a long stan#ing imageK Ees A 1o%
ma) be
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8
6% :eason )ou account for )ou saleK
a% Gualit) b% Price% "% ;arieties OLere# #% Bran# 1ame
7% 3,at $romotional tec,ni@ue is being $rovi#ing b) com$an) to )ouK
84
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8
8% 2re )ou satis'e# .it, t,ese tec,ni@ues K Ees A 1O
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% 3,at e9tra facilities are $rovi#e# b) com$an) to )ouK
a% cas, #iscount b% &ealerMs #iscount c% trans$ortation #%
ot,ers%
1!% 3,ic, form of me#ia ,a# lot of im$act on t,e customersK
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88
&ate6 Signature
5,an=s for )our co8o$eration C valuable time
85
"HS5OMF:S GHFS5*O112*:F
12MF 6 888888888888888888888888888888888888888888888888888888888888888888888888 2>F 6
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SFN 6 88888888888888888888888 O""HP25*O1 6
888888888888888888888888888888888888888888888888
1% 3,ic, Oil bran# #o )ou useK
a% *n#ian Oil b% "astrol Oil c% BP Oil #%
ot,ers
2% 3,at #o )ou t,in= about t,e $rice of $ro#uctK
a% 7ig, b% Lo. c% :easonable
3% 7o. #i# )ou come to =no. about t,is bran#K
a% 1e.s$a$er b% Maga?ine c % 5%;% #%
7oar#ings
86
4% 3,at criteria )ou see .,en )ou $urc,ase *n#ian OilK
a% Bran# 1ame b% Price c% Gualit) #% Ot,ers
5% &o )ou feel *n#ian Oil $rice FconomicK EesA 1o% C
3,) K8888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888
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6% *f )ou $urc,ase an) ot,er Oil .,ic, one .ill )ou bu) K
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8
7% &o )ou ,ave an) com$laints K Ees A 1o
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8% 2n) Suggestion
888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888
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&ate6 Signature
5,an=s for )ou co8o$eration C valuable time
87
doc_124639754.docx