I

INTRODUCTION

1.1

ABOUT THE STUDY This report is about the organization study that I had done in RELIANCE INDUSTRIES LIMTED, JAMNAGAR as a part of my curriculum. The organization study at RJIL was to understand the functions and duties of different departments of the organization.

1.2

SCOPE OF THE STUDY The study helps to know about the different departments in RJIL. The study also focuses on its functioning, various rules, and regulations policies etc. followed by each department. The study was undertaken by visiting the Administrative office and the refinery and was done over a period of 24 days.

1.3

OBJECTIVES OF THE STUDY To familiarize the function of the organisation. To familiarize with the different departments in the organisation, the structure and their Functioning. The main objective of the study is to know the mission, vision, strength, and weakness of the organization. To understand how key business processes are carried out in organisations.

1.4

METHODOLOGY The aim was to study different departments in the organization. In order to understand the working of various departments the information was gathered from the employs in the organization. The heads of the different department explained about the departments they are handling and gave me the necessary information that I need. The information was gathered through observation. The information was also gathered from the website and the some records available in the Refinery.

1.5

LIMITATIONS OF THE STUDY Time was the major constraint. To understand this huge organization and its working, the period of 24 days is not at all enough. All the employees were very busy with their work yet could spare a few seconds for my study. There are certain datas which would reveal a part o f the business secret that the company retains for the competitive edge. Such information was obviously kept undisclosed.

II

BUSINESS ENVIRONMENTAL ANALYSIS

2.1

THE PETROLEUM INDUSTRY The petroleum industry includes the global processes of exploration, extraction, refining, transporting (often by oil tankers and pipelines), and marketing petroleum products. The largest volume products of the industry are fuel oil and gasoline (petrol). Petroleum (oil) is also the raw material for many chemical products, including pharmaceuticals, solvents, fertilizers, pesticides, and plastics. The industry is usually divided into three major components: upstream, midstream and downstream. Midstream operations are usually included in the downstream category. Petroleum is vital to many industries, and is of importance to the maintenance of industrial civilization in its current configuration, and thus is a critical concern for many nations. Oil accounts for a large percentage of the worlds energy consumption, ranging from as low of 32% for Europe and Asia, up to a high of 53% for the Middle East. Other geographic regions consumption patterns are as follows: South and Central America (44%), Africa (41%), and North America (40%). The world consumes 30 billion barrels (4.8 km) of oil per year, with developed nations being the largest consumers. The United States consumed 25% of the oil produced in 2007.The production, distribution, refining, and retailing of petroleum taken as a whole represents the world's largest industry in terms of dollar value.

PEST ANALYSIS

Political factors Crude oil is one of the most necessitated worldwide required commodity. Any slightest fluctuation in crude oil prices can have both direct and indirect influence on the economy of the countries. The volatility of crude oil prices drove many companies away. Therefore, prices have been regularly and closely monitored by economists. Now a days prices have shoot up to record levels of USD 125 per bbl. This is an increase of nearly 70% from that of the previous year. The consumption level of oil is projected to be rise by 1.2 million bbl/d in the year 2012. The consumption of China is presumed to be rise by 0.4 million bbl/d in current year, as it has already registered an increase of 0.8 million bbl/d in March. Crude oil prices act like any other product cost with more variation taken place during shortage and excess supply. Studies have conducted to analyze the impact of rise in crude oil price to the economic growth in the OPEC (Organization of Petroleum Exporting Countries) countries. It has been observed that $10 in the crude oil price means decrease in the economic growth of the OPEC countries by0.5%. This rise in prices account to have more influence on the economic condition of developing countries. Any massive increase or decrease in crude oil has its impact on the condition of stock markets in throughout the world. The stock exchanges of every country keep a close eye on any up and downward movement of the crude oil price. India fulfils its major crude oil requirements by importing it from oil producing nations. India meets more than 80% of its requirement by importing process. Therefore, any upward

and downward motion of prices are closely tracked in the domestic marketplace. Many times it has been recorded that prices of essential products like crude also acts as a prime driver in becoming reason of up and down movement of price. Keeping in view the conditional status of present scenario, most of the observers at the international arena is much more interested in knowing the current oil price and the outcome of this price burst. These has become a hot bound question in all over world. There tend to be exist two schools of thought. One side argues that high prices are cyclical and arise due to the coincidence occurrence of potentially reversible factors which all are going in the same direction. But the other school of thoughts opine that there is a fundamental structural change in the oil market which is pointing towards the shortage of investment from a decade. Both the thoughts are important. As if the prices are cyclic in nature, there result will not exist forever but if they are structural then they will tend to be stay for a longer time period. Any fluctuation in crude oil affects the other industrial segments also. Higher crude oil price implies to the higher price of energy, which in turns negatively affects other trading practices that are directly or indirectly depends on it. Crude Oil has been traded in throughout the world and there prices are behaving like any other commodity as swinging more during shortage and excessiveness. In the short term, price of crude oil is influenced by many factors like socio and political events, status of financial markets, whereas from medium to long run it is influenced by the fundamentals of demand and supply which thus results into self price correction mechanism. This sustained movement in the northern side underlines some of the fundamental changes in the marketplace. On the demand supply, where in the past the more and more consumption was come from the OPEC countries, especially the US but in today's date much of the

incremental demand flow is from emerging economies. Particularly China and India which have recorded more than 40% contribution in the incremental global consumption during the time period of 2010-12. International price of crude oil is projected to shoot up to 100 million barrels per day by 2015.While demand may touch to a great height, supply will juggle to keep up the pace. The production from existing sources has been reduced by 4% per annum, which implies that around 3 million barrels per day of new capacity is required to be added in every year for offsetting this declination. There are innumerable factors which influence the price movement of crude oil in throughout the world. Like methods and technology using for increase the oil production, storing up of crude oil by rich and prosperous countries, changes introduced in tax policy, social and political issues etc. In recent years many factors have emerged as the key figures in influencing the price index of crude oil in throughout the world.

Economic factors This industry is extremely open; trade flows are large compared to production. And there is considerable overlap between oil production and refining internationally, and to some extent in India. So we begin with a brief discussion of the international petroleum industry and its components refining being one of them. Petroleum is extracted from underground reserves; then it is cracked or refined into end products for various uses. The petroleum industry thus has two parts: an oil exploration and production industry upstream and a refinery industry downstream. Most oil producers also own refineries. But the reverse is not true; a high proportion of oil is sold to refinery companies that do not produce crude oil. Sedimentary rocks

in which hydrocarbons are trapped often hold gas, sometimes in association with crude oil and sometimes alone. It consists mostly of methane, which is lighter than air and toxic. It therefore requires airtight tanks for storage and similarly leak-proof pipes or trucks for transport, which raise its capital costs. Associated gas was flared in early years of the industry; it is still flared at remote or minor wells where the cost of its collection and transport would be high, or often re injected into the oilfield to maintain pressure which forces oil up to the surface. But where the quantities are large enough, natural gas is mined and traded. It is mainly used as an industrial, domestic and vehicular fuel. Motor vehicles run almost exclusively on petrol and high-speed diesel oil, both fuels derived from mineral oil although they can be modified to run on certain biofuels. Vehicles are so widely dispersed that they require an extensive distribution system for these two refinery products. As motor vehicle use has spread across the world, it has brought along with it petrol pumps, logistics, storage and supply of fuels. There is thus a third part of the petroleum industry downstream from refineries which distributes the products. It is owned by refineries in most countries. But this is not inevitable. Some countries have distribution chains that are independent of producers and refiners; and in countries which do not have refineries, distribution is undertaken by either local or foreign oil companies. Oil has collected in pools and seeps for thousands of years. The Chinese are recorded as having extracted oil from wells 800 feet deep through bamboo pipes in347; they used it to evaporate brine and make salt. American Indians used to put it to medicinal uses. Persians, Macedonians and Egyptians used tars to waterproof ships. Babylonians used asphalt in the eighth century to construct the citys walls, towers and roads. But the easily available oil was not put to any mass use because the crude itself was not a good fuel; it gave

out much soot and smoke. A distillation process using a retort was invented by Rhazes (Muhammad ibnZakariya Razi) in Persia in the 9th century; liquid heated in it vaporized, passed through a curved spout and condensed in another container. The process could be used to make kerosene; but it was more often used to make alcohol and essence of flowers for perfume. It was a batch process, its fuel consumption was high, and it was not equally efficient at distilling kerosene from all crudes. A more efficient and reliable distillation process came out of a series of inventions after 1846. The last invention was the invention of oil fractionation in 1854 by Benjamin Silliman, a professor of science in Yale. It used a vertical column which separated components more efficiently, and which could be used continuously. Oil was first produced in Titusville, Pennsylvania (USA) in 1859 by one Edwin LDrake, who refined it into kerosene, which was then used as an illuminant. Electricity did not emerge as an illuminant till the Edison Electric Light Company was founded in 1878. Well into the 20th century, kerosene, gas and electricity continued to compete as illuminants. Whilst the use of gas as an illuminant has virtually disappeared, a large population, especially in India, continues to use kerosene as illuminant. The invention of the motor car by Karl Friedrich Benz in 1885 created a market for petrol, a new refined product (petrol is called Benzin in Germany, but is not named after Karl Benz). In 1898, Rudolf Diesel invented an engine in which oil was ignited by compression; the diesel engine he invented came to power larger vehicles, principally trucks and buses. Diesel engines used a different fuel, which was named diesel oil. After this, the production and use of motor vehicles spread rapidly in the United States, especially after 1908 when Henry Ford began mass manufacture of his Model T; and petroleum and diesel oil became the most important refined products, first in the US

and progressively across the world.The study finds that government intervention, and slow responsiveness to changing conditions has contributed to shortages in the past, which in turn leads to action by the incumbents that look like, but is not, anti-competitive behaviour. Unequal access to raw material, as well as export/import curbs, are the key issues affecting the creation of a level playing field. It is the last two as well as ready availability of information on costs and prices across the value. Technological effects Timely, hands-on guide to environmental issues and regulatory standards for the petroleum industry Environmental analysis and testing methods are an integral part of any current and future refining activities. Today's petroleum refining industry must be prepared to meet a growing number of challenges, both environmental and regulatory. Environmental Analysis and Technology for the Refining Industry focuses on the analytical issues inherent in any environmental monitoring or clean-up program as they apply to today's petroleum industry, not only during the refining process, but also during recovery operations, transport, storage, and utilization. Designed to help today's industry professionals identify test methods for monitoring and clean-up of petroleum-based pollutants, the book provides examples of the application of environmental regulations to petroleum refining and petroleum products, as well as current and proposed methods for the mitigation of environmental effects and waste management. Petroleum technology, refining, and products, and reviews the nomenclature used by refiners, environmental scientists, and engineers. Environmental technology and analysis, and provides information on environmental regulation and the impact of refining.

Coverage includes: * In-depth descriptions of analyses related to gaseous emissions, liquid effluents, and solid waste * A checklist of relevant environmental regulations * Numerous real-world examples of the application of environmental regulations to petroleum refining and petroleum products * An analysis of current and proposed methods of environmental protection and waste management. Efficient reliable and competitively priced energy supplies are prerequisite for accelerating economic growth. India is currently worlds fifth largest consumer of energy accounting for 3.9% of worlds annual energy consumption. USA, China, Russian federation and Japan are the top four consumers. Indias import dependence on crude oil and petroleum products is more than 70%. Realization of high economic growth aspirations by the country in the coming decades, calls for rapid development of energy market. The India Hydrocarbon Vision-2025 report, which encapsulates Governments long-term policy for this sector enunciate therein the longterm policy covering exploration, refining, marketing infrastructure, gas and all other related matters in the hydrocarbon sector. The national endeavour is to bridge the ever-increasing gap between demand and supply of petroleum products in India by intensifying exploratory efforts for oil and gas in the Indian sedimentary basins and abroad supported by other alternative sources

of energy like Coal Bed Methane (CBM), Gas Hydrates, Coal Liquefaction, Ethanol and Bio-diesel etc.Heavy oil consists of over 40% of the hydrocarbon resources in the world. This does not flow at surface conditions. Optimizing the recovery of hydrocarbons from existing producing fields remain an existing challenge. Social effects The carrying capacity is the number of individuals that an area can support without sustaining damage. Carrying capacity is exceeded if so many individuals use an area that their activities cause deterioration in the very systems that support them. Exceeding the carrying capacity sometimes harms an environment so severely that the new number who can be supported is smaller than the original equilibrium population. The carrying capacity would then have declined, perhaps permanently. Any number of elements or systems can be hurt by overuse. A field can be grazed down until the root systems of grasses are damaged; or so much game can be hunted off that food species are effectively extripated. Now, the forages that ate the grass or the predators that killed the game have lost a food source. In effect, the carrying capacity has been exceeded so that the population dependant on the areas productive systems is worse off than it was originally.

5.1

SWOT ANALYSIS STRENGTH 1. Increased profitability ratios 2. Substantial increase in exports 3. Dominant foothold in the market 4. Vertical integration

WEAKNESS 1. Lack of midstream operations 2. Declining working capital

OPPORTUNITIES 1. Strategic investment in supply chain business 2. Opportunities in unconventional energy sources 3. Retail business opportunities 4. Strategic expansions

THREAT 1. Downturn in the refining sector 2. Low cost petrochemical products 3. Highly competitive domestic market

BIBLIOGRAPHY

The audited financial statements www.ril.com accessed on 15th April, 2013 www.eai.com accessed on 20th April, 2013 The changing trend, page 138-150, The Global Refinery Outlook 2012 edition. www.moneycontrol.com accessed on 2nd May, 2013.