Market

Oil and gas are two of the worlds most

researched subjects; for both are energy
sources which drive the well-being of a
country and the rising ambitions of its
people. In 2010, India consumed 2.98
million barrels of oil per day, making
the country the worlds 11th largest
consumer, importing more than 85%
of its requirement. Its production at
878,700 barrels per day was the 24th
largest in the world. India had proven
reserves of between 5.60 and 5.80
billion barrels. Given the insatiable
appetite for energy Indian industry is
displaying, the countrys consumption
has been projected at some 4.90 million
barrels per day, a decade from now
(Source: CIA World Factbook).
Its easy to see that the role of Indias
oil companies in securing the countrys
energy needs is a crucial one. In this
critical area, IndianOil leads the national
oil companies shouldering enormous
responsibility. The company owns and
operates ten of Indias twenty refineries,
which offer a capacity of more than
65.70 million metric tonnes per annum
(MMTPA) of crude corresponding to some
1.30 million barrels per day. This gigantic
organisation accounts for approximately 49%
of Indias petroleum product market share.
Given the needs of the country, IndianOils
business interests straddle the entire
hydrocarbon value chain from refining, pipeline
transportation and marketing of petroleum
products to exploration & production of crude
oil and gas and marketing of natural gas and
petrochemicals. This flagship national oil major
has subsidiaries in Sri Lanka, Mauritius and the
United Arab Emirates. Amongst its long-term
ambitions is to seek business opportunities in
the energy markets of Asia and Africa.
Achievements
Indian Oil Corporation Limited (IndianOil) is the
leading Indian corporate in the Fortune Global
500 listing, ranked at the 125th position in 2010.
It is also the 20th largest petroleum company in
the world. Besides topping the corporate listings
of leading financial dailies and periodicals,
IndianOil was ranked 3rd in refining and
marketing and 14th in overall performance in
Asia in Platts 250 Global Energy Company
rankings for 2009/10. Its a matter of record
that IndianOil also owns and
operates the largest network
of cross-country crude oil and
product pipelines, spanning about
10,900 kilometres.
For a company dealing in
such large numbers its easy to
forget that it also owns several
proprietary formulations. The
Corporations world-class research
and development (R&D) centre is,
perhaps, Asias finest, holding 215
active patents, including 109 that
are also registered internationally.
This remarkable facility has won
recognition for its pioneering work
in lubricants formulation, refinery
processes, pipeline transportation
and the search for alternative fuels. IndianOil
has so far spent more than Rs. 1000 crore
(US$ 222.20 million) in R&D
initiatives.
Always concerned for its
people, the Corporation has
in place comprehensive safety,
health and environment
management systems at all
its operating units and
installations. These are
periodically reviewed
and upgraded.
Environment management
systems of all its refineries
and major marketing and
pipeline installations are
certified to ISO 14001
standards.
History
Incorporated in 1959 as Indian Oil Company
Limited, it was renamed Indian Oil Corporation
Limited on 1st September 1964 when Indian
Refineries Limited was merged with it.
IndianOils first refinery at Guwahati was
inaugurated in 1962 by the then Prime
Minister, Jawaharlal Nehru, followed by the
commissioning of the Barauni Refinery in 1964
and Koyali (Gujarat) Refinery in 1965. In the
decade that followed, the company made rapid
strides in expanding its infrastructure. In1981,
the Digboi Refinery and Assam Oil Companys
marketing operations were vested in IndianOil.
These became the Assam Oil Division of
the company. This was followed by the
commissioning of the Mathura Refinery in 1983.
In the decade beginning 1984, IndianOil
refineries embarked on large-scale revamping,
modernisation and de-bottlenecking projects to
augment capacities. Its seventh refinery at
Panipat was commissioned in 1998. In the same
year, the company became a Navaratna
enterprise. In the millennium year it crossed the
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magical mark of Rs. 100,000 crore (US$ 22.20
billion) in turnover the first corporate in India
to do so.
Stand-alone refining companies, Chennai
Petroleum Corporation Limited and Bongaigaon
Refinery & Petrochemicals Limited (BRPL) were
acquired as subsidiaries in 2001 as was the IBP
Company Limited, the following year. This was
followed by the launch of two overseas
subsidiaries, Lanka IOC in 2003 and IndianOil
Mauritius Limited in 2004. IBP was merged with
the parent company in 2007, followed by the
merger of BRPL in 2009. The elevation to the
enhanced Maharatna status in 2010 gave the
Corporation greater autonomy and operational
flexibility and opened a new chapter in
IndianOils growth story.
Product
IndianOils impressive numbers are supported
by a beehive of activity at the ground level. The
Corporation touches the lives of millions of
people every day through a countrywide
network of 35,600 sales points, 140 bulk-storage
depots, 96 aviation fuel stations and 84 Indane
liquefied petroleum gas (LPG)
bottling plants. It operates 18,890
petrol and diesel stations in
the country and enjoys a
dominant share of the
bulk consumer business
provided by the railways,
aviation, state transport
undertakings and
industrial- agricultural-
and marine- sectors.
Its powerful brand,
SERVO, offers a range of
lubricants and greases and
enjoys the approval
of major original
equipment
manufacturers and
major automobile
companies. Breaking its
India confines, SERVO is
fast emerging as a global
brand with wide acceptance
in the Middle East, Africa and the
CIS region.
The Corporations LPG brand, Indane, is
Indias largest cooking gas brand serving the
needs of 60 million households in 2879 markets.
The gas cylinders are delivered through a
network of 5253 distributors. Given its vast
validation, Indane was accorded the coveted
Superbrand status in 2009.
A more recent entrant in IndianOils armoury
is Autogas. The brand, available at 300 stations, is
already a leader in the auto LPG segment.
IndianOils ISO-9002 certified Aviation
Service commands 62% market share in the
rapidly growing aviation fuel business while
XTRAPREMIUM petrol and XTRAMILE
diesel, its high octane offerings, have made
a significant impact in the market.
Recent Developments
Coinciding with its Golden Jubilee in 2009,
IndianOil adopted a new corporate vision
to be recognised as the energy of India
and to emerge as a globally admired
company.
To achieve these objectives the
Corporation has developed a well laid-out road
map using vertical integration upstream into
oil exploration and production and downstream
into petrochemicals diversification into
natural gas marketing and globalisation of its
downstream operations as its cornerstones.
IndianOil has also made forays into alternative
energy options such as bio-fuels, hydrogen, wind,
solar and nuclear power.
With substantial investments in state-of-the-
art world-scale plants at Panipat and Koyali,
IndianOil, today, offers a full slate of
petrochemical products under the brand
name PROPEL.
In oil exploration & production, IndianOils
domestic portfolio comprises eleven oil and gas
blocks and two coal-based methane (CBM)
blocks, besides nine overseas blocks spread
across Libya, Iran, Gabon, Nigeria, Timor-Leste
and Yemen. With sales nudging 1.90 million
tonnes per annum, natural gas marketing is
another thrust area for IndianOil.
Promotion
As far back as the 1970s, IndianOil had already
recognised that leadership could only be
achieved through customer support. In this
pursuit IndianOil introduced multi-purpose
distribution centres in
select rural and semi-
urban markets, which, in
addition to petroleum
products also dispensed
medicines, farm
equipment and other
essential daily-use
commodities.
Today, in
keeping with
the evolving
environment, it has
unveiled exclusive
XTRACARE petrol
and diesel stations
in urban markets while on
highways it has unveiled food
courts, first aid, rest rooms,
dormitories, spare parts
shops, etc.
But a part of India still requires more basic
support. To cater to them, IndianOil has
launched Kisan Seva Kendra outlets, which while
acting as one-stop shops for petroleum fuels
and lubricants, also sell hybrid seeds, fertilisers,
pesticides, farm implements, spare parts for
trucks, tractors and pump sets.
Brand Values
IndianOil prides itself on being an academy
company with a score of full-fledged training
centres across the country that help build skills
and competencies of its people. Besides the
IndianOil Institute of Petroleum Management
at Gurgaon, the Corporations apex learning
centre, the IndianOil Management Centre
for Learning at Mumbai and the IndianOil
Management Academy at Haldia have emerged
as world-class training and management
institutes.
As a leading public sector enterprise,
IndianOil has successfully combined its
corporate social responsibility with its business
offerings. The Corporation takes pride in
its continuous investments in innovative
technologies and solutions for sustainable
economic growth and in developing techno-
economically viable and environment-friendly
products and services.
www.iocl.com
63 BUSINESS SUPERBRANDS
IndianOil is Indias largest commercial
enterprise with sales turnover of Rs. 271,074
crore (US$ 60.20 billion) and profit of
Rs. 10,221 crore (US$ 2.30 billion) for the
year 2009/10
The Corporation is investing Rs. 43,400 crore
(US$ 9.60 billion) between 2007 and 2012 for
business expansion and product quality up
gradation
IndianOil has been conferred the coveted
Readers Digest Trusted Brand Gold Award
under the Petrol Station category, for the
fourth time in a row
Two of IndianOils energy brands SERVO
lubricants and Indane LPG cooking gas have
also earned the coveted Superbrand status
IndianOil is the second largest marketer of LPG
globally, delivering 1.20 million cylinders each
day
Between one sunrise and the next, IndianOil
Aviation Service refuels over 1500 flights
With over 1.30 million cards in circulation
IndianOils XTRAPOWER fleet card is the
largest loyalty programme in the country
IndianOils Digboi Refinery, commissioned in
1901, is the oldest operating refinery in the
world
At 18,380 feet above sea level, in a remote
part of the worlds highest motorable road in
Leh Ladakh, IndianOil operates the highest
altitude petrol and diesel station in the world
IndianOil offers consultancy in refinery and
pipelines projects, refinery revamp, turnaround,
operations and maintenance and refining
process technologies
Things you didnt know about
IndianOil
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