Sei sulla pagina 1di 66

(2010-2011)

PROJECT REPORT
ON

SUBMITTED BY:
RAVI PUROHIT
BBA FINAL YEAR

1
Acknowledgement

A formal statement of acknowledgement will hardly meet the ends of the justice in
the matter of expression of my deeply felt sincere and allegiant gratitude to all
those who encouraged me and helped me during my study.

It gives me immense pleasure, to express my unfeigned and sincere thanks and


gratitude to Mr. Manoj Mital faculty Onkarmal somani college, jodhpur for her
assistance, advice and support throughout the preparation of this report.

I express my sincere thanks to our beloved principal Prof. N.L.Sahel, for giving
valuable support and encouragement in preparing this report.

I am also thankful to Mr.Rajesh chodhary for giving me valuable information


regarding his concern.

I am also very thankful to all my respondents who took time out of their busy
schedules and helped me in carrying out this project.

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PREFACE
Raj Automobiles and filling station is situated on the main chopasni road, jodhpur. The
properitor Mr. Rajesh Chodhary Mrs. Rajesh Chodhary. They have occupied the big place for
their buisness

They have opened two branch in jodhpur

1. Chopasni Road Branch.


2. Dangiavas Branch.
In the both branch they have good space for their buisness and office work in the main they have
good Buisness places.

They have two type of buisness:-

1. Filling Station:- They have sevral nozel for filling the petrol,

They also have every type of petrol

1. Xtrapremium
2. 2T Mix
3. Xtramile
4. Normal petrol and disel.

1. Wheel alignment:- The wheel alignment business is also competitive in today’s


market. For only this reason they give them too many space for this business
also.

They have sufficient staff for their three type of work:-


1. Filling work
2. Office work
3. Wheel Alignment work
The staff of all work are to supportive and Workable at all condition. They have two
shift for their filling work and office work.

At the and I can only give the my gratitude to Mr. and Mrs, Rajesh Chodhary and their staff for
thieir help and Support for completing this project work.

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TABLE OF CONTENTS PAGE NO
1. Introduction 6

2. Company Profile 8

• Petrochemicals

• Oil Exploration & Production

• Gas

• Bio-fuels

• Wind Energy Business

• Consultancy

• Globalization Initiatives

3. Objectives & Obligations 12

4. Directors review 23
• Refineries
• Pipelines
• Marketing
• Research & development
• Planning & business development
• Finance
• Human resources

5. Awards and recognition 33

6. Management 34

7. Major units 40

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8. Major projects 42

9. Business 46
• Refining
• Pipelines
• Marketing
• R&D
• Petrochemicals
• Gas
• E&P

10. Initiatives 57
• Integrity pack

• Environment

• IndianOil Academic Scholarships

• IndianOil Sports Scholarship

• Corporate Social Responsibility

• Global Compact Initiative

11. Recognitions 64

• Distinctions
• Awards & Accreditations

12. Annexure 74

13.An Introduction to Kamakshi Auto Service 80

14. Conclusion, Suggestion & finding 81

15. Bibliography 82

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INDUSTRY PROFILE
IOC (Indian Oil Corporation) was formed in 1964 as the result of merger of Indian Oil Company
Ltd. (Estd. 1959) and Indian Refineries Ltd. (Estd. 1958).

Indian Oil Corporation Ltd. is the highest ranked Indian company in the prestigious Fortune
‘Global 500’. It was ranked at 135th position in 2007. It is also the 20th largest petroleum
company in the world.

Indian Oil Corporation Ltd. is currently India's largest company by sales with a turnover of Rs.
247,479 crore (US $59.22 billion), and profit of Rs. 6963 crore (US $ 1.67 billion) for fiscal
2007.

Indian Oil and its subsidiaries today accounts for 49% petroleum products market share in India.

Indian Oil group has sold 59.29mn tonnes of Petroleum including 1.74mn tonnes of Natural gas
in the domestic market and exported 3.33mn tonnes in the yr 2007-08.

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VISION OF IOCL

A major diversified, transnational, integrated energy company, with national leadership and a
strong environment conscience, playing a national role in oil security & public distribution.

MISSION OF IOCL

IOCL has the following mission:

• To achieve international standards of excellence in all aspects of energy and diversified


business with focus on customer delight through value of products and services and cost
reduction.
• To maximize creation of wealth, value and satisfaction for the stakeholders.
• To attain leadership in developing, adopting and assimilating state-of- the-art technology
for competitive advantage.
• To provide technology and services through sustained Research and Development.
• To foster a culture of participation and innovation for employee growth and contribution.
• To cultivate high standards of business ethics and Total Quality Management for a strong
corporate identity and brand equity.
• To help enrich the quality of life of the community and preserve ecological balance and
heritage through a strong environment conscience.

VALUES OF IOCL

Values exist in all organizations and are an integral part of any it. Indian Oil nurtures a set of
core values:

• CARE
• INNOVATION
• PASSION
• TRUST

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COMPANY PROFILE

India’s flagship national oil company and downstream petroleum


major, Indian Oil Corporation Ltd. (IndianOil) is celebrating its
Golden Jubilee in 2009. It is India's largest commercial enterprise,
with a sales turnover of Rs. 2, 85,337 crore – the highest-ever for
an Indian company – and a net profit of Rs. 2, 950 crore for the
year 2008-09. IndianOil is also the highest ranked Indian company
in the prestigious Fortune 'Global 500' listing, having moved up 11 places to the 105th position
in 2009. India’s Flagship National Oil Company Incorporated as Indian Oil Company Ltd. on
30th June, 1959, it was renamed as Indian Oil Corporation Ltd. on 1st September, 1964
following the merger of Indian Refineries Ltd. (established 1958) with it. IndianOil and its
subsidiaries account for approximately 48% petroleum products market share, 34% national
refining capacity and 71% downstream sector pipelines capacity in India.

For the year 2008-09, the IndianOil group sold 62.6 million tonnes of petroleum products,
including 1.7 million tonnes of natural gas, and exported 3.64 million tonnes of petroleum

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products.

The IndianOil Group of companies owns and operates 10 of India's


20 refineries with a combined refining capacity of 60.2 million
metric tonnes per annum (MMTPA, .i.e. 1.2 million barrels per
day). These include two refineries of subsidiary Chennai Petroleum
Corporation Ltd.

The Corporation's cross-country network of crude oil and product pipelines, spanning over
10,000 km and the largest in the country, meets the vital energy needs of the consumers in an
efficient, economical and environment-friendly manner.

IndianOil is investing Rs. 43,400 crore (US $10.8 billion) during the period 2007-12 in
augmentation of refining and pipeline capacities, expansion of marketing infrastructure and
product quality upgradation as well as in integration and diversification projects. Network
Beyond Compare As the flagship national oil company in the downstream sector, IndianOil
reaches precious petroleum products to millions of people everyday through a countrywide
network of about 35,000 sales points. They are backed for supplies by 167 bulk storage terminals
and depots, 101 aviation fuel stations and 89 Indane (LPGas) bottling plants. About 7,335 bulk
consumer pumps are also in operation for the convenience of large consumers, ensuring products
and inventory at their doorstep.

IndianOil operates the largest and the widest network of petrol & diesel stations in the country,
numbering over 18,278. It reaches Indane cooking gas to the doorsteps of over 53 million
households in nearly 2,700 markets through a network of about 5,000 Indane distributors.

IndianOil's ISO-9002 certified Aviation Service commands over 63% market share in aviation
fuel business, meeting the fuel needs of domestic and international flag carriers, private airlines
and the Indian Defence Services. The Corporation also enjoys a dominant share of the bulk
consumer business, including that of railways, state transport undertakings, and industrial,
agricultural and marine sectors. Technology Solutions Provider IndianOil's world-class R&D
Centre is perhaps Asia's finest. Besides pioneering work in lubricants formulation, refinery

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processes, pipeline transportation and alternative fuels, the Centre
is also the nodal agency of the Indian hydrocarbon sector for
ushering in Hydrogen fuel economy in the country. It has set up a
commercial Hydrogen-CNG station at an IndianOil retail outlet in
New Delhi this year. The Centre holds 214 active patents,
including 113 international patents.

IndianOil has joined the league of global technology providers last year with the selection of its
in-house developed INDMAX technology (for maximising LPGas yield) for the 4 MMTPA
Fluidised Catalytic Cracking (FCC) unit at the Corporation's upcoming 15 MMTPA grass roots
refinery at Paradip in Orissa, as well as for the FCC unit coming up at BRPL.

A wholly-owned subsidiary, IndianOil Technologies Ltd., is engaged in commercialising the


innovations and technologies developed by IndianOil's R&D Centre. Customer First At
IndianOil, customers always get the first priority. New initiatives are launched round-the-year for
the convenience of the various customer segments.

Exclusive XTRACARE petrol & diesel stations unveiled in select urban and semi-urban markets
offer a range of value-added services to enhance customer delight and loyalty. Large format
Swagat brand outlets cater to highway motorists, with multiple facilities such as food courts, first
aid, rest rooms and dormitories, spare parts shops, etc. Specially formatted Kisan Seva Kendra
outlets meet the diverse needs of the rural populace, offering a variety of products and services
such as seeds, fertilisers, pesticides, farm equipment, medicines, spare parts for trucks and
tractors, tractor engine oils and pump set oils, besides auto fuels and kerosene. SERVOXpress has
been launched recently as a one-stop shop for auto care services.

To safeguard the interest of the valuable customers, interventions like retail automation, vehicle
tracking and marker systems have been introduced to ensure quality and quantity of petroleum
products. Widening Horizons To achieve the next level of growth, IndianOil is currently forging
ahead on a well laid-out road map through vertical integration— upstream into oil exploration &
production (E&P) and downstream into petrochemicals – and diversification into natural gas
marketing, bio fuels, wind power projects, besides globalisation of its downstream operations.

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Petrochemicals
In petrochemicals, IndianOil is envisaging an investment of Rs. 20,000 crore (US$ 4 billion) by
the year 2011-12. Through the world’s largest single-train Linear Alkyl Benzene (LAB) plant
with an annual capacity of 1,20,000 tonnes set up at its Gujarat Refinery, the Corporation has
already captured a significant market share of LAB in India, besides exporting the product to
Indonesia, Turkey, Thailand, Vietnam, Norway and Oman.

A world-scale Paraxylene/Purified Terephthalic Acid plant (annual capacities: PX - 3,63,000


tonnes, PTA – 5,53,000 tonnes) for polyester intermediates is already in operation at Panipat,
while a Naphtha Cracker with a capacity of 800,000 tonnes of ethylene per annum, 6,00,000
TPA of Propylene, besides an annual production of 3,25,000 TPA of Mono Ethylene Glycol,
1,40,000 TPA of Butadiene, 6,50,000 TPA of Polyethylene and 6,00,000 TPA of Polypropylene,
equipped with downstream polymer units is to be completed by December 2009 at Panipat.

A grassroots refinery at Paradip is proposed to be completed by the year 2011-12, subsequently


followed by the setting up of an integrated petrochemical plants with an estimated investment of
Rs 12,000 crore (US$ 2.5 billion) which will further strengthen the Corporation’s presence in the
sector.

Oil Exploration & Production


In E&P, IndianOil has non-operator participating interest in seven oil & gas blocks awarded
under various NELP (New Exploration Licensing Policy) rounds and two Coal Bed Methane
blocks in India, in consortium with other companies. In addition, IndianOil has two onshore type
‘S’ NELP blocks, with 100% participating interest (PI) and sole operatorship. It also has
participating interest in an onshore block in Assam and Arunachal Pradesh through a farm-in.

Overseas ventures of the Corporation includes two blocks (86 and 102/4) in Sirte Basin and
Areas 95/96 in Ghadames basin of Libya, Farsi Exploration Block in Iran, onshore farm-in
arrangements in one block in Gabon, one on land block in Nigeria, one deepwater offshore block
in Timor-Leste and two onshore blocks in Yemen. In all, IndianOil has 12 domestic exploration
blocks, including 2 blocks where gas discoveries have been made and 9 overseas exploration

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blocks, & the Farsi block in Iran where commerciality of gas discovery has been established.
IndianOil has incorporated Ind-OIL Overseas Ltd. – a special purpose vehicle for acquisition of
overseas E&P assets – in Port Louis, Mauritius, in consortium with Oil India Ltd. (OIL).

Gas
In natural gas business, IndianOil sold 1.849 million tonnes of the product in 2008-09. A
technology innovation has been initiated to reach LNG (Liquefied Natural Gas) directly to the
doorstep of bulk consumers in cryogenic containers for industrial as well as captive power
applications.

To consolidate its city gas distribution (CGD) business, IndianOil has tied up with several
players such as Adani Energy, Reliance Gas Corporation, OIL and ONGC, etc., to set up joint
ventures in various cities of India. The Corporation has also entered into franchise agreements
with CGD players such as Indraprastha Gas Ltd., Mahanagar Gas Ltd., Adani Energy Limited,
GEECL, SITI Energy and GSPC Gas Ltd. to market CNG through its retail outlets

Bio-fuels
To straddle the complete bio-fuel value chain, IndianOil formed a joint venture with the
Chhattisgarh Renewable Development Authority (CREDA) with an equity holding of 74% and
26% respectively. IndianOil CREDA Biofuels Ltd. has been formed for carrying out farming,
cultivating, manufacturing, production and sale of biomass, bio-fuels and allied products and
services.

A pilot project of jatropha plantation on 600 hectares of revenue wasteland is underway in


Jhabua district in Madhya Pradesh to ascertain the feasibility of revenue land-based commercial
biodiesel units and to develop benchmarks for plantation costs and output.

IndianOil has also signed an MoU with M/s Ruchi Soya Industries Ltd. to take up contract
farming on one lakh hectare of private and panchayat wasteland in the state of Uttar Pradesh.

Wind Energy Business


IndianOiI has forayed into wind energy business with the commissioning of a Rs. 130 crore, 21

12
MW wind power project in the Kutch district of Gujarat. The cumulative power generation from
the 14 wind turbine generators has crossed 159 lakh KW since commissioning in January 2009.

It has also commissioned two pilot solar lantern charging stations at its Kisan Seva Kendra at
Sathla near Meerut and Chokoni near Bareilly.

Consultancy
For over two decades now, IndianOil has been providing technical and manpower secondment
services to overseas companies. Such services have been extended to Emirates National Oil
Company (ENOC), Kenya Pipeline Company and Aden Refinery, Yemen . For the first time,
SAP implementation / IT consultancy was provided in Sri Lanka. Consultancy on pipelines was
provided to Greater Nile Petroleum Operating Company (GNPOC), Sudan.

Globalization Initiatives
IndianOil has set up subsidiaries in Sri Lanka, Mauritius and the United Arab Emirates (UAE),
and is simultaneously scouting for new business opportunities in the energy markets of Asia and
Africa.

Lanka IOC Plc (LIOC)


Lanka IOC Ltd. operates about 150 petrol & diesel stations in Sri Lanka, and has a very efficient
lube marketing network. Its major facilities include an oil terminal at Trincomalee, Sri Lanka's
largest petroleum storage facility and an 18,000 tonnes per annum capacity lubricants blending
plant and state-of-the-art fuels and lubricants testing laboratory at Trincomalee. Presently, it
holds a market share of about 40%. In a highly competitive bunker market, catering to all types
of bunker fuels and lubricants at all ports of Sri Lanka, viz., Colombo, Trincomalee and Galle. It
is the major supplier of lubricants and greases to the three arms of the Defence services of Sri
Lanka. LIOC's market share in petrol increased stands at 24.8% in 2008 with an overall market
share of 16.9%.

IndianOil (Mauritius) Ltd. (IOML)


IndianOil (Mauritius) Ltd. has an overall market share of nearly 22% and commands a 35% market share
in aviation fuelling business, apart from its bunkering business. It operates a modern petroleum bulk

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storage terminal at Mer Rouge port, besides 17 filling stations. In addition to the ongoing expansion of
retail network, IOML has to its credit the first ISO-9001 product-testing laboratory in Mauritius.

IndianOil Middle-East FZE (IOME)


The Corporation's UAE subsidiary, IOC Middle East FZE, which oversees business expansion in the
Middle East, is mainly into blending and marketing of SERVO lubricants and marketing of petroleum
products in the Middle East, Africa and CIS countries. Finished lubes were exported to Oman , Qatar ,
Yemen , Bahrain , UAE and Nepal .

Objectives & Obligations

Objectives:

• To serve the national interests in oil and related sectors in accordance and consistent with
Government policies.

• To ensure maintenance of continuous and smooth supplies of petroleum products by way


of crude oil refining, transportation and marketing activities and to provide appropriate
assistance to consumers to conserve and use petroleum products efficiently.

• To enhance the country's self-sufficiency in crude oil refining and build expertise in
laying of crude oil and petroleum product pipelines.

• To further enhance marketing infrastructure and reseller network for providing assured
service to customers throughout the country.

• To create a strong research&development base in refinery processes, product


formulations, pipeline transportation and alternative fuels with a view to
minimizing/eliminating imports and to have next generation products.

• To optimise utilisation of refining capacity and maximize distillate yield and gross
refining margin.

• To maximise utilisation of the existing facilities for improving efficiency and increasing
productivity.

• To minimise fuel consumption and hydrocarbon loss in refineries and stock loss in
marketing operations to effect energy conservation.

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• To earn a reasonable rate of return on investment.

• To avail of all viable opportunities, both national and global, arising out of the
Government of India’s policy of liberalisation and reforms.

• To achieve higher growth through mergers, acquisitions, integration and diversification


by harnessing new business opportunities in oil exploration&production, petrochemicals,
natural gas and downstream opportunities overseas.

• To inculcate strong ‘core values’ among the employees and continuously update skill sets
for full exploitation of the new business opportunities.

• To develop operational synergies with subsidiaries and joint ventures and continuously
engage across the hydrocarbon value chain for the benefit of society at large.

Financial Objectives

• To ensure adequate return on the capital employed and maintain a reasonable annual
dividend on equity capital.

• To ensure maximum economy in expenditure.

• To manage and operate all facilities in an efficient manner so as to generate adequate


internal resources to meet revenue cost and requirements for project investment, without
budgetary support.

• To develop long-term corporate plans to provide for adequate growth of the


Corporation’s business.

• To reduce the cost of production of petroleum products by means of systematic cost


control measures and thereby sustain market leadership through cost competitiveness.

• To complete all planned projects within the scheduled time and approved cost.

Obligations

• Towards customers and dealers:- To provide prompt, courteous and efficient service
and quality products at competitive prices.

• Towards suppliers:- To ensure prompt dealings with integrity, impartiality and courtesy
and help promote ancillary industries.

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• Towards employees:- To develop their capabilities and facilitate their advancement
through appropriate training and career planning. To have fair dealings with recognised
representatives of employees in pursuance of healthy industrial relations practices and
sound personnel policies.

• Towards community:- To develop techno-economically viable and environment-


friendly products. To maintain the highest standards in respect of safety, environment
protection and occupational health at all production units.

• Towards Defence Services:- To maintain adequate supplies to Defence and other para-
military services during normal as well as emergency situations.

Group Companies
Expanding Horizons

IndianOil is currently metamorphosing from a pure sectoral company with dominance in


downstream in India to a vertically integrated, transnational energy behemoth. The Corporation
is already on the way to becoming a major player in petrochemicals by integrating its core
refining business with petrochemical activities, besides making large investments in E&P and
import/marketing ventures for oil&gas in India and abroad.

With a vision to evolve into a major technology provider through excellence in management of
knowledge and innovation, IndianOil has launched IndianOil Technology Ltd. to market the
intellectual properties developed by IndianOil's R&D Centre.

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50 Golden Years in the Service of the Nation

India’s flagship national oil company and downstream petroleum major, Indian Oil Corporation Ltd.
(IndianOil) is celebrating its Golden Jubilee during 30th June - 1st September 2009.

Established as an oil marketing entity on 30th June 1959, Indian Oil Company Ltd. was renamed Indian
Oil Corporation Ltd. on 1st September 1964 following the merger of Indian Refineries Ltd. (established
in August 1958) with it. The integrated refining & marketing entity has since grown into the country’s
largest commercial enterprise and India’s No.1 Company in the prestigious Fortune ‘Global 500’ listing
of the world’s largest corporates, currently at the 116th position. It is also the 18th largest petroleum
company in the world.

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IndianOil Today

From a fledgling company with a net worth of just Rs. 45.18 crore and sales of 1.38 million tonnes valued
at Rs. 78 crore in the year 1965, IndianOil has since grown over 3000 times with a sales turnover of Rs.
285,337 crore, the highest ever for an Indian company, and a net profit of Rs. 2,950 crore for 2008-09.

Set up with the mandate of achieving self-sufficiency in refining and marketing operations for a nascent
nation set on the path of economic growth and prosperity, IndianOil today accounts for nearly half of
Indias petroleum consumption, reaching precious petroleum products to millions of people everyday
through a countrywide network of around 35,000 sales points. They are backed for supplies by 167 bulk
storage terminals and depots, 101 aviation fuel stations and 89 Indane LPG bottling plants. For the year
2008-09, IndianOil sold 62.6 million tonnes of petroleum products, including 1.7 million tonnes of
natural gas.

The IndianOil Group of companies owns and operates 10 of India’s 20 refineries with a combined
capacity of over 60 MMTPA, accounting for 34% of national refining capacity, after excluding EOU
refineries. Projects under execution will take the capacity further to 80 MMTPA by the year 2011-12.
Besides setting up state-of-the-art facilities to raise product quality to global standards, IndianOil has
undertaken chartering of ships for crude oil imports on its own and is expanding its basket of crudes and
upgrading its refineries to handle a wider array of crudes, including high-sulphur types.

As a pioneer in laying of cross-country crude oil and product pipelines, the Corporation crossed 10,000
km in pipeline length and about 70 MMTPA in throughput capacity with the commissioning of the 330-
km Paradip-Haldia crude oil pipeline recently. Plans are under execution to add about 4,000 km more by
the year 2012. In-house capabilities have enabled the Corporation undertake all pipeline projects on its
own and even offer turnkey expertise in techno-economic feasibility studies, design and detailed
engineering, project execution, operations, maintenance and consultancy services.

Set up in 1972, IndianOil's R&D Centre has blossomed into a world-class institution and Asia's finest.
Besides its pioneering work in lubricants formulation, refinery processes, pipeline transportation and
alternative fuels such as ethanol-blended petrol and bio-diesel, the Centre is also the nodal agency of the
Indian hydrocarbon sector for ushering in Hydrogen fuel into the country. It has over 214 active patents to
its credit, including 113 international patents. Its current R&D focus is on the future business needs of
IndianOil in the areas of petrochemicals, including polymers, and alternative energy sources.

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Strategic Origins

IndianOil was born of the vision of Pandit Jawaharlal Nehru, the first Prime Minister of India, to pursue a
policy of self-sufficiency in the petroleum sector as a strategic requirement of a free nation.

As part of Panditjis thrust on oil exploration, refining and marketing operations, Indian Refineries Ltd.
was established in August 1958 under 100% Government ownership to erect refineries and lay petroleum
pipelines. To take care of marketing of petroleum products across the country, Indian Oil Company Ltd.,
another 100% Government-owned Company, was formed on 30th June 1959. It was entrusted with the
task of reaching petroleum products to every nook and corner of the nation, overcoming severe
constraints in terms of logistics, terrain and wide seasonal and regional fluctuations in demand.

The marketing activities of Indian Oil Company began on 17th August 1960 with the receipt of the first
parcel of 11,390 tonnes of imported diesel of Russian origin from MV Uzhgorod docked at Pir Pau Jetty
in Mumbai. The Indian petroleum market at that time was ruled by goliaths like Burmah Shell, Esso
Eastern Inc., Caltex (India) Ltd., Indo-Burmah Petroleum Co. Ltd and Assam Oil Company Ltd. Indian
Oil Companys first and foremost challenge was to assert itself in the face of stiff competition from these
well-entrenched transnational oil companies operating in India. In its first year of marketing (1960-61),
the Company’s volume sales was a meager 0.038 million tonnes (approximately 5% of industry sale)
worth Rs. 0.8 crore.

The first activity that Indian Refineries Ltd. undertook was the construction of a refinery at Noonmati
near Guwahati in Assam with Rumanian help. The refinery was inaugurated by Pandit Jawaharlal Nehru
himself in 1962, and processed Upper Assam crude oil received through an Oil India Ltd. (OIL) pipeline
from Nahorkatiya. For product evacuation, the 435-km Guwahati-Siliguri pipeline and the Siliguri
terminal were built and commissioned in 1964. Soon after, It was decided to set up two more refineries,
one each at Barauni and Koyali for processing newly-discovered crude oil at Assam and Gujarat
respectively. The Barauni Refinery was built with Russian collaboration and went on stream in July 1964.
The Koyali Refinery was also set up with technical assistance of Soviet Russia. IndianOil acquired
control of the refinery from Oil & Natural Gas Commission on 1st April 1965 and commissioned it in
October the same year after formal inauguration by the then President of India, Dr. S Radhakrishnan.

Meanwhile, on 1st September 1964, Indian Refineries Ltd. was merged in Indian Oil Company to form a
vertically integrated entity straddling both refining and marketing functions, and Indian Oil Company was
renamed as Indian Oil Corporation Ltd. (IndianOil). While announcing the historic merger, Prof.

19
Humayun Kabir, the then Union Minister of Petroleum & Chemicals, hoped that IndianOil would soon
handle at least half of the trade in petroleum products. He was proved right within five years. By 1969,
the Corporation was handling more than 50% of the total petroleum consumption of the nation and
reached 64.2% market participation by the year 1974.

Battle Spurs

As a veteran IOCian put it once, IndianOil has been genetically coded to serve the Defence services. This
was proved beyond doubt during the 1965 war, when IndianOilPeople maintained the vital supply of
petroleum products to the armed forces with grit and determination. In fact, the Srinagar depot was one of
the first bulk storage facilities set up by the Corporation, in 1963. IndianOil’s entry into the aviation
fuelling business too began with the Defence Services in October 1964 and then to civil aviation a year
later, in November 1965.

Another opportunity to show its mettle in times of national emergencies came IndianOil’s way during the
1971 war. In fact, in March 1972, during the war for liberation of Bangladesh, IndianOil even arranged
for crude oil supplies to the Chittagong Refinery. After the war, the Corporation for the first time
extended reservation in award of retail outlet dealerships to war widows, disabled Defence personnel,
freedom fighters, etc., and continues to honour this tradition even now. At the time of Operation Vijay at
Kargil in 1999, despite shelling of its depots at Leh and Kargil, IndianOil maintained petroleum supplies
in the war zone and stood by the families of the war heroes later.

Having proved its mettle in the 1965 war, IndianOil plunged into frenetic activity with new-found
confidence setting up refineries, laying pipelines, building storage terminals and aviation fuel stations,
entering new businesses like bitumen, marine bunkering, and appointing dealers and distributors across
the country. The Haldia Refinery was set up in 1975, Mathura Refinery in 1982 and Panipat Refinery in
1998. The Corporation is setting up another grassroots refinery at Paradip in Orissa, for commissioning
by the year 2012.

Marketing Innovations

Having set up Its first petrol & diesel station (retail outlet) at Kochi in October 1962, IndianOil currently
operates the country’s largest network of retail outlets numbering over 18, 278 with focus on customer
convenience. It was the first oil marketing company to introduce the concept of Multipurpose Distribution
Centres (MPDCs) at its retail outlets located in rural areas way back in 1975. These MPDCs served as

20
one-stop convenience shops, especially for farmers, and were the harbingers of the modern Kisan Seva
Kendra (KSK) successfully introduced by IndianOil in 2006. As on date, over 2,550 specially formatted
Kisan Seva Kendra outlets set up across the country meet the diverse needs of the rural populace, offering
a variety of products and services such as seeds, fertilisers, pesticides, farm equipment, medicines, spare
parts for trucks and tractors, tractor engine oils and pumpset oils, besides auto fuels and kerosene. About
600 such Kendra are being added to the Corporation’s marketing network every year. IndianOil has been
chosen as the Most Admired Retailer of the Year in the category of Rural Retailing at the India Retail
Forum during 2008.

As part of customer segmentation, exclusive XTRACARE outlets unveiled in select urban and semi-
urban markets offer a range of value-added services to enhance customer delight and loyalty. Large
format outlets on highways cater to the needs of motorists, with multiple facilities such as food courts,
first aid, rest rooms and dormitories, spare parts shops, etc. SERVOXpress has been launched recently as
a one-stop shop for autocare services. To safeguard the interest of the valuable customers, interventions
like retail automation, vehicle tracking and marker systems have been introduced to ensure quality and
quantity of petroleum products.

Over the years, IndianOil has also launched several branded products, customer-focussed speciality
products and customer rewards programmes. New generation branded transportation fuels with
multifunctional additives are now available in major markets. Initiatives for cashless transactions for
customer convenience through co-brand credit cards and fleet cards have met with great success.

IndianOil also enjoys a dominant share of the bulk consumer business, including that of railways, state
transport undertakings, and industrial, agricultural and marine sectors. Its ISO-9002 certified Aviation
Service commands over 63% market share in aviation fuel business, meeting the fuel needs of domestic
and international flag carriers, private airlines and the Indian Defence Services.

Kitchen Revolution

Indane was the first branded product from IndianOil to hit the market, at Kolkata in October 1965, with
product sourced from its Barauni Refinery. Introduction of the clean and efficient LPG as cooking gas
ushered in a revolution in millions of households. Encouraged by customer response and to ensure
dedicated service, IndianOil undertook massive augmentation of LPG storage and distribution facilities
across the country in 1983. The process continues even today with the setting up of 89 Indane bottling
plants, mostly in upcountry locations for quicker turnaround of cylinders. Several innovations were

21
introduced in LPG marketing from time to time, like mounded storage and 19-kg cylinders for bulk
customers, reticulated supplies for housing complexes and 5-kg cylinders for customers in inaccessible
and hilly terrain. The Corporation’s in-house IndMax process is aimed at enhancing LPG yield from
crude oil refining. Indane cooking gas today reaches the doorsteps of over 53 million households in nearly
2,700 markets through a network of about 5,000 Indane distributors. This includes customers in Andaman
& Nicobar and Lakshadweep islands. Autogas (LPG) dispensing stations are being set up in metros and
major cities to cater to the growing vehicle population using LPG as fuel.

New Businesses

In pursuit of its Corporate Vision and to achieve the next level of growth,, IndianOil is currently forging
ahead on a well laid-out road map through vertical integration - upstream into oil exploration &
production (E&P) and downstream into petrochemicals - and diversification into natural gas marketing,
besides globalisation of its downstream operations.

In petrochemicals, IndianOil is envisaging Rs. 30,000 crore (US$ 7.4 billion) investment by the year
2011-12. Through the world’s largest single-train Linear Alkyl Benzene (LAB) plant with an annual
capacity of 1,20,000 tonnes set up at its Gujarat Refinery, the Corporation has already captured a
significant market share of LAB in India, besides exports. A world-scale Paraxylene/Purified
Terephthalic Acid plant (annual capacities: PX - 3,63,000 tonnes, PTA 5,53,000 tonnes) for polyester
intermediates is already in operation at Panipat, while a Naphtha Cracker with a capacity of 800,000
tonnes of ethylene per annum, equipped with downstream polymer units is also coming up at Panipat.

In E&P, IndianOil has bagged eight oil & gas blocks and two Coal Bed Methane blocks under NELP
(New Exploration Licencing Policy) rounds in India, in consortium with other companies. It has also
acquired participating interest in two onshore blocks in Assam and Arunachal Pradesh. Overseas ventures
of the Corporation include two blocks in Sirte Basin and Areas 95/96 in Ghadames basin of Libya, Farsi
Exploration Block in Iran, onshore farm-in arrangements in Gabon, an onland block in Nigeria and two
onshore blocks in Yemen. IndianOil has incorporated Ind-OIL Overseas Ltd. a special purpose vehicle for
acquisition of overseas E&P assets in Port Louis, Mauritius, in consortium with OIL.

In natural gas business, IndianOil is targeting sale of 2 million tonnes in 2008-09. A technology
innovation has been initiated to reach LNG (Liquefied Natural Gas) directly to the doorstep of bulk
consumers in cryogenic containers for industrial as well as captive power applications. An LNG import
terminal is proposed to be set up at Ennore near Chennai. City gas distribution projects are in the pipeline

22
in partnership with other companies.

Group Synergy

As part of inorganic growth through mergers and acquisitions, the refinery operations and marketing
activities of Assam Oil Company were vested in IndianOil in October 1981, and it became the Assam Oil
Division of IndianOil. The old units of the vintage Digboi Refinery (the first refinery in Asia) were
revamped and by 1996 it was transformed into a modern refinery of IndianOil.

In the year 2001, IndianOil acquired the Government stake and management control of stand-alone
refiners Chennai Petroleum Corporation Ltd. (CPCL) and Bongaigaon Refinery & Petrochemicals Ltd.
(BRPL), substantially enhancing group refining capacity. Subsequently, capacity expansion of CPCL and
laying of the 526-km Chennai-Trichy-Madurai product pipeline helped further strengthen IndianOil’s
marketing in South India. Similarly, strategic turnaround initiatives taken by the IndianOil helped BRPL
come out of the red and post profits and merger with the parent company is due soon.

IndianOil acquired IBP in the year 2002 and seamlessly merged it with the parent company in 2007,
leading to the formation of a larger and more formidable marketing network. IndianOil Technologies Ltd.
was launched as a fully-owned R&D subsidiary in the year 2003 to market the Corporation’s intellectual
property.

IndianOil has set up three overseas subsidiaries in Sri Lanka (2003), Mauritius (2004) and the United
Arab Emirates (2006). Lanka IOC Ltd. operates about 150 petrol & diesel stations in the island nation,
besides an oil terminal and a lube blending plant at Trincomalee. IndianOil (Mauritius) Ltd. operates a
modern petroleum bulk storage terminal at Mer Rouge port, has an overall market share of nearly 20%,
and commands a 32% market share in aviation fuelling business in Mauritius. IOC Middle East FZE
oversees blending of SERVO lubricants and marketing of petroleum products and lubricants in the
Middle East, Africa and CIS countries.

In addition, IndianOil has eight active joint ventures in operation with reputed Indian and overseas
partners in the areas of aviation refuelling, city gas marketing, LPG and LNG imports and storage,
speciality lubricants and additives, terminalling services, etc.

Future Plans

23
In spite of deregulation of the oil sector and stiff competition from private players, IndianOil has
maintained its position as India's flagship national oil company. IndianOilPeople have been in the
forefront in adapting to the changing environment and enhancing the organisation’s capabilities in
providing innovative and value-added offerings to the customers.

Against the backdrop of a rapidly changing business environment, IndianOil is focussing on certain key
issues for sustained growth in the deregulated market. These are: prudent finance and projects
management, optimum capacity utilisation of refineries and pipelines network, competitive business
strategies, customer-focussed innovations in product and service offerings, streamlining of business
processes, and achieving greater synergy with group companies for enhanced efficiency and effectiveness
in the market place.

The rising customer aspirations for quality products and services, at par with international standards, have
also thrown up myriad opportunities. IndianOil is making the most of them mainly in expanding its
existing customer base, customising products for specific market segments, streamlining distribution
infrastructure, etc. As part of the Marketing Transformation Programme to move closer to the customers,
IndianOil has bifurcated its marketing function vertically into exclusive retail and direct consumer
groups, transferred powers from the four regional offices to 16 marketing offices in State capitals, and set
up exclusive groups for process & systems optimisation, brand management and bio-fuels. The ambitious
Project Manthan IT re-engineering project has enabled the organisation to assimilate IT and web-based
business solutions for real time, integrated transactions and IT solutions for supply chain optimisation.

India Inspired

As a leading public sector enterprise of India, IndianOil has successfully combined its corporate social
responsibility agenda with its business offerings, meeting the energy needs of millions of people everyday
across the length and breadth of the country, traversing a diversity of cultures, difficult terrains and harsh
climatic conditions. The Corporation takes pride in its continuous investments in innovative technologies
and solutions for sustainable energy flow and economic growth and in developing techno-economically
viable and environment-friendly products & services for the benefit of its consumers.

24
awards & recognitions

1.l IndianOil yet again clinched the top slot among the seven Indian companies
featured in the Fortune 'Global 500' listing of the world's largest companies
for 2008, improving its ranking to 105.
2.l IndianOil was the only petroleum company among 100 other industrial
giants to emerge as 'The Most Trusted Fuel Pump Brand' in ET's Brand
Equity annual survey for the year 2008. Among the 'Top 50 Service Brands'
of the country, it bagged the 7th position.
3.l IndianOil received the coveted World Petroleum Congress Excellence Award
2008 at Madrid, Spain, in the technical development category for its pathbreaking
R&D work in hydro-processing technology for Green Fuels.
4.l IndianOil won the SCOPE Gold Trophy for Environmental Excellence &
Sustainable Development and Commendation Certificate for Good
Corporate Governance for the year 2007-08.
5.l IndianOil continued to top the annual corporate listings of leading business
publications such as the Economic Times, Business India and
BusinessWorld in addition to topping the Oil & Gas category in the Financial
Express-500 listing.
6.l IndianOil has been ranked as one of Best Employers in a survey conducted
by Hewitt Associates in association with Outlook Business magazine.
7.l IndianOil bagged the prestigious BML Munjal Award for Excellence in
Learning and Development for the year 2009 and was the only award
winner in the public sector category.
8.l In recognition of its operational excellence and business solutions, IndianOil

25
received a string of prestigious awards - SAP ACE AWARD (for Customer
Excellence) for the year 2008 from SAP AG for B2B application for oil
exchanges between IndianOil and BPCL SAP systems, Economics Times
Smart Workplace Award for Corporate Business Technology Centre (that
recognises companies using technology to enhance productivity at the
work place) and CIO 100 Award for Innovations in Implementing Business
Continuity for SAP R/3 Environment (for the third consecutive year).
9.l IndianOil received the 'Oil & Gas Supply Chain Excellence' award at the
Second Express, Logistics & Supply Chain Conclave (Asia-Pacific)
organised by India Times Mindscape with Business India group.
10.l Indian Express Uptime Champion Award 2008 was conferred on IndianOil's
Corporate Business Technology Centre in recognition of its well designed
IT infrastructure uptime strategy.
11.l In recognition of its Kisan Seva Kendra initiative in rural markets, IndianOil
received the prestigious 'Most Admired Retailer of the Year - Rural Retailing'
award at the India Retail Forum held in Mumbai.
12.l For the fourth consecutive year, IndianOil was conferred the Safety
Innovation Award instituted by the Safety & Quality Forum of the Institution
Of Engineers (India).
13.l Indian Oil has been conferred the 'Business Super brand 2008' status by
The Super brands Council of India.
14.l IiPM won the ISTD Training Award 2007-08 for innovative training
Practices.

26
IndianOil Major Projects

IndianOil continues to lay emphasis on infrastructure development. Towards this end, a number
of schemes have been initiated with increasing emphasis on project execution in compressed
schedules as per world benchmarking standards. Schemes for improvement and increased
profitability through debottlenecking / modifications / introduction of value added products are
being taken up in addition to grassroots facilities. Project systems have been streamlined in line
with ISO standards.

GRASSROOTS REFINERY PROJECT AT PARADIP (ORISSA)

Project Cost: Rs. 29,777.00 crore


Expected Commissioning: March-November, 2012
Benefit: The project will help in partially meeting the deficit in distillates viz. LPG, Naphtha,
MS, Jet/Kero, Diesel and other products, in the eastern part of the country. The complex will
generate intermediate petrochemicals feedstock.
Brief Description: A 15 MMTPA refinery is being constructed at Paradip in Orissa. The
refinery will have, apart from a Crude and Vacuum Distillation Unit, a Hydrocracking Unit, a
Delayed Coker Unit and other secondary processing facilities. This will be the most modern
refinery in India with a nil-residue production, and the products would meet stringent
specifications. IndianOil has taken over 3344 acres of land for the project and necessary
infrastructure development jobs prior to setting up of the main refinery are in progress.

RESIDUE UPGRADATION AND MS/HSD QUALITY IMPROVEMENT PROJECT AT GUJARAT REFINERY

Project Cost: Rs. 5,882.00 crore

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Expected Commissioning: January, 2010
Benefit: The objectives of the project are multifold. It will ensure compliance to product
quality requirement of MS/HSD to EURO-III/IV levels, enable processing of increased
quantity of high sulphur crude, and improvement in distillate yield.
Brief Description: The project envisages setting up of a number of units like VGO-HDT,
ATF-Merox, FCC-Merox, LPG-Merox, ISOM, Coker, DHDT, HGU (PDS) and SRU.

IMPROVEMENT IN DIESEL QUALITY AND CAPACITY EXPANSION AT HALDIA REFINERY (WEST


BENGAL)

Project Cost: Rs. 2,869.00 crore


Expected Commissioning: January, 2010
Benefit: Improvement in quality of HSD conforming to Euro-II/Euro-IV equivalent norms. In
addition, it will improve the distillate yield and crude processing capacity of the refinery.
Brief Description: The project comprises installation of facilities for improvement in Diesel
quality and Distillate yield (Hydrocracker) at Haldia, and capacity expansion of the Refinery
from 6 MMTPA to 7.5 MMTPA. This involves Once-through Hydrocracking Unit (OHCU),
Hydrogen Unit, Sulphur Recovery Units, revamp of Crude Distillation Units, related utilities
and offsite facilities.

NAPHTHA CRACKER AND POLYMER COMPLEX AT PANIPAT (HARYANA)

Project Cost: Rs. 14,439.00 crore


Expected Commissioning: February, 2010
Benefit: This project is the cornerstone for IndianOil's entry into petrochemicals thereby
creating a new business line for growth. For the state of Haryana, this project shall lay the
foundation for creation of a world-class petrochemicals hub, which will engender significant
industrial activity in the coming years.
Brief Description: The project envisages setting up of a Naphtha Cracker based on captive
utilisation of naphtha from Panipat, Mathura and Koyali refineries of IndianOil. With a
capacity of 800,000 MT/year of ethylene production, the Cracker Complex will have
associated units viz. hydrogenation, butadiene extraction, benzene extraction etc. besides
downstream polymer units like Swing Unit (LLDPE/HDPE), a dedicated HDPE Unit,

28
Polypropylene Unit and MEG Unit.

MS QUALITY UPGRADATION PROJECT AT PANIPAT REFINERY (HARYANA)

Project Cost: Rs. 1,131.00 crore


Expected Commissioning: December, 2009
Benefit: The implementation of this project will improve the quality of MS to conform to
Euro-II/Euro-IV equivalent norms.
Brief Description: The major process units under this project are PENEX (Isomerisation),
Naphtha HTU, Reformate Splitter and FCC Gasoline Desulpurisation Unit.

FCC GASOLINE DESULPHURISATION UNIT AT MATHURA REFINERY (UTTAR PRADESH)

Project Cost: Rs. 348.00 crore


Expected Commissioning: January, 2010
Benefit: The implementation of this project will improve the quality of MS to conform to
Euro-IV equivalent norms.
Brief Description: In this project a FCC Gasoline Desulpurisation Unit will be installed.

MS QUALITY UPGRADATION PROJECT BARAUNI REFINERY (BIHAR)

Project Cost: Rs. 1,492.00 crore


Expected Commissioning: June, 2010
Benefit: The implementation of this project will improve the quality of MS to conform to
Euro-III equivalent norms.
Brief Description: The major process units under this project are Isomerisation, Naphtha
Hydrotreater, Reformate Splitter, FCC Gasoline Desulpurisation Unit and Hydrogen
Generation Unit.

MS QUALITY UPGRADATION PROJECT AT GUWAHATI REFINERY (ASSAM)


Project Cost: Rs. 372.00 crore
Expected Commissioning: June, 2010
Benefit: The implementation of this project will improve the quality of MS to conform to

29
Euro-III equivalent norms.
Brief Description: The major process units under this project are Isomerisation, Light Naphtha
Splitter, Naphtha Hydrotreater and Indmax Gasoline Splitter.

MS QUALITY UPGRADATION PROJECT AT DIGBOI REFINERY (ASSAM)


Project Cost: Rs. 356.00 crore
Expected Commissioning: June, 2010
Benefit: The implementation of this project will improve the quality of MS to conform to
Euro-III equivalent norms.
Brief Description: The major process units under this project are Isomerisation, Naphtha
Splitter, Naphtha Hydrotreater and Reformate Splitter.

DADRI-PANIPAT R-LNG SPUR PIPELINE

Project Cost: Rs. 298.00 crore


Expected Commissioning: January, 2010
Benefit: The 132 km long 30 inch diameter spurline carrying regassified LNG (R-LNG) will
stretch from GAIL India’s Dadri terminal in UP to Panipat.
Brief Description: The proposed R-LNG pipeline will provide for an economical means of
feeding natural gas to Panipat refinery.

PANIPAT REFINERY EXPANSION FROM 12 MMTPA TO 15 MMTPA


Project Cost: Rs. 1,007.83 crore
Expected Commissioning: December, 2009 / August, 2010
Benefit: To meet the growing deficit of petroleum products in the high demand Northwest
region of India.
Brief Description: The project consists of capacity revamp of Crude and Vacuum Distillation
Units (CDU / VDU), Once through Hydrocracking Unit (OHCU), Delayed Coking Unit, and
installation of second stage reactors in Diesel Hydrotreating Unit (DHDT).

CHENNAI - BANGALORE PRODUCT PIPELINE

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Project Cost: Rs. 273.00 crore
Expected Commissioning: December, 2009
Benefit: The pipeline will facilitate effective evacuation of products from CPCL refinery in
Chennai and ensure uninterrupted, regular and economical transportation of petroleum
products to Bangalore-fed areas in a cost-effective manner.
Brief Description: Project consists of laying 14/12-inch diameter 290 km long product
pipeline from CPCL refinery, Chennai to existing TOP at Devanagonthi (Bangalore).

BUSINESS

Refining

Born from the vision of achieving self-reliance in oil refining and marketing for the nation,
IndianOil has gathered a luminous legacy of more than 100 years of accumulated
experiences in all areas of petroleum refining by taking into its fold, the Digboi Refinery
commissioned in 1901.

IndianOil controls 10 of India’s 20 refineries. The group refining capacity is 60.2 million
metric tonnes per annum (MMTPA) or 1.2 million barrels per day -the largest share among
refining companies in India. It accounts for 33.8% share of national refining capacity.

The strength of IndianOil springs from its experience of operating the largest number of
refineries in India and adapting to a variety of refining processes along the way. The basket
of technologies, which are in operation in IndianOil refineries include:
Atmospheric/Vacuum Distillation; Distillate FCC/Resid FCC; Hydrocracking; Catalytic
Reforming, Hydrogen Generation; Delayed Coking; Lube Processing Units; Visbreaking;
Merox Treatment; Hydro-Desulphirisation of Kerosene&Gasoil streams; Sulphur recovery;
Dewaxing, Wax Hydro finishing; Coke Calcining, etc.

31
The Corporation has commissioned several grassroot refineries and modern process units.
Procedures for commissioning and start-up of individual units and the refinery have been
well laid out and enshrined in various customized operating manuals, which are continually
updated.

IndianOil refineries have an ambitious growth plan with an outlay of about Rs. 55,000 crore
for capacity augmentation, de-bottlenecking, bottom upgradation and quality upgradation.
Major projects under implementation include a 15 MMTPA grassroots refinery at Paradip,
Orissa, Naphtha Cracker and Polymer Complex at Panipat, Panipat Refinery expansion
from 12 MMTPA to 15 MMTPA, among others.

In addition, petrol quality upgradation projects are under implementation at Panipat,


Mathura, Barauni, Guwahati and Digboi refineries proposed to be completed by the end of
2009.

On the environment front, all IndianOil refineries fully comply with the statutory
requirements. Several Clean Development Mechanism projects have also been initiated. To
address concerns on safety at the work place, a number of steps were taken during the year,
resulting in reduction of the frequency of accidents.

Innovative strategies and knowledge-sharing are the tools available for converting
challenges into opportunities for sustained organisational growth. With strategies and plans
for several value-added projects in place, IndianOil refineries will continue to play a leading
role in the downstream hydrocarbon sector for meeting the rising energy needs of our
country.

32
Pipelines

Indian Oil Corporation Ltd. operates a network of 10329 km long crude oil and petroleum
product pipelines with a capacity of 71.60 million metric tonnes per annum. Cross-country
pipelines are globally recognised as the safest, cost-effective, energy-efficient and environment-
friendly mode for transportation of crude oil and petroleum products.

During the year 2008-09 IndianOil’s crude oil pipelines registered the throughput of 38.46
million metric tonnes. Corporation’s largest crude oil handling facility at Vadinar marked the
berthing of 4000th tanker since inception. The terminal operates two offshore Single Point
Mooring (SPM) systems, to feed Koyali, Mathura and Panipat refineries.

Raising efficiency and emerging as the least-cost supplier, IndianOil has added the 330-km
Paradip-Haldia crude oil pipeline (PHCPL) to its bustling pipeline network during the year. The
PHCPL system has a Single Point Mooring installed 20-km off the Paradip coast. With this, it is
now able to pump crude oil from Very Large Crude Carriers to the tank-farm set up onshore and

33
onward to Haldia through the pipeline. The Pipeline has replaced the earlier system of receipt of
crude oil at Haldia port through smaller tankers.

On the west coast, the Mundra-Panipat pipeline is being further augmented to transport an
additional 3 Million Metric Tonne Per Annum (MMTPA) of crude oil to Panipat Refinery, under
expansion from 12 to 15 MMTPA. Additional requirement of crude oil for Koyali, Mathura and
Panipat refineries is planned to be met by de-bottlenecking and augmenting Salaya-Mathura
Pipeline system.

IndianOil’s product pipelines, connecting its refineries directly to high-consumption centres,


achieved a throughput of 20.92 million tonnes during 2008-09. IndianOil has now joined the
select group of companies in India which owns and operates LPG pipelines by building its first
such cross-country facility linking Panipat with Jalandhar. Apart from providing better logistics,
this pipeline can transport 700,000 tonnes of LPG from Kohand near Panipat refinery to
IndianOil’s bottling plants at Jalandhar and Nabha in Punjab. The pipeline will also
simultaneously to meet the requirement of LPG at Una and Baddi in Himachal Pradesh and at
Jammu and Leh in J&K.

Two pipelines linking the major airports of India have been commissioned during the year to
transport Aviation Turbine Fuel to these airports. The 36 km long pipeline from existing
Devangonthi terminal to New Bengaluru International Airport, Devanhalli, Bengaluru was
commissioned in October 2008. The 95 km long ATF pipeline from CPCL to Chennai AFS was
commissioned in December 2008.

In its continuous efforts of expanding the network IndianOil is implementing 290 km long
product pipeline from Chennai to Bangalore to facilitate cost effective positioning of products at
consumption centre located in and around Bangalore and to strengthen product positioning
capabilities of CPCL Refinery. IndianOil is also implementing a 217 km long branch pipeline
from Koyali-Sanganer Pipeline at Viramgam to existing scrapper station at Churwa along with
use of a 14 km long existing pipeline from Churwa to Kandla.

Marketing
34
Reaching out to a Billion Hearts

IndianOil has one of the largest petroleum marketing and distribution networks in Asia, with
over 35,000 marketing touch points. Its ubiquitous petrol/diesel stations are located across
different terrains and regions of the Indian sub-continent. From the icy heights of the Himalayas
to the sun-soaked shores of Kerala, from Kutch on India's western tip to Kohima in the verdant
North East, IndianOil is truly 'in every heart, in every part'. IndianOil's vast marketing
infrastructure of petrol/diesel stations, Indane (LPG) distributorships, SERVO lubricants &
greases outlets and large volume consumer pumps are backed by bulk storage terminals and
installations, inland depots, aviation fuel stations, LPG bottling plants and lube blending plants
amongst others. The countrywide marketing operations are coordinated by 16 State Offices and
over 100 decentralised administrative offices

Several landmark surveys continue to rate IndianOil as the dominant energy brand in the country
and an enduring symbol for high quality petroleum products and services. The heritage and
iconic association that the brand invokes has been built over four decades of commitment to
uninterrupted supply line of petroleum products to every part of the country, and unique products
that cater not only to the functional requirements but also the aspirational needs of millions of
customers.

IndianOil has been adjudged India's No. 1 brand by UK-based Brand Finance, an independent
consultancy that deals with valuation of brands. It was also listed as India's 'Most Trusted Brand'
in the 'Gasoline' category in a Readers' Digest - AC Nielsen survey. In addition, IndianOil topped
The Hindu Businessline's "India's Most Valuable Brands" list. However, the value of the
IndianOil brand is not just limited to its commercial role as an energy provider but straddles the
entire value chain of gamut of exploration & production, refining, transportation & marketing,
petrochemicals & natural gas and downstream marketing operations abroad. IndianOil is a
national brand owned by over a billion Indians and that is a priceless value.

Research & Development Centre

35
In today's dynamic business environment, innovation through a sustained process of Research &
Development (R&D) is the only cutting edge tool for organisations to thrive. With emphasis on
development and speedy commercialisation of globally competitive products, processes and
technologies, the focus has now shifted from R&D to RD&D (Research, Development &
Deployment).

INDMAX, a hallmark technology developed by the Centre for maximisation of LPG and light
distillates from refinery residue, has been selected by IndianOil for setting up a 4 million metric
tonnes per annum (MMTPA) INDMAX unit as a part of the 15 MMTPA integrated refinery-
cum-petrochemicals complex at Paradip, as well as at Bongaigaon Refinery & Petrochemicals
Ltd. (BRPL). The Centre has also licenced its Diesel Hydrotreating technology to these two
refineries. These successes have catapulted IndianOil R&D into the elite league of multinational
technology licensors.

Standing in the company of six worldwide technology holders for Marine Oils, with the second
global OEM (original equipment manufacturer) approval by Wartsila, Switzerland, IndianOil's
SERVO Marine Oils are now technically qualified to cater to the lubrication requirements of
more than 90% of the world's marine engine population. In the power-generation segment, the
newly developed SERVO Marine K-Series was approved by Yanmar Co. Ltd. of Japan for use in
their engines operating on distillate fuels.

The R&D Centre continues to provide significant support to the IndianOil Group refineries in
product quality improvement, evaluation of catalysts and additives, health assessment of
catalysts, material failure analysis, troubleshooting and in improving overall efficiency of
operations. In-house developed FCC models are not only being used in IndianOil refineries for
process optimisation but a similar model has also been sold to a multinational company.
IndianOil has formed a joint venture company, Indo Cat Pvt. Ltd., with Intercat, USA, for
manufacturing 15,000 tonnes per annum of FCC (fluidised catalytic cracking) catalysts &
additives in India, for catering to rising global demand.

As a step towards ensuring energy security for the nation, IndianOil has launched several
initiatives to exploit alternative sources of energy such as Hydrogen and Bio-fuels. Subsequent to

36
commissioning India's first experimental H-CNG (Hydrogen-Compressed Natural Gas)
dispensing unit at the R&D Centre campus at Faridabad, demonstration projects are underway on
use of H-CNG blends in heavy and light vehicles. IndianOil is also setting up India's first
commercial H-CNG dispensing station at one of its retail outlets in Delhi in the year 2008 for
fuelling experimental vehicles running on H-CNG blends as well as on pure Hydrogen. IndianOil
R&D is also working on production, storage, transportation, distribution and commercialisation
of Hydrogen as an alternative fuel.

In Bio-fuels, besides spearheading commercialisation of Ethanol-Blended Petrol in the country,


IndianOil has been in the forefront of technology development for Bio-diesel production from
various edible and non-edible oils and its application in vehicles. Pioneering studies by IndiaOil's
R&D Centre established that Bio-diesel produced from Jatropha seeds were at par with that
produced from vegetable oils. In the past few years, the R&D Centre has studied the entire value
chain of Bio-diesel, starting from Jatropha plantation to field trials on passenger cars, light
commercial vehicles and railway locos in collaboration with several vehicle manufacturers,
railways and state transport undertakings.

IndianOil, along with its subsidiary IndianOil Technologies Ltd., has been engaged in successful
marketing of in-house developed technologies, technical services and training not only in India
but abroad too.

IndianOil has, till date, invested close to Rs. 1,000 crore in setting up world-class facilities at its
R&D Centre for building world-class capabilities in analytical services, engines, test rigs and
pilot plants for all major refinery processes, catalyst characterisation & development, etc. It plans
to invest about Rs. 500 crore during the period 2007-12 to maintain its leadership in downstream
R&D activities in the hydrocarbon sector. While continuing with cutting edge R&D in the core
areas of lubricants formulations, refinery process technologies and pipeline transportation, the
thrust would now be on commercialising the developed technologies and initiating research in
new frontier areas such as petrochemicals, residue gassification, coal-to-liquid, gas-to-liquid,
alternative fuels, synthetic lubricants, nano-technology, etc. Through these R&D initiatives,
IndianOil will continuously enhance value for all its stakeholders

37
Petrochemicals

Petrochemical new growth path


IndianOil is continuously striving for growth through integration of its core business with
opportunities available in the petrochemicals sector.

The LAB unit (Linear Alkyl Benzene, used in the manufacture of detergents) at Gujarat Refinery
achieved over 100% capacity utilisation in the year 2007-2008.

The product has been successfully marketed within India, attaining a significant market share,
and has also been exported.

An integrated PX/PTA plant at Panipat Refinery has commenced commercial production since
June 2006.

IndianOil is close to commissioning a world scale Naphtha Crackerproject along with


downstream polymer units at Panipat. In addition, activities for setting up integrated complex of
refinery and petrochemicals at Paradip in Orissa have also progressed significantly

Gas

Drawing on its vast experience and carefully nurtured skill sets, IndianOil is focussing on
transforming itself by translating global business opportunities into successful commercial
initiatives. IndianOil has already made successful forays in diverse areas such as petrochemicals,

38
natural gas, exploration&production, bio-fuels, etc., and with the passage of time, its capability
to successfully establish itself in new areas of business is slowly but surely strengthening.

Gas market in India is slowly opening up and in the next 5- 10 years time, we are going to
witness enhanced availability of Gas not only from imported sources but also from Indigenous
sources.

Natural gas business presents immense opportunities for IndianOil and has already started
generating significant revenues for the Corporation. The Corporation is in the process of
sourcing more LNG and expanding its customer base. Within the gas business, city gas
distribution is seen as a focus area for rapid growth. Green Gas Ltd., IndianOil's joint venture
with GAIL (India) Ltd., is operational in Agra and Lucknow and plans to expand to other cities
in western UP. IndianOil is also in the process of forming more joint ventures for city gas
distribution in other parts of the country.

As a supplier, IndianOil would be completely responsible for delivery of gas to the customer’s
premises. The transportation services of the company engaged in transportation of gas would be
hired to ensure deliveries. World over this model is in use wherein through one transportation
system, multiple suppliers operate.

IndianOil has inherent strengths and tremendous business capabilities spread over all parts of the
country. Its current business position and relationship with existing customers can be leveraged
significantly to position itself as a gas supplier with a back up comfort of liquid fuels, which no
other company can offer so far. Gas marketing is going to be a focused activity in future.

E&P

Forays into E & P

In keeping with the dynamic business environment, IndianOil's business development initiatives
continue to be driven by the emerging opportunities and guided by its corporate vision of
becoming a diversified, transnational, integrated energy company. Its business strategy focusses
primarily on expansion across the hydrocarbon value chain, both within and outside the country,

39
while simultaneously revisiting its strategic plans and undertaking mid-course corrections,
wherever necessary.

To enhance upstream integration, IndianOil has been pursuing exploration & production
activities both within and outside the country in collaboration with consortium partners.
Recently, IndianOil was associated with two successful discoveries in oil exploration blocks, one
each in India and Iran. Commercial appraisal of these blocks is underway. IndianOil also farmed
into an exploration block in Gabon along with Oil India Ltd. (OIL) as the operator. In addition,
the IndianOil-OIL combine acquired participating interest in a block in Nigeria. The
Corporation, in consortium with OIL, Kuwait Energy and Medco Energi of Indonesia also
succeeded in acquiring participating interest in two exploration blocks in Yemen, awarded
through international bidding.

At home, IndianOil and its consortium partners were awarded two exploration blocks in Mumbai
offshore in Round-VI of bidding under the New Exploration Licencing Policy (NELP). With
this, IndianOil now has an upstream portfolio consisting of participatory interest in eight blocks
under NELP and two blocks under CBM, in addition to two farm-in blocks in northeast India and
seven blocks overseas.

Oil & gas will continue to be the principal energy source in the growing economy. The years
ahead, therefore, hold great opportunities and challenges. Guided by its experience and inherent
spirit, IndianOil shall overcome all the challenges as it has been consistently doing in the past,
and scale up its operations to capitalise on all opportunities and realise its corporate vision.

Initiatives

IndianOil adopts Integrity Pact

IndianOil has entered into a Memorandum of Understanding (MoU) with Transparency


International India (TII) in January 2008, for implementing an Integrity Pact Programme
focussed on enhancing transparency in its business transactions, contracts and procurement

40
processes. IndianOil believes in total transparency, integrity and accountability in its functioning.
It values its business relationships with its numerous domestic and international contractors and
vendors of goods and services and is committed to dealing with them in a fair and transparent
manner by maintaining the highest ethical standards in its transactions with them.

The MoU was signed by Mr. Sarthak Behuria, Chairman, IndianOil, and Admiral (Retd.) R H
Tahiliani, former Chief of Naval Staff and Chairman of TII. Under the MoU, IndianOil is
committed to implementing the Integrity Pact in all its major procurement and work contract
activities. Four Independent External Monitors nominated by TII in consultation with the Central
Vigilance Commission (CVC) shall monitor the activities. The Integrity Pact would strengthen
established systems and procedures by creating trust and would have the full support of the
Central Vigilance Commission.

Transparency International India, launched in 1997, is the Indian Chapter of Berlin-based


Transparency International, which has presence in 93 countries. The Integrity Pact Programme
was launched in the mid-90s by TI to create 'islands of Integrity' through a voluntary contract
between the buyer and the seller to eliminate unfair practices. It establishes mutual contractual
rights and obligations and brings transparency and enhances the credibility of the organizations.

Environment

IndianOil’s Green Agenda


As an active partner of the Global Compact Programme of the United Nations, IndianOil is fully
focussed on “sustainable development.” As a dominant player, the Corporation recognises
protection of environment as a core commitment of its business.

As part of this commitment, all operating units and installations of IndianOil have a
comprehensive safety, health & environment management system in place. The facilities are
periodically reviewed and upgraded from time to time for better performance.

• All IndianOil refineries fully comply with the prescribed environmental standards and
incorporate state-of-the-art effluent treatment technologies. Sustained efforts are being

41
made to further improve the standards by introducing new state-of-the-art technologies
further improve the existing standards and facilities.

• The environment management systems of all IndianOil refineries, pipeline Installations


and major marketing installations/terminals are certified to ISO-14001 standards.

• All IndianOil refineries are accredited for Occupational Health&Safety Assessment


Series (OHSAS-18001). All refineries are also rated under International Safety Rating
System (ISRS). Panipat and Gujarat Refineries are rated “Level 9” in the scale of 1 to 10.

• All refineries have been provided with full-fledged effluent treatment plants consisting of
physical, chemical, biological&tertiary treatment facilities. ‘Oilivorous-S’&‘Oilivorous-
A’ technologies are being used for the treatment of oily sludge and acid tar respectively.
The treated effluent is far superior to the stipulated MINAS quality and quantum
standards. Treated effluent is being reused to the extent of 65-70% in the refinery units.
Panipat Refinery continues to maintain zero discharge since commissioning in 1998.

• IndianOil refineries have adopted various measures for control of gaseous emissions.
These include use of low-sulphur fuel oil, desulphurisation of refinery fuel gas, tall stacks
for better dispersion of flue gases, advanced process control systems; and energy
conservation measures to reduce fuel consumption.

• The sulphur dioxide emissions at IndianOil Refineries are well below the limits
prescribed by the Ministry of Environment&Forests and State Pollution Control Boards.
Ambient air monitoring stations with automatic continuous monitoring instruments are
provided at all the refineries. In particular, Mathura Refinery has set up three ambient air
quality-monitoring stations between the refinery and the city of Agra and a fourth one at
Bharatpur. Utmost care is taken to minimise the impact of refinery operations on the air
quality of the surrounding areas so that the ambient air quality remains within the
stipulated limits prescribed for sensitive areas.

• Most IndianOil refineries have commissioned secondary processing units for improving
fuel quality and reducing emissions. Some of the recent commissionings include
Hydrogen unit and Diesel Hydrotreater unit at Mathura refinery and Motor Spirit Quality
projects at Mathura and Haldia refineries. Sulphur recovery units have been installed at
all the refineries.

Green Initiatives

42
• Low Sulphur (0.5%) Diesel was introduced in metros from April 1996.

• Extra-low Sulphur (0.25%) Diesel was introduced in the eco-sensitive Taj Trapezium
area from September 1996, in Delhi from October 1997, and across the country from 1st
January 2000.

• Diesel with 0.05% sulphur content was introduced in the metros in 2001.

• Unleaded Motor Sprit (petrol or Gasoline) was made available all over the country since
February 1, 2000.

• Green fuels (petrol and diesel) conforming to Euro-III emission norms have already been
introduced in 13 cities/states; the rest of the country is getting BS-II fuels.

• IndianOil is fully geared to meet the target of reaching EURO-III compliant fuels to all
parts of the country by the year 2010; major cities will upgrade to Euro-IV compliant
fuels by that time.

• IndianOil has invested about Rs. 7,000 crore so far in green fuel projects at its refineries;
ongoing projects account for a further Rs. 5,000 crore.

• Motor Spirit Quality Improvement Unit commissioned at Mathura Refinery; similar units
are coming up at three more refineries.

• Diesel quality improvement facilities in place at all seven IndianOil refineries, several
more green fuel projects are under implementation or on the anvil.

• The R&D Centre of IndianOil is engaged in the formulations of eco-friendly


biodegradable lube formulations.

• The Centre has been certified under ISO-14000:1996 for environment management
systems.

Details of Indian Oil Corporation Limited Scholarships

• The 450 Scholarships provided by the Indian Oil Corporation Limited are broken under
the following heads:

• 250 scholarships for 10+/ ITI students on a zonal basis @ Rs. 1000/- per month for two
years.

• 100 scholarships for Engineering students @ Rs. 2000/- per month for four years.

43
• 40 scholarships for MBBS students @ Rs. 2000/- per month for four years.

• 60 scholarships for MBBS students @ Rs. 2000/- per month for two years.

Eligibility criteria for Indian Oil Corporation Limited Scholarships

Students pursuing full time courses in the above mentioned streams and studying in Schools /
Colleges / Institutions / Universities recognized by MCI /AICTE / State Education Boards / State
Govt./ ICSE / CBSE / Central Govt./Association of Indian Universities, are eligible to apply for
the Indian Oil Corporation Limited Scholarships. The minimum eligibility criteria for application
is listed below:

• For 10+ / ITI scholarships, students securing a minimum of 65% marks in their 10th
standard examination or equivalent may apply.

• For Engineering scholarships, students securing a minimum of 65% marks in their 12th
standard examination or equivalent and having a confirmed admission into a full time
engineering degree course may apply.

• For MBBS scholarships, students securing a minimum of 65% marks in their 12th
standard examination or equivalent and having a confirmed admission into an MBBS
degree course may apply.

• For MBA scholarships, students securing a minimum of 65% marks in their graduation
examination or equivalent and having a confirmed admission into an MBA degree course
may apply.

In all cases, the gross joint income of the family of the candidate from all sources should not
exceed Rs. 1,00,000/- (Rupees One Lakh only).

Reservation and Age Limit for Indian Oil Corporation Limited Scholarships

For application to the Indian Oil Corporation Limited Scholarships, the minimum and maximum
age limits are 15 years and 30 years respectively. Relaxation in the upper age limit is 3 years for
OBC candidates, 5 years for SC/ST candidates and 10 years for physically challenged /
physically handicapped candidates. 50% of the scholarships are reserved for SC/ST & OBC
candidates. In each category, 25% of scholarships are reserved for girl students and 10% for
physically challenged / physically handicapped students. Only those listed in the central

44
government's OBC list will be considered against OBC quota.

Application for Indian Oil Corporation Limited Scholarships:

Applications for Indian Oil Corporation Limited Scholarships are to be made as per the proforma
given by the IOCL. The Scholarship Scheme is formally announced through newspaper
advertisements inviting applications on September 1, every year, coinciding with the Indian Oil
day. A period of 30 days is given to students for submission of their application forms and
relevant documents.

IndianOil Academic Scholarships

Indian Oil Corporation Limited - India's largest commercial enterprise and the No.1 Indian
Company in Fortune 'Global 500' listing - awards 450 Scholarships for meritorious students all
over India, under the IndianOil Scholarships Scheme for each academic year.

As part of IndianOil's social responsibility programme, the scheme provides for attractive
scholarships to bright students selected on 'merit-cum-means' basis. For each academic year, 450
scholarships covering the first year students of 10+ / ITI, Engineering, MBBS and MBA, have
been formally announced through newspaper advertisements inviting applications under the
IndianOil Scholarships Scheme

As part of the scheme, special encouragement is being given to girl students, physically
challenged students, and students from J & K as well as the Northeast States.

IndianOil Sports Scholarship

Nurturing Sportspersons Through Scholarships


The objective of this scheme is to award IndianOil Sports Scholarships to promising young
players with a view to encourage talent and create a pool of sportspersons from whom to select
sport appointees to the Corporation
.

45
Sports scholarships are given to upcoming junior players in the age group of 15-18 years and in
the case of potential/talented players below 15 years but above 14 years. In team games, it is
given to State level players in the team and in other games based on national ranking in the
respective category. The duration of the sports scholarships is for a period of three years subject
to performance review every year. The games and categories for IndianOil sports scholarship are
as follows:

Athletics Boys&Girls
Badminton Boys&Girls
Carrom Boys&Girls
Chess Boys
Cricket Boys
Golf Boys
Hockey Boys
Table Tennis Boys&Girls
Tennis Boys
Snooker & Billiards Boys

Apart from catching them young, IndianOil pursues a policy of providing employment to
national and international sports persons so that they can be assured of their financial safety and
concentrate fully for earning glories for the country.

Auto fuels

AutoGas

46
AutoGas (LPG) is a clean, high octane, abundant and eco-friendly fuel. It is obtained from
natural gas through fractionation and from crude oil through refining. It is a mixture of petroleum
gases like propane and butane. The higher energy content in this fuel results in a 10% reduction
of CO2 emission as compared to MS.

AutoGas is a gas at atmospheric pressure and normal temperatures, but it can be liquefied when
moderate pressure is applied or when the temperature is sufficiently reduced. This property
makes the fuel an ideal energy source for a wide range of applications, as it can be easily
condensed, packaged, stored and utilised. When the pressure is released, the liquid makes up
about 250 times its volume as gas, so large amounts of energy can be stored and transported
compactly.

The use of LPG as an automotive fuel has become legal in India with effect from April 24, 2000,
albeit within the prescribed safety terms and conditions. Hitherto, the thousands of LPG vehicles
running in various cities have been doing so illegally by using domestic LPG cylinders, a very
unsafe practice. Using domestic LPG cylinders in automobiles is still illegal.

The fuel is marketed by IndianOil under the brand name ‘AutoGas’

IndianOil has setup 232 Auto LPG Dispensing Stations (ALDS) covering 124 cities across
India.

AutoGas impacts greenhouse emissions less than any other fossil fuel when measured through
the total fuel cycle. Conversion of petrol to AutoGas helps substantially reduce air pollution
caused by vehicular emissions.

The saving on account of conversion to AutoGas in comparison to petrol is about 35-40%. Low
filling times and the 35-40% saving is a reason enough for a consumer to convert his vehicle to
AutoGas.

XTRAPREMIUM

47
XTRAPREMIUM Petrol is India’s leading branded petrol boosted with new generation
multifunctional additives known as friction busters that prevents combustion chamber deposits.
XTRAPREMIUM is custom designed to deliver higher mileage, more power, better pick up,
faster acceleration, enhanced engine cleanliness and lower emissions.

XTRAPREMIUM is a sought after fuel among discerning customers who own new generation,
high-performance cars who have endorsed its unmatched performance.

In terms of fuel system cleanliness XTRAPREMIUM is hugely superior to any other alternative
fuel in this segment, with the additional benefit of fuel efficiency through the friction modifier.
The additive package contains proprietary components including a detergent dispersant, a
friction modifier and a corrosion inhibitor, as a perfectly optimized formulation in synthetic
carrier oil. The detergent dispersant cleans the fuel system and the friction modifier drastically
reduces friction in the non-lubricated engine area contributing to fuel economy.

XTRAMILE

IndianOil’s XTRAMILE Super Diesel, the leader in the branded diesel segment is blended with
world-class ‘Multi Functional Fuel Additives (MFA). Commercial vehicle owners choose
XTRAMILE because they see a clear value benefit in terms of superior mileage, lower
maintenance costs and improved engine protection. A growing section of customers who own
diesel automobiles, both in the ‘lifestyle’ and ‘passenger’ category, prefer XTRAMILE as a fuel
for its added and enhanced performance. XTRAMILE has brought in a huge savings in the high
mileage commercial vehicle segment. Transport fleets that operate a large number of trucks
crisscrossing the country are using XTRAMILE to not only obtain a higher mileage but also for
low maintenance costs.

Petrol/Diesel Stations
Petrol/Diesel Stations

48
IndianOil was the pioneer in launching state-of-the-art petrol stations with digital dispensers,
modern canopies, standardized signage and efficient lighting systems way back in the mid-
1990s. The new retail-branding template introduced by IndianOil set in motion a revolution in
the petroleum retail business in the country. IndianOil pioneered differentiated offerings to meet
the diverse needs of its customers, be it through large format Swagat outlets for the highway
traffic, Kisan Seva Kendras for the rural consumer, or even the XTRAcare outlets for the
discerning urban customer.

XTRAcare
IndianOil's XTRAcare E branded full service petrol stations is a result of a series of processes in
retail design, product and service upgradation, capability training, automation, loyalty programs,
retail site management techniques all benchmarked to global standards. Today XTRAcare petrol
stations are synonymous in India with world-class petroleum retailing.

Complete vehicle care begins at an IndianOil XTRAcare petrol pump. From branded auto fuels,
to speedy windshield wipes to quick oil checks and snappy air service, you will experience the
superior services that will leave your vehicle feeling special.

IndianOil's XTRAcare pump is a revolutionary initiative in petroleum retailing that combines the
best bouquet of quality, quantity and warm service, with a guarantee to make your every visit a
truly rejuvenating experience. It is benchmarked to international standards of quality & quantity,
housekeeping, maintenance and customer service certified to globally renowned benchmarks
certified by the globally renowned agency - M/s Bureau Veritas (BV), amongst others.

The maintenance of the equipment at the XTRAcare outlets is undertaken by Original Equipment
Manufacturers under a unique 'Equipment Quality Outsourcing' system.

While the industry standard is to take samples on a quarterly basis, IndianOil has moved several
steps ahead by introducing fortnightly random sampling with specific importance given to RON
(Research Octane Number) sampling which is truly the definitive test for quality and quantity.
The surveillance audits by BV are being done on a more comprehensive basis. The scale and
spread of XTRAcare pumps is also an industry record.

49
With automated facilities, highly trained attendants and forecourt managers attuned to the needs
of your car an XTRAcare pumps offers the full range of branded fuels-XTRAPREMIUM Petrol
and XTRAMILE Diesel as well as world-class SERVO lubricants and a comprehensive loyalty
programme.

The non-fuel activities get a major fillip at the IndianOil XTRAcare and a wide range of loyalty
programs like XTRAREWARDS, XTRAPOWER and co-branded cards give customers added
benefits (available at present at select petrol pumps). The cutting edge technology introduced at
XTRAcare pumps includes automatic tank level gauges, temperature sensors, density
measurement sensors, back-office server with dispensing unit controls, customer database, etc.

Another vital differentiator in the IndianOil XTRAcare is the importance given to the frontline
customer attendants. They are trained at three levels of competencies--customer service, personal
hygiene/grooming and customer complaint redressals. XTRAcare dealers also undergo extensive
training on 'Retail Site Business Management' a unique training module incorporating best global
practices in retail sales management.

Kisan Seva Kendra

Kisan Seva Kendra is a unique award-winning retail outlet model pioneered by IndianOil to cater
to the needs of the customers' in the rural segment. Today IndianOil's KSKs have emerged as a
dominant player in the rural markets, riding on the rapid growth of upcoming second and third
tier roads in the rural areas. The KSKs come with a fresh perspective enabling dealers to tap the
huge demand driven in by consumers there. In addition, non-fuel retail facilities like convenio
stores have been added to the KSKs selling pesticides, vegetables, banking products and
stationery items. IndianOil has also tied up with Indo Gulf for fertilizers, National Seeds
Corporation for marketing seeds and agricultural inputs as well as alliances with Nabard,
Oriental Bank of Commerce and Bank of Baroda for banking products. At some KSKs even
internet kiosks, communication facilities, etc. have been installed. Business alliances have been
signed to market products from Dabur, Airtel, Tata Chemicals, Godavari Fertilisers, Gokulam
Fertilisers, Hindustan Unilever and Godrej Agrovet. Other alliance partners are Emami for

50
personal care products, Money Gram for money transfer, MILMA and OMFED for milk
products and Supplyco for convenience stores.

RESEARCH METHODOLOGY
RESEARCH:-
Research can be defined as a scientific and systematic
search for pertinent information on a specific topic. Research is an
art of scientific investigation.
“Research comprises of defining and redefining
problems, formulating hypothesis or suggested solutions,
collecting organizing and evaluating data, making deductions and
reaching conclusion and at last carefully testing the conclusion to
determine whether they fit the formulated hypothesis.”

1.Sample size:
The sample size for survey is taken 25 which are the
existing EXECUTIVES & HEAD OF THE DEPARTMENT of
INDIAN OILLimited.

2.Type of sample design:-


In this study, information will be collected from the
different department of INDIAN OILLimited. Thus, it is a sample
investigation. Here, Judgment sampling design is referred in
which using probability methods initial sampling units are

51
selected and then additional information is obtained from
information supplied by initial units.

3.Research Design:-
Descriptive research design will be made in this study
in which VARIOUS TRAINING IN INDIAN OILLIMITED FOR
EXECUTIVES will be discussed.

4.Data Collection Method:-


Data collection is the most important part of any
Research project. It plays a vital role in fulfilling the research
objectives.
In this study, PRIMARY DATA collection method will
be used. A structured questionnaire was developed under the
supervision of experienced supervisor, which helped me to
extract detailed information with the aim of fulfilling the research
objective and further information are collected from previous
reports, websites; OIL’S newspapers etc there are the
SECONDARY DATA.
Data analysis

1. What do you understand by Training & Development in


general?

“Process of gearing up executive to update themselves


with latest innovations & best practices in industry”
“Training & Development imparts from proper training
to the employees of the company for overall development of
every individual”
“Help proper execution of any job in future”
“Training & Development means enlightening the skill of
the employee for the organization”
“Training helps an executive do his job better”
52
“It is a process of exposing the work persons &
executives to the current knowledge & practices with the aim of
development & meeting organizational goals”
“Practice study for improvement”
“Training & development means shaping the knowledge
& skill of the employee”
“It is an attempt to improve current or future employee
performance by increasing an employee’s ability to perform
through learning”
“Training & development means knowledge updating”
“It’s is purposeful imposing of knowledge for personal
development”
“Upgrading knowledge of the executives”
“Improving upon existing and acquiring new technical
managerial skill”
“To bridge the gap in the requirement for development”
“It is related to training an employee/executive and
developing his/her inbuilt skills”
“Training & Development means overall development
both professional as well as personal of an individual”
“To educate employee for new assignment responsibility
and develop knowledge”

2. How do you select executives for training?

Almost 100% of the respondent said that the executives


are selected on the “NEED BASIS OF THE ORANISATION AND
IMPROVE THE KNOWLEDGE OF THE FRESH EXECUTIVES”

3. According to you training is beneficial to executives?

53
100% of the respondent replied positively to the training
been beneficial to executive.

4. How do you judge OIL’S present strategy to imparting


training to improve and develop executive?

Above question was answered in a mix manner, 4% said


EXCELLENT 16% said VERY GOOD, 72% said GOOD, 8% said
FAIR.

5. The various programs sponsored by the organization


training of executive are adequate?

The respondent were supporting the programs


sponsored by OIL for executives almost 40% AGREED, 40%
SOMEWHAT AGREED, 12%& 8% STRONGLY AGREED &
DISAGREE RESPECTIVEY and no one strongly disagreed the
programs sponsored by OIL.

6. According to you which of the following training are more


beneficial to the executive?

More respondent replied to all the training as


beneficial to the executives, out of that also IN-COUNTRY
TRAINING (80%) was given more prior then IN-HOUSE
TRAINING & OVERSEAS TRAINING (48%&32%) respectively.
7. Are you satisfied with the IN_HOUSE TRAINING, IN-
COUNTRY TRAINING & OVERSEAS TRAINING provided by
INDIAN OILLimited?

54
92% of the respondent replied positively and said YES
to IN-HOUSE training and 80%&56% to IN-COUNTRY AND
OVERSEAS TRAINING RESPECTIVELY.

8. According to following parameters, please rank the IN-


HOUSE TRAINING program:

All 25 respondents replied to above question since all


of them have attained the IN-HOUSE TRAINING program of INDIAN
OILLimited.
9. According to following parameters, please rank the IN-
COUNTRY TRAINING program:

Only 21 respondents replied to above question since


only they have attained the IN-COUNTRY TRAINING program of
INDIAN OILLimited.

10. According to following parameters, please rank the


OVERSEAS TRAINING program:

Only 13 respondents replied to above question since


only they have attained the IN-HOUSE TRAINING program of
INDIAN OILLimited.

11.Do you believe the process of training for executives in


OIL could be further improved?
Almost all the respondent agreed with the
statement that OIL’S executive training program can be further

55
be improved. Their suggestions are collected in the
RECOMMADATION & CONCLUSIONS.

RECOMMENFATION & CONCLUSION


RECOMMENDATIONS FROM RESPONDENTS:-
1. There should be a calendar for training of each
executives for IN-HOUSE, IN-COUNTRY, OVERSEAS
PROGRAM.
2. The training history of all executives vis-à-vis his/her
placement spectrum should be made available online for
anyone to view.
3. The executives should be given ON-THE JOB training
more.
4. Those who are not yet going for OVERSEAS TRAINING
should be identified and send accordingly.
5. The training policy should be followed in true spirit, the
trainees should be utilized properly after the training.
6. More IN-HOUSE TRAINING programs should be arranged
for junior executives with the help of IN HOUSE talent
available at senior level.
7. To facilitate training on performance related matter, so
that an executive can perform his job on an improved
manner.
8. Training provided to executives as well as employees
should be need based, depending on the requirement
and job profile. Besides when a person comes back from
training his performance and efficiency should be
evaluated to understand whether any benefit was derived

56
out of such training to OIL. If no such benefit is derived,
then it should be relooked into.
9. The trainee should be provided theory classes before
field visits, proper books should also be provided.
10.More institutes should be hired for the OVERSEAS
TRAINING, and selection of executives for training should
be done more effectively.

LIMITATION

1. The time duration for executing the research study was just 45
days. So, it was difficult to cover the overall depth of the study
about the whole organization.
2. Public sector units have their own rigid way of doing things any
change in impracticable as it will affect a large zone.
3. Some of the information about the respective department was
not disclosed by the executives as they don’t possess any
ideas regarding those issues.
4. The data provided in the questionnaire was not very accurate
and the answers to certain question were not provided.

57
5. The difference in perception of the executives can be a major
constrains. Hence, finding due to an evaluation study have its
limitation.
6. More over newly appointed executives have not been send for
any training program for last few years. So, proper information
regarding the training can’t be given by them.

Annexures

Questionnaire for Retailers

Personal details

Name……………………………………………

Organization……………………………………

Address…………………………………………

58
Date of visit…………………………………….

Instructions: Take your time to fill this questionnaire. Please read carefully, before
answering questions.

1. How many liters of fuel do you sell in a week through Xtra Power fleet card?

(a) 1000-20000 lts

(b) 20000-40000 lts.

(c) 40000-60000 lts.

(d) More than 60000 lts.

2. What is the average sale of following brands at your outlet in a week?


Brands XtraMil XtraPremiu Servo Unleade Unleade
e m d petrol d
lubricant
Super Petrol s diesel
diesel
Maximum
Minimum

3. What price do you get the following brands at?

59
Brand XtraMil XtraPremiu Servo Unleade Unleade
s e m d petrol d
lubricant
Super Petrol s diesel
diesel
Price

4. What is your margin for the following brands?


Brand XtraMil XtraPremiu Servo Unleade Unleade
s e m d petrol d
lubricant
Super Petrol s diesel
diesel
Price

60
6. What is the average sale of fuel/lubricants through Xtra Power Fleet card from
your outlet?

………………………………………………………………………

7. Do you tell the customer/fleet owner/driver about the Xtra Power fleet card
loyalty program of IOCL?

a) YES.

b) NO.

C) SOMETIMES.

8. Do the staff/attendants know how to operate the machine of Xtra Power fleet
card?

a) YES

b) NO

9. What is the usual mode of payment made by the customer?

a) Cash.

b) Credit/Debit Cards.

c) Xtra power fleet card.


61
10. Is the outlet well equipped with machines of Xtra Power fleet card?

a) YES.

b) NO.

Questionnaire for the Customers

Personal details
62
Name……………………………………………

Address…………………………………………

Date of visit……………………………

Customer I.D. ………………………………………..

1. Do you visit the IOCL fuel station regularly?

a) YES.

b) NO.

c) Sometimes.

2. What is the usual mode of payment?

a) Cash.

b) Credit/Debit Card.

c) XTRAPOWER fleet card.

3. Do you know about the XtraPower fleet card?

a) YES

b) NO.

4. From where did you come to know about the fleet card program?

a) Advertisement.
63
b) Newspapers.

c) Journal/Magazines.

d) IOCL Retail Outlets.

e) Others……………….

5. How many vehicles/trucks do you have?

…………………….

6. Are you satisfied with the service of fleet card?

a) YES.

b) NO.

c) Partly satisfied.

7. Do you use your fleet card regularly?

a) YES.

b) NO.

c) Sometimes.

8. What improvements do you want in the fleet card loyalty program?

a) Better services to the card holders.

b) More attractive offers.

c) Others……………………………

9. Do you redeem your Xtra points regularly?

a) YES.
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b) NO.

c) Sometimes.

10. Any suggestions about the Xtra Power Fleet Card program?

……………………………………………………………..

BIBLIOGRAPHY

WEBSITE:

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WWW.IOCL.COM

WWW.GOOGLE.COM

 ANNUAL REPORT OF IOCL.

 S.P.GUPTA, STATISTICAL METHODS

 C.R.KOTHARI, RESEARCH METHODOLOGY.

 MARKETING MANAGEMENT. KOTLER.

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