AN ASSIGNMENT ON VISION &MISSION OF THE INDIAN OIL CORPORATION

FOR THE FULLFILMENT OF THE STRATEGIC MANAGEMENT SUBJECT REQUIREMENT

SUBMITTED TO : DR. K.K PATEL

SUBMITTED BY : AMIN CHANDRAKANT R. (1) PATEL AMITKUMAR B. (36) GANGADIYA JIGNESH H. (12)

MISSION AND VISION OF THE COMPANY

Mission:
A. To create and deliver integrated techno-commercial solutions optimum in cost, quality and time to all customers. B. To pursue relentlessly world class quality in engineering consultancy and project management by imbibing best practices. C. To develop, upgrade and improve the manufacturing process of Catalyst and other products in line with the ever evolving need of customers.

Vision:
To be a leading engineering and project management consultancy organization in the global market

Values
Indianoil nurtures the core values of Care, Initiative, Passion & Trust across the organization in order to deliver value to its stakeholders. Care Stands for
y y y y y

Concern Empathy Understanding Co-operation Empowerment

Innovation Stands for

y y y y

Creativity Ability to learn Flexibility Change

Passion Stands for

y y y y y y

Commitment Dedication Pride Inspiration Ownership Zeal & Zest

Trust Stands for

y y y y y y

Delivered promises Reliability Dependability Integrity Truthfulness Transparency

Objectives:

y y

y y y

y y y y y y

y y

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. 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 Indias 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 hydro carbon value chain for the benefit of society at large

Financial Objectives
y y y

y y

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 gro wth of the Corporations 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.

PERFORMANCE TOWARD FINANCIAL OBJECTIVES:

year Turnover (Inclusive of Excise Duty Gross Profit * Profit Before Interest & tax Profit Before Tax Dividend 2009-10 271,074 2008-09 285,398 2007-08 247,457 2006-07 220,779

18,872 15,632

11,319 8,281

14,334 11,626

14,622 11,990

14,106

4,329

10,080

10,485

3,156

910

656

2,251

INDIAN OIL MAJOR PROJECTS: 1)MS QUALITY UPGRADATION PROJECT AT BONGAIGAON REFINERY (ASSAM)
Project Cost: Rs. 293.60 crore Expected Commissioning: September 2011 Benefit: The implementation of this project will improve the quality of MS to conform to Euro-III equivalent norms. Brief Description: The major process unit under this project is Light Naphtha Isomerisation Unit. Existing Xylene Fractionation facilities would also be used.

2)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 sp ecifications. 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.

3)INTEGRATED CRUDE OIL HANDLING FACILITIES AT PARADIP :

Project Cost: Rs. 1492.33 crore Expected Commissioning: June 2012 Benefit: The proposed facilities would enhance crude handling capacity at Paradip port. Brief Description: The proposal is for installation of 2nd SPM for Paradip

Refinery and 3rd SPM & sub-sea crude oil transfer pipeline with associated facilities as a part of Integrated Offshore Crude Handling Facilities at Paradip.

4)PARADIP-NEW SAMBALPUR-RAIPUR-RANCHI PIPELINES:

Project Cost: Rs. 1793.60 crore Expected Commissioning: September 2012 Benefit: The proposed pipeline would ensure the evacuation of Paradip Refinery products and uninterrupted supply to major parts of Orissa, Chhattisgarh and Jharkhand. Brief Description: Project consists of laying of 1108 km long product pipeline with intermediate pumping stations at Jatni and New Sambalpur and delivery stations at Jatni, Jharsuguda, Ranchi, Raipur and Korba. The pipeline will be having a telescopic diameter of 18/14/12/10 OD.

5)REVAMP OF FCC UNIT AT MATHURA:

Project Cost: Rs. 1000.00 crore Expected Commissioning: January 2013 Benefit: The project would improve reliability of the unit, increase LPG production consequently, maximize value added propylene to be recovered from LPG stream through PRU revamp. Brief Description: Project consists of Revamp of Reactor Regenerator Section, Third Stage Separator (TSS) for reduction of particulate emission, modification in the Gas-Con Section and the OSBL (outside battery limit), Revamp of existing Propylene Recovery Unit (PRU) and other related facilities.

RESEARCH AND DEVELOPMENT CENTRE:

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 licensed its Diesel Hydrotreating technology to these two refineries. These successes have catapulted IndianOil R&D in to 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 . 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.

Corporate Social Responsibility

"CSR: A Cornerstone of our Enduring Success"

At IndianOil, corporate social responsibility (CSR) has been the cornerstone of success right from inception in the year 1964. The Corporations objectives in this key performance area are enshrined in its Mission statement: "to help enrich the quality of life of the community and preserve ecological balance and heritage through a strong environment conscience." We at IndianOil have defined a set of core values for ourselves Care, Innovation, Passion and Trust to guide us in all we do. We take pride in being able to claim all our countrymen as our customers. Thats why, we coined the phrase, IndianOil India Inspired", in our corporate campaigns. Public corporations like IndianOil are essentially organs of society deploying significant public resources. We, therefore, are aware of the need to work beyond financial considerations and put in that little extra to ensure that we are perceived not just as corporate behemoths that exist for profits, but as wholesome entities create d for the good of the society and for improving the quality of life of the communities we serve.