MALAVIYA NATIONAL INSTITUTE OF TECHNOLOGY, JAIPUR

BM-622 INDUSTRIAL MANAGEMENT PRESENTATION

INDIAN OIL CORPORATION LIMITED

INTRODUCTION

IOCL is countrys flagship national oil company, with business interests straddling the entire hydrocarbon value chain exploration & production of crude oil & gas, refining, pipeline transportation and marketing of petroleum products, natural gas and petrochemicals.

COMPANY OVERVIEW
INDIAN REFINERIES Ltd 1958 INDIAN OIL COMPANY Ltd

1959 1964

COMPANIES MERGED

BRPL-2009
ASSAM OIL COMPANY -1981

IOBL-2006

IBP Co. Ltd-2007

CORPORATE JOURNEY

ESTABLISHED FIRST PUBLIC SECTOR REFINERY AT GUWAHATI 1962.

BECOMES FIRST INDIAN OIL COMPANY TO ESTABLISH R&D CENTER 1972.

AWARDED NAVRATNA STATUS BY Govt. OF INDIA -1997.

BECOMES FIRST INDIAN COMPANY TO CROSS THE INR 1000 Bn TURNOVER MARK -2000.

FIRST INDIAN PETROLIUM COMPANY TO START OVERSEAS RETAIL BUSINESS 2002.

BECAME TOP NATIONAL OIL COMPANY IN ASIA PACIFIC2005.

AWARDED MAHARATNA STATUS BY Govt. OF INDIA- 2010.

VISION AND MISSION

VISION

To be the preferred business entity contributing to national energy security and delivering high quality products and services with care for environment.
MISSION

To cater the customer needs in dynamic hydrocarbon market through continuous up-gradation of skills, capabilities and technologies to attain global benchmarks.

OBJECTIVES
To serve the national interests in oil and related sectors in accordance and consistent with Government policies. To maximise utilisation of the existing facilities for improving efficiency and increasing productivity.

To ensure maintenance of continuous and smooth supply 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 countrys self-sufficiency in crude oil refining and build expertise in laying of crude oil and petroleum product pipelines.

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

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

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

To ensure maximum economy in expenditure.

To create a strong research & development base in refinery processes, product formulations, pipeline transportation and alternative fuels with a view to minimising/eliminating imports and to have next generation products.

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.

IOCL- QUICK FACTS

MAJOR SUPPLIER TO CORE SECTOR.. GOVERNMENT ORGANIZATIONS i.e. RAILWAYS, STATE ROAD TRANSPORT..

STRONG SUPPORT FROM THE GOVERNMENT OF INDIA..

MAHARATNA STATUS.. GOVERNMENT NOMINATED DIRECTORS ON IOC BOARD..

10 REFINERS WITH 65.7 MMTPA CAPACITY.. 31% DOMESTIC REFINING CAPACITY.. 11000km CRUDE OIL PRODUCTS AND NATURAL GAS PIPELINE WITH A TOTAL CAPACITY OF 77.3 MMTPA..

LARGEST REFINER IN INDIA..

PAN INDIA PIPELINE INFRASTRUCTURE.. STRONG FOCUS ON INNOVATION THROUGH ALTERNATE ENERGY SOURCES.. INTEGRATED OPERATIONS ACROSS THE ENTIRE ENERGY VALUE CHAIN..

NEW FOCUS ON ALTERNATE & RENEWABLE ENERGY..

13 DOMESTIC & 10 OVERSEAS BLOCKS.. 2ND LARGEST DOMESTIC PLAYER IN PETROCHEMICALS..

GROUP COMPANIES
NAME Chennai Petroleum Corporation Limited BUSINESS Refining of petroleum products

Indian Oil (Mauritius) Ltd.

Lanka IOC PLC. IOC Middle East FZE

Terminalling, Retailing & Aviation refueling

Retailing, Terminalling & Bunkering of Petroleum Products Lube blending & Marketing of Lubricants Plantation of Jatropha and extraction of Oil for Bio-diesel Investment company for E&P Project in Venezuela Participation in Shale Gas Asset Project

IndianOil- CREDA Biofuels Limited IOC Sweden AB IOCL (USA) Inc.

Major divisions of IOCL

ORGANIZATIONAL STRUCTURE
Corporate Office New Delhi

R&D Division

Pipelines Division Noida

Marketing Division Mumbai

Refineries Division New Delhi

Assam Oil Division

CORPORATE STRUCTURE
CHAIRMAN (R S BUTOLA)
7 Whole-time Functional Directors 2 Part-time Non-executive Nominee Directors from MOP & NG 6 Independent Directors

DIRECTOR(RESEARCH &DEVELOPMENT) DIRECTOR(HUMAN RESOURCE) DIRECTOR(PLANNING & BUSINESS DEVELOPMENT) DIRECTOR(FINANCE)

ADDDITIONAL SECRETARY & FINANCIAL ADVISER (MINISTRY OF PETROLEUM &NATURAL GAS)

ADDDITIONAL SECRETARY (MINISTRY OF PETROLEUM &NATURAL GAS)

DIRECTOE(REFINNERIES)

DIRECTOR(MARKETING)

DIRECTOR(PIPELINES)

PRODUCTS
Indian oil is not only the largest commercial enterprise in the country ,it is the flagship corporate of the Indian Nation. The main products of Indian Oil are petrol, diesel, LPG, auto LPG, aviation turbine fuel, lubricants and petrochemicals: naphtha, bitumen, kerosene etc.

IndianOil operates the largest and the widest network of fuel stations in the country, numbering about 20,575 (16,350 regular ROs & 4,225 Kisan Seva Kendra).
It has also started Auto LPG Dispensing Stations (ALDS). It supplies Indane cooking gas to over 66.8 million households through a network of 5,934 Indane distributors.

BRANDED PRODUCTS

Indane Gas - Domestic and Industrial Gas

AutoGas - Automotive Natural Gas

DIVERSIFI ED PRODUCTS AND BRANDS

Xtra Premium - Automotive Premium Petrol Xtra Mile - Automotive Premium Diesel

Servo - Lubricants and Greases

Propel - Petrochemicals

BRANDED SERVICES
The main services offered by IndianOil are Refining, Marketing, Pipelines, R&D and Training. IndianOil's Research and Development Center (R&D) at Faridabad supports, develops and provides the necessary technology solutions to the operating divisions of the corporation and its customers within the country and abroad.

DIVERSIFI ED PRODUCT S AND BRANDS

BUSINESS DESCRIPTION

Operates 10 refineries with a total production capacity of 65.7 MMT Operates a 10,899 km long product and crude pipeline network as well as maintains a marketing network with ~ 37,000 touch points

Investing in wider petrochemical product Slate. Gas distribution CGD, LNG at Doorstep etc E&P through equity interest in blocks across the world

Power generation through renewable sources of energy

MAJOR REFINERIES IN INDIA

http://ppac.org.in/writereaddata/India%20Refinery%20Map.pdf

MARKETING
AND FINANCE

AD CAMPAIGNS

Source: www.iocl.com

OVER 39,400 CONSUMER TOUCH POINTS

Retail Outlets 22,372

LPG Bottling Distributorships 6,467

Bulk Consumer Pumps 6,361

Others 322

SKO / LDO Dealerships 3,938

Source: Petroleum Planning and Analysis Cell (PPAC).

LEADING MARKET SHARE

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%

14 54 49 36

86
46 51 64 OTHERS IOC

Source: Petroleum Planning and Analysis Cell (PPAC).

REFINING MARKET SHARE

35% 30% 25% 20% 15% 10% 5% 0% 31% 28% IOC 11% 14% 9% 7% RELIANCE HPCL BPCL ESSAR OIL ONGC

Source: www.petroleum.nic.in.

Government Of Indias Ownership &

Support
Capital Raising: Government Approval Board Control: Members Nominated to IOC Board Pricing: Select petroleum products based on Govt. initiative

Functional Directors: Appointment by President of India Equity Control: 68.92%*

* Remainder by ONGC (13.77%), Oil India (5%) and rest others.

FINANCIAL SUMMARY
March 2012 (Rs.) EQUITY & LIABILITIES Shareholders' Funds Non-current liabilities Current liabilities TOTAL ASSETS Non-current assets Current assets 88,858.29 121,001.46 95,696.70 128,298.57 57,876.70 32,157.12 119,825.93 209,859.75 61,124.31 38,737.29 124,133.67 223,995.27 MARCH 2013 (Rs.)

TOTAL
(Rs. in crores)
Source: 20_Balance_Sheet_2013.pdf

209,859.75

223,995.27

TURNOVER
Turnover in US $ billions

$80
$60 $40 $20 $0 FY 09 FY10 FY 11

$69

$76

$56
$48 $46

FY 12

FY 13

Financial Year
Exchange rate 1US $ = 54.29 INR

Source: iocl investor report (www.iocl.com)

NET WORTH ( Assets - Liabilities)

Net Worth (in US$ Billions) $12.00 $10.00 $8.00 $6.00 $9.30 $8.10 $10.20 $10.70 $11.30

$4.00
$2.00 $0.00 FY09 FY10 FY11 FY12 FY13

Financial Year
Exchange rate 1US $ = 54.29 INR

Source: iocl investor report (www.iocl.com)

NET PROFIT
Net profit ( in US $ Billions) $2.00 $1.50 $1.00 $0.50 $0.00 FY09 FY10 FY11 FY12 FY13

$1.90
$1.40 $0.90 $0.70

$0.50

Financial Year

Exchange rate 1US $ = 54.29 INR

Source: iocl investor report (www.iocl.com)

HUMAN RESOURCE
EMPLOYEE PROFILE: Employee strength as on March 31, 2012 was 34,363 including 14,210 officers. 2,624 women employees, constituting 7.64% of the total manpower. Indian Oil's unique work culture is based on trust, openness and a commitment to creativity and consultation with every employee making a difference.

 Career Growth Opportunities Officers at the junior-most level of the management hierarchy. First division professional degree holders and post-graduates from relevant disciplines are recruited . Job rotation and inter-location transfers throughout the country facilitate planned development of careers and broaden outlook. Career growth opportunities are based on the individual's performance and contribution to the common goal of sustained growth. Indian Oil's top executives have grown from within -- a testimony to the unlimited opportunities for growth available to the meritorious.

Welfare of Employees
Apart from attractive scales and perks, IndianOil provides its employees many facilities and welfare measures which are continuously upgraded. Employees are provided with the best medical facilities Apart from fully equipped hospitals at refinery townships, the Corporation also has nominated hospitals at various locations to meet employee needs. Holiday homes at select locations throughout the country help employees and their families unwind.

RECRUITMENT
Open

Campus Visits IITs, NITs etc. IIMs ICAI

Adv. In leading national dailies Apply Online Selected candidates called for written, GD, interview.

Research & Development

Focus on Products & Technology INDMAX, Marine Oil, Railroad Oil, Needle Coke etc. Active Patents Portfolio Total Patents: 254 Collaborations

CORPORATE SOCIAL

RESPONSOBILITY
CSR and working with the communities has been the cornerstone of success for Indian Oil right from inception. The major thrust areas of the Corporations CSR initiatives are Health & Medical Care and Expansion of Education. A Committee of the Indian Oil Board specially constituted for CSR, guides the Corporation in undertaking CSR activities in a focused and structured manner and reviews the CSR policy from time to time.
Source: iocl\14A_Report_on_CSR_Activities_2013.pdf

ANNUAL CSR BUDGET

1999 2009 onwards

0.5% of previous years net profit

2% of previous years net profit

LIST OF CSR ACTIVITIES

INDIAN OIL SACHAL SWASTHYA SEVA (MOBILE MEDICAL UNITS) SWARNA JAYANTI SAMUDAIK HOSPITAL, MATHURA

ASSAM OIL DIVISION HOSPITAL, DIGBOI

ASSAM OIL SCHOOL OF NURSING, DIGBOI

INDIANOIL (AOD) INDUSTRIAL TRAINING CENTRE, DIGBOI

LIST OF CSR ACTIVITIES (cont)

INDIANOIL EDUCATION SCHOLARSHIP SCHEME INDIANOIL SPORTS SCHOLARSHIP SCHEME

LPG SCHEME

INDIANOIL FOUNDATION

NATIONAL CAUSES / NATURAL CALAMITIES

SWOT Analysis
STRENGTH India's largest commercial enterprise with a strong brand name. Has around 50% petroleum products Operates 10 refineries in India Huge distribution network through retailing Accounts for a 49% share in the petroleum products market, 31% share in refining capacity and 67% downstream sector pipelines capacity in India Has over 35,000 employees

WEAKNESS

Legal issues Employee management Volatility in the crude market & subsidy burden

SWOT Analysis (cont)

OPPORTUNITIES THREATS

Increasing fuel/oil prices Increasing natural gas market More oil well discoveries Expand export market

Government regulations High competition

CONCLUSION
Largest Refiner in the Country Leading Market Share Across the Portfolio Integrated Operations Across the entire Energy Value Chain Strong Focus on Innovation Through R&D and Alternate Energy Sources Driven by a Management Team That has Delivered Results With Strong Support from the Government of India

REFERENCES
1. 2. 3. 4. http://www.iocl.com www.petroleum.nic.in http://ppac.org.in http://www.thehindubusinessline.in

THANK YOU