Essar Shipping Project

Vadinar Oil terminal Ltd.
1
SUMMER PROJECT REPORT
ON
VADINAR OIL TERMINAL LIMITED ( JAMNAGAR )
IN PARTIALY FULFILMENT OF THE REQUIREMENT OF
THE AWARD FOR THE DEGREE OF
MASTER of BUSINESS ADMINISTRATION
SUBMITTED TO :
GUJARAT TECHNOLOGICAL UNIVERSITY
SOM-LALIT INSTITUTE OF BUSINESS MANAGMENT,

NAVRANGPURA,
AHMEDABAD.
PREPARED BY :
VIRAT K KOTHARI
BATCH YEAR : MBA –I (2009-2011)
ROLL NO : 26
GUIDED BY :
MR.ANAND THITE
Vadinar Oil terminal Ltd. 2

DECLARATION
I Virat Kothari, a student of Master of Business Administration, Som lalit Institute of

Business Management, Ahmedabad, hereby declare that the summer training project
prepared on VOTL(ESPLL), is the outcome of my own work and the same has not been
submitted to any other university for acquiring any professional degree.
Signature :
Date :

ACKNOWLEDGEMENT
I would like to thank my project guide Mr. ANAND THITE (Deputy General Manager – F
& A) for his kind support and invaluable guidance in term of theoretical as well as practical
knowledge and experience. His willingness to motivate us and showing us some examples
that related to the topic of our project, has contributed tremendously to my project. Along
with the project work, his real life examples and motivational talks have given me a new way
to see the world in a different way.
A successful project can never be prepared by an individual efforts but it also needs a
guardianship and full support of some people who actively participated in guiding and
completing the project. I would also like to thank Mr. HARDIK VAIDYA (Assistant
Manager) whose guidance and co-operation have helped me in completing the project
successfully.
I would also thankful to Mr. BHARAT KAKKAD (Joint General Manager ) who has given
me opportunity to enhance myself and my potentials for the purpose of summer internship
project.
I would also like to thank all my colleagues who directly or indirectly supported me for
betterments and improvements. I would also like to thank SOM-LALIT INSTITUTE OF
BUSINESS MANAGEMENT for Higher Education for permitting me to do my summer
internship in VADINAR OIL TERMINAL Ltd.(ESPLL) and all faculties who were there
with me to provide guidance and support. All these have helped me to make this project
successful. This project has given me an exposure in terms of great learning, knowledge and
practical experience.
Knowledge in itself is a continuous process. At this moment, of this substantial enhancement

I rarely find enough words to express our gratitude towards those who were constantly
involved with me until successfully completion of my project.

TABLE OF CONTENT
Sr No. Title Page No.
1 Executive Summery 1
2 Beginning of Essar Group 2
3 Essar Group – An Overview 4
4 Companies under Essar Group 6
5 Some Facts of Essar Group 17
6 Social activities at Vadinar 21
7 Vadinar Oil Terminal Ltd. 22
8 Operation Project 23
Operation At VOTL 24
Gantry Capacity 25
Turn Around Time 28
Problem Definition & Data collection 29
MCO 30
NE Gate 32
Vehicle Tracking System 36
Time Office 37
Tank Farm Area 38
Procedure 41
Truck Loading System 46
Out Gate 47
Total TAT 48
Recommendation 51
9 Cost – Benefit Analysis 52

10 Financial Project 54
Meaning of Ratio Analysis 55
Financial Statements 56
Ratios Of VOTL 58
11 Conclusion & Suggestion 71
12 Bibliography 72

Executive Summary:
A Summer Internship has been an outstanding experience from ’HOW
to WOW‘. In Summer Internship, first of all, we have been given Health-Safety-Fire-
Environment Workshop‘ to teach us that how we have to keep our self safe in the refinery.
Then after, we have studied the whole activities going on in different – different
departments. I have made a project on General Management including
Two projects of operation and Finance.
In operation project, we have been given a topic of ―MIS of dispatch areas. It is all
about the optimization of time and resources. Here, we have to analyze the whole procedure
of truck loading at each office / stage and then we have to put our efforts to minimize the
total time taken by each TT and in this way, we have to reduce the average turnaround time
of whole process. To make this system more efficient and effective, we have, first, analyzed
the existing system of truck loading at Essar.
In finance project, we have been given a topic of ―Ratio analysis. In

this project, first of all annual reports of Essar has been analyzed fully. The main
objective of doing this project is to see the current situation and try to make it more
efficient and effective.

Beginning of Essar Group:
The Essar Group was founded in 1969 by brothers Shri Shashi Ruia and Shri Ravi
Ruia.
The Ruia family’s origins are in Rajasthan. Sometime in the 19th century, it moved to
Mumbai and set up its own business. In 1956, Shri Nandkishore Ruia, father to Shri Shashi
and Ravi Ruia, moved to Chennai, capital of the south Indian state of Tamil nadu, to begin
independent business activities. He mentored his two sons in the intricacies of business.
When Shri Nandkishore Ruia passed away in 1969, the brothers laid the foundation of the
Group.
The Essar Group began its operations with the construction of an outer breakwater in
Chennai port. It quickly moved to capitalize on every emerging business opportunity,
becoming India’s first private company to buy a tanker in 1976. The Group also invested in a
diverse shipping fleet and oil rigs, when the Government of India opened up the shipping and
drilling businesses to private players in the 1980s.
Through the 1990s, with the gradual liberalization of the Indian economy, Essar seized
every opportunity that came its way. It diversified its shipping fleet, started oil & gas
exploration and production, laid the foundation of its oil refinery at Vadinar, Gujarat, and set
up a power plant near the steel complex in Hazira. The Construction business helped the
Group build most of its business assets. Essar also entered the GSM telephony business,
establishing India’s first mobile phone service in Delhi (branded Essar Cell phone) with
Swiss PTT as the joint venture partner.
The 21st century for the Essar Group has been all about consolidating and growing the
businesses, with M & As, new revenue streams and strategic geographical expansion.
The name of the company ESSAR‘ is getting from the first letter of the two brothers
SHASHI‘ and RAVI‘ S‘ as ESS‘ and R‘ as AR‘ thus the combination of them make
―ESSAR.

Reaching Millions of Lives:
For decades, they have quietly reached the lives of millions of people with the steel to build
cars, the oil to fuel factories, the power to light up thousands of lives and the pipelines to
bring drinking water to remote villages. Today, they have come closer by connecting
customers with their cellular phone services and talking to thousands of people through their
call centers, a countrywide chain of fuel outlets and marketing steel at the retail level. Essar
Group is a multinational conglomerate in the sector of oil, steel, energy, power,
communication, shipping ports and logistics. Essar began as a construction company in 1969
and diversified into manufacturing, services and retail.

ESSAR GROUP - AN OVERVIEW
Essar is one of India’s largest corporate houses with leadership positions in the
high-growth infrastructure sectors of Steel, Energy, Power, Communications, Shipping &
Logistics, and Construction. It employs 24,000 people in 50 locations worldwide. The
Group’s revenue guidance for the year march 2008 is over USD 4.5 billion. All the groups’
investments have been consolidated under Essar Global Ltd., along with its six sect oral
holding companies: Essar Steel Holdings Limited, Essar Energy Holdings Limited, Essar
Power Holdings Limited, Essar Communications Holdings Limited, Essar Shipping
&Logistics Limited and Essar Constructions. The group’s enterprise value is approximately
US$ 18 billion (Rs.77500 Crores).
Essar Group
Steel Energy Power Shipping Communications Projects

Ports &
Logistics
Essar Steel Ltd Essar Oil Essar Power / Vodafone Essar Essar Construction
4.6 MTPA integrated 10.5 MTPA refinery Bhander Power Essar Shipping - Engineering
55 million subscribers
steel plant complex 1015 MW combined Fleet of 25 vessels, - Fabrication
cycle DWT of 1.49 mn Essar Telecom - Construction
Essar Steel (Hazira) 1,500 retail outlets
Infrastructure
4 MTPA integrated Vadinar Power Vadinar Oil Terminal Fully geared to execute
5,000 Telecom Sites by
steel plant Refinery expansion to 125 MW co-generation; Terminal facility of 32 turnkey EPC jobs in
end 2008; 20,000 by
(under implementation) 34 MTPA expanding to 1250 MW MTPA – Liquid Cargo India and overseas
2010
Essar Steel Orissa Exploration & Essar Power MP Bulk Terminal Essar Engineering
The MobileStore
6 MTPA pellet plant Production Assets 1200 MW coal based Dry bulk port facilities Services Ltd
Chain of 2,500 retail
(under implementation) E&P rights in valuable (under implementation) Detailed design &
outlets by 2010
oil & gas blocks in Essar Oilfields engineering
Algoma Steel, India and abroad Essar Power Gujarat A drilling company Aegis - BPO
Canada 1200 MW coal based with 13 rigs Global Supplies
30,000 people in offices
4.0 MTPA integrated (under implementation) (UAE) FZE
in the Philippines, Costa
steel plant Essar Logistics Global procurement
Rica, USA and India
Essar Power Owns and operates company
Minnesota Steel Jharkhand transshipment assets BPL Mobile
6 MTPA pellet plant 1200 MW coal based Heavy Engineering
More than 1.8 million
(planned) (under implementation) Services
subscribers
1.5 billion tonne iron Project Management
ore reserves Consultancy
PT Essar Indonesia Asia’s largest

0.4 MTPA cold rolling equipment bank
complex
ESSAR GROUP PHILOSOPHY
“The success of the Essar group is dependent on the development and realization of
the potential of each one of us.
The mindset of yesterday’s managers was to accept compromise and keep things neat
and orderly which leads to complacency. We should no be afraid to go against today’s
currents because we know that tomorrow is ours. We must work on a vision of what business
can become.”
- Shashi Ruia

ESSAR VISION
The vision of Essar Group can be defined by the seven E’s:

We will be a respected global entrepreneur,
through the power of Positive Action.
EFFECTIVENESS: doing the right thing at the right time
EFFICIENCY: doing things the right way by conserving resources, being cost
effective and simple
ENTREPRENEURSHIP: creating and leveraging opportunities, taking initiative
and innovations
EMPOWERMENT: through self esteem, self respect, self worth and trust
EDUCATION: learning, communicating and sharing information and
knowledge
ETHICS: having transparent business operations
ENVIRONMENTAL HARMONY: adding value to society and creating
sustainable development
ESSAR MISSION
We are committed to innovative growth,

through our personal passion,
reinforced by a professional mindset,
creating value for all those we touch.

Some of the companies run under the Essar Group are:
Essar Oil
Essar Oil has a 13.5 Million Metric Tones Per annum (MMTPA) refinery in Jamnagar,
west coast of India and over 1,350 Essar oil branded retail outlets across India. Essar is
planning to increase its capacity to 34 MMTPA and open 3,000 outlets countrywide.
Essar‘s global portfolio of onshore and offshore oil and gas blocks with about 70,000
sq.km. Is available for exploration.
Essar has over 2,80,000 Barrels Per day of crude refining capacity that is being
expanded to 6,80,000 barrels Per Day, with a goal to reach a global capacity of 1 million
Barrels Per Day.
Essar has 50% stake in Kenya Petroleum Refineries Ltd., which operates a refinery in
Mombasa, Kenya, With a capacity of 80,000 Barrels Per Day.
Essar‘s Exploration & Production business has participating interests in several

hydrocarbon blocks for exploration & production of oil and gas. This includes:
1. The Ratna and R-series blocks on Bombay High.

2. An E&P block in Mehsana, Gujarat, which has currently started commercial production.
3. Coal Bed Methane block at Raniganj in West Bengal.
4. Two E&P blocks in Assam.
5. Essar has an overseas E&P assets include three onshore oil and gas blocks in Madagascar,
Africa and one offshore block each in Vietnam and Nigeria.
A refinery in Jamnagar has the capability to produce petrol and diesel suitable for use
in India as well as advanced international markets. It also produces LPG, Naphtha, light
diesel oil, aviation turbine fuel and kerosene. The refinery has been designed to handle a
diverse range of crude – from sweet to sour and light to heavy. It is supported by an end-to-
end infrastructure set up including SBM (Single Buoy Mooring), crude oil tankage, water
intake facilities, a captive power plant(currently 125 MV, being expanded to 1,200
MV)product jetty and dispatch facilities by road, rail and sea.
A refinery is strategically located in Jamnagar, Vadinar coast, a natural all-weather;
deep draft port that can accommodate very large crude carries. Vadinar also receives 70% of
India‘s crude imports.

Essar Steel
Essar is a fully integrated flat carbon steel manufacturer – from iron ore to ready-to-
market products with a current capacity of 14 million tones per annum (MTPA) capacity.
With our aggressive expansion plans in India, as well as in Asia and America, we aim to
achieve a capacity of 20 to 25 MTPA.
Its steel products have wide acceptance in sectors like automotive, white goods,
construction, engineering and shipbuilding.
Essar Steel is one of India's largest exporters of flat products, exporting to the highly
demanding US and European markets, and to the growing markets of South East Asia and
the Middle East.
A number of major client companies have approved Essar steel for their use including
Caterpillar, Hyundai, Swaraj Mazda, the Konkan Railway, and Maruti Suzuki.

Essar Power
Essar power is India‘s first new generation independent power plant set up as soon as
the power sector was opened up to private sector.
Essar power has India‘s first multi-fuel power plant, with the lowest manpower to
megawatt ratio and one of the lowest capital per mega watt in India.
Essar Power has two gas-based plants, of 500MW and 515MW capacities, and one
liquid fuel-based 32MW power plant in Hazira, a 120MW co-generation plant in Vadinar
and a 25MW coal-based plant in Visakhapatnam.
Work is currently under way to expand the current generation capacity of 1,200MW to
6,000MW by 2012, with a target to reach 10,000 MW in the near future.
The company will set up three coal-based plants of 1,200MW each in Gujarat,
Madhya Pradesh and Jharkhand, aggregating 3,600MW.
An additional 1,200MW (co-generation plant of equivalent capacity) is also under

development in Vadinar to supply power and steam to the expanded refinery.

As the first private company with a license to enter the transmission and power trading
segments, Essar is now a fully integrated, end-to-end player in the power sector.
By using the latest technology and equipment, Essar generates and supplies power at
very competitive price points. Essar currently has complete fuel linkages secured for all
projects under execution.
Essar power is exploring opportunities for new projects based on thermal, wind and
hydro energy.
The investments made towards the projects under execution is over USD4 billion.
Work is currently under way to increase generation capacity to 6000MW. The

company will set up 3 coal based plant of 1200 MW each in Gujarat, Madhya Pradesh and
Jharkhand, aggregating 3600 MW. An additional 1200 MW (co-generation plant of
equivalent capacity) is also under development in Vadinar to supply power and steam to the
expanded refinery.
With a license to enter the transmission, distribution and power training segments,
Essar Power is now a fully integrated, end-to-end player in the power sector. By using the
latest technology and equipment, Essar power can generate and supply power at very
competitive price points. The also has the capability to generate power projects for other
companies.
Essar Power is exploring opportunity for new projects based on thermal, wind and
hydro energy. It is also committed to reducing emissions form its plants and earning carbon
credits.
The 500 MW combined cycle power plant at Hazira is eligible for Certified Emission
Reductions (CERs) under the Kyoto Protocol‘s Clean Development Mechanism (CDM).

ESSAR TELECOME
Vodafone-Essar is a joint venture of Essar Communication Holdings Ltd and the UK-
based Vodafone Group. It is one of India‘s largest cellular service companies.
Essar Telecom Infrastructure is one of the largest independent telecom

infrastructure service provisioning companies in the country.
It builds telecom tower infrastructure and shares it with several telecom operators in
India.
It has a pan-India presence in telecom tower infrastructure with more than 4,500
telecom towers operational. Essar has a 14 per cent stake in Indus Towers, India‘s largest
tower company, which has over 100,000 towers.
Essar Communications Holdings Limited acquired a 49 per cent stake in Econet

Wireless International Limited by subscribing to fresh capital in the company.
Essar and Econet Wireless Kenya have launched 'yu' — Kenya‘s third mobile
cellular network. This is a GSM-based mobile services network in Kenya with close to a
million subscribers.
Essar has launched India‘s first national chain of multi-service outlets in the
telecom retail space. The Mobile Store ltd currently runs over 1300 ―The Mobile Store‖
outlets. Over 2500 Stores outlets are expected across 650 cities.
Expected across 650 cities.

Essar Construction
Essar Constructions/Projects is a 4000 people strong global engineering procurement

and construction company headquartered in Dubai. It has offices in India, China and the
Czech Republic. It provides complete construction solution under one roof. It operates
through five main businesses.
1. Essar Construction:
This division has over four decades of experience in executing projects involving industrial
plants, civil and irrigation projects, lying of onshore pipelines, and highway and
expressways. With a pipeline division certified at ISO 9001, it has developed capabilities to
undertake turnkey projects.
2. Essar Offshore Sub Sea:
The marine construction expertise within Essar oil, Essar shipping, Essar project and Essar
construction has now demerge in to a single entity namely Essar Offshore Sub sea Ltd
(EOSSL). The business provides Engineering Procurement, Construction and Installation
(EPCI) services in this sector in domestic as well as overseas markets. In the high-growth oil
& gas sector, EOSSL provides EPC service for offshore logistics support and marine
construction projects.
3. Global Supplies:
The global supplies team specializes in procurement, with a presence in India, Chine, Middle
East and Europe. It has excellent relationships with vendors across the globe, giving it the
ability to procure materials in a timely manner and at a competitive price.

4. Heavy Engineering Services:
Has modern facilities for manufacturing pressure vessels, reactors, vacuum vessels, cranes
etc. the business is strategically located in the waterfront at Hazira on the west coast of India.
5. Project management Consultants:
An independent team of project management consultants ensures compliance to processes in

project execution. The team is also pitching for third party projects. Essar projects also own a
vast bank of sophisticated construction equipment used in large projects.

Essar BPO (Agies Ind Ltd.)
This has led Essar to emerge as one of the biggest corporate group not only in India,
but gained huge reputation and image internationally. Essar group has played a major role
not only in present but also in past. Their contribution to the nation is a significant one.
On I.T. Front Essar has incorporated Aegis Communication Group which provides
multi-channel customer relationship management, including database management,
analytical services and market intelligence to progressive companies.
Aegis has a strong team of 13000 Employees and provides services to blue-chip and
multinational companies through a network of nine client‘s services in US and ten in India.

Essar Shipping ports and logistics
Essar Shipping Ports & Logistics Ltd is an end-to-end logistics provider with sea and
surface transportation services, oilfield drilling services, dry and liquid terminals, tankage
and associated pipelines. It provides supply chain
Management services to client in oil and gas, steel and power generation industries.
The sea transportation business provides transportation management services for a

crud oil and petroleum products, and dry bulk cargo to global energy, steel and power
industries. With an experience of more than 220 ship years, it owns a diverse fleet of 26
vessels, which is being expanded to 38 vessels.
Essar‘s integrated business model provides opportunities to cater to the complete

supply chain management services to clients in oil and gas, steel and power generation
industries. We are one of India‘s largest operators of ports and, building a cargo handling
capacity (both dry and bulk cargo) of over 150 million tons.
Essar ports and terminals business operates a crude oil and petroleum products
terminal at Vadinar and includes the construction of a dry bulk port at Hazira and a coal jetty
at Salaya, all in the state of Gujarat.
The Vadinar terminal is an all-weather, deep-draft port, which provides crude oil and
petroleum products storage, handling and terminal services. The port has a Single Point

Mooring system capable of handling crude capacity of up to 27mmtpa, and marine facility
for export of petroleum products of up to 6.5mmtpa.
The dry bulk port being constructed at Hazira involves setting up a 30mtpa all-
weather, deep-draft port and jetty facility.
Essar's logistics business provides end-to-end logistics services – from ships to

ports, lighterage services, intra-plant logistics and dispatch of finished products.
We own trans-shipment assets to provide lighterage support services, and onshore

and offshore logistics services.
We also operate a fleet of 4,200 trucks (38 of which we own) to provide inland
transportation of steel and petroleum products.
Essar‘s sea transportation business provides transportation management services for

crude oil and petroleum products, and dry bulk cargo to the global energy, steel and power
industries.

Some Facts of Essar Group
The group‘s enterprise value is approximately US$ 15 billion (Rs. 67,000 crores).
The Essar group is one of India's largest spenders on continuous training, investing
about Rs. 1.4 crore (US $3 m) annually.
Essar has the world's largest gas-based HBI plant at Hazira, Gujarat.
Essar Steel is India's largest exporter of flat steel products.
Essar Steel is the largest steel manufacturer on the West Coast of India.
Essar Steel has the first Indian steel plant to receive ISO 14001 award for
environment management and ISO 9002 for the entire plant operations.
Essar Shipping is the first Indian shipping company to comply with the IMO's
International Safety Management Code.
Essar Shipping owns India‘s largest double hull double bottom VLCC, MT Ashna.
Essar Power is India's first independent power plant and first multi-fuel plant.
Essar Power has India's lowest manpower to megawatt ratio.
Essar Power is one of the few recipients of the Sword of Honour' from the British
Safety Council and India's only power plant with the ISRS level-3 safety rating.
Vodafone Essar is the second largest cellular service provider in India.
Essar Oil is the first private sector company in India to enter into petroleum
retailing in the last 100 years.
The oil refinery of Essar Oil at Vadinar will have a capacity of 34 MMTPA in near
future.
Essar Constructions is a more than three decade old EPC contractor in India

Essar Constructions is among India's largest companies in its sector.
The Base of Essar Group (Management Team)
Promoter Directors
Shri. Shashi Ruia

Chairman
Essar Group
Shri. Ravi Ruia

Vice Chairman
Essar Group
Shri. Prashant Ruia

Group Chief Executive
Essar Group
Shri. Anshuman Ruia

Promoter Director
Essar Group
Shri. Rewant Ruia

Promoter Director
Essar Group

Global Management Committee
Mr. Adil Malia Group President - Human Resources

Mr. J Mehra CEO - Steel Business Group
Mr. Naresh Nayyar CEO - Energy Business Group
Mr. Sanjay Mehta CEO - Shipping & Logistics Business Group
Mr. Rajiv Sawhney CEO - Telecom Business Group
Mr. Alwyn Bowden CEO - Projects Business Group
Mr. Aparup Sengupta CEO - Aegis BPO Services
Mr. V G Raghavan CFO - Essar Group
Mr. Vikash Saraf Director – Strategy & Planning - Essar Group
Mr. Shishir Agarwal CEO - Exploration & Production Business
Mr. Pradeep Mittal CEO - Minerals & Mining Business
Mr. S M Lodha Group President - Assurance & Cost Control
Group Investment Committee
Promoter Directors
Mr. J. Mehra CEO - Steel Business Group

Mr. Naresh Nayyar CEO - Energy Business Group
Mr. Sanjay Mehta CEO - Shipping & Logistics Business Group
Mr. Rajiv Saxena Head - Mergers & Acquisitions
Mr. V.G. Raghavan CFO - Essar Group
Mr. Vikash Saraf Director – Strategy & Planning - Essar Group
Global Finance Committee
Mr. V G Raghavan CFO - Essar Group

Mr. Mahadev Iyer CFO - Steel Business Group
Mr. P Sampath CFO - Energy Business Group

Mr. V Ashok CFO - Shipping & Logistics Business Group
Mr. V Suresh CFO - Power Business Group
Mr. S. Subramaniam CFO – Telecom Business Group
Mr. Tapash Bhattacharya CFO – Projects Business Group
Mr. C.M. Sharma CFO – Aegis Ltd
Mr. Neeraj Gupta CEO - Essar Capital Ltd.
Mr. Amar Fadia Head, Corporate Finance - Essar Group
Mr. N S Paramsivam Group Head - Forex & Treasury
Mr. Partha Bhattacharyya Group Head – Forex & Treasury
Dr. Paritosh Basu Group Controller – Essar Group
Mr. Komal Seshagiri General Counsel, Finance – Essar Group
Mr. Mahabir Agarwal Convener
Management Grade Structure at ESSAR :

Level Designation
M1 Managing Director/ Executive Director/ CEO/Head of Corporate functions
M2 Senior Vice President
M3 Vice President
M4 General Manager
M5 Joint General Manager
M6 Deputy General Manager
M7 Senior Manager
M8 Deputy Manager
M9 Manager
M10 Senior Officer
M11 Officer

Social activities at Vadinar :
Two major ponds have been deepened in Kathi Devaria & Kajurda villages for rain
water harvesting.
Water tankers are sent periodically to Kajurda, Vijaynagar and Bharana villages to
help them deal with water shortage.
Two school buildings at Bharana & Jankhar villages have been renovated.
More than 150,000 kg of fodder has been supplied to 14 surrounding village
gaushalas. August 2007 onwards a Fodder Financial Assistance is provided to villages near
the refinery.
Around 12,000 patients from the refinery’s 10 surrounding villages benefited from an
arogya vahini (mobile clinic)’ around 3,000 patients benefited at our Mother & Child Centre
at Vadinar, a joint venture with the District Panchayat, Jamnagar.
Four eye camps were organised in 2007-08, with 500 patients receiving treatment and
25 patients being operated free of cost.
A skin treatment camp was also organised at Timbdi village whereby 100 patients
were diagnosed and necessary medicine distributed.
Since November 2007, a 24-hour Essar Community Health Centre started in Jankhar
village, with three doctors, three paramedics and an ambulance. The centre also has a full-
fledged laboratory that is available round the clock.
Two medical camps were organised in 2007-08 at Jankhar and Kajurda villages where
1,100 people from 10 – 12 villages were treated.
At the Primary School Mahotshav 2007, 1,450 school bag kits were distributed to
students from 74 villages of Khambhalia and Lalpur talukas.

Vadinar Oil Terminal Limited (VOTL):
VOTL is in the business of providing crude oil and petroleum products storage, handling and
terminalling facilities. VOTL has invested in port and terminal facilities to support 13.5
million tones per annum (MTPA) refinery capacity at Vadinar in Gujarat on the West Coast
of India set up by Essar Oil. The facilities of VOTL include a product port, crude oil and
petroleum product tankages, single point mooring, cross country and sub sea pipelines, and
rail and road gantry.
Key Data :
Order Year 1996

Construction Started 1996 but was delayed, restarted in
2005
Project Type Grass roots refinery
Location Vadinar, Jamnagar, Gujarat, India
Estimated Investment Rs.98,740 ($2.26bn)
Completion 2006
Key Players :
Sponsors Essar Oil Ltd, Essar Shipping Ltd , Petronet India Ltd, Lead
Contractors and Designers, ABB Lummus, TCE, Larsen and
Toubro, Semb Co E&C, Essar Shipping Ltd
Financial ICIC Bank, IDBI Bank, IFCI Bank, Essar Oil Ltd, Essar
Shipping Ltd, Vadinar Oil Terminal Ltd, Essar Projects,
Housing and Urban Development Corporation Ltd (HUDCO)

Operation Project
“Turn Around Time”

Operation at VOTL:
Consumer is the key of the market and his need and wants are the goal of
the business activities of Essar oil ltd. For achieving this goal whole the services for
inward of raw material to dispatch of finished products including management of
inventory VOTL takes these steps :
First of all VOTL has it’s own jetty with 1 single point mooring for import of crude
and 2 birth for dispatch of finished product via marine.
Whenever vessel of crude comes on jetty, it’s weight is minimum 2.5 lac matrix tone.
So it’s not possible to take vessel on jetty and for that VOTL has Single Point Morring
(SPM) with attached pipeline direct to Crude Oil Tank (COT area).
After this whenever Refinery wants crude it directly sends to refinery via pipeline.
Then these Finished Product directly send to tank farm area.
Now these finished products is directly dispatch through ROAD, RAIL, PIPING &
MARINE.
Essar is reaching out to consumers deep in India's heartland with the

mission to create enduring value for customers and stakeholders in core
Manufacturing and service businesses, through world-class operating standards,
state-of-the-art technology and the 'positive attitude' of their people .Let‘s
Understand how the Marketing practically applied under the Essar oil Ltd.
Oil is a product whose demand is always Latent demand i.e. (A strong

Demand that can‘t be satisfied by existing product) so its production remain on
Continuous basis. A product planning is a company plan for marketing its
Products. Product planning means planning for the product to be produced or
What need or what requirements the products the product should satisfy.
Essar Oil Limited produces its products on continuous basis and so it

does not have to do much product planning. As Essar Oil's Refinery has a
Production capacity of 13.5 Million Metric Tones Per Annum (MMTPA) or
280,000 (BPD.) barrels per day. Domestic demand coupled with demand from
– IOCL, Reliance, HPCL, BPCL etc. For cope with facility of Essar Oil ltd. VOTL
also has capacity of 12.5 MMTP.
GANTRY CAPACITY :
TANK TRUCK GANTRY (ROAD)
Gantry Configuration
TANK LORRY GANTRY CONFIGURATION
BAY 1 2 3 4 5 6 7 8 9 10
S
Gantry I MSII MSII MSII MSII MSII MSII MSII MSII
HSD II HSD II HSD II HSD II HSD II HSD II HSD II HSD II
Gantry II SKO SKO MSII MSII MS III MS III MS III MS III
ATF ATF HSD II HSD II HSD II HSD III HSD III HSD III
Gantry III LPG LPG LPG LPG LPG LPG LPG LPG
Gantry LPG LPG LPG LPG LPG LPG LPG LPG
IV
Gantry V BIT BIT BIT BIT
FO FO FO FO FO FO FO FO FO FO
A. Each TT takes 40 minutes ( Considering ramping, idle time etc). Free loading time available per shift
is 7 Hours. Number of TT can be loaded in 7 hours is 10 TT per bay per shift ie 200 KL per bay per
shift.
B. Each loading arm capacity is 60 KL/Hr
Gantry I
Total 8 bays . Each bays are having MSII and HSDII.
Gantry capacity per shift = 200 X 8 = 1600 KL per shift
Gantry II
2 bays for SKO or ATF
3 bays for MSII or HSDII
3 bays for MSIII or HSDIII
SKO can be loaded per shift = 2 X 12 X 10 = 240 KL

MSII or HSD II can be loaded per shift = 3 X 20 X 10 = 600 KL
MSIII or HSD III can be loaded per shift = 3 X 20 X 10 = 600 KL
Gantry capacity per shift = 240+600+600 = 1440 KL per shift
Gantry III

8 bays for LPG
Gantry Capacity per shift = 56 X 17 = 952 MT per shift
Gantry IV
8 bays for LPG
Gantry Capacity per shift = 56 X 17 = 952 MT per shift
Gantry V
6 bays for FO
4 bays for FO or Bitumen ( Presently Bitumen bay used for 380 CST FO )
Each bay can fill 6X15 = 90 MT per shift ie 360 MT 380 CST FO and 540 MT FO
Gantry Capacity per shift = 540 + 360 = 900 MT per shift
Total TT Gantry capacity considering three shift operation for Oil and General Shift Operation for LPG
per day: 11673MT/Day ie 3.85 MMTPA
TANK WAGON GANTRY (RAIL)
SPUR : Two
LENGTH : Full ie 54 BTPN / 80 Conventional
PRODUCT: MS II, MS III, HSD II, HSD III, FO, SKO
The optimum capacity of the gantry is 5 rakes per day ie 12000 MT per day or 3.96 MMTPA
The gantry to be operated round the clock.
MARINE JETTY (VESSEL)
Jetty:
Max dwt 100000

Draft at jetty : 20 M
Draft of channel: 14.5 M
LOA
Pipe Line (PIPING)
Line No Service Dia in Inch Length in M Line Designed

Quantity in Flow Rate in
KL KL/Hr
76950-A01-1 WO 24” 22000 5750** 2000
76900-A01-1 VGO 24” 22000 5750 2000
76700-A01-1 Slop 24” 22000 5750 2000
**Line quantity from Pig receiving point to jetty per line ( each line is bifurcated into seven no 34”dia
Finger Line) is 250 CUM

The average utilization of the jetty as per present varied planning of the vessels is as below
40% loading, 39% jetty idling, 2% stoppage during operation, 19% stoppage after & before cargo loading
Hence the jetty capacity = 365 X 24 X 0.4 X 2000 KL/Hr = 5.43 MMTPA
After Night Navigation, double line loading the jetty idling will go down and loading time will increase so
the capacity as follows.
Minimum 45 TMT vessels to be handled with two LA connection and with night navigation. One vessel
may take about 2.5 days.
Hence total vessel to be handled = 12
Capacity = 12 X 45000 X 12 = 6.48 MMTPA
TOTAL EVACUATION CAPACITY EX VOTL:
Present
ROAD : 3.85 MMTPA
RAIL : 3.96 MMTPA
JETTY : 5.43 MMTPA
[After Night Navigation, double line loading the jetty idling will go down and loading time will increase so
the capacity as follows.
Minimum 45 TMT vessels to be handled with two LA connection and with night navigation. One vessel
may take about 2.5 days.
Hence total vessel to be handled = 12
Capacity = 12 X 45000 X 12 = 6.48 MMTPA]
TOTAL : 13.24 MMTPA 14.29
SBM
SPM:
Line No Service Dia in Inch Length in M Line Designed

Quantity in Flow Rate in
KL KL/Hr
Crude 48” 21000* 22000
* Sub sea portion is 8 KM.
Capacity for handling the ship size 85000DWT to 325000DWT.

Maximum draft: 35Mtr.
Line Size 1X48”, volume approx: 22000 M3.
Capacity 27 mmtpa crude

Turn Around Time:
It is the time that takes to get a job done and deliver the output, once the
Job is submitted for processing. Turnaround may be as simple as unloading and
reloading a delivery truck before sending it out again, or as complex as
Completing a merge/purge of several rented lists, getting a product into the
Buyer’s hands once it is ordered, or receiving approval on a proof that has been
Submitted to the print buyer. In most cases, a short turnaround time is
economically advantageous, making the most efficient use of time and
Resources. TAT starts when FAN is generated.
Research Methodology:
Research methodology is a way to systematically solve the research

Problem. It may be understood as a science of studying now research is done
Systematically. In that various steps, those are generally adopted by a researcher
in studying his problem along with the logic behind them.
It is important for research to know not only the research method but
also know methodology.
work of describing, explaining and predicting phenomenon are called

methodology.
Methods comprise the procedures used for generating, collecting

and evaluating data. All this means that it is necessary for the researcher to
design his methodology for his problem as the same may differ from problem to
Problem.
Data collection is important step in any project and success of any

project will be largely depend upon now much accurate you will be able to
collect and how much time, money and effort will be required to collect that
necessary data, this is also important step.
Data collection plays an important role in research work. Without proper

data available for analysis you cannot do the research work accurately.

Problem Definition:
At Essar we analyzed turnaround time of TTs loading process. Currently

the average time to load a truck is around 2hrs 5min and we are able to load
near about 450 TTs a day which is a huge success for road supply.
The objective of our study is to make this process more effective and
efficient by reducing turnaround time at its optimal level. In short, the project is
about optimization of time and resources.
Data collection:
To make our study more on the practical basis and not theoretical all the
data we used is primary and collected by analyzing each stage of process.
Marketing Co-ordination Office (MCO) Layout:

NE gate Office :

The process of truck loading starts from here.
This office is situated at North-East side of refinery. That‘s why it is called

‗North-East Gate (NE Gate)‘.
There are three windows in this office:

Window – 1
Window – 2
Window – 3
In Window – 1, the activity of creating database including information like

TT Number, Driver‘s Name, and Khalasi‘s Name, Transporter‘s Name and
Other details.
For this, different-different forms have been generated according to the

Customers.
[A] Annexure 1A: Form – 1

IOCL
HPCL
BPCL
Shell India
[B] Annexure 1B: Form – 2

ELL/Essar
Dairy
Gold Plus
Shah Alloys
Gill
[C] Annexure 1C:
Kotak Form – 3
Vinergy
Ramdoot
G L Khanna
Alishan
GSEC
Shiv Petroleum
West Coast
Chetak

In Window – 2 & 3, an activity of putting TTs into the Online Vehicle
Tracking System (VTS) is done. In these two windows, basically, checking is done.
The following is the Check List Slip issued at NE Gate Office to TT drivers and the
mentioned things are checked.
Document Checklist:
Valid Original Driving License & Registration Book
Valid Insurance Certificate & Fitness Certificate (Original or notarized)
Valid Explosive License & Calibration Certificate ( Original or notarized)
Physical Checklist
Approved Spark Arrester (Welded in front of TTs towards driver's side
DCP fire extinguisher (2 No. 10 KG. Working condition)
Value manifold: Flange cover tightened
Electrical Junction Box & double pole wiring. No electrical loose wires
Regd. No. printed on the body / number plate
Emergency Information Panel printed properly on the body ( All the
three
sides)
Crew wearing proper PPEs. ( Helmet / shoes / socks)
Extra load with mollified intentions e.g. iron plates, stone bags, extra water
bags / buckets, extra jack and Tommy bars and any other items
Driver and cleaner training and have TREM card
Proper Earthling Strip is available
General overall conditions of Tank Lorries
Additional Check List in case of LPG Tankers

LPG height barriers, Earthling Strip of cabin / compartment
LPG emergency kit ( For LPG carriers only)
Condition of pressure gauge ( For LPG carriers only)
Condition of temperature gauge ( For LPG carriers only)
After all these checking if everything is all right, then the particular TT is
entered into the Online Vehicle Tracking System by following way:
Time taken at NE Gate Office is 2 minutes.

Vehical Tracking System :

The average time taken at NE gate Office 2.1793 minutes.
Three people are there at NE Gate Office, who handles all the activities
there.
Once the checking is done, the TTs are allowed to move to Time Office.
Time Office :
Time Office is the second place after the TTs have been entered into
the Vehicle Tracking System.
Between NE Gate to Time Office TTs are checked by security.
Once the process gets over, TTs are parked in the parking in front of Time
Office where it has a capacity of 700 TTs.
First of all, mails are received from the parties in which Purchase Orders /
Indents have been placed. After that it is checked the amount has been
received in advance to Essar.

After entering into the time office area, the driver sits in the truck while the
khalasi comes to the Window – 1 and produce the Check List Slip to
the officer, sitting in Window – 1.
A
 fter this, an Outbound Delivery Number is generated. Here, Outbound
Delivery Numbers are generated according to the No. of products placed in
the indent.
At Window – 2, shipments are generated for PSUs (Here, the procedure is
going on according to shift wise.) and then it is delivered to particular
drivers.
At Window – 3, Terminal Automation System (TAS) is made by which we
can trace any TT in the refinery. Then, Filling Authorization Note (FAN) is
generated in which all the information like TT Number, Products to be
loaded, in what quantity, Gantry No., Bay No., etc. are recorded. After that
Touch Key is issued.
At Window – 4, planning for FO and Bitumen is done. Generally, in Time
Office, the work at window – 4 is somewhat more important and with full of
responsibility. It is also called ―The Hot Seat‖ and it becomes hotter as day
passes.
The average time taken at Time Office is 20 minutes.
Tanks Farm Area:
T
 anks Farm is the area which comes under the S&D Department. Generally,
S&D Department has four different areas like TLCB, RLCB, Gantry and
Tank Farms.
Tanks Farm is the area which act as an intermediately between PIT Area and
Gantry.
There are three types of tanks in Tanks Farm Area:
External Floating Tanks:

Internal Floating Tanks
Cone Floating Tanks
.First of all, crude oil is refined in the refinery. Then sample from each
product like MS, HSD, SKO, ATF, FO, Bitumen, LPG is taken for testing in
lab and after testing these products are certified.
After this, all these products are stored safely Product Intermediate Tanks
(PIT). According to the requirements, products are transferred PIT to Tanks
Farm Area by pipelines.
In Tank Farm, there are 23 tanks.
1) 4 Tanks – HSD
2) 4 Tanks – MS
3) 4 Tanks – FO
4) 4 Sphere – LPG
5) 1 Tank – ATF
6) 2 Tanks – SKO
7) 2 Tanks – Bitumen
8) 2 Tanks – Ethanol
Tanks Farm Area is also known as ―Dispatch Tanks‖. There are some rules
and regulations and procedure before storing products in the tanks Farm
Area.
First of all, samples from Dispatch Tanks are collected for testing.
These samples are again tested and certified in the lab. The result from
testing at both places PIT and Dispatch Tanks should be same.
Once the sample is same then only, products are allowed to transfer to Tanks
Farm Area. If there is inequality in testing then retesting is done.
Testing the sample always proves to be correct. There are very less chance
retesting for inequalities in the products.

Procedure :

Tanks Information:
Nominal
Tank Diameter Height
SR NO Service Type Cap
No (m) (m)
(m3)
GASOLINE BS
1 200A EFT 4000 20.0 13.5
III
GASOLINE BS
2 200B EFT 4000 20.0 13.5
II
GASOLINE BS
3 201 EFT 500 10.0 9.0
II
GASOLINE BS
4 202 EFT 500 10.0 9.0
III
5 301A SKO EFT 900 12.0 10.0
6 301B SKO EFT 900 12.0 10.0
7 302 ATF IFR 200 9.0 5.4
8 400A HSD BS III EFT 10000 30.0 15.0
9 400B HSD BS II EFT 10000 30.0 15.0
10 401A HSD BS III EFT 3000 17.5 13.5
11 401B HSD BS II EFT 3000 17.5 13.5
12 500A FO CR 4000 20.0 13.5
13 500B FO CR 4000 20.0 13.5
14 501A FO CR 800 10.0 10.8
15 501B FO CR 800 10.0 10.8
16 502A BITUMEN CR 800 10.0 10.8
17 502B BITUMEN CR 800 10.0 10.8
18 701A ETHANOL IFR 300 8.0 7.0
19 701B ETHANOL IFR 300 8.0 7.0
100
20 LPG SPHERE 3600 20.0
A
100
21 LPG SPHERE 3600 20.0
B
100
22 LPG SPHERE 3600 20.0
C
100
23 LPG SPHERE 3600 20.0
D

TOTAL STORAGE IN CUM 63200 mmt
IFR : Internal Floating Roof

EFT : External Floating Roof
CR : Curvature Roof
No. of Pumps :
S.NO PUMP SL NO PUMP NO CAPACITY-m3/hr PRODUCT RAIL / ROAD
1 970191 77P-502 S 100 FO MV-2 ROAD
2 970190 77P-502 A 100 FO MV-2 ROAD
3 970189 77P-501 S 100 FO MV-2 ROAD
4 970188 77P-501 A 100 FO MV-2 ROAD
5 970237 77P-500 S 600 FO MV-2 RAIL
6 970236 77P-500 A 600 FO MV-2 RAIL
7 970166 77P-401 S 300 HSD-3 ROAD
8 970165 77P-401A 300 HSD-3 ROAD
9 970250 77P-400 S 600 HSD-3 RAIL
10 970249 77P-400 D 600 HSD-3 RAIL
11 970248 77P-400 C 600 HSD-3 RAIL
12 970247 77P-400 B 600 HSD-3 RAIL
13 970246 77P-400 A 600 HSD-3 RAIL
14 971213 77P-203 B 600 MS II RAIL
15 971212 77P-203A 600 MS II RAIL
16 970187 77P-302 120 ATF ROAD
17 970186 77P-301 S 120 SKO ROAD
18 970185 77P-301 A 120 SKO ROAD
19 970164 77P-202 100 MS-2/3 ROAD
20 970163 77P-201 S 100 MS-2 /3 ROAD
21 970162 77P-201 A 100 MS-2/3 ROAD

22 970245 77P-200 S 600 MS-3 RAIL
23 77P - 200 B 600 MS - 3 RAIL
24 970243 77P-200 A 600 MS - 3 RAIL
25 970242 77P - 100S 400 LPG ROAD
26 970242 77P - 100B 400 LPG ROAD

ROAD
27 970242 77P - 100A 400 LPG
Details Written on Each Tank:
1) Fabrication & Eriction By – Artson Engineering Ltd, Mumbai

2) Owner – Vadinar Oil Terminal Ltd
3) Project Management – Essar Projects Ltd
4) NES – TCE Consulting Engineering Ltd, Mumbai
5) Designed By – Artson Engineering Ltd, Mumbai
6) Item No. –
7) Fabrication Serial No. –
8) Capacity –
9) Tank No. –
All these information are there on each and every tank.
‖ In each and every tank, a minimum level of 1.5Metre is kept.

‖ Maximum tank height is 20 Meters.
‖ There are three pipelines connected to each tanks. These are
1) Inlet
2) Outlet
3) Water
‖ Inlet pipeline is for product receipt.
‖ Outlet pipeline is for product dispatch.
‖ Water pipeline is to sort out water from tanks at the time of raining.
Gantry:
The Gantry is the place where all the TTs are loaded.

First of all, trucks are parked in the bays.
Then ‗Earthling Strip’ connected to TTs and then Touch Key is touched
at Batch Control Unit Machine.
Yellow Light – For Acknowledgement

Green Light – For Process
Red Light – For Emergency
There is new Gantry 6 starting in year 2009-10 which is due to Expansion in the
capacity to 18 mmtp from 12.5 mmtp for HSD 3.
Other Gantries are also proposed due to expansion.

Truck loading system :
In each Gantry, there is one officer to handle all operations. This officer
is called ‗Gantry Officer‘.
‗Gantry Log Book‘ is maintained at each Gantry to record all information
about loading. This information is recorded from Filling Authorization Note
(FAN).
Gantry log book :

The Average time taken at Gantry is 35 minutes.
Out Gate Office :
Out Gate Office is the last place after the TTs have been loaded.
Here, before going out side of the refinery, the driver parks the truck
near
by road and goes to Out Gate Office with Invoice / Bill, Indent and FAN.

The Officer, sitting at Out Gate Office do the checking as following:
1) Check TT Number
2) Check Products and its quantity in Invoice / Bill and Indent both.
3) Check Invoice No.
After all these procedures, Essar‘s bill‘s copies and FAN are kept in Out
Gate Office and Company‘s (IOCL, HPCL, BPCL) Indent / bill is given
to TT driver / cleaner by stamping on it.
At last, TTs are made ‗Out from Vehicle Tracking System‘ and then
allowed to go outside the refinery.
The average time taken at Out Gate Office is 3 minutes.
Here, Total Time 128 Min and 29 Sec includes time from Time Office to
Out gate.
Existing System:
Advantages:

[A] NE Gate:
‖Security Checking:
As we are supplying the most explosive and valuable products, it is
very necessary for the company to maintain full security checking to
avoid any uncontrollable circumstances. Security Checking helps to
Maintain and precede the regular procedure easily.
‖Online Tracking of TTs:

Essar Oil Ltd. Uses vehicle Tracking System (VTS) to track any
TTs at any stage and at any time. Due to this we have been able to control
all the TTs and manage daily turn over of 700 TTs approximately. It is
also useful to prevent any misconduct or malpractices into the company

Premises during the loading process.
‖Records of drivers / khalasis and TTs are maintained:

At the time of entering into the NE Gate, it is the first and primary
activity to enter the TTs into the Vehicle Tracking System (VTS). At this
time, information like driver‘s name, khalasis‘ name, TT Number, etc. are
Recorded. so that, it is very easy to judge responsibility at the time of any
critical situation.
[B] Physical Checking for Safety:
It is necessary to know that the vehicle that has come for loading is
completely fit to load the respective product, so any accident can be
Avoided from the scratch.
[C] Time Office:

Planning and management of information of TTs:
Time office does very complex work that is planning the dispatch
on the bases of TT capacity and availability of product as well as gantry
for the loading. It crates balance between all stages of loading process
and avoids unnecessary rush of TTs at a single stage.

Maintains flow of information:
Time office does the work of entering TTs into Terminal

Automation System (TAS) and maintaining the flow of information
Throughout the process using SAP system.
[D] Gantry:
Essar Oil has fully automated gantry system which reduces manpower
cost and at the same times makes loading system more efficient and
smooth.
Disadvantages:
[A] NE Gate:
‖Wastage of Time and Manpower:

At NE gate physical checking of all documents related to driver
and TTs are checked. This process creates unnecessary wastage of time
and manpower as this process can be avoided by maintaining database of
Drivers and TTs and making the whole system automated so it will tack
Optimum time and will be worth full for the company.
‖ less utilization of Resources than their capacity :

In 2008- 09 only 1179 Rail rakes has been dispatch through two birth of
rail Gantry.
Generally railway authority gives 6 hours to fulfill the rakes and send it
back. And dispatch area takes maximum of 4 hours to fulfill it. Gantries are
working 24*7. in each Rake there are 5 tankers with different capacity , different

type & different demand.
So we can say that per rail birth only 118 trains dispatch which takes
maximum of 708 hours means 1 or 1.5 month with 20 hours of working.
In full year they have work only of 1 to 1.5 month and remaining of
months they have just waste the Resources.
RECOMMENDATION:
1. We have two berths with service of only Rail with just 10 loading pipes.
We can do multi purpose Pipes. Like we can have FO & HSD both at 1 point
with different pipes so whenever tankers with same requirement comes we
should not wait for filling up of one and than other. So we can fulfill the
requirements of train less than 4 hours and can load more & more trains.
With this change we can save our time at loading of rail rakes and
utilize more & more of resources.
2. As we visit the Gantries and look at their system all the procedure of filling the
tankers are handled through control room. At both the road & rail Gantry for
accounting and receipt SAP is used. In this software fully pre generated challan
comes out with all the detail of demand, purchaser, qty, product, time and many
more things.

3. We can change the some variable of SAP with the help of IT
Department and make Rail Gantry as multi-purposed Gantry. After this we can
fulfill the demand of trucks also at the time where there is no train on rail gantry.
For that we just have to construct road parallel to railway tracks and make some
change in SAP. With these thing now we should not establish new road gantry and
the cost of that gantry can be saved and use at other place.
We can also control on the time of waiting of truck at parking
nearly 35 minutes. And by this we can give full satisfaction to our customer.

Cost – Benefit Analysis
For Expansion of capacity of Essar oil , VOTL also has to increase the capacity of
transportation to 16.5 from 13.5. for expansion project these all things must be needed.
PART - I:- TANK AREA

PART – II:- POWER PLANT
PART – III:- SEA WATER COOLING TOWER & RETURN RESERVOIR
PART – IV:- PROCESS AREA – ISOM & DHDT HALF PORTION WEST SIDE
PART – V:- ARU UNIT SOUTH SIDE
PART – VI:- DCU – 1, DCU – 2, ESSAR HOUSE AND NARMADA RESERVOIR
PART – VII:- ETP AREA, COOLING TOWER AND WEST SIDE COOLING TOWER,
HMU AREA, N2 PLANT AREA
PART – VIII: - REMAINING BOREHOLES FOR D AND B BLOCK.
PART – IX: - LPG AND DESPATCH AREA
Here for comparison we are calculating only for dispatch area that is for gantry.
We are doing cost-benefit analysis of new road gantry and our recommendation of using rail
gantry as multy purpose.
Additional gantry
Land for construction: 45 crore

Construction: 9 crore
Piping : 23 crore
Pumps & Machinery : 46 crore
IT department: 12 crore
Extra man power: 1 crore (per year)
Total 136 crore
For additional gantry service with 8 bays VOTL can have 8 filling station with same
product.
Alternative
For changing in SAP: 5 crore

Construction of road: 9 crore
Addition of pipes & pumps: 33 crore

Total 47 crore
Conclusion of this analysis of costing of two alternatives gives the perfect answer for
increasing the capacity of VOTL. we can see that when we made new gantry it have all the
capital cost which we mention earlier and additionally it have expense of additional staff
salary, depreciation of gantry , expense of safety measures and many more.
Instead of this we can see that VOTL is not using their Rail gantry as per their capacity.
They uses very less just 1179 rakes (1179/5 =236 trains).it simply means 1 train at 1.5 day.
But instead of this VOTL has dispatch 8 trains per day maximum. Even though we don’t
compare with maximum capacity they must have minimum 3 to 4 trains per day.
So we can say that our alternative is better than expansion of new gantry.

Finance Project
“Ratio Analysis”

Meaning & Utility of Ratio analysis & Financial Statement
Meaning of Ratio Analysis:
Ratio analysis is a widely used tool of financial analysis.

It is defined as the systematic uses of ratio to interpret the financial statement so
that strength & weakness of a firm as well as its historical performance & current financial
condition can be determined.
Utilities:
(1) Ratio analysis helps to appraise the firm in term of their profitability &
efficiency of performance, either individually or in relation to these of other
firms in the same industry.
(2) Proper Comparison of ratios may revel where a firm is placed as compared with
earlier period or in comprise with other firms in the same industries.
(3) Ratio analysis is one of the best possible techniques available to the
management to impact the basic function the planning & control.
(4) Ratio’s calculated on the basis of historical financial statement may be good
assistant to predict the future.
Meaning of Financial Statements:
The process of financial accounting in the books of account which ultimatel y

aims at preparing what is called financial statements.
Usually the term financial statement refers to two kind of statement.
• Balance sheet
• Profitability Statement

Balance –sheet As at 31st march, 2009

Statement of Profit & loss for the year ended 31st march, 2009

RATIOS of VOTL
Current Ratio :
The current ratio is the ratio of total current assets to total current liabilities. It is
calculated by dividing current assets by current liabilities. This most widely used ratio is
also known as ‘Working Capital Ratio’ as it is a measured of working capital available at a
particular time. It is measure of sort-term financial strength of the business and shows
weather the business will be able to meet its current liability, as and when they mature.
Remember that a liability which will mature within a period of twelve months is a current
liability at the business and shows weather the business will be able to meet its current
liability, as and when they mature. Remember that a liability which will mature within a
period of twelve months is a current liability.
Formula:
Current Ratio = Current Assets

Current Liability
Particulars 2008 2009

Current Assets 2488876817 2251547900
Current liability 642774898 2738680472
Current Ratio 3.8721 0.8221
3.8721
4
3 2008
2009
2
0.8221
1
0
2008 2009

Interpretation:
The relationship between current assets and current liability it is use to judge the
liquidity position of company. And ideal current ratio is 2:1.It is generally believed that 2:1
ratio shows a comfortable working capital position i.e. the current assets should be twice the
current liabilities. However, this rule should not be taken as a hard and fast rule, because a
ratio which is satisfactory for one business may not be satisfactory for the other. There may
be instances when an enterprise may function satisfactorily even with a current ratio of one
to one or less and some enterprises required much higher ratio than 2 to 1. If the amount of
stock-in-trade is unduly large, then the 2 to 1 ratio may not be satisfactory. so, the current
liability must be reduced if possible. And due to increase in current liability current ratio is
decreased to 0.8221 and it is worst situation for the company, the ratio must be 2:1.and the
reason of that is due to expansion and with this the capital expenditure is so increased upto
2510061638 rs. From 323886592.
Acid Test Ratio :
Quick ratio shows that one defect of the current ratio is that it fails to convey
any information on the composition of the current assets of a firm. A rupee of cash is
considered equivalent to a rupee of inventory or receivable. But it is not so. A rupee of cash
is more readily available to meet current obligations than a rupee of, say, inventory. This
empires the usefulness of the current ratio. The acid-test ratio because is a measure of
liquidity designed to overcome this defect of the current ratio. It is often referred to as
quick ratio because it is a measurement of a firm’s ability to convert its current assets
quickly into cash in order to meet its current liability. Thus, it is a measure of quick or acid
liquidity. The acid-test ratio is the ratio between current assets – inventory and current
liability and is calculated by dividing the (CA-Inventory) by the current liability.
Formula:
Quick Ratio (Acid-test ratio) = (Current Assets – Inventory)
Current Liability
Table of Quick Ratio: (In Rs.)

Quick Assets 2472729738 2210760789

Liquid Liability 642774898 2738680472
Ratio 3.8470 0.8072
3.847
4
3.5
2008
3 2009
2.5
2
1.5
0.8072
1
0.5
0
2008 2009
Interpretation:-
This ratio measured that the absolute liquidity may be obtained by comparing
only cash and bank balance as well as readily marketable and it is satisfactory if the ratio is
0.5 : 1.This ratio calculated to know that weather the firm will be able to pay its current
liabilities immediately ? Also it is used analysis position of a company into detail. Due to
increase in current liability this ratio is decreases and another reason for this the money is
blocked more in inventory than the previous.
Gross Profit Ratio :
Gross profit ratio expressing relationship between (Net Sales – Cost of Good
Sold) earned to Net Sales. It is a useful indication of the profitability of business. Gross
Profit ratio is the results of prices, sales volume and costs. A Change in the Sales can be
brought about by changes in any of these factors.
The Gross Profit Ratio represents the limit beyond which fall in sales price are
outside the tolerance limit. Further the Gross Profit Ratio can also be used in determining
the extent of loss caused by theft, spoilage, damage and so on in the case of those firms
which fallow the policy of fixed gross profit ratio in pricing their products.

Formula:
Gross Profit Ratio = Sales - Cost of Goods Sold x 100
Net Sales
Table of Gross Profit Ratio :- ( In Rs.)
2008 2009
Gross Profit 1093264352 3212516420
Sales 1404376830 3867318608
Ratio 77.85% 83.07%
83.07%
84.00%
83.00%
82.00%
2008
81.00%
2009
80.00% 77.85%
79.00%
78.00%
77.00%
76.00%
75.00%
2008 2009
Interpretation:-
Gross Profit Ratio of the company for two year consecutive years is 77.85%and
83.07% respectively. As the ratio is better in both the two years it shows that there is ability
of the management to improve gross profit ratio day by day.
Net Profit Ratio :
Net profit ratio is measure the relationship between net profit and net sales. The
objective is to determine the overall profitability due to various factors such as operational
efficiency and trading on equity. The net profit ratio is indicative of management’s ability

to operate the business with sufficient success not only to recover from revenues of the
period, the cost of merchandise or services, the expenses of operating the business and the
cost of the borrowed funds, but also to leave a margin of reasonable compensation to the
owners for providing their capital at risk. The ratio of net profit to sales essentially
expresses the cost price effectiveness of the operation.
Formula:
Net Profit Ratio = Profit After Tax x 100
Net Sales
Table of Net Profit Ratio :- ( In Rs.)
2008 2009
Profit After Tax (559121067) (1438817394)
Interpretation :
Net ratio is computed on the basis of net profit earned from operation of
business and non-operating expenses and incomes are excluded. E.g. income from
investments of surplus funds of business is non-operating income and so it is to be
excluded. Loss on sale of asset is non-trading loss and it is not taken into account.
Generally, tax is deducted from profit while calculating this ratio.
Although near about 83% and 77% gross profit margin, the company is in
loss due to higher interest paid to the depositors and other financial institutions. So, net
profit ratio can’t be found out due to loss in the company.
Operating Ratio :
Operating ratio shows the efficiency of the management. This ratio is to

be measured by 1-Operating profit ratio. The higher the ratio, the less will be the profit
available to proprietors. The lesser the ratio, the high will be the profit available to
proprietors. This ratio is also usually expressed as a percentage. Operating ratio show about
how any expenses during the year for making more profit in the firm.

Formula :
Operating Ratio = Cost of good sold + operating expanses
Sales
Table of Operating Ratio :- ( In Rs. )

Operating expenses 311112478 654802188
Sales 1404376830 3867318608
Operating Ratio 22.15% 16.93%
22.15%
25.00%
16.93%
20.00%
2008
15.00% 2009
10.00%
5.00%
0.00%
2008 2009
Interpretation:-
Operating Ratio of the company for two year is 22.15% & 16.93%. it
shows the satisfactory situation. It indicated that the major share of profit will be
available for the real owner of the company
Expenses Ratio :
This Ratio is for the purpose of ascertaining relationship between

Total expenses and net sales. The expenses ratio is, therefore, very important for analyzing
the profitability of a firm. It should be compared over a period of time with the industry

average as well as firms of similar type. As a working proposition, a low ratio is favorable,
while a high one is unfavorable. The implication of a high expenses ratio is that only a
relatively small percentage share of sales is available for meeting financial liabilities like
interest, tax and dividends,
Formula:
Expenses Ratio = Total Expenses x 100
Net Sale
Table of Expenses Ratio :- ( In Rs. )

Expenses 1929545981 3183429072
Sales 1404376830 3867318608
Ratio 137.39% 82.32%
Total expenses doesn’t include establishment exp.
137.39%
140.00%
120.00% 82.32% 2008
100.00% 2009
80.00%
60.00%
40.00%
20.00%
0.00%
2008 2009
Interpretation:-
An Expense Ratio is shows the relationship between Total expenses of the

company out of net sales. This ratio is Decreases to 82.32 % in year 2009 from 137.39% in
year 2008 because income increase nearly thrice whereas expenses just twice.

Return on Capital Employed :
The Return on Capital Employed is the second type of ROI. It is similar to the
ROA except in one respect. Here the profits are related to the total capital employed. The
term capital employed refers to long-term funds supplied by the creditors and owners of the
firm. It can be computed in two ways. First, it is equal to non-current liabilities plus
owners’ equity. Alternatively, it is equivalent to net working capital plus fixed assets. Thus,
the capital employed basis provides a test of profitability related to the sources of long-term
funds. A comparison of this ratio with similar firms, with the industry average and over
time would provide sufficient insight into how efficiently the long-term funds of owners
and creditors are being used. The higher the ratio, the more efficient is the use of capital
employed.
Formula:-
Return on Capital Employed (ROCE) = Profit after Tax x 100

Total Capital Employed
Table of Return Capital Employed :- ( In Rs.)

Profit after Tax (559121067) (1438817394)
Interpretation:-
Return on capital employed ratio of the company for two consecutive year can’t
be found out because company is the starting faze and working in loss. still in comparison
to last year net loss decreases It indicates that the management of the company has
performed their job successfully.
Return on Shareholders’ Funds :
This ratio is in order to judge the efficiency with which the proprietors’ funds
are employed in business, this ratio is ascertained. Proprietors’ Equity or proprietors’ funds
include share capital and reserves. It is of great practical importance to the prospective
investors. As it enables the profitability of a company to be compared with that of the over
company. It also indicates whether the return on proprietors’ funds is enough in relation to

the risks that they undertake. This ratio shows what amount of dividend is likely to be
received on share. This ratio is usually expressed in percentage
Formula:
Return on Shareholders’ Funds = Profit after Tax x 100
Share holders Fund
Table of Return Shareholders’ Fund :- ( In Rs.)

Profit after Tax (559121067) (1438817394)
Interpretation:-
This ratio is very important to find out because this ratio shows about the
company profit out of the shareholders fund. How much shareholders’ Fund invested in the
company show this ratio. Return on share holder’s funds of the company for two
consecutive year can’t be found out because of the same reason as earlier that company is
working under loss.
Earning Per Share :
Earning per share measures the profit after tax available to equity share holder on
a per share basis, i.e. the amount that they can get on every share held. It is calculated by
profit after tax by the number of. Equity share earning per share is a widely used ratio. It
does not recognize the effect of increase in equity capital as a result of retention of
earnings. If Earning per share has increased over the years, it does not necessarily follow
that the firm’s profitability has improved because the increased profits to the owners may
be the effect of an enlarged equity capital as a result of profit retentions, through the
number of ordinary shares outstanding still remains constant.
Formula:
Earning per Share = PAT .
No. of Equity Share

Interpretation:-
Earning per share analyze that the ratio shows the relationship between the
profit after tax and number of equity shares. This ratio is determine that the how much
profit earn by the share. This is very necessary to find this ratio.in this ratio also same
problem we are facing that we can’t found out ratio.
Dividend Payout Ratio :
Dividend payout ratio is also known as payout ratio it measures the relationship
between dividend per share and earning per share. In other word, the dividend payout ratio
shows what percentage share of the net profit after taxes and preference share dividend is
paid out as dividend to equity holder it can be calculated by dividing the dividend per share
and earning per share. The dividend payout ratio is an important and widely used ratio. The
payout ratio can be compared with the trend over the years or an inter-firm and intra-industry
comparison would throw light on its adequate.
Formula:
Dividend Payout Ratio = Dividend per Share .

Earning Per Share
Interpretation:-
Here in VOTL we can say that company is newly established and working in
loss . so, there is no matter of dividend. And the other thing is all the shareholders are their
holding company only so dividend pay out ratio is not the measurement of good
management.
Stock Turnover Ratio :
The number of times the average stock is turned over during the year is known
as stock turnover. It is computed by dividing the cost of good sold by stock in the business.
Average stock is the average of opening and closing stock of the year. If however the
monthly figures of the stock will gives a better turnover ratio.

Formula:-
Stock Turnover ratio = Cost of good sold x100

Average Stock
Interpretation:
VOTL is basically subsidiary company of ESSAR SHIPPING, PORT &

LOGISTICS. It only gives service of transportation of crude & finished product. So, there
is no stock turn over ratio.
Total Assets Turnover Ratio :
The total assets amount turnover ratio amount invested in business are invested in
all assets jointly and sales are affected through them to earn profits. So in order to find out
relation between total assets to sales. Total assets turnover is calculated. This ratio is
important to know the overall efficiency of the business. The higher this ratio, it shows that
with less amount of investment in total assets, the business has a capacity to sell more and
as such its profitability is also more. While using this ratio, some care must be taken just
like above mentioned fixed assets ratio. If the assets are very old and more depreciation has
been deducted, then the turnover seems to be more which in fact does not show more
efficiency.
Formula:
Total Assets Turnover Ratio = Net Sales .
Total Assets (FA + CA + Investment)
Table of Total Assets Turnover Ratio: - ( In Rs. )

Net Sales 1,404,376,830 3,867,318,608
Total Assets 33425580891 35927521197

Ratio 0.042 0. 11
Total Assets contain the total of Assets side in B\S.
0.11
0.12
0.1
0.08 2008
0.042 2009
0.06
0.04
0.02
0
2008 2009
Interpretation:-
The calculation of this ratio is dividing by the net sales and total assets (Fixed
Assets + Investment + Current Assets). This ratio is defined as the type of assets whether
new or old and depreciation and the sales of this ratio depend on overall efficiency on the
part of management.
Debtors Ratio :
This Ratio shows the rate at which customers are paying for the credit sales.
This ratio should approximately to the audit terms allowed by the business and is therefore a
comment on the efficiency of audit control. The ratio is computed by dividing the amount of
debtors and bills receivables by the average daily sales.
Formula:
Debtors Ratio = Debtors + Bills Receivables x No. of Days

Credit Sales

Interpretation:
Debtors Ratio of the company we are not require to found out because all the
debtors are their holding / sisters company.
Creditors Ratio :
Creditor’s ratio measures the average time taken to pay suppliers. It is a very
important ratio because the potential suppliers would like to know the time within they get
paid for their suppliers. The smaller the ratio the large the period of credit enjoyed by the
company significantly long payment period may mean that the business may have serious
payment problem because it credits sense impending failure or become important with
waiting they due to the company.
Formula:-
Creditor’s Ratio = Creditors + Bills Payable x No. Days

Credit Purchase
Interpretation:-
Creditors Ratio of the company we are not require to found out because all the
Creditors are their holding / sisters company.

Conclusion :
Finally I can Say that it’s my great fortune that I can work in Vadinar Oil
Terminal Ltd. That is subsidiary of Essar Shipping, Port and Logistics.
From VOTL I can learn many things like How corporate world work?, Some Financial
Aspects & also how they operate such a big company so nicely. Here I can also learn MIS of
VOTL that is used for transportation of tankers, trains, pipes & marine.
From Financial ratio analysis we can say that VOTL is newly established subsidiary of
ESOLL is working under loss due to highly paid interest to their holding / sister companies
only. Still in comparison to 2008 it’s better in 2009.
From Asset turn over ratio we can found out that company can do turn over only 10 %
(approx) of total turn-over.
From operation project we can say that VOTL is not working under full utilization of
their assets.
But all the Findings are due to the Reason that VOTL is newly established. And
the other Reason is that VOTL is working only for their holding company. So, it has to be
dependent on holding company. But as per my suggestion VOTL should also work for other
companies for more utilization of resources.

Bibliography :
1) http://www.essar.com/
2) http://www.essarnet.com
3) Essar‘s past management reports
4) Financial Annual Reports

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Vadinar Oil terminal Ltd.

SOM-LALIT INSTITUTE OF BUSINESS MANAGMENT,

Vadinar Oil terminal Ltd. 2

I Virat Kothari, a student of Master of Business Administration, Som lalit Institute of

Vadinar Oil terminal Ltd. 3

Knowledge in itself is a continuous process. At this moment, of this substantial enhancement

Vadinar Oil terminal Ltd. 4

9 Cost – Benefit Analysis 52

Vadinar Oil terminal Ltd. 5

In finance project, we have been given a topic of ―Ratio analysis. In

Vadinar Oil terminal Ltd. 6

Vadinar Oil terminal Ltd. 7

Vadinar Oil terminal Ltd. 8

Steel Energy Power Shipping Communications Projects

PT Essar Indonesia Asia’s largest

ESSAR GROUP PHILOSOPHY

Vadinar Oil terminal Ltd. 9

The vision of Essar Group can be defined by the seven E’s:

We are committed to innovative growth,

Vadinar Oil terminal Ltd. 10

Essar‘s Exploration & Production business has participating interests in several

1. The Ratna and R-series blocks on Bombay High.

Vadinar Oil terminal Ltd. 11

3. Coal Bed Methane block at Raniganj in West Bengal.

4. Two E&P blocks in Assam.

Vadinar Oil terminal Ltd. 12

Vadinar Oil terminal Ltd. 13

An additional 1,200MW (co-generation plant of equivalent capacity) is also under

Vadinar Oil terminal Ltd. 14

Work is currently under way to increase generation capacity to 6000MW. The

Vadinar Oil terminal Ltd. 15

Essar Telecom Infrastructure is one of the largest independent telecom

Essar Communications Holdings Limited acquired a 49 per cent stake in Econet

Expected across 650 cities.

Vadinar Oil terminal Ltd. 16

Essar Constructions/Projects is a 4000 people strong global engineering procurement

2. Essar Offshore Sub Sea:

Vadinar Oil terminal Ltd. 17

5. Project management Consultants:

An independent team of project management consultants ensures compliance to processes in

Vadinar Oil terminal Ltd. 18

Vadinar Oil terminal Ltd. 19

The sea transportation business provides transportation management services for a

Essar‘s integrated business model provides opportunities to cater to the complete

Vadinar Oil terminal Ltd. 20

Essar's logistics business provides end-to-end logistics services – from ships to

We own trans-shipment assets to provide lighterage support services, and onshore

Essar‘s sea transportation business provides transportation management services for

Vadinar Oil terminal Ltd. 21

Essar Steel is India's largest exporter of flat steel products.

Essar Power has India's lowest manpower to megawatt ratio.

Vodafone Essar is the second largest cellular service provider in India.

Vadinar Oil terminal Ltd. 22

Shri. Shashi Ruia

Shri. Ravi Ruia

Shri. Prashant Ruia

Shri. Anshuman Ruia

Shri. Rewant Ruia

Vadinar Oil terminal Ltd. 23

Mr. Adil Malia Group President - Human Resources

Group Investment Committee

Mr. J. Mehra CEO - Steel Business Group

This office is situated at North-East side of refinery. That‘s why it is called

There are three windows in this office:

In Window – 1, the activity of creating database including information like

For this, different-different forms have been generated according to the