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SUMMER TRAINING REPORT
ON
INDANE LPG,FACTORS AFFECTING ITS CUSTOMERS ANDSALES AND ITS COMPARATIVE ANALYSIS WITH PNG
(Submitted in partial fulfilment for Post Graduate Diploma in
Management, from IMS NOIDA, NOIDA)
Institute of Management Studies,
Noida
SUBMITTED TO SUBMITTED BY
RITU SHARMA ANKIT KUMAR JHA
PGD-11013
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EXECUTIVE SUMMARY
1. The Title Of The
Project
COMMERCIAL LPG, FACTORS AFFECTING ITS
CUSTOMERS AND SALES AND ITS
COMPARATIVE ANALYSIS WITH PNG
2. Name Of The
Organization
INDIAN OIL CORPORATION LTD
3. Institutional Guide Ms. Ritu Sharma , Professor , IMS NOIDA
4. Organizational Guide Mr. Naresh Gera
Chief Area Manager , IOCL, Noida
Project Duration 6 Weeks from 09.05.2012
5. Objectives Primary
- To identify the issues related to Indane Gas
customers
Secondary
- To find out short term problem in every sub-regionso
- to provide solution to the identified problems toimprove upon Corporations image and sales.
-6. Research procedure Sample Size-30
Sampling Technique- Convenient Sampling
Sources of data- Commercial Customers of LPG in NCR
Type of data- Primary and Secondary
Data collection tool- Structured Questionnaire
7. Major Finding Most of the Customers are planningto shift to PNG OF IGL.
8. Recommendation Setting up of Effective Grievance Handling System
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TABLE OF CONTENTS
Topic Page Nos.
Executive Summary 4
Overview of the Industry 6
Company Profile
Products
Services
Indane (special mention)
12
1926
Introduction to research topic 28
Review the Literature 29
Research methodology
Define a problem
Purpose or objectives
Target population
Sampling method
Data collection method
Limitations of the study
31-32
Data analysis 33-40
Findings &Suggestions 41
Conclusion 41
References 42
Appendix
Questionnaires (for PNG & Commercial
LPG customers)
43-44
OBJECTIVES OF THE STUDY
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For any research study there has to be some objectives which canhighlight the purpose of doing the research work.
PRIMARY OBJECTIVES
To study the advantages and disadvantages of PNG.
To study the market penetration of PNG.
To finds the consumer preference of PNG.
To study the comparative analysis of PNG and LPG.
To find out the impact on profitability through shift of customers from LPGto PNG.
GENERAL OBJECTIVES
To get a flavor of Teamwork, Organizational culture, Team dynamics, resultorientation, organizational pressure, complexities in achieving desire result.
To check my theoretical knowledge with comparison to the practical marketdemands.
And at last but not the least for sharpen my career goals for a bright career
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Introduction
Overview of the Industry:
The Indian oil and gas sector is one of the six core industries in India and has verysignificant forward linkages with the entire economy. India has been growing at 8-9
per cent annually and is committed to accelerate the growth momentum in the years tocome. This would translate into India's energy needs growing many times in the yearsto come. Hence, there is an emphasized need for wider and more intensive exploration
for new finds, more efficient and effective recovery, a more rational and optimallybalanced global price regime - as against the rather wide upward fluctuations of recen t
times, and a spirit of equitable common benefit in global energy cooperation.
Oil & Gas - Key Developments and Investments Energy giant Reliance Industries Ltd (RIL) is in full force to strengthen itsglobal leadership position through its ambitious US$ 11 billion-Jamnagar phasethree expansion project (popularly known as J-3 mega petrochemicals project).The company has approached international markets to raise funds for the same.
Recently, RIL officials have signed a US$ 400 million-loan agreement withItalian finance group SACE Spa.
State-run Indian Oil Corporation (IOC) plans to expand its pipeline network(from 10,900 km to 15,000 km) by investing Rs 7,700 crore (US$ 1.55 billion)
by 2015. The company would lay more than 20 new pipel ines to materi al ize it sexpansion plan.
Oil & Natural Gas Corporation (ONGC) and IOC are eyeing exploration andrefining opportunities in Sri Lanka as the island's Government would call for
bi ds for seven oi l and gas blocks in Mannar Basin by June 2012. Both thecompanies are reported to have visited Sri Lanka to review the opportunities
and discuss the prospect with concerned authorities
After setting up two terminals on the western coast, Petronet LNG Ltd isplanning to set up its th ird terminal in the east coas t of India. The terminal ,with a 5 million tonne capacity, is projected to cost around Rs 4, 500 crore
(US$ 902.9 million).
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INTRODUCTION TO THE PROJECT
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ABOUT LPG
Liquefied petroleum gas is one of the most common and an alternative fuels used inthe world today. Liquefied petroleum gas is also called as LPG, LP Gas, or Autogas. The gas is a mixture of hydrocarbon gases used as a fuel for various purposes.
This is mainly used in heating appliances and vehicles and is replacingchlorofluorocarbons as an aerosol propellant. It is also used as a refrigerant mainlyto reduce damage to the ozone layer.LP gas is a mainstay for cooking and heating in some areas of India and rural areasof the United States and the other parts of the world. LPG is also used as alternatefor petroleum and Diesel. The main reason behind this being the soaring in the
prices of the oil, LPG has emerged as much preferred choice. LPG is a fossil fueland can be refined from oil and natural gas.LPG is basically a hydrocarbon with propane and butane as main constituent
Properties of LPG
LPG is twice as heavy as air and half as heavy as water.
LPG is colourless and odourless; hence an odorant is used to detect leaks.
LPG can be compressed at a ratio of 1:250, which enables it to be marked in
portable containers in liquid form.
LPG is safe fuel and ignites only within the specified LPG- Air ratio of 2% to9%.
A high calorific value of 11,900 Kcal/Kg results in high efficiency heatoutput
LPG As Cooking FuelLPG is a gas at normal temperature and pressure. The gas is compressed into aliquid by application of moderate pressure. This action of applying pressure reducesthe volume by approximately 240 times. When the pressure is released, which isdone by opening the cylinder valve, the liquid immediately becomes gas.The appliances that run on LPG are highly efficient. LPG is very clean gas and isalso quick, convenient and safe. It is cheaper than most other fuels except perhapskerosene but it does greatly outweigh the marginal extra cost. It is delivered by gas
agency directly at home
ADVANTAGES OF LPG
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Uninterrupted supply
PNG offers the convenience of ensuring continuous and adequate supply of
PNG at all times, without any problem of storing gas in cylinders.
Unmatched convenienceThe domestic consumers have to take upon themselves the trying task of
booking an LPG cylinder refill, time and again. Then starts the wait for the
deliveryman to deliver the cylinder. Switching over to PNG renders this
entire exercise unnecessary. PNG also eliminates the tedious routine of
checking LPG refill cylinder for any suspected leakage, or it being
underweight, at the time of delivery.
Safety
The combustible mixture of natural gas and air does not ignite if the mixture
is leaner than 5% and richer than 15% of the air-fuel ratio required for
ignition. This narrow inflammability range makes PNG one of the safest fuels
in the world.
Billing
The user is charged only for the amount of PNG used, and no pilferage is
possible with PNG as the billing is done according to the meter. A unique
feature is that the user gets to pay only after consumption of gas. Thedomestic consumer pays the PNG bill only once in four months.
A versatile fuel
Natural gas is being used predominantly as a versatile fuel in many major
cities catering to domestic and commercial applications, as a cooking fuel, for
water heating, space heating, air conditioning, etc.
Environment friendly
Natural gas is one of the cleanest burning fossil fuels, and helps improve thequality of air, especially when used in place of other more polluting energy
sources.
No daily liasioning
The consumer is spared the task of liasioning with oil companies and co-
ordinating with them for ensuring the daily supply of fuel, because PNG is
supplied directly through pipes.
The daily bills, settlements and reconciliation are also avoided as the
consumer is billed once a month, and that too as per the meter reading.
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No spillage and pilferage
In case of fuels like LPG, there are considerable chances of spillage and
pilferage. In case of PNG these losses are invariably done away with, for
PNG is supplied through pipes.
Billing - No up-front payment
The user is charged only for the amount of PNG used, and no pilferage is
possible with PNG as the billing is done according to the meter. The
commercial consumer pays on a monthly basis.
Lower maintenance cost
With PNG, soot or ash accumulation and greasy spillages are absent from
your appliance. Maintenance costs are, thus, driven down.
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Company Profile
INDIAN OIL CORPORATION LTD.
HISTORY OF INDIAN OIL CORPORATION LTD.
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The Indian Oil Corporation Ltd. operates as the largest company in India in terms of
turnover and is the only Indian company to rank in the Fortune "Global 500" listing.
The oil concern is administratively controlled by India's Ministry of Petroleum and
Natural Gas, a government entity that owns just over 90 percent of the firm. Since
1959, this refining, marketing, and international trading company served the Indian
state with the important task of reducing India's dependence on foreign oil and thus
conserving valuable foreign exchange. That changed in April 2002, however, when
the Indian government deregulated its petroleum industry and ended Indian Oil's
monopoly on crude oil imports. The firm owns and operates seven of the 17
refineries in India, controlling nearly 40 percent of the country's refining capacity.
1958
Indian Refineries Ltd. formed in August with Mr Feroze Gandhi as the
Chairman.
1959
Indian Oil Company Ltd. established on 30 th June 1959 with Mr S. Nijalingappa
as the Chairman.
1960
Agreement for supply of Kerosene and Diesel signed with the then USSR.
MV Uzhgorod carrying the first parcel of 11,390 tonnes of Diesel for
IndianOil docked at Pir Pau Jetty in Mumbai on 17th August 1960.
1962
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Guwahati Refinery inaugurated by Pt. Jawaharlal Nehru, Honble Prime
Minister of India.
Construction of Barauni Refinery commenced.
1963
Foundation laid for Gujarat Refinery
Indian Oil Blending Ltd. (a 50:50 Joint Venture with Mobil) formed.
1964
Indian Refineries Ltd. merged with Indian Oil Company with effect from 1st
September, 1964, and Indian Oil Company renamed as Indian Oil Corporation
Ltd.
Barauni Refinery commissioned.
The first petroleum product pipeline from Guwahati to Siliguri commissioned.
1965
Gujarat Refinery inaugurated by HE Dr. S.Radhakrishnan, President of India.Barauni-Kanpur product pipeline and Koyali- Ahmedabad product pipeline
commissioned.
IndianOil People maintained the vital supply of Petroleum products to
Defence Services during Indo-Pak war.
1967
Haldia Barauni product pipeline commissioned. Bitumen and marinebunkering businesses commenced.
1968
Techno-economic studies for Haldia-Calcutta, Bombay-Pune and Bombay-
Manmad Pipelines submitted to Government.
1969
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Marketing of Madras Refineries Ltd. products commences.
1970
Acquired 60% majority shares of IBP Co. Ltd. The same was offloaded infavor of the President of India in 1972.
1971
Dealership/reservation extended to war widows, disabled Defence personnel,
freedom fighters, etc. for the first time after the Indo-Pak war.
1972
R&D Centre established at Faridabad.
SERVO, the first indigenous lubricant, launched.
1973
Foundation-stone of Mathura Refinery laid by Mrs. Indira Gandhi, Honble
Prime Minister of India.1974
Indian Oil Blending Ltd. became the wholly-owned subsidiary.
Marketing Division attained a new watershed with market participation of
64.2%.
1975
Haldia Refinery commissioned. Multipurpose Distribution Centres
introduced at 132 Retail Outlets pioneering rural convenience.
1977
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Nutan wick stove launched by R&D Centre.
1978
Phase-wise commissioning of Salaya-Mathura crude oil pipeline begins.
1981
Digboi Refinery and Assam Oil Company's (AOC) marketing operations
vested in IndianOil and it became Assam Oil Division (AOD) of IndianOil.
1982
Mathura Refinery and Mathura-Jalandhar Pipeline commissioned.
1983
Massive augmentation of LPG storage and distribution facilities undertaken.
Proposal for the 6 MMTPA Refinery at Karnal submitted.
1984
Taluka Kerosene Depots (TKDs) commissioned for improved availability of
kerosene in rural and hilly areas in addition to Multipurpose
DistributionCentres.
Foreshore Terminal at Kandla Port commissioned.
Integrated Corporate Planning a 10-year Perspective Plan and 5-year Long
Range Plan initiated.
1985
New office complex for Registered Office of the Corporation and HeadOffice
of Marketing Division in Mumbai completed.
1986
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A new Foreshore Terminal at Madras commissioned.
1987
Test marketing of 5 kg LPG cylinders begins in 1986-87 in Garo Hills andKumaon.
1989
Salaya-Mathura crude oil pipeline suitably modified for handling Bombay
High Crude during winter.
1990
Kandla-Bhatinda product pipeline project approv
First LPG Bottling Plant of Assam Oil Division (AOD) commissioned at
Silchar.
1991
Digboi Refinery modernisation project initiated.
Bunkering facility at Paradip commissioned.
1993
New era Micro-processor based Distributed Digital Control Systems
replacing the pneumatic instrumentations began in refineries.
1994
India's first Hydrocracker commissioned at Gujarat Refinery. Vision-2000, the Retail Visual Identity programme launched to upgrade retail
outlets.
1995
1,443 km. long Kandla-Bhatinda product pipeline commissioned.
First lndane Home Shoppe launched.
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1996
State-of-the-art LPG Import Terminal at Kandla (capacity of 6,00,000 tonnes
per annum) commissioned.
First batch of one-year International MBA (iMBA) programme passes out of
IndianOil Institute of Petroleum Management (IIPM).
1997
Business Development received renewed thrust with new functional group.
Indian Oil enters into LNG business through Petronet LNG -a JV company.
19981998
Panipat Refinery was commissioned.
Haldia, Barauni Crude Oil Pipeline (HBCPL) was completed.
The Administrative Pricing Mechanism (APM) was withdrawn from the
Refining Sector effective 1" April 1998. Phase-wise dismantling of APM began.
19991999
Indian Hydrocarbon Vision -2025" was announced at PETROTECH-99,
organised by Indian Oil on behalf of the oil Industry.
Diesel Hydro-desulphurisation Units commissioned at Gujarat, Panipat,
Mathura and Haldia Refineries.
Manthan -- the IT re-engineering project was launched.
20002000
Indian Oil crossed the turnover of the magical mark of Rs l ,00,000 Crore --
the first Corporate in India to do so.
Indian Oil entered into Exploration & Production (E&P) with the award of
two exploration blocks to Indian Oil and ONGC consortium under NELP-1
Y2K compatibility achieved.
JNPT Terminal was commissioned.
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20012001
Digboi Refinery completed 100 years of continuous operation.
Chennai Petroleum Corporation Ltd. (CPCL) and Bongaigaon Refinery and
Petrochemicals Ltd. (BRPL) were acquired.
Fluidised Catalytic Cracker Unit at Haldia Refinery was commissioned.
Augmentation of Kandla-Bhatinda Pipeline (KBPL) to 8.8 MMTPA
completed.
Eight Exploration blocks awarded to the Indian Oilled consortium under
NELP-II.20022002
APM dismantled. Pricing of Petroleum products decontrolled.
IBP Co. Ltd. was acquired with management control.
Barauni Refinery expansion project completed.
New generation auto fuels IOC Premium and Diesel Super introduced.
20032003
Lanka IOC Pvt. Ltd. (LIOC) launched in Sri Lanka.
Retail operations began in Sri Lanka. Indian Oil became the first Indian Petroleum
Company to begin downstream marketing operations in overseas market. Lanka
IOC became an independent oil company in Sri Lanka
Gasahol, 5% ethanol blended petrol, was introduced in select states.
20042004
Indian Oil turned a Gas marketer by sale of regasified LNG.
Lanka IOC Pvt. Ltd. (LIOC) launched in Sri Lanka.
Gasahol, 5% ethanol blended petrol, was introduced in select states.
INDMAX unit at Guwahati Refinery commissioned.
Maiden LPG supplies to Port Blair.
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20052005
The year marked Indian Oil's big ticket entry into the high stakes business of
E&P.
Indian Oil's Mathura Refinerywas the first refinery in India to attain the
capability of producing entire quantity of Euro-III compliant diesel by
commissioning the Rs 1046 crore DHDT (Diesel hydrotreating unit).
Indian Oil breached the Rs 150, 000 crore mark in sales turnover by
clocking Rs 150, 677 in turnover in fiscal 2004.
Indian Oil signed a JV agreement with GAIL to enter the city gas
distribution projects in Agra and Lucknow.
Indian Oil allowed by Government of India to charter crude oil ships on its
own instead of going through Transchart, the chartering wing of the
Ministry of Shipping.
2006
Panipat Refinery capacity enhanced from 9 to 12 MMTPA
World-scale Paraxylene/Purified Terephthalic Acid (PX/PTA) plant
commissioned at Panipat as mother plant for polyester industry
Chennai-Trichy-Madurai product pipeline dedicated to the nation.
2007
Marketing subsidiary IBP Co. Ltd. merged with parent company.
Concept ofSERVOXpress Centres as one-stop shops for autocare services
launched.
Lanka IOC commissions Lube Blending Plant and laboratory for testing
fuels and lubricants at Trincomalee
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Concept of LNG at the doorstep launched for customers located away from
gas pipelines
2008
SERVO lubricants launched in Oman.
IndianOil Chairman elected as President of World LP Gas Association.
Introduction to the Organization
IndianOil is India's flagship national oil company with business interest straddlingthe entire hydrocarbon value chain from refining, pipeline transportation andmarketing of petroleum products to natural gas and petrochemicals. It is the leadingIndian corporate in the Fortune 'Global 500' listing, ranked at 83 by sales turnover
for the year 2011.
IndianOil and its subsidiaries have a dominant share of the petroleum productsMarket, national refining capacity and downstream sector pipelines capacity inIndia. With over a 34,000-strong workforce, IndianOil has been helping meetIndias energy demands for over five decades now. At IndianOil, operations areStrategically structured along business verticals - Refineries, Pipelines,Marketing,R&D and Business Development - E&P, Petrochemicals and NaturalGas.
IndianOil controls 10 of Indias 20 refineries with a group refining capacity of65.7MMTPA. Its cross-country network of crude oil, product and gas pipelines,Spanning 10,899 km with a capacity of 75.2 MMTPA, is the largest in the country.With a throughput of 68.5 million tonnes, it meets the vital energy needs oftheconsumers in an efficient and environment-friendly manner.
IndianOil has a formidable network of customer touch-points dotting theLandscapeacross urban and rural India. With a countrywide network of salesPoints, backed forsupplies by bulk storage terminals and depots, aviation fuelStations and LPGas
bottling plants, IndianOil services every nook and corner of thecountry, every hourof the day. Indane LPGas is present in almost all marketsthrough a vast network ofdistributors. A large network of consumer pumps is alsoin operation for theconvenience of bulk consumers, ensuring products andinventory at their doorstep.
IndianOil has a portfolio of powerful and much-loved energy brands that includeIndane LPG, SERVO lubricants, XtraPremium petrol, XtraMile diesel,Propelpetrochemicals etc. Validating the trust of millions of motorists, IndianOil
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hasbeen voted the Most Trusted petrol station brand in the country for the year2010-11.IndianOil's ISO-9002 certified Aviation Service commands the largestmarketshare in the aviation fuel business, successfully servicing the demandsofdomestic and international flag carriers, private airlines and the Indian
DefenseServices. The Corporation also enjoys a dominant share of the bulkconsumer,industrial, agricultural and marine sectors.With a steady aim of maintaining its position as a market leader and providing
bestquality products and services, IndianOil is investing over ` 47,000 crore in ahostof projects for augmentation of refining and pipeline capacities, expansionofmarketing infrastructure and product quality up gradation.
IndianOil has a world-class R&D Centre that is the finest in Asia. It conductsPioneering work in lubricants formulation, refinery processes,pipelineTransportation and alternative fuels. The Centre holds 212 active patents,with over100 international patents.
Having set up subsidiaries in Sri Lanka, Mauritius and theUnited Arab Emirates(UAE), IndianOil is simultaneouslyscouting for new business opportunities in theenergymarkets of Asia and Africa. Indian Oils businessDevelopment initiativescontinue to be guided by itscorporate vision of becoming a diversified,transnationaland integrated energy company. Its business strategyfocuses primarily
on expansion across the hydrocarbon value chain, both withinand outside thecountry.
Over the years, natural gas has emerged as the 'fuel of choice' across the world.Naturalgas marketing is another thrust area for IndianOil with special focus on CityGasDistribution (CGD) business. The Corporation has entered into franchiseagreementswith several CGD players to market Compressed Natural Gas through itsretail outlets.Green Gas Ltd., IndianOil's joint venture with GAIL (India) Ltd., isalready operational inAgra and Lucknow in the state of Uttar Pradesh and is
furtherexpanding to cater to the increased demand in various sectors.
IndianOil has a concerted social responsibility programme to partnercommunitiesfor health, family welfare, education, environment protection,
providing potablewater, sanitation, and empowerment of women and othermarginalized groups.IndianOil has always been at the forefront in times of nationalemergencies.IndianOilPeople have time and again rallied to help victims of naturalcalamities, maintaining uninterrupted supply of petroleum products andcontributing to reliefand rehabilitation measures. IndianOil has successfully
combined its corporatesocial responsibility agenda with its business offerings,meeting the energy needsof millions of people every day, across the length and
breadth of the country.
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Mission, Vision & Values of Indian Oil
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ORGANIZATIONAL STRUCTURE OF IOCL:
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LIST OF KEY MANAGEMENT PERSONNEL
R S Butola CHAIRMANDR R K MALHOTRA Director ( Research & Development)
SUDHIR BHALLA Director (Human Resources)
A M K Sinha Director (Planning & Business Development)
P K Goyal Director (Finance)
R K Ghosh Director (Refineries)
Makrand Nene Director (Marketing)
V S Okhde Director (Pipelines)
Sudhir Bhargava Additional SecretaryMinistry of Petroleum & Natural Gas
Anees Noorani Managing Director
Zodiac Clothing Company Ltd.
Michael Bastian Former Chairman & Managing Director,Syndicate Bank
Dr.(Mrs.) Indu Shahani Principal, HR College of Commerce &Economics,Mumbai and Sheriff of Mumbai
Prof. Gautam Barua Director,Indian Institute of Technology,Guwahati
N K Poddar Senior Advocate,Kolkata
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CURRENT SALES
Indian Oil Corporation Ltd. is Indias largest company by sales with a turnover of Rs. 3,28,744
crore ($ 72,125 million) and profit of Rs. 7445 crore ($ 1,633 million) for the year 2010-11.
IndianOil is the highest ranked Indian company in the latest Fortune Global 500 listings, ranked at
the 83rd position.
PRODUCTS MIX/ PROFILE OF IOCL
The Products produced by IOCL are broadly classified into the following cases:
Class A:
1. Liquid Petroleum Gas (L.P.G)
Class B:
2. Motor Spirit (M.S.)/Gasoline
3. Super Kerosene Oil (S.K.O)
4. High Speed Diesel Oil (H.S.D)
Class C :
5. High Speed Diesel Oil (H.S.D)
6. Furnace Oil (F.O.)
7. Bitumen
8. Naphtha
9. Aviation Turbine Fuel (A.T.F)
Class D :
10.Mineral Turpentine Oil (M.T.O)
11.Jute Batching Oil (J.B.O)
12.Light Diesel Oil (L.D.O)
13.Unleaded petroleum
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Indraprastha GasLtd.
SWOT ANALYSIS OF INDIAN OIL
STRENGTHS
HIGH FOREIGN EXCHANGE DEBT.
IOCL has managed to significantly cut its borrowing cost due to high share of
foreign exchange debt. Its share of foreign exchange borrowings is increasing with
foreign exchange loans crossing 50% of its total debt compared to 42% at the end of
the last financial year.
HIGHEST MARKET SHARE
As India's flagship national oil company, Indian Oil accounts for 56% petroleum
products market share, 42% national refining capacity and 67% downstream
pipeline throughput capacity.
EXPERTISE IN OIL & GAS INDUSTRY
Indian Oil is one of the leaders in providing engineering, construction and
consultancy services to the pipeline industry. Highly qualified professionals with
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vast experience execute pipeline projects from concept to commissioning and
provide services for construction supervision and project management.
FOREIGN SUBSIDIARIES AND JOINT VENTURES
Indian Oil is strengthening its existing overseas marketing ventures and
simultaneously scouting new opportunities for marketing and export of petroleum
products in foreign markets. Two wholly owned subsidiaries are already operational
in Sri Lanka and Mauritius, and regional offices at Dubai and Kuala Lumpur are
coordinating expansion of business activities in Middle East and South East Asia
regions.
WEAKNESS
STRINGENT CORPORATE POLICIES
The decisions relating to administration are taken at the corporate level. Even minor
proposals are to be referred to the top management. This leads to a delay in
decision-making.
LACK OF MARKETING EFFORTS
Among the public sector oil companies, Indian Oil Corporation is the only one to
follow a weak marketing strategy. It in only in the recent years that the company
has started to market its products. However, still the efforts seem to be weak when
compared with the competitors like BPCL and HPCL.
PROMOTION POLICY
Most of the public sector companies seem to suffer from these lacunae. Theemployees are promoted mainly on the basis of experience and not on the efforts
and initiatives displayed by the employee in his work. This results in demotivation
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and lack of interest for their work on the part of the hardworking employees, who
then tend to shift jobs to satisfy their need for self-esteem.
TENDER PROCESS
The policy of selection of the lowest bidder tends to affect the quality of the
products/services on some occasions. A more simplistic procedure is also likely to
generate some savings for the company, since tendering process leads to expenses
on account of advertisement.
OPPORTUNITIES
Exploration and Production
Indian Oil is metamorphosing from a pure sector company with dominance in
downstream in India to a vertically integrated, transnational energy behemoth. The
Corporation is making investments in E&P and import/marketing ventures for oil
and gas in India and abroad, and is implementing a master plan to emerge as a
major player in petrochemicals by integrating its core refining business with
petrochemical activities.
THREATS
Entry of Big Private players
The opening up of the oil sector for private players poses a threat even for this well-
established company. With Indian players like Reliance and Essar and foreign
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players like Shell planning their entry into the Indian scenario, the road seems to be
tough for Indian Oil.
RESEARCH METHODOLOGY
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RESEARCH OBJECTIVES :
1. Market Attractiveness Evaluation:o Competitive presence and customer preference.
o Customer spending patterns, budget cycles, and intent.
o Channel trends, preferences.
2. Customer Insight: Specific customer needs, aspirations, buying behaviors,usage patterns, decision models, preferences, favorability, intentions,etc.
3. Competitive Forces: Current and potential basis of competition in amarket.
4. Communications Planning: What information sources do prospectivecustomers pay attention to, how to reach them, opportunities / vehiclesfor influencing target customers and which are most effective.
RESEARCH DESIGN
Exploratory experimental Research.
The research is primarily both exploratory in nature. The sources of information are
both primary & secondary.
Sample Unit
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amount of time as the respondents is quick enough to choose from among the
options given to him.
Secondary data:
Different published and unpublished (only online) materials basically articles from
the internet have been focused on.
Companys annual reports
Companys journal and magazines
Companys website
Companys leaflets
Companys pamphlets
Products and sales report
Data Analysis:
The following graphs and table are basically a representation of the respondents in
the form of questionnaire being filled by them. The number and percentage wise
distribution is shown below and also separate analysis of the graphs has been shown
therewith.
DATA ANALYSIS AND INTERPRETATION
Q1.Showing the response of respondents regarding the preference
for a particular OilMarketing Company for fuel purchase
SL. NO. Response NO. Of Responden
ts
Percentage(%)
1. Yes 174 87%2. No 26 13%
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INTERPRETATION:
From the above analysis it is found that 87% of the respondents prefer fuel From Indian Oil whereas
13% respondents purchase fuel from different companies.
2. Showing the response of respondents regarding the preference
Of INDIAN OIL in comparison to others
SL. NO. Response NO. Of Respondents
Percentage(%)
1 IOCL 98 49%
2 BPCL 66 33%
3 HPCL 24 12%
4 IGL, Others 12 6%
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INTERPRETATION:
According to the survey conducted, it has been observed that 49% of the respondents
prefer INDIAN OIL for the purpose of purchasing fuel which is followed by BPCL (33%) and
HPCL (12%). Even 6% of the respondents prefer companies like IGL.
3. Showing the response of respondents about the convenience of PNG
ascompared to LPG.
SL. NO. Respons
1 AGREE
2 DISGARE
3 NEUTRA
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INTERPRETATION:
The above analysis shows that 76% of the respondents are satisfied with the working of PNG and
3% of the respondents do not agree with it. Whereas 21% of the respondents said that they do not
find any difference between the two.
6. Showing the response of respondents regarding the problem of leakage.
SL.NO Response No. Of
Respondents
Percentage
(%)1. PNG 12 6%
2. LPG 188 94%
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INTERPRETATION:
According to the survey conducted 94% of the respondents say that the problem of
leakagemostly occurs with LPG due to several reasons like defective cylinder which creates
risk andalso injures people.
7. Showing the response of respondents that whether PNG reduces thechances of accidents.
SL.NO Response No. Of
Respondents
Percentage
(%)1. AGREE 174 87%
2. DISAGREE 22 11%3. NEUTRAL 4 2%
INTERPRETATION:
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INTERPRETATION:
According to the above analysis 89% of the respondents say that PNG reduces the tedious task of
booking a cylinder whereas 11% of the respondents do not find booking a cylinder as a tedious task.
9. Showing the response of respondents that whether there exists any kindof pilferage as far as
billing is concerned.
SL.NO Response No. Of
Respondents
Percentage
(%)1. AGREE 108 54%
2. DISAGREE 92 46%
INTERPRETATION:
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The above analysis shows that 54% of the respondents say that there exists problem in the case of
PNG while billing is done whereas 46% of the respondents say that there does not exist any kind of
pilferage as far as billing is concerned.
.
10. Showing the response of respondents regarding uninterrupted supply of gas without
inconvenience
SL.NO Response No. Of
Respondents
Percentage
(%)1. YES 136 68%
2. NO 64 32%
INTERPRETATION:
According to the above analysis 68% of the respondents say that there is an uninterrupted supply of
gas when they use PNG whereas 32% do not agree with the same .
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FINDINGS OF THE STUDY
On the basis of Primary data analysis:
I surveyed 200 respondents as in total and on the basis of the questionnaires
being filled by them, I can say that:
Around 87% of the respondents prefer a particular Oil MarketingCompany i.e Indian Oil for purchasing fuel.
Amongst all the competitors BPCL is the biggest threat for IOCLfollowed by HPCL.
It has been observed that majority of the respondents (62%) find PNG
more convenient than LPG.
Around 74% of the respondents find PNG more economical as comparedto LPG.
More than 3/4th of the people that is 76% people are satisfied with theworking of PNG.
Maximum respondents i.e. 94% people say that the problem of leakage
occurs mostly in the case of LPG.
87% of the people surveyed agreed that PNG reduces the chances ofaccidents.
Around 89% people feel that PNG reduces the tedious task of booking anLPG cylinder.
Almost half of the people disagree that there exists any kind of pilferage asfar as billing is concerned.
68% of the respondents said that there is uninterrupted supply of gas without
inconvenience in case of PNG.
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PROBLEMS/LIMITATIONS OF RESEARCH
a. Lack of Training: The lack of scientific training in the methodology of research is a
great handicap during research.
b.Repetition: Research studies overlapping one another are undertaken quite often for
want of adequate information.
c. Lack of Resources: For conducting a quality researchAdequate funds are not provided.
g. Lack of Coordination: There exists lack of coordination among various agencies
responsible for conducting research.
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APPENDIX
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Questionnaires for Customers
Basic Details
Name -
Contacts-
Address-
1) Till when you used LPG?
2)What is your consumption in kg/month?
3)Which type of cylinders you used?
a) LOT b) VOT
4) What was the capacity?
a) 14.2kg b) 19 kg c) 47.5kg
5)What was your consumption of total cylinders per month?
6) What were the reasons for shifting to PNG from LPG?
7)Advantages & disadvantages w.r.t to LPG?
8)Who are your service providers?
9)What is the price you pay and discount you get?
10) Is customer aware of setting of Pipelines in his/her Area?
10)Problems faced (if any) & suggestions?
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BIBLIOGRAPHY
Books:
Kothari, C.R.,Research Methodology Sultan Chand Publication, New
Delhi, 2004.
T.N. Chhabra, Marketing Management
Philip Kotler, Marketing Management -Kevin Lane Keller.
Web Pages:
http://www.iocl.com/aboutus.aspx
http://www.lpg.in/index.html
http://en.wikipedia.org/wiki/Pipeline_transport
http://www.iglonline.net/BenefitsPNG.aspx http://www.iglonline.net/AboutPNG.aspx
http://www.iocl.com/aboutus.aspxhttp://www.lpg.in/index.htmlhttp://www.lpg.in/index.htmlhttp://en.wikipedia.org/wiki/Pipeline_transporthttp://www.iglonline.net/BenefitsPNG.aspxhttp://www.iglonline.net/AboutPNG.aspxhttp://www.iocl.com/aboutus.aspxhttp://www.lpg.in/index.htmlhttp://en.wikipedia.org/wiki/Pipeline_transporthttp://www.iglonline.net/BenefitsPNG.aspxhttp://www.iglonline.net/AboutPNG.aspx