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“MARKETING STRATEGY OF IOCL IN INDIA”
DESSERTATION
Submitted to College of Management & Economic Studies for the partial fulfilment of the degree of
BACHELOR OF BUSINESS ADMINISTRATION
(OIL AND GAS MARKETING)
Guided by:
MR. A.LAKSHMAN RAO
Department of MANAGEMENT
College of MANAGEMENT STUDIES
University of Petroleum and Energy Studies
Dehradun
Submitted by:
ANJALI NAUTIYAL
Enrolment No: R170209016
SAP ID: 500008222
College of Management and Economic Studies
University of Petroleum and Energy Studies
Dehradun, Uttarakhand, India
NOVEMBER, 2011
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CERTIFICATE
This is to certify that Anjali Nautiyal has developed and implemented the dissertation work
entitled “Marketing Strategy Of IOCL In India” under my guidance at University Of
Petroleum & Energy Studies from November’11 to april’12 for partial completion of BBA Oil &
Gas from University Of Petroleum & Energy Studies, Dehradun.
The project has been completed successfully to our satisfaction and their conduct during the
tenure of the dissertation was good.
For: “University Of Petroleum & Energy Studies ”,
Name: Mr. A. Lakshman Rao
Designation:
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S.NO CHAPTER PAGENO.
I Introduction
II Literature Review
III Objectives
IV Research Methodology
V Problem Of Statement
VI Conclusion
VII Limitation
Reference
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ACKNOWLEDGEMENT
Dissertation is an integral part of any management program. I feel myself lucky that I got the
opportunity to make my dissertation in one of the largest and most popular oil sector university,
University of Petroleum and Energy Studies.
I take the opportunity to express our gratitude to all of them, who helped us to accomplish this
challenging report in UPES . I wish to express our deepest sense of gratitude towards our
respected mentor, Mr.A.Lakshaman Rao. I have received enormous inputs and inspiration in
various stages of our project from them.
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CHAPTER -1
INTRODUCTION
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INTRODUCTION
Indian Oil Corporation Limited, or Indian Oil is an Indian state-owned oil and gas corporation
with its headquarters in New Delhi, India. The company is the world's 98th largest public
corporation, according to the Fortune Global 500 list, and the largest public corporation in India
when ranked by revenue. Indian Oil and its subsidiaries account for a 47% share in the petroleum
products market, 34% share in refining capacity and 67% downstream sector pipelines capacity
in India .The Indian Oil Group of Companies owns and operates 10 of India's 21 refineries with a
combined refining capacity of 65.7 million metric tons per year. It is one of the five Maharatna
status companies of India, apart from Coal India Limited, NTPC Limited, Oil and Natural Gas
Corporation and Steel Authority of India Limited.
Indian Oil operates the largest and the widest network of fuel stations in the country, numbering
about 19,463 (15,946 regular ROs & 3,517 Kissan Sewa Kendra). It has also started Auto LPG
Dispensing Stations (ALDS). It supplies Indane cooking gas to over 62.4 million households
through a network of 5,456 Indian distributors. In addition, Indian Oil's Research and
Development Center (R&D) at Faridabad supports, develops and provides the necessary
technology solutions to the operating divisions of the corporation and its customers within the
country and abroad.
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HISTORY
Indian Oil began operation in 1959 as Indian Oil Company Ltd. The Indian Oil Corporation was
formed in 1964, with the merger of Indian Refineries Ltd.
PRODUCTS
Indian Oil's product range covers petrol, diesel, LPG, auto LPG, aviation turbine fuel, lubricants,
naphtha, bitumen, paraffin, kerosene etc. Xtra Premium petrol, Xtra Mile diesel, Servo
lubricants, Indane LPG cooking gas, Autogas LPG, IndianOil Aviation are some of its prominet
brands. Recently Indian Oil has also introduced a new business line of supplying LNG (liquefied
natural gas) by cryogenic transportation. This is called "LNG at Doorstep".
REFINERIES
IN ASSAM
Digboi Refinery, in Upper Assam, is India's oldest refinery and was commissioned in
1901. Originally a part of Assam Oil Company, it became part of IndianOil in 1981. Its
original refining capacity had been 0.5 MMTPA since 1901. Modernisation project of
this refinery was completed by 1996 and the refinery now has an enhanced capacity of
0.65 MMTPA.
Guwahati Refinery, the first public sector refinery of the country, was built with
Romanian collaboration and was inaugurated by Late Pt. Jawaharlal Nehru, the first
Prime Minister of India, on 1 January 1962. Its capacity is 1 MMTPA.
Bongaigaon Refinery became the eighth refinery of IndianOil after merger of
Bongaigaon Refinery & Petrochemicals Limited w.e.f. 25 March 2009. It is located at
Dhaligaon in Chirang district of Assam, 200 km west of Guwahati.
IN BIHAR
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Barauni Refinery, in Bihar, was built in collaboration with Russia and Romania. It was
commissioned in 1964 with a capacity of 1 MMTPA. Its capacity today is 6 MMTPA.
IN GUJARAT
Gujarat Refinery, at Koyali (near Vadodara) in Gujarat in Western India, is Indian Oil’s
second largest refinery. The refinery was commissioned in 1965. It also houses the first
hydrocracking unit of the country. Its present capacity is 13.70 MMTPA.
IN WEST BENGAL
Haldia Refinery is the only coastal refinery of the Corporation, situated 136 km
downstream of Kolkata in the Purba Medinipur (East Midnapore) district. It was
commissioned in 1975 with a capacity of 2.5 MMTPA, which has since been increased to
7.5 MMTPA.
IN UTTAR PRADESH
Mathura Refinery was commissioned in 1982 as the sixth refinery in the fold of IndianOil
and with an original capacity of 6.0 MMTPA. Located strategically between the historic
cities of Delhi and Agra, the capacity of Mathura refinery was increased to 8.8 MMTPA.
IN HARYANA
Panipat Refinery is the seventh and largest refinery of IndianOil. The original refinery
with 6 MMTPA capacity was built and commissioned in 1998. Panipat Refinery has
since expanded its refining capacity to 15 MMTPA.
It is believed that the future IOCL refinery Will be Paradeep Refinery. It is expected to
be handover at 2012.
Subsidiary refineries – Chennai Petroleum (10.5 MMTPA)
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GROUP COMPANIES AND JOINT VENTURES
Indian Oil Bhavan, New Delhi.
IndianOil (Mauritius) Ltd.
Lanka IOC PLC – Group company for retail and storage operations in Sri Lanka. It is listed in the
Colombo Stock Exchange. It was locked into a bitter subsidy payment dispute with Sri Lanka's
Government which has since been resolved.
IOC Middle East FZE
Chennai Petroleum Corporation Limited
Green Gas Ltd. – a joint venture with Gas Authority of India Ltd. for city-wide gas distribution
networks.
Indo Cat Pvt. Ltd., with Intercat, USA, for manufacturing 15,000 tonnes per annum of FCC
(fluidised catalytic cracking) catalysts & additives in India.
Indian Oil – CREDA Bio-fuels Ltd., a joint venture with Chattisgarh government for production
and marketing of Bio-fuels.
Numerous exploration and production ventures with Oil India Ltd., Oil and Natural Gas
Corporation.
INTERNATIONAL RANKINGS
Indian Oil is the highest ranked Indian company in the Fortune 'Global 500' listing, 98th position in 2011.
It is also the 18th largest petroleum company in the world and the No. 1 petroleum trading company
among the National Oil Companies in the Asia-Pacific region. IOCL was featured on the 2011 Forbes
Global 2000 at position 243. It is fifth most valued brand in India according to an annual survey
conducted by Brand Finance and The Economic Times in 2010.
LOYALTY PROGRAMS
XTRAPOWER Fleet Card Program is aimed at Large Fleet Operators. Currently it has 1 million customer
base. XTRAREWARDS is a recently launched loyalty program for retail customers where customers can
earn reward points on their purchases.
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COMPETITORS
Indian Oil Corporation has two major domestic competitors, Bharat Petroleum and Hindustan
Petroleum. Both are state-controlled, like Indian Oil Corporation. There are two private
competitors, Reliance Industries and Essar Oil.
CONCERNS
The volatility in the crude market & subsidy burden on the IOCL has dented the company
performance like other PSU oil companies. This is also reflected in its FORTUNE rating this
year. Moreover, bureaucratic hurdles in projects are hurting company advancement. IOCL has
one of the best technical manpower for execution of jobs.The newly announced 5 billion dollar
contract with Iran raises severe implications on the UN and U.S. sanctions on nuclear
proliferation.
OIL INDUSTRY DEVELOPMENT BOARD
India has begun the development of a strategic crude oil reserve sized at 37.4 million barrels
(5,950,000 m3), enough for two weeks of consumption. Petroleum stocks have been transferred
from the Indian Oil Corporation (IndianOil) to the Oil Industry Development Board (OIDB). The
OIDB then created the Indian Strategic Petroleum Reserves Ltd (ISPRL) to serve as the
controlling government agency for the strategic reserve.
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CHAPTER -2
LITERATURE REVIEW
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INDIAN OIL TO BUILD RS 4,500 CRORE LNG TERMINAL IN TN
The Indian Express, New Delhi, March 24, 2012
The Rs4, 500-crore liquefied natural gas (LNG) terminal, to be set up at 132 acres of land in
Ennore, is expected to be ready by 2015, said a top Indian Oil official. Speaking to reporters
after signing an agreement with the Tamil Nadu government in the presence of Chief Minister J
Jayalalithaa here on Thursday, Chairman of Indian Oil R S Butola said that Indian Oil in
partnership with Tamil Nadu Industrial Development Corporation (TIDCO) will strive to
complete the five million tonne per annum (TPA) LNG terminal by 2015.
“We have got some fiscal incentives from the state government for the project,” he said adding
that the LNG terminal would be in modular form. “Southern India does not have adequate
supplies of piped gas and the project will address this gap,” he said. “The initial capacity will be
five million tpa and we can double the capacity later,” said Butola, who signed the agreement
with industry secretary N Sundaradevan, after the release of Vision 2023 document. He said
TIDCO will have a 5-10 per cent stake in the project. “The mode of funding the project cost -
ratio of debt to equity is being worked out,” he added. Butola said LNG will be imported and
Indian Oil is looking at entering into long term LNG supply contract.
INDIAN OIL AND DPCL INK MOU
The Times of India, New Delhi, March 24, 2012
Indian Oil signed an MoU with The Dhamra Port Company Ltd (DPCL) to undertake a techno
commercial feasibility study for setting' up Liquified Natural Gas (LNG) Terminal at Dhamra
Port in Odisha. After completion of the study ,lndian Oil targets commissioning of the proposed
LNG terminal by 2017-18 with an investment of approx INR 5000 crores. Santosh K Mohapatra
CEO, DPCL and AX Marchanda, ED (gas) of lndian Oil signed the MoU in the presence of GK
Dhal, principal secretary commerce and transport department, government of Odisha among
others.
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INDIAN OIL FARIDABAD UNIT TO PUMP IN BIO-FUEL
The Economic Times, New Delhi, March 22, 2012
R&D unit at Faridabad is gearing up to reduce pressure on the supply of conventional fuel by
around 10%.The Indian Oil's R&D facility in Faridabad is going to unveil second generation bio-
fuels in the next 3-4 years, as a result of a decade-long rigorous research work. Confirming the
development, Dr RK Malhotra, director of the research facility said, "If the research and
development work initiated for second and third generation bio-fuels succeeds, in next 3-4 years
the pressure on supply of fossil fuels will go down by around 10 percent."
"We are also trying to generate bio- fuels from agricultural waste such as straws of wheat, maize,
rice, cotton and sugarcane pulps. Moreover, research is also being conducted on generating bio-
fuels through biotechnology using enzymes," explained Dr DK Mi, general manager (alternate
energy), Indian Oil. Dr Tuli added that bio-fuel produced so far have been completely
categorised for various applications. Different blends of fuels can be applied in furnace oil.
Preliminary study on feasibility of bio-oil as cofeed in vacuum resid oil in delayed coker unit has
also been done."He said that Indian Oil's success in the second generation bio-oil research was
the result of past five years of extensive work and lessons learnt from the jatropha (first
generation) failure. The government has allocated Rs 56 crore for the five year research work by
Indian Oil. Dr Malhotra gave credit to his entire team for turning the table in Indian Oil's favour.
He said that rather than hiring full time experts, they hired experts for fixed period and paid them
a little higher.Talking about his team Dr Tuli said, "We hired 10 PhD experts, five post doctors,
retired professors and experts. This formula worked and we were able to attract good scholars to
turn the odds in our favour."
BATTLE FOR BIO-MASS
Dr Tuli stressed upon the requirement of experts in the field of enzyme research. "Due to dearth
of enzyme experts, we are exchanging such experts from the Institute of Chemical Technology
and International Centre of Genetic Engineering of Biotechnology," he said. He said that these
two centres were also doing a good job, but Indian Oil has an edge as it knows the scale of
market and can commercialise its products.N Shiv kumar, spokesperson of Indian Oil's
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Faridabad said, "Biomass pyrolysis is an attractive option for India as solid waste biomass can be
easily converted into liquid products through decentralised units to avoid costlytransportation."
DEDICATED INDIAN OIL WOMEN MARATHONERS MAKE AN
IMPACT
The DNA, Mumbai, March 17, 2012
Nearly 45 women from across Mumbai locations of Indian Oil, Western Region came forth to
pledge their support in generating awareness about cervical cancer, girl child education and
women's safety in public places –the three primary causes highlighted through the DNA half-
marathon held on March 11, 2012 at Bandra Kurla Complex. Saraswathi Joshi, Assistant
Manager (Finance), Indian Oil, Western Region ran the 21km half-marathon to advocate the
cause of girl child education and crossed the finish line in 2 hours and 40 minutes. She expressed
The DNA l Can Women's Half Marathon gave me an opportunity to participate in a sporting
event with the primary aim of contributing to society. No goal seems unachievable as long as
there is a strong reason behind the effort. The half marathon was a challenge I took on to show
that’I Can’ 'and I Did!"
CCI IMPOSES PENALTY ON 50 LPG CYLINDER MAKERS
The Business Line, New Delhi, March 16, 2012
The Competition Commission of India has imposed penalty on 50 private LPG cylinder
manufacturers for collusive bidding against Indian Oil Corporation tender. The Commission has
imposed a penalty on the companies at the rate of seven per cent of the average turnover of the
company. It also warned the contravening parties against indulging in anti-competitive practices.
In a recent order, the Commission said that these private operators had quoted identical rates
during the bidding process floated by Indian Oil for supply of 105 lakh domestic LPG cylinders
(14.2 kg) in 2010-11.In a complaint filed by Pankaj Gas Cylinder, the Commission found that
there was similarity of pattern in the bids by all the 50 bidders who submitted the price bids for
various States. “On the basis of analysis of the bids, we have observed that there was strong
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indication of some sort of agreement and understanding among bidders to manipulate the process
of bidding,” the Commission noted. It noted that of the 63 bidders, who participated in the
tendering process, 50 bidders were qualified for opening price bids, 12 bidders were qualified as
new vendors and one bidder was disqualified. Indian Oil, a leading player in the LPG business
with 48.2 per cent market share, is a major procurer of the 14.2 kg LPG cylinders. In addition to
Indian Oil's tender, Hindustan Petroleum Corporation floated a tender for 36 lakh cylinders, and
Bharat Petroleum Corporation floated tender for procurement of 40.33 lakh cylinders. While
HPCL and BPCL adopted e-platform for tender invitation and finalisation, Indian Oil was
procuring by way of inviting tenders.
INDIAN OIL'S PIPELINES DIVISION CELEBRATED WOMEN'S DAY
The Hindustan Times, New Delhi, March 16, 2012
During International Women's Day organised at IndianOil's Pipelines Division head office,
Noida, eminent Kathak exponent Padamshri Shovana Narayan addressed the IOCians on
‘Energising and Empowering Women'. VS. Okhde, Director (Pipelines),Suneel Sethi, ED
(HR)and Nishi Khurana, President Women in Public Sector, Northern Chapter also addressed the
occasion.
LPG STRIKE AT INDIAN OIL ENDS
The Deccan Chronicle, Kochi, March 09, 2012
With LPG tanker operators calling off their strike late Wednesday night, the IndianOil bottling
plant at Udayamperoor was back in business by Thursday afternoon. But IndianOil officials here
conceded that unlike the strike in mid-January, the seven-day strike this time has affected their
supply considerably. "It will take another two weeks for supply to become normal," said an
official from the Udayamperoor plant. "We will work on the next couple of Sundays as well to
overcome the shortage." The strike was shelved following talks between IndianOil officials and
representatives of tanker operators in South India, held in Chennai.
According to IndianOil officials, the state-run oil major and tanker operators agreed to arrive at a
solution on demands raised by the operators within a month. "We have not agreed to any
demands but will hold negotiations with them (tanker operators)," a senior IndianOil official said
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over phone from Chennai. The Udayamperoor plant official said, "The temporary arrangement
with HPCL for bottling has been called off." According to the official, IndianOil usually delivers
gas cylinders within 25 days of an order being placed, but for some time that time gap might go
up to 35 days. He assured that supply to all adjoining districts of Ernakulam would be
normalised soon. The official said IndianOil, the largest public sector oil retailer, would have to
work overtime to meet the demand expected to rise in the coming Easter and Vishu festival days.
The official also said he had no information about LPG distributors in the state threatening to go
on strike to demand increase in margin. Meanwhile, residents heaved a sigh of relief. "I was
worried since I have just one Indane connection. I am happy the strike has been called off," Ms
Sunitha, a resident of Chilavannoor, said.
INDIANOIL AND DHAMARA PORT IN PACT FOR LNG TERMINAL
The Business Standard, New Delh, March 09, 2012
IndianOil has signed a pact with the Dhamara Port Corporation Ltd to develop a Liquefied
Natural Gas terminal inside the port area at an investment of INR 10,000 crore. A senior DPCL
official said that "A Memorandum of Understanding has been signed between DPCL and
IndianOil for the development of a LNG terminal. Both the companies will soon come out with
an official communique." Confirming the development, a top government official said that
"IndianOil is going to develop an LNG terminal at Dhamara port. The terminal will have a total
capacity of 15 million tonnes per annum." IndianOil is keen to develop the gas terminal in the
eastern coast of the country as the region does not have any such terminal. The LNG terminal
needs 250 to 300 acres of land and will be a part of DPCL's Phase-II expansion programme.
Besides, the oil behemoth plans to use the natural gas as fuel and as feed stock for its proposed
oil refinery and petrochemical complex at Paradip. The refinery is expected to be commissioned
by 2013. It may be noted that IndianOil authorities were in talks with DPCL officials since the
second half of last year for the gas terminal. The oil marketing company was interested to sell the
imported gas to industries based in and around the petrochemicals complex region. India's gas
demand is expected to reach 381 mscmd (million standard cubic metres per day) by 2015,
compared with a supply of 202.9 mscmd. India has an LNG import capacity of 13.5 million
tonnes per annum through two terminals, accounting for about 20% of the country's gas
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requirements. Apart from IndianOil, Petronet LNG was also keen on establishment of an LNG
terminal in Orissa. The gas major had identified Paradip, Dhamara and Gopalpur as probable
locations for its proposed project involving an investment of INR 5000 crore.
INDIANOIL PETRO HUB BOOSTS PANIPAT'S POLYESTER BLANKET
MARKET
The Economic Times, New Delhi, March 09, 2012
The IndianOil petrochemical complex in Panipat has become the catalyst of diversification for
businesses based in the region. The petro hub, which became operational in mid-2010, has given
a boost to the polar blanket industry - a polyester product - having a potential to attract around Rs
80 crore business annually in the city of textile. "There are around 8-10 units manufacturing
polar blankets in Panipat and deriving business from IndianOil’s Naphtha Cracker plant. The
plant is expected to fuel polyester business worth Rs 10,000 crore out of which the polar blanket
segment can contribute around 8-10 percent revenue to the polyester market," said Pawan Garg,
president of All India Association of the Shoddy Yarn. "Daily business of the shoddy yarn in
Panipat is around Rs 1.5 crore and around a quarter of the business is coming from the polar
blanket segment. These blankets are produced for 7-8 months in a year clocking an annual
turnover of Rs 80-90 crore," said Mr Garg. Polar blankets are very soft and light best suited for
babies and senior citizens. It is better than yarn spun blankets in quality and price. The
production cost is also comparatively low giving stiff competition to other types of blankets.
Polar blankets now cost Rs 100.
EXPORT QUALITY
Vishnu Goel, president of the North India Shody Mill Association said that polar blankets are yet
to enter the export market. At present, it would cater to the domestic market only. He said that
the yarn industry can compensate this competition by enhancing its business in the export market
where Indian yarn products are in high demand. He said that if the Inland Container Depots
(ICD), Babarpur in Panipat - chapter of the Container Corporation of India (CCI) - which
provides facility to export products made in Panipat but is unable to import products directly to
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Panipat. Because of this, Panipat businessmen are forced to import from CCI, New Delhi. Mr
Goel said there is an urgent need to enhance facilities at ICD, because in coming days the petro
hub at Panipat is going to add many more export-oriented industries in its fold like auto
components, woven sacks and polyester. "At present, Panipat businessmen are importing around
300 containers from CCI, New Delhi, which is an added burden on the Panipat industry" said
Sukhmal Jain, member of the Haryana Chamber of Commerce and Industries and vice president
(VP) of the Panipat Exporters Association. "If this (import) facility is added to ICD, Panipat, it
would help local businessmen in cutting cost and compete with not just polar but mink blankets
(imported from China) as well," said Mr Jain. He concluded that it would also help polar blanket
business to cater to the export market
REFINING
Born from the vision of achieving self-reliance in oil refining and marketing for the nation,
IndianOil has gathered a luminous legacy of more than 100 years of accumulated experiences in
all areas of petroleum refining by taking into its fold, the Digboi Refinery commissioned in
1901.At present, IndianOil controls 10 of India’s 20 refineries.The strength of IndianOil springs
from its experience of operating the largest number of refineries in India and adapting to a
variety of refining processes along the way.
Having absorbed state-of-the-art technologies of leading process licensors like UOP, Chevron,
IFP, Stone & Webster, Mobil, Haldor Topsoe, KTI/Technip, Linde, CD-Tech, Stork Comprimo,
etc., IndianOil in an excellent position to offer O&M services for latest technologies such as
distillate FCCUs, Resid FCCUs, hydrocrackers, reformers (both semi-regenerative and
continuous catalytic regeneration types), lube processing units, catalytic de-waxing units, cokers,
coke calciners, visbreakers, merox, hydro-treaters for kero and gasoil streams, etc. IndianOil
refineries also have units for producing specialty products such as bitumen, LPG, MTBE,
Butene-1, Propylene, Xylenes, Di-Methyl Terephthalate (DMT), polyester staple fibre (PSF) and
other petrochemicals like Linear Alkyl Benzene, Paraxylene (PX), Purified Terepthalic Acid
(PTA), etc. The Corporation has commissioned several grassroot refineries and modern process
units. Procedures for commissioning and start-up of individual units and the refinery have been
well laid-out and enshrined in various customised operating manuals, which are continually
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updated. IndianOil also offers the specialised services of its experts for commissioning/start-up
assistance depending on the client’s need. Its team is also well-equipped to prepare operation
manuals with clear instructions for plant start-up, operation, shutdown, emergencyhandling,etc.
On the environment front, all IndianOil refineries fully comply with the statutory requirements.
Several Clean Development Mechanism projects have also been initiated. With its vast
experience in successfully implementing SH&E policy and practices at various units, IndianOil
offers its services in ensuring that the clients’ work environment is safe, healthy and
clean.IndianOil also offers faculty assistance for ‘tailor-made’ training programmes that suit the
requirement of refinery or pipelines personnel or a selection of programmes from the clients’
training calendar.Innovative strategies and knowledge-sharing are the tools available for
converting challenges into opportunities for sustained organisational growth. IndianOil’s
Refineries team have a deep understanding of the complexities of all the process units of modern
refineries and can offer comprehensive services of a highly professional nature on different
facets given in details in this segment.With strategies and plans for several value-added projects
in place, IndianOil refineries will continue to play a leading role in the downstream hydrocarbon
sector for meeting the rising energy needs of our country.
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CHAPTER-3
OBJECTIVES & OBLIGATION
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FINANCIAL OBJECTIVES
To ensure adequate return on the capital employed and maintain a reasonable annual
dividend on equity capital.
To ensure maximum economy in expenditure.
To manage and operate all facilities in an efficient manner so as to generate adequate
internal resources to meet revenue cost and requirements for project investment, without
budgetary support.
To develop long-term corporate plans to provide for adequate growth of the
Corporation’s business.
To reduce the cost of production of petroleum products by means of systematic cost
control measures and thereby sustain market leadership through cost competitiveness.
To complete all planned projects within the scheduled time and approved cost.
OBLIGATIONS
Towards customers and dealers:- To provide prompt, courteous and efficient service
and quality products at competitive prices.
Towards suppliers:- To ensure prompt dealings with integrity, impartiality and courtesy
and help promote ancillary industries.
Towards employees:- To develop their capabilities and facilitate their advancement
through appropriate training and career planning. To have fair dealings with recognised
representatives of employees in pursuance of healthy industrial relations practices and
sound personnel policies.
Towards community:- To develop techno-economically viable and environment-
friendly products. To maintain the highest standards in respect of safety, environment
protection and occupational health at all production units.
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Towards Defence Services:- To maintain adequate supplies to Defence and other para-
military services during normal as well as emergency situations.
OBJECTIVE
1) To maximize the utilization of the existing facilities for improving efficiency and
productivity.
2) To understand the marketing strategy of IOCL.
3) To develop long-term corporate strategy to provide for adequate growth of the
Corporation’s business.
Program on “Strategic B2B marketing"
Marketers operate in an external environment consisting of consumers, competitors, channels of
distribution and controls & regulation. These external environmental forces are difficult to
change, at least in the short term. The challenges have arisen because of globalization and
Consumer business is under great threat. Under no circumstances companies can allow the
volumes to shrink. The marketer’s job, therefore, translates to adapting to the external
environment. An appropriate marketing strategy suiting to bulk sale and marketing mix
involving the four Ps (product, price, place & promotion) that fits the environment is achieved
through adaptation and innovative differentiation by Companies worldwide.
Program on “The Cutting Edge”
The programme takes a three pronged approach addressing key cross-functional concerns,
identifying future business front runners and transforming them into leaders. The programme
also enables participants to scan the environment and imparts managerial skills to harness the
resources, technology and capabilities for successfully managing their work areas in a fast
changing social and economic world .
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Program on “Planning & Economics of refinery operations”
The Indian downstream oil sector is poised for exponential growth during next five to six years
and this sector would need to develop its executives with globally benchmarked competencies
and capabilities. IFP Training is globally well known for organizing and hosting world-class
courses covering all topics in the petroleum value chain. It has provided an opportunity for
brining home the best of the globally available training programmes to India, for the benefit of a
larger section of our oil executives. The programme aims at developing broad understanding of
financial parameters of refinery, operations and investment economics for optimizing
profitability of refining business. Besides gaining working knowledge of modern management
tools widely used in refining industry across the globe.
Program on “strategic petro retail marketing”
With Petroleum Marketing becoming increasingly competitive, a closer focus on identifying
customer needs and developing attitudes and skills towards better service and improved products
is required at all levels in the organization. By delivering value proposition that customer’s want-
convenience, participation and anticipation is the key business challenge for companies,
retained / engaged customer (both external and internal) is the most valuable asset of any
organization.This programme sensitizes participants to internalize this understanding of internal
and external customers towards building an enduring organization. The programme is designed
to deliver without disturbing the field executives.
Program on “enhancing shareholders wealth”
Creating and managing shareholders’ value has become a corporate objective universally. There
has been paradigm shift from increasing market share to enhancing shareholders wealth.
Therefore, understanding of value based management concepts would guide decision-making to
create value for the stakeholders of the organization.
Program on “Project Management for competitive advantage”
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Strict adherence to time line of the project, reduction in cost, and meeting high demand on
safety, while maintaining excellent quality in execution, is the prime concern of all project
companies. It amounts to quickly creating a large pool of qualified Project executives, exposing
and imparting them to global skill and mind sets. This programme is focused mainly, on sharing
the best practices and experiences in executing world-class projects, besides providing requisite
inputs to the state of art method applied and knowledge available. The programme aims to
provide a broad understanding of project management, its objectives, techniques and learn how
lo adapt the project management techniques in a more complex environment by integrating plant
staff support for revamp project implementation.
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INDIAN OIL ACADEMIC SCHOLARSHIPS
Indian Oil Corporation Limited - India's largest commercial enterprise and No. 1 Indian
Company in Fortune 'Global 500' listing under its Corporate Social Responsibility Programme is
awarding Educational Scholarships to meritorious students across the country with special
encouragement to girls & physically challenged. Online applications were invited in July, 2011
through Press Advertisement and other means to award 2600 scholarships on merit-cum-means
basis to students pursuing 10+/ITI (2000 scholarships), Engineering (300 scholarships), MBBS
(200 scholarships) and MBA (100 scholarships). We are pleased to announce that after due
scrutiny process, 2600 applicants have been shortlisted for award of scholarship. The list has
been put on site in ascending order of specific Registration Numbers which were generated for
all the individual applicants at the time of applying online. Applicants can see their names in this
list with their Registration Number.
A specific Scholar Number has been generated for all the selected scholars and has been shown
in the list. All selected scholars are advised to note down their scholar number and use it in all
the future correspondence / communication with regard to scholarships. A separate
communication is being sent separately to all the selected scholars enclosing therewith a form
which has to be filled in and sent back. After that first & second instalment (together) of
scholarship amount (by Demand Draft) will be sent to the office of Principal/Head of respective
academic institute/school/college of the selected scholars which should be collected by the
scholars from there. A form showing performance of the student in last Semester/Year is also
being sent along with the DD which has to be filled in & sent back by the Head/Principal of the
respective school/college/institute. Scholars are advised to follow up and arrange to send the
same at the earliest to enable us to process their next instalment of scholarship.
SERVICE (MARKETING)
IndianOil provides a wide range of marketing services and consultancy in fuel handling,
distribution, storage and fuel/lube technical services. With a formidable bank of technical and
engineering talent, IndianOil is fully equipped to handle small to large-scale infrastructural
projects in the petroleum downstream sector anywhere in the country. Our project teams have
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independently or jointly as a consortium, have set up depots, terminals, pipelines, aviation fuel
stations, filling plants, LPG bottling plants, amongst others. IndianOil's fuel management system
to bulk customers offer customized solutions that deliver least cost supplies keeping in mind
usage patterns and inventory levels. A wide network of lubricant and fuel testing laboratories are
available at major installations which is further backed by sector-wise expertise in the core
sectors of power, steel, fertilizer, gas plants, textile mills, etc. Cutting edge systems and
processes are designed around one simple belief-to provide valuable customers with an
unbeatable edge in their business. IndianOil's supply and distribution network is strategically
located across the country linked through a customized supply chain system backed by front
offices located in conceivably every single town of consequence.The wide network of services
offered by IndianOil, Marketing Division is illustrated in this section, which includes;
commercial/reticulated LPG; total fuel management/ consumer pumps; IndianOil Aviation
Service; LPG Business (non-fuel alliances); loyalty programs; retail business (non-fuel alliances)
and SERVO technical services.
RESEARCH & DEVELOPMENT
Indian Oil's world class R&D Centre, established in 1972, has state-of –the art facilities and has
delivered pioneering results in lubricants technology, refining process, pipeline transportation,
bio-fuels and fuel-efficient appliances. Over the past three decades, Indian Oil R&D Centre has
developed over thousands of formulations of lubricating oils and greases responding to the needs
of Indian industry and consuming sectors like Defence, Railways, Public Utilities and
Transportation. The Centre has also developed and introduced many new lubricant products to
the Indian market like multi grade railroad oil. Focused research in the areas of lubricants and
grease formulations, fuels, refining processes, biotechnology, additives, pipeline transportations,
engine evaluation, tri biological and emission studies, and applied metallurgy has won several
awards. The R&D Center’s activities in refining technology are targeted in the areas of fluid
catalytic cracking (FCC), hydroprocessing, catalysis, reside upgradation, distillation simulation
and modeling, lube processing, crude evaluation, process optimization, material failure analysis
and remaining life assessment and technical services to operating units. In FCC, apart from
process optimization and catalyst evaluation the accent is on the development of novel
technologies aimed at value addition to various refinery streams. IndianOil's R&D Centre is fully
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equipped to provide technical support to commercial hydrocracker units in the evaluation of
feedstocks and catalysts, optimization of operating parameters, evaluation of licensors' process
technologies, development of novel processes and simulation models.
Material failure analysis and remaining life assessment of refinery equipment and installations is
a highly specialized service being provided by the R&D Centre to the refineries of IndianOil as
well as other companies. With a vision of evolving into a leader as technology provider through
excellence in management of knowledge, technology and innovation, IndianOil has launched
IndianOil Technology Ltd. The new subsidiary markets the intellectual properties developed by
IndianOil R&D Centre.
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CHAPTER-4
RESEARCH METHODOLOGY
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The study majorly reached on SECONDARY DATA (also known as desk research) involves the
summary, collation and/or synthesis of existing research Secondary research can come from
either internal or external source. According to the secondary data we have make our report on
Marketing Strategy of IOCL in India. Focussing on the fact and earlier reports as well as on the
research and statement of the company. The marketing strategy which IOCL going to implement
on its product is to launch the market as well as the facility which IOCL provide to its customer
and member. IOCL not only focussed in the goal but also focussed in the customer satisfaction.
And during the process of collecting information saw various report of IOCl growth and
development in today world.
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CHAPTER-5PROBLEM STATEMENT
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Though the Indian customer had a choice of branded fuels, there were no clear favorites.
Since it was a recent phenomenon in India, a company promoting branded fuels is faced
with challenges on two fronts:
1) The customer needs to be educated to induce product trials.
2) To ensure that their market share of branded fuels is highest.
To make sure that the marketing strategy which is applied in market is correct.
3) Data in the report is not acqurate.
4) Data in the report is time consuming.
5) Data is collected from secondary source so it took lot of study.
6) During the study we came to know that company focussing not in one field.
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CHAPTER-6
CONCLUSION
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At a time when the petroleum industry is moving towards new horizons, exploring new
technologies, collaborating and developing symbiotic relationships to ensure secure,
environment-friendly and affordable energy supplies, Indian Oil too is seeking quantum leaps in
its core business, adding on new and emerging segments on the way. IndianOil owns and
operates 6 of the refineries with a combined refining capacity of over 25 million tonnes per
annum (5,00,000 bpd). Another 6 million tonnes per annum (1,20,000 bpd) refinery will be ready
during fiscal 1997. Constant technology upgradation enables achievement of over 100% capacity
utilisation. IndianOil has the largest network of over 5,300 km onshore crude oil and petroleum
product pipelines in the country which operate at over 100% capacity and are equipped with
latest technology. IndianOil sold 41.97 million tonnes of petroleum products during the year
1996-97. It markets 55% of the petroleum products consumption of India. In aviation fuels, its
market participation is 69%. Its nationwide retail network of nearly 18,000 sales points (6,731
petrol stations, 3,413 kerosene dealers, 2,834 LPG distributors and 4,820 bulk consumer outlets)
is backed for supplies by 178 bulk storage terminals and depots having a tankage of five million
kilolitres. There are 92 aviation fuel stations besides 39 LPG bottling plants with a capacity of
1.5 million tonnes to cater to nearly 15 million customers in over 1,300 towns all over the
country. IOCL is also having growth in research and development area. Providing more n more
knowledge to the customer, dealers , retailers etc about there products. Introducing new products
and not focussed only in oil but also involved in gas field as well as introducing technologies.
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REFERENCES
1. Google.co.in2. Wikipedia3. Ezninearticles.com4. www.iocl.com 5. Philip Kolter marketing strategy book.6. Hindustan times article.7. Economic times article.