indian oil corporation limited
DESCRIPTION
Management PresentationTRANSCRIPT
INDIAN OIL CORPORATION LIMITED
BM-622 INDUSTRIAL MANAGEMENT PRESENTATION
MALAVIYA NATIONAL INSTITUTE OF TECHNOLOGY, JAIPUR
INTRODUCTION
IOCL is country’s flagship national oil company, with business interests straddling the entire hydrocarbon value chain - exploration & production of crude oil & gas, refining, pipeline transportation and marketing of petroleum products, natural gas and petrochemicals.
COMPANY OVERVIEW
INDIAN REFINERIES Ltd
1958
INDIAN OIL COMPANY Ltd
1959
1964
ASSAM OIL COMPANY -1981
IOBL-2006
IBP Co. Ltd-2007
BRPL-2009
COMPANIES MERGED
CORPORATE JOURNEY
ESTABLISHED FIRST PUBLIC SECTOR
REFINERY AT GUWAHATI -
1962.
BECOMES FIRST
INDIAN OIL COMPANY TO ESTABLISH
R&D CENTER -1972.
AWARDED ‘NAVRATNA’ STATUS BY
Govt. OF INDIA -1997.
BECOMES FIRST
INDIAN COMPANY TO CROSS THE INR 1000 Bn TURNOVER
MARK -2000.
FIRST INDIAN
PETROLIUM COMPANY TO
START OVERSEAS
RETAIL BUSINESS -
2002.
BECAME TOP NATIONAL
OIL COMPANY IN
ASIA PACIFIC-
2005.
AWARDED ‘MAHARATNA’ STATUS BY
Govt. OF INDIA- 2010.
VISION AND MISSION
VISION
To be the preferred business entity contributing to national energy security and delivering high quality products and services with care for environment.
MISSION
To cater the customer needs in dynamic hydrocarbon market through continuous up-gradation of skills, capabilities and technologies to attain global benchmarks.
OBJECTIVES
To serve the national interests in oil and related sectors in accordance and consistent with Government
policies.
To ensure maintenance of continuous and smooth supply of petroleum products by way of crude oil
refining, transportation and marketing activities and to provide appropriate assistance to
consumers to conserve and use petroleum products efficiently.
To enhance the country’s self-sufficiency in crude oil refining and build expertise in laying of crude oil and
petroleum product pipelines.
To further enhance marketing infrastructure and reseller network for providing assured service to
customers throughout the country.
To create a strong research & development base in refinery processes, product formulations, pipeline transportation and alternative fuels with a view to minimising/eliminating imports and to have next
generation products.
To optimise utilisation of refining capacity and maximise distillate yield and gross refining margin.
To maximise utilisation of the existing facilities for improving efficiency and increasing productivity.
To earn 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.
IOCL- QUICK FACTS• GOVERNMENT ORGANIZATIONS i.e.
RAILWAYS, STATE ROAD TRANSPORT..
• ‘MAHARATNA’ STATUS..• GOVERNMENT NOMINATED
DIRECTORS ON IOC BOARD..
• 10 REFINERS WITH 65.7 MMTPA CAPACITY..
• 31% DOMESTIC REFINING CAPACITY..
• 11000km CRUDE OIL PRODUCTS AND NATURAL GAS PIPELINE WITH A TOTAL CAPACITY OF 77.3 MMTPA..
• NEW FOCUS ON ALTERNATE & RENEWABLE ENERGY..
• 13 DOMESTIC & 10 OVERSEAS BLOCKS..
• 2ND LARGEST DOMESTIC PLAYER IN PETROCHEMICALS..
• MAJOR SUPPLIER TO CORE SECTOR..
• STRONG SUPPORT FROM THE GOVERNMENT OF INDIA..
• LARGEST REFINER IN INDIA..
• PAN INDIA PIPELINE INFRASTRUCTURE..
• STRONG FOCUS ON INNOVATION THROUGH ALTERNATE ENERGY SOURCES..
• INTEGRATED OPERATIONS ACROSS THE ENTIRE ENERGY VALUE CHAIN..
GROUP COMPANIES
NAME BUSINESS
Chennai Petroleum Corporation Limited
Refining of petroleum products
Indian Oil (Mauritius) Ltd. Terminalling, Retailing & Aviation refueling
Lanka IOC PLC. Retailing, Terminalling & Bunkering ofPetroleum Products
IOC Middle East FZE Lube blending & Marketing of Lubricants
IndianOil- CREDA Biofuels Limited
Plantation of Jatropha and extraction ofOil for Bio-diesel
IOC Sweden AB Investment company for E&P Project in Venezuela
IOCL (USA) Inc. Participation in Shale Gas Asset Project
Major divisions of IOCL
Corporate Office New Delhi
R&D
Division
Pipelines Division
Noida
Marketing Division
Mumbai
Refineries Division
New Delhi
Assam Oil Division
ORGANIZATIONAL STRUCTURE
CHAIRMAN (R S BUTOLA)
7 Whole-time Functional Directors
DIRECTOR(RESEARCH &DEVELOPMENT)
DIRECTOR(HUMAN RESOURCE)
DIRECTOR(PLANNING & BUSINESS
DEVELOPMENT)
DIRECTOR(FINANCE)
DIRECTOE(REFINNERIES)
DIRECTOR(MARKETING)
DIRECTOR(PIPELINES)
2 Part-time Non-executive Nominee Directors from MOP & NG
ADDDITIONAL SECRETARY & FINANCIAL
ADVISER(MINISTRY OF
PETROLEUM &NATURAL GAS)
ADDDITIONAL SECRETARY (MINISTRY
OF PETROLEUM &NATURAL GAS)
6 Independent Directors
CORPORATE STRUCTURE
Indian oil is not only the largest commercial enterprise in the country ,it is the flagship corporate of the Indian Nation.
The main products of Indian Oil are petrol, diesel, LPG, auto LPG, aviation turbine fuel, lubricants and petrochemicals: naphtha, bitumen, kerosene etc.
IndianOil operates the largest and the widest network of fuel stations in the country, numbering about 20,575 (16,350 regular ROs & 4,225 Kisan Seva Kendra).
It has also started Auto LPG Dispensing Stations (ALDS). It supplies Indane cooking gas to over 66.8 million households through a network of 5,934 Indane distributors.
PRODUCTS
BRANDED PRODUCTS
DIVERSIFIED PRODUCTS AND BRANDS
Indane Gas - Domestic and Industrial Gas
AutoGas - Automotive Natural Gas
Xtra Premium - Automotive Premium Petrol
Xtra Mile - Automotive Premium Diesel
Servo - Lubricants and Greases
Propel - Petrochemicals
The main services offered by IndianOil are Refining, Marketing, Pipelines, R&D and Training. IndianOil's Research and Development Center (R&D) at Faridabad supports, develops and provides the necessary technology solutions to the operating divisions of the corporation and its customers within the country and abroad.
DIVERSIFIED PRODUCTS AND BRANDS
BRANDED SERVICES
Operates 10 refineries with a total production capacity of 65.7 MMT
Operates a 10,899 km long product and
crude pipeline network as well as maintains a
marketing network with ~ 37,000 touch points
Investing in wider petrochemical product Slate.
Gas distribution – CGD, LNG at Doorstep etc
E&P through equity interest in blocks across the world
Power generation through renewable sources of energy
BUSINESS DESCRIPTION
MAJOR REFINERIES IN INDIA
http://ppac.org.in/writereaddata/India%20Refinery%20Map.pdf
MARKETING
AND
FINANCE
AD CAMPAIGNS
Source: www.iocl.com
Others 322
LPG Bottling Distributorshi
ps 6,467
SKO / LDO Dealerships
3,938
Bulk Consumer
Pumps 6,361
OVER 39,400 CONSUMER TOUCH POINTS
Retail Outlets 22,372
Source: Petroleum Planning and Analysis Cell (PPAC).
RETAIL
OUTL
ETS
CONSU
MER P
UM
PS
LPG D
ISTR
IBUTI
ON
AVIATI
ON F
UEL
0%
20%
40%
60%
80%
100%
46
86
5164
54
14
4936
OTHERSIOC
LEADING MARKET SHARE
Source: Petroleum Planning and Analysis Cell (PPAC).
IOC
RELIAN
CE
HPC
L
BPCL
ESSAR O
IL
ONGC
0%5%
10%15%20%25%30%35% 31%
28%
11%14%
9% 7%
REFINING MARKET SHARE
REFINING MARKET SHARE
Source: www.petroleum.nic.in.
Government Of India’s Ownership
& Support
Capital Raising: Government Approval
Board Control: Members Nominated to IOC Board
Pricing: Select petroleum products based on Govt. initiativeFunctional Directors: Appointment by President of India
Equity Control: 68.92%*
* Remainder by ONGC (13.77%), Oil India (5%) and rest others.
FINANCIAL SUMMARYMarch 2012 (Rs.) MARCH 2013 (Rs.)
EQUITY & LIABILITIES
Shareholders' Funds 57,876.70 61,124.31
Non-current liabilities
32,157.12 38,737.29
Current liabilities 119,825.93 124,133.67
TOTAL 209,859.75 223,995.27
ASSETS
Non-current assets 88,858.29 95,696.70
Current assets 121,001.46 128,298.57
TOTAL 209,859.75 223,995.27
Source: 20_Balance_Sheet_2013.pdf
(Rs. in crores)
FY 09 FY10 FY 11 FY 12 FY 13$0
$10 $20 $30 $40 $50 $60 $70 $80
$48 $46 $56
$69 $76
TURNOVER
Financial Year
Tu
rnove
r i
n U
S $
bil
-li
on
s
Source: iocl investor report (www.iocl.com)
Exchange rate 1US $ = 54.29 INR
FY09 FY10 FY11 FY12 FY13$0.00 $2.00 $4.00 $6.00 $8.00
$10.00 $12.00
$8.10 $9.30
$10.20 $10.70 $11.30
NET WORTH ( Assets - Liabil-ities)
Financial YearNet
Wort
h (
in U
S$
Bil
-li
on
s)
Source: iocl investor report (www.iocl.com)
Exchange rate 1US $ = 54.29 INR
FY09 FY10 FY11 FY12 FY13$0.00
$0.50
$1.00
$1.50
$2.00
$0.50
$1.90
$1.40
$0.70 $0.90
NET PROFIT
Financial Year
Net
pro
fit
( in
US
$ B
il-
lion
s)
Source: iocl investor report (www.iocl.com)
Exchange rate 1US $ = 54.29 INR
HUMAN RESOURCE
EMPLOYEE PROFILE:-• Employee strength as on March 31, 2012 was
34,363 including 14,210 officers. • 2,624 women employees, constituting 7.64% of
the total manpower.• Indian Oil's unique work culture is based on trust,
openness and a commitment to creativity and consultation with every employee making a difference.
• Career Growth Opportunities
Officers at the junior-most level of the management hierarchy. First division professional degree holders and post-graduates from relevant disciplines are recruited .
Job rotation and inter-location transfers throughout the country facilitate planned development of careers and broaden outlook.
• Career growth opportunities are based on the individual's performance and contribution to the common goal of sustained growth.
• Indian Oil's top executives have grown from within -- a testimony to the unlimited opportunities for growth available to the meritorious.
Welfare of Employees
Apart from attractive scales and perks, IndianOil provides its employees many facilities and welfare measures which are continuously upgraded.
•Employees are provided with the best medical facilities
• Apart from fully equipped hospitals at refinery townships, the Corporation also has nominated hospitals at various locations to meet employee needs.
• Holiday homes at select locations throughout the country help employees and their families unwind.
RECRUITMENT
Open• Adv. In leading
national dailies• Apply Online• Selected candidates
called for written, GD, interview.
Campus• Visits IIT’s,
NIT’s etc.• IIM’s• ICAI
Research & Development
• Focus on Products & Technology
INDMAX, Marine Oil, Railroad Oil, Needle Coke etc.• Active Patents Portfolio
Total Patents: 254• Collaborations
CORPORATE SOCIAL
RESPONSOBILITY
• CSR and working with the communities has been the cornerstone of success for Indian Oil right from inception.
• The major thrust areas of the Corporation’s CSR initiatives are ‘Health & Medical Care’ and ‘Expansion of Education’.
• A Committee of the Indian Oil Board specially constituted for CSR, guides the Corporation in undertaking CSR activities in a focused and structured manner and reviews the CSR policy from time to time.
Source: iocl\14A_Report_on_CSR_Activities_2013.pdf
ANNUAL CSR BUDGET
19990.5% of previous
year’s net profit
2009 onwards2% of previous
year’s net profit
LIST OF CSR ACTIVITIES
INDIAN OIL SACHAL
SWASTHYA SEVA (MOBILE
MEDICAL UNITS)
ASSAM OIL DIVISION
HOSPITAL, DIGBOI
SWARNA JAYANTI SAMUDAIK HOSPITAL, MATHURA
ASSAM OIL SCHOOL OF
NURSING, DIGBOI
INDIANOIL (AOD) INDUSTRIAL
TRAINING CENTRE, DIGBOI
LIST OF CSR ACTIVITIES (cont…)
INDIANOIL EDUCATION
SCHOLARSHIP SCHEME
INDIANOIL SPORTS
SCHOLARSHIP SCHEME
LPG SCHEME
INDIANOIL FOUNDATION
NATIONAL CAUSES / NATURAL
CALAMITIES
SWOT Analysis• India's largest
commercial enterprise with a strong brand name.
• Has around 50% petroleum products
• Operates 10 refineries in India
• Huge distribution network through retailing
• Accounts for a 49% share in the petroleum products market, 31% share in refining capacity and 67% downstream sector pipelines capacity in India
• Has over 35,000 employees
• Legal issues• Employee
management• Volatility in the
crude market & subsidy burden
STRENGTH
WEAKNESS
SWOT Analysis (cont…)
• Increasing fuel/oil prices
• Increasing natural gas market
• More oil well discoveries
• Expand export market
• Government regulations
• High competition
OPPORTUNITIES
THREATS
CONCLUSION• Largest Refiner in the Country • Leading Market Share Across the Portfolio • Integrated Operations Across the entire Energy Value
Chain • Strong Focus on Innovation Through R&D and
Alternate Energy Sources • Driven by a Management Team That has Delivered
Results • With Strong Support from the Government of India
REFERENCES
1. http://www.iocl.com2. www.petroleum.nic.in3. http://ppac.org.in4. http://www.thehindubusinessline.in
THANK YOU