shakeel iocl final report (autosaved)123

8/9/2019 SHAKEEL IOCL Final Report (Autosaved)123

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FINAL REPORT ON 3

MONTHS OFINTERNSHIP AT

TOPIC: selling ofXtraRewards cards, Alliance partnersand Recruitments of potential DSA.

FACULTY GUIDE: Mr. Suryakant Mishra

COMPANY GUIDE: Mr. Simitbinayak Endow

SUBMITTED BY: Shakeel Damani.

ENR. NO. 8NBBB083


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Content

OVERVIEW OF OIL INDUSTRY

COMPANY PROFILE

PRODUCTS

SERVICE

SWOT

SIP TOPIC INTRO ACHIEVEMENTS AND FINDINGS

CONCLUSIONS/LEARNINGS


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Overview of oil industry

The petroleum industry includes the global processes ofexploration,

extraction, refining, transporting (often by oil tankers and pipelines),

and marketing petroleum products. The largest volume products ofthe industry are fuel oil and gasoline (petrol).

Petroleum is also the raw material for many chemical products,

including pharmaceuticals, solvents, fertilizers, pesticides, and

plastics. The industry is usually divided into three major components:

upstream, midstream and downstream. Midstream operations are

usually included in the downstream category.

Petroleum is vital to many industries, and is of importance to the

maintenance of industrialized civilization itself, and thus is a critical

concern for many nations. Oil accounts for a large percentage of the

worlds energy consumption, ranging from a low of 32% for Europe

and Asia, up to a high of 53% for the Middle East. Other geographic

regions consumption patterns are as follows: South and Central

America (44%), Africa (41%), and North America (40%). The world

consumes 30 billion barrels (4.8 km) of oil per year, with developed

nations being the largest consumers. 24% of the oil produced in 2004

was consumed in the United States.[1] The production, distribution,

refining, and retailing of petroleum taken as a whole represents the

world's largest industry in terms of dollar value.

The petroleum industry contains some of the worlds largest

companies and has a strong influence on important global
http://en.wikipedia.org/wiki/Hydrocarbon_explorationhttp://en.wikipedia.org/wiki/Extraction_of_petroleumhttp://en.wikipedia.org/wiki/Oil_refineryhttp://en.wikipedia.org/wiki/Oil_tankerhttp://en.wikipedia.org/wiki/Pipeline_transporthttp://en.wikipedia.org/wiki/Petroleumhttp://en.wikipedia.org/wiki/List_of_crude_oil_productshttp://en.wikipedia.org/wiki/Fuel_oilhttp://en.wikipedia.org/wiki/Gasolinehttp://en.wikipedia.org/wiki/Petrochemicalhttp://en.wikipedia.org/wiki/Upstream_(oil_industry)http://en.wikipedia.org/wiki/Midstreamhttp://en.wikipedia.org/wiki/Downstream_(oil_industry)http://en.wikipedia.org/wiki/Industrieshttp://en.wikipedia.org/wiki/Civilizationhttp://en.wikipedia.org/wiki/Europehttp://en.wikipedia.org/wiki/Middle_Easthttp://en.wikipedia.org/wiki/Central_Americahttp://en.wikipedia.org/wiki/Central_Americahttp://en.wikipedia.org/wiki/Africahttp://en.wikipedia.org/wiki/North_Americahttp://en.wikipedia.org/wiki/Barrel_(unit)http://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/Oil_industry#cite_note-0http://en.wikipedia.org/wiki/Extraction_of_petroleumhttp://en.wikipedia.org/wiki/Oil_refineryhttp://en.wikipedia.org/wiki/Oil_tankerhttp://en.wikipedia.org/wiki/Pipeline_transporthttp://en.wikipedia.org/wiki/Petroleumhttp://en.wikipedia.org/wiki/List_of_crude_oil_productshttp://en.wikipedia.org/wiki/Fuel_oilhttp://en.wikipedia.org/wiki/Gasolinehttp://en.wikipedia.org/wiki/Petrochemicalhttp://en.wikipedia.org/wiki/Upstream_(oil_industry)http://en.wikipedia.org/wiki/Midstreamhttp://en.wikipedia.org/wiki/Downstream_(oil_industry)http://en.wikipedia.org/wiki/Industrieshttp://en.wikipedia.org/wiki/Civilizationhttp://en.wikipedia.org/wiki/Europehttp://en.wikipedia.org/wiki/Middle_Easthttp://en.wikipedia.org/wiki/Central_Americahttp://en.wikipedia.org/wiki/Central_Americahttp://en.wikipedia.org/wiki/Africahttp://en.wikipedia.org/wiki/North_Americahttp://en.wikipedia.org/wiki/Barrel_(unit)http://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/Oil_industry#cite_note-0http://en.wikipedia.org/wiki/Hydrocarbon_exploration


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geopolitical developments. Economic growth, behaviour of the OPEC

countries, export of crude oil by republics of the former Soviet Union,

and increased environmental concerns and regulations are some of

the important drivers in this industry. The petroleum industry is

vulnerable to supply and demand imbalances. Prices have fluctuatedfrom $4 to $40 in the past.

In India, the petroleum industry is still regulated though the

government is slowly but surely liberalizing the industry. Almost 95

percent of petroleum products in India are controlled, the exceptions

being lubricants, LPG, toluene and benzene. The Oil Co-ordination

Committee (OCC), a central government body is responsible for

important decisions regarding investments, location, production, and

distribution and pricing of petroleum products. By allowing private

companies to market some of the products, and by rationalizing the

import tariffs, the government hopes to pave the way for a free

market in the oil industry in a gradual manner.

The controls of the past have significantly affected the structure of

the Indian petroleum industry. While the global trend is of integratedoil companies with a presence in all the sectors viz. exploration,

refining, marketing and even manufacture of downstream products,

presence of Indian companies is typically restricted either to the

upstream or to the downstream sectors. The oil sector is currently

dominated by the public sector. But the private sector is poised for

an increased role owing to the large number of projects on the anvil.

In India, demand for petroleum products is expected to grow at 7

percent till 2003, compared to the world average of 2 percent.

Till 1996, the oil sector in India was a predominantly utility industry

sector whose earnings were not prone to global price-volume

fluctuations. With the ongoing process of decontrol, pricing of some

petro-products such as diesel has been linked to international prices.


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By April 2002, the sector is expected to be de-regulated completely.

The prevailing APM (administered price mechanism) will be fully

dismantled.

COMPANY PROFILEINDIAN OIL. INDIA INSPIREDAs a leading public sector enterprise of India, IndianOil hassuccessfully combined its corporate social responsibility agenda withits business offerings, meeting the energy needs of millions of people

everyday across the length and breadth of the country, traversing adiversity of cultures, difficult terrains and harsh climatic conditions.

The Corporation takes pride in its continuous investments ininnovative technologies and solutions for sustainable energy flowand economic growth and in developing techno-economically viableand environment-friendly products & services for the benefit of itsconsumers.

MISSION

"to help enrich the quality of life of the community and preserveecological balance and heritage through a strong environmentconscience."

VISION


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A major diversified, transnational, integrated energy company, with

national leadership and strong environment conscience, playing a

national role in oil security and public sector.

COMPANY FORMATIONIn the year 1959 as Indian oil company Ltd. Indian oil corporation ltd.

was formed in 1964 with the merger of Indian refineries ltd.

DISTINCTION

Indian oil corporation ltd. Is indias largest commercial enterprise,

with a sales turnover of rs. 2,47,479 crore and profits of rs. 6963

crore for the year 2007-08. Indian oil is also the highest ranked Indian

company in the prestigious fortune global 500 listing, at 116th

position in 2008. It is also tha 18th largest petroleum company in the

world. Indian oil and its subsidiaries account for 49% petroleum

products market share, 40.40% refining capacity and 69%

downstream sector pipelines capacity in india.

It also owns 10 out of 19 refineries with a combined refining capacity

of 60.20 million metric tones per annum. These include two refineriesof subsidiary Chennai petroleum corporation ltd.The Corporation's

cross-country network of crude oil and product pipelines, spanning

about 9,300 km and the largest in the country, meets the vital

energy needs of the consumers in an efficient, economical and

environment-friendly manner.

IndianOil is investing Rs. 43,393 crore (US $10.8 billion) during the

period 2007-12 in augmentation of refining and pipeline capacities,

expansion of marketing infrastructure and product qualityupgradation as well as in integration and diversification projects.

FUTURE PLANS

IndianOil is currently forging ahead on a well laid-out road map

through vertical integration upstream into oil exploration &


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production (E&P) and downstream into petrochemicals and

diversification into natural gas marketing, besides globalisation of its

downstream operations.

In petrochemicals, IndianOil is envisaging Rs. 30,000 crore (US$ 7.4

billion) investment by the year 2011-12. Through the worlds largest

single-train Linear Alkyl Benzene (LAB) plant with an annual capacity

of 1,20,000 tonnes set up at its Gujarat Refinery, the Corporation has

already captured a significant market share of LAB in India, besides

exporting the product to Indonesia, Turkey, Thailand, Vietnam,

Norway and Oman. A world-scale Paraxylene/Purified Terephthalic

Acid plant (annual capacities: PX - 3,63,000 tonnes, PTA 5,53,000

tonnes) for polyester intermediates is already in operation at Panipat,

while a Naphtha Cracker with a capacity of 800,000 tonnes of

ethylene per annum, equipped with downstream polymer units is also

coming up at Panipat. A refinery-cum-petrochemicals complex at

Paradip, to be completed by the year 2011-12, will strengthen the

Corporations presence in the sector.

In E&P, IndianOil has bagged eight oil & gas blocks and two Coal Bed

Methane blocks under NELP (New Exploration Licencing Policy)

rounds in India, in consortium with other companies. It has also

acquired participating interest in two onshore blocks in Assam and

Arunachal Pradesh. Overseas ventures of the Corporation include two

blocks in Sirte Basin and Areas 95/96 in Ghadames basin of Libya,

Farsi Exploration Block in Iran, onshore farm-in arrangements in

Gabon, an on land block in Nigeria and two onshore blocks in Yemen.

IndianOil has incorporated Ind-OIL Overseas Ltd. a special purpose

vehicle for acquisition of overseas E&P assets in Port Louis,

Mauritius, in consortium with Oil India Ltd. (OIL).

In natural gas business, IndianOil is targeting sale of 2 million tonnes

in 2008-09. A technology innovation has been initiated to reach LNG

(Liquefied Natural Gas) directly to the doorstep of bulk consumers in

cryogenic containers for industrial as well as captive power


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applications. An LNG import terminal is proposed to be set up at

Ennore near Chennai. City gas distribution projects are in the pipeline

in partnership with other companies.

INDIAN OIL- A NATIONAL BRANDIndianOil has been adjudged India's No. 1 brand by UK-based Brand

Finance, an independent consultancy that deals with valuation of

brands. It was also listed as India's 'Most Trusted Brand' in the

'Gasoline' category in a Readers' Digest - AC Nielsen survey. In

addition, IndianOil topped The Hindu Businessline's "India's Most

Valuable Brands" list.

However, the value of the IndianOil brand is not just limited to its

commercial role as an energy provider but straddles the entire value

chain of gamut of exploration & production, refining, transportation &

marketing, petrochemicals & natural gas and downstream marketing

operations abroad. IndianOil is a national brand owned by over a

billion Indians and that is a priceless value.

OPERATION OF IOCL


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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.

IndianOil controls 10 of Indias 20 refineries. The group refining

capacity is 60.2 million metric tonnes per annum (MMTPA) or 1.2

million barrels per day -the largest share among refining companies

in India. It accounts for 33.8% share of national refining capacity.

The strength of IndianOil springs from its experience of operating thelargest number of refineries in India and adapting to a variety of

refining processes along the way. The basket of technologies, which

are in operation in IndianOil refineries include: Atmospheric/Vacuum

Distillation; Distillate FCC/Resid FCC; Hydrocracking; Catalytic

Reforming, Hydrogen Generation; Delayed Coking; Lube Processing


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Units; Visbreaking; Merox Treatment; Hydro-Desulphirisation of

Kerosene&Gasoil streams; Sulphur recovery; Dewaxing, Wax Hydro

finishing; Coke Calcining, etc.

The Corporation has commissioned several grassroot refineries andmodern process units. Procedures for commissioning and start-up of

individual units and the refinery have been well laid out and

enshrined in various customized operating manuals, which are

continually updated.

IndianOil refineries have an ambitious growth plan with an outlay of

about Rs. 55,000 crore for capacity augmentation, de-bottlenecking,

bottom upgradation and quality upgradation. Major projects underimplementation include a 15 MMTPA grassroots refinery at Paradip,

Orissa, Naphtha Cracker and Polymer Complex at Panipat, Panipat

Refinery expansion from 12 MMTPA to 15 MMTPA, among others.

In addition, petrol quality upgradation projects are under

implementation at Panipat, Mathura, Barauni, Guwahati and Digboi

refineries proposed to be completed by the end of 2009.

On the environment front, all IndianOil refineries fully comply with

the statutory requirements. Several Clean Development Mechanism

projects have also been initiated. To address concerns on safety at

the work place, a number of steps were taken during the year,

resulting in reduction of the frequency of accidents.

Innovative strategies and knowledge-sharing are the tools available

for converting challenges into opportunities for sustained

organisational growth. 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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PIPELINE

In Indias infrastructure, the petroleum pipelines form a crucial part

enabling sustained availability of petroleum products in all parts ofthe country for economic growth. The pipelines transport petroleum

products from refineries to demand areas and crude oil from import

terminals as well as domestic sources to the inland refineries. India

being a vast country, a wide network of pipelines becomes the

paramount requirement of transporting petroleum products to

interiors from refineries and crude oil to the land locked refineries.

It is an established fact that pipelines are preferred as a costeffective, energy efficient, safe and environment friendly method of

transportation for petroleum products and crude oil and are playing a

leading role in meeting the demand for petroleum products in India.

Economic growth and expansion of infrastructure in India offer

opportunities to better utilize the existing pipeline network in addition

to expand by constructing new pipelines.

IndianOil, the pioneer in cross-country petroleum product pipeline in

the Indian sub-continent constructed and commissioned its first

petroleum product pipeline, Guwahati-Siliguri Pipeline in the year

1964. Since then IndianOil has mastered the art and technology of

pipeline engineering. Over the last four decades the pipeline network

of IndianOil has grown to 10,000 km with a capacity of about 62

million metric tonnes per year. Commissioning of new projects worth

about Rs. 2,300 crore including LPG and R-LNG pipelines will reachthe capacity to 75 million metric tonnes per annum with a network of

over 10,000 km.

IndianOils sustained pursuit and implementation of proven safety

and environmental management systems have brought rich results.


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All operating pipeline units have been accredited with ISO 9000 and

ISO 14001 certificates.

Various initiatives in the field of project management, operations and

maintenance including training in countries like Oman, Ethiopia,Kuwait and Sudan have been undertaken.

Today IndianOil is well placed to provide seamless services in the

entire spectrum of petroleum pipelines covering techno-economic

feasibility studies, design and detailed engineering, project

execution, operations and maintenance, consultancy services in

augmentation and modernization, etc.

Supervisory Control and Data Acquisition (SCADA) and application

software expertise are available from project implementation to

commissioning including field services, maintenance and operational

support. Tanker handling, petroleum product and crude oil

accounting, quality control, ocean loss control, pigging procedure

development and analysis of pigging data, selection, testing and

evaluation of drag reducers, operations and maintenance of tank

farm and pump stations are other areas of expertise available withIndianOils Pipelines Division.

FUEL 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 tolarge-scale infrastructural projects in the petroleum downstream

sector anywhere in the country. Our project teams have

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


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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, fertiliser, 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 Divisionis 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 AND DEVELOPMENT

IndianOil's worldclass 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, IndianOil R&D Centre has developed

over thousands of formulations of lubricating oils and greases

responding to the needs of Indian industry and consuming sectorslike Defence, Railways, Public Utilities and Transportation. The Centre

has also developed and introduced many new lubricant products to

the Indian market like multigrade railroad oils.

Focussed research in the areas of lubricants and grease formulations,


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fuels, refining processes, biotechnology, additives, pipeline

transportations, engine evaluation, tribiological and emission studies,

and applied metallurgy has won several awards. The R&D Centre's

activities in refining technology are targeted in the areas of fluid

catalytic cracking (FCC), hydroprocessing, catalysis, residupgradation, 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

equipped to provide technical support to commercial hydrocrackerunits 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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Organizational structure

Top Management

Middle

Management

Junior

Management

All India Employee strength of IOCL: 35000

Orissa State Employee Strength: 250 (HEIRARCHY)

Divisional Office/Area

Office

Regional Office

State Office

Head Office- IOCL


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FINANCIAL

PERFORMANCE

2005 -06 2006 -07 2007- 08 2008- 09

HY

Turnover

(Rs./Core)

183,172 220,779 247,479 160,263

Profit After

Tax

(Rs./Cr)

4,915 7,499 6,963 (6,632)

Earning Per

Share (Rs.)

42. 08 62. 90 58. 39 (55.62)


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Debt-Equity

Ratio

0.90:1 0.78:1 0.86:1 1.75:1


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PRODUCTS DETAILSIndianOil is not only the largest commercial enterprise in the country

it is the flagship corporate of the Indian Nation. Besides having adominant market share, IndianOil is widely recognized as Indias

dominant energy brand and customers perceive IndianOil as a

reliable symbol for high quality products and services.

Benchmarking Quality, Quantity and Service to world-class standards

is a philosophy that IndianOil adheres to so as to ensure that

customers get a truly global experience in India. Our continued

emphasis is on providing fuel management solutions to customers

who can then benefit from our expertise in efficient sourcing and

least cost supplies keeping in mind their usage patterns and

inventory management.

IndianOil is a heritage and iconic brand at one level and a

contemporary, global brand at another level. While quality, reliability

and service remains the core benefits to our customers, our stringent

checks are built into operating systems, at every level ensuring the

trust of over a billion Indians over the last four decades.

The Retail Brand template of IOC consists of XtraCare(Urban),

Swagat(Highway) and Kisan Seva Kendras(Rural). These brands are

widely recognized as pioneering brands in the petroleum retail

segment. IndianOils leadership extends to its energy brands - Indane

LPG, SERVO Lubricants, Autogas LPG, XtraPremium Branded Petrol,

XtraMile Branded Diesel, XtraPower Fleet Card, IndianOil Aviation and

XtraRewards cash customer loyalty programme.

IndianOil is not only the largest commercial enterprise in the country

it is the flagship corporate of the Indian Nation. Besides having a

dominant market share, IndianOil is widely recognized as Indias

dominant energy brand and customers perceive IndianOil as a

reliable symbol for high quality products and services.


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IndianOil is a heritage and iconic brand at one level and a

contemporary, global brand at another level. While quality, reliability

and service remains the core benefits to our customers, our stringent

checks are built into operating systems, at every level ensuring the

trust of over a billion Indians over the last four decades.

AUTO GAS

The fuel is marketed by IndianOil under the brand name AutoGas

IndianOil has setup 173 Auto LPG Dispensing Stations (ALDS)

covering 82 cities across India.AutoGas (LPG) is a clean, high octane, abundant and eco-friendlyfuel. It is obtained from natural gas through fractionation and fromcrude oil through refining. It is a mixture of petroleum gases likepropane and butane. The higher energy content in this fuel results ina 10% reduction of CO2 emission as compared to MS.

INDIANOIL AVIATION SERVICE

IndianOil is India's first ISO-9002 certified oil company conforming tostringent global quality requirements of aviation fuel storage &handling. IndianOil Aviation also caters to the fuel requirements ofthe Indian Defence Services, besides refueling VVIP flights at all theairports and remote heli-pads/heli-bases across the Indiansubcontinent.

IndianOil Aviation Service is a leading aviation fuel solution providerin India and the most-preferred supplier of jet fuel to majorinternational and domestic airlines. Between one sunrise and the

next, IndianOil Aviation Service refuels over 1500 flights from thebustling metros to the remote airports linking the vast Indianlandscape, from the icy heights of Leh (the highest airport in theworld at 10,682 ft) to the distant islands of Andaman & Nicobar.

BITUMEN


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The common binders used in bituminous road constructions are roadtars and Bitumen. Bitumen has gradually replaced road tar for roadconstruction purposes mainly because of its greater availability ascompared to road tars. It is principally obtained as a residual productin petroleum refineries after higher tractions like gas, petrol,kerosene and diesel, etc., are removed generally by distillation fromsuitable crude oil. Indian standard institutions define Bitumen as ablack or dark brown non-crystalline soil or viscous material havingadhesive properties derived from petroleum crude either by naturalor by refinery processes.

IndianOil refineries at Panipat, Mathura, Koyali, Haldia and CPCLproduce grades Bitumen 80/100; Bitumen 60/70; Bitumen 30/40;Bitumen CRMB and Bitumen Emulsion- 'Indmul'. It is available both in

packed and in bulk.

General uses of Bitumen:

For civil engineering works

Constructions of roads, runways and platforms.

Water proofing to prevent water seepage. Mastic floorings for factories and godowns.

Canal lining to prevent eroding.

Dump-proof courses for masonry.

Tank foundation.

Joint filling material for mason

Industries

Electrical cables and junction boxes.

Battery manufacturers as sealing compound.


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Paint industries for manufacturing black paints and anticorrosive paints.

Ceramic industries.

Printing inks. Water proof papers.

Electrical capacitors.

Bituminous felts.

Bituminous grease for lubricating open gears.

HIGH SPEED DIESEL

Petroleum derived diesel (called as petrodiesel) is a mixture ofstraight run product (150 C and 350 C) with varying amount ofselected cracked distillates and is composed of saturatedhydrocarbons (primarily paraffins including n , iso , andcycloparaffins), and aromatic hydrocarbons (including napthalenesand alkylbenzenes).

The Indian Standard governing the properties of diesel fuels is IS

1460:2005 (5th Rev). Important characteristics are ignitioncharacteristics, handling at low temperature, flash point.

BULK INDUSTRIAL FUEL

In the large volume consumer segment, IndianOil's providescomplete Fuel Management Solutions to customers who require fuelsin bulk and have dedicated facilities for storage and handling. Thesecustomers benefit from IndianOil's efficient sourcing and suppliesmatched to their usage patterns and inventory.

IndianOil's tankages are strategically located across the country andare custom-designed to maintain low-cost supplies that can berapidly transported through a sophisticated supply-chainmanagement system.


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IndianOil's marketing operations network of storage, distribution andsupply hubs is backed by on-time logistics and round-the-clock after-sales service. Many institutional customers like the railways, steelplants, thermal power plants, textile mills, power plants, statetransport undertakings, large corporates and fleet & logisticscompanies tie-up for long-term contracts backed by IndianOil'scomprehensive fuel & lubricants consultancy-a formidable expertisethat IndianOil has built over nearly five decades of working with across-section of customers from a wide-range of industrial sectors.

INDANE GAS

Indane is today one of the largest packed-LPG brands in the world.IndianOil pioneered the launch of LPG in India in the 1970s andtransformed the lives of millions of people with the introduction of theclean, efficient and safe cooking fuel. LPG also led to a substantialimprovement in the health of women in rural areas by replacingsmoky and unhealthy chullahs with Indane. It is today a fuelsynonymous with safety, reliability and convenience.

SERVO LUBES AND GREASES

IndianOil's SERVO range of lubricants reigns as the undisputedmarket leader in the Indian lubricants market. Known for its cutting-edge technology and high-quality products, SERVObacked by

IndianOil's pioneering R&D, extensive blending and distributionnetwork, sustained brand enhancement and new generationpackaging is a one-stop shop for complete lubrication solutions in theautomotive, industrial and marine segments.

In the retailing segment, besides IndianOil petrolstations,SERVO range of lubricants is available through a networkofSERVOXpress stations, bazaar outlets and thousands of auto spareparts shops across the country. The SERVO range includes over 500

lubricants and 1200 formulations encompassing literally everylubricant requirement.

MARINE FUELS AND LUBRICANTS

IndianOil caters to all types of bunker fuels and lubricants required byvarious types of vessels operating throughout the world in theshipping industry. The Bunker supplies are made at all major ports of


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India; Mumbai, Kandla, Vasco, Chennai, Tuticorin, Vizag, Cochin, NewMangalore, Kolkata, Paradeep, JNPT, Port Blair and Haldia. Apart fromIndian Navy whose 100% bunker requirement is met by IndianOil, italso supplies bunker fuels to all major shipping and dredgingcompanies of India. Spot requirement of different vessels calling atIndian ports are undertaken through nominations received from localshipping agents and international bunker trader/brokers. WhileIndianOil supplies Furnace Oil (FO), Light Diesel Oil (LDO) and HighFlash High Speed Diesel (HFHSD) meeting the stringent BISspecifications, it also offers the entire range ofSERVO brand ofmarine grade lubricants.

MS/ GASOLINE

In view of the auto fuel policy issued by Govt of India, more & morestringent specifications (equivalent to Euro II, Euro III, Euro IV) arebeing made applicable for the gasolines being marketed in India. Thishas led to reduction of environmentally polluting factors in gasolines.

Gasoline is a complex mixture of relatively volatile hydrocarbons thatvary widely in chemical & physical properties and are derived fromfractional distillation of crude petroleum with a further treatmentmainly in terms of improvement of its octane rating. The hundreds of

individual hydrocarbons in gasoline range from c4 to c11.

For e.g. XTRA PREMIUM

PETRO CHEMICALS

India is amongst the fastest growing petrochemicals markets in theworld. Taking this into consideration and to enhance its downstreamintegration, IndianOil is focusing on increasing its presence in the

domestic petrochemicals sector besides the overseas marketsthrough systematic expansion of customer base and innovativesupply logistics.

Petrochemicals have been identified as a prime driver of futuregrowth by IndianOil. The Corporation is envisaging an investment of


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Rs 30,000 crore in the petrochemicals business in the next few years.These projects will utilise product streams from the existing refineriesof IndianOil, thereby achieving better exploitation of the hydrocarbonvalue chain.

SPECIAL PRODUCTS

Other than the regular petroleum products like light distillates,middle distillates, heavier products like Furnace Oil, Bitumen, etc.,IndianOil refineries also manufacture petroleum products for specificapplications. These specific applications could be feed stock forchemical industry, raw material for specific industries and solid fuels.

The petroleum products, produced for specific applications are called,

'Petrochemicals and Specialties (P&S) Products'.

Every petroleum refinery is not designed to produce P&S productsbut IndianOil's refineries have been planned to make a large portfolioof P&S products.

SUPERIOR KEROSENE OIL

Kerosenes are distillate fractions of crude oil in the boiling range of150-250C. They are treated mainly for reducing aromatic content toincrease their smoke point (height of a smokeless flame) andhydrofining to reduce sulphur content and to improve odour, colour &burning qualities (char value).

Kerosene is used as a domestic fuel for heating / lighting and also for

manufacture of insecticides/herbicides/fungicides to control pest,weeds and fungi. Since kerosene is less volatile than gasoline,increase in its evaporation rate in domestic burners is achieved byincreasing surface area of the oil to be burned and by increasing itstemperature. The two types of burners which achieve this fall intotwo categories namely vaporisers & atomisers.


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The Indian Standard governing the properties of kerosene is IS1459:1974 (2nd Rev).

CRUDE OILCrude oil - as petroleum directly out of the ground is called - is aremarkably varied substance, both in its use and composition. Crudeoil is formed from the preserved remains of prehistoric zooplanktonand algae, which have been settled to the sea (or lake) bottom inlarge quantities under anoxic conditions. It was formed over millionsof years from the remains of tiny aquatic plants and animals thatlived in ancient seas due to compression and heating of ancientorganic materials over geological time. The oldest oil-bearing rocks

date back to more than 600 million years, the youngest being as oldas about 1 million years.

ServiceIOC Services

IndianOil provides a wide range of marketing services andconsultancy in fuel handling, distribution, storage and fuel/lube

technical services. With a formidable bank of technical andengineering talent, IndianOil is fully equipped to handle small tolarge-scale infrastructural projects in the petroleum downstreamsector anywhere in the country. Our project teams haveindependently or jointly as a consortium, have set up depots,terminals, pipelines, aviation fuel stations, filling plants, LPG bottlingplants, amongst others. IndianOil's fuel management system to bulk


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customers offer customized solutions that deliver least cost supplieskeeping in mind usage patterns and inventory levels. A wide networkof lubricant and fuel testing laboratories are available at majorinstallations which is further backed by sector-wise expertise in thecore sectors of power, steel, fertiliser, gas plants, textile mills, etc.Cutting edge systems and processes are designed around one simplebelief-to provide valuable customers with an unbeatable edge in theirbusiness. IndianOil's supply and distribution network is strategicallylocated across the country linked through a customized supply chainsystem backed by front offices located in conceivably every singletown of consequence.

SWOT ANALYSISINTERNAL ENVIRONMENT

Strengthso IOC controls 10 refineries, by virtue of which it has a total share

of around 40% of Indias overall refining capacity. IOC has alsoacquired equity stakes in CPCL and BRPL, and in 2001, theserefineries became subsidiaries of IOC.


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o 58% of IOCs refining capacity is located in the Northern and

Western regions, which are high demand and high growth areas.

o Although its refineries are located the interior of the country,

and not near the major ports IOC has a very strong distributionnetwork by virtue of having a share of 48% in the countrysproduct pipelines. The total capacity of these product pipelines is49.79 MMT.

o IOC also acquired management control of the marketing

company IBP, thereby strengthening its position in these activities.It also has a dominant share in all segments in terms marketinginfrastructure. Its network includes 19830 retail outlets, 8000 LPGdistributors, and 6492 kerosene/LDO dealers.

o By virtue of entering into extensive joint venture agreements,

and of its own initiative as well, the company has a presence invarious other related activities such as petroleum storage,pipelines, lube additives, exploration, petrochemicals, gas, trainingand consultancy, etc.

o The company has already entered overseas markets such as Sri

Lanka, Maldives, and Oman and is presently considering enteringTurkey through a JV. The company is in talks with Caliak of Turkey

to set up a 10 million TPA grassroot refinery with an investment of$2 billion and establish retail business. IOC is also weighing thepossibility of entering Indonesia.


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o IOC has also started exploring the overseas markets for

increasing its scope of operations. Its interests include downstreamactivities in Sri Lanka, Maldives, Oman, and Nepal; interest in thelubes business in Maldives, Dubai, Bangladesh, Sri Lanka, etc;among others.

Sustained growth in turnover from 57.97 MMT to 62.61 MMT

This is ensured by

Cross country retail network comprising of 17574 outlets( 1196 outlets commissioned in 2008)

Varied range of products

Maintained market leadership in branded fuels in 2008

XTRAMILE Diesel : 58% Share

XTRAPREMIUM Petrol : 45.5% Share

Over 800 varieties of lubricants

Creating Unique Selling Points in all customer segments

(consumer and retail) through XtraCare Service Stations

-Diversified range of core sector customers

Railways

Power House

Fertiliser Plants

Defence

Aviation

Coal


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The growth is insulated from the cyclical demand fluctuations due todiversified customer base.

Unique Area of Strength

o Wide Network of Cross Country Pipelineso State of Art Research and Development Center

o Commercialization of in-house technology

o Commissioned Indias first Hydrogen-CNG dispensing

station

o Only company to have presence in high consumption two

of the Refineries North Area

Weakness

o Difference in quality and price at different franchise outlets all

over India in spite of high quality focus by the company.

Opportunity

The IOCL has much opportunity in the present market conditions.This is because the petroleum products are become a need foreveryone and still contains a lot of scope for customization.

The various opportunities are listed below.

o Since the company has the maximum no. Of out lets and also

the maximum no. Of refineries in India, it can very easily go for

extension at any point of time, and can introduce any newproducts, which will get support from its huge market network.

o The company can make the buying process more easy for the

customers, by implying many more schemes in the range ofXTRAPOWER AND XTRAREWARD.


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o The company can think over the issue to build its own pipelines,

so that it will be a independent player and it will also support itsaviation fuel supply.

o Company have a great scope in E&P. It is already involves in

E&P but only in a very limited scale.

o vibrant economy industrial activity

o market that is growing

o emission control normso export market/market overseas

o untapped rural market

ThreatsSince the company is the market leader in the field , so havemaximum threats from the other players and many other issues. Thelists of threats are given below.

oThe foreign players with more advanced technology are the

biggest threat for the company.

oThe crude oil supply is also a big issue in front of the company,

because the company cannot fix its price and so, some time hadoperate in loss also. it is the biggest problem because themaximum part of their crude is been imported.

o In future the market will welcome more private players, which

will eat up its market share.customer preference/usage

o bio-fuel vehicles

o battery run bikes

crude and overheads is a major impact on the price .o Black marketing and making threat in the people


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o All the Pipelines owned by IOCL, to be opened for other

competitors (as IOCL is PSU)

TITLED INTRODUCTION

MARKETING AND PROMOTION OF XTRAREWARDS LOYALTYPROGRAM.

Introduction to the project:In this competition world it becomes very necessary to retain loyalcustomers. The commercial benefits of loyal customers are wellknown by the brand managers. The cost of acquiring a new customeris always more than retaining an old customer.

Loyal customers are also important because they provide theconsistency of volume critical for stocking and managing just in timeinventory to maintain the consistency of customer demand during

crisis which is required to run any retail business. All of these arecompelling reasons that retailers are on a quest for customer loyaltyand are increasingly looking at implementing loyalty programs orloyalty cards of some form.

In this project, we have been assigned IOC retail outlets which areparticipating in the XtraRrewards Loyalty program. Our task is topromote and sell the XtraRewards Loyalty card to the customers andat the same time garner customer opinions and suggestions aboutthe loyalty program. Tapping local alliances is another aspect of this

project.

At the same time, we have to check whether the retail outlets arecarrying out the implementation of the loyalty program in the rightway.

Objective of the Project:


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then be redeemed for products which may or may not be directlyrelated to the business.

Loyalty cards are the most common form of loyalty programs foundthroughout the world today. Some of the first loyalty programs were

instituted by airlines in the 1970s in the form of frequent flyer miles.In these loyalty programs, one accrues points by flying on the airlineand then 'cash in' the points in exchange for tickets, upgrades, oreven third-party benefits. In the past decade, many non-airlinebusinesses have combined their own loyalty programs with those ofthe airlines, offering frequent flyer miles in exchange for everythingfrom telephone usage to purchasing gasoline.

Loyalty programs at Indian Oil

IndianOil's loyalty programs are designed exclusively to benefitcustomers who have been patronizing the brand for over fourdecades.

XTRAREWARDS Loyalty Program

IndianOil XTRAREWARDS is India's first on-line rewards program thatseeks to inculcate the habit of redeeming points. The loyalty programrewards customers paying by cash, credit and debit cards.

Each transaction is confirmed on-line through a charge slip andcustomers can earn points on fuel/lube purchases at participatingIndianOil Retail Outlets. Additional points can also be earned outside


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the IndianOil network, covering prominent FMCG, Food, Automobile,Travel, Entertainment, Apparel and Hospitality sectors.

Apart from redeeming the accumulated points instantly on fuel /SERVO Lubes at participating Retail Outlets, the card holder can also

redeem the points to get some exciting gift items from a catalogue.

The redemption on gifts can be registered either from theparticipating Retail Outlets or from the comfortable confines of one'shome through the 24x7 IVRS Help Line (022-2880 9030).

Point system:

When customer spends Rs. 75 then he earns 1 point. The balanceamount gets carry forward in next cash transaction. As a member,

the customer can earn Xtrareward points (XRPs) on purchase atparticipating Indian oil retail outlets and enjoy specific benefits atfranchisees, affiliates and outlets of alliance partners with whomIndian oil may have alliance from time to time. The XRPs earned caninstantly be redeemed for fuel and servo lubes at participating Indianoil retail outlets. Customer can also redeem the points against itemsgiven in the rewards catalogue.

Apart from rewarding cash customers, the program also rewardscustomers who pay by credit or debit cards. However, the customer

has to produce his XTRAREWARD card to earn XRPs.

Point system in Xtrarewards:

Sr.No.

Product Description XRPsRequired

1. Rs 100 worth of fuel 334

2. Rs 100 worth of petrol + oil mix 3343. Rs 100 worth of Xtra Premium 334

4. Rs 100 worth of Xtra Premium + oil mix 334

5. Rs 100 worth of Xtra mile 334

6. Rs 100 worth of diesel 334


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7. Rs 100 worth of auto LPG 334

8. Rs 100 worth of CNG 334

9. 500 ml servo 2T supreme 234

10. 40 ml servo 2T supreme pouch 20

11. 60 ml servo 2T supreme pouch 29

12. 1 litre servo super multi grade 20w-40 460

13. 500 ml servo kool plus 400

For enhanced security, the XtraRewards card transactions are

authorized through unique Personal Identification Number (PIN).Moreover, the card can help track each vehicle's movement acrossremote corners of the country leading to an improvement in vehicleutilization and route compliance.


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ACHIEVEMENTSXTRAREWARDS CARDS

Weeks Weeklytargets

Weeklyachievements

% ofachievements

1 25x60=1500

27x60=1620 108%

2 25x60=1500

30x60=2100 120%

3 25x60=1500

30x60=1800 120%

4 125x60=7500

125x60=7500 100%

5 125x60=75 131x60=7860 105%


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006 125x60=75

00127x60=7620 102%

7 125x60=7500 130x60=7800 104%

8 125x60=7500

146x60=8760 117%

9 125x60=7500

140x60=8400 112%

10 125x60=7500

109x60=6540 88%

11 125x60=7500

78x60=4680 63%

12 125x60=7500

83x60=4980 67%


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ALLIANCE PARTNERS

Month monthlytarget

monthlyachievement

% ofachievement

1 Two Nil Nil2 Two 1 50%3 Two 3 150%

DSA RECRUITMENT

Weeks Weeklytargets

Weeklyachievements

% ofachievements

6 2 1 50%7 2 2 100%8 2 2 100%9 2 2 100%

10 2 3 150%11 2 2 100%12 2 2 100%


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FINDINGS :

o XtraRewards scheme is not available at all the retail outlets of

Indian oil. The scheme is available in only retail outlets in

Bhubaneswar.

o Most of the people are not aware regarding the XtraRewards

scheme.

o Pump-attendants are not interested in selling the cards.

o Cards which were sold by dealers earlier were not registered

with IOCL as a result of which cards started getting blocked.

o Booklets are in English. This could not be understood by all the

people.

o There are no pamphlets available at pumps, which could give a

brief idea about the loyalty program.

o There is no dedicated person for collecting the forms. So, there

is a large backlog of forms.

o The card swiping machines are not properly maintained at some

places leading to many customer complaints.


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CONCLUSIONXtraRewards is a step of IOC towards building loyalty among the

existing customers. Loyalty program works only when the customer is

emotionally attached to the brand.

Positioning of the loyalty program is very critical so that these

benefits do not appear to be a just discount under the garb of loyalty

this greatly affects the customer retailer relationship and greatlyreducing the program to a pure commercial transaction where the

customer constantly looks for deals.

We need to enroll the right customers. We can recognize the highest

value customers to recognize and reward their value to our

organization, we can cultivate high potential customers who currently

split their purchases between us and our competitors or reach out to

those most at risk of churning. Knowing which customer groups are

most important to us allows crafting recognition and rewardingstrategy that piques their interest.


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RECOMMENDATIONSIdeas to increase & retain customer base

o Need more benefits in fuel rather than alliance partners in order

to attract other brands loyal customers.o Target new vehicle owner by tie up with the car companies and

give XTRAREWARDS card with every new vehicle.o Try to know actual reasons for not using the card for longer

period of time.

At retail outlets

o Digital display on retail outlets.(i) To communicate with the customers about IOC program &

brands and(ii) for advertisement of alliance partners & earning revenue outof it.

o Motivate pump attendants by giving price to attendant of the

month which will be the highest card seller of that month.o XTRAREWARDS Banners should be put at proper location in the

pumpo XTRAREWARDS program should be started at all other locations

as soon as possible.

For Welcome kit

o Application Form as well as information booklet should be in

Hindi and oriya.


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o Sufficient Pamphlets should be distributed to all pumps &renewal of pamphlets should be done as & when new offersfrom alliance partners come.


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PROMOTIONAL TOOLS USED IN SELLING THE XTRAREWARDS CARD

shakeel iocl final report (autosaved)123

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