33

“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

33

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

33

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.