INDIAN OIL CORPORATION LIMITED

BM-622 INDUSTRIAL MANAGEMENT PRESENTATION

MALAVIYA NATIONAL INSTITUTE OF TECHNOLOGY, JAIPUR

INTRODUCTION

IOCL is country’s flagship national oil company, with business interests straddling the entire hydrocarbon value chain - exploration & production of crude oil & gas, refining, pipeline transportation and marketing of petroleum products, natural gas and petrochemicals.

COMPANY OVERVIEW

INDIAN REFINERIES Ltd

1958

INDIAN OIL COMPANY Ltd

1959

1964

ASSAM OIL COMPANY -1981

IOBL-2006

IBP Co. Ltd-2007

BRPL-2009

COMPANIES MERGED

CORPORATE JOURNEY

ESTABLISHED FIRST PUBLIC SECTOR

REFINERY AT GUWAHATI -

1962.

BECOMES FIRST

INDIAN OIL COMPANY TO ESTABLISH

R&D CENTER -1972.

AWARDED ‘NAVRATNA’ STATUS BY

Govt. OF INDIA -1997.

BECOMES FIRST

INDIAN COMPANY TO CROSS THE INR 1000 Bn TURNOVER

MARK -2000.

FIRST INDIAN

PETROLIUM COMPANY TO

START OVERSEAS

RETAIL BUSINESS -

2002.

BECAME TOP NATIONAL

OIL COMPANY IN

ASIA PACIFIC-

2005.

AWARDED ‘MAHARATNA’ STATUS BY

Govt. OF INDIA- 2010.

VISION AND MISSION

VISION

To be the preferred business entity contributing to national energy security and delivering high quality products and services with care for environment.

MISSION

To cater the customer needs in dynamic hydrocarbon market through continuous up-gradation of skills, capabilities and technologies to attain global benchmarks.

OBJECTIVES

To serve the national interests in oil and related sectors in accordance and consistent with Government

policies.

To ensure maintenance of continuous and smooth supply of petroleum products by way of crude oil

refining, transportation and marketing activities and to provide appropriate assistance to

consumers to conserve and use petroleum products efficiently.

To enhance the country’s self-sufficiency in crude oil refining and build expertise in laying of crude oil and

petroleum product pipelines.

To further enhance marketing infrastructure and reseller network for providing assured service to

customers throughout the country.

To create a strong research & development base in refinery processes, product formulations, pipeline transportation and alternative fuels with a view to minimising/eliminating imports and to have next

generation products.

To optimise utilisation of refining capacity and maximise distillate yield and gross refining margin.

To maximise utilisation of the existing facilities for improving efficiency and increasing productivity.

To earn adequate return on the capital employed and maintain a reasonable annual dividend on

equity capital.

To ensure maximum economy in expenditure.

To manage and operate all facilities in an efficient manner so as to generate adequate internal

resources to meet revenue cost and requirements for project investment, without budgetary support.

IOCL- QUICK FACTS• GOVERNMENT ORGANIZATIONS i.e.

RAILWAYS, STATE ROAD TRANSPORT..

• ‘MAHARATNA’ STATUS..• GOVERNMENT NOMINATED

DIRECTORS ON IOC BOARD..

• 10 REFINERS WITH 65.7 MMTPA CAPACITY..

• 31% DOMESTIC REFINING CAPACITY..

• 11000km CRUDE OIL PRODUCTS AND NATURAL GAS PIPELINE WITH A TOTAL CAPACITY OF 77.3 MMTPA..

• NEW FOCUS ON ALTERNATE & RENEWABLE ENERGY..

• 13 DOMESTIC & 10 OVERSEAS BLOCKS..

• 2ND LARGEST DOMESTIC PLAYER IN PETROCHEMICALS..

• MAJOR SUPPLIER TO CORE SECTOR..

• STRONG SUPPORT FROM THE GOVERNMENT OF INDIA..

• LARGEST REFINER IN INDIA..

• PAN INDIA PIPELINE INFRASTRUCTURE..

• STRONG FOCUS ON INNOVATION THROUGH ALTERNATE ENERGY SOURCES..

• INTEGRATED OPERATIONS ACROSS THE ENTIRE ENERGY VALUE CHAIN..

GROUP COMPANIES

NAME BUSINESS

Chennai Petroleum Corporation Limited

Refining of petroleum products

Indian Oil (Mauritius) Ltd. Terminalling, Retailing & Aviation refueling

Lanka IOC PLC. Retailing, Terminalling & Bunkering ofPetroleum Products

IOC Middle East FZE Lube blending & Marketing of Lubricants

IndianOil- CREDA Biofuels Limited

Plantation of Jatropha and extraction ofOil for Bio-diesel

IOC Sweden AB Investment company for E&P Project in Venezuela

IOCL (USA) Inc. Participation in Shale Gas Asset Project

Major divisions of IOCL

Corporate Office New Delhi

R&D

Division

Pipelines Division

Noida

Marketing Division

Mumbai

Refineries Division

New Delhi

Assam Oil Division

ORGANIZATIONAL STRUCTURE

CHAIRMAN (R S BUTOLA)

7 Whole-time Functional Directors

DIRECTOR(RESEARCH &DEVELOPMENT)

DIRECTOR(HUMAN RESOURCE)

DIRECTOR(PLANNING & BUSINESS

DEVELOPMENT)

DIRECTOR(FINANCE)

DIRECTOE(REFINNERIES)

DIRECTOR(MARKETING)

DIRECTOR(PIPELINES)

2 Part-time Non-executive Nominee Directors from MOP & NG

ADDDITIONAL SECRETARY & FINANCIAL

ADVISER(MINISTRY OF

PETROLEUM &NATURAL GAS)

ADDDITIONAL SECRETARY (MINISTRY

OF PETROLEUM &NATURAL GAS)

6 Independent Directors

CORPORATE STRUCTURE

Indian oil is not only the largest commercial enterprise in the country ,it is the flagship corporate of the Indian Nation.

The main products of Indian Oil are petrol, diesel, LPG, auto LPG, aviation turbine fuel, lubricants and petrochemicals: naphtha, bitumen, kerosene etc.

IndianOil operates the largest and the widest network of fuel stations in the country, numbering about 20,575 (16,350 regular ROs & 4,225 Kisan Seva Kendra).

It has also started Auto LPG Dispensing Stations (ALDS). It supplies Indane cooking gas to over 66.8 million households through a network of 5,934 Indane distributors.

PRODUCTS

BRANDED PRODUCTS

DIVERSIFIED PRODUCTS AND BRANDS

Indane Gas - Domestic and Industrial Gas

AutoGas - Automotive Natural Gas

Xtra Premium - Automotive Premium Petrol

Xtra Mile - Automotive Premium Diesel

Servo - Lubricants and Greases

Propel - Petrochemicals

The main services offered by IndianOil are Refining, Marketing, Pipelines, R&D and Training. IndianOil's Research and Development Center (R&D) at Faridabad supports, develops and provides the necessary technology solutions to the operating divisions of the corporation and its customers within the country and abroad.

DIVERSIFIED PRODUCTS AND BRANDS

BRANDED SERVICES

Operates 10 refineries with a total production capacity of 65.7 MMT

Operates a 10,899 km long product and

crude pipeline network as well as maintains a

marketing network with ~ 37,000 touch points

Investing in wider petrochemical product Slate.

Gas distribution – CGD, LNG at Doorstep etc

E&P through equity interest in blocks across the world

Power generation through renewable sources of energy

BUSINESS DESCRIPTION

MAJOR REFINERIES IN INDIA

http://ppac.org.in/writereaddata/India%20Refinery%20Map.pdf

MARKETING

AND

FINANCE

AD CAMPAIGNS

Source: www.iocl.com

Others 322

LPG Bottling Distributorshi

ps 6,467

SKO / LDO Dealerships

3,938

Bulk Consumer

Pumps 6,361

OVER 39,400 CONSUMER TOUCH POINTS

Retail Outlets 22,372

Source: Petroleum Planning and Analysis Cell (PPAC).

RETAIL

OUTL

ETS

CONSU

MER P

UM

PS

LPG D

ISTR

IBUTI

ON

AVIATI

ON F

UEL

0%

20%

40%

60%

80%

100%

46

86

5164

54

14

4936

OTHERSIOC

LEADING MARKET SHARE

Source: Petroleum Planning and Analysis Cell (PPAC).

IOC

RELIAN

CE

HPC

L

BPCL

ESSAR O

IL

ONGC

0%5%

10%15%20%25%30%35% 31%

28%

11%14%

9% 7%

REFINING MARKET SHARE

REFINING MARKET SHARE

Source: www.petroleum.nic.in.

Government Of India’s Ownership

& Support

Capital Raising: Government Approval

Board Control: Members Nominated to IOC Board

Pricing: Select petroleum products based on Govt. initiativeFunctional Directors: Appointment by President of India

Equity Control: 68.92%*

* Remainder by ONGC (13.77%), Oil India (5%) and rest others.

FINANCIAL SUMMARYMarch 2012 (Rs.) MARCH 2013 (Rs.)

EQUITY & LIABILITIES

Shareholders' Funds 57,876.70 61,124.31

Non-current liabilities

32,157.12 38,737.29

Current liabilities 119,825.93 124,133.67

TOTAL 209,859.75 223,995.27

ASSETS

Non-current assets 88,858.29 95,696.70

Current assets 121,001.46 128,298.57

TOTAL 209,859.75 223,995.27

Source: 20_Balance_Sheet_2013.pdf

(Rs. in crores)

FY 09 FY10 FY 11 FY 12 FY 13$0

$10 $20 $30 $40 $50 $60 $70 $80

$48 $46 $56

$69 $76

TURNOVER

Financial Year

Tu

rnove

r i

n U

S $

bil

-li

on

s

Source: iocl investor report (www.iocl.com)

Exchange rate 1US $ = 54.29 INR

FY09 FY10 FY11 FY12 FY13$0.00 $2.00 $4.00 $6.00 $8.00

$10.00 $12.00

$8.10 $9.30

$10.20 $10.70 $11.30

NET WORTH ( Assets - Liabil-ities)

Financial YearNet

Wort

h (

in U

S$

Bil

-li

on

s)

Source: iocl investor report (www.iocl.com)

Exchange rate 1US $ = 54.29 INR

FY09 FY10 FY11 FY12 FY13$0.00

$0.50

$1.00

$1.50

$2.00

$0.50

$1.90

$1.40

$0.70 $0.90

NET PROFIT

Financial Year

Net

pro

fit

( in

US

$ B

il-

lion

s)

Source: iocl investor report (www.iocl.com)

Exchange rate 1US $ = 54.29 INR

HUMAN RESOURCE

EMPLOYEE PROFILE:-• Employee strength as on March 31, 2012 was

34,363 including 14,210 officers. • 2,624 women employees, constituting 7.64% of

the total manpower.• Indian Oil's unique work culture is based on trust,

openness and a commitment to creativity and consultation with every employee making a difference.

• Career Growth Opportunities

Officers at the junior-most level of the management hierarchy. First division professional degree holders and post-graduates from relevant disciplines are recruited .

Job rotation and inter-location transfers throughout the country facilitate planned development of careers and broaden outlook.

• Career growth opportunities are based on the individual's performance and contribution to the common goal of sustained growth.

• Indian Oil's top executives have grown from within -- a testimony to the unlimited opportunities for growth available to the meritorious.

Welfare of Employees

Apart from attractive scales and perks, IndianOil provides its employees many facilities and welfare measures which are continuously upgraded.

•Employees are provided with the best medical facilities

• Apart from fully equipped hospitals at refinery townships, the Corporation also has nominated hospitals at various locations to meet employee needs.

• Holiday homes at select locations throughout the country help employees and their families unwind. 

RECRUITMENT

Open• Adv. In leading

national dailies• Apply Online• Selected candidates

called for written, GD, interview.

Campus• Visits IIT’s,

NIT’s etc.• IIM’s• ICAI

Research & Development

• Focus on Products & Technology

INDMAX, Marine Oil, Railroad Oil, Needle Coke etc.• Active Patents Portfolio

Total Patents: 254• Collaborations

CORPORATE SOCIAL

RESPONSOBILITY

• CSR and working with the communities has been the cornerstone of success for Indian Oil right from inception.

• The major thrust areas of the Corporation’s CSR initiatives are ‘Health & Medical Care’ and ‘Expansion of Education’.

• A Committee of the Indian Oil Board specially constituted for CSR, guides the Corporation in undertaking CSR activities in a focused and structured manner and reviews the CSR policy from time to time.

Source: iocl\14A_Report_on_CSR_Activities_2013.pdf

ANNUAL CSR BUDGET

19990.5% of previous

year’s net profit

2009 onwards2% of previous

year’s net profit

LIST OF CSR ACTIVITIES

INDIAN OIL SACHAL

SWASTHYA SEVA (MOBILE

MEDICAL UNITS)

ASSAM OIL DIVISION

HOSPITAL, DIGBOI

SWARNA JAYANTI SAMUDAIK HOSPITAL, MATHURA

ASSAM OIL SCHOOL OF

NURSING, DIGBOI

INDIANOIL (AOD) INDUSTRIAL

TRAINING CENTRE, DIGBOI

LIST OF CSR ACTIVITIES (cont…)

INDIANOIL EDUCATION

SCHOLARSHIP SCHEME

INDIANOIL SPORTS

SCHOLARSHIP SCHEME

LPG SCHEME

INDIANOIL FOUNDATION

NATIONAL CAUSES / NATURAL

CALAMITIES

SWOT Analysis• India's largest

commercial enterprise with a strong brand name.

• Has around 50% petroleum products

• Operates 10 refineries in India

• Huge distribution network through retailing

• Accounts for a 49% share in the petroleum products market, 31% share in refining capacity and 67% downstream sector pipelines capacity in India

• Has over 35,000 employees

• Legal issues• Employee

management• Volatility in the

crude market & subsidy burden

STRENGTH

WEAKNESS

SWOT Analysis (cont…)

• Increasing fuel/oil prices

• Increasing natural gas market

• More oil well discoveries

• Expand export market

• Government regulations

• High competition

OPPORTUNITIES

THREATS

CONCLUSION• Largest Refiner in the Country • Leading Market Share Across the Portfolio • Integrated Operations Across the entire Energy Value

Chain • Strong Focus on Innovation Through R&D and

Alternate Energy Sources • Driven by a Management Team That has Delivered

Results • With Strong Support from the Government of India

REFERENCES

1. http://www.iocl.com2. www.petroleum.nic.in3. http://ppac.org.in4. http://www.thehindubusinessline.in

THANK YOU