Project Report

On

“How to enhance sales of commercial Liquefied Petroleum Gas”

Project report submitted to the

INSTITIUTE OF TECHNOLOGY & MANAGEMENT

“In partial fulfillment of the requirement for the award of the

Certificate of

“MASTER OF BUSINESS ADMINISTRATION”

Submitted By:-

Anjali Kain

MBA (3rd sem)

Session: - 2009-2011

ACKNOWLEDGEMENT

My indebtedness and gratitude to the many individuals who have helped to shape

this thesis in its present form cannot be adequately conveyed in just a few

sentences. Yet I must record my immense gratitude to the brains and hands that

worked overtime to support my efforts in making a near comprehensive study of a

topic as broad as “How to enhance sales of commercial Liquefied Petroleum

Gas” , in Indian oil corporation Ltd., Delhi.

I am highly obliged to Mr. Sachin Agarwal, & Mr. Pradeep Kumar M K, IOCL,

Delhi for giving me this opportunity to work on this challenging project and

lending me their learning over the months and continuous guidance in their

capacity as my Project Guide.

Next in line I thank all the professors of ITM for apprising me of their specific

requirements and the nuances of the system and helping me immensely with their

phenomenal and participative responses during the interviews I had with them.

The thank list would be far from incomplete without the mention of all such

Supervisors, Associates and all the employees of IOCL, Delhi.

Last but not the least I am thankful to Almighty God, my parents, my uncle, my

friends for their immense support and cooperation throughout.

In fact the list can never be completed….

Anjali Kain

Summary:

Liquefied petroleum gas refers to the gaseous liquids that are recovered

from the processing of natural gas and the refining of crude oil.  This LPG

consists of two commercial products – propane and butane – both of which

are ----- at ambient temperature and pressure and yet are liquid when stored

and transported under pressure or in a refrigerated state.”

India is a huge LPG retail market. The number of registered customers

reached 100 million in April 2008. Annual sales are close to 12 million tons

and growing at 5-6 percent per year. However, this market is being

supported by Government price subsidies on household cylinders, subsidies

which have caused market distortions and resulted in the illegal diversion of

the subsidized LPG for home use to the non-subsidized commercial sector.

The Government maintains a subsidized LPG price (below free market levels)

for households in India because it is politically popular to do so and politically

dangerous to take it away.

Two years ago, there had been widespread reports of illegal LPG cylinder

diversions from the subsidized household sector to the unsubsidized

commercial sector. The Government instituted a clampdown. They sent

inspectors around the country to monitor the monthly sales patterns of LPG

distributors and dealers and see if there were any unusual distortions that

might have been the result of these illegal diversions. This action did seem

to have some effect at the time.

Now, the problem has resurfaced again, this time as a result of the

introduction of piped gas into Indian cities. In Mumbai and Delhi, consumers

who are now receiving piped gas have been returning their unwanted

cylinders to LPG distributors. But the LPG distributors in many cases, it would

appear, have been continuing to take their allocated subsidized LPG which

they have then been reselling to the higher-paying commercial sector. The

differential between commercial and household LPG prices is so large that

their profits are sizeable. As the Government has been complaining, these

profits are all coming out of their subsidy program.

Two measures are under consideration:

Rolling back the scheme for distribution of subsidized LPG in every area

where piped gas connections are provided.

And drawing up a scheme for focused and direct subsidization for LPG to

consumers living in rural and backward areas which are not covered by piped

gas networks.

The measures would be politically popular. It is argued that “subsidized LPG

would be more likely to reach the targeted people, instead of unjustified

supply to affluent sections of society in urban areas who are cashing in on

the double subsidy benefit.”

However, the first step is not without its problems. LPG distributors in urban

areas lose their business as the gas grids expand. 

Indian officials believe they have to look after the local LPG distributors in

some way "so to not face possible resistance or even sabotage of the piped

gas networks."

And because of all these reasons the sale of commercial LPG comes down

and now steps should be taken by government on this issue.

TABLE OF CONTENT:

Introduction

Company’s history

Company’s profile

Vision of IOCL

Obligation & objectives of IOCL

Major projects of IOCL

Awards & accreditations

Services to nation by IOCL

Introduction to LPG

Specifications of LPG

Commercial LPG & its uses

Research methodology

Findings

Limitations

Conclusions & recommendations

Copy of questionnaire

Bibliography

Indian oil corporation Company’s

history-

Company Perspectives: 

It strive be a major diversified, transnational, integrated energy company,

with national leadership and a strong environmental conscience, playing a

national role in oil security and public distribution. 

Key Dates: 

1948: India’s government passes the Industrial Policy Resolution, which

states that its oil industry should be state-owned and operated. 

1958: The government forms its own refinery company, Indian Refineries

Ltd. 

1959: Indian Oil Company is founded as a statutory body to supply oil

products to Indian state enterprise. 

1964: Indian Refineries and Indian Oil Company merge to form the Indian Oil

Corporation. 

1976: The Burma-Shell and the Caltex refineries are nationalized. 

1981: Half of India's 12 refineries are operated by Indian Oil. 

1998: The Company’s seventh refinery is commissioned at Panipat. 

2002: The Indian petroleum industry is deregulated. 

Company History:

The Indian Oil Corporation Ltd. operates as the largest company in India in

terms of turnover and is the only Indian company to rank in the Fortune

"Global 500" listing. The oil concern is administratively controlled by India's

Ministry of Petroleum and Natural Gas, a government entity that owns just

over 90 percent of the firm. Since 1959, this refining, marketing, and

international trading company served the Indian state with the important

task of reducing India's dependence on foreign oil and thus conserving

valuable foreign exchange. That changed in April 2002, however, when the

Indian government deregulated its petroleum industry and ended Indian Oil's

monopoly on crude oil imports. The firm owns and operates seven of the 17

refineries in India, controlling nearly 40 percent of the country's refining

capacity.

Origins:

Indian Oil owes its origins to the Indian government's conflicts with foreign-

owned oil companies in the period immediately following India's

independence in 1947. The leaders of the newly independent state found

that much of the country's oil industry was effectively in the hands of a

private monopoly led by a combination of British-owned oil companies

Burma and Shell and U.S. companies Standard-Vacuum and Caltex.

An indigenous Indian industry barely existed. During the 1930s, a small

number of Indian oil traders had managed to trade outside the international

cartel. They imported motor spirit, diesel, and kerosene, mainly from the

Soviet Union, at less than world market prices. Supplies were irregular, and

they lacked marketing networks that could effectively compete with the

multinationals.

Burma-Shell entered into price wars against these independents, causing

protests in the national press, which demanded government-set minimum

and maximum prices for kerosene--a basic cooking and lighting requirement

for India's people--and motor spirit. No action was taken, but some of the

independents managed to survive until World War II, when they were taken

over by the colonial government for wartime purposes.

During the war, the supply of petroleum products in India was regulated by a

committee in London. Within India, a committee under the chairmanship of

the general manager of Burma-Shell and composed of oil company

representatives pooled the supply and worked out a set price. Prices were

regulated by the government, and the government coordinated the supply of

oil in accordance with defense policy.

The Indian Oil Industry Evolves: Late 1940s-60s

Wartime rationing lasted until 1950, and a shortage of oil products continued

until well after independence. The government's 1948 Industrial Policy

Resolution declared the oil industry to be an area of the economy that should

be reserved for state ownership and control, stipulating that all new units

should be government-owned unless specifically authorized. India remained

effectively tied to a colonial supply system, however. Oil could only be

afforded if imported from a country in the sterling area rather than from

countries where it had to be paid for in dollars. In 1949, India asked the oil

companies of Britain and the United States to offer advice on a refinery

project to make the country more self-sufficient in oil. The joint technical

committee advised against the project and said it could only be run at a

considerable loss.

The oil companies were prepared to consider building two refineries, but only

if these refineries were allowed to sell products at a price ten percent above

world parity price. The government refused, but within two years an event in

the Persian Gulf caused the companies to change their minds and build the

refineries. The companies had lost their huge refinery at Abadan in Iran to

Prime Minister Mussadegh's nationalization decree and were unable to

supply India's petroleum needs from a sterling-area country. With the severe

foreign exchange problems created, the foreign companies feared new

Iranian competition within India. Even more important, the government

began to discuss setting up a refinery by itself.

Between 1954 and 1957, two refineries were built by Burma-Shell and

Standard-Vacuum at Bombay, and another was built at Vizagapatam by

Caltex. During the same period the companies found themselves in

increasing conflict with the government.

The government came into disagreement with Burma Oil over the

Nahorkatiya oil field shortly after its discovery in 1953. It refused Burma the

right to refine or market this oil and insisted on joint ownership in crude

production. Burma then temporarily suspended all exploration activities in

India.

Shortly afterward, the government accused the companies of charging

excessive prices for importing oil. The companies also refused to refine

Soviet oil that the government had secured on very favorable terms. The

government was impatient with the companies' reluctance to expand

refining capacity or train sufficient Indian personnel. In 1958, the

government formed its own refinery company, Indian Refineries Ltd. With

Soviet and Romanian assistance, the company was able to build its own

refineries at Noonmati, Barauni, and Koyali. Foreign companies were told

that they would not be allowed to build any new refineries unless they

agreed to a majority shareholding by the Indian government.

In 1959, the Indian Oil Company was founded as a statutory body. At first, its

objective was to supply oil products to Indian state enterprise. Then it was

made responsible for the sale of the products of state refineries. After a 1961

price war with the foreign companies, it emerged as the nation's major

marketing body for the export and import of oil and gas.

Growing Soviet imports led the foreign companies to respond with a price

war in August 1961. At this time, Indian Oil had no retail outlets and could

sell only to bulk consumers. The oil companies undercut Indian Oil's prices

and left it with storage problems. Indian Oil then offered even lower prices.

The foreign companies were the ultimate losers because the government

was persuaded that a policy of allowing Indian Oil dominance in the market

was correct. This policy allowed Indian Oil the market share of the output of

all refineries that were partly or wholly owned by the government. Foreign oil

companies would only be allowed such market share as equaled their share

of refinery capacity.

Indian Oil Corporation: 1964 to the 1990s

In September 1964, Indian Refineries Ltd. and the Indian Oil Company were

merged to form the Indian Oil Corporation. The government announced that

all future refinery partnerships would be required to sell their products

through Indian Oil.

It was widely expected that Indian Oil and India's Oil and Natural Gas

Commission (ONGC) would eventually be merged into a single state

monopoly company. Both companies grew vastly in size and sales volume

but, despite close links, they remained separate. ONGC retained control of

most of the country's exploration and production capacity. Indian Oil

remained responsible for refining and marketing.

During this same decade, India found that rapid industrialization meant a

large fuel bill, which was a steady drain on foreign exchange. To meet the

crisis, the government prohibited imported petroleum and petroleum product

imports by private companies. In effect, Indian Oil was given a monopoly on

oil imports.

A policy of state control was reinforced by India's closer economic and

political links with the Soviet Union and its isolation from the mainstream of

western multinational capitalism. Although India identified its international

political stance as non-aligned, the government became increasingly friendly

with the Soviet Bloc, because the United States and China were seen as too

closely linked to India's major rival, Pakistan. India and the USSR entered into

a number of trade deals. One of the most important of these trade pacts

allowed Indian Oil to import oil from the USSR and Romania at prices lower

than those prevailing in world markets and to pay in local currency, rather

than dollars or other convertible currencies.

For a time, no more foreign refineries were allowed. By the mid-1960s,

government policy was modified to allow expansions of foreign-owned

refinery capacity. The Indian Oil Corporation worked out barter agreements

with major oil companies in order to facilitate distribution of refinery

products.

In the 1970s, the Oil and Natural Gas Commission of India, with the help of

Soviet and other foreign companies, made several important new finds off

the west coast of India, but this increased domestic supply was unable to

keep up with demand. When international prices rose steeply after the 1973

Arab oil boycott, India's foreign exchange problems mounted. Indian Oil's

role as the country's monopoly buyer gave the company an increasingly

important role in the economy. While the Soviet Union continued to be an

important supplier, Indian Oil also bought Saudi, Iraqi, Kuwaiti, and United

Arab Emirate oil. India became the largest single purchaser of crude on the

Dubai spot market.

The government decided to nationalize the country's remaining refineries.

The Burma-Shell refinery at Bombay and the Caltex refinery at Vizagapatam

were taken over in 1976. The Burma-Shell refinery became the main asset of

a new state company; Bharat Petroleum Ltd. Caltex Oil Refining (India) Ltd.

was amalgamated with another state company, Hindustan Petroleum

Corporation Ltd., in March 1978. Hindustan had become fully Indian-owned

on October 1, 1976, when Esso's 26 percent share was bought out. On

October 14, 1981, Burma Oil's remaining interests in the Assam Oil Company

were nationalized, and Indian Oil took over its refining and marketing

activities. Half of India's 12 refineries belonged to Indian Oil. The other half

belonged to other state-owned companies.

By the end of the 1980s, India's oil consumption continued to grow at eight

percent per year, and Indian Oil expanded its capacity to about 150 million

barrels of crude per annum. In 1989, Indian Oil announced plans to build a

new refinery at Pradip and modernize the Digboi refinery, India's oldest.

However, the government's Public Investment Board refused to approve a

120,000 barrels-per-day refinery at Daitari in Orissa because it feared future

over-capacity.

By the early 1990s, Indian Oil refined, produced, and transported petroleum

products throughout India. Indian Oil produced crude oil, base oil, formula

products, lubricants, greases, and other petroleum products. It was

organized into three divisions. The refineries and pipelines division had six

refineries, located at Gwahati, Barauni, Gujarat, Haldia, Mathura, and Digboi.

Together, the six represented 45 percent of the country's refining capacity.

The division also laid and managed oil pipelines. The marketing division was

responsible for storage and distribution and controlled about 60 percent of

the total oil industry sales. The Assam Oil division controlled the marketing

and distribution activities of the formerly British-owned company.

Indian Oil also established its own research center at Faridabad near New

Delhi for testing lubricants and other petroleum products. It developed

lubricants under the brand names Servo and Servo prime. The center also

designed fuel-efficient equipment.

Changes in the Oil Industry: Late 1990s and Beyond

The oil industry in India changed dramatically throughout the 1990s and into

the new millennium. Reform in the downstream hydrocarbon sector--the

sector in which Indian Oil was the market leader-began as early in 1991 and

continued throughout the decade. In 1997, the government announced that

the Administered Pricing Mechanism (APM) would be dismantled by 2002.

To prepare for the increased competition that deregulation would bring,

Indian Oil added a seventh refinery to its holdings in 1998 when the Panipat

facility was commissioned. The company also looked to strengthen its

industry position by forming joint ventures. In 1993, the firm teamed up with

Balmer Lawrie & Co. and NYCO SA of France to create Avi-Oil India Ltd., a

manufacturer of oil products used by defense and civil aviation firms. One

year later, Indo Mobil Ltd. was formed in a 50-50 joint venture with Exxon

Mobil. The new company imported and blended Mobil brand lubricants for

marketing in India, Nepal, and Bhutan. In addition, Indian Oil was involved in

the formation of ten major ventures from 1996 through 2000.

Indian Oil also entered the public arena as the government divested nearly

10 percent of the company. In 2000, Indian Oil and ONGC traded a 10

percent equity stake in each other in a strategic alliance that would better

position the two after the APM dismantling, which was scheduled for 2002.

According to a 1999 Hindu article, Indian Oil Corporation's strategy at this

time was "to become a diversified, integrated global energy corporation."

The article went on to claim that "while maintaining its leadership in oil

refining, marketing and pipeline transportation, it aims for higher growth

through integration and diversification. For this, it is harnessing new business

opportunities in petrochemicals, power, lube marketing, exploration and

production ... and fuel management in this country and abroad."

In early 2002, Indian Oil acquired IBP, a state-owned petroleum marketing

company. The firm also purchased a 26 percent stake in financially troubled

Haldia Petrochemicals Ltd. In April of that year, Indian Oil's monopoly over

crude imports ended as deregulation of the petroleum industry went into

effect. As a result, the company faced increased competition from large

international firms as well as new domestic entrants to the market. During

the first 45 days of deregulation, Indian Oil lost Rs7.25 billion, a signal that

the India's largest oil refiner would indeed face challenges as a result of the

changes.

Nevertheless, Indian Oil management believed that the deregulation would

bring lucrative opportunities to the company and would eventually allow it to

become one of the top 100 companies on the Fortune 500--in 2001 the

company was ranked 209. With demand for petroleum products in India

projected to grow from 148 million metric tons in 2006 to 368 million metric

tons by 2025, Indian Oil believed it was well positioned for future growth and

prosperity.

Principal Subsidiaries:

 Indo Mobil Ltd. (50%); Avi-Oil Ltd. (25%); Indian Oil tanking Ltd. (25%); Petro

net India Ltd. (16%); Petro net VK Ltd. (26%); Petro net CTM Ltd. (26%); Petro

net CIPL Ltd. (12.5%); Indian Oil PETRONAS Ltd. (50%); Indian Oil Panipat

Power Consortium Ltd. (26%); Indian oil TCG Petrochem Ltd. (50%); Lubrizol

India Pvt. Ltd. (50%).

Principal Competitors:

 Bharat Petroleum Corporation Ltd.; Hindustan Petroleum Corporation Ltd.;

Royal Dutch/Shell Group of Companies.

Company’s profile-

Corporate Overview:

Indian Oil is India’s flagship national oil company with business interests

straddling the entire hydrocarbon value chain – from refining, pipeline

transportation and marketing of petroleum products to exploration &

production of crude oil & gas, marketing of natural gas, and petrochemicals.

It is the leading Indian corporate in the Fortune 'Global 500' listing, ranked at

the 125th position in the year 2010. 

With over 34,000-strong workforce, Indian Oil has been helping to meet

India’s energy demands for over half a century. With a corporate vision to be

the Energy of India, Indian Oil closed the year 2009-10 with a sales turnover

of Rs. 271,074 crore and profits of Rs.10,221 crore.

. 

At Indian Oil, the operations are strategically structured along business

verticals - Refineries, Pipelines, Marketing, R&D Centre and Business

Development – E&P, Petrochemicals and Natural Gas. To achieve the next

level of growth, Indian Oil is currently forging ahead on a well laid-out road

map through vertical integration— upstream into oil exploration & production

(E&P) and downstream into petrochemicals – and diversification into natural

gas marketing and alternative energy, besides globalization of its downstream

operations. Having set up subsidiaries in Sri Lanka, Mauritius and the United

Arab Emirates (UAE), Indian Oil is simultaneously scouting for new business

opportunities in the energy markets of Asia and Africa. 

With facilities at multiple locations and ever-expanding market opportunities,

Indian Oil is poised to become an integrated energy company with steady

forays into Oil Exploration & Production, Petrochemicals and Renewable

Energy.

Reach and Network:

Indian Oil and its subsidiaries account for over 48% petroleum products

market share, 34% national refining capacity and 71% downstream sector

pipelines capacity in India. 

With a steady aim of maintaining its position as a market leader and

providing best quality products and services, Indian Oil is currently investing

Rs. 47,000 crore in a host of projects for augmentation of refining and

pipelines capacities, expansion of marketing infrastructure and product

quality up gradation.

The Indian Oil Group of companies owns

and operates 10 of India's 20 refineries

with a combined refining capacity of 60.2

million metric tons per annum (MMTPA, .i.e.

1.2 million barrels per day). Indian Oil’s

cross-country network of crude oil and

product pipelines, spanning 10,652 km and

the largest in the country, meets the vital energy needs of the consumers in

an efficient, economical and environment-friendly manner.

It has a portfolio of powerful and much-

loved energy brands that includes Indane

LPGas, SERVO lubricants, XtraPremium

petrol, XtraMile diesel, etc. Validating the

trust of 56.8 million households, Indane has

earned the coveted status of ‘Super brand’ in

the year 2009.

Indian Oil has a keen customer focus and a

formidable network of customer touch-

points dotting the landscape across urban

and rural India. It has 18,643 petrol and

diesel stations, including 2,947 Kisan Seva

Kendras (KSKs) in the rural markets. With a

countrywide network of 35,600 sales

points, backed for supplies by 167 bulk storage terminals and depots, 98

aviation fuel stations and 88 LPGas bottling plants, Indian Oil services every

nook and corner of the country. Indane is present in almost 2764 markets

through a network of 5095 distributors. About 7,593 bulk consumer pumps

are also in operation for the convenience of large consumers, ensuring

products and inventory at their doorstep.

Indian Oil’s ISO-9002 certified Aviation Service commands an enviable 63%

market share in aviation fuel business, successfully servicing the demands of

domestic and international flag carriers, private airlines and the Indian Defense

Services. The Corporation also enjoys a 65% share of the bulk consumer,

industrial, agricultural and marine sectors.

Innovation is key:

Indian Oil has a sprawling world-class R&D

Centre that is perhaps Asia's finest. It

conducts pioneering work in lubricants

formulation, refinery processes, pipeline

transportation and alternative fuels, and is

also the nodal agency of the Indian

hydrocarbon sector for ushering in

Hydrogen fuel economy in the country. The Centre holds 215 active patents,

including 109 international patents. 

Some of the in-house technologies and catalysts developed by Indian Oil are

the INDMAX technology (for maximizing LPG as yield), Olivorus–S bio-

remediation technology (extended to marine applications too), DHDS

catalyst, a special Indicate catalyst for Bharat Stage-IV compliant Diesel,

IndVi catalyst for improved distillate yield and FCC throughput, and

adsorbent based deep desulphurization process for gasoline and diesel streams.

Redefining the horizon:

In Petrochemicals, Indian Oil is investing Rs.

20,000 crore (US$ 4 billion) by the year

2011-12. It offers a full slate of products

including Linear Alkyl Benzene (LAB),

Purified Terephthallic Acid (PTA), and an

extensive range of polymers. Indian Oil

holds a significant market share of LAB in

India and exports to 19 countries. A state-of-the-art 120,000 tons per annum

Styrene Butadiene Rubber (SBR) unit is underway at Panipat. The SBR unit

will further strengthen Indian Oil’s presence in the specialty petrochemicals

sector. 

In Exploration & Production, Indian Oil’s

domestic portfolio includes ten oil & gas

blocks and two Coal Bed Methane blocks.

The overseas portfolio includes nine blocks

spread across Libya, Iran, Gabon, Nigeria,

Timor-Leste and Yemen. Exploration

activities are at various stages of progress.

In addition, as part of consortium, Indian Oil has been awarded Project -1 in

the Carabobo heavy oil region of Venezuela. To boost E&P activities, Indian

Oil has incorporated Ind-OIL Overseas Ltd. – a special purpose vehicle for

acquisition of overseas E&P assets – in consortium with Oil India ltd.

 

Natural Gas marketing is another thrust area for Indian Oil with special focus

on City Gas Distribution (CGD) business. The Corporation has entered into

franchise agreements with several CGD players to market Compressed

Natural Gas through its retail outlets. Indian Oil’s joint venture with GAIL

India Ltd. - Green Gas Ltd. – has been authorized to take up city gas distribution

at Agra. A long term gas supply agreement has been signed with NTPC.

Venturing into alternative fuels:

Indian Oil has forayed into alternative

energy options such as wind, solar, bio-

fuels and nuclear power. A 21 MW wind

power project is operational in the Kutch

district of Gujarat and the cumulative

power generation from the 14 wind turbine

generators has crossed 6 crore units

(KW/Hr) since commissioning in January 2009. The solar power initiative is

being spearheaded on a pilot basis in Orissa, Karnataka and the Northeast

and an all-India phased roll out are underway. Solar products such as solar

lanterns and torches are being sold through the Retail Outlets in rural and

urban areas. With a view to investing in the nuclear energy sector in the

country, Indian Oil has entered into an agreement with the Nuclear Power

Corporation of India ltd.

Indian Oil has the largest captive plantation – over 1,000 hectares – for bio-

fuel production in India which is underway in Chhattisgarh and Madhya Pradesh,

generating rural employment of over 1.4 lakhs man-days. To straddle the

complete bio-fuel value chain, Indian Oil has formed a joint venture with the

Chhattisgarh Renewable Development Authority. Indian Oil CREDA Biofuels

Ltd. has been formed to carry out farming, cultivating, manufacturing,

production and sale of biomass, bio-fuels and allied products and services in

Chhattisgarh. In Uttar Pradesh, Indian Oil is establishing a model value chain for

the production of bio-diesel. A MoU for collaborating on commercial

production of bio-diesel from algae has also been signed with PA LLC.

Indian Oil. The Energy of India:

As a leading public sector enterprise of

India, Indian Oil has successfully combined

its corporate social responsibility agenda

with its business offerings, meeting the

energy needs of millions of people

everyday across the length and breadth of

the country, traversing a diversity of

cultures, difficult terrains and harsh

climatic conditions. The Corporation takes pride in its continuous

investments in innovative technologies and solutions for sustainable energy

flow and economic growth and in developing techno-economically viable and

environment-friendly products & services for the benefit of its consumers.

Vision with values:

Objectives & Obligations:

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 supplies 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 lying 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 minimizing/eliminating imports and to have next generation

products.

To optimize utilization of refining capacity and maximize distillate yield

and gross refining margin.

To maximize utilization of the existing facilities for improving efficiency

and increasing productivity.

To minimize fuel consumption and hydrocarbon loss in refineries and

stock loss in marketing operations to effect energy conservation.

To earn a reasonable rate of return on investment.

To avail of all viable opportunities, both national and global, arising out

of the Government of India’s policy of liberalization and reforms.

To achieve higher growth through mergers, acquisitions, integration

and diversification by harnessing new business opportunities in oil

exploration & production, petrochemicals, natural gas and downstream

opportunities overseas.

To inculcate strong ‘core values’ among the employees and

continuously update skill sets for full exploitation of the new business

opportunities.

To develop operational synergies with subsidiaries and joint ventures

and continuously engage across the hydrocarbon value chain for the

benefit of society at large.

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 recognized 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.

Towards Defense Services: - To maintain adequate supplies to

Defense and other Para-military services during normal as well as

emergency situations.

Indian Oil Major Projects:

Indian Oil continues to lay emphasis on

infrastructure development. Towards this end, a

number of schemes have been initiated with

increasing emphasis on project execution in

compressed schedules as per world benchmarking

standards. Schemes for improvement and increased profitability through

debottlenecking / modifications / introduction of value added products are

being taken up in addition to grassroots facilities. Project systems have been

streamlined in line with ISO standards.

GRASSROOTS REFINERY PROJECT AT PARA DIP (ORISSA):

Project Cost: Rs. 29,777.00 crore

Expected Commissioning: March-November, 2012

Benefit: The project will help in partially meeting the deficit in distillates

viz. LPG, Naphtha, MS, Jet/Kero, Diesel and other products, in the eastern

part of the country. The complex will generate intermediate petrochemicals

feedstock.

Brief Description: A 15 MMTPA refinery is being constructed at Para dip in

Orissa. The refinery will have, apart from a Crude and Vacuum Distillation

Unit, a Hydro cracking Unit, a Delayed Coker Unit and other secondary

processing facilities. This will be the most modern refinery in India with a nil-

residue production, and the products would meet stringent specifications.

Indian Oil has taken over 3344 acres of land for the project and necessary

infrastructure development jobs prior to setting up of the main refinery are

in progress.

RESIDUE UPGRADATION AND MS/HSD QUALITY IMPROVEMENT

PROJECT AT GUJARAT REFINERY:

Project Cost: Rs. 6,898.00 crore

Expected Commissioning: July to October, 2010

Benefit: The objectives of the project are multifold. It will ensure

compliance to product quality requirement of MS/HSD to EURO-III/IV levels;

enable processing of increased quantity of high sulphur crude, and

improvement in distillate yield.

Brief Description: The project envisages setting up of a number of units

like VGO-HDT, ATF-Merox, FCC-Merox, LPG-Merox, ISOM, Coker, DHDT, HGU

(PDS) and SRU.

MS QUALITY UPGRADATION PROJECT BARAUNI REFINERY (BIHAR):

Project Cost: Rs. 1,492.00 crore

Expected Commissioning: September 2010 

Benefit: The implementation of this project will improve the quality of MS

to conform to Euro-III equivalent norms.

Brief Description: The major process units under this project are

Isomerisation, Naphtha Hydrotreater, Reformate Splitter, FCC Gasoline

Desulphurization Unit and Hydrogen Generation Unit.

MS QUALITY UPGRADATION PROJECT AT GUWAHATI REFINERY

(ASSAM):

Project Cost: Rs. 372.00 crore

Expected Commissioning: September 2010

Benefit: The implementation of this project will improve the quality of MS

to conform to Euro-III equivalent norms.

Brief Description: The major process units under this project are

Isomerisation, Light Naphtha Splitter, Naphtha Hydrotreater and Indmax

Gasoline Splitter.

MS QUALITY UPGRADATION PROJECT AT DIGBOI REFINERY (ASSAM):

Project Cost: Rs. 356.00 crore

Expected Commissioning: September 2010

Benefit: The implementation of this project will improve the quality of MS

to conform to Euro-III equivalent norms.

Brief Description: The major process units under this project are

Isomerisation, Naphtha Splitter, Naphtha Hydrotreater and Reformate

Splitter.

DADRI-PANIPAT R-LNG SPUR PIPELINE:

Project Cost: Rs. 298.00 crore

Expected Commissioning *: Mid July 2010

Benefit: The 132 km long 30 inch diameter spur line carrying degasified

LNG (R-LNG) will stretch from GAIL India’s Dadri terminal in UP to Panipat.

Brief Description: The proposed R-LNG pipeline will provide for an

economical means of feeding natural gas to Panipat refinery.

* Subject to availability of RoW

PANIPAT REFINERY EXPANSION FROM 12 MMTPA TO 15 MMTPA:

Project Cost: Rs. 1,007.83 crore

Expected Commissioning * : October 2010

Benefit: To meet the growing deficit of petroleum products in the high

demand Northwest region of India.

Brief Description: The project consists of capacity revamp of Crude and

Vacuum Distillation Units (CDU / VDU), Once through Hydro cracking Unit

(OHCU), Delayed Coking Unit, and installation of second stage reactors in

Diesel Hydro treating Unit (DHDT).

* Quality part completed in November, 2009

BRANCH PIPELINE FROM KSPL, VIRAMGAM TO KANDLA:

Project Cost: Rs. 349.00 crore

Expected Commissioning: 30 months after receipt of environment &

forest clearance

Benefit: The pipeline would provide cost-effective link with the sea route

ex-Kandla for coastal movement of surplus products of Koyali refinery and

enhance flexibility in the system for ensuring sustained operation of the

refinery.

Brief Description: Project consists of laying of 16-inch diameter 217 km

long product pipeline from Viramgam to Churwa and use of 22” diameter 14

km existing KBPL pipeline between Churwa to Kandla.

DIESEL HYDRO-TREATMENT (DHDT) PROJECT AT BONGAIGAON

REFINERY (ASSAM):

Project Cost: Rs. 1646.39 crore

Expected Commissioning: September 2010

Benefit: The implementation of this project will improve the quality of HSD

to conform to Euro-III equivalent norms. The project would also improve

smoke point of Raw Kerosene and enhance production of SKO and ATF.

Brief Description: The major process units under this project are DHDT

Unit, Sulphur Recovery Block, Reformer, Power Plant, DM Plant and

Hydrogen Generation Unit.

MS QUALITY UPGRADATION PROJECT AT BONGAIGAON REFINERY

(ASSAM):

Project Cost: Rs. 293.60 crore

Expected Commissioning: September 2010

Benefit: The implementation of this project will improve the quality of MS

to conform to Euro-III equivalent norms.

Brief Description: The major process unit under this project is Light

Naphtha Isomerisation Unit. Existing Xylene Fractionation facilities would

also be used.

PARA DIP-NEW SAMBALPUR-RAIPUR-RANCHI PIPELINE:

Project Cost: Rs. 1793.60 crore

Expected Commissioning: September 2012

Benefit: The proposed pipeline would ensure the evacuation of Para dip

Refinery products and uninterrupted supply to major parts of Orissa,

Chhattisgarh and Jharkhand.

Brief Description: Project consists of laying of 1108 km long product

pipeline with intermediate pumping stations at Jatni and New Sambalpur

and delivery stations at Jatni, Jharsuguda, Ranchi, Raipur and Korba. The

pipeline will be having a telescopic diameter of 18”/14”/12”/10” OD.

DE-BOTTLENECKING OF SALAYA-MATHURA CRUDE PIPLEINE:

Project Cost: Rs. 1584.00 crore

Expected Commissioning: 30 months after receipt of statutory clearances

Benefit: With the proposed de-bottlenecking/augmentation of SMPL, the

refineries would be in a position to process more crude oil.

Brief Description: The proposal is for enhancing the capacity of Salaya-

Viramgam section from 21 MMTPA to 25.0 MMTPA, [Viramgam-Koyali section

from 8.5 MMTPA to 9.0 MMTPA, Viramgam-Chaksu section from 13.5 MMTPA

to 16.5 MMTPA, Chaksu-Mathura section from 7.5 MMTPA to 9.2 MMTPA and

Chaksu-Panipat section from 6 MMTPA to 7.3 MMTPA].

INTEGRATED CRUDE OIL HANDLING FACILITIES AT PARA DIP:

Project Cost: Rs. 1492.33 crore

Expected Commissioning: March 2012

Benefit: The proposed facilities would enhance crude handling capacity at

Para dip port.

Brief Description: The proposal is for installation of 2nd SPM for Para dip

Refinery and 3rd SPM & sub-sea crude oil transfer pipeline with associated

facilities as a part of Integrated Offshore Crude Handling Facilities at Para

dip.

Awards & Accreditations:

Awards:

Awards & Accreditations Date

Reader's Digest ‘Trusted Brand Gold Award’ to Indian Oil

01.07.2010

Barauni Refinery bags 'Best Kaizen Award' 29.06.2010

Indian Oil wins Dun & Bradstreet Awards 17.06.2010

Mathura Refinery bags “International Safety Award”

15.06.2010

Green tech Foundation honors Indian Oil 14.06.2010

Director Marketing felicitates Ranchi DO 07.06.2010

Golden Peacock Innovative Award to R&D Centre

29.05.2010

Green tech Safety Award to Bongaigaon Refinery

24.05.2010

Green tech Safety Award 2010 for Guwahati Refinery

24.05.2010

Green tech Safety Award to Haldia Refinery 24.05.2010

Gold Award to Mathura Refinery for Safety Management

24.05.2010

R&D Centre wins Technology Day Award 2010 11.05.2010

Chairman conferred IIT Delhi Alumni Award 24.04.2010

Lifetime Achievement Award for Director (R&D)

20.04.2010

Director (Finance) wins India’s Best CFO Award

14.04.2010

OCEANTEX 2010 Award to Director (Refineries) for Outstanding Achievement

04.03.2010

Indian Oil tops Business Standard’s 'BS 1000' ranking

16.02.2010

Indian Oil bags four OISD Awards 20.10.2009

Chairman receives ‘SCOPE Award for Excellence’

15.10.2009

Indian Oil receives the MoU Excellence Award 2007-08

15.10.2009

Indian Oil receives ‘Award for Global Impact by an Indian PSU’

10.10.2009

Best Executive’ Honor on Director (Refineries) 30.09.2009

Most Innovative Company’ Honor to Indian Oil 30.09.2009

Indian Oil wins Oil & Gas Supply Chain Excellence Award

21.09.2009

Indian Oil bags Safety Innovation Award 2009 21.09.2009

Indian Oil’s Director (HR) receives 'Pride of HR Profession Award’

19.09.2009

Lanka Indian Oil bags  Business Today Top 10   Award for 2007-08

21.08.2009

Bongaigaon Refinery bestowed Indira Gandhi Paryavaran Puraskar 2006

05.06.2009

Indian Oil wins Reader's Digest Award for most trusted petrol station brand

01.06.2009

Indian Oil sweeps five Petro Fed Oil & Gas Industry Awards (For the year 2008)

16.04.2009

Indian Oil wins Retailer of the Year - 'Rural Impact Award'

17.02.2009

Indian Oil Conferred BML Munjal Award 2009 for Excellence in Learning & Development

14.02.2009

Golden Peacock Award for Indian Oil-R&D for the fourth time

02.01.2009

Indian Oil wins six awards at PRSI annual meet 16.12.2008

Indian Oil wins SCOPE Meritorious Awards for Environmental Excellence & Sustainable Development and Good Corporate Governance

24.11.2008

Indian Oil presented the 'Indian Express Uptime Champion Award'

08.10.2008

Indian Oil conferred SAP ACE Award 2008 for B2B process Integration

24.09.2008

'Oil & Gas Supply Chain Excellence' Award for Indian Oil

22.09.2008

Indian Oil bags 'Most Admired Retailer – Rural' Award 2007

22.09.2008

Safety Innovation Award for Indian Oil for fourth consecutive year

11.09.2008

‘CIO-100’ award for Indian Oil for the third time

09.09.2008

Indian Oil conferred ‘Business Super brand 2008’

05.09.2008

Indian Oil's "Car in a Tank" sales promotion scheme wins Stevie Award

07.07.2008

Indian Oil wins the World Petroleum Congress Excellence Award 2008 for technical development

01.07.2008

Indian Oil's Xtra Power wins Loyalty Summit Award

25.01.2008

Indian Oil Finance Director S.V. Narasimhan 22.01.2008

bags Excellence in Finance Award

Indian Oil wins Retailer of the Year - Rural Impact Award

15.01.2008

Indian Oil- R&D Centre Awarded the coveted WIPO GOLD MEDAL

18.10.2007

Indian Oil wins Oil Industry Safety Directorate Awards

04.10.2007

SERVO acquires prestigious MAN Global approvals

24.09.2007

Indian Oil bags the 'Most Admired Retailer of the Year' award

10.09.2007

Indian Oil honored with `CIO 100 Award 2007' 10.09.2007

Indian Oil bags SCOPE Gold Trophy for Best Practices in Human Resources Management 2005-06

06.09.2007

SAP ACE – Awards for Customer Excellence for Indian Oil

24.08.2007

Indian Oil’s R&D Centre gets special recognition for Bioremediation

24.08.2007

SERVO secures entry into NSF White Book - H1 Category

23.08.2007

Indian Oil, the only petroleum company as `The Most Trusted Brand' in ET's Brand Equity's annual survey

01.06.2007

Distinctions:

Distinctions Date

Indian Oil leads the pack of Indian companies in Fortune’s ‘Global 500’ list

12.07.2010

Indian Oil in ‘Top 50’ Best Companies To Work For

21.06.2010

Reigning on the pinnacle of success 25.02.2010

Indian Oil among 'Best Companies To Work For'

25.01.2010

Indian Oil in top five in Business India’s Super 100 ranking

07.12.2009

Indian Oil tops ET 500 ranking 25.11.2009

Indian Oil in Platt’s ranking 2009 19.11.2009

Indian Oil No.1 in BW 500 Ranking 27.10.2009

Indian Oil leads India Inc. in Fortune's 'Global 500' listing for 2009

10.07.2009

Indian Oil — the only PSU among India’s 25 best employers

16.04.2009

Indian Oil frontrunner in Oil & Gas category in  FE-500 listing of India's top corporate

31.03.2009

Indian Oil tops Business Standard’s 'BS 1000' again

13.03.2009

Indian Oil among India's 'Top 10' in Business India's Super 100 Listing

19.12.2008

Lanka IOC ranked No. 1 Company in Sri Lanka 12.12.2008

Indian Oil tops 'ET 500' rankings once again 21.10.2008

Indian Oil tops Business world's ‘BW Real 500’ rankings again

20.10.2008

Indian Oil third most valuable (company) brand in India: ET-brand finance survey

02.09.2008

Indian Oil leads India Inc. in Fortune's 'Global 500' listing for 2008

11.07.2008

'The Most Trusted Brand' in ET's Brand Equity annual survey-2008

12.06.2008

Indian Oil the 'Top Oil & Gas Company' in Financial Express's 'FE 500' listing

23.05.2008

Indian Oil Tops Business Standard's 'BS 1000' listing

15.02.2008

'Top Ten' in Business India's Super 100 Listing 13.12.2007

Indian Oil among India's 'Top Valuable Companies in BT 500 Listing'

30.11.2007

Indian Oil ranked 2nd amongst India’s Top 50 Most Valuable Brands

31.07.2007

Indian Oil gets a top slot in ET500 listing 22.03.2007

Indian Oil tops 'BS 1000' companies in Sales again

03.01.2007

50 Golden Years in the Service of the Nation:

India’s flagship national oil company and downstream petroleum major,

Indian Oil Corporation Ltd. (Indian Oil) is celebrating its Golden Jubilee during

30th June - 1st September 2009.

Established as an oil marketing entity on 30th June 1959, Indian Oil Company

Ltd. was renamed Indian Oil Corporation Ltd. on 1st September 1964

following the merger of Indian Refineries Ltd. (established in August 1958)

with it. The integrated refining & marketing entity has since grown into the

country’s largest commercial enterprise and India’s No.1 Company in the

prestigious Fortune ‘Global 500’ listing of the world’s largest corporate,

currently at the 116th position. It is also the 18th largest petroleum company

in the world.

Indian Oil Today:

From a fledgling company with a net worth of just Rs. 45.18 crore and sales

of 1.38 million tons valued at Rs. 78 crore in the year 1965, Indian Oil has

since grown over 3000 times with a sales turnover of Rs. 285,337 crore, the

highest–ever for an Indian company, and a net profit of Rs. 2,950 crore for

2008-09. 

Set up with the mandate of achieving self-sufficiency in refining and

marketing operations for a nascent nation set on the path of economic

growth and prosperity, Indian Oil today accounts for nearly half of India’s

petroleum consumption, reaching precious petroleum products to millions of

people every day through a countrywide network of around 35,000 sales

points. They are backed for supplies by 167 bulk storage terminals and

depots, 101 aviation fuel stations and 89 Indane LPG bottling plants. For the

year 2008-09, Indian Oil sold 62.6 million tons of petroleum products,

including 1.7 million tons of natural gas.

The Indian Oil Group of companies owns and operates 10 of India’s 20

refineries with a combined capacity of over 60 MMTPA, accounting for 34% of

national refining capacity, after excluding EOU refineries. Projects under

execution will take the capacity further to 80 MMTPA by the year 2011-12.

Besides setting up state-of-the-art facilities to raise product quality to global

standards, Indian Oil has undertaken chartering of ships for crude oil imports

on its own and is expanding its basket of crudes and upgrading its refineries

to handle a wider array of crudes, including high-sulphur types.

As a pioneer in lying of cross-country crude oil and product pipelines, the

Corporation crossed 10,000 km in pipeline length and about 70 MMTPA in

throughput capacity with the commissioning of the 330-km Para dip-Haldia

crude oil pipeline recently. Plans are under execution to add about 4,000 km

more by the year 2012. In-house capabilities have enabled the Corporation

undertake all pipeline projects on its own and even offer turnkey expertise in

techno-economic feasibility studies, design and detailed engineering, project

execution, operations, maintenance and consultancy services. 

Set up in 1972, Indian Oil's R&D Centre has blossomed into a world-class

institution and Asia's finest. Besides its pioneering work in lubricants

formulation, refinery processes, pipeline transportation and alternative fuels

such as ethanol-blended petrol and bio-diesel, the Centre is also the nodal

agency of the Indian hydrocarbon sector for ushering in Hydrogen fuel into

the country. It has over 214 active patents to its credit, including 113

international patents. Its current R&D focus is on the future business needs

of Indian Oil in the areas of petrochemicals, including polymers, and

alternative energy sources.

Strategic Origins:

Indian Oil was born of the vision of Pundit Jawaharlal Nehru, the first Prime

Minister of India, to pursue a policy of self-sufficiency in the petroleum sector

as a strategic requirement of a free nation.

As part of Panditji’s thrust on oil exploration, refining and marketing

operations, Indian Refineries Ltd. was established in August 1958 under

100% Government ownership to erect refineries and lays petroleum

pipelines. To take care of marketing of petroleum products across the

country, Indian Oil Company Ltd., another 100% Government-owned

Company, was formed on 30th June 1959. It was entrusted with the task of

reaching petroleum products to every nook and corner of the nation,

overcoming severe constraints in terms of logistics, terrain and wide

seasonal and regional fluctuations in demand.

The marketing activities of Indian Oil Company began on 17th August 1960

with the receipt of the first parcel of 11,390 tons of imported diesel of

Russian origin from MV Uzhgorod docked at Pir Pau Jetty in Mumbai. The

Indian petroleum market at that time was ruled by goliaths like Burma Shell,

Esso Eastern Inc., Caltex (India) Ltd., Indo-Burma Petroleum Co. Ltd and

Assam Oil Company Ltd. Indian Oil Company’s first and foremost challenge

was to assert itself in the face of stiff competition from these well-entrenched

transnational oil companies operating in India. In its first year of marketing

(1960-61), the Company’s volume sales was a meager 0.038 million tons

(approximately 5% of industry sale) worth Rs. 0.8 crore. 

The first activity that Indian Refineries Ltd. undertook was the construction of

a refinery at Noonmati near Guwahati in Assam with Rumanian help. The

refinery was inaugurated by Pandit Jawaharlal Nehru himself in 1962, and

processed Upper Assam crude oil received through an Oil India Ltd. (OIL)

pipeline from Nahorkatiya. For product evacuation, the 435-km Guwahati-

Siliguri pipeline and the Siliguri terminal were built and commissioned in

1964. Soon after, it was decided to set up two more refineries, one each at

Barauni and Koyali for processing newly-discovered crude oil at Assam and

Gujarat respectively. The Barauni Refinery was built with Russian

collaboration and went on stream in July 1964. The Koyali Refinery was also

set up with technical assistance of Soviet Russia. Indian Oil acquired control

of the refinery from Oil & Natural Gas Commission on 1st April 1965 and

commissioned it in October the same year after formal inauguration by the

then President of India, Dr. S Radhakrishnan. 

Meanwhile, on 1st September 1964, Indian Refineries Ltd. was merged in

Indian Oil Company to form a vertically integrated entity straddling both

refining and marketing functions, and Indian Oil Company was renamed as

Indian Oil Corporation Ltd. (Indian Oil). While announcing the historic merger,

Prof. Humayun Kabir, the then Union Minister of Petroleum & Chemicals,

hoped that Indian Oil would soon handle at least half of the trade in

petroleum products. He was proved right within five years. By 1969, the

Corporation was handling more than 50% of the total petroleum

consumption of the nation and reached 64.2% market participation by the

year 1974. 

Battle Spurs:

As a veteran IOCian put it once, Indian Oil has been genetically coded to

serve the Defense services. This was proved beyond doubt during the 1965

war, when Indian Oil People maintained the vital supply of petroleum

products to the armed forces with grit and determination. In fact, the

Srinagar depot was one of the first bulk storage facilities set up by the

Corporation, in 1963. Indian Oil’s entry into the aviation fuelling business too

began with the Defense Services in October 1964 and then to civil aviation a

year later, in November 1965.

Another opportunity to show its mettle in times of national emergencies

came Indian Oil’s way during the 1971 war. In fact, in March 1972, during the

war for liberation of Bangladesh, Indian Oil even arranged for crude oil

supplies to the Chittagong Refinery. After the war, the Corporation for the

first time extended reservation in award of retail outlet dealerships to war

widows, disabled Defense personnel, freedom fighters, etc., and continues to

honor this tradition even now. At the time of Operation Vijay at Kargil in

1999, despite shelling of its depots at Leah and Kargil, Indian Oil maintained

petroleum supplies in the war zone and stood by the families of the later war

heroes.

Having proved its mettle in the 1965 war, Indian Oil plunged into frenetic

activity with new-found confidence – setting up refineries, laying pipelines,

building storage terminals and aviation fuel stations, entering new

businesses like bitumen, marine bunkering, and appointing dealers and

distributors across the country. The Haldia Refinery was set up in 1975,

Mathura Refinery in 1982 and Panipat Refinery in 1998. The Corporation is

setting up another grassroots refinery at Para dip in Orissa, for

commissioning by the year 2012.

Marketing Innovations:

Having set up Its first petrol & diesel station (retail outlet) at Kochi in October

1962, Indian Oil currently operates the country’s largest network of retail

outlets numbering over 18, 278 with focus on customer convenience. It was

the first oil marketing company to introduce the concept of Multipurpose

Distribution Centers (MPDCs) at its retail outlets located in rural areas way

back in 1975. These MPDCs served as one-stop convenience shops,

especially for farmers, and were the harbingers of the modern Kisan Seva

Kendra (KSK) successfully introduced by Indian Oil in 2006. As on date, over

2,550 specially formatted Kisan Seva Kendra outlets set up across the

country meet the diverse needs of the rural populace, offering a variety of

products and services such as seeds, fertilizers, pesticides, farm equipment,

medicines, spare parts for trucks and tractors, tractor engine oils and pump

set oils, besides auto fuels and kerosene. About 600 such Kendra is being

added to the Corporation’s marketing network every year. Indian Oil has

been chosen as the ‘Most Admired Retailer of the Year’ in the category of

Rural Retailing at the India Retail Forum during 2008. 

As part of customer segmentation, exclusive XTRACARE outlets unveiled in

select urban and semi-urban markets offer a range of value-added services

to enhance customer delight and loyalty. Large format outlets on highways

cater to the needs of motorists, with multiple facilities such as food courts,

first aid, rest rooms and dormitories, spare parts shops, etc. SERVO Xpress

has been launched recently as a one-stop shop for auto care services. To

safeguard the interest of the valuable customers, interventions like retail

automation, vehicle tracking and marker systems have been introduced to

ensure quality and quantity of petroleum products. 

Over the years, Indian Oil has also launched several branded products,

customer-focused specialty products and customer rewards programmes.

New generation branded transportation fuels with multifunctional additives

are now available in major markets. Initiatives for cashless transactions for

customer convenience through co-brand credit cards and fleet cards have

met with great success. 

Indian Oil also enjoys a dominant share of the bulk consumer business,

including that of railways, state transport undertakings, and industrial,

agricultural and marine sectors. Its ISO-9002 certified Aviation Service

commands over 63% market share in aviation fuel business, meeting the fuel

needs of domestic and international flag carriers, private airlines and the

Indian Defense Services. 

Kitchen Revolution:

Indane was the first branded product from Indian Oil to hit the market, at

Kolkata in October 1965, with product sourced from its Barauni Refinery.

Introduction of the clean and efficient LPG as cooking gas ushered in a

revolution in millions of households. Encouraged by customer response and

to ensure dedicated service, Indian Oil undertook massive augmentation of

LPG storage and distribution facilities across the country in 1983. The

process continues even today with the setting up of 89 Indane bottling

plants, mostly in upcountry locations for quicker turnaround of cylinders.

Several innovations were introduced in LPG marketing from time to time, like

mounded storage and 19-kg cylinders for bulk customers, reticulated

supplies for housing complexes and 5-kg cylinders for customers in

inaccessible and hilly terrain. The Corporation’s in-house IndMax process is

aimed at enhancing LPG yield from crude oil refining. Indane cooking gas

today reaches the doorsteps of over 53 million households in nearly 2,700

markets through a network of about 5,000 Indane distributors. This includes

customers in Andaman & Nicobar and Lakshadweep islands. Auto gas (LPG)

dispensing stations are being set up in metros and major cities to cater to

the growing vehicle population using LPG as fuel. 

New businesses:

In pursuit of its Corporate Vision and to achieve the next level of growth,,

Indian Oil is currently forging ahead on a well laid-out road map through

vertical integration – up stream into oil exploration & production (E&P) and

downstream into petrochemicals - and diversification into natural gas

marketing, besides globalization of its downstream operations.

In petrochemicals, Indian Oil is envisaging Rs. 30,000 crore (US$ 7.4 billion)

investment by the year 2011-12. Through the world’s largest single-train

Linear Alkyl Benzene (LAB) plant with an annual capacity of 1, 20,000 tons

set up at its Gujarat Refinery, the Corporation has already captured a

significant market share of LAB in India, besides exports. A world-scale

Paraxylene/Purified Terephthalic Acid plant (annual capacities: PX - 3,63,000

tons, PTA – 5,53,000 tons) for polyester intermediates is already in operation

at Panipat, while a Naphtha Cracker with a capacity of 800,000 tons of

ethylene per annum, equipped with downstream polymer units is also

coming up in Panipat.

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

Methane blocks under NELP (New Exploration Licensing 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. Indian Oil has incorporated Ind-OIL Overseas Ltd. – a special

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

Maturities, in consortium with oil.

In natural gas business, Indian Oil is targeting sale of 2 million tons 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 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.

Group synergy:

As part of inorganic growth through mergers and acquisitions, the refinery

operations and marketing activities of Assam Oil Company were vested in

Indian Oil in October 1981, and it became the Assam Oil Division of Indian

Oil. The old units of the vintage Digboi Refinery (the first refinery in Asia)

were revamped and by 1996 it was transformed into a modern refinery of

Indian Oil.

In the year 2001, Indian Oil acquired the Government stake and

management control of stand-alone refiners Chennai Petroleum Corporation

Ltd. (CPCL) and Bongaigaon Refinery & Petrochemicals Ltd. (BRPL),

substantially enhancing group refining capacity. Subsequently, capacity

expansion of CPCL and lying of the 526-km Chennai-Trichy-Madurai product

pipeline helped further strengthen Indian Oil’s marketing in South India.

Similarly, strategic turnaround initiatives taken by the Indian Oil helped BRPL

come out of the red and post profits and merger with the parent company is

due soon. 

Indian Oil acquired IBP in the year 2002 and seamlessly merged it with the

parent company in 2007, leading to the formation of a larger and more

formidable marketing network. Indian Oil Technologies Ltd. was launched as

a fully-owned R&D subsidiary in the year 2003 to market the Corporation’s

intellectual property. 

Indian Oil has set up three overseas subsidiaries – in Sri Lanka (2003),

Mauritius (2004) and the United Arab Emirates (2006). Lanka IOC Ltd.

operates about 150 petrol & diesel stations in the island nation, besides an

oil terminal and a lube blending plant at Trincomalee. Indian Oil (Mauritius)

Ltd. operates a modern petroleum bulk storage terminal at Mer Rouge port,

has an overall market share of nearly 20%, and commands a 32% market

share in aviation fuelling business in Mauritius. IOC Middle East FZE oversees

blending of SERVO lubricants and marketing of petroleum products and

lubricants in the Middle East, Africa and CIS countries. 

In addition, Indian Oil has eight active joint ventures in operation with

reputed Indian and overseas partners in the areas of aviation refueling, city

gas marketing, LPG and LNG imports and storage, specialty lubricants and

additives, terminal ling services, etc. 

Future plans:

In spite of deregulation of the oil sector and stiff competition from private

players, Indian Oil has maintained its position as India's flagship national oil

company. Indian Oil People have been in the forefront in adapting to the

changing environment and enhancing the organization’s capabilities in

providing innovative and value-added offering to the customers.

Against the backdrop of a rapidly changing business environment, Indian Oil

is focusing on certain key issues for sustained growth in the deregulated

market. These are: prudent finance and projects management, optimum

capacity utilization of refineries and pipelines network, competitive business

strategies, customer-focused innovations in product and service offerings,

streamlining of business processes, and achieving greater synergy with

group companies for enhanced efficiency and effectiveness of the market

place.

The rising customer aspirations for quality products and services, at par with

international standards, have also thrown up myriad opportunities. Indian Oil

is making the most of them mainly in expanding its existing customer base,

customizing products for specific market segments, streamlining distribution

infrastructure, etc. As part of the Marketing Transformation Programme to

move closer to the customers, Indian Oil has bifurcated its marketing

function vertically into exclusive retail and direct consumer groups,

transferred powers from the four regional offices to 16 marketing offices in

State capitals, and set up exclusive groups for process & systems

optimization, brand management and bio-fuels. The ambitious Project

Manthan IT re-engineering project has enabled the organization to assimilate

IT and web-based business solutions for real time, integrated transactions

and IT solutions for supply chain optimization.

India Inspired:

As a leading public sector enterprise of India, Indian Oil has successfully

combined its corporate social responsibility agenda with its business

offerings, meeting the energy needs of millions of people everyday across

the length and breadth of the country, traversing a diversity of cultures,

difficult terrains and harsh climatic conditions. The Corporation takes pride in

its continuous investments in innovative technologies and solutions for

sustainable energy flow and economic growth and in developing techno-

economically viable and environment-friendly products & services for the

benefit of

its customers.

Liquefied Petroleum Gas (LPG):

Indane is today one of the largest packed-LPG brands in the world. Indian Oil

pioneered the launch of LPG in India in the 1970s and transformed the lives

of millions of people with the introduction of the clean, efficient and safe

cooking fuel. LPG also led to a substantial improvement in the health of

women in rural areas by replacing smoky and

unhealthy chullahs with Indane. It is today a fuel synonymous with safety,

reliability and convenience.

LPG is a blend of Butane and Propane readily liquefied under moderate

pressure. LPG vapor is heavier than air; thus it normally settles down in low-

lying places. Since LPG has only a faint scent, a mercaptan odorant is added

to help in its detection. In the event of an LPG leak, the vaporization of liquid

cools the atmosphere and condenses the water vapor contained in it to form

a whitish fog, which is easy to observe. LPG in fairly large concentrations

displaces oxygen leading to a nauseous or suffocating feeling. 

Suraksha LPG hose, flame retardant aprons and energy efficient Green Label

stoves are recommended to enhance safety measures while using LPG as

fuel. 

To prevent diversion, the Indane brand is being backed by RFID technology,

a new concept that helps track the movement of LPG cylinders. Initial trials

are currently going on, after which it will be implemented on a countrywide

basis.

LIQUEFIED PETROLEUM GAS SPECIFICATIONS (LPG):

LPG is a mixture of commercial butane and commercial propane having both

saturated and unsaturated hydrocarbons. LPG marketed in India shall be

governed by Indian Standard Code IS-4576 (Refer Table 1.0) and the test

methods by IS-1448.

PHYSICAL PROPERTIES AND CHARACTERISTICS:

DENSITY:

LPG at atmospheric pressure and temperature is a gas which is 1.5 to 2.0

times heavier than air. It is readily liquefied under moderate pressures. The

density of the liquid is approximately half that of water and ranges from

0.525 to 0.580 @ 15 deg. C.

Since LPG vapor is heavier than air, it would normally settle down at ground

level/ low lying places, and accumulate in depressions.

VAPOR PRESSURE:

The pressure inside a LPG storage vessel/ cylinder will be equal to the vapor

pressure corresponding to the temperature of LPG in the storage vessel. The

vapor pressure is dependent on temperature as well as on the ratio of

mixture of hydrocarbons. At liquid full condition any further expansion of the

liquid, the cylinder pressure will rise by approx. 14 to 15 kg./sq.cm. For each

degree centigrade. This clearly explains the hazardous situation that could

arise due to overfilling of cylinders.

FLAMMABILITY:

LPG has an explosive range of 1.8% to 9.5% volume of gas in air. This is

considerably

narrower than other common gaseous fuels. This gives an indication of

hazard of LPG

vapor accumulated in low lying area in the eventuality of the leakage or

spillage.

The auto-ignition temperature of LPG is around 410-580 deg. C and hence it

will not

ignite on its own at normal temperature.

Entrapped air in the vapor is hazardous in an un purged vessel/ cylinder

during pumping/filling-in operation. In view of this it is not advisable to use

air pressure to unload LPG cargoes or tankers.

COMBUSTION:

The combustion reaction of LPG increases the volume of products in addition

to the

generation of heat. LPG requires up to 50 times its own volume of air for

complete

combustion. Thus it is essential that adequate ventilation is provided when

LPG is burnt in enclosed spaces otherwise asphyxiation due to depletion of

oxygen apart from the formation of carbon-dioxide can occur.

ODOUR:

LPG has only a very faint smell, and consequently, it is necessary to add

some odorant, so that any escaping gas can easily be detected.

Ethyl Mercaptan is normally used as stanching agent for this purpose. The

amount to be added should be sufficient to allow detection in atmosphere

1/5 of lower limit of

flammability or odor level 2 as per IS: 4576.

COLOUR:

LPG is colorless both in liquid and vapor phase. During leakage the

vaporization of

liquid cools the atmosphere and condenses the water vapor contained in

them to form a whitish fog which may make it possible to see an escape of

LPG.

TOXICITY:

LPG even though slightly toxic, is not poisonous in vapor phase, but can,

however,

suffocate when in large concentrations due to the fact that it displaces

oxygen. In view of this the vapor posses mild anesthetic properties.

Commercial LPG & its

uses:

LPG touches our lives in so many ways

although we are unaware of it. From

housing to health, from garments to

glass, from livestock to hospitality,

“Indian Oil” plays its role along the

way, bringing your products that are

superior, durable and simply the best.

Crispy Biscuits & Confectionery

Poultry

Textile Industry

Steel

Pharmaceuticals

Glass

Hotel Industry

Reticulated Piping

Paint drying

Dal mill

Goldsmith’s favorite

 

Crispy Biscuits & Confectionery:

LPG is widely used to manufacture

Crisp Biscuits, Soft Bread, Fluffy

Pastries, Light Khari, Spongy Cakes

and all types of cream and bakery

products of super quality. Precision

control of temperature and low

sulphur content in LPG makes the

product palatable and passes all

Statutory tests for human

consumption.

  

Poultry:

Don’t count your chickens before they

are hatched, but with Indian Oil you

can.

With Indian Oil you get uniform and

localized heating during the first five

weeks both during summer and

winter. 

The advantages of LPG in chicken

brooding are :

Better heat control.

Rapid drying of litter.

The power failures in rural areas are very high resulting in heat

failures, but with LPG as the source of fuel this risk is eliminated.

Direct view of chicks; the heaters don’t take any floor area.

Very low LPG consumption of approx. 60 gms per hour or 50 paisa per

bird in winter.

 

 

Textile Industry:

Has it ever occurred to you that to

produce the textiles you’re wearing,

LPG plays a significant role. The four

main steps in the production of textile

fabric:

Preparation of fabric

Spinning

Weaving

Finishing which includes

Singeing, Bleaching, Dyeing,

Printing, Calendaring etc.

Each of these processes requires a heating source. Steam though mostly

used is not hot enough for certain operations so LPG or electricity is usually

needed in the Finishing process. LPG is better because the heat is more

concentrated. The reflectors do not have to be polished and heaters do not

burn out.

 

 

Steel:

Now let us look at Indian Oil role in the

steel industry and here too, once

again Indian Oil steals the show.

Heat treatment of metals normally

refers to any process involving heating

and cooling of the solid metal with the

aim of modifying its physical

properties but without the intention of

changing its chemical composition. 

Indian Oil easily meets these requirements so steel giants like Jindal have

stuck to Indian Oil over the years for all their fuel needs.

 

Pharmaceuticals:

Just what the doctor ordered “Indian

Oil” from Bharat Petroleum.

LPG is used to join glass components

to form a single object. Indian Oil is

preferred because a clean flame is

obtained which can be adjusted to the

desired size and shape useful in the

production of ampoules.

 

 

Glass:

In the summer heat when you reach

for a thirst quencher, remember Indian

Oil has gone into making the bottles

that hold these great refreshers.

As seen here re-heating of melted

glassware in a special furnace is done

before shaping operations. When

making complicated shapes the

glassware may have to be reheated

several times to keep it malleable. LPG

is generally used because the firing

rate is not very high and combustion

must be free of carbon.

Glass Annealing:

Annealing glassware after manufacture. The cooling rate is very important

because strains will be set up in the glass if it cools at undesired rate.

Annealing is done in normally long ovens with the glass traveling through on

a steel conveyor belt. Indian Oil is used for direct firing and for finer

temperature control.

Glass Melting:

The glass is passed through Indian Oil flames for one or more of the following

reasons:

a. Round off sharp edges

b. Smooth off gob marks or grinding marks

c. Seal cracks

d. Increase surface luster

e. Heating jobs to remove cutting marks

 

 

Hotel Industry:

The cup that cheers the meal that

satisfies the mouth watering delicacies

thanks to “Indian Oil”.Indian Oil is

associated with top brand names in

the hotel industry like Taj. Normally

90% of hotel use Indian Oil for cooking

of food.

No matter what you serve,

Continental,

Chinese, Moghlai, Italian or Russian - a variety of menus to suit various

tastes but the preferred choice and trusted cooking medium “Indian Oil”

   

 

Reticulated Piping:

LPG at the turn of a tap – so quick, so

convenient. Cooking was never easier.

Thanks to the reticulated piped gas

available in several homes today,

Indian Oil is available at the turn of a

tap. It ensures increased safety and

valuable space saving in the kitchen. It

eliminates cylinder refill booking and

handling. Saving of time and no need

to block money for a 2nd cylinder.

 

Paint drying:

LPG application in paint drying has got

distinct advantage over conventional

drying ovens. The hot air is generated

which is free from particulate matter,

leaves no ash and temperature control

is precise. The final quality of paint in

the baking oven is uniform. The result

is excellent surface finish and gloss.

 

 

Dal mill:

The conventional method of grain

drying is process of sun - drying or

passing of flue gases through the bed

of grain. The modern method of grain

drying is by LPG Firing system which

improves the drying process and also

gives no. 1 quality of the grain. As the

grains are of edible quality, LPG does

not leave any ash or carbon particles

on the grains and does not produce

any foul odor on the finished surface

thus fetching better market price.

 

Goldsmith’s favorite:

LPG produces very powerful flame and

can be as sharp as needle. This type

of flame is required for goldsmith to

make very fine gold / silver

ornaments. The working atmosphere

remains free from obnoxious gases

and thus is conducive to the

workmen. 

Food:

LPG is widely used in the Food Industry like Hotels,

Restaurants, Bakeries, Canteens, and Resorts etc.

Low sulphur content and controllable temperature

makes LPG the most preferred fuel in the food

industry.

Metal Industry

The metal industry is indeed one of the

most important consumers of energy.

LPG being a far superior fuel as

compared to the other heavy fuels

helps improve the cost of operation and

strikes an economic balance between

fuel price and quality of the end

product. The application is basically for

cutting, heating and melting.

Both ferrous and non-ferrous metals are frequently cast into shapes by

melting and injection or pouringInto suitable patterns and moulds. LPG in the

instant case is an ideal fuel for meeting the requirement of temperature

regulation and desired quality.

 

Farming Industry

LPG is the ideal fuel for production of

food by Agriculture and Animal

Husbandry. Drying of crops and Other

Farm products requires clean and

sulphur free fuel for drying activity to

avoid any transfer of bad taste or smell

to the dried crops. LPG in the farming

industry can be used for the following :

Drying of Crops

Cereal Drying

Curing of Tobacco and Rubber

Flame Cultivation

Horticulture

Soil Conditioning

Livestock Farming

Steam Raising

Coal , Furnace Oil & Natural Gas are

the most economical fuel for this

application. Though economical, it is

undesirable for reasons of

environmental pollution. Natural gas

being a gaseous fuel requires

pipelines to cater to such

requirements. Hence LPG becomes

the most preferred fuel.

 

Aerosol Industry

An aerosol formulation is a blend of

an active ingredient with

propellant ,emulsifiers, perfumes, etc.

LPG, being environment friendly, has

replaced the Ozone depleting CFC

gases which were earlier used by the

aerosol Industry.

Automotive Industry

Automotive LPG is a clean fuel with high

octane aptly suited for vehicles both in

terms of emissions and cost of the fuel.

The main advantage of using

automotive LPG : it is free of lead, very

low in sulphur,other metals, aromatics

and other contaminants. Unlike Natural

Gas, LPG is not a Green House Gas.

Cogeneration using LPG

LPG is an ideal fuel for electricity & heat / electricity and comfort cooling. This

finds varied Applications in industries requiring power and steam, power and

hot air. LPG is ideally suited for Shopping malls, offices requiring Power and

air conditioning.

RESEARCH METHODOLOGY

Research is an art of scientific and systematic search of pertinent

information on a specific topic. In fact research is an art of scientific

investigation. The advance learner’s Dictionary of current English lays down

the meaning of research as “a careful investigation or inquiry especially

through search for new facts in any branch of knowledge.” Redman and

moray define research as “Systematized effort to gain new

knowledge.” Some people consider research as a movement, a movement

from the known to the unknown. It is actually a voyage of discovery. Redman

and moray define research as a “systematized effort to gain new

knowledge”. According to Clifford woody research comprise defining and

redefining problems, formulating hypothesis or suggested solution;

collecting, organizing and evaluating data; make deduction and reaching

conclusions; and at last carefully testing the conclusions to determine

whether they fit the formulating hypothesis”

Research Problem:

There are two type of research problem those, which relate to state of

nature and those, which relate to relationship between variables. Essentially

two steps are involved in formulating the research problem “understanding

the problem thoroughly and rephrasing the same into meaningful terms from

an analytical point of view.

Research Type:

Research type applied over here is analytical research because the

purpose is to find how to enhance sales of commercial LPG.It includes

surveys and fact-finding inquiries of different kinds.

Sample Design:

The sample design used over here is deliberate sampling. This sample

method involves purposive or deliberate selection of particular units of

universe or constituting a sample, which represents the universe.

Methods of data collection:

Primary data.

Secondary data.

Primary data was collected by two methods: -

1) Questionnaire 2) Personal Interviews

The questionnaire: -

A single set of questionnaire was prepared was for all the non-officers.

The questions included both open-ended and close-ended questions.

Open ended questions or unstructured questions are those to which

respondent answer in their own words. Like:

1) What is your name?

2) What is your occupation?

3) What is your phone number?

Structured questions or close ended questions are those that specify the set

of response alternatives and the response format. A structure question could

be multiple choices, dichotomous or a scale.

Selection of the sample: -

Since it is not possible to cover all customers using

commercial LPG, a sample of them was taken from Paharganj area of New

Delhi for detailed study. The sample was selected on a random basis and it

was tried to make it as a representative of the population as possible. The

survey was conducted on 100 customers.

Collection of secondary data: -

Materials provided by the company were an important

source of secondary information. The materials are also being collected from

the official website of Indian oil corporation, and many other websites and

newspaper articles.

Area from where the population is selected:

Paharganj area of New Delhi.

Sample frame:

Sample frame are the eateries, hotels and restaurants in the selected are of

Paharganj.

Sample size:

The sample size is 100.

FINDINGS:

4) Cost is the major constraint in using 19.0 kg cylinders.

5) Consumers also need some discount schemes and others plans.

6) Very little or less discounts are being provided to the customers.

7) Substitute of 19.0 kg cylinders are also demanded by customers

like 10.0 kg for small eateries and 30.0 kg for big restaurants and

hotels.

8) No credits are being provided to the customers.

9) Customers are fully aware with the fact of illegal usage of

domestic cylinders for commercial purpose and their

consequences.

10) Delivery of cylinders and services of the gas agency is

satisfactory.

LIMITATIONS:

1) Time and cost are the major constraints of the research.

2) Due to large numbers of universe, I could not undertake census

survey and thus has to rely on sample survey only.

3) A sample of 100 eateries, hotels and restaurants has been taken

for study from the area of Pahargang in New Delhi.

4) Most of the respondents did not give their feedback which also

hinders the progress of the survey.

CONCLUSION AND RECOMMENDATIONS:

1) Cost is the major factor, because of which people are using less of 19.0

kg cylinders. So cost should be reduced.

2) Various discounts and other schemes should also be launched from

time to time for the benefit of the customers and enhance the sales of

commercial cylinders.

3) Commercial cylinder should be launched in different weight category

for small users.

4) Black marketing of domestic cylinders should be stopped because

these cylinders are used commercial purpose.

5) The laws should be properly implemented to reduce the use of illegal

usage of domestic cylinders for commercial purpose.

On the distributors end following suggestions are recommended-

1) Frequent raids should be made at least twice in a month so that

illegal use of domestic cylinders could be stopped.

2) Fines, penalties, imprisonment and other actions should be taken

against people who are willfully using domestic cylinders for

commercial purpose.

3) Some authority or powers should be given to distributors so that

they could keep a track on defaulters.

4) Some distributors engage themselves in black marketing the

domestic cylinders.

Note: I am a student of MBA 1st year. A topic is assigned to me for training

purpose

“How to enhance the sales of commercial LPG.”

I request you to fill up this questionnaire.

Name of the respondent:-

Name of the organization/business:-

Address:-

Phone no.:-

E-mail id:-

1. Name of the gas service

……………………………………………………………

………………………………………………………………………………………………

………………………………………………………………………………………………

……..

2. Do you use:

5.0 kg……………………… 14.2

kg………………………

19.0 kg…………………...

other………………………...

Why don’t you use 19.0 kg cylinders?

………………………………………………………………………………………………

………………………………………………………………………………………………

………………………………………………………………………………………………

………………………………………………………………………………………………

……..

3. Which cylinder is more convenient:-

5.0 kg…………………….

14.2kg………………………

19.0 kg…………………..

Other…………………………

Why?

………………………………………………………………………………………………

………………………………………………………………………………………………

………………………………………………………………………………………………

………………………………………………………………………………………………

……..

4. Are the cylinders easily available-

Yes……………

No………………………

5. Do the gas service entertain you properly-

Yes……………

No………………………

6. Is the information is fully provided to you regarding 19.0 kg cylinders-

Yes……………

No………………………

7. Number of cylinders used per month-

0-5 ………………….. 5-

10…………………………

10-15……………….. More than 15

…………..

8. Within what duration cylinder is available after booking and at which

time customer requires the cylinder

………………………………………………………………………………………………

………………………………………………………………………………………………

………………………………………………………………………………………………

………………………………………………………………………………………………

………

9. Delivery of which cylinder is more convenient-

5.0 kg……………………… 14.2

kg………………………

19.0 kg…………………...

other………………………...

10. Whether any discount is offered to you on 19 kg refill if yes How

much?

………………………………………………………………………………………………

………………………………………………………………………………………………

………………………………………………………………………………………………

………………………………………………………………………………………………

……..

11. Any credit is being offered by the Distributor? How much

discount is expected as a customer?

………………………………………………………………………………………………

………………………………………………………………………………………………

………………………………………………………………………………………………

………………………………………………………………………………………………

……..

12. If using 14.2 kg whether the customer is aware that it is illegal to

use domestic cylinders for commercial use & their consequences?

………………………………………………………………………………………………

………………………………………………………………………………………………

………………………………………………………………………………………………

………………………………………………………………………………………………

………

13. If using 19 kg which company is providing the cylinder & the

discounts and services offered by them?

………………………………………………………………………………………………

………………………………………………………………………………………………

………………………………………………………………………………………………

………………………………………………………………………………………………

………

14. What are reasons for not using 19.0 kg cylinders?

………………………………………………………………………………………………

………………………………………………………………………………………………

………………………………………………………………………………………………

………………………………………………………………………………………………

……..

15. What are the different improvements which should be made in

19.0 kg cylinder?

………………………………………………………………………………………………

………………………………………………………………………………………………

………………………………………………………………………………………………

………………………………………………………………………………………………

………

16. Any substitute of 19.0 kg cylinder which you want to have-

………………………………………………………………………………………………

………………………………………………………………………………………………

………………………………………………………………………………………………

………………………………………………………………………………………………

………

17. Any suggestions you want give for improving the sales of 19.0 kg

cylinders-

………………………………………………………………………………………………

………………………………………………………………………………………………

………………………………………………………………………………………………

………………………………………………………………………………………………

………

Date:

signature:

1. Do you use:

5.0 kg……………………… 14.2

kg………………………

19.0 kg…………………...

other………………………...

70

20

10

Usage of cylinders

19.0 KG

14.2 KG

BOTH 19.0 & 14.2 KG

RESULT:

In the above diagram 70% people are using 19.0 kg cylinder

20% are using 14.2 kg cylinders

And 10% are using both 19.0 and 14.2 kg cylinders.

2. Which cylinder is more convenient:-

5.0 kg…………………….

14.2kg………………………

19.0 kg…………………..

Other…………………………

10

90

Convinenec e of cylinders

YESNO

RESULT

90% of the customers say that 19.0 kg cylinders are more convenient

10% says that 14.2 kg cylinders are more convenient.

3. Are the cylinders easily available-

Yes…………… No………………………

99

1

Easy availabilty of cylinders

YESNO

RESULT

99% of the customers say that 19.0 kg cylinders are easily available

Only 1% of the customer is against it.

4. Do the gas service entertain you properly-

Yes……………

No………………………

99

1

Services of gas ageny

YESNO

RESULT

99% of the customers say that gas agency entertain them properly.

Only 1% of the customer is against it.

5. Is the information is fully provided to you regarding 19.0 kg cylinders-

Yes……………

No………………………

100

Information provided by gas agency

yes

RESULT

Customers are fully satisfied with the information provided by gas agencies.

6. Number of cylinders used per month-

0-5 ………………….. 5-

10…………………………

10-15……………….. More than 15

…………..

25

43

15

17

Number of cylinders used per month

0-55-1010-15mora than 15

RESULT

25% of customers use 0-5 cylinders per month.

43% of customers use 5-10 cylinders per month.

15% of customers use 10-15 cylinders per month.

17% of customers use more than 15 cylinders per month.

7. Delivery of which cylinder is more convenient-

5.0 kg……………………… 14.2

kg………………………

19.0 kg…………………...

other………………………...

80

20

Delivery of cylinders

19.0 kg14.2 kg

RESULT

80% of the customers are satisfied with the delivery of 19.0 kg

cylinders.

20% of the customers are satisfied with the delivery of 14.2 kg

cylinders.

8. Whether any discount is offered to you on 19 kg refill if yes How much?

8%

92%

Discount offered

yesno

RESULT

92% of the customers are says that discounts are not offered on the

refill of 19.0 kg cylinders.

8% of the customers are says that discounts are being offered on the

refill of 19.0 kg cylinders.

9. Any credit is being offered by the Distributor? How much discount is

expected as a customer?

95%

5%

Credits provided

NOYES

RESULT

95% of the customers say that credits are not provided to them on the

refill of 19.0 kg cylinders.

5% of the customers say that credits are provided to them on the refill

of 19.0 kg cylinders.

10. If using 14.2 kg whether the customer is aware that it is illegal to use

domestic cylinders for commercial use & their consequences?

98%

2%

Awareness of customers

YESNO

RESULT

98% of the customers are aware of the consequences of using domestic

cylinders for commercial purpose.

2% of the customers are not aware of the consequences of using domestic

cylinders for commercial purpose.

Bibliography:

www.google.com

www.iocl.com

www.thehindu.com

www.potenandpartner.com

www.timesofindia.com

Research Methodology by C. R. Kothari.