Indian Oil Corporation Ltd. is India's largest company by sales with a turnover of Rs. 3,28,744 crore ($ 72,125 million) and profit of Rs. 7445 crore ($ 1,633 million) for the year 2010-11.
IndianOil is the highest ranked Indian company in the latest Fortune ‘Global 500’ listings, ranked at the 98th position. IndianOil's vision is driven by a group of dynamic leaders who have made it a name to reckon with.
In this section, read about IndianOil’s business and its spread across the country & abroad. You can also know about IndianOil's current financial performance, special initiatives and recognitions & awards that have come its way.
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 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 minimizing/eliminating imports and to have next generation products.
To optimise utilisation of refining capacity and maximize distillate yield and gross refining margin.
To maximise utilisation of the existing facilities for improving efficiency and increasing productivity.
To minimise 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 liberalisation 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.
Towards customers and dealers:- To provide prompt, courteous and efficient service and quality products at competitive prices.
Towards suppliers:- To ensure prompt dealings with integrity, impartiality and courtesy and help promote ancillary industries.
Towards employees:- To develop their capabilities and facilitate their advancement through appropriate training and career planning. To have fair dealings with recognised representatives of employees in pursuance of healthy industrial relations practices and sound personnel policies.
Towards community:- To develop techno-economically viable and environment-friendly products. To maintain the highest standards in respect of safety, environment protection and occupational health at all production units.
Towards Defence Services:- To maintain adequate supplies to Defence and other para-military services during normal as well as emergency situations.
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.
IndianOil 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 98th position in the year 2011.
With over 34,000-strong workforce, IndianOil has been helping to meet India’s energy demands for over half a century. With a corporate vision to be the Energy of India, IndianOil closed the year 2010-11 with a sales turnover of Rs. 3,28,744 crore ($ 72,125 million) and profits of Rs. 7445 crore ($ 1,633 million).
At IndianOil, 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, IndianOil 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 globalisation of its downstream operations. Having set up subsidiaries in Sri Lanka, Mauritius and the United Arab Emirates (UAE), IndianOil is simultaneously scouting for new business opportunities in the energy markets of Asia and Africa.
Reach and Network
IndianOil and its subsidiary (CPCL) account for over 48% petroleum products market share, 34.8% national refining capacity and 71% downstream sector pipelines capacity in India.
The IndianOil Group of companies owns and operates 10 of India's 20 refineries with a combined refining capacity of 65.7 million metric tonnes per annum (MMTPA, .i.e. 1.30 million barrels per day approx.). IndianOil's cross-country network of crude oil and product pipelines spans 10,899 km with a capacity of 75.26 MMTPA of crude oil and petroleum products and 10 MMSCMD of gas. This network is the largest in the country and 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, PROPEL, petrochemicals, etc. Validating the trust of 56.8 million households, Indane has earned the coveted status of 'Superbrand' in the year 2009 and now has a customer base of 61.8 million.
IndianOil has a keen customer focus and a formidable network of customer touch-points dotting the landscape across urban and rural India. It has 20,421 petrol and diesel stations, including 3517 Kisan Seva Kendras (KSKs) in the rural markets. With a countrywide network of 36,900 sales points, backed for supplies by 140 bulk storage terminals and depots, 3,960 SKO/LDO dealers (60% of the industry), 96 aviation fuel stations and 89 LPGas bottling plants, IndianOil services every nook and corner of the country. Indane is present in almost 2764 markets through a network of 5456 distributors (51.8% of the industry). About 7780 bulk consumer pumps are also in operation for the convenience of large consumers, ensuring products and inventory at their doorstep.
IndianOil'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 Defence Services. The Corporation also enjoys a 65% share of the bulk consumer, industrial, agricultural and marine sectors.
With a steady aim of maintaining its position as a market leader and providing the best quality products and services, IndianOil 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 upgradation.
Innovation is key
IndianOil 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 212 active patents, with over 100 international patents.
Some of the in-house technologies and catalysts developed by IndianOil include the DHDT technology, Light Naptha Isomerization technology, INDMAX technology (for maximizing LPGas yield), Oilivorous –S bio-remediation technology(extended to marine applications too), Diesel Hydro DeSulphurisation(DHDS) catalyst, a special Indicat catalyst for Bharat Stage – IV compliant Diesel, IndVi catalyst for improved distillate and FCC throughput, and adsorbent based deep sulphurisation process for gasoline and diesel streams.
Redefining the horizon
In Petrochemicals, IndianOil offers a full slate of products including Linear Alkyl Benzene (LAB), Purified Terephthallic Acid (PTA) and an extensive range of polymers. IndianOil holds a significant market share of LAB in India and exports to 19 countries. It is the largest suppliers of Mono-Ethylene Glycol (MEG) in the domestic market. Execution of a state-of-the-art 120,000 tonnes per annum Styrene Butadiene Rubber (SBR) unit is underway at Panipat. The SBR unit is expected to further strengthen IndianOil’s presence in the speciality petrochemicals sector.
In Exploration & Production, IndianOil's domestic portfolio includes 11 oil and gas blocks and 2 CBM blocks in India including 2 blocks as part of a consortium under NELP-VIII (blocks GK-OSN-2009/1 and GK-OSN-2009/2). The overseas portfolio includes ten 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, IndianOil has been awarded Project -1 in the Carabobo heavy oil region of Venezuela. To boost E&P activities, IndianOil has incorporated Ind-OIL Overseas Ltd. – a special purpose vehicle for acquisition of overseas E&P assets – in partnership with Oil India Ltd.
Natural Gas marketing is another thrust area for IndianOil 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. During 2010-11, gas sales grew by an impressive 20.7% to 2.3 million tones from 1.91 million tones in the previous year.
IndianOil is also setting up a 5 MMTPA LNG import, storage and regassification terminal at Ennore (outskirts of Chennai). This LNG terminal would be the first of its kind on the East Coast of India.
IndianOil's joint venture with GAIL India Ltd. - Green Gas Ltd. – is authorised to take up city gas distribution in Agra. A long term gas supply agreement has been signed with NTPC.
Furthermore, in consortium with GSPC, HPCL and BPCL, IndianOil has won gas pipeline bids for Mallavaram to Bhilwara and Vijaypur via Bhopal, Mehsana to Bhatinda and Bhatinda to Jammu and Srinagar.
Venturing into alternative fuels
IndianOiI 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. The solar power initiative is being spearheaded on a pilot basis in Orissa, Karnataka and the Northeast and a pan-India phased roll-out is 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, IndianOil has entered into an agreement with the Nuclear Power Corporation of India Ltd.
IndianOil has the largest captive plantation – over 1,000 hectares – for bio-fuel production in India which is underway in the States of Chattisgarh and Madhya Pradesh, generating rural employment. To straddle the complete bio-fuel value chain, IndianOil has formed a joint venture with the Chhattisgarh Renewable Development Authority. IndianOil 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 Chattisarh. In Uttar Pradesh, IndianOil 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