INDIAN OIL Graphical Presentation

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INDIAN OIL - A NATIONAL BRAND

Beginning in 1959 as Indian Oil Company Ltd., Indian Oil Corporation Ltd. was formed in 1964
with the merger of Indian Refineries Ltd. (established 1958).

Indian Oil Corporation Ltd. (Indian Oil) is India's largest commercial enterprise, with a sales
turnover of Rs. 58676crore and profits of Rs. 7976.48 for the year 2008-09. Indian Oil is also
the highest ranked Indian company in the prestigious Fortune 'Global 500' listing, having
moved up 11TH places to the 105TH position in 2009. It is also the 20th largest petroleum
company in the world. The Indian Oil Group of companies owns and operates 10 of India's 19
refineries with a combined refining capacity of 60.2 million metric tonnes per annum (MMTPA,
.i.e. 1.2 million barrels per day). These include two refineries of subsidiary Chennai Petroleum
Corporation Ltd. (CPCL) and one of Bongaigaon Refinery and Petrochemicals Limited (BRP).
Indian Oil and its subsidiaries account for a 47% share in the petroleum products market, 40%
share in refining capacity and 67% downstream sector pipelines capacity in India. The Indian
Oil operates the largest and the widest network of fuel stations in the country, numbering about
17606 (15557 regular ROs & 2049 Kissan Sewa Kendra). It has also started Auto LPG Dispensing
Stations (ALDS). It supplies Indane cooking gas to over 47.5 million households through a
network of 4,990 Indian distributors. In addition, Indian Oil‘s Research and Development
Center (R&D) at Faridabad supports, develops and provides the necessary technology solutions
to the operating divisions of the corporation and its customers within the country and abroad.
Subsequently, Indian Oil Technologies Limited - a wholly owned subsidiary, was set up in 2003,
with a vision to market the technologies developed at Indian Oil‘s Research and Development
Center. It has been modeled on the R&D marketing arms of Royal Dutch Shell and British
Petroleum. Indian Oil is investing Rs. 43,393 crore (US $10.8 billion) during the period 2007-12
in augmentation of refining and pipeline capacities, expansion of marketing infrastructure and
product quality upgradation as well as in integration and diversification project.

Ramendra Pratap Singh


09/MBA/28 Page
10
OVERALL MARKET SHARE

50% IOCL, 50%

40%
HPCL,
30%
25.50% BPCL, 23%
20%
Others,
10%
1.50%
0%
IOCL HPCL BPCL Others

MARKET SHARE IN PIPE LINE

50
45
40
35
30
25 IOCL, 47
20
15 ONGC, 30
10
HPCL, 16
5
BPCL, 7
0
IOCL ONGC HPCL BPCL

Source: Indian Institute of Planning and Management.

Ramendra Pratap Singh


09/MBA/28 Page
11
CUSTOMER PREFERENCE

100%

80%

60%
26% 38% 34% 2%
40%

20%

0%
HPCL BPCL IOCL OTHERS

SCORE OF COMPANIES ON A SCALE OF 10

12
10 BPCL, 4
8 BPCL, 3.5 BPCL, 3.2 BPCL, 3
6 IOCL, 3.5 IOCL, 3.9
4 IOCL, 3 IOCL, 3.2
2 HPCL, 3.5 HPCL, 4 HPCL, 3.2 HPCL, 4
0

Source: Indian Institute of Planning and Management.

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