CONTENTS 1. INTRODUCTION 2. PETROLEUM A PROFILE 3. INDIAN OIL COMPANY LIMITED A PROFILE 4. PETROL REFINERY 5.

. MINISTRY OF PETROLEUM AND NATURAL GAS AND PETROLEUM PRODUCTS 6. Data ANALYSIS and Inte ! etat"#n $. SUGGESTIONS AND CONCLUSIONS Anne%& e '&e(t"#nna" e )"*+"#, a!-.

C/APTER0 1 INTRODUCTION TO T/E PRO1ECT REPORT

Int #d&2t"#n A"3( and O*4e2t"5e( S2#!e #6 t-e St&d. Met-#d#+#,. L"3"tat"#n(

Int #d&2t"#n God created man, and man created markets, marketing has a special significant and it is one of the managerial concept unless it is properly understood and put into practicing the right use many of the business are the industrial enterprises will collapse are true failure. All business operations revolve around customer satisfaction & service. The main purpose of business is to creak a profitable market for its product are service & hence to create a customer. As 21st century has approached marketing has become more attractive at the state, national & international level. n the early days, there were no difference between these two lessons selling and marketing. !ver the years marketing has undergone a tremendous change both in its role and function has to deal with e"isting problems more efficiently, strategic marketing planning have very limited scope at the present. The aim of modern business satisfy the consumers and thereby earn profit. The main intention is to provide #uality of product at cheaper rates to consumers with the rapidly increasing in the production of a wide range of products. $arketing has assumed greater importance in recent years. Thus the main ob%ect of marketing is the &creation and delivery of standard of living society'. n the modern market consumer is the king so a producer(s fail is decided by the action of the consumer. That is either buying the product or re%ecting it, so producers tries very hard to achieve competitive efficiency over the other by adopting new technology in production & cost reduction measures. ndian marketing environment is largely described as sellers markets. )e e"perience chronic shortage & scarcities particularly inconveniences or comfort goods. *emand is invariably greater than supply. +urchasing power of masses is very limited more than ,-. of our population have income

below the poverty line. /ulk of our population resides in villages. The consumer are ignorant about the marketing opportunities, hence they have weak bargaining power, selling concept which is product oriented marketing approach research information as well as strategic marketing plan have very limited scope at present. A change is taken place in the marketing environment at a reasonable speed & many consumer oriented marketing companies are beginning to reali0e the presence of competition and buyers market. 1mergence of buyers market and increasing competition demanded, continuous need for marketing research to ensure ma"imum consumers satisfaction & repeated purchase and to lay down appropriate marketing strategies to meet competitive marketing strategies and to meet competitions to service & growing competitive market. $arketing research has a bright future in the matured economy. $arkets are called upon to anticipate changes in the marketing environment involving opportunities, risk & uncertainties. They are re#uired to forecast the directions and intensity of the future changes in the environment and then ad%ust their plans to meet anticipated changes in the environment and secure favorable relationship with changing environment. To do the intelligent planning marketers need information, accurate sales forecasting, marketing plans and programmes through organi0ed information system. )e should have profitable marketing activities, minimum risks & uncertainties. This pro%ect report offers details regarding the progress in marketing of petrol in general & marketing performance of ndian !il 2orporation limited. A"3( and O*4e2t"5e( The mains aims and objectives of the project report are as follows:

 To know the consumer attitude towards service rendered by 4yothi 5ervice 5tation 2ompany limited in 5himoga. To know the position of companies. To list out factors that influences the consumer behavior. To give proper conclusion for improving the marketing of petrol. S2#!e #6 t-e St&d. The study of this pro%ect is confined to 5himoga 2ity only. Any !rgani0ation which markets its product has to conduct a survey regarding the need of the consumers, its price effect & the distributorship. *epending upon the survey, the organi0ation has to schedule its production & sale of the product. This survey is intended to collect the data and to find out the consumers attitude towards the service rendered by the dealer, 4yothi 5ervice 5tation 2ompany 6td. The distributor of !26 in 5himoga is taken for the case study for this pro%ect report. Met-#d#+#,. This pro%ect report has been prepared by utili0ing both type of date i.e., +rimary data and secondary data. +rimary data is the first hand data. t is the date collected for the first line solely for a particular purpose. t is conducted by directly & personally meeting the partner of the firm. 5econdary data is the second hand date. The main sources of secondary data are published & un7published sources. A survey has been made to know consumer attitude towards the service receiving from petrol bank. #uestionnaire method. t is conducted by adopting the !26 against other leading petroleum

5econdary information has also been collected from the firm records, encyclopedia, web site and maga0ines.

L"3"tat"#n( )hen the consumers were contacted & re#uested for their opinion through personal interview about the study, perfect answers were not obtained because some has shown their reluctance to respond due to different regions. /ut as for as possible it has been tried level best to get the correct e"act level and precise information toward the study 5ince the price of petroleum products is fluctuating, it is rather difficult to get respondents from all sections of community. The scope of study is limited to 5himoga city & the inferences has have been drawn with the help of the opinions of the respondents of 5himoga city only. Therefore there are chances of influences becoming and suitable in such marketing environment which have completely a different set up of marketing trends. The time allotted for surveys is very limited, it has become difficult to collect more and more information from large respondents.

C/APTER 2 PETROLEUM A PROFILE Int #d&2t"#n and 3ean"n, C-a a2te "(t"2( F# 3at"#n /"(t# "2a+ De5e+#!3ent E%!+# at"#n P "3a . ! #d&2t"#n En-an2ed O"+ Re2#5e . O66(-# e D "++"n, Re6"n"n, Pet #+e&3 En,"nee "n,

PETROLEUM A PROFILE Int #d&2t"#n +etroleum or crude oil, naturally occurring oily, bituminous 6i#uid 2ompared or various organic chemicals. t is found in large #uantities below the surface of the earth and is used as a fuel and as a raw material in the chemical industry. $odern industrial societies use it primarily to achieve a degree of mobility on land, at sea and in the air that was barely imaginable less than a hundred years ago. n addition, petroleum and it(s derivatives are used in the manufacture of medicines and fertili0ers, foodstuffs, plastic ware, building materials, paints and cloth and to generate electricity. n fact, modern ndustrial civili0ation depends on petroleum and its products; The physical structure and way of life of the suburban communities that surround the great cities are the result of an ample and ine"pensive supply of petroleum, in addition, the goals of developing countries to e"ploit their natural resources and to supply foodstuffs for the burgeoning populations are based on the Assumption of petroleum availability. n recent years, <owever, the worldwide availability of petroleum has steadily declined and its relative cost has increased petroleum will probably no longer be a common commercial material by the mid721st century. 5ee 1nergy supply, world C-a a2te "(t"2( The chemical composition of all petroleum is principally hydrocarbons although a few sulfur containing and o"ygen containing compounds are usually present. The sulfur content varies from about =.1 to percent. +etroleum contains gaseous, 6i#uid and solid elements. The consistency of petroleum varies from 6i#uid as thin as gasoline to 6i#uid so thick that it will barely pour. 5mall #uantities of gaseous compounds are usually *issolved in the 6i#uid when larger #uantities at these compounds

>

are present, the petroleum deposit is associated with a deposit at natural gas ?5ee gases, fuel@. Three broad classes of crude petroleum e"ist; The paraffin Types the asphaltic types and the mi"ed A base types. The paraffin types are composed at molecules in which the number of hydrogen atoms are always two more than twice the number of carbon atoms. The characteristic molecules in the asphaltic types are naphthenes, composed of twice as many hydrogen atoms as carbon atoms. n the mi"edA/ase group are both paraffin hydrocarbons. F# 3at"#n +etroleum is formed under the 1arth(s surface by the decomposition of marine organisms. The remains of tiny organisms that live in the sea and to a lesser e"tent, those of land organisms that are carried down to the sea in rivers and of plants that grow on the ocean A bottoms are enmeshed with the fine sands and silts that settle to the bottom in #uiet sea basins such deposits, which are rich in organic materials, become the source rocks for the generation of crude oil. The process began many millions of years ago with the development of abundant life, and it continues to this day. The sediments grow thicker and sink into the seafloor under their own weight. As additions deposits pile up, the pressure on the once below increases several thousand time. And the temperature rises by several hundred degrees the mud and sand harden into shale and sandstone; carbonate precipitates and skeletal shells harden into limestone; and the remains of the deal organisms are transformed into crude oil and natural gas. /"(t# "2a+ de5e+#!3ent There surface deposits of crude oil have been known to humans for thousands of years. n the areas where they occurred, they were long used for such limited purposes as caulking boats, water proofing cloth, and fueling torches. /y the time of the renaissance, some surface deposits were being

1=

distilled to obtain lubricants and medical products, but the real e"ploitation of crude oil did not begin until the 1> th century. The ndustrial revolution had by then brought about a search for new fuels, and the social charges it effected had produced a need for good, cheap oil for lamps; people wished to be able to work and real after dark whole oil, however, was available only to the rich, tallow candles had an unpleasant odor, and gas %ets were available only in then modern houses and a apartments in metropolitan Areas. The search for a betted lamp fuel led to a great demand for &Bock !il' that is, crude !il and various scientists in the mid7 1> th century were developing processes to make commercial use of it. Thus 4ames young of 1ngland, with others began to manufacture various products from crude oil, but he later turned to coal distillation and the e"ploitation of oil shale(s. The 2anadian physician and geologist Abraham Gessner in 1:-2 obtained a patent far producing from crude oil a relatively clean7 burning, affordable lamp fuel called kerosene; and in 1:-- an American chemist, /en%amin 5illiman, published a Beport indicating the wide range of useful products that could be derived through the distillation petroleum. E%!+# at"#n n order to find crude oil underground geologists must search for a sedimentary basin in which sales rich in organic material have been buried for a sufficiently long time for petroleum to have formed. The petroleum must also have an opportunity to migrate into porous traps that are capable of holding large amounts of fluid. The occurrence of crude oil in the earth(s crust is limited both by these conditions. )hich must be met simultaneously and by the time span of tens of millions to a hundred million year re#uired for the oil(s formation. +etroleum geologists and geophysicists, however, have many tools at their disposal to assist in identifying potential areas for drilling. Thus surface mapping of outcrops of sedimentary beds makes possible the interpretation of subsurface features, which can then be supplemented with

11

information obtained by drilling into the crust and retrieving cares or samples of the rock layers 1ncountered. n addition, increasingly sophisticated seismic Techni#ues the reflection and refraction of sound waves propagated through the 1arth7reveal details of the structure and interrelationship of various layers in the subsurface. Cltimately however the only way to prove that oil is present in the subsurface is to drill a well. n fact most of the oil provinces in the world have initially been discovered by so called wildcatters who relied perhaps as much on institution as on science. P "3a . ! #d&2t"#n $ost oil wells in the C.5. are drilled by the Botary method that was first described in a /ritish patent in 1:33 assigned to B. /eart. n rotary drilling, the drill string, a series of connected pipes, is supported by a derrick. The string is rotated by being coupled to the rotating table on the derrick floor. Then drill bit at the end of the string is generally designed with three cone7shaped wheels tipped with hardened teeth. *rill cuttings are lifted continually to the surface by a circulating fluid system driven by a pump. Trapped crude oil under pressure; were it is not trapped by impermeable rock it would have continued to migrate upward, because of the pressure differential caused by its buoyancy, until it escaped at the surface of the earth. Thus, when a well bare is drilled into this pressured accumulation of oil, the oil e"pands into the low pressure sink created by the well bare in communication with the earth(s surface. As the well fills up with fluid, however, a back pressure is e"erted on the reservation and the flow of additional fluid into the well bare would soon stop, were no other conditions involved, most crude oils. <owever contain significant amount of natural gas in solution, and this gas is kept in solution by the high pressure in the reservoir. The gas comes out of solution when the low pressure in the well bare is encountered and the gas, once liberated, immediately begins to

12

e"pand. This e"pansion, together with the dilution of the column of oil by the less dense gas, results in the propulsion of oil up to the 1arth(s surface. En-an2ed #"+ Re2#5e . The foregoing En-an2ed #"+ has described the cycle of primary production by solution gas e"pansion. Do e"traneous energy is added to the reservoir other then that re#uired for lifting fluids from the producing wells. As stated, however, most reservoirs are developed by numerous wells; and as primary production approaches its economic limit, perhaps only a few percent and no more than about 2- percent of the crude oil has been withdrawn from a given reservoir. The oil industry therefore, has developed schemes for supplementing the production of crude oil that can be obtained mostly by taking advantage at the natural Beservoir energy. 5uch supplementary schemes, collectively known as enhanced oil recovery technology can increase the recovery of crude oil, but only at the additional cost of supplying e"traneous energy to the reservoir. n this way, the recovery of crude oil has been increased to an over all average ,, percent of the original oil. O66(-# e d "++"n, Another method to increase oil field production and one of the most e"citing engineering achievements. n recent decades has been the construction and operation of offshore drilling rigs. The drilling rigs care installed, operated and serviced on an offshore platform in water up to a depth at several hundred methods; the platform may either float or sit on legs planted on the ocean floor, where it is capable of resisting waves, wind, and in arctic regions7 ce floor. Re6"n"n, !nce oil has been produced from an oil field, t is treated with chemicals and heat to remove water and solids and the natural gas is

1,

separated. The oil is then stored in a tank, or battery of tanks, and later transported to a refinery by truck railroad tank car, barge, or pipeline. 6arge oil fields all have direct out lets to ma%or common carrier +ipelines. /asic *istillation Thermal 2racking Alkylation(s and catalytic cracking; +roduct percentages; Pet #+e&3 en,"nee "n, The disciplines employed by e"ploration and petroleum engineers are drawn from virtually every field of science and engineering. Thus the e"ploration staffs include geologist who speciali0e in surface mapping in order to try to reconstruct the subsurface configuration of the various sedimentary start that will afford clues to the presence of petroleum traps. 5ubsurface specialists then study drill cuttings and interpret data on the subsurface formations that is relayed to surface recorders from electrical sonic and nuclear logging devices lowered into the bare hole an a wire line. 5eismologists interpret sophisticated sing signals returning to the surface fro sound waves that are propagated through the earth(s crust. Geochemists study the transformation of organic matter and the means for detecting and predicting the occurrence of such matter in subsurface strata. n addition, physicists, chemists, biologist, and mathematicians all support the /asic research and development of sophisticated e"ploration techni#ues.

13

C/APTER 3 INDIAN OIL COMPANY LIMITED A PROFILE C#3!an. P #6"+e C#3!an. /"(t# . )#a d #6 D" e2t# ( 7"("#n8 M"(("#n8 and 5a+&e( O5e 5"e9 De!a t3ent( Sa6et. and /ea+tP #d&2t( A9a d(

1-

COMPANY PROFILE ndian !il 2orporation 6td. ? ndian !il@ was formed in 1>83 through the merger of ndian !il 2ompany 6td. ?1st. 1>->@ and ndian Befineries 6td. ?1st. 1>-:@. t is currently ndia(s largest company by sales with a turnover of Bs. 1, :,,2=3 crore ?C5 E 31 billion@ and profits of Bs. 3,>1- crore ?C5 E 1.1= billion@ for fiscal 2==:. ndian !il is also the highest ranked ndian company in the prestigious Fortune GGlobal -==( listing, having moved up 19 places to the 1-,rd position this year based on fiscal 2==: performance. t is also the 21st largest petroleum company in the world and the H 1 petroleum trading companies among the Dational !il 2ompanies in the Asia7+acific region. Pe 6# 3an2e d& "n, A! "+0De2e3*e 2::; For the nine months ended *ecember 2==:, ndian !il(s Det +rofit was Bs. 9,,99 crore as against Bs. -,>>9 crore Det +rofit for the same period of the previous year, registering a growth of 2,.. The Gross Turnover moved up by 9. to Bs.1,99,22, crore from Bs. 1,8-,81, crore in the corresponding period of the previous year. The 2orporation sold 38.=2 million tonnes of products, including 2.-> million tonnes by way of e"ports during the nine months ending *ecember 2==: as compared to 3,.=2 million tonnes ?including e"ports@ in the corresponding period of the previous year. The throughput of its refineries and pipelines network was ,-.1, million tonnes and 32.28 million tonnes respectively for the same period as compared to ,2.1> million tonnes and

18

,9.:- million tonnes respectively in the corresponding period of the previous year.

Ind"a<( D#9n(t ea3 Ma4# ndian !il and its subsidiaries account for 39. petroleum products market share among public sector oil companies, 31. national refining capacity and -1. downstream product pipeline capacity. For the year 2==:7=>, the ndian !il group sold -3.8 million tones of petroleum products, including 2.=> million tones through e"ports. The ndian !il Group of companies owns and operates 1= of ndia(s 1: refineries with a combined refining capacity of -3.2= million tones per annum ?1.1 million barrels per day@. These include two refineries of subsidiary 2hennai +etroleum 2orporation 6td. ?2+26@ and one of /ongaigaon Befinery and +etrochemicals 6imited ?/B+6@. The 2ompany(s cross7country crude oil and product pipelines network spanning over >,=== km meets the vital energy needs of the country. To maintain its competitive edge and leadership status, ndian !il is investing Bs. 23,3== crore ?C5 E -.- billion@ during the I +lan period ?2==97 12@ in integration and diversification pro%ects, besides refining and pipeline capacity augmentation, product #uality up gradation and e"pansion of marketing infrastructure.

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Net9# = *e.#nd C#3!a e As the flagship national oil company in the downstream sector, ndian !il, together with its marketing subsidiary, /+ 2o. 6td., reaches precious petroleum products to millions of people everyday through a countrywide network of over ,=,=== sales points. They are backed for supplies by 1:, bulk storage terminals and depots, >9 aviation fuel stations and :: Indane 6+G bottling plants. ndian !il, together with /+, operates the largest and the widest network of petrol & diesel stations in the country, numbering over 1-,===. t reaches ndane cooking gas to the doorsteps of 3,.3 million customers in 2,-38 markets through a network of 3,:-8 ndane distributors. ndian !il(s 5!7>==2 certified Aviation 5ervice commands a 83. market share in aviation fuel business, meeting the fuel needs of *omestic and international flag carriers, private airlines and the ndian *efense 5ervices. ndian !il also en%oys a dominant share of the bulk consumer business, encoding that of railways, state transport undertakings, industrial, agricultural and marine sectors. ndian !il(s world class B&* 2entre is perhaps Asia(s finest. /esides pioneering work in lubricants formulation, refinery processes, pipeline transportation and alternative fuels such as bio7diesel, the 2entre is also the nodal agency of the ndian hydrocarbon sector for ushering in <ydrogen fuel in the country.

1:

C#3!an. /"(t# . T-e Pat- #6 G #9t1>5;? Befineries 6td. was formed with $r. Fero0e Gandhi as 2hairman. 1>5>? ndian !il 2ompany 6td. was established on ,=th 4une 1>-> with $r. 5. Di%alingappa as the first 2hairman. 1>6:? Agreement for supply of 5J! and <5* was signed with the then C55B. $.K; LC0hgorodL carrying the first parcel of 11,,>= tones of <5* docked at +ir +au 4etty in $umbai on 19th August 1>8=. 1>62? Guwahati Befinery was inaugurated by +t. 4awaharlal Dehru. 2onstruction of /arauni Befinery commenced. 1>63? Foundation was laid for Gu%arat Befinery ndian !il /lending 6td. ?a -=;-= 4oint Kenture between ndian !il and $obil@ was formed. 1>64? ndian !il 2orporation 6td. was born on 1st 5eptember, 1>83 with the merger of ndian Befineries 6td. with ndian !il 2ompany 6td. /arauni Befinery was commissioned. The first petroleum product pipeline from Guwahati to 5iliguri ?G5+6@ was commissioned. 1>65? Gu%arat Befinery was inaugurated by *r. 5.Badhakrishnan, the +resident of ndia. /arauni7Janpur +ipeline ?/J+6@ and Joyali7 Ahmedabad product +ipeline ?JA+6@ commissioned. ndian !il +eople maintained the vital supply of +etroleum products to *efense in 1>8-)ar. 1>66? The first long7term agreement was signed for harmonious employee relations. 1>6$? <aldia /araurii +ipeline ?</+6@ was commissioned. /itumen and $arine /unker business began. 1>6;? Techno7economic studies for <aldia72alcutta, /ombay7+une and /ombay7$an mad +ipelines submitted to the Government.

1>

1>6>? ndian !il undertook the marketing of $adras Befinery products. 1>$:? ndian !il ac#uired 8=. ma%ority shares of /+. The same was offloaded in favor of the +resident of ndia under a *irective in 1>92. 1>$1? *ealershipMreservation was e"tended to war widows, disabled *efense personnel Freedom Fighters, etc. after 1>91 )ar. 1>$2? B&* 2entre was established at Faridabad. SERVO, the first indigenous lubricant was launched. 1>$3? Foundation7stone of $atura Befinery was laid by $rs. ndira Gandhi, the then +rime $inister of ndia. 1>$4? ndian !il /lending 6td. ? !/6@ became the wholly owned subsidiary of ndian !il. $arketing *ivision attained a new watershed with a market participation of 83.2.. 1>$5? <aldia Befinery was commissioned. $ultipurpose *istribution 2enters were introduced at 1,2 Betail !utlets pioneering rural convenience. 1>$6? +rivate petroleum companies nationali0ed. 1>$$? B&* centre launched Dtan wick stove. 1>$;? +hase7wise commissioning of 5alaya7$athura 2rude !il +ipeline ?5$+6@ began. 1>$>? /arauni Befinery and /ongaigaon Befinery and +etrochemicals 6td. ?/B+6@ affected by Assam agitation. 1>;:? The second !il 5hock was witnessed as a result of ranian Bevolution. 2rude !il price flared to a new high of E,2 per barrel. 1>;1? *igboi Beferee and Assam !il 2ompanyNs ?A!2@ marketing operations were vested in ndian !il. t became Assam !il *ivision ?A!*@ of ndian !il. 1>;2? $atura Befinery was commissioned.

2=

$athura74alandhar undertaken.

+ipeline

?$4+6@

was

commissioned.

1>;3? $assive augmentation of 6+G storage and distribution facilities was +roposal for the 8 $$T+A Befinery at Jarnal was submitted at an estimated cost of Bs l, 1:1 2rore. I3!# tant +and3a =( "n t-e -"(t# . #6 #"+ "nd&(t . First oil well is discovered in 1:-> at Titusville, +ennsylvania at 8- feet by 2ole. drake. First oil well in ndia near /oob hill station, Assam in 1::> by Assam railway & tradingO co. at 882 feet. 5uccessful drilling for oil at *igboi in 1:>>. A!2 formed in 1:>= and *igboi refinery on stream in 1>=1. /!2 took over in 1>21. Geological survey of ndia was undertaken during 1>3971>-,. 5tandard vacuum refinery went on stream at $umbai in 1>-3. /urma shell refinery went on stream in 1>--. !il struck at Ankles war in $ay 1>8=. !il !DG2 formed on 13th August, 1>-8. 2alte" refinery commissioned in 1>-9 at Ki0ag. ndian refineries ltd. Formed in 1>-:.

First oil well struck at 4walamukhi in may 1>-:. !il struck at 2am bay in 5eptember 1>-:. ndian oil co. formed on ,=th 4une, 1>->.struck at Budrasagar, Assam in *ecember, 1>8=. !il struck at Jalol in 4une 1>81. )#a d #6 D" e2t# ( The board of ndian oil has set certain strategic goals based on its vision and mission statement so as to become a ma%or, diversified,

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transnational, integrated energy company. The board defines the company(s policy and oversees its implementation for attainment of its goals. C#3!#("t"#n #6 *#a d #6 d" e2t# (? The board of ndian oil consists of an optimum combination of e"ecutive and non e"ecutive directors. +art7time non7e"ecutive directors are persons with proven record in diverse areas like energy policy, academics, marketing, government, public sector companies, etc At present, the board has a total of 18 directors. This includes chairman and 1= whole7time functional directors, 8 part7time non7e"ecutive directors, , part7time non7e"ecutive nominee directors from the ministry of petroleum & natural gas ?$!+ & DG@, govt. of ndia, and a nominee from !DG2 ltd. N&3*e #6 *#a d 3eet"n,(? There were 12 board meetings during the financial year 2==87=9 as against the re#uirement of holding one meeting every #uarter as per the provisions of the companies act, 1>-8.

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)OARD OF DIRECTORS / $

5arthak/ehuria 2hairman

$ Cplenchwar *irector ?+ipelines@

/ansal *irector ?+lanning&/usiness *evelopment@

5 K Darasimhan *irector ?Finance@

K.2. Agrawal *irector ?<uman Besources@ & *irector7in7charge ? /+ *ivision@

G.2.*aga *irector ?$arketing@

+J

/ D /ankapur *irector ?Befineries@

Anand Jumar *irector ?Besearch & *evelopment@

2hakraborti *irector ?+ipelines@

+ J 5inha 4oint 5ecretary & Financial Advisor $inistry !f +etroleum & Datural

5.5undareshan Additional 5ecretary $inistry !f +etroleum & Datural Gas

2,

Gas

+art7time non7e"ecutive independent directors ?Govt. nominees@

+rof 5 J /arua $, Ahmedabad

Kineet Dayyar Kice 2hairman & $anaging *irector 7 Tech $ahindra 6td

K Banganathan Former 2hief 5ecretary, Government of $aharashtra

+.$. 5inha 2hairman, /ATA ndia 6td. and Former 2hairman, +epsico ndia <oldings

K.J. Agarwal Former 2hairman, Bailway /oard

+rof.?5mt@ ndira 4. +arikh Former +rof. $, Ahmedabad and +resident, F6A$1, +une.

P "n2"!a+ E%e2&t"5e( Amar%eet 5ingh 6amba Kipin Jumar E%e2&t"5e D" e2t# ( C# !# ate O66"2e 2hief Kigilance !fficer Advisor ?5ecurity@

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2 *asgupta 5 5 5oni K J 5ood 5 2 4ain B Darayanan A.J Guha J Govindara%an J J Gupta T Kasudevan A J Boy K 5 !khde Thomas Antony 5atish Jumar $s. * 6illy A 5 C%wal 5 Bamasamy A J Bauniar A + Kerghese

Gas ? ncharge@ nformation 5ystems ? ncharge@ nternal Audit 2orporate Finance 2orporate Affairs /usiness *evelopment +etrochemicals 1* i+$ /usiness *evelopment 7Finance 1"ploration & +roduction 1"ploration & +roduction <uman Besources *evelopment <uman Besources +ricing & Ta"ation nternational Trade nformation 5ystems Anti7Adulteration 2ell 6DG

Re6"ne "e( D"5"("#n /ead@&a te ( Bohit /hardwa% + J Goyal < K 5ingh A J $alhotra D J /ansal D J Jhosla 5udhir /halla A 5 /asu Re6"ne "e( $aintenance & nspection and ncharge 5afety, <ealth & 1nvironment Finance +aradip Befinery +ro%ect +ro%ects 5hipping +ro%ects 7 +anipat Befinery <uman Besources !perations

2-

4 + Guharay 5 J Garg B J Ghosh C J /asu G /hanumurthy A J Boy P"!e+"ne( D"5"("#n K + 5harma < +arekh B + +andey Anil Tandon J J 4ha J G Gupta Gautam *utta A $ J 5inha Gautam *atta 5atwant 5ingh Amitava 2hatter%ee $ Dene $rinal Boy D 5rikumar 5 J Gupta B J +uri A((a3 O"+ D"5"("#n + 6 /arua RAD Cent e J Ba%aram

$athura Befinery /arauni Befinery +anipat Befinery Gu%arat Befinery Guwahati Befinery <aldia Befinery

Finance +aradip <aldia 2rude +ipeline +ro%ect 5pecial Assignments !perations +ro%ects )estern Begion +ipelines Finance Betail 5ales <uman Besources 1ngineering & +ro%ects 6ubes 5upplies 6+G 22, /randing & +lanning 2onsumer 5ales 2oordination

Ma =et"n, D"5"("#n /ead O66"2e

Finance

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*r B J $alhotra

6ube Technology

7ISION8 MISSION AND 7ALUES 7"("#n A ma%or, diversified, transnational, integrated energy company, with national leadership and strong environment conscience, playing a national role in oil security & public distribution. M"(("#n To achieve international standards of e"cellent in all aspects of energy and diversified business with focus on customer delight through value of products and services and reduction. To ma"imi0e creation of wealth, value and satisfaction for the shareholders. To attain leadership in developing adopting and assimilating state7of7the7 art technology for competitive advantage. To provide technology and services through sustained Besearch and *evelopment. To foster a culture of participation and innovation for employee growth and contribution. To cultivate high standards of business ethics and Total Puality $anagement for a strong corporate identity and brand e#uity. To help enrich the #uality of life of the community and preserve ecological balance and heritage through a strong environment conscience.

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Kalues ndian !il nurtures a set of 2ore Kalues

)e firmly believe in the fundamental importance of transparency, teamwork and pride in what we do. Indian oil People... towards Excellence... O7ER7IEB OF DEPARTMENTS FINANCE DEPARTMENT Finance is one of the ma%or elements that activate the overall growth of the economy. Finance is the lifeblood economic activity. A well7knit financial system directly contributes to the growth of the economy. n our present day economy finance is defined as the provision of the money at the time when it is re#uired. 1very enterprise whether small medium or big needs finance to carryon its operations and to achieve its targets. n fact, finance is so indispensable today that it is called the life blood of an enterprise. )ithout ade#uate finance no enterprise can possibly accomplish its ob%ectives. Finance is defined as the provision of money at the time when it is re#uired. 1very enterprise whether a large scale, medium scale, or a small scale company needs finance to carry on its operations and to archive its targets. Finance is indispensable to a business concern and it is the lifeblood to an enterprise. The term finance is nothing but the finance of the business activities, business includes all the activities relating to production and distribution of goods and services to a customer.

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T& n#5e ; The turnover?inclusive of e"cise duty@of your corporation for the year ended $arch ,1,2==: was Bs.1,-=,899crore as compared to Bs.1,,=,2=,crore in the previous year, registering a growth of 1-.92.. The total sales volume ?inclusive of e"pert sales@ increased from 3:.81 million tones in 2==87=9 to -=.1, million tones in 2==97=: registering growth of ,.1,.. P #6"t *e6# e Ta%C The corporation earned a profit before ta" of Bs.-,>-- crore during the current year as against Bs.>8>1 crore in 2==97=:. The decrease in profit before ta" is mainly on account of increased under7reali0ation on $5, <5*, 6+G ?domestic@ and 5J! ?+*5@ partially compensated by improvement in refining matters. +rovision for ta"ation; DaE C& ent ta% An amount of Bs 1,=,= crore has been provided towards current ta" considering the applicable income ta" rate as against Bs 2,29- crore provided during 2==87=9.The effective ta" rate for 2==97=: works out to 19.2>. as against 2,.3:. for 2==-7=8. D*EDe6e ed ta% An amount of Bs ,3 crore has been provided towards deferred ta" in 2==87=9 as against Bs 311 crore provided during 2==-7=8. P #6"t a6te ta%? The corporation has earned a profit after ta" of Bs 3,:>1 crore during 2==97=: as compared Bs 9,==- crore in 2==-7=8. De! e2"at"#n and A3# t"Fat"#n? 2onse#uent to increased capitali0ation of fi"ed assets, depreciation for the year 2==97=: was Bs 2,1:3 crore ?including Bs : crore being amount of amorti0ation on intangible assets@ as against Bs 1,:8> crore for the previous year.

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Inte e(t DnetE? nterest e"penditure ?net@ of the corporation for 2==97=: was Bs 398 crore as against Bs 2:9 crore during 2==87=9. )# #9"n,(? ndian oil(s borrowings increased from Bs 12,19: crore as on march ,1, 2==9, to Bs 19,,2= crore as on march ,1, 2==:, mainly due to higher working capital re#uirements. The total debt to e#uity ratio as on march ,1,2==:, works out to =.89;1 as against =.-,;1 as on march ,1,2==9, and long term debt e#uity ratio stands at =.29;1 as on march ,1,2==:, as against =.,1;1 as on march ,1,2==9. Ca!"ta+ a((et(? Bs 8,>2> crore was invested in creating capital assets during the year. Gross fi"ed assets ?including capital work in progress@ increased from 31,893 crore as on march ,1,2==9 to B5 3:,8=, crore as on march as on march ,1,2==: of which 9-. was financed through internal resources. In5e(t3ent(; *uring the year, investments including advances increased from Bs -,->8 crore as on march ,1, 2==- to Bs -,9=- crore as on march ,1, 2==8.The increase in investments was mainly due to ac#uisition of 1- crore e#uity shares of Bs 1=M7 each of haldia petrochemicals ltd.., amounting to Bs 1-= crore. The aggregate market value of the #uoted investments as on $arch ,1, 2==8, i.e. investments made in oil and natural gas corporation ltd.., GA 6? ndia@ ltd.., 2hennai petroleum corporation ltd.., /ongaigaon refinery & petrochemicals ltd., /+ 2! ltd., +etronet 6DG ltd. And 6anka !2 ltd., is Bs 19,>>- crore as against the cost price of Bs -,82- crore, which includes Bs :,> crore in respect of 6anka !2 ltd.., #uoted on the 2olombo stock e"change, being e#uivalent in ndian currency.

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Net 2& ent a((et(? Det current as on $arch ,1, 2==8 was Bs >,882 crore as on $arch ,1, 2==-.The increase in net current asset is mainly due to increase. current liabilities and provisionsQ Ea n"n, !e (-a e? 1arning per share for the year works out of Bs 31.:: as compared to Bs ->.>9 in the previous year. 2ash earning per share for the year works out Bs 8=.-9 as compared to Bs 9-.>9 in previous year. D"5"dend; The board of directors of the corporation as recommended a final dividend of 1==. on the paid7up share capital, in addition to 3-. interim dividend already paid during the year. )ith this, the total dividend for the year works out of 13-. on the paid7up share capital, as against 21=. in the previous year. This is the ,>th consecutive year of dividend declaration by the corporation. 5o far, ndian oil has paid a cumulative dividend of Bs :,>93 crore which does not include the final dividend of Bs 1,18: crore for the year. n inventories and debtors, which have been partially offset by increase in

PRODUCTION DEPARTMENT 1@ Tank loading and unloading schedule n !26 plant of 5himoga they are carrying the following operations. <ere they are fill 8 bullets in this schedule. For filling of these bullets there are certain safety measures they have to follow. They are

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Tank Truck 6oading !peration 1nsure empty tank truck is weighted end recorded. +lace tank truck at loading point properly. 5witch off ignitions and cut7off master switch. Apply hand brakes place choke blocks for tires. +lace fire e"tinguisher ?1= kg dry chemical powder@. 1nsure driver is out of vehicle and standing back side. +rovide ear thing connection to the tank body and chassis. 1nsure correct connections to vapor and li#uid. 2onduct leak test. n form pump house operator to start loading operation. !pen li#uid value of T6*.Than tank truck value. 1nsure correct pressure and flew. Botate B!T! gauge at re#uired intervals and ensure licensed carrying capacity of product. After completing the loading inform pump house operator to stop operations. 2lose main valves at T6+ and TADJ TBC2J.

<ere there are two colors is there they are G een and .e++#9 Green7 n this pipe vapor will loading . t will load 8= to 1== kgMcm2.Rellow7 n this pipe li#uid is unloading. t will unload - kgMcm2 pressures. t will get bounded bullet. 6i#uid stored here. 2@ A6te +#ad"n, and &n+#ad"n, #6 6 *&++et( "t 9"++ ,# t# 3a"n *&++et( #6 !+ant. T-e e a e 3 3a"n *&++et(. They are /71 /71 De(",n 2#de $FB sr. no Rear of manufacture PDS5::CAT 10SMP &+e(8 :15D15: =27+K729 2==,7=3 /72 /7, 1ach of these bullets shows the characteristics of each.

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*esign pressure ?int@ *esign pressure ?e"t@ )ater capacity Test pressure *ate of test 5BK serial no 5BK tested no *ue for test cn )02 *esign code

1-73 kg M cm2 1.:-- kg M cm2 1,=8 m, 2=.9kg M cm2 ,1M1=M=3 1=>8, & 1=>83 2:7=272==9 297=272==:

+*5-==2AT 15$+rules,

=1-*1-= $FB sr.no =27+K729 Rear of manufacture 2==37=*esign pressure ?int@ 1-73kgMcm2 *esign pressure ?e"t@ 1.:-- kgMcm2 )ater capacity 1,=8m, Test pressure 2=.9kgMcm2 *ate of test ,1M1=M=3 5BK serial no 1=>8-&1=>88 5BK tested no 2:7=272==9 *ue for test cn 297=272==: <ere 5BK serial number is different from bullet number 1.

,,

)03 *esign code $FB sr. no Rear of manufacture *esign pressure ?int@ *esign pressure ?e"t@ )ater capacity Test pressure *ate of test 5BK serial no 5BK tested no *ue for test cn 3E P&3! -#&(e <as compressors and pumps to enable unloading of bullets and to assist filling operation. t also houses panels for high level alarm & Bochester level gage. <ere, when :-. of storage vessel is full the main value called B!K is automatically closed. And it will give audio alarm. There will another panel will be called servo level gague to display level of 6+G in storage tanks. +*5-==2AT175$+rules, =1-*1-= =27+K729 2==,7=3 1-73kgMcm2 1.:--kgMcm2 1,=8m, 2=.9kgMcm2 ,1M1=M=3 1=>89&1=>8: 2:7=272==: 297=272==:

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4E F"++"n, 2&3 e3!t. 2.+"nde (-ed DOMESTIC n one load Tare weight 6i#uid COMMERCIAL n one load Tare weight 6i#uid Dow we will move 283S23 cylinders 1> A 2= Jg 13 to how they will fill the gas in cylinders and how ,=8 cylinders 1-.:, 18.: etc 13.2== grm

they will check whether it is fully safe to use or not. n this shed there are 0ones it will carries bellow safety measures. t can be showed in particular chartO 5E F"++"n, <ere per minute they will fill 21 cylinders at a time in this plant. t means there is one round machine is there this machine name is 2AB!C5A6. This will carries 21 cylinders at a time and per minute it will make one round .5o, per minute this will fill 21 gases. After filling of 21 cylinders these cylinders will moves to another safety stages. They are E+e2t #n"2 2-e2= (2a+e? After filling of cylinder this will comes under this safety stage. /ecause if there is any increasing or decreasing of gas it will goes to integrated correction unit A&t#3at"2 5a+&e te(t"n, 3a2-"ne? f there is any problem in value leak Go( ring it will goes to evacuation and corrective action is taken. In+"ne *at-? f any problem in bung of safety value this will alsovisible though bubble formation in water bath. This will tells as /CDJ & /!*R 61AJ. Sea+"n, Un"t?

,-

<ere, they will check in proper manner and after that they will seal it properly and sent it to finished product 0one. SAFETY AND /EALT/

ndian oil corporation is committed to conducing business with a strong environment conscience for sustainable development, safe workplaces and enrichment of the #uality of life its employees, customers and the community at large best procedures and practices of the industry are in place at all operating units and installations of the corporation to take care of safety, occupational health and environmental ha0ards. These facilities are periodically reviewed, audited and upgraded for continuous e"cellence. The environment management system at the refineries, pipelines and ma%or marketing installations are certified under 5! 13==1 standards !2 continues to be the market leader for testing of petroleum products by providing the largest network of testing facilities. Appro"imately 1.:= lakh samples were tested in the ,: static laboratories and 2, mobile labs. The 5ervices provided by ndian oil in the arena of 5AFF1TR and health are;

5afety audit of refineries, pipelines, marketing terminals *evelopment of onsiteMoffsite disaster management plant <AT!+ U<a0ard operabilityV studies 5afety Audit of lpg /ottling plants and terminals *epots

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!ccupational health monitoring C+ gradation of safety systems Bisk analysis studies 5afety Techni#ues for refineriesMpipelinesMmarketing installations +roviding assistance in fire fighting systems

3.$ PRODUCTS? )RANDS +B DT K 1) Take a #uick tourW 51BK! ndane ndian7!il AutoGas +remium Itra+ower N5wagat( Itra72are SER7O ndian!ilNs SERVO; ndian!ilNs Global /rand. SERVO is ndiaNs largest selling lubricant brand. SERVO range of lubricants en%oy approvals from ma%or !riginal 1#uipment $anufacturers ?!1$s@ including new generation cars. >,-== Betail !utlets and a countrywide network of SERVO 55ls and 55As /a0aar traders offer SERVO range of lubricants to customers. The SERVO range of lubricants is used in almost every application covering automotive, industrial and marine sectors. SERVO range of lubricants is fast emerging as a Global /rand with wide acceptance in CA1, $alaysia, $auritius, /angladesh, /ahrain, 5ri 6anka, Depal, Remen, Jenya, Juwait, <ighway Flagship Betail !utlets Fuels Aviation 6+Gas 5ervice

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/urkina Faso, Beunion

slands and other markets. SERVO has been

designated as a SUPER)RAND. SERVO has genuine oil tie ups with a wide range of companies like <yundai, $aruti, /a%a%, 6ancer. Anil Jumble, the ever dependable sporting icon is SERVO /rand Ambassador. Indane LP Ga( ndian!il ndane 6+Gas is used in 3= $illion homes as cooking fuel and commands over 3:. market share in ndia. ndane 6+Gas is marketed through a network of 3,-= ndane distributors. )idely used in commercial sectors like industries, hotels & restaurants, medical labs, etc. :9 ndane /ottling +lants are spread across the country with a combined bottling capacity of ,.99 $$T+A. Dew and convenient kg ndane 6+Gas cylinders introduced in rural and hilly regions for wider use by economically weaker sections. ndian!ilNs auto 6+G brand Autogas is the leader in the segment. $arketed through a network 3: stations out of an industry total of 1=, Auto 6+G *ispensing 5tations Ind"anO"+ A5"at"#n Se 5"2e $eets complete Aviation Fuel re#uirements of the *efense 5ervices and for over 9- *omestic and nternational airlines besides private aircraft operators. ndian !il Aviation 5ervice(s is 5! >==2 certified and entrusted with ) + refueling for national and overseas dignitaries. ndian!ilNs prompt, courteous and NDo7*elayN Aviation Fuel 5ervice has received accolades from ma%or customers. Always on call for providing services in e"igencies of war and peace. A&t# LPG

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Auto 6+G is a clean, high octane, abundant and eco7friendly fuel. Auto 6+G is obtained from natural gas through fractionation and from crude oil through refining. t is a mi"ture of petroleum gases like propane and butane. The higher energy content in this fuel results in a 1=. reduction of 2!2 emission as compared to 2DG. Auto 6+G is a gas at atmospheric pressure and normal temperatures, but it can be li#uefied when moderate pressure is applied or when the temperature is sufficiently reduced. This property makes Auto 6+G an ideal energy source for a wide range of applications, as it can be easily condensed, packaged, stored and utili0ed. )hen the pressure is released, the li#uid makes up about 2-= times its volume as gas, so large amounts of energy can be stored and transported in a compact manner. The use of Auto 6+G as an automotive fuel has become legal in ndia with effect from April 23, 2===, albeit within the prescribed safety terms and conditions. <itherto, the thousands of 6+G vehicles running in various cities have been doing so illegally by using domestic 6+G cylinders, a very unsafe practice. Csing domestic 6+G cylinders in automobiles is illegal. $arketing of Auto 6+G by ndian!il is done under the brand name LAuto GasL ndian!il has setup 129 Auto 6+G *ispensing 5tations ?A6*5@ covering -: cities across ndia. Auto 6+G impacts greenhouse emissions less than any other fossil fuel when measured through the total fuel cycle. 2onversion of petrol to Auto 6+G helps substantially reduce air pollution caused by vehicular emissions. The saving on account of conversion to Auto 6+G in comparison to petrol is about 3=.. 6ow filling times and the 3=. saving is a reason enough for a consumer to convert his vehicle to Auto 6+G

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GTRA PREMIUM ndian oil offers ITBA premium petrol and ITBA7 mile diesel which are the best your vehicle can get. ndia(s first >1 octane petrol. ITBA premium is reinforced with multifunctional additives including Gfriction /uster( available at nearly 2=== retail outlets nation wide. GTRA MILE ndian oil(s new generation high speed diesel with world A class additives has taken a leadership position in the market available at nearly 33== retail outlets nation wide. GTRA POBER ndian oil(s "tra power fleet card program is a complete fleet management solution for fleet ownersMoperators and corporate. ITBA power is smart card based fleet card program which facilitates cashless purchase of fuel and lubes from designated retail outlets of ndian oil through fle"ible prepaid and credit facilities.

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GTRA CARE The facilities in the swagat outlets is designed for but a P & P standards in the industry through retail outlet side and tank truck automation. Third party certification through bureau verities fortnight sampling thru #uality audit officers training through a professional agency for the dealer. ncentives available on fuel purchases in the form of loyalty points redeemable against fuel M lubes and other rewards. A9a d( and A22 ed"tat"#n( DD"(t"n2t"#n( and DateE ndian!ilNs Itra+ower wins 6oyalty 5ummit Award, 2-.=1.2==: ndian!il wins Betailer of the Rear 7 Bural mpact Award , 1-.=1.2==: ndian!il7 B&* 2entre Awarded the coveted ) +! G!6* $1*A6, 1:.1=.2==9 ndian!il wins !il ndustry 5afety *irectorate Awards, =3.1=.2==9

51BK! ac#uires prestigious $AD Global approvals, 23.=>.2==9 ndian!il bags the N$ost Admired Betailer of the RearN award, 1=.=>.2==9 ndian!il honored with X2 ! 1== Award 2==9N , 1=.=>.2==9 ndian!il bags 52!+1 Gold Trophy for /est +ractices in <uman Besources $anagement 2==-7=8, =8.=>.2==9 5A+ A21 A Awards for 2ustomer 1"cellence for ndian!il, 23.=:.2==9 ndian!il(s B&* 2entre gets special recognition for /ioremediation 23.=:.2==9 51BK! secures entry into D5F )hite /ook 7 <1 2ategory , 2,.=:.2==9 ndian!il, the only petroleum company as XThe $ost Trusted /randN in 1TNs /rand 1#uityNs annual survey, =1.=8.2==9 ndian !il B&* 2entre /ags Golden +eacock 1co7 nnovation Award, Dew *elhi, 4une 1,, 2==9

31

ndian!il, the only petroleum company as XThe $ost Trusted /randN in 1Ts /rand 1#uityNs annual survey, Dew *elhi, 4une =1, 2==9 ndian!il honoured with 521A +tak +ri0e, Dew *elhi, $ay 2>, 2==9 Dew *elhi, April ,=, 2==9

+anipat Befinery wins <aryana 5tate 5afety & )elfare Awards72==8, +TA +ro%ect, +anipat wins Golden 5afety Award, Dew *elhi, April 23, 2==9 /ringing your heart to work UDew *elhi, April 18, 2==9V ndian!il ?$auritius@ 6td. )ins N2entury nternational Puality 1ra AwardN, Dew *elhi, $arch 28, 2==9 ndian!il /ags Top <onours For )omen *evelopment

Dew *elhi, $arch 1,, 2==9 ) +5 /est 1nterprise Award for ndian!il February 2=, 2==9 A!* /ottling +lant bags /est Puality $anagement Award, February 1>, 2==9

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C/APTER 7 3 PETROL REFINERY Re6"n"n, Re6"n"n, 2a!a2"t. Re6"n"n, !e 6# 3an2e Te2-n#+#,.

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PETROL REFINERY Re6"n"n, The 5ervice provided by ndian oil in the arena of refining may be e"plored using the following links; Technical services !perations and maintenance Techno A 1conomic Feasibility M 5pecial studies /enchmarking Turn Around maintenance A planning monitoring and e"ecution nspection

Puality auditing and management $aterials management +ower plants Befinery production planning coordination and monitoring Re6"ne . Ca!a2"t. Installed capacit 6icensed capacity installed capacity as U2ertified by the managementV and actual production in respect of goods manufactured Fuel refinery n million metric tones p.a production in kilolitres UJ6V 6ight distillates middle distillates Aromatics a. /en0ene in metric tonner U$TV b. Toluence in $.T c. 6ubricants in $.T d. 5ulpher in $.T 1=-9== U1=-9==V 2,1== >==== ,==== U2,1==V U>====V U,====V 8.>= 8.>=

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The nstalled capacity is based on processing of neat middle east crude. Re6"ne . Pe 6# 3an2e 6icensed capacity, installed capacity Uas certified by the managementV and actual production in respect of goods manufactured F&e+ e6"ne . a. n million metric tones p.a. b. +roduction in kilolitres ?J6@ c. 6ight distillates d. middle distillates e. others A #3at"2( a. /en0ene in metric tonner ?$T@ b. Toluene n $.T c. 6ubricants n $.T d. 5ulphur in $.T Te2-n#+#,. ndian oil technology limited ? T6@ is a wholly owned subsidiary co. of ndian oil corporation limited. T6 is the technology marketing arm for the entire range of technologies developed at ndian oil(s B & * centre at Faridabad. The centre which was set up over three decades ago, has developed several technologies and technical e"pertise both in refining and lubricant sector. ndian oil has nurtured technology by nurturing human talent. This approach has worked well since the hydrocarbon sector is both technology and knowledge intensive. As a result the corporation is now in a position to offer a bou#uet of technologies, products, processes and solutions that are aimed at improving performance and profitability. 9-,2>, ?98,,-1@ 18,,33 ?1>,-8>@ >8,823 ?1==,,>8@ 12,3=3 ?>,,8>@ :.88 ?:.>=@ ,->3.91: ?,39>.,-9@ -,11,,>, ?X-,8::.:9=@ 1,8,:.1:= ?1,39-.11,@ YYYYYYYYY

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C/APTER 5 MINISTRY OF PETROLEUM AND NATURAL GAS AND PETROLEUM PRODUCTS T-e O ,an"Fat"#n F"nan2e (e2t# Ma =et"n, Se2t# M"n"(t . #6 Pet #+e&3 And Nat& a+ Ga(

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MINISTRY OF PETROLEUM AND NATURAL GAS AND PETROLEUM PRODUCTS T-e O ,an"Fat"#n The structure of ministry of petroleum A&t-# "t.? The ministry of petroleum and natural gas its authority under item no. -, list 1, seventh schedule, article 238 of the constitution of ndia. The item reads &Begulation and development of oil fields and mineral oil resources petroleum and petroleum products, other and substances declared by parliament by low to be dangerously inflammable.' Int #d&2t"#n? The ministry of petroleum and natural gas is situated in 5hastri /hawan, Dew *elhi and is entrusted with the responsibility of e"ploration and production of oil and natural gas, their refining distribution and marketing, import, e"port and conservation of petroleum products. O ,an"Fat"#n T ee?0 The ministry is headed by a cabinet minister and a minister state. The bureaucracy is headed by a secretary, under the secretary there is one additional secretary, four %oint secretaries, two advisers, four director, four deputy secretaries, two %oint advisers, one controller of account, nine under secretaries, two deputy directors and one senior analyst. The $inistry comprises of five different wings namely; 1.Administration 2. 1"ploration ,. Befinery 3. $arketing -. Finance

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F"nan2e Se2t# D"("n5e(t3ent( #6 ,#5e n3ent e@&"t. "n !&*+"2 (e2t# &nde ta="n,( The industrial policy statement of 23th 4uly 1>>1 contains the policy of Government regarding sale of shares of select public sector undertakings. The policy declaration states that in order to raise Besources and encourage wider participation a part of the government(s holding in the public sector would be offered to mutual funds( financial institutions, general public and workers. D"("n5e(t3ent( #6 (-a e( "n 6a5#& #6 e3!+#.ee( PSU<( As per announcements in the industrial policy statement the shares of +5Cs are to be offered to the employees A the employees are allotted the shares of the respective +5Cs with a view to ensure their sense of /elongingness and commitment for the improvement of these +5Cs. The cabinet committee on economic affairs has approved a proposal holdings to the employees of +5Cs where disinvestments has sub%ect to certain conditions employees of <industan petroleum corp. 6td. /harat petroleum corp.ltd. /ongaingaon Befinery and petrochemicals 6td. <ave been offered 2== shares each as per the above formula. n the case of oil and natural gas corp. 6td. ndian oil carp 6td. ndian oil carp 6td. !il ndia 6td. 1ngineers ndia 6td. & GA 6 shares have been offered by the +5Cs by way of ssued of new shares to the employees at a concessional price. Government of ndia has been disinvesting e#uity in +5Cs since 1>>1 A >2. The +5Cs in the petroleum sector have been attached in the disinvestments process since the beginning in 1>>1 A >2. also disinvested through public offer on a fi"ed price /asic D"("n5e(t3ent( C#33"(("#n +ursuant the commitment mode in the common minimum programmer the government 1stablished a *isinvestments commission in nitially disinvestments was done through the auction method. 5ubse#uently govt.,

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august 1>>8 and Beferred -= +5Cs to it. Till date. The commission has rendered advice an disinvestments of government e#uity from +5Cs of petroleum sector. Ki0 GA 6, !2, /B+6, 1 6 etc., STATUS REPORT OF OIL SECTOR PSU( Government of ndia have since decided to grant enhanced autonomy and delegation of powers under GDavratna( scheme to a few selected +5Cs, including !DG5, GA 6, !2, /+26 and <+26 in the oil sector. This includes, inter A alia power to incur capital e"penditure on purchase of new items or for replacement without any monitory ceiling the enhanced powers will, however, be sub%ect to among other things, the conditions that no financial support or contingent liability on the part of the government should be involved. 2A+ TA6 5TBC2TCB1 !F ! 6 +5C5 A5 !D ,15T $AB2< 2==: ?Bs. n 2rores@ 5l. Do. 1 2 , 3 8 9 : > 1= 11 12 1, 13 Dame of the +5C !DG2 !6 GA 6 !2 <+26 /+26 $B6 2B6 /B+6 66 16 /+ /iecco lawire /allmer lawrie Authori0ed capital 18==.== ,-=.== 12==.== ,===.== ,-=.== ,==.== ,==.== 12-.== 2==.== 2=.2= 8=.== 8=.== 8-.== 3=.== +aid up capital 132-.>, 132.89 :3-.8,:>.29 2=:.-1-=.== 13,.81 8:.>3 1>>.:2 1>.2= 1:.== 22.132.== 18.2> Govt. !f ndia <olding in . >8.1, >:.1, >8.-> >1.13 --.,= 88.2= -,.9--.=3 9-.-3 8=.== >3.== ->.-: -9.,9 YYYYY

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?Bs. n 2rores@ 5l. Do. 1 2 , 3 8 9 : > 1= 11 12 1, 13 Dame of the Turnover +5C 5ales !DG2 !6 GA 6 !2 <+26 /+26 $B6 2B6 /B+6 66 16 /+ /iecco lawire /almer lawrie Total 1-2,8 122=.1: 8>>.,9 8-,::.>> 1>=:>.=> 1=--,.88 23>8.1, ,>1:.98 :::.-: :8-.,8 28:.:: ,>=8.3213.>> -9,.11 12:-:.,Authori0ed capital ,,::.== 3>2.18 >,8.9> 2,31.32 1=81.81 9:3.8= 119.,1=:.>, ,=.-3 --.9> 111.81 ,=.9: =.=> 18.11 9-,9.88 +aid capital up Govt. !f ndia <olding in . 2=,3 2= 22=.13 ,= 81>.-18.3> 13=:.2, 3= 812.22 3= 3,2.8= ,, 1=2.1: 2>2.>, 2: 2>.=9 3.,8 ,,.:3 ,92.=3 ,= 2-.-3 ,= 72.8> Dil 13.21 -8>,.:8 YYYYY YYYYYY

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MARHETING SECTOR Reta"+ net9# = As on 1.3.2==1 there were 1:.2,> petrolMdiesel Betail outlets, 83=> 5J!M6*! dealership and -:,: 6+G distributorships operating throughout the country C# !&( 6&nd (2-e3e n order to help the 52M5T allot tees of petroleum product dealershipsMdistributorships, a scheme has been introduced ).e.f 6.3.1>>2 Cnder this scheme. !il marketing companies provide the allot tees with fully developed dealershipMdistributorship complete in all respects as also appropriate working capital loan at a reasonable rate of interest. LPG 3a =et"n, *. PSU( 6i#uefied petroleum Gas ?6+G@ is the most clean and convenient domestic cooking fuel, ts marketing was started in 1>-- A -8. There has been a #uantum %ump in the consumption of 6+G. The customer population of 6+G, which was about 19=7 6akhs on 1,3, >>1, has gone up manifold to about -9>7 lakhs as on 1.3.2==1 with the augmentation of production capacity at some of the e"isting sources and commissioning of new sources. 6+G production has increased from ,333 T$T in 1>>9 A >: to 813: T$T during 2=== A =1, which has almost doubled. *uring the year 2=== A =1 about 1=9 lakh D1) 6+G connections were released in the country and presently 6+G connections are a available on demand, across the counter in e"isting markets throughout the country. $!+ and DG has formulated a scheme for release of additional 6+G connections in the states over and above the normal entitlement in lies of surrender of corresponding kerosene allocation in line with average per capital consumption of the state of the number of families to which 6+G connections would be released Cnder the above 5cheme, the state govt., of A.+ had availed additional 1- lakh 6+G connection s and released to the women falling below

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the poverty line under this deepam scheme and the state govts, of $aharashtra and Ba%asthan have ailed : lakhs and 17 lakh connections respectively. Guidelines to be followed by the honorable $+s for issue of 6+G connections of $+ priority #uota to individual beneficiaries. t is hereby brought to the notice of the general public that at present this ministry is issuing := coupons of 6+G connections per #uarter to member of parliament of 6ok 5abha and Ba%ya 5abha and 1== coupons per #uarter to $+s who are member of standing committee and consultative committee attached to this ministry for issue of 6+G connection through the distributors <+2, /+2, /+, and !2. To avail of these 6+G 2onnections, the following guidelines have to be followed by the honorable $+s for issue of 6+G connections to individual beneficiaries; The beneficiary should be a resident of the constituency of the $+s The person should be in urgent need of a 6+G connection. <is name should be registered in the waiting list with a 6+G distributor. 6+G supplied should be used only for domestic purpose. M"n"(t . #6 Pet #+e&3 And Nat& a+ Ga( n regard to the gas coupons issued to $+s of Ba%ya 5abha and the nominated members of Ba%ya 5abha and 6ok 5abha the following guidelines have been incorporated besides guidelines ?ii@. ?ii@ & ?v@ ,mentioned at pharaoh above ; $embers of parliament of Ba%ya 5abha may release connection to any Besident of the 5tate which the $+?B5@ represents in the council of state?Ba%ya 5abha@. Dominated members of parliament ?6oka 5abha@ from Anglo A ndian community and also nominated members of parliament ?Ba%ya 5abha@ are eligible to ssue 6+G connections against $+ #uota of 6+G coupons anywhere in the country ).1.+. the first #uarter of the year 2==1.

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The list of persons to when 6+G connections have been issued by the <onble $+s of 6ok 5abha and Ba%ya 5abha in the current financial year are also available and may be taken on re#uest from the following oil marketing companies. For members of parliament ?6ok 5abha@ /harat petroleum corporation 6td., /harat /ha#an. 3 & - currimbhoy Boad, /allard 1state, +./. Do. 8:: $umbai A 3====1. For member of parliament ?Ba%ya 5abha@ ndian oil corporation 6td.,?$arketing division@ head office, ndian oil /havan, G7> ali yavar %ung $arg /andra ?1ast@ $umbai. POLLUTION CONTROL n order to protect the environment by minimi0ing pollution caused due to auto emissions the government has taken a variety of steps as detailed below; Pet #+? The lead content of petrol supplied in 3 metro cities was reduced from =.-8 gmM6tr. ?ma"@. To =.1-gmM1ltr?ma"@ effective 1.8.1>>3. This grade of low lead petrol with sulphur content of =.2=. was e"tended to Ta% Trape0ium effective 1.>.1>>- and entire country effective ,1.12.1>>8. The lead content in petrol was further reduced to =.=1,gmM6tr ?ma"@ and supply of unleaded petrol with reduced sulphur content of =.1=. commenced at select Betail outlets in 3 metro cities effective 1.3.1>>similarly, this grade of unleaded petrol was made available at select retail outlets in Ta% Trape0ium also with effect from 1.3.1>>- while rest of the retail outlets continued to supply petrol with =.-8gmMltr of lead and =.2=. of sulphur till switching over to low lead petrol effective 1.>.1>>- unleaded petrol was also made available at select retail outlets along the Badial routes emanating from 3 $etro cities and at tourist places. 5upply of unleaded petrol was e"tended to select outlets in statesMCT's capitals and other in ma%or cities effectives 1.8.1>>:.

-,

6ow 6ead petrol sales were stopped by supplying only unleaded petrol at all the retail outlets as per following; 1ffective Dational 2apital Territory ?D2T@ 1.>.1>>: Dational capital Begion ?D2B@ 1.1.1>>> $umbai 2.1=.1>>> 1ntire country 1.2.2=== The #uality of petrol was further improved by reducing /en0ene content to ,. from -. in 3 metro cities effective 1.3.2===9. The 5ulphur content has also been brought down from =.1. to =.=:-. as pet the following 1ffective D2B 1.3.2=== Jolkata 1.1=.2=== $umbai 1.1.2==1 2hennai 1.9.2==1 /en0ene content was further brought down from ,. to 1. as under D2T $umbai D2B D"e(e+? *iesel supplied in whole of the country till ,1.,.1>>8 was having sulphur content of 1. ?ma"@. 1ffective 1.3.1>>8 sulphur content was brought down to =.-. in 3 metro cities and Ta% Trape0ium. Ta% Trape0ium nner *elhi !uter *elhi, $umbai, Jolkata and 2hennai 1ntire country 1ffective 1.>.1>8 1-.:.1>>9 1.3.1>>: 1.1.2=== 1ffective 1.11.2=== 1.1.2==1 ,1.,.2==1

The sulphur content in <5* has further been reduced by commencing supply of <5* with =.=-. sulphur as detailed below. D2B?at select Betail outlets@ 1ffective 1.3.2===

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$umbai D2T D2B Jolkata, 2hennai and at select retail outlets n kolkata metropolitan area.

1.1.2==1 1.,.2==1 ,=.8.2==1 1.=9.2==1

+lan has been to supply only =.=-. sulphur <5* at all the Betail outlets in Jolkata metropolitan area with effect from 1.,1=.2==1. +rovision of pollution under check facilities at all retail outlets in the D2T; n order to facilitate checking the emissions from automobiles pollution under check facilities have been provided at all the Betail outlet in the D2T +rovision of 2 AT dispensers and sale of only 27T oil pre7mi"ed petrol in the D2T; n order to ensure supply of correct #uality and #uality of 27T oil companies have provided 27T dispensers at all the Betail outlets in the D2T and started supplying only 27T oil +re7mi"ed petrol to 27 stroke engine vehicles with effect from ,1.12.1>>:. +romotion of 2DG and 6+G as an alternative 1co7friendly auto7fuel. Becogni0ing 2DG and 6+G as environment friendly alternate auto7fuels, government is encouraging are of these fuel in automobiles. 2DG has already become popular as an 1co7friendly auto7fuel and it is being marketed mainly in *elhi, $umbai and Kadodara. The 2DG distribution network is being e"panded in *elhi government has also permitted use of 6+G in automobiles. IMPLEMENTATION OF ET/ANOL GASOLINE PILOT PRO1ECT 1thanol7gasoline pilot pro%ects have been commissioned at , location; 2 in $aharashtra at $ira% ?<a0arwadi@ & $anmad ?panewadi@ and in Cttar +radesh at /areilly?Aonla@. !n 1-.3.2==1. 22.8.2==1 and 23.8.2==1 respectively with a view to e"amine various issues relating to logistics.

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$arketing and distribution, economic viability etc., for use of 1thanol as an auto7ruel. POLICY FOR ALLOCATION OF SHO TO STATESIUNION TERRITORIES 5J! is an allocated product and the allocation is being made to the stateMCT's over the years on historical basis. !n account of the status of business activities of the erstwhile oil companies, the demand in a particular state, the facilities for distribution and other consideration, some states have been getting a higher per capital allocation of 5J! compared to other and the difference has been substantial. n 1>:-, a committee was appointed under 5hri /.2. $athur, As?Betd@ to suggest ways and means to reduce the disparity in the availability of 5J! among different stateMCT5. t was suggested by the committee that out of the additional availability of about 8. 1very year during those years, increase should be given to different states in three slabs, with the states at lower level getting higher increase. This procedure was followed till 1>>=7>1 on account of the gulf crisis, Do increase in allocation of 5J! could be made during 1>>17>2 and 1>>27 >,. <owever on account of persistent demand from the state governments, a ,. increase was given in the allocations since 1>>2.>, over the previous years for the states e"cept *elhi, Goa, Andaman and Dicobar, sland, *aman and *iu and chandigarh, where the annual allocation has been reduced. n order to narrow down the wide variation among the states in their per capital allocation?+2A@ Government provided a one time growth of :.-:. at national level during 1>>:7>> with this over all increase, the disparity among ma%ority of the states has been drastically reduced. The monthly allocation is being made on a uniform basis to all states e"cept 4ammu & Jashmir. The allocation to 4ammu and Jashmir is being

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made in two /locks i.e., 3=. n the summer block and 8=. in the winter /lock. Karious studies carried out by 1"pert agencies like the Dational council of applied 1conomic Besearch?D2A1B@, etc., have revealed that the supply of kerosene in the country as a whole is more than enough to meet the normal demand for cooking and lighting purposes in urban and Bural areas. t is reported that about 2-. of the kerosene supplies for the +etroleum *epartments gets diverted for black marketing for sale to unauthori0ed users and for adulteration of other petroleum products like petrol because of price differential. /y rationali0ing the system of distribution including the discontinuance of the supply of kerosene to 6+G consumers especially those with */2. $ore #uantities can be made available to the needy groups.

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C/APTER 6 1YOT/I SER7ICE STATION A PROFILE Int #d&2t"#n /"(t# . St# a,e tan=( and "t( 2a!a2"t. Se 5"2e

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1YOT/I SER7ICE STATION COMPANY LTD.8 A PROFILE +etrol /unks are indispensable to a nation. As petro has become and been primary source of fuel as mainly in transportation etc., /y and large it is the necessity of every individual. +etroleum products though not available naturally is available in the form of crude oil which in turn through various process in refineries becomes standard products. 5o produced petrol products are made outlets which are run by public or private individual or company under the clause control of government body to ensure honest and best service and it is popularly known as petrol /unks. +etrol bunks are not %ust retail outlets for selling petrol products. They also stand committed to provide some of the other basic needs of humble customers, such as maintenance of Air, water in vehicle and to maintain cleanliness of vehicle through water service /"(t# . #6 t-e F" 3 4R!T< 51BGK 21 5TAT !D 2!. 6T*. 5himoga is established as retail outlet of ndian oil corporation ltd. For marketing diesel, petrol, oil, and nature spirit. n the year 1>:: from owner name is NAN1ES/. The oil selection board conduct the survey wherever it feels the necessity for new service station. t also makes sure that giving license for establishing service station. After conducting the survey, advertisement will be given in the concerned state newspaper. There is >=.dg reservation for handicap, e"7 military, 52M5T, general category. n the advertisement they call applications only from the particular category of people. After receiving the applications an interview will be conducted by oil selection board. The person who is selected in the interview should establish the agency within the given period of time otherwise license will be cancelled.

->

The 6icense given may be terminated without assigning any reason by either party giving to the other in writing not less than ,= days notice to e"pire at any time of its intention to terminate it and upon the e"piration of any such notice license shall stand cancelled. St# a,e tan=( and "t( 2a!a2"t. 5teel tanks housed in a walled pit with a concrete base, they are carefully lowered to nestle of sand bags of pie gravel. This is the storage tanks of retail outlets. t has the capacity to store appro"imately 2==== ltrs of two tanks and also 1==== ltrs of two tanks. There will be separate tank for petrol. Dow a days &Fibre glass reinforced plastic tanks' are installing by corporations. The advantage of these tanks over steel tank is that they are anti corrosive, totally unaffected by soil, water etc., and it has the longer life than steel tanks, also being leak proof they are environment friendly. SER7ICES RENDERED IN 1YOT/I SER7ICE STATION L&*e #"+(? 5ome vehicles need oil with petrol 4R!T< service station co. ltd., provides motor oil. Two stroke oil, 155! oil etc., vehicle owners can opt whichever they need for this services they charge reasonable price. The petroleum products which are available in service station are I7 Tra premium , *iesel, +etrol, I7mile, 5uper *iesel, *istilled water and all servo lubricants. n 4yothi service station there are totally eight petrol and diesel pumps they are, one *iesel pumps, two petrol pumps, two I7tra super pumps and three I7tra premium pumps. )+#9 2-e2= &!? /low will be checked in 4R!T< service station co. ltd., for any vehicles A it is fully free of cost. This service will be given to nearly -= A 1== vehicles daily.

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C ed"t and #t-e 6a2"+"t"e(; The credit facilities are also available to the old customers and regular heavy vehicle owners. The other facilities, which are provided in 4yothi service station to its workers, are once in a year the bonus is provided to its employees in times of festival and etc. There is a reservation in %obs to one handicap employee. Pa ="n, 6a2"+"t. +arking facility is also one of the services given by 4yothi service station. <eavy motor vehicle owner can also park their vehicles in the 4yothi service station GB!55 +B!F T 1ABD1* /R 4R!T< 51BK 21 5TAT !D

Rear 2==- A =8 2==8 A =9 2==9 A =:

Gross +rofit in Bs 9,-1,:=1 8,8,,:9> 9,2,,==3

81

C-a!te 0$ CONSUMER SUR7EY ANALYSIS Int #d&2t"#n S& 5e. Ana+.("(

82

CONSUMER SUR7EY ANALYSIS Int #d&2t"#n; 5himoga is a city head #uarters and an important town in Jarnataka. 5himoga is one of the ma%or towns of industrial area. 5himoga city is having rich natural wealth and it is an industrial centre in Jarnataka. This city has a river and dam for agricultural irrigation. n this area paddy, sugarcane, areca nut, coconut, ragi etc., are grown by utili0ing available natural resources and hence it has good marketing structure. According to survey, the population of 5himoga is in lakhs. 5himoga has a good market for both consumer and industrial products and also for agricultural product. SUR7EY ANALYSIS *ue to time constraint out of the total consumer of petroleum 1== sample respondents were selected and contacted for getting the desired information. All respondents and residents of 5himoga.

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1. O22&!at"#n; The following table shows the occupation of respondents so selected and interviewed. !ccupation /usinessmen 1mployee 5tudent !thers Total Do. !f respondents 3= 23 18 2= 1== 5ource; 5urvey result +ercentage 3= 23 18 2= 1==

Inte ! etat"#n; To make the sample more representative the respondents of various occupational groups were included in the sample. They are /usinessmen, 1mployees, 5tudents and others. Among this 3=. are of businessmen, 23. are of employees, 18. are of students and 2=. are of others included. Totally in this survey there are 1== respondents.

83

Graph showing the occupation of respondents so selected and interviewed

40 40 35 30 24 25 20 15 10 5 0 Businessmen Employee Student Others 16 20

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2. In2#3e , #&! The following table shows the income group of respondents ncome +1B month /elow -=== -=== 71==== 1==== A 1-=== 1-=== & above Total Inte ! etat"#n The above table reveals that 8. of respondents interviewed were below -=== 6ower class and 29. of them belong to -===71==== groups. i.e., middle class and ,1. of them belong to 1====71-=== group and ,8. of them belong to above 1-=== group petroleum is usually consumed by middle and upper class people rather than lower class people. Do. !f Bespondents 8 29 ,1 ,8 1== +ercentage 8 29 ,1 ,8 1==

88

G a!- S-#9"n, t-e In2#3e , #&! #6 e(!#ndent(

Below 5000 6% 15000 & above 36% 5000 -10000 27%

10000 15000 31%

89

C. CONSUMERS 7ISIT TO SER7ICE STATION This is conducted to know that how often the consumers visit the services station *ays *aily )eekly Fortnightly $onthly Total Inte ! etat"#n This chart shows a clear picture about the consumers visit to service station Among 1== respondents the -= respondents meet the service station daily, and ,= respondents meet weekly, and 13 respondents meet fortnightly, and =8 respondents meet monthly. D!. !f Bespondents -= ,= 13 =8 1== +ercentage -= ,= 13 =8 1==

8:

G a!- S-#9"n, 2#n(&3e ( 5"("t t-e (e 5"2e( (tat"#n

Fortnightly 1 %

!onthly 6%

Daily 50% Weekly 30%

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D. FACTORS CONSIDERED B/ILE PURC/ASING INDIAN OIL? +etrol being a most needed item. t is purchased after considering #uality service, Bate and other reasons. The following table shows the factors influencing the buying behavior of the consumers of petroleum. FACTORS CONSIDERED Puality 5ervice Bate !ther Beasons Total Inte ! etat"#n The factors which considered while purchasing the ndian !il are the above table reveals that 3=. of respondents depend upon the #uality of the product, ,-. of respondents depend upon the service which is provided by the service station and 1-. of respondents depend upon the rate, 1=. of respondents depend upon the other reasons. This chart provides us a clear picture about the factors considered while purchasing the ndian oil. N#. #6 RESPONDENTS 3= ,11= 1== Pe 2enta,e 3= ,11= 1==

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G a!- (-#9"n, t-e 6a2t# ( "n6+&en2"n, t-e *&."n, *e-a5"# #6 t-e 2#n(&3e ( #6 Ind"an O"+

0 0 35 35

30

25

20 15 15 10 10

0 "#ality $ervi%e &ate 'ther &ea(on(

91

E. SATISFACTION A)OUT 1YOT/I SER7ICE STATION., This table shows how many respondents are satisfied with the service offered by 4yothi service station. B15+!D51 1"cellent Good Fair /ad Total Inte ! etat"#n This table shows how many respondents are satisfied with service offered by the service station. Totally 1== respondents shared their opinion about the service station among them -2. of respondents gave their opinion that the service provided by the service station is e"cellent and 23. of respondents e"press their opinion as good. And 18. of fair, and :. of bad. D!. !f Bespondents -2 23 18 =: 1== +ercentage -2 23 18 =: 1==

92

G a!- S-#9"n, t-e (at"(6a2t"#n #6 e(!#ndent( 9"t- t-e (e 5"2e #66e ed *. 1.#t-" (e 5"2e (tat"#n

60

50

30

52

20 2 10 16 ) 0 *+%ellent ,ooFair Ba-

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C/APTER ; S&,,e(t"#n( and C#n2+&("#n(

93

SUGGESTIONS? )hile conducting the survey, many respondents have given their suggestions for the improvement of ndian oil. 5ome of the suggestions that may help oil are as follows; The #uality of ndian oil is to be improved to a ma"imum e"tent. The mode of transportation adopted should be improved so that the cost of transportation can be reduced. The company has to respond to the dealer(s must immediately after receiving the order and also the co. should avoid their short supply of petrol. Beasonable incentives should be given to pump boys which helps in reducing labour turnover. +ump boys should give more concentration on the measurement of satisfy the customer.

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C#n2+&("#n( +etrol bunks are indispensable to the progress of the nation. +etrol or diesel is the primary source of fuel mainly in transportation. +etroleum have a high potential market in ndia. This is done to the fact that 9-. of the population are the users of petroleum. This means that 2-. of population are non A users of petroleum products. T-e 6#++#9"n, a e t-e 2#n2+&("#n( t-e e #n d a9n 6 #3 t-e 2#n(&3e (? +etroleum is a very common and popular product and is used by middle and high class of people . petroleum is a costly item, the circumstances lead to their conclusion that the ma%ority of respondents who use are from middle and upper income groups. There are no respondents who did not heard about ndian oil which is very popular in market. The respondents also by other brands like <+26, /+26, etc., Among then !2 is largely used by consumer and it is a market leader.

98

'UESTIONNAIRE &5urvey on 2onsumers Attitude Towards' &$arketing of ndian !il' *ear sirM$adam am a student of Final year /./.$., 5ahyadri arts & commerce college shimoga. have undertaken a pro%ect work entitled & $arketing of e"tra premium servo ndian oil' a case study on 4yothi 5ervice station, shimoga. <ence this #uestionnaire has been prepared for collecting data from you. 5o, re#uest you to kindly spare your valuable time to go through and fill in the #uestionnaire. 5andesh.g.s Dame Age 5e" ; ; ; a@ /usinessman c@ 5tudent 2. $onthly ncome a@ /elow7-===U V c@ 1====71-=== ,. 3. a@ Res U V b@ -===71=== U V U V b@ Do U V U V d@ 1-===7above U V b@ Four )heeler d@ !thers U V U V U V U V U V b@ 1mployee c@ !thers U V U V Address ;

1.!ccupation

*o you own a vehicleQ which vehicle do you ownQ a@ Two )heeler c@ <$K

-.

)hich fuel engine vehicle do you ownQ

99

a@ +etrol 8. 9. :. a@ Res a@ Res a@ *aily c@/iweekly >. a@ Puality c@ Bate 1=. stationQ a@ Res 11. 12. a@ Res U V U V U V U V U V

U V b@ Do b@ D! U V U V U V

b@ *iesel U V U V b@ )eekly d@ $onthly b@ 5ervice U V

U V

<ave you heard about 4yothi service station in 5himoga Are you a regular customer of 4yothi 5ervice stationQ <ow often do you visit 4yothi 5ervice 5tation U V U V U V

)hy do you prefer 4yothi service stationQ d@ !ther Beasons

Are you satisfied with the measurement given by 4yothi service b@ Do b@ Do U V U V

Are you satisfied with the service boysQ Any complaint would you like to make against 4yothi service station. YYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYY

1,. <ow much mileage does your vehicle is giving presentlyQ YYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYJmph. 13. Are you satisfied by your vehicle performance a@ Fully satisfied c@ 5atisfied 1-. U V U V b@ +artially satisfied U V d@ Cn7 satisfied. U V

5uggestions, if anyQ YYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYY

Thanking you +lace; *ate; 5ignature

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)"*+"#, a!-.

$arketing management 1ncyclopadea $aga0ines Dews +aper 4ournals 6i#uified +etrolium Gas $anuals website; www.indianoil.co.in

7 7 7 7 7

5haker /ritanica and Amenicana Facts for you economic times Ki%aya Times /usiness )orld

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