INTRODUCTION

Introduction of HRM:
Management is basically concerned with the performance of planning,
organizing, directing, co-ordinating and controlling, which, in fact, are its main
functions. Management is also regarding as the art of getting things done through
others. It is not possible for any individual to do all the work himself. The work is
always shared with others. In a household, for example, the head of the house the
father earns for the family maintenance. The lady of the house manages the kitchen
and so on. Similarly, in a bank there are different individuals to look after cash,
savings bank account, fixed deposit, current account, recurring deposit account and so
on. The overall control lies with the bank manager. Thus, it becomes clear that the
work is assigned to many in any work place and responsibilities are fixed on them.
The person assigning the work, i.e., the manager, knows how to get things done
through others, i.e., subordinates. A manager who is unable to make his subordinates
work cannot be a successful manager.

The human resources of an organization consist of all people who perform its
activities. Human resource management (HRM) is concerned with the personnel
policies and managerial practices and systems that influence the workforce. In broader
terms, all decisions that affect the workforce of the organization concern the HRM
function.
The activities involved in HRM function are pervasive throughout the organization.
Line managers, typically spend more than 50 percent of their time for human resource
activities such as hiring, evaluating, disciplining, and scheduling employees. Human
resource management specialists in the HRM department help organizations with all
activities related to staffing and maintaining an effective workforce. Major HRM
responsibilities include work design and job analysis, training and development,
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recruiting, compensation, team-building, performance management and appraisal,

worker health and safety issues, as well as identifying or developing valid methods for
selecting staff. HRM department provides the tools, data and processes that are used
by line managers in their human resource management component of their job.
Definitions of the terms Management:
A few definitions of the term Management, offered by experts, have been given
below:
To manage is to forecast and plan, to organise, to command, to co-ordinate, and
to control - Henry Fayol.
Management is what a manager does Louis Allen
Management is the art of knowing exactly you want your men to do and then
seeing that they do it in the best and the cheapest way F.W.Taylor.
WHAT IS THE FOCUS OF HRM DEPARTMENT?
The HRM focus should always be maintaining and, ideally, expanding the customer
base while maintaining, and ideally, maximizing profit. HRM has a whole lot to do
with this focus regardless of the size of the business, or the products or services you
are trying to sell. (Dr. James Spina, former head of Executive Development at the
Tribune Company). HRM is involved in managing the human resources with a focus
on expanding customer base that gives profit to the company. The bottom line of the
company is the focus of the HRM department as well as the function.
A growing body research shows that progressive HRM practices have a significant
effect on corporate bottom-line and middle-line performance. The positive effect on

financial performance, productivity, product and service quality, and cost control are
documented by researchers.
High-performance work systems (HPWS) is a term used to describe a collection of
HR practices or characteristics of HR systems designed to enhance employees
competencies so that employees can be a reliable source of competitive advantage. A
summary of the research on HPWS indicated that a one standard deviation of
improved assessment on a HPWS measurement tool increased sales per employee in
excess of $15,000 per employee, an 8 percent gain in labor productivity.
THE ACTIVITIES OF HUMAN RESOURCES MANAGEMENT
The activities performed by HRM professionals fall under five major domains:

(1) Organizational design,

(2) Staffing,
(3) Performance Management and Appraisal,
(4) Employee and Organizational Development, and
(5) Reward Systems, Benefits and Compliance
Acquiring human resource capability should begin with organizational design and
analysis. Organizational design involves the arrangement of work tasks based on the
interaction of people, technology and the tasks to be performed in the context of the
objectives, goals and the strategic plan of the organization. HRM activities such as
human resources planning, job and work analysis, organizational restructuring, job
design, team building, computerization, and worker-machine interfaces fall under this
domain.

Recruitment, employee orientation, selection, promotion, and termination are among

the activities that fit into the staffing domain. The performance management domain
includes assessments of individuals and teams to measure, and to improve work
performance. Employee training and development programs are concerned with
establishing, fostering, and maintaining employee skills based on organizational and
employee needs.
Reward systems, benefits and compliance have to do with any type of reward or
benefit that may be available to employees. Labour law, health and safety issues and
unemployment policy fall under compliance component.
MAJOR TRENDS AFFECTING HRM
The following trends have an effect on human resource management function and
department. The importance of HRM increases due to some of them and the practices
of HRM are affected to some extent due to some of them.

1. Increased globalization of the economy.

2. Technological changes and environmental changes.
3. The need to be flexible in response to business changes.
4. Increase in litigation related to HRM.
5. Changing characteristics of the workforce.
THE IMPORTANCE OF HRM MEASUREMENT
Many HRM systems and activities are not subjected to systematic measurement.
Many organizations do not assess either the short- or long-term consequences of their
HRM programs or activities. A recurring theme of the book is that measurement and
accountability are key components to organizational effectiveness and competitive
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advantage. Good measurement, allied with business strategies, will help organizations
select and improve all of their HRM activities and provide a much stronger
connection between HRM activities and organizational effectiveness.
Stanford University professor Jeffrey Petter considers measurement to be one of the
keys to competitive advantage. His book Competitive Advantage through People cites
measurement as one of the 16 HRM practices that contribute the most to competitive
advantage.
A new book entitled The Workforce Scorecard by Professors Mark Huselid, Brian
Becker, and Dick Beatty extends research on the "balanced scorecard" to a
comprehensive management and measurement system to maximize workforce
potential.
COMPETITIVE ADVANTAGE AND HRM
Competitive Advantage refers to the ability of an organization to formulate strategies
that place it at favorable position relative to other companies in the industry. Two
major principles, namely customer value and uniqueness, are relevant for gaining
competitive advantage.
Competitive advantage occurs if customers perceive that they receive more value
form their transaction or relationship with an organization than from its competitors.
HRM needs to make efforts to ensure that all employees are focused on understanding
customer needs and expectations.
The second principle of competitive advantage derives from offering a product or
service that your competitor cannot easily imitate or copy.
The status of HRM is improving relative to other potential sources of competitive
advantage for an organization. Professor Pfeffer notes that "traditional sources of
success (e.g., speed to market, financial, technological) can still provide competitive

leverage, but to a lesser degree now than in the past, leaving organizational culture
and capabilities, derived from how people are managed, as comparatively more vital."
For success in 21st century, HRM activities must be (1) responsive to a highly
competitive marketplace and global business structures, (2) closely linked to business
strategic plans, (3) jointly conceived and implemented by line and HR managers, and
(4) focused on quality, customer service, productivity, employee involvement,
teamwork, and workforce flexibility.
HRM in the New Millennium
Human Resources have never been more indispensable than today. The competitive
forces that we face today will continue to face in the future demanding organizational
excellence. In order to achieve this extended quality, organizations need to focus on
learning, quality development, teamwork, and reengineering. These factors are driven
by the way organizations implement things and how employees are treated.
1. HR can help in Dispensing Organizational Excellence: To achieve this paradigm
shift in the organization excellence there is a need for organizations to reform the way
in which work is carried out by the Human Resource Department. By designing an
entirely new role and agenda that results in enriching the organizations value to
customers, investors and employees, HR can help in delivering organizational
excellence. This can be carried out by helping line managers and senior managers in
moving planning from the conference room to the market place and by becoming an
expert in the way work is organized and executed.
HR should be a representative of the employees and should help the organization in
improving its capacity for change. HR will help the organizations in facing the
competitive challenges such as globalization, profitability through growth,
technology, intellectual capital, and other competitive challenges that the companies
are facing while adjusting to uncontrollably challenging changes in business
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environment. The novel role of HR is to rapidly turn strategy into action; to manage
processes intelligently and efficiently; to maximize employee contribution and
commitment and to construct favorable conditions for flawless change.
2. Human Resource should be a Strategy Partner: HR should also become a partner in
strategy executions by propelling and directing serious discussions of how the
company should be organized to carry out its strategy.
Creating the conditions for this discussion involves four steps. First HR need to define
an organizational architecture by identifying the companys way of doing business.
Second, HR must be held responsible for conducting an organizational audit. Third,
HR as a strategic partner needs to identify methods for restoring the parts of the
organizational architecture that need it. Fourth and finally, HR must take stock of its
own work and set clear priorities. In their new role as administrative experts they will
need to shed their traditional image and still make sure all routine work for the
company is done well.
3. HR Accountability Should be Fixed to Ensure Employee Commitment: HR must be
held accountable for ensuring that employees feel committed to the organization and
contribute fully. They must take responsibility for orienting and training line
management about the importance of high employee morale and how to achieve it.
The new HR should be the voice of employees in management discussions.
The new role for HR might also involve suggesting that more teams be used on some
projects or that employees be given more control over their own work schedules. 4.
The New HR Must Become a Change Agent: The new HR must become a change
agent, which is building the organizations capacity to embrace and capitalize on
change. Even though they are not primarily responsible for executing change it is the
duty of the HR manager to make sure that the organization carries out the changes
framed for implementation.
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5. Improving the Quality of HR: The most important thing that managers can do to
drive the new mandate for HR is to improve the quality of the HR staff itself. Senior
executives must get beyond the stereotypes of HR professionals as incompetent
support staff and unleash HRs full potential
6. Change in Employment Practices: The balance sheet of an organization shows
human resource as an expense and not as a capital. In the information age, it is
perceived that the machines can do the work more efficiently than most people
however; technology to work is dependent on people.
The challenges for Employment Practice in the New Millennium will require that
there should be strategic involvement of the people and labour-management
partnerships as they both have to take organization ahead.
7. Benchmarking Tool must be mastered by HR Professionals: HR professionals must
master benchmarking, which is a tool for continuous improvement- directing the
human side associated with the strategic path adopted by the organization. Through
this, HR department will start appreciating the changes happening within and outside
the environment while expanding the knowledge about how to add value to decision
making at the highest level of the organization.
8. Aligning Human Resources to Better Meet Strategic Objectives: Too often
organizations craft their strategy in a vacuum. Some organizations dont even include
key people during strategy formulation resulting in lacunae between the actual
problems and the solutions implemented- as critical inputs are not sought from those
individuals who are supposed to implement the new strategies.
Introduction to recruitment and selection
Recruitment and selection are two different activities. The meaning of recruitment is
the mechanism of making interest for the people to apply for work and selection is the
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final decision of a specific candidate for the particular position. For any organization
it is important that the people who are going to be hire must have abilities, talent and
perspective that you need. In long term phase organization needs those types of
employees who have the abilities to face the challenges and can continue learning. So
like this there are more chances for the organization to get the competitive edge. Also
for the long term aspect approach, proclivity and competency is more important than
present command and knowledge.
While in the process of selection on judgment the individuals is used to forecast in
assuring favourable outcomes on the job. As these are all assumptions and there is no
guarantee that these predictions are unmistakable so there are always chances of
misjudgments. There are basically two kinds of decision error which may happen in
any electing process which are defined as follows. False positive or mistaken
acceptance: where candidate are elected but prove to be incompetent.
False negative or mistaken rejections: where candidate who were competent and
capable and could perform better are refused.
Organizations while employing the individuals are more worried about false positives
because as a result it causes inadequate performance and costly misjudgment. In these
type of organizations it can be said that if they increase their level of entry condition
so that to decrease the possibility of false positives. As a result of this standard the
candidates who are actually competent will be selected and the applicants who do not
fulfill the requirement will be refused.
The Selection judgments play a major role for success in any organization. As taking
the wrong decisions while selecting are always subject to huge loss for the
organization. It is necessary for the organization that it has a higher quality of
selection process so that it could accomplish more suitable results in all. As the
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demand for the multi proficiency variable work force and joint effort is rising,
selection has come to be a lesser element for hiring those applicants who are fully
specialized in one area. Immediate aptitude and empiricism may be lesser
considerable than intending to learn, adaptability and potential to work in a team.
There are basically two types of recruitment. These are called internal recruitment and
external recruitment. Internal recruitment is basically when recruitment takes place
from the present employees and when recruitment takes place from excluding present
employees, it is known as External Recruitment.
Informal Methods:
Advantages:

The existing employees have already the information for the organization.
That's why it is very easy for them to adjust in the organizational culture
because they are already part of the organization but new candidates will take
time to adjust in the new environment. It means that organization has to arrange
training session for the new clients which result increase the extra cost for the
organization.

The positions will be occupied quickly. This helps to fill the positions promptly
and to run the operations smoothly.

Candidates will be also well known with the organization, it is relief for the
organization to save time and spend less for then starting phase which is
induction.

Bring new ideas and views.

Less employee training and development especially if they have been learned
elsewhere.

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Employee can illustrate a novelty for the business look while hiring them from
outside.

When you hire an employee through informal method of recruitment and

selection then coordination and team work becomes more vital because the
person you are going to hire is familiar to the organization, co-workers or the
employees who referred him. This will result positively against any given task
or assignment.

Disadvantages:

Make use of internal channels only which restricts the option to hire from
outside their may be better employees options available in the outside market.

Some times it is really important to take new blood to spread present ideas,
information and devotion but through informal method it becomes difficult for
the potential candidates to get information about such particular positions and
as a result we may not hire the best candidate having rigorous qualifications,
skills and expertise. Many potential candidates are unable to apply against such
kind of positions because these positions are not publicly advertised.

For many organizations this typical manner caused to create professional

jealously among the co workers on the promotion of one individual.

In informal methods organization usually rely on employee's links and

references and they do not properly judge their needs and their personal
objectives. So there can be a miss match between the objectives of the
individual and the firm. This clash of objectives would result as a long term
loss for the organization.

There is no certainty about the employee to whom the organization is going to

choose for the services will be best fit in the environment and can prove its

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abilities and skills in the organization because the individual who is selected
not assessed in a structured way.
Recruitment Agencies and their Advantages and Disadvantages:
There are many private employment agencies doing outsourcing and who are
registering for employment, short listing the candidates by their skills and
qualifications. But the final decision is taken by the representative of the organization.
In few cases the representative also sits on the panel for the final selection of the
employee. In the process of outsourcing while there is already a processing and short
listing by the employment agencies helps the organization to save time and it is
cheaper because while recruiting the employee by the indirect method there are more
expenditures as the organization do this by their selves. To some extent it can be said
that the identity of the organization will not be disclosed which helps to be saved by
the unnecessary applications. On the other hand it is also important that organization
may loose those persons in the short listing who are capable and the organization
representative would like to meet with them.
There is collection of large pool of applications and candidates will be chosen among
them. It means that all talent will be gathered at one place. On the basis of
competence, the employees can be short listed which then be pass through in the final
process and unnecessary applicants will be eliminated. These candidates are those
how can contribute a lot for the effectiveness and efficiency of the organization. These
people who are running these agencies are experts in the human resource field and
better know the ideal candidate through the process of recruitment and selection. The
candidates which they refer to the organization, the organization more rely on these
candidates because organization realizes that these are the best pool of candidates
which make their organization more competitive. The recruitment agencies are very
effective in hiring the top position.
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The recruitment industry has four main types of agencies: Head hunters for
professional and executive recruitment, employment agencies, and recruitment
websites and in house recruitment but we will discuss only the hiring through
recruitment agencies.
The recruitment agencies increased the extra cost of organization which badly affect
on the overall profitability of the organization because the advertising agency has to
go through in all processes, every process has its own cost and all cost has to bear by
the company. That's why this method is as such not suitable for the organization
because it affect the financial sustainability of the organization. So, it can be said that
this method is not cost effective.
At the end, it can be concluded that recruitment and selection through informal
method and through recruitment agencies can be used by the organization in the
different situation to fulfill its human resource requirement. The informal methods are
very useful for hiring the clerks because in this way organization can save its cost
which can be used at somewhere else at more productive purpose. The organization
has not to make much effort on it because it has not to pass though the whole human
resource recruitment and selection processes. On the other way, the hiring through
recruitment agency will be very helpful for hiring large pool with quality and
effectiveness. Shorty, the organization used both methods in different situation for
hiring the quality candidates.
RECRUITMENT AND INTRODUCTION
The overall aim of the recruitment and selections process is to obtain the right number
and quality of employees required to satisfy the human resources need of the
organization.

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The four stages of recruitment and selection are:

1.Defining requirements: preparing job descriptions and specification, deciding
terms and conditions of employment,
2.Attracting candidates: reviewing and evaluating alternative sources for applicants,
inside and outside the organisation, advertising, possibly using agencies and
consultants.
3.Selecting candidates: sifting applications, interviewing, testing, assessing
candidates, employment,taking references, employment contract
4.Introduction- induction: Introduction to the work and the colleagues, to the
organisation and its main objectives, to terms of employment.
Managing People - Introduction to Recruitment
Author: Jim Riley Last updated: Sunday 23 September, 2012
People management - Recruitment (introduction)
Recruitment and selection is the process of identifying the need for a job, defining the
requirements of the position and the job holder, advertising the position and choosing
the most appropriate person for the job. Retention means ensuring that once the best
person has been recruited, they stay with the business and are not poached by rival
companies.
Undertaking this process is one of the main objectives of management. Indeed, the
success of any business depends to a large extent on the quality of its staff. Recruiting
employees with the correct skills can add value to a business and recruiting workers at
a wage or salary that the business can afford, will reduce costs.
Employees should therefore be carefully selected, managed and retained, just like any
other resource
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Introduction said by J.Jayasankar:

Certain organizations may have difficulty in finding efficient persons for various
jobs. On the hand, there are organizations with which many candidates would like to
be associated. It is devoted to the discussion of various aspects relating to the
recruitment of candidates. Once a decision is taken on the source of recruitment
whether it is internal or external, the next step is to proceed with selection process.
Meaning and definition of recruitment:
Recruitment is the process of finding suitable candidates for the various post in an
organization.
According to Edin B.Flippo, Recruitment is the process of searching for
prospective employees and stimulating them to apply for job in the organization.
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Definition of selection:
According to Dale Yoder, Selection is the process in which candidates for
employment are divided into two classes, those who are to be offered employment and
those who are not to be.

Sources of recruitment:
Internal source
External source

Internal source:
Transfer
Promotion
Recommendation by existing employees

External source:
Advertisements
Employment exchanges
Private employment consultants
Campus interview
Rival firms
Unsolicited applicants,etc.

Factors determining recruitment:

Reputation of concern
Salary and other monetary benefits offered
Terms and conditions of service
Nature of the vacancy
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 Government reservation norms

Stages involved in selection of candidates:

Receiving application forms
Scrutiny
Preliminary interview
Tests
Final interview
Checking references
Medical examination
Appointment
Probation
Confirmation of service

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OBJECTIVES:
To undergo in-depth study about the recruitment and
selection made in the company.
To find out the different kinds of recruitment and selection
done among the employees of different age groups.
To study about the effects of recruiting more numbers of
employees in the company
To learn the ways the organization deals to handle selection
and recruitment of employees.
To study how women are selected in this concern

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COMPANY PROFILE

20

INDIAN AUTO GAS COMPANY LTD.

EXECUTIVE SUMMERY FOR INVESTORS

Date: 31/05/2014
1. INTRODUCTION:

Liquefied petroleum gas, also called LPG, simply propane or butane, is a flammable
mixture of hydrocarbon gases used as a fuel in heating appliances and vehicles. It is
increasingly used as an aerosol propellant and a refrigerant, replacing chlorofluorocarbons in an
effort to reduce damage to the ozone layer. When specifically used as a vehicle fuel it is often
referred to as autogas.
Predominantly in Europe and rural parts of many countries, LPG can provide an alternative to
electricity and heating oil (kerosene). LPG is most often used where there is no access to piped
natural gas. LPG can be used as a power source for combined heat and power technologies
(CHP). CHP is the process of generating both electrical power and useful heat from a single fuel
source. This technology has allowed LPG to be used not just as fuel for heating and cooking, but
also for de-centralised generation of electricity. LPG can be stored in a variety of ways. LPG, as
with other fossil fuels, can be combined with renewable power sources to provide greater
reliability while still achieving some reduction in CO2 emissions.

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Auto LPG
When LPG is used to fuel internal combustion engines, it is often referred to as autogas or auto propane.
In some countries, it has been used since the 1940s as a petrol alternative for spark ignition engines. In
some countries, there are additives in the liquid that extend engine life and the ratio of butane to
propane is kept quite precise in fuel LPG. Two recent studies have examined LPG-fuel-oil fuel mixes and
found that smoke emissions and fuel consumption are reduced. Its advantage is that it is non-toxic, noncorrosive and free of tetraethyl lead or any additives, and has a high octane rating (102-108 RON
depending on local specifications). It burns more cleanly than petrol or fuel-oil and is especially free of
the particulates from the latter. LPG has a lower energy density than either petrol or fuel-oil, so the
equivalent fuel consumption is higher.
Autogas enjoys great popularity in numerous countries and territories, including: Australia, Croatia,
Lithuania, the European Union, Hong Kong, India, the Philippines, the Republic of Macedonia, South
Korea, Serbia, and Turkey. It is also available at larger petrol stations in several countries. In the Republic
of Armenia, for example, the transport ministry estimates as many as 20 to 30% of vehicles use autogas,
because it offers a very cheap alternative to both diesel and petrol, being less than half the price of petrol
and some 40% cheaper than diesel. The recent rises in oil-derived fuel prices has significantly increased
the difference.

LPGs domestic uses can never be ignored. It has played a revolutionary role when it comes to changing
the face of domestic fuels used for heating and cooking.
1.

There are still many rural areas where they have no access to a central gas pipeline or a

gas network. These areas and even many in the urban sectors are using LPG as an alternative
source of fuel. The main reason behind this is easy accessibility, low cost per unit and the
environment friendly properties of LPG.
2.

The main domestic uses of LPG are with respect to lighting, refrigeration, cooking and

most of all heating. It is as good for powering standalone stoves and huge cooking stoves. It has
been found to be cost effective and hence is used in large scale cooking also.
3.

LPG is also used as a backup at places where people rely on solar energy. It has so

happened that at times, due to lack of sunlight or during the cold season, renewable sources of
energy like sunlight have not been helpful. In these cases, LPG is used as a standby or secondary
source of fuel.

22

4.

Other household or domestic uses of LPG include water heaters, dishwashers, space

heaters and even incinerators.

5.

Since it is considered to be eco-friendly, LPG is also used to run generators. It is

considered safe enough to be used even in closed spaces.

6.

One main reason behind LPG being a popular choice of fuel in domestic uses is that it

promises a low level of fuel consumption. LPG equipments do not demand high maintenance and
it also has a narrow range with respect to flammability.
7.

With multiple advantages, LPG has seen a wide growth when it comes to domestic uses.

With time, there have been more in-depth studies as to how the use of LPG gas can be increased
with respect to domestic purposes.

2.Company

Profile

Suppliers and exporters of die castings components such as pressure die castings components, zinc
pressure die castings components, stainless steel die castings, alloy steel die castings, metallic die casting,
automotive casting, pressure die casting and casting products, etc.

3.BRIEF PROFILE
Indian Autogas Company Ltd. was incorporated in July 1995 with an authorized capital of Rs. 100
lakhs with the object of manufacturing and trading in LPG (Liquefied Petroleum Gas) and other
allied activities and now the authorized capital is Rs 400 lacs.The Chief Controller of Explosives
(GOI) as an LPG operator has licensed it.

Admin Office

Auto LPG Bhavan,

3/88, Mount Poonamallee Road,
Ramavaram, Chennai 600089
with branches at Andhra Pradesh, Karnataka, Maharashtra and Pondi.
Factory

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(i) Blending Plant

S.No 1128/1
Ernakupam Village,
UthukottaiTaluk
Tiruvalore Dist.

(ii) LPG Bottling Plant.

S.No 1128/2,3
Ernakupam Village,
UthukottaiTaluk
Tiruvalore Dist.

1.

OBJECTS: -

The main object of Indian Autogas Company Ltd is to promote LPGand other fuels in India.
2.

APPROVALS:

Company was promoted in the year 1995.

Manufactured the first LPG Conversion system for Indian Auto Rickshaws in 1997.

Received trial approval for Auto LPG business from Ministry in 1998.

Designed the First Auto LPG Dispensing station in 2002.

Got the approval from Govt as the first Auto LPG Dispensing station in 2003.

Entered in the Auto LPG Business in 2005.

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Signed MOU with Caltex Gas for the supply of Auto LPG in 2005.

The erection of first Auto LPG Dispensing station is completed at Nizamabad in March 2006

Company got operator approval from CCoE

Commissioned the first company owned station in 2008.

Project VISION 1000 lounged on 19-08-09

Company is rated as 2 SATISFACTORY on 02.04.2010

Signed MOU to import LPG in Finolex LPG Terminal on 20.08.2010

Cutting Gas Test succeeded on 19.04.2012

LPG manufacturing approval by Govt on 06.07.2012

Proposal to enter in LPG Packed cylinder in a big way on 1.06.2012.

As a achievement Company is rated as 1 GOOD for Autogas business and 2- satisfactory for
packed LPG business on 10.07.2012.

The LPG manufacturing plant was commissioned on 04.05.2013.

The LPG bottling was commissioned on 04.05.2013.

3.

MANAGEMENT

The company is managed by a Board of Directors comprising three Directors. The Managing Director
and CEO is Mr.S.M. Antony Thomas. He is a member of world LPG Forum, the authority on effective
use of LPG internationally and has vast base training and experience in the field of petroleum gas.

4.

PRODUCTS: -

The present products are:

Auto LPG

Packed Commercial LPG in cylinders

Bulk Industrial LPG

Products proposed for future

Piped LPG

Lubricants

Cutting Gas
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City gas

Petrol and diesel

Hydrogen.

Auto LPG:
AutoGas (LPG) is a clean, high octane, abundant and eco-friendly fuel. It is obtained from
natural gas through fractionation and from crude oil through refining. It is a mixture of petroleum
gases like propane and butane. The higher energy content in this fuel results in a 10% reduction
of CO2 emission as compared to MS.
AutoGas is a gas at atmospheric pressure and normal temperatures, but it can be liquefied when
moderate pressure is applied or when the temperature is sufficiently reduced. This property
makes the fuel an ideal energy source for a wide range of applications, as it can be easily
condensed, packaged, stored and utilised. When the pressure is released, the liquid makes up
about 250 times its volume as gas, so large amounts of energy can be stored and transported
compactly.
The use of LPG as an automotive fuel has become legal in India with effect from April 24, 2000,
albeit within the prescribed safety terms and conditions. Hitherto, the thousands of LPG vehicles
running in various cities have been doing so illegally by using domestic LPG cylinders, a very
unsafe practice. Using domestic LPG cylinders in automobiles is still illegal.
AutoGas impacts greenhouse emissions less than any other fossil fuel when measured through
the total fuel cycle. Conversion of petrol to AutoGas helps substantially reduce air pollution
caused by vehicular emissions.
The saving on account of conversion to AutoGas in comparison to petrol is about 35-40%. Low
filling times and the 35-40% saving is a reason enough for a consumer to convert his vehicle to
AutoGas.

Packed LPG Cylinders:

Confidence Petroleum India Limited is a reputed BSE listed company. The group is among the
largest manufacturers of LPG/CNG cylinders in India and also has a cylinder manufacturing unit
in Indonesia. Our vision is to become the largest player in LPG/CNG related business by 2015.
We are Indias leading private sector bottler with 51 bottling plants across 21 states with a vision
to commission many more plants in near future.
Go Gas is the brand name of LPG supplied and marketed by Confidence Petroleum all over
India. As the name signifies, you can GO to everyplace by means of GAS as fuel. Go Gas has a
network of 100 auto LPG dispensing stations in 10 different states and we aim to setup 250
additional stations in the near future all over India.
26

At present, we are launching Go Gas LPG in 12kg, 15kg, and 17kg cylinders for domestic,
commercial and industrial use across India as we are having sufficient infrastructure to provide
quality service to our customers.

LPG: LPG Stands for Liquefied Petroleum Gas and

its a mixture of propane and butane gas.
Liquefied Petroleum Gas (LPG) is an environmentally friendly inexpensive fuel. LPG is the
generic name for Propane and Butane. There are hydrocarbon products produced by the oil and
gas industries. Commercial Propane predominantly consists of hydrocarbons containing three
carbon atoms and its chemical formula is C3H8.
Packed Cylinder: It refers to those cylinders that have been filled with designated quantity of
LPG and is ready to use at home, hotel or any other commercial outfit. The process of
transferring/filling a cylinder with LPG is called Bottling.
Depending upon the desired usage it can be termed as Domestic Packed Cylinder and
Commercial Packed Cylinder. Although the gas inside both the cylinders remain the same but
the pricing and applicable taxes change depending upon the domestic or commercial usage.
Another difference in Domestic Packed Cylinder & Commercial Packed Cylinder is the color of
cylinder itself with the red painted cylinder denoting domestic usage and blue painted cylinder
denoting commercial usage.

BULK INDUSTRIAL LPG:

27

IndianOil is selling Bulk Industrial LPG as

per IS 4576 (latest edition). The Bulk
Industrial LPG is sold as Commercial
Butane, Commercial Propane and
Commercial LPG.
Based on Customer's specific requirement
LPG is also supplied in various mixes of
Propane and Butane.
Demands of Customers who require
Propane rich LPG are met through
IndianOil's Import Terminals.

PIPED LPG GAS:

28

LUBRICANTS:
1.Automotive Engine Oil
2.Automotive Gear Oil
3.Compressor Oil
4.Grease
5.Hydraulic Oil

29

6.Industrial Gear Oil

7.Motorcycle Engine Oil
8.Open Gear Oil
9.Rail Curve Grease
10.Transmission Fluid
11.Turbine Oil

CUTTING GAS:

OXY FUEL CUTTING AND WELDING. INFORMATION ON

Acetylene - Natural Gas - Propane - Propylene - Mapp Gasolene.

30

Gasoline for Cutting Steels.

31

CITY GAS:

HDB

Cooking
Heating
Drying

The City Gas clothes dryer has features to tackle every load in a shorter time. With our gas
clothes dryer, you need not worry about whether it rains or shines.
32

Condominium

Cooking
Heating
Drying

With the convenience of our continuous gas supply, City Gas brings you a variety of
professional hobs to suit your cooking needs. Visit us at our Gallery to view the full range of
hobs available.

Landed Property

Cooking
Heating
Drying
Laundry
Barbeque
Pool Heating

With the convenience of our continuous gas supply, City Gas brings you a variety of
professional hobs to suit your cooking needs. Visit us at our Gallery to view the full range of
hobs available

Promotions
33

City Gas Triple Delights

Gas Clothes Dryer (RD-600CG) + HDB Series Gas Water Heaters (Choose from
Ferroli, Macro or Rinnai models) at special combination prices!

Water Heaters PROMO specially tailored for HDB homes

Gas Clothes Dryer (RD-600CG) at S$790*! (UP: S$1,120)

Petrol and diesel:

34

Petrol and diesel are likely to remain the most widely used transport fuels for years to come.
Burning them to produce energy creates local pollution and emissions that contribute to climate
change. At Shell we are working to provide customers with cleaner, more energy-efficient fuels
that can help them lower their emissions.

Making petrol and diesel

After oil is removed from the ground, it is sent to a refinery by pipeline or tanker.
At the refinery heat is used to separate out different products at different boiling points.
Some of these products, such as liquefied petroleum gas (LPG) and kerosene, are ready for use
as heating or transport fuels.
Others pass through a distillation column where heat and pressure cause a chemical reaction that
transforms them into higher value fuel products.
In a final stage, we may blend these products with additives to improve the quality of the fuel.
We could also add gas-to-liquids (GTL) gasoil, for example, to make fuels more efficient, or
biofuels which can result in lower total CO2 emissions from production to use.

Shell fuels
Many of our customers want more efficient fuels. Others want to improve the performance of
their car.
We offer fuels that help meet these customer expectations across the world.
We have developed Shell FuelSave Regular Unleaded, which is designed to help customers save
fuel at no extra cost.
Working closely with the Ferrari team in Formula One we have developed Shell V-Power and
Shell V-Power Diesel.

35

These fuels are designed to enhance engine performance and are available to customers in over
60 countries.
We also offer Nitrogen Enriched Gasolines in the USA and Canada.
These help to better clean engines and protect against the build-up of deposits, improving engine
efficiency.
Petrol and diesel are petroleum-derived liquid mixtures used as fuels. Though both
have similar base product but have different properties and usage.

Comparison chart
Diesel

Petrol

Uses

In diesel engines, heating systems

In petrol engines

Made from

Petroleum/ Crude oil

Petroleum/ Crude
Oil

Energy content

38.6 MJ/litre

34.6 MJ/litre

Made by

Fractional distillation

Fractional
distillation

Torque (for 10L

engine)

1000 Nm @ 2000 rpm

300Nm @ 4000
rpm

Power (for 10L

engine)

490Hp @ 3500 rpm

600Hp @ 5500 rpm

Power =
torque*RPM

More torque at low speeds

Runs at higher RPM

Auto-ignition
temperature

210C

246C

36

Diesel

Petrol

CO2 emission

More than gasoline(petrol). Diesel fuel produces

approximately 13% more CO2 gas per gallon of fuel burned,
compared to gas (petrol) engines.

Lower than diesel.

Viscosity

increase at lower temperatures

No change

US Consumption
(2006)

50 Billion gallons

148 Billion gallons

Types of ignition

Direct ( by compression )

Spark

HYDROGEN:
Data Zone:
Classification

Hydrogen is a nonmetal. It can become metallic at very high

pressures.

Color

colorless

Atomic weight

1.0079

State

gas

Melting point

-259.14 oC, 14.01 K

Boiling point

-252.87 oC, 20.28 K

Electrons:

Protons:

Neutrons in most abundant

37

isotope:
Electron shells

Electron configuration

1s1

Density @ 20oC

0.0000899 g/cm3

Theophrastus Paracelsus - The first person to generate hydrogen: "Air arises and breaks forth
like a wind."

Interiors of Jupiter and Saturn, with liquid metallic hydrogen.

Courtesy NASA/JPL-Caltech.
38

Nasa: The Space Shuttles external fuel tank (orange) filled with liquid hydrogen and oxygen.

Hydrogen cars emit water rather than pollutants.

39

Laboratory electrolysis of water. Electrical energy is used to split water. Hydrogen gathers in one
test-tube, oxygen in the other.
Hydrogen
1

Li

- hydrogen helium
Hydrogen in the periodic table
Appearance
colorless gas

40

Purple glow in its plasma state

Spectral lines of hydrogen
General properties
Name, symbol, number

hydrogen, H, 1
/hadrdn/ HY-dr-jn[1]

Pronunciation

diatomic nonmetal

Element category
Group, period, block

1, 1, s

Standard atomic weight

1.008(1)

Electron configuration

1s1
1

Physical properties
Color

Colorless

Phase

gas

Density

(0 C, 101.325 kPa)
0.08988 g/L

Liquid density at m.p.

0.07 (0.0763 solid)[2] gcm3

Liquid density at b.p.

0.07099 gcm3

Melting point

13.99 K434.49 F 259.16 C, ,

Boiling point

423.182 F 252.879 C, 20.271 K,

Triple point

13.8033 K, 7.041 kPa

41

Critical point

32.938 K, 1.2858 MPa

Heat of fusion

(H2) 0.117 kJmol1

Heat of vaporization

(H2) 0.904 kJmol1

Molar heat capacity

(H2) 28.836 Jmol1K1

Vapor pressure

P (Pa)

10

100

1k

10 k

100 k

15

20

at T (K)
Atomic properties
Oxidation states

1, 1
(amphoteric oxide)

Electronegativity

2.20 (Pauling scale)

Ionization energies

1st: 1312.0 kJmol1

Covalent radius

315 pm

Van der Waals radius

120 pm
Miscellanea
hexagonal

Crystal structure

Magnetic ordering
Thermal conductivity
Speed of sound
CAS registry number

diamagnetic[3]
0.1805 Wm1K1
(gas, 27 C) 1310 ms1
1333-74-0

42

History
Discovery

Henry Cavendish[4][5] (1766)

Named by

Antoine Lavoisier[6] (1783)

Most stable isotopes

Main article: Isotopes of hydrogen

iso

NA

half-life

DM

99.985%

0.015%

trace

H
H
H

DE (MeV)

DP

H is stable with 0 neutrons

H is stable with 1 neutron

12.32 y

0.01861

He

v
t
e

references

Hydrogen is a chemical element with chemical symbol H and atomic number 1. With an atomic weight
of 1.00794 u, hydrogen is the

6.PRESENT STATUS OF OPERATION ON ALDS

To promote the sale of Auto LPG, the company is setting up ALDS (Auto LPG Dispensing Stations).
The CCOE approved installers are constructing the ALDS for Indian Autogas Company. The ALDS may
be either company owned or dealer owned. The company has a plan to set up a few company owned
ALDS in metropolitan and big cities/towns. The vast majority of ALDS will be dealer- owned for which
the company enters into a Franchisee Agreement with the dealers.
These stations are in Tamilnadu, Andhra Pradesh,Karnataka andKerala and Maharashtra
We have commissioned 24 ALDS in Tamilnadu, 2 ALDS in Pondicherry, 9 ALDS in Andhra Pradesh, 1
ALDS at Karnataka and 1 ALDS at Maharashtra. In this 4 ALDS are company owned and balance are
Dealer Owned.

43

In the commissioned ALDS 5 Nos were closed and the agreement were cancelled.
3ALDS in Tamilnadu and 1 in Andhra Pradesh are under construction.
We have signed further Franchisee agreements45 No in Tamil Nadu, 9 in AP 4 in Karnataka and 4 in
Maharashtra.
7.PRESENT STATUS OF OPERATION ON LPG IN CYLINDERS.
Our bottling capacity is 3000 cylinders of various cylinders per day.We are ding filling of around 13 MT
per month. The market needs more but lack of working capital not allowed us to do more.
8.REQUIREMENT OF LPG

The company isnow running with32 ALDS and so the company will require around 600 tons of
LPG per month. The proposed cylinder business will fetch around 500 MT within next 6 months
time. Hence we need around 1000 MT per monthwithin next 6 months time.
9.MANUFACTURING FACILITY OF LPG
Our LPG manufacturing capacity is 36000 MTPA. With the help of our R&D team we manufacture
different type of LPG with different calorific value as per the need of consumer. We manufacture LPG in
all BIS standards. For our own marketing we need 12000 MT per annum and the balance will be sold in
bulk to other Industrial and Auto LPG customers.
10.SUPPLIERS OF LPG AND RAW MATERIALS.
We are buying LPG from the local importers also. They are

Indian Oil Petronas Pvt Ltd

CPCL

GAIL

Kothari Fertilizers

Cetex and

SHV Energy.

11.PROJECTS AND MARKET: The company proposed to start 300 LPG Dispensing stations in the First phase all over India,
500 Nos. in the second phase and 1000 Nos. in the third phase.
The cost of constructing one ALDS is ranging from Rs.55 Lakhs to Rs. 90Lakhs, excluding the land cost
and depending upon the size. For setting up company owned ALDS, the company will invest this money

44

and for Dealer owned stations Dealer will invest. If we just take 30 MT sale in one station the business by
end of Ist phase is 90000 X 1500 MT = 13,50,00,000 ie 13.5 Cr per month and 162 Cr per annum.
Packed LPG sector company proposed to create a net work with 1 distributor per district and one dealer in
every Town of Tamil Nadu. Andhra Pradesh, Karnataka and Kerala start with and the same will extended
to other states also.
The market in Tamil Nadu is 60000 MT per month. We proposed to take 2% of the packed cylinder
market, which is 1200 MT per month. The present value of this business is 10.80 per month and 129.6 Cr
per annum. This is the business of one state.
The other states will also have the business in the same line. Total business in south India itself will be
around 300 + 162 = 462 Cr in 3 years time. If the finance is available as working capital these business
will be achieved within next 3 years time with 5% to 8% net profit.
New products will give more profitability in the market.

12.PROPOSED BUSINESS

Further to the existing LPG business we propose the following business for the next years.

Trading of Diesel to actual consumers.

Add Petrol and diesel in the existing and new retail outlets.

13.BANK FACILITIES
Cash Credit Limit :

450 Lakhs

Term Loan 1

200 Lakhs

Term Loan 2

225 Lakhs.

Total

875 Lakhs.

SME CARE

80 Lacs

Total

955 Lacs

14.ASSETS AND LIABILITIES

45

ASSETS & LIABILITY

(as on 31-5-2014)
ASSETS
Tangable assets

Nos

Value Total

Factory

7.5

7.5

CODO ALDS

Total

11.5

nonTangable assets
Branding

Factory license & NOC

Net work

40

0.01

0.4

ALDS License, NOC, Agreement for 33 years

40

0.219

8.76

0.5

Operator agreement
Office building 3000 sft

4
0

Total

18.16

Grand Total

29.66

LIABILITIES

Bank

10.5

46

Private

1.7

SIDBI

0.11

ICICI mortage

0.45

Dealers

0.1

Jewel Loan

0.3

Statutory

0.1

IT

0.3
13.56

Shatre Capital

The calculation for Non Tangable assets

Branding
The indianAutogas and its logo are well developed
in the market
Factory License and NOC
The liscense is issued after 4years continous work and expense
with the department and it is the 2nd one in India with
in line blending facility to manufacture LPG.
The NOC is availed with great dificulty and expenses
Net work

47

Creation of network is great task. We have done it when

companies like SHV Energy or Total or others were failed.

ALDS License, NOC & Agreement

approximate sales per ALDS per day

1000 liters

(as a min 1000 l per day sale is considered)

Profit per liter average
Total profit per day
Profit per annum
profit for 3 years

2
2000
7.3 lacs
21.9

Operator Agreement
This is for the leased land for 29 years
The lease rent is only rs 10 per month
for the total land.

Office Building 3000 sft

The land is in main road and we got the
order from supream court to allot the land
in our favour. The land cost is 5 cr per ground.
The payable to Govt will be around 70 lacs.

48

15.THE PRESENT ISSUES.

When our account was took over by SBI we enjoyed 5 Cr facility with Dhanlakshmi Bank and SBI
enhanced from 3 Cr CC to 4.5 Cr and dispersed additional T.L of Rs 2.25 for the construction of LPG
manufacturing facility.And committed that they will sanction and release additional CC for the working
capital to run the plant.
In the meanwhile Oct 2012 GOI introduced reduction on subsidy to LPG, which made us to plan to do
packed cylinder business in the commercial sector. We approached SBI and they were happy by seeing
our proposals and asked us to proceed but the sanction will be done only during the renewal in the month
of May 2014. We agreed and invested our money into the construction of LPG bottling plant along with
the manufacturing plant.
In the meanwhile for construction of LPG Bottling plant as interim loan they dispersed us Rs 0.8 Cr at
Feb 2013 against our proposal of 6 Cr CC and 4 Cr TL.
But after completion of the plant SBI refused to sanction W.C because of some internal issues in the
dispersment of Rs 0.8 Cr to us as interim loan.
Since we invest our money in the LPG bottling plant cost 3.4 Cr and invest 0.4 Cr in cylinders, our cash
flow struck up and were unable to pay the dues from Oct 2013.
The company became NPA in the month of Oct 2013 and we are in a compulsion to pay around 2.37 Cr
as on 10-2-2014 to SBI to regularise our account. After regularisation the out flow per month to Bank will
be around 15 lacs. We have filed appeal in DRT.
There are some pendency in statutory payment also to the tune of 25 lacs.
We have taken some loan upto 1.9 Cr in heavy interest from local financiers also.
16.SWOT ANALYSIS
STRENGTH

We are premiers in Auto LPG and we are the major Auto LPG Company in South India from
private sector. Now our packed cylinder business made our company as a LPG company with all
LPG business. The promoters have good knowledge in LPG industry. Since the industry is a fuel

49

industry always there is the chance of growth only. The company is the largest Auto LPG
Company in South India. Auto LPG market is good in South and Western India.
Our technical team is so sound enabling to design the plant in one tenth of other design company; we
were able to reduce the cost of construction of plants.
Our satisfied customers are always doing repeated orders for new ALDS, which nobody in the industry
got.

WEAKNESS
There is no import facility available with the company and the investment is restricted to for a
Port facility or facilities proposed. The company is struggling without working capital to run the
business.
OPPORTUNITY
The Govt of India wants Auto LPG is to be populated in all the places even to buses and trucks
as in Delhi and Mumbai. All the OEMs have started manufacturing of LPG vehicles. These vary
from basic models like Maruti to the higher end Mitsubishi Cedia or Hyundai Sonata. The supply
of CNG is not possible at present in Southern states.
Since the Govt of India announced the cap on the subsidised cylinders, illegal business of
diverting the subsidised domestic cylinders stopped, gated communities are going for pipe line
LPG connections, a new business area is opened for the private players in the commercial packed
cylinder business. The threat of CNG also will take as an opportunity by retailing CNG in our
ALDS when CNG comes to our market area.
The proposed business of diesel to the actual users will fetch good margins to the company.
The weakness of lac of working capital will be made positive by your investment in the company
THREAT
The CNG is competing as alternative fuel in Western region. The competition of other
companies may affect the business of Indian Auto gas partly if we do not invest in the
infrastructures
17.THE PRESENT REQUIREMENT.

50

The immediate requirement is to settle the bank and private financiers and infuse some funds in the
company for working capital. We may need 4.75 Cr to settle the pressing issues and another 5 Cr for
working capital immediately.
18.ADVANTAGES IN INVESTING IN INDIAN AUTOGAS

Since thebusiness is a prestigious petroleum business, your groups image will be increased as
you are in nitch business.

The business is in the Roads to sell fuel, and licensed to do all over India, and so you will be well
known and very popular in India.

The turnover and the profits can be increased in folds based on our investments.

The profitability is around 8% if we do manufacturing of LPG and the W.C can be turn around 3
times in two months and once in two months during import where our margins will be 15 to 20%
as per the present situation.

Business:

51

LPG is the prime business of our company, as promoters we are well experienced and
competent

in

LPG

business.

We are appointing Franchises and Operators to our AutoLPG business all over India. We are
constructing our Company Owned Company Operated Retail Auto LPG Dispensing Stations
(ALDS)

also

in

certain

areas.

For packed LPG cylinders which are used for all applications like domestic, Industrial,
commercial and cutting gas, we are appointing District Distributors and Area Wise Dealers.

AutoLPG is one of the prime business of the company. We are looking for the following as to
be part in the AutoLPG business.

52

Auto LPG
Autogas is one of the prime business of our company. We are looking for the following to part
in Autogas business.

ALDS

Franchisee.

ALDS

Operators.

Packed Cylinder Business

District

Local Area Dealers

Distributors

Auto LPG Dispensing Station (ALDS)

Company is setting up AutoLPG Dispensing Station in north India. With every ALDS in north India
company will also establish retro fitment centers, where the existing 4/3/2 wheeler vehicles will be
converted to LPG. This will help in adding to the income of respective dealer.

53

There are three schemes currently, on which company is working, namely

Company Owned Dealer Operated (CODO)

Dealer Owned Dealer Operated (DODO)
Company Owned Company Operated (COCO)

LPG CYLINDER

LPGs domestic uses can never be ignored. It has played a revolutionary role when it
comes to changing the face of domestic fuels used for heating and cooking.
54

1.

There are still many rural areas where they have no access to a central gas

pipeline or a gas network. These areas and even many in the urban sectors are using LPG
as an alternative source of fuel. The main reason behind this is easy accessibility, low
cost per unit and the environment friendly properties of LPG.
2.

The main domestic uses of LPG are with respect to lighting, refrigeration,

cooking and most of all heating. It is as good for powering standalone stoves and huge
cooking stoves. It has been found to be cost effective and hence is used in large scale
cooking also.
3.

LPG is also used as a backup at places where people rely on solar energy. It has

so happened that at times, due to lack of sunlight or during the cold season, renewable
sources of energy like sunlight have not been helpful. In these cases, LPG is used as a
standby or secondary source of fuel.
4.

Other household or domestic uses of LPG include water heaters, dishwashers,

space heaters and even incinerators.

5.

Since it is considered to be eco-friendly, LPG is also used to run generators. It is

considered safe enough to be used even in closed spaces.

6.

One main reason behind LPG being a popular choice of fuel in domestic uses is

that it promises a low level of fuel consumption. LPG equipments do not demand high
maintenance and it also has a narrow range with respect to flammability.
7.

With multiple advantages, LPG has seen a wide growth when it comes to

domestic uses. With time, there have been more in-depth studies as to how the use of
LPG gas can be increased with respect to domestic purposes.

Company Profile

Machining Parts

55

Indian Autogas Company Ltd is a Public Ltd Company having its registered office at Chennai Tamil
Nadu, working on Auto Gas Industry since 1993 directly and indirectly. The Company has started with an
authorised Capital of 10 Million INR with professionals and technocrats with a view to amalgamate the
operations for the manufacture, distribution, fabrication, erection, commissioning Operations,
Maintenance, Safety Engineering,handling and service
the Petroleum products like LPG, CNG, Production, Bottling, Blending and processing Plants,
Equipments , Gas conversion system for automobiles, tanks and Engineering. And interested in
construction, real estate, natural and herbal products, home links, insurance and publishing.

LPG IS USED:
Commercial establishments such as Hotels, Restaurants, Caterers, Resorts, Clubs,
Cafes, Sweet Shops, Canteens, etc and other institutions such as Hospitals and
Hostels choose Super Gas because of its products and services.
INDIAN AUTO Gas meets commericial LPG energy needs not only for cooking but
other applications as well to make their businesses more cost-effective, the ambience
clean and customers smiling.

Cooking

56

INDIAN AUTO Gas offers immense value as cooking

fuel due to its various benefits and versatility. Different
types of cooking are effectively performed using Indian
autogas:
Boiling, Stewing, Frying, Grilling, Toasting, Broiling,
Roasting, Baking, etc.

Water Heating
Hotels and Inns need to provide hot water for
bathrooms, spas and swimming pools for comfort of
their guests.
INDIAN AUTO Gas has been proven to be a cost
effective and clean pollution free alternative to liquid
fuels in Hot Water generators.

Laundry
Hotels, Hospitals and other such establishments require
steam and hot-water for laundry.
INDIAN AUTO Gas has been proven to be a cost
effective and clean pollution free alternative to liquid
fuels in boiler units and hot water generators.

Air Conditioning
Surprised? A heating fuel like Super Gas used for air
conditioning. Well it is true.
INDIAN AUTO Gas can be used in Vapour absorption
chillers (used for air-conditioning) to save on huge
electricity costs required for running traditional air
conditioners.

Incineration

57

Hospitals and Laboratories generate hazardous biomedical waste which needs to be incinerated for safe
disposal.
INDIAN AUTOGas is used in incinerators to provide
high temperature for complete burning of the biomedical waste without any harmful emissions.

Indian Oil Corporation

From Wikipedia, the free encyclopedia
For the America-based oil company, see Indian Refining Company.
Indian Oil Corporation Limited

Bringing Energy to Life

Type

Public

Traded as

BSE: 530965
NSE: IOC

Industry

Oil and gas

Founded

1964

Headquarters

New Delhi, India

58

Area served

India

Key people

Dr. R.K.MALHOTRA (Chairman)

Products

Fuels, lubricants, petrochemicals

Revenue

US$ 76.05 billion (2012)[1]

Operating income

US$ 3.30 billion (2012)[1]

Profit

US$ 786 million (2012)[1]

Total assets

US$ 40.88 billion (2012)[1]

Total equity

US$ 11.59 billion (2012)[1]

Owner(s)

Government of India

Employees

36,198 (2012)[1]

Website

www.iocl.com

Indian Oil Corporation Limited, or IndianOil, is an Indian state-owned oil and gas
corporation with its headquarters in New Delhi, India. It is the world's 83rd largest corporation,
according to the Fortune Global 500 list, and the largest public corporation in India when ranked
by revenue.[2]
IndianOil and its subsidiaries account for a 49% share in the petroleum products market, 31%
share in refining capacity and 67% downstream sector pipelines capacity in India. The IndianOil
Group of companies owns and operates 10 of India's 22 refineries with a combined refining
capacity of 65.7 million metric tonnes per year. In FY 2012 IOCL sold 75.66 million tonnes of
petroleum products and reported a PBT of 37.54 billion, and the Government of India earned an
excise duty of 232.53 billion and tax of 10.68 billion.
The company is mainly controlled by Government of India which owns approx. 79% shares in
the company.[3] It is one of the seven Maharatna status companies of India, apart from Coal India
Limited, NTPC Limited, Oil and Natural Gas Corporation, Steel Authority of India Limited,
Bharat Heavy Electricals Limited and Gas Authority of India Limited.[4]

Contents

1 History
2 Products and services
3 Operations

59

4 International rankings
5 Employees
6 Concerns
7 Listing and shareholding
8 Competitors
9 Oil Industry Development Board

History
IndianOil began operations in 1959 as Indian Oil Company Ltd. The Indian Oil Corporation was
formed in 1964, with the merger of Indian Refineries Ltd.
Recently IndianOil Corp (IOC) has raised $500 million by selling 10-year dollar-denominated
bonds, its fourth such issue overseas in the last three and a half years.[5]

In 2003, its Gujarat Refinery was awarded the "Best of all" Rajiv Gandhi National Quality
Award.[6]

Products and services

The main products of IndianOil are petrol, diesel, LPG, auto LPG, aviation turbine fuel,
lubricants and petrochemicals: naphtha, bitumen, kerosene etc.
IndianOil operates the largest and the widest network of fuel stations in the country, numbering
about 20,575 (16,350 regular ROs & 4,225 Kisan Seva Kendra). It has also started Auto LPG
Dispensing Stations (ALDS). It supplies Indane cooking gas to over 66.8 million households
through a network of 5,934 Indane distributors.
Brands:

Indane Gas - Domestic and Industrial Gas

AutoGas - Automotive Natural Gas
Xtra Premium - Automotive Premium Petrol
Xtra Mile - Automotive Premium Diesel
Servo - Lubricants and Greases
Propel - Petrochemicals
IndianOil Aviation - Aviation fuel
LNG at Doorstep - LNG by cryogenic transportation

The main services offered by IndianOil are Refining, Marketing, Pipelines, R&D and Training.
IndianOil's Research and Development Center (R&D) at Faridabad supports, develops and
provides the necessary technology solutions to the operating divisions of the corporation and its
customers within the country and abroad.
Loyalty programs
XTRAPOWER Fleet Card Program is aimed at large fleet operators. Currently it has 1 million

60

customer base. XTRAREWARDS is a recently launched loyalty program for retail customers
where customers can earn reward points on their purchases.[citation needed]

Operations
Refineries: IOCL has various refineries across India.
In Assam

Digboi Refinery is India's oldest refinery and was commissioned in 1901. Originally a part of
Assam Oil Company, it became part of IndianOil in 1981. Its original refining capacity had been
0.5 MMTPA since 1901. Modernisation project of this refinery was completed by 1996 and the
refinery now has an enhanced capacity of 0.65 MMTPA. UOP licensed the technology for the
Coking process in this refinery.

Guwahati Refinery, the first public sector refinery of the country, was built with Romanian
collaboration and was inaugurated on 1 January 1962. Its capacity is 1 MMTPA.

Bongaigaon Refinery became the eighth refinery of IndianOil after merger of Bongaigaon
Refinery & Petrochemicals Limited w.e.f. 25 March 2009. It is located at Dhaligaon in Chirang
district of Assam, 200 km west of Guwahati.

In Bihar: Barauni Refinery, in Bihar, was built in collaboration with Russia and Romania. It was
commissioned in 1964 with a capacity of 1 MMTPA. Its current capacity is 6 MMTPA.
In Gujarat: Gujarat Refinery, at Koyali (near Vadodara) in Gujarat, is IndianOils second largest
refinery. The refinery was commissioned in 1965. It also houses the first hydrocracking unit of
the country. Its present capacity is 13.70 MMTPA.
In West Bengal: Haldia Refinery is the only coastal refinery of the Corporation, situated 136 km
downstream of Kolkata in the Purba Medinipur (East Midnapore) district. It was commissioned
in 1975 with a capacity of 2.5 MMTPA, which has since been increased to 7.5 MMTPA.
In Uttar Pradesh: Mathura Refinery was commissioned in 1982 as the sixth refinery in the fold
of IndianOil and with an original capacity of 6.0 MMTPA. Located strategically between Delhi
and Agra, the capacity of Mathura refinery has been increased to 8.8 MMTPA.
In Haryana: Panipat Refinery is the seventh and largest refinery of IndianOil. The original
refinery with 6 MMTPA capacity was built and commissioned in 1998. Panipat Refinery has
since expanded its refining capacity to 12 MMTPA. There are plans to further expand the
capacity to 21 MMTPA.[7]
In Odisha (Orissa): Paradip Refinery - The commissioning of 15 million tonnes per annum
refinery in November 2012 has been delayed and is now expected to be operational only in
September 2013.[8]

61

Group companies and joint ventures

IndianOil (Mauritius) Ltd.

Lanka IOC PLC Group company for retail and storage operations in Sri Lanka. It is listed in the
Colombo Stock Exchange. It was locked into a bitter subsidy payment dispute with Sri Lanka's
Government which has since been resolved.[citation needed]
IOC Middle East FZE
Chennai Petroleum Corporation Limited
Green Gas Ltd. a joint venture with Gas Authority of India Ltd. for city-wide gas distribution
networks.
Indo Cat Pvt. Ltd., with Intercat, USA, for manufacturing 15,000 tonnes per annum of FCC
(fluidised catalytic cracking) catalysts & additives in India.
IndianOil CREDA Biofuels Ltd., a joint venture with Chhattisgarh government for production
and marketing of Bio-fuels.
Numerous exploration and production ventures with Oil India Ltd., Oil and Natural Gas
Corporation
India Synthetic Rubber Ltd - A joint venture between IOCL, Taiwan Synthetic Rubber
Corporation(Taiwan) and Marubeni(Japan)
Petronas (Malaysia) Ltd

International rankings

IndianOil is the highest ranked Indian company in the Fortune Global 500 listing, at the 88th
position in 2013. It is also the 18th largest petroleum company in the world and the No. 1
petroleum trading company among the national oil companies in the Asia-Pacific region.
IOCL was featured on the 2011 Forbes Global 2000 at position 243.
It is the fifth most valued brand in India according to an annual survey conducted by Brand
Finance and The Economic Times in 2010.[9]

Employees
As on 31 March 2013, the company had 34,084 employees, out of which 2643 were women
(7.8%). Its workforce includes 14,981 officers.[10] The attrition rate in IndianOil is around
1.5%.[11] The company incurred INR 78 billion on employee benefits during the FY 2012-13.[10]

Concerns
Indian Oil Corporation Limited, by virtue of being the largest Public sector Oil company has
borne the largest share of subsidy burden due to Govt restriction on Pricing of common fuels like
Diesel Oil, Kerosene and LPG.
The current formula of making the marketing company share 1/3rd of the subsidy burden ( the up
stream and the Government share the rest equally) forces the corporation to cross subsidize price
regulated fuels with other fuels that are not regulated like Gasoline, Fuel oil, Aviation Turbine
Fuel and Lubricants. This has rendered the corporation's fuels and Lubricant segments
62

uncompetitive with respect to private marketeers who are delving into the open priced fuel/
Lubricants markets in an aggressive way.
The subsidy burden which went over Rs. 300 Billion in 2011 has thereby handicapped the public
sector oil companies as a whole and IndianOil in particular, by virtue of its large share of the
energy market.
IndianOil has tried to come out of the disadvantageous position it finds itself vis-a-vis the private
companies like Total Oil India Limited and Reliance Industries, by taking the fight to newer
sectors where private players are dominant like Petrochemicals and Alternative Fuels.
Petrochemicals is IndianOil's most profitable revenue division currently and massive investments
in the recent years have been made in Petrochemical complexes at Panipat refinery and the
upcoming Paradip refinery.
Despite substantial well directed efforts, the corporation still faces significant challenges in
maintaining its current dominance once the imminent free pricing is introduced, although the
corporation's vast infrastructure shall also play to its advantage in such a scenario.

Listing and shareholding

IndianOil's equity shares are listed on the Bombay Stock Exchange and National Stock Exchange
of India.[12]
As on 31 December 2013, the promoters Government of India held approx. 79% of the shares in
IndianOil. ONGC held approx. 9% of the shares. Remaining 12% of the shares are held by
others.[3]
Shareholders (as on 31-Dec-2013)

Shareholding[3]

Promoter Group (Government of India) 78.92%

private single body

20.13%

Insurance Companies

01.50%

Individual shareholders

0.83%

Trusts

0.42%

Foreign Institutional Investors (FII)

0.13%

Others

0.07%

63

Total

100.0%

Competitors
Indian Oil Corporation has two major domestic competitors, Bharat Petroleum and Hindustan
Petroleum. Both are state-controlled, like Indian Oil Corporation. There are two private
competitors: Reliance Industries and Essar Oil.

Oil Industry Development Board

India has begun the development of a strategic crude oil reserve sized at 37.4 million barrels
(5,950,000 m3), enough for two weeks of consumption.[13] Petroleum stocks have been
transferred from the Indian Oil Corporation (IndianOil) to the Oil Industry Development Board
(OIDB).[14] The OIDB then created the Indian Strategic Petroleum Reserves Ltd (ISPRL) to
serve as the controlling government agency for the strategic reserve.[15]

INDIAN AUTOGAS SYMBOL:

64

Indian Autogas to set up 1,000 pumps by 2013

65

Indian Autogas Company Ltd, a private energy company that is engaged in distributing LPG for
automobiles has plans of setting up 1,000 gas filling stations across the nation. The company has
plans of investing around Rs. 1,500 Crore to achieve the target within the next three to four
years.
As per an official, the company presently supports 30 outlets in and around Chennai and will add
970 more outlets by 2013. Out of these, 90 per cent will be franchised and rest will be company
owned. The official further said that the company is in talks with few land owners in Tamil
Nadu, Andhra Pradesh, Maharashtra, Karnataka and Kerala to set up these stations.
With the Government enacting laws and rules to promote green fuel, the consumption of auto
LPG will witness a tremendous increase in future. Moreover, the rising awareness among the
people of India has given a momentum to the usage of the low cost and eco-friendly auto LPG.
Even many automobile companies have also commenced production of auto LPG/CNG-operated
vehicles.

ORGANISATIONAL CHART:

66

CEO
Secretr
y to
CEO

HR
Manager

Finance
Manager

Marketing
Manager
(Packed
LPG)

Marketing
Manager
(ALDS)

Purchase
Manager

Marketing
CoOrdinator

Marketing
CoOrdinator

Maintainen
ce
Manager

Sales
Manager

Business
Developme
nt
Executive

Technician

Plant
Manager

Production
Manager

Filling
Supervisor

Chemist

Store
Keeper

CONCLUSION:
The investment in IACL is one of the best business proposals in Todays Industry. Hence we request you,
the investor to take some fast decision and capture the opportunity for developing over business in our
industrial area. With the government enacting laws and rules to promote green fuel, the comsumption of
auto LPG ill itness

SUMMARY Indian Autogas Company Ltd, a leading private energy company engaged in trading of auto
liquefied petroleum gas, on Wednesday announced that the company is planning to set up 1,000 auto
LPG dispensing stations across the country with an estimated investment of Rs 1,500 crore over a period
of next three to four years.
Indian Autogas Company Ltd (IACL), a leading private energy company engaged in trading of auto
liquefied petroleum gas (ALPG), on Wednesday announced that the company is planning to set up 1,000
auto LPG dispensing stations across the country with an estimated investment of Rs 1,500 crore over a
period of next three to four years.

67

SM Anthony Thomas, promoter and director of the company, said at a press conference in Chennai that
the company was in advanced talks with land owners across major states including Tamil Nadu, Andhra
Pradesh, Maharashtra, Karnataka and Kerala to set up these stations. Thomas said while part of the
investment would be made from internal accruals, the remaining would be raised from loans and from
private investors in tranches.
The company, the second largest player of LPG gas distribution in India, was already running 28 stations
across southern states, mainly through the franchise route, he added.
To a question, he said: "We have arranged funds to the tune of close to Rs 200 crore, including around Rs
90 crore from internal accruals, for the first two years." For the third and fourth year, the company would
look at raising funds from investors, private equity partners or from the market, Thomas said. Of the
proposed Rs 1,500-crore investment, close to Rs 785 crore would be spent on stations and the remaining
on storage tanks, he said.
According to him, with the government enacting laws and rules to promote green fuels, the consumption
of auto LPG will witness a tremendous increase in future. Awareness about auto LPG as a low-cost, ecofriendly fuel is also gaining momentum in India. In addition, automobile companies have also
commenced production of auto LPG/CNG-operated nnaivehicles. "There is a great opportunity for growth
for the Indian auto gas industry. As an early entrant in the industry, we see a huge growth potential,"
Thomas said.
Elaborating on Vision 1,000, Thomas said IACL would be setting up 565 ALDS in Tamil Nadu, 261 in
Andhra Pradesh, Karnataka and Maharashtra and 195 in Kerala. These stations will be company-owned.
This means that IACL would invest in civil works, plant & machinery and the operator has to provide
land on lease to the company
Indian Autogas Company Limited (IACL), a Chennai-basied company engaged in trading of auto liquefied
petroleum gas (ALPG), is planning to raise Rs 750 crore from private equity partners to fund its proposed
expansion of setting up over 1,000 company-owned ALPG dispensing stations across five states by 2013.
The expansion envisages an investment of Rs 1,500 crore.

We have already arranged funds to the tune of Rs 786 crore through internal accruals and from
promoters. This would be sufficient for going ahead with our expansion over the next two years.
We will be raising the rest from private equity partners, SM Anthony Thomas, chief executive
of IACL, said here on Friday.
68

Thomas said the company, which currently has 27 dispensing stations in Andhra Pradesh and
Tamil Nadu, would be setting up 565 in Tamil Nadu, 261 in Andhra Pradesh, Karnataka and
Maharashtra, and 195 in Kerala. The proposed expansion will take our total sales volumes to
25,000 tonne per month by 2013 from the present 1,000 tonne, he added.
He said there were over 2 million LPG-operated cars already running on the Indian roads.
However, while the country needs 5,000 ALPG dispensing stations to cater to these vehicles,
there are only 640 at present. Automobile makers are rolling out close to 900,000 four-wheelers
every year, of which one-third are LPG-converted.

69

REVIEW OF LITERATURE

70

REVIEW ON LITERATURE
Hiltrop (1996) was successful in demonstrating the relationship between the HRM
practices, HRM-organizational strategies as well as organizational performance.
He conducted his research on HR manager and company officials of 319
companies in Europe regarding HR practices and policies of their respective
companies and discovered that employment security, training and development
programs, recruitment and selection, teamwork, employee participation, and lastly,
personnel planning are the most essential practices (Hiltrop 1999). As a matter of
fact, the primary role of HR is to develop, control, manage, incite, and achieve the
commitment of the employees. Hence, Hiltrop (1996) suggests the managers need
to develop HR practices that are more focused on training in order to achieve
competitive benefits.
Taylor, P. (1998). Seven staff selection myths, This article outlines seven
commonly held misconceptions about recruitment and selection practices. Areas
discussed include the validity of various recruitment and selection measures (e.g.,
interviewing, reference checks), the conditions necessary to maximize the
effectiveness of these practices, and common mistaken perceptions of the interview
process. This article is most useful for readers interested in workforce development
theory and research.
Bratton and Gold (1999):
Work of Bratton & Gold (1999) suggest that organizations are now developing
models of the kind of employees they desire to recruit, and to recognize how far
applicants correspond to their models by means of reliable and valid techniques of
selection. Nonetheless, the researchers have also seen that such models, largely
derived from competency frameworks, foster strength in companies by generating
the appropriate knowledge against which the job seekers can be assessed.
However, recruitment and selection are also the initial stages of a dialogue among
applications and the company that shapes the employment relationship (Bratton &
Gold 1999).

71

Taher et al. (2000):Any organization is encouraged to development real-time

recruitment strategies that must attempt to generate a pool of appropriately
qualified and well-experienced individuals so as to effectively initiate the selection
strategies and decisions. In essence, the potential applications are encouraged to
apply for the open vacancies and also the relevant departments can engage in
recruiting the best candidates to upgrade the departments performance (Taher et
al. 2000)
Korsten (2003) and Jones et al. (2006), Human Resource Management theories
emphasize on techniques of recruitment and selection and outline the benefits of
interviews, assessment and psychometric examinations as employee selection
process. They further stated that recruitment process may be internal or external or
may also be conducted online. Typically, this process is based on the levels of
recruitment policies, job postings and details, advertising, job application and
interviewing process, assessment, decision making, formal selection and training.
Alan Price (2007), in his work Human Resource Management in a Business
Context, formally defines recruitment and selection as the process of retrieving and
attracting able applications for the purpose of employment. He states that the
process of recruitment is not a simple selection process, while it needs
management decision making and broad planning in order to appoint the most
appropriate manpower. This would reflect the fact that the management would
particularly shortlist able candidates who are well equipped with the requirements
of the position they are applying for, including team work. Since possessing
qualities of being a team player would be essential in any management position
(Price 2007).
Jackson et al. (2009) and Bratton and Gold (1999):
As discussed by Jackson et al. (2009), Human resource management approaches in
any business organization are developed to meet corporate objectives and
materialization of strategic plans via training and development of personnel to
attain the ultimate goal of improving organizational performance as well as profits.
The nature of recruitment and selection for a company that is pursuing HRM
approach is influenced by the state of the labour market and their strength within it.
Furthermore, it is necessary for such companies to monitor how the state of labour
market connects with potential recruits via the projection of an image which will
have an effect on and reinforce applicant expectations.

72

Silzer et al (2010):
The process of recruitment does not cease with application of candidature and
selection of the appropriate candidates, but involves sustaining and retaining the
employees that are selected, as stated by Silzer et al. (2010).
David A De Cenzo, The recruitment needs are of three types which are as follow:
(a) First one is Planned Needs: These are the needs that arise from the changes in
the organization and retirement policy creating vacancy for new jobs.
(b).Second one is Anticipated Needs: These are those movements in personal
which an organization can predict by studying trends both in external as well as
internal environment.
(c) Last one is Unexpected Needs: These needs arise due to various reasons like
deaths, resignations, accidents, illness, relocation etc.
Edwin B Flippo, Recruitment is nothing but the process of searching the
candidates for employment and then stimulating them for jobs in the organization.
It is the activity that links the employees and the jobseekers. It is also defined as
the process of finding and attracting capable applicants for employment. It is the
pool of applicants from which the new employees are selected. It can also be
defined as a process to discover sources of manpower to meet the requirement of
the staffing schedule and to employ effective measures for attracting the manpower
in adequate numbers in order to facilitate the effective selection of an efficient
working force.

73

INTERPRATATION
& ANALYSIS

74

TABLE: 1
SEX:
SEX

NO. OF RESPONDENTs

PERCENTAGE

MALE

27

54

FEMALE

23

46

TOTAL

50

100

Inference
From the above table, it is found that 54% of the respondents are male
and 46% of respondents are female

75

54%

52%

50%

48%

46%

44%

42%
MALE

FEMALE

76

TABLE: 2
AGE:
AGE

NO OF RESPONDENTS

PERCENTAGE

15-35 years

19

38

36-55 years

23

46

56-75 years

16

TOTAL

50

100

Inference
From the above table, it is found that 38% of the respondents are in the age
group of 15-35, 46% in the age group of 36- 55 years, 16% in the age group of 5675 years.

77

56-75 years

36-55 years

15-35 years

0%

10%

20%

30%

78

40%

50%

TABLE: 3
Selection method
Particular

NO OF RESPONDENTS

PERCENTAGE

Personal interview

17

34

Telephonic interview

15

30

Hr interview

18

36

TOTAL

50

100

Inference
For selection method 34% of the respondents are in need of personal
interview 30% of the respondents are in need of telephonic interview and 36% of
the respondents are in need of Hr interview

79

Hr interview

Telephonic interview

Personal interview

27%

28%

29%

30%

31%

80

32%

33%

34%

35%

36%

TABLE: 4
Recruitment and Selection of employees
Particular

NO OF RESPONDENTS

PERCENTAGE

Age

14

28

Qualification

24

48

Experience

12

24

TOTAL

50

100

Inference
28% of employee respondents recruitment and selection is based on age 48%
of employee respondents recruitment and selection is based on qualification and
24% of employee respondents recruitment and selection is based on experience

81

50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
Age

Qualification

82

Experience

TABLE: 5
Recruitment
Particular

NO OF RESPONDENTS

PERCENTAGE

Vacancy

17

34

Retirement

15

30

18

36

50

100

Disable Of Employee
TOTAL

Inference
34% of the respondents says that recruitment takes place during vacancy
30% of the respondents says during retirement of the employee and 36% of the
respondents says that due to disable of employee

83

Disable Of Employee

Retirement

Vacancy

27%

28%

29%

30%

31%

84

32%

33%

34%

35%

36%

TABLE: 6
Internal source
Particular

NO OF RESPONDENTS

PERCENTAGE

Transfer

57

47

Promotion

22

22

21

21

50

100

Recommendation by
existing employee
TOTAL

Inference
From above table 47% of the respondents are in need of transfer 22% of the
respondents are in need of promotion and 21% of the respondents are in need of
recommendation in internal source

85

50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
Transfer

Promotion

86

Recommendation by existing
employee

TABLE: 7
Motivation
Particular

NO OF RESPONDENTS

PERCENTAGE

Good

27

54

Satisfactory

17

34

Bad

12

TOTAL

50

100

Inference
54% of the respondent says motivation level is good 34% of the respondents
says motivation level is satisfactory and 12% of the respondents says motivation
level is bad

87

4.5
4
3.5
3
2.5
2
1.5
1
0.5
0
Good

Satisfactory

Bad

88

Category 4

TABLE: 8
External sources
Particular

NO OF RESPONDENTS

PERCENTAGE

Advertisement

14

28

employee exchange

private employment

22

44

campus interview

14

28

TOTAL

50

100

consultants

Inference
In case of external sources 28% of the respondents are need of more
advertisement 44% of the respondents are need of private employment consultants
and 28% of the respondents are need of campus interview

89

45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
Advertisement

employee
exchange

private
employment
consultants

90

campus interview

TABLE: 9
Test
Particular

NO OF RESPONDENTS

PERCENTAGE

Aptitude, Intelligence, Proficiency

14

28

Intelligence, Proficiency, Interest

12

24

Proficiency, Interest, Personality

14

28

10

20

50

100

Interest, Personality, Aptitude

TOTAL

Inference
28% of the respondents are in need of Aptitude, Intelligence, Proficiency and
Proficiency, Interest, Personality, 24% of the respondents are in need of
Intelligence, Proficiency, Interest and 20% of the respondents are need of Interest,
Personality, Aptitude

91

30%
25%
20%
15%
10%
5%
0%
Aptitude,
Intelligence,
Proficiency

Intelligence,
Proficiency,
Interest

Proficiency,
Interest,
Personality

92

Interest,
Personality,
Aptitude

TABLE: 10
Interview
Particular

NO OF RESPONDENTS

PERCENTAGE

Structured

Unstructured

Depth

14

28

Stress

10

20

Board

Group

20

40

TOTAL

50

100

Inference
From above table 8% of the respondents are based on structured interview
4% of the respondents are based on unstructured interview 28% of the respondents
are based on depth interview 20% of the respondents are based on stress interview
8% of the respondents are based on board interview and 40% of the respondents
are based on group interview

93

Group

Board

Stress

Depth

Unstructured

Structured
0%

5%

10%

15%

20%

94

25%

30%

35%

40%

Table: 11
Recruitment
Particular

NO OF RESPONDENTS

PERCENTAGE

10

10

12

24

professional journals

10

20

professional bodies

recruitment consultants

10

20

TOTAL

50

100

Employee referrals
advertisement in local/national
papers
government employment
exchange

Inference
From above table 10% of the respondents are employee referrals 8% of the
respondents are advertisement in local/national papers 24% of the respondents are
government employment exchange 20% of the respondents are professional
journals 4% of the respondents are professional bodies and 20% of the respondents
are recruitment consultants

95

professional journals

government employment exchange

advertisement in local/national papers

Employee referrals

0%

5%

96

10%

15%

20%

25%

Table: 12
Constraints
Particular

NO OF RESPONDENTS

PERCENTAGE

Stress

12

Anger

30

60

Irritation

14

28

TOTAL

50

100

Inference
12% of the respondents are stressed 60% of the respondents are anger and
28% of the respondents are irritation are the constraints faced during recruitment

70%

60%

50%

40%

30%

20%

10%

0%
Stress

Anger

Irritation

97

Table 13
Weighted Average Method
Details

LOS

Aptitude, intelligence, proficiency

12

Intelligence, proficiency

18

Proficiency, interest, personality

15

Interest, personality, aptitude

LOS: Level of Satisfaction

Rank

Weight

Net Score = Weights for Column * Number of Respondents/ Total Weight

Weighted average = Net score in the row / total weight

Details

LOS

Total

Average

Rank

Aptitude, intelligence,
proficiency

12

50

12

Intelligence, proficiency

18

50

18

Proficiency, interest,

15

50

15

50

personality
Interest, personality, aptitude

Inference
The above table reveals that the respondents had given 1st rank to the
intelligence, proficiency.
98

Table14
The constraints
Particular

NO OF RESPONDENTS

PERCENTAGE

Stress

10

20

Anger

27

54

Irritation

13

26

TOTAL

50

100

Inference
20% of the respondents are in stress 54% of the respondents are in anger and
26% of the respondents are in irritation. These are the constraints faced by the
employee while selecting the candidates

99

60%

50%

40%

30%

20%

10%

0%
Stress

Anger

Irritation

100

Table 15
Responds from company
Particular

NO OF RESPONDENTS

PERCENTAGE

less than 5days

10

20

5-10days

17

34

10-15days

15

30

more than 20days

16

TOTAL

50

100

Inference
20% of the responds received from less than 5days 34% of the responds
received from 5-10days 30% of the responds received from 10-15days and 16% of
the responds received from more than 20days.

101

more than 20days

10-15days

5-10days

less than 5days

0%

5%

10%

15%

102

20%

25%

30%

35%

Table 16
Requirement process of organization
Particular

NO OF RESPONDENTS

PERCENTAGE

25

50

No

25

50

TOTAL

50

100

Yes

Inference
The requirement process of organization is 50% of the respondents says
YES and 50% of the respondents says NO

103

50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
YES

NO

104

Table 17
Selection process
Particular

NO OF RESPONDENTS

PERCENTAGE

poor

adequate

27

54

excellent

23

46

TOTAL

50

100

Inference
The organization affirmative action needs clarified and supported in
selection process 0% of the respondents are poor 54% of the respondents are
adequate and 46% of the respondents are excellent

105

excellent

adequate

poor

0%

5%

10%

15%

106

20%

25%

30%

Table 16
Recruitment and selection process
Particular

NO OF RESPONDENTS

PERCENTAGE

35

70

No

15

30

TOTAL

50

100

Yes

Inference
In recruitment and selection process 70% of the respondents says YES and
30% of the respondents says NO

107

No

Yes

0%

10%

20%

30%

40%

50%

108

60%

70%

80%

Table19
Adequate pool of quality applicants
Particular

NO OF RESPONDENTS

PERCENTAGE

23

46

No

27

54

TOTAL

50

100

Yes

Inference
HR provides an adequate pool of quality applicants 46% of the
respondents says YES and 54% of the respondents says NO

109

54%
52%
50%
48%
46%
44%
42%
YES
NO

110

Table20
Interview Process and Other Selection Instruments
Particular

NO OF RESPONDENTS

PERCENTAGE

poor

adequate

27

54

excellent

20

40

TOTAL

50

100

Inference
From above table 6% of the respondent says that interview process and other
selection instruments are poor 54% of the respondent says that interview process
and other selection instruments are adequate and 40% of the respondent says that
interview process and other selection instruments are excellent

111

excellent

adequate

poor

0%

10%

20%

30%

112

40%

50%

60%

Table 21
Women employee
Particular

NO OF RESPONDENTS

PERCENTAGE

Experience

17

34

Talent

27

54

job securers

12

TOTAL

50

100

Inference
34% of the women respondents are selected based on experience 54% of the
respondents are selected based on talent and 12% of the respondents are selected
based on job securers

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100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Experience

Talent

114

Talent

FINDINGS

115

Finding:
1. From the above table, it is found that 54% of the respondents are male and

46% of respondents are female

2. From the above table, it is found that 38% of the respondents are in the age

group of 15-35, 46% in the age group of 36- 55 years, 16% in the age group
of 56-75 years.
3. For selection method 34% of the respondents are in need of personal

interview 30% of the respondents are in need of telephonic interview and

36% of the respondents are in need of Hr interview
4. 28% of employee respondents recruitment and selection is based on age 48%

of employee respondents recruitment and selection is based on qualification

and 24% of employee respondents recruitment and selection is based on
experience
5. 34% of the respondents says that recruitment takes place during vacancy

30% of the respondents says during retirement of the employee and 36% of
the respondents says that due to disable of employee
6. From above table 47% of the respondents are in need of transfer 22% of the

respondents are in need of promotion and 21% of the respondents are in

need of recommendation in internal source
7. 54% of the respondent says motivation level is good 34% of the respondents

says motivation level is satisfactory and 12% of the respondents says

motivation level is bad
8. In case of external sources 28% of the respondents are need of more
advertisement 44% of the respondents are need of private employment
consultants and 28% of the respondents are need of campus interview

116

9. 28% of the respondents are in need of Aptitude, Intelligence, Proficiency

and Proficiency, Interest, Personality, 24% of the respondents are in need of
Intelligence, Proficiency, Interest and 20% of the respondents are need of
Interest, Personality, Aptitude
10. From above table 8% of the respondents are based on structured interview

4% of the respondents are based on unstructured interview 28% of the

respondents are based on depth interview 20% of the respondents are based
on stress interview 8% of the respondents are based on board interview and
40% of the respondents are based on group interview
11.From above table 10% of the respondents are employee referrals 8% of the
respondents are advertisement in local/national papers 24% of the
respondents are government employment exchange 20% of the respondents
are professional journals 4% of the respondents are professional bodies and
20% of the respondents are recruitment consultants
12. 12% of the respondents are stressed 60% of the respondents are anger and
28% of the respondents are irritation are the constraints faced during
recruitment
13.The above table reveals that the respondents had given 1st rank to the
intelligence, proficiency.
14. 20% of the respondents are in stress 54% of the respondents are in anger and

26% of the respondents are in irritation. These are the constraints faced by
the employee while selecting the candidates
15. 20% of the responds received from less than 5days 34% of the responds
received from 5-10days 30% of the responds received from 10-15days and
16% of the responds received from more than 20days.
16.The requirement process of organization is 50% of the respondents says
YES and 50% of the respondents says NO
17.The organization affirmative action needs clarified and supported in
selection process 0% of the respondents are poor 54% of the respondents are
adequate and 46% of the respondents are excellent
117

18.In recruitment and selection process 70% of the respondents says YES and
30% of the respondents says NO
19.HR provides an adequate pool of quality applicants 46% of the respondents
says YES and 54% of the respondents says NO
20. From above table 6% of the respondent says that interview process and other

selection instruments are poor 54% of the respondent says that interview
process and other selection instruments are adequate and 40% of the
respondent says that interview process and other selection instruments are
excellent
21. 34% of the women respondents are selected based on experience 54% of the
respondents are selected based on talent and 12% of the respondents are
selected based on job securers

118

SUGGESTION

119

SUGEGESTION:
1. Tests done by the organization can be continued even though it is not satisfied b
employee
2. Reference check can be made by the organization also for upcoming freshers and
employee coming for recruitment process.
3. Recruitment and selection policy can be changed with accordance to employee choice.
4. Working environment can be made better.
5. The procedure should be under the framework of recruitment and selection policies
6. The recruitment and selection programmers should be evaluated periodically.

120

CONCULSION

121

Conclusion:
Recruitment and selection is the first and foremost process which plays a vital role in
each and every organization. It has been found that most of the employees are satisfied with the
recruitment and selection process carried out in the organization.
Recruitment and selection is a continuous process. The organization is recruiting and
selection the right people at right time at the lower cost. The procedure of the organization is
under the framework of recruitment and selection policies. The recruitment and selection
programmers are evaluated periodically.

122

BIBILOGRAPHY
&
APPENDIX

123

BIBLIOGRAPHY

WEBSITE:
www.google.com
www.wikipedia.org
www.imperialgranites.com
www.indian autogas.com
www.autogas india.com
BOOKS:
Human Resource Management- J. Jayasankar

124

QUESTIONNARIES
A STUDY ON SELECTION AND RECRUITMENT PROCESS
ON INDIAN AUTO GAS LIMITED
NAME:
AGE:
SEX:
DESTINATION:
1. How does an interview done for a selection of employee?
a. Personal interview
b .Telephonic interview
c. Hr interview
2. Recruitment and selection of employees based on
a. Age b. Qualification c. Experience
3. When does recruitment takes place
a. vacancy b. retirement c. disable of employee
4. Selection of candidates through internal source?
a. Transfer b. Promotion c. recommendation by existing employee
5. Internal source of recruitment how far they motivate employee?
a. Good b. satisfactory c. bad
6. How candidates are selected through external sources?
a. Advertisement b. employee exchange c. private employment
consultants d. campus interview
7. Which type of test you attended n interview?
a. Aptitude, intelligence, proficiency
b. Intelligence, proficiency, interest
c. proficiency, interest, personality
d. interest, personality, aptitude
8. Type of interview attended?
a. Structured b. unstructured
c. depth
d. stress
e. board
f. group
125

9. Which of the following recruitment method & procedures is followed in

your company?
a. Employee referrals b. advertisement in local/national papers
c.
government employment exchange d. professional journals e.
professional bodies f. recruitment consultants
10. What are the constraints do you face during recruitment?
a. Stress b. anger c. irritation
11. What is the percentage of weightage do you give to the following factors?
a. Aptitude, intelligence, proficiency
b. intelligence, proficiency, interest
c. proficiency, interest, personality
d. interest, personality, aptitude
12. What are the constraints do you face while selecting candidates?
a. stress b. anger c. irritation
13. How much time did the company take to respond to your application
a. less than 5days b. 5-10days c. 10-15days d. 15-20days e. more
than 20days
14. How many years of work experience?
a. 0-5years

b. 5-10years c. 10-15years

d.more than 15years

15. Does the organization clearly define the position objectives, requirements
and candidates specifications in the requirement process
a. yes

b. No

16. How well are the organization affirmative action needs clarified and
supported in selection process?
a. poor b. adequate c. excellent

126

17. Is the organization doing timeliness recruitment and selection process

a. yes

b. No

18. Does HR provides an adequate pool of quality applicants?

a. Yes

b. No

19. Rate the effectiveness of interview process and other selection

instruments, such as testing?
a. poor

b. adequate

c. excellent

20. How women are selected for this concern?

a. experience b. talent c. job securers
21. Qualification of women in the concern
a. schooling b. ug c. pg

127