PROJECT

REPORT
ON

IDENTIFICATION
OF

“MAJOR DRIVERS”
AND

THERE BY POTENTIAL
ASSESSMENT
OF

AUTO LPG
IN

1
 PATNA
COMPLETED AT
INDIAN OIL CORPORATION LIMITED

(MARKETING DIVISION)

BIHAR STATE OFFICE, PATNA

SUBMITTED
BY

AJAY KUMAR
ROLL NO. -42

UNDER SWEET GUIDANCE OF

DR. N.K.JHA

PROFESSOR (DEPT. OF A.E &C)

PATNA UNIVERSITY

IN PARTIAL FULFILLMENT

OF

MBA (MARKETING)

2
 FROM

ON JUN 2010 TO JULY 201O

( FOUR WEEKS)

Acknowledgement

I wish to express my sincere thanks to Indian oil Corporation limited for

allowing me to work in an open and free manner in their organization. I am
also thankful to my project guide, SHRI SITESH KISHAN ,DEPUTY
MANAGER (LPG-E),BSO PATNA AND SHRI U P CHATTOPADHYAY,CHIEF
LPG MANAGER ,BSO, PATNA for their continuous support throughout my
project work without which the true and accurate understanding of the
project would not have been possible.

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 CONTENT
1. Introduction to the organization
• Objectives
• Vision
• Financial performance
• Marketing
• Products
• Refineries
• Group companies
• Joint ventures
• Brands at IOCL

4
 • Competitors
1. Auto LPG
• Alternative fuels
1. Survey report
2. Scope of Auto LPG in patna
3. Major Drivers
• Pollution
• Cost
• Demand
• Govt. norms
• Retrofttment
• Reliability of supply
• Demand centre
1. Limitation
2. Conclusion
3. References

INTRODUCTION TO THE ORGANISATION

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Indian oil is an Indian public – sector petroleum company. It is the
commercial enterprise , ranking 105 th on the fortune global
listing(2009),consistly improving its position in the fortune ‘Global
500’ listing.it moved 11 places from the year 2008.It is the
highest ranked Indian company in the list. It is also the 18 th
largest petroleum company in the world.

The company began operation in 1959 as Indian oil company

limited. The Indian oil corporation was formed in 1964 ,with the
merger of Indian refineries limited. IndianOil and its subsidiaries
account for approximately 48% petroleum products market share, 34%
national refining capacity and 71% downstream sector pipelines capacity
in india. The IndianOil Group of companies owns and operates 10 of India's
20 refineries with a combined refining capacity of 60.2 million metric tonnes
per annum (MMTPA, .i.e. 1.2 million barrels per day). These include two
refineries of subsidiary Chennai Petroleum Corporation Ltd.

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The Corporation's cross-country network of crude oil and product pipelines,
spanning over 10,550 km and the largest in the country, meets the vital
energy needs of the consumers in an efficient, economical and
environment-friendly manner. IndianOil is currently investing Rs. 47000
crore in augmentation of refining and pipeline capacities, expansion of
marketing infrastructure and product quality upgradation.Indian Oil
Corporation Ltd. is India's largest company by sales with a
turnover of Rs. 271,074 crore and profit of Rs. 10,221 crore for
the year 2009-10. The company has employee strength of almost
36,500 employee. The company is headed by the Chairman and
Director (Planning & Business Development) Mr. Brij moh an
Bansal .Mr. Bansal is also Chairman of Green Gas Limited, a JV of
IndianOil and GAIL (India) Ltd. for city gas business; and IndianOil
Petronas Private Ltd., a JV of IndianOil and Petroliam Nasional Berhad
(Petronas), Malaysia, for LPG import & marketing business in India.

Mr. Bansal’s expertise in the oil & gas sector has been sought at many
international forums. He is the first Chairman of India Chapter of the
International DME Association (IDA), USA, that works to promote Di-Methyl
Ether across the world. He is also Chairman Emeritus of the Bio-Diesel
Association of India. Mr. Bansal is a B.Tech in Chemical Engineering and
D.I.I.T in Process Plant Engineering from the prestigious Indian Institute of
Technology, Delhi. With over 35 years of extensive work experience in the
oil & gas sector in areas spanning business development, R&D, refining
and technical services, Mr. Bansal has been a member of the IndianOil
Board since the year 2005.

Being a public sector company , the majority stake in the company lies with
the government of india and central cabinet ministers for petroleum have a
decisive say in companies policies. IOCL with its staggering profit figures
year after year is classified as an A+ grade PSU in India.The company is
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not only contributing in terms of financial figures to the national income
but also helps in infrastructure development , Military operations,
Transportation network operation through its homogeneous network of
fuelling stations in the entire country. Indian oil operates the largest and the
widest network of fuel stations in the india. IndianOil touches millions of
lives everyday through a countrywide network of over 35,600 sales points.
They are backed for supplies by 167 bulk storage terminals and depots, 98
aviation fuel stations and 88 Indane (LPGas) bottling plants. Validating the
trust of 56.8 million households, Indane earned the coveted status of
'Superbrand' in 2009. About 7,593 bulk consumer pumps are also in
operation for the convenience of large consumers, ensuring products and
inventory at their doorstep.IndianOil operates the largest and the widest
network of petrol & diesel stations in the country, numbering 18,643
including 2947 Kisan Seva Kendras (KSK) outlets in the rural markets.
Indane cooking gas is present in 2,764 markets through a network of 5,095
Indane Distributors.
IndianOil's ISO-9002 certified Aviation Service commands almost 63%
market share in aviation fuel business, meeting the fuel needs of domestic
and international flag carriers, private airlines and the Indian Defence
Services. The Corporation also enjoys 65% share of the bulk consumer
business, including that of railways, state transport undertakings and
industrial, agricultural and marine sectors. Indian oil has a research &
development center(R & D) at Faridabad that supports, develops and
provides the necessary technology solutions to the operating divisions of the
corporation and its customers within the country and abroad.

Subsequently, Indian oil technologies limited - a whole owned subsidiary , was set up
in 2003 , with a vision to market the technologies development at Indian oil’s research
and development center. It has been modeled on the R & D marketing arms of Royal
Dutch Shell and British Petroleum.

OBJECTIVES

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.To serve the national interests in oil and related sectors in
accordance and consistent with Government policies.

. To ensure maintenance of continuous and smooth supplies of

petroleum products by way of crude oil refining, transportation
and marketing activities and to provide appropriate assistance to
consumers to conserve and use petroleum products efficiently.

. To enhance the country's self-sufficiency in crude oil refining and

build expertise in laying of crude oil and petroleum product
pipelines.

. To further enhance marketing infrastructure and reseller

network for providing assured service to customers throughout
the country.

. To create a strong research&development base in refinery

processes, product formulations, pipeline transportation and
alternative fuels with a view to minimizing/eliminating imports
and to have next generation products.

. To optimise utilisation of refining capacity and maximize

distillate yield and gross refining marg

. To maximise utilisation of the existing facilities for improving

efficiency and increasing productivity.

. To minimise fuel consumption and hydrocarbon loss in refineries

and stock loss in marketing operations to effect energy
conservation.

. To earn a reasonable rate of return on investment.

. To avail of all viable opportunities, both national and global,

arising out of the Government of India’s policy of liberalisation
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and reforms.

. To achieve higher growth through mergers, acquisitions,

integration and diversification by harnessing new business
opportunities in oil exploration&production, petrochemicals,
natural gas and downstream opportunities overseas.

. To inculcate strong ‘core values’ among the employees and

continuously update skill sets for full exploitation of the new
business opportunities.

. To develop operational synergies with subsidiaries and joint

ventures and continuously engage across the hydrocarbon value
chain for the benefit of society at large.

. To ensure adequate return on the capital employed and

maintain a reasonable annual dividend on equity capital.

. To ensure maximum economy in expenditure.

. To manage and operate all facilities in an efficient manner so as

to generate adequate internal resources to meet revenue cost
and requirements for project investment, without budgetary
support.

. To develop long-term corporate plans to provide for adequate

growth of the Corporation’s business.

. To reduce the cost of production of petroleum products by

means of systematic cost control measures and thereby sustain
market leadership through cost competitiveness.

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. To complete all planned projects within the scheduled time and
approved cost.

VISION

FINANCIAL PERFORMANCE
IndianOil’s gross turnover (inclusive of excise duty) for the year 2009-10 touched Rs.
2,71,074 crore. The Profit After Tax was Rs 10,221 crore.
For the year 2009-10, the company’s Earnings Per Share (EPS) stands at Rs 42.10 as
compared to Rs. 12.15 for 2008-09. The total net under-recovery on account of price
under–realisation on PDS Kerosene and domestic LPG in the financial year 2009-10, is
Rs. 3,159 crore. This is in comparison with a net under-realisation of Rs.Nil crore in
2008-09.
For the year 2009-10, IndianOil has accounted for cash compensation of Rs 15,172
crore, out of which Rs. 7,100 crore has been received during the year. In addition, the

11
company has been granted discount of Rs 7,548 crore received from upstream
companies, as per the under recovery sharing mechanism.
The Board of Directors has recommended a dividend of Rs 13 per share.
The Gross Refining Margin for April-March 2010 is USD 4.47 per barrel as compared to
USD 3.69 per barrel during the previous year.

MARKETING
IndianOil continued to maintain its dominance in the market clocking the highest ever
level of sales during the year 2009-10. Sales volume and market shares improved in
almost all the segments in marketing. In the high-volume, high-competition direct
consumer business, IndianOil continued to be the leader with a market share of 65%
and long-standing business ties with core sector customers were further strengthened.

During the year, BS-IV quality petrol and diesel was launched in 13 cities. Retail sales
in MS (petrol) and HSD (diesel) registered a robust growth of 14% and 9.2%
respectively, with the expansion of IndianOil’s countrywide network which touched
18,643 petrol/diesel stations (retail outlets). This includes commissioning of about 414
special-format Kisan Seva Kendra (KSK) outlets in rural markets during the year, taking
their total to 2947. The Rajiv Gandhi Grameen LPG Vitarak scheme, a new concept to
extend the availability of LPG to the rural market was launched during the year.
IndianOil enrolled 42 lakh new LPG customers during the year 2009-10, raising the total
number of Indane households to nearly 574 lakh.

Non-domestic packed LPG sales recorded a 29% growth while bulk LPG sales
registered a 45% growth over the previous year. To cater to the growing demand of
Autogas (LPG), 50 Auto LPG Dispensing Stations were commissioned during the year
taking their tally to 273. During the year, IndianOil's market share in the finished lubes
segment grew by 1.4%. SERVO lube network was also expanded to over 200 auto
stockists, 74 industrial stockists, 9 marine stockists and 27 CFAs. IndianOil's world
class SERVO lubricants were formally launched in Qatar and exports touched nine
TMTs with a growth of 34%. IndianOil continued to be the leader in the aviation
business with a market share of 62.9% among PSUs and several new businesses of
international airlines were garnered during the year.

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PRODUCTS

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 Products made by Indian oil corporation limited at several
refining station.

. Indane gas

. Auto gas

. Natural gas

. Petrol / Gasoline

. Diesel / gas oil

. ATF / jet fuel

. SERVO LUBRICANTS AND GREASES

. Agricultural spray oils

. Automotive greases

. Automotive lubricating oils

. Automotive speciality oils

. Industrial greases

. Industrial lubricating oils

. Industrial speciality oils

. Metal working oils

. Railroad oils

. Railroad greases

. Marine fuels and lubricants

. MS / Gasoline
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