Indian Oil Corporation

For the America-based oil company, see Indian Refining Company.
Indian Oil Corporation Limited
इंडियन ऑयल निगम लिमिटेड
Public
Traded as BSE: 530965
NSE: IOC
Industry Oil and gas
Founded 1964
Headquarters New Delhi India
Area served
 India
Key people
 Mr. B.ASHOK (Chairman)
Products Fuels, lubricants, petrochemicals
Revenue Increase US$ 81.55 billion (2014)[1]
Increase US$ 3.30 billion (2012)[1]
Profit Decrease US$ 1.18 billion (2014)[1]
Total assets Increase US$ 44.54 billion (2014)[1]
Total equity Increase US$ 11.59 billion (2012)[1]
Owner Government of India
Number of 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 88th largest corporation, according to the Fortune Global 500 list, and the 2nd 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 INR37.54 billion, and the Government of India earned an excise duty of INR232.53 billion and tax of INR10.68 billion.

The company is mainly controlled by Government of India which owns approximately 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]

History

IndianOil began operations in 1958 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]

Products and services

IndianOil service station in Pipili, Odisha

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:

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

Operations

Indian Oil truck carrying fuel across the Himalayas
Indian Oil truck at North Pullu, entrance to Nubra Valley, Ladakh. 2010

Refineries

IOCL has various refineries across India.

In Assam

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 IndianOil’s 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 June 2015.[8]

Group companies and joint ventures

International rankings

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 upstream 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 noncompetitive 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 body20.13%
Insurance Companies01.50%
Individual shareholders0.83%
Trusts0.42%
Foreign Institutional Investors (FII)0.13%
Others0.07%
Total100.0%

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]

See also

References

  1. ↑ 1.0 1.1 1.2 1.3 1.4 1.5 "Financial Statement - Indian Oil Corporation Limited". Bloomberg Businessweek. Retrieved 27 January 2014.
  2. ↑ "Global 500". Fortune Global 500. Retrieved 31 Aug 2013.
  3. ↑ 3.0 3.1 3.2 "Shareholding Pattern". Indian Oil. 31 December 2013. Retrieved 27 January 2014.
  4. ↑ List of Maharatna, Navratna and Miniratna CPSEs |. Dpe.nic.in. Retrieved on 2013-07-28
  5. ↑ http://www.business-standard.com/article/companies/ioc-raises-500-mn-in-dollar-bond-issue-113072900513_1.html
  6. ↑ SHRAWAN (2013-05-29). "ANNEX IV: LIST OF AWARD WINNERS OF RAJIV GANDHI NATIONAL QUALITY AWARDS" (PDF). http://www.bis.org.in''. New Delhi: Bureau of Indian Standards. Retrieved 2014-05-15.
  7. ↑ "IOC mulls expanding capacity at Panipat refinery to 21 million tonne". The Economic Times. Retrieved 29 November 2013.
  8. ↑ "Delay in commissioning of Paradip refinery". 11-08-2012. Check date values in: |date= (help)
  9. ↑ "India's top 10 brands". Rediff.com. Retrieved 26 October 2010.
  10. ↑ 10.0 10.1 "IOCL - Annual Report 2012-13" (PDF). BSE India. Retrieved 26 January 2014.
  11. ↑ "HighTea Chat Transcript with Mr. Biswajit Roy: GM (HRD), Indian Oil Corporation". Times Jobs. 22 January 2014. Retrieved 26 January 2014.
  12. ↑ "Listing Information - Indian Oil Corporation Limited". Economic Times. Retrieved 27 January 2014.
  13. ↑ "Alexander's Gas & Oil Connections – India to build up storage of crude oil". Gasandoil.com. 21 September 2004. Retrieved 26 August 2010.
  14. ↑ "Strategic oil reserves to come directly under Govt". The Hindu Business Line. 2 April 2006. Retrieved 26 August 2010.
  15. ↑ 20 June 2007, 09.18 pm IST, PTI (20 June 2007). "'India to form crude oil reserve of 5 mmt'- Oil & Gas-Energy-News By Industry-News-The Economic Times". Economictimes.indiatimes.com. Retrieved 26 August 2010.

External links