The IOC is divided into many divisions per se 1) The Refineries Division 2) Marketing Division 3) Assam Oil Division 4) IBP Division 5) Pipelines Division and subsidiaries like Bongaigoan Refineries and Petro Chemical limited, Chennai Petroleum Corporation Limited, Indian Oil Technologies limited, Indian Oil Mauritius Limited, Indian Oil Middle East FZE, Lanka IOC Private Limited.
It is also a major supplier of aviation fuel supplying many kinds of turbine fuels and caters to over 62% of the aviation needs of the country refuelling over 1500 flights a day. Indian Oil is India's first ISO-9002 certified oil company conforming to stringent global quality requirements of aviation fuel storage & handling. Indian Oil Aviation also caters to the fuel requirements of the Indian Defence Services, besides refuelling
Below is a SWOT analysis for this oil major
Strengths
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Nearly 50 % market share: Indian Oil sold 58.3 million tonnes of petroleum products during 2007-08, registering 8.7% growth in volumes as compared to the previous year. Indian Oil's market share increased by 1.1% to touch 48.9% in the oil industry. Exports during the year touched 3.3 million tonnes recording a 8.5% growth over last year.
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Pioneering initiatives: Volume growth was strongly backed by initiatives in rural marketing, expansion in retail network, seamless brand portfolio management.
- Major Infrastructure projects completed and many in progress:
Completed Projects
- LPG treatment facilities at Barauni Refinery based on technology developed jointly by IndianOil R&D and Engineers India Ltd.
- Yield and energy optimisation in atmospheric & vacuum distillation units (AVU-I & AVU-II) at Barauni Refinery
- Air preheater in Visbreaker unit at Mathura Refinery- Revamp of continuous catalytic reforming Unit (CCRU) at Panipat Refinery
- LPG and Gasoline yield improvement in RFCC unit at Panipat Refinery
- Provision of six mounded bullets at Koyali Refinery
- Modernisation of first tank-wagon gantry at Haldia Refinery
- Recovery of Hydrogen from CCRU off gases at Gujarat Refinery
- Augmentation of Bongaigaon-Siliguri section of Guwahati-Siliguri Pipeline
- Crumb rubber modified bitumen (CRMB) plant at Mathura
- Automation of 1038 retail outlets
On going Projects
- Capacity expansion of Panipat Refinery from 12 to 15 MMTPA
- Naphtha cracker with downstream polymer units at Panipat
- Hydrocracker for improvement in diesel quality and distillates yield at Haldia Refinery
- Residue upgradation and petrol/diesel quality improvement project at Gujarat Refinery
- Petrol quality upgradation projects at Panipat, Mathura, Barauni, Guwahati and Digboi refineries
- Paradip-Haldia crude oil pipeline
- Koyali-Ratlam product pipeline
- Augmentation of Mundra-Panipat crude oil pipeline from 6 to 9 MMTPA
- Dadri-Panipat R-LNG spur pipeline
- Panipat-Jalandhar LPG pipeline
- New depot at Haldwani
- Automation of retail outlets
New Projects
- 15 MMTPA refinery project at Paradip
- High-sulphur crude maximisation project at Barauni Refinery
- Paraxylene project at Gujarat & Haldia refineries
- Coker project at Haldia & Mathura refineries
- Chennai-Bangalore product pipeline
- LPG import facilities at Ennore
- Tap-off point on Koyali-Ratlam pipeline at Bangrod
- Large network of crude oil, R-LNG ad LPG pipelines across India:
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Company owns 195 million sq feet of retail space a big advantage over its competitors.
- Owns the highest number of refineries in India
- Company is a big contributor to government Exchequer (nearly 60000 Cr) in form of duties and taxes and also has a great history of distributing dividends.
The company has distributed dividentds for the last 42 years consecutively.
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Global Footprints: In Mauritius and Sri Lanka, IndianOil's subsidiaries, IndianOil (Mauritius) Limited (IOML) and Lanka IOC(LIOC) performed creditably during the year. In Mauritius, IndianOil (Mauritius) Ltd. (IOML) emerged as the leader in the highly competitive aviation fuel business during the year, with a market share of 35%. The overall product sales grew by 19.3% to 195 thousand kilolitres (KL) as compared to 163 thousand KL in 2006-07, while SERVO lubricants grew by 46% to 142 KL. Five new retail outlets were commissioned during the year, taking their total number to 13. With the commissioning of two new bulk storage tanks at our existing terminal at Mer Rouge, the total storage capacity of the terminal has gone up to 24 thousand tonnes.
Weaknesses
- Subject to government regulations.
- Very high rate of under recovery from debtors.
- Exploration is hampered by non-availability of state of art technology.
- Till now R&D has not impacted practically on the business. Though R&D budgets are increasing every year.
Opportunities
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Petrochemicals: India Oil Corporation has emerged as the most preferred Linear AlkylBenzene (LAB) supplier in the domestic market with two of the biggest buyers committing a major portion of their sourcing to the Corporation. IndianOil is already the second biggest supplier to Unilever. Globally, IndianOil’s LAB has set its footprint in China, Pakistan and The Philippines too during the year, taking its presenceto nine countries. The entire sale of Purified Terephthalic Acid (PTA) during the year was made to domestic customers. Paraxylene produced at Panipat Refinery was exported for the first time to Indonesia, Thailand and Malaysia. Indian Oil is also examining various proposals for production of niche high-value specialty petrochemicals.
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Bio-Feuls: A business plan for entry into the bio-diesel value chain has been finalised during the year. In this direction, a major milestone was achieved by signing an MoU with the Government of Chhattisgarh for the formation of a joint venture company to facilitate bio-diesel production on commercial scale. The State Government would be allocating a minimum of 30,000 hectares of land to this JV for this purpose. Efforts are being made to acquire more arid and waste lands from other States.
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Non-Fuel Retail (NFR) : The NFR model developed will provide for sharing of revenue streams with the dealer network to enable unlocking of existing retail space value that both Indian Oil and its dealers command. Several alliances have already been forged with leading brands like Hindustan Unilever Ltd, Dabur, ICICI Bank, Ferns & Petals, MTR Foods, PVR Cinema, UAE Exchange, Reliance Capital, DHL Couriers, etc to name a few.
Threats
- Depleting fossil fuel resources across the world.
- High international crude prices.
- Problems in supply chain due to presence of land mafia.
- Terrorism is a major security threat to the pipelines.
- Elections (Increase in fuel prices during elections is opposed by the governments)
- Heavy dependence on bond markets to offset losses due to high international prices. Weak financial markets are eroding the ability to offset losses through sale of bonds.
