IOC: Creating energy for India
New Delhi 31-Oct-2010
Mr. B M Bansal,
Chairman, IndianOil, being awarded by the Hon'ble Prime Minister of India Dr. Manmohan Singh.
IndianOil (IOC) is India's flagship national oil company with business interests straddling the entire hydrocarbon value chain - from refining, pipeline transportation and marketing of petroleum products to exploration & production of crude oil & gas, marketing of natural gas, and petrochemicals. It is the leading Indian corporate in the Fortune 'Global 500' listing, ranked at the 125th position in the year 2010.
With over 34,000-strong workforce, IOC has been helping to meet India's energy demands for over half a century. With a corporate vision to be the Energy of India, IOC closed the year 2009-10 with a sales turnover of Rs. 271,074 drore and profits of Rs 10,221 crore.
At IOC, the operations are strategically structured along business verticals - Refineries, Pipelines, Marketing, R&D Centre and Business Development - E&P, Petrochemicals and Natural Gas.
To achieve the next level of growth, IOC is currently forging ahead on a well laid-out road map through vertical integration— upstream into oil exploration & production (E&P) and downstream into petrochemicals - and diversification into natural gas marketing and alternative energy, besides globalisation of its own downstream operations. Having set up subsidiaries in Sri Lanka, Mauritius and the United Arab Emirates (UAE), IndianOil is simultaneously scouting for new business opportunities in the energy markets of Asia and Africa.
With facilities at multiple locations and ever-expanding market opportunities, IOC is poised to become an integrated company with steady forays into Oil Exploration & Production, Petrochemicals and Renewable Energy. IndianOil and its subsidiary (CPCL) account for over 48 per cent petroleum products market share, 34 per cent national refining capacity and 71 per cent downstream sector pipelines capacity in India.
With a steady aim of maintaining its position as a market leader and providing best quality products and services, IOC is currently investing Rs 47,000 crore in a host of projects for augmentation of refining and pipelines capacities, expansion of marketing infrastructure and product quality upgradation.
The IOC Group of companies owns and operates 10 of India's 20 refineries with a combined refining capacity of 62.7 million metric tonnes per annum (MMTPA, .i.e. 1.25 million barrels per day). The company's cross-country network of crude oil and product pipelines, spanning 10,899 km and the largest in the country, meets the vital energy needs of the consumers in an efficient, economical and environment-friendly manner.
It has a portfolio of powerful and much-loved energy brands that includes Indane LPGas, SERVO lubricants, XtraPremium petrol, XtraMile diesel, etc. Validating the trust of 56.8 million households, Indane has earned the coveted status of 'Superbrand' in the year 2009.
IOC has a keen customer focus and a formidable network of customer touch-points dotting the landscape across urban and rural India. It has 18,643 petrol and diesel stations, including 2,947 Kisan Seva Kendras (KSKs) in the rural markets. With a country-wide network of 35,600 sales points, backed for supplies by 140 bulk storage terminals and depots, 98 aviation fuel stations and 88 LPGas bottling plants, IOC services every nook and corner of the country. Indane is present in almost 2764 markets through a network of 5095 distributors. About 7,593 bulk consumer pumps are also in operation for the convenience of large consumers, ensuring products and inventory at their doorstep.
IndianOil's ISO-9002 certified Aviation Service commands an enviable 63 per cent market share in aviation fuel business, successfully servicing the demands of domestic and international flag carriers, private airlines and the Indian Defence Services. The Corporation also enjoys a 65 per cent share of the bulk consumer, industrial, agricultural and marine sectors.
In Petrochemicals, IOC is investing substantially during the year 2011 -12. It offers a full slate of products including Linear Alkyl Benzene (LAB), Purified Terephthallic Acid (PTA), and an extensive range of polymers. IOC holds a significant market share of LAB in India and exports to 19 countries. A state-of-the-art 120,000 tonnes per annum Styrene Butadiene Rubber (SBR) unit is underway at Panipat. The SBR unit will further strengthen the company's presence in the specialty petrochemicals sector.
In Exploration & Production, the company's domestic portfolio includes 11 oil and gas blocks and 2 CBM blocks in India including 2 blocks awarded to IOC and its consortium partners under NELP-VIII (blocks GK-OSN-2009/1 and GK-OSN-2009/2). The overseas portfolio includes nine blocks spread across Libya, Iran, Gabon, Nigeria, Timor-Leste and Yemen. Exploration activities are at various stages of progress. In addition, as part of consortium, IOC has been awarded Project -1 in the Carabobo heavy oil region of Venezuela. To boost E&P activities, IOC has incorporated Ind-OIL Overseas Ltd. - a special purpose vehicle for acquisition of overseas E&P assets - in consortium with Oil India Ltd.
Natural Gas marketing is another thrust area for IndianOil with special focus on City Gas Distribution (CGD) business. The Corporation has entered into franchise agreements with several CGD players to market Compressed Natural Gas through its retail outlets.
