Indian Oil Corporation Limited in the year 2013-14, has once again set standards in the downstream petroleum market with enhanced market and mindshare. As one of the top Indian Corporates in the Fortune ‘Global 500’ listing ranked at 88, IndianOil has proved its ability to uphold its leadership in the downstream petroleum sector. As a testimony of the trust that millions of customers bestow upon IndianOil, the Readers Digest ‘Trusted Brand Award 2013’, for the seventh consecutive year was given to IndianOil.
IndianOil was felicitated by IFR Asia with the 'Indian Market Capital Deal of the Year award'. During the year IndianOil also became the second largest player in the Domestic Petrochemical sector with all time high sales and exports of Petrochemicals.
Core Performance
Marketing
IndianOil maintained its position as the market leader for the year 2013-14 with domestic sales of 70.0 million metric tonnes (MMT) of petroleum products. To keep pace with the high growth in the retail business, over 1,700 retail outlets (including over 750 KSKs) were commissioned during the year, raising their total number to over 23,993. IndianOil increased its market share in LPG segment during the year and new initiatives were launched, such as portability of LPG connection within and across companies and sale of 5-kg free-trade LPG cylinders through select ROs and Kirana stores.
84 lakh new LPG domestic connections were released during the year thereby increasing IndianOil’s customer strength to nearly 818 lakhs. 106 new LPG distributorships and 478 RGGLVs were commissioned in the year gone by.
IndianOil’s Aviation Service maintained its leadership during the year by further improving its market share, largely aided by aggressive bidding in the international sector and strong tie-ups with major players in the domestic sector. The Company once again proved its credentials as a reliable partner of the army and para-military agencies by carrying out nearly 2,300 aircraft refuellings during the relief and rescue operations undertaken in Uttarakhand in June 2013.
Refineries IndianOil refineries achieved a crude throughput of 53.13 MMT during the year with a capacity utilization of 98%. The combined distillate yield of all IndianOil refineries during the year sustained at 78.1%. As many as nine new crudes (including high TAN crudes) were processed for the first time in 2013-14. 26 new crudes were included in the Trial crude basket after evaluation for suitability to all Refineries
Risk-Based Inspection (RBI) and Reliability Centered Maintenance (RCM), crucial strategic initiatives were implemented for improving the asset integrity and reliability of the refineries. IndianOil's relentless efforts towards energy conservation resulted in sustaining overall specific energy consumption at 55.8 MBTU/BBL/NRGF (MBN) in 2013-14 which was through implementation of various energy saving schemes and close monitoring of energy parameters. IndianOil refineries registered lowest energy consumption during the year.
The Paradip Refinery project is nearing completion. As on March 2014, 96.1% overall Physical Progress and 94.0% overall construction progress has been achieved. The project is targeted to be commissioned progressively from mid 2014.
The 120 KTA SBR manufacturing facility, a joint venture project of IndianOil, TSRC Corporation, Taiwan and Marubeni Corporation, Japan was commissioned at Panipat during this year. The project will provide a major boost to the domestic Rubber Industry and also provide an opportunity to optimize the logistics and inventory carrying costs of domestic consumers.
To further its agenda on expansion and growth, IndianOil has made Capital expenditure plans worth Rs.56, 200 crore in the 12th plan period (2012-17). The Corporation has already spent Rs. 26,038.76 crore during the 12th plan period till March 2014.
Pipelines The Pipelines Division has done a commendable job in meeting the requirements of the Refineries and Marketing Division by transporting 73.08 MMT of crude oil and finished products in the year 2013-14. Nearly 13 pipeline projects are under implementation at an approved cost of about Rs. 7,000 crore. Upon completion, these projects would result in additional length of over 3,200 km and added capacity of about 15.5 MMTPA.
In the area of energy optimization in pipeline operations, reduction in specific energy consumption of pipelines was achieved through optimum use of pumping units and drag reducer.
Research & Development IndianOil’s R&D Centre has been consistently developing technologies to facilitate the optimum utilization of the available resources to ensure energy sufficiency and energy independence. The R&D Centre has developed a novel concept on integrated Gasification for optimal Gasifier design which has recently been granted the US Patent. IndianOil is also actively focusing on fast track commercialization of indigenous technologies that will help maximize its output across the entire hydrocarbon value chain.
Bio-Energy Research Centre has signed an agreement with Lanzatech to develop micro-algae technology which entails development of an acetate-to-lipid pathway and evaluation of its viability for CO2 gas fermentation technology.
During the year 130 lubricant formulations have been developed and 48 product approvals from OEMs & Defence obtained. Research activities in year 2013-14 have resulted in filing of 54 new patents, surpassing our previous year’s record and also obtained grant of 11 patents.
The year 2013-14 yielded significant breakthrough in the demonstration and commercialization of some of the indigenously developed refinery technologies. In the lubricant area, R&D further expanded the OEM approval base of SERVO lubricants with the development of future ready products. During the year, several new initiatives have also been taken in the area of futuristic / alternative energy.
Benchmarking of various IndianOil polymer grades (PP Raffia, PP BOPP, PP Yarn grade, PP Battery grade, HDPE Raffia, HDPE Blow molding grade, HDPE Pipe grade etc.) was successfully completed during the year for their better acceptability. Alternative vendor development for additives completed to increase the vendor base.
In order to harness futuristic energy sources, initiatives are being taken for setting up of an Indian Oil Centre for Renewable Energy (i-CARE) at Manesar. Besides, bio-energy, this Centre will also focus on gasification technology, solar, thermal and hydrogen including fuel cells.
New Businesses Besides consolidation in core areas, IndianOil took big strides in new businesses during the year 2013-14.
Integration Initiatives Exploration & Production (E&P) IndianOil presently has participating interest in 13 domestic and 11 overseas blocks. Out of 13 domestic blocks, IOC is operator with 100% participating interest (PI) in 2 onshore exploration blocks in Cambay basin. In the remaining 11 domestic blocks, IndianOil holds a non-operating participating interest ranging between 20% and 30%.
IndianOil through its wholly owned affiliate IndOil Montney Ltd, Canada have signed transaction agreements with Progress Energy Canada Ltd. (Progress Energy Canada), PETRONAS Carigali Canada BV (PCC BV) wholly owned affiliates of Petroliam Nasional Berhad (PETRONAS) for the acquisition of a 10 percent interest in Progress Energy Canada’s LNG-destined natural gas reserves in northeast British Columbia and in the proposed Pacific NorthWest LNG Ltd. (PNW LNG) export facility on Canada’s West Coast.
PetrochemicalsDuring the year 2013-14 highest ever sales of petrochemicals 2.114 MMT has been achieved against 2.072 MMT during 2012-13. The sales revenue of Rs. 19,000 Crores was achieved during 2013-14 compared to Rs. 16,534 Crores last year, registering 15.6% growth.
Twenty One new exports destinations were added during the year including Armenia, Azerbaijan, Burundi, Cameroon, Colombia, Congo, Djibouti, El Salvador, Guatemala, Guyana, Libya, Lithuania, Madagascar, Mozambique, Uganda and Zimbabwe.
Six new PE/PP grades were successfully developed during the year.
Diversification Initiatives Gas The total sales (RLNG + LNG) grew by 2.0% to 3.219 MMT and a growth of 37% was recorded in the sale revenue.
Heads of Agreement has been signed with 17 new customers , totaling 1.51 MMTP A RLNG, for future Gas supplies in Delhi/NCR, Badodara, Dahej, Bhopal, Allahabad, Chandigarh, Karnataka, Chennai region from upcoming Dahej Expansion Terminal, Ennore Terminal & Mallavaram- Bhilwara Pipelines.
IndianOil has recorded a growth of 18.1% in total LNG Sales over the last year. Two new customers added for LNG supplies. HoA has been signed with three new LNG customers for supply of 13,800 MTPA LNG.
IndianOil has recorded a growth of 18.1% in total LNG Sales over the last year. Two new customers added for LNG supplies. HoA has been signed with three new LNG customers for supply of 13,800 MTPA LNG.
Beyond Business As a responsible corporate citizen, IndianOil spends upto 2% of its retained profit of the previous year on community development activities through a multi-faceted approach. In the last five decades, IndianOil has supported innumerable social and community initiatives in India, ranging from environmental and healthcare projects to social, cultural and educational programmes.
With a view to reduce water footprint of the organisation and to increase water availability through rainwater harvesting, IndianOil commissioned 57 rain water harvesting systems across the corporation during the period April’13-March’14.
The foundation stone for development of tourist facilities at Konark was laid by the Hon’ble Minister, P&NG, in July 2013. IndianOil Foundation is also undertaking a programme called ‘Cultivating Awareness Towards Conservation of Heritage (CATCH)’ to create interest about our national heritage among the school students.
During 2013-14, about Rs. 0.5 crore has been disbursed under the Sports Scholarship Scheme. 2,600 Scholarships were awarded on merit-cum-means basis to students pursuing full-time courses in 10+/ITI, Engineering, Medical and Business Administration. 150 scholarships for a period of 3 years and kits in 19 games/sports are awarded to upcoming junior players between 14 to 19 years of age.
IndianOil has launched Cancer Care Initiative and signed an MoU with TATA Medical Centre Trust & TATA Eastern Medical Trust for development of Phase-II of TATA Medical Centre, Kolkata for addition of 250 beds in a new building. It will have well-trained professional staff and a comprehensive Cancer Care Center equipped with modern facilities. The new facility will be named: ''IndianOil TATA Care Centre''.
SNAPSHOT OF PHYSICAL PERFORMANCE (2013-14) a) Marketing -
Domestic Sales – 70 MMT
No. of new ROs commissioned - 953
No. of KSKs - 764
No. of new LPG connections added- 84.0 lakh
Indane Distributorships under RGGLVY commissioned in 2013-14 – 478
b) Refineries -
IOC Refineries Capacity Utilization - 98%
Crude Throughput - 53.13 MMT
Distillate yield – 78.1%
Specific Energy Consumption – 55.8%
c) Pipelines -
Total Length - 11,080 KM
Capacity – 80.5 MMTPA
d) R&D -
New patents granted during 2013-14 – 54
Patents – 292
No. of formulations developed – 130 lubricant formulations
e) Petrochemicals -
Sales – 2.114 MMT
f) Gas -
Total Sales (RLNG + LNG) – 3.219 MMT (2.0 % growth)
g) E&P - No. of blocks -
Domestic – 13
Overseas - 11
Snapshot of Marketing Infrastructure - With 41640 touch points, IndianOil owns 51.5% of the country's marketing infrastructure.
- LPG Bottling Plants - 90 (48.4 %)
- Retail Outlets – 23993 ROs (including KSK outlets) (45.9%)
- LPG Distributorships - 7035 (50.6 %)
- RGGLV Distributorships – 1421 (46.8 %)
- Aviation Fuel Stations - 98 (48.0 %)
- SKO/LDO Distributorships - 3930 ( 59.7 %)
- Terminals / Depots - 135 ( 42.2 %)
- Bulk Consumer Pumps - 6359 ( 86.0 %)
- (Figures in brackets indicate % share in industry)
- Capital Plan Expenditure during 2013-14 - Rs 16,661 crore
- Plan expenditure during XI plan - Rs 48,655 crore
