Indian Oil Corporation Ltd. (IndianOil), India’s leading Fortune 'Global 500' company and flagship national oil company in the downstream sector, delivered yet another year of sterling performance in 2014-15. According to IndianOil Chairman, Mr. B Ashok, the Corporation sold 75.23 million metric tonnes (MMT) of petroleum products, including LNG; its refineries clocked a throughput of 53.6 MMT with 99% capacity utilisation, and the pipelines network registered the highest ever operational throughput of 75.7 million tonnes of crude oil and petroleum products in the year 2014-15.
Renewing its commitment to the Corporate Vision of being 'The Energy of India,' IndianOil maintained its sustained growth and market dominance in 2014-15. The Corporation's petroleum product sales volume (excluding LNG) went up by 1.8 MMT (2.5% over the previous year), while LNG (Liquefied Natural Gas) sales registered a growth of 6.3%, and petrochemicals an impressive 17%.
Besides achieving 99% capacity utilisation during the year, the Corporation's refineries together registered the best ever performance in distillate yield, fuel and loss and specific energy consumption. IndianOil's pipelines network achieved a throughput of 75.7 MMT in 2014-15, surpassing the previous best figure of 75.55 MMT in 2011-12.
PHYSICAL PERFORMANCE
Marketing
IndianOil, which caters to nearly half of India's petroleum consumption, maintained its dominance in the market place during the year 2014-15 and clocked the highest ever sales volumes. Domestic sales at 71.8 million (excluding LNG) tonnes grew by 2.5% over the previous year. The total product sales, including LNG sales, during 2014-15 were 75.23 MMT.
The total sales in MS (petrol) and HSD (diesel) registered 11.2% and 1.7% growth respectively, powered by expansion of the countrywide network of fuel stations (retail outlets, or ROs) to over 24,400, with addition of over 945 ROs during the year.
Kisan Seva Kendra (KSK) outlets in rural markets, which now number over 6,200, contributed 12.9% to the total sales.
Over 1,600 IndianOil ROs were automated during the year, taking their cumulative number to about 7,680. With this, 30 cities now have 100% automated IndianOil ROs. Also, about 1,400 ROs of the Corporation switched over to solar energy for daily operations during the year, taking their total number to 2,665.
IndianOil accounts for nearly half of the market share for LPG (Liquefied Petroleum Gas) cooking gas in the country, and has been extending the reach of its
Indane Superband to more households every year. During the year 2014-15, 72.6 lakh new LPG customers were enrolled, raising the Indane customer base to 8.8 crore. To ensure that the Government's subsidy on LPG reaches the customers directly, the modified DBTL (Direct Benefit Transfer of LPG) scheme named
PAHAL was launched across India by 1st January, 2015. As of 31st March, 2015, 82% Indane customers have become cash-transfer compliant.
SERVO, another Superbrand from IndianOil, continued to dominate the domestic lubricants market, and expanded its footprint to 26 countries across the world. Its market share in the finished lubes segment rose by 0.6% while institutional lubes sales grew by 2.3% in 2014-15.
IndianOil Aviation Service too ruled the skies during the year with 63.6% market share.
Refineries IndianOil refineries, besides achieving a crude oil throughput of 53.6 MMT and 99% capacity utilisation during the year, registered the best ever combined distillate yield of 78.8 wt.% against the previous best of 78.1 wt.% in 2013-14. Through sustained efforts in energy conservation, they also clocked the lowest overall specific energy consumption of 54.5 MBN
1 against the previous best of 55.8 MBN in 2013-14.
Paradip Refinery project, which achieved about 98% of work completion, took in crude oil in the AVU on 12th March, 2015, and commenced the commissioning process. The commissioning of the balance units is in progress.
The Corporation procured and processed 14 new grades of crude oil To widen its crude oil basket and tie up new sources
PipelinesDuring 2014-15, IndianOil's crude oil & product pipelines network not only surpassed 100% capacity utilisation but also clocked the highest ever combined throughput of 75.7 MMT. While the crude oil pipelines achieved a throughput of about 47.77 MMT, 2.97% higher than that of the previous year, the product pipelines network registered a 2.6% higher throughput at 27.84 MMT.
In addition, the gas pipelines also turned in excellent operational performance during the year. The Dadri-Panipat gas pipeline posted the highest ever throughput of about 1,360 MMSCM
2- about 16% higher than the previous year.
IndianOil emerged successful in the competitive bidding process conducted by the Petroleum & Natural Gas Regulatory Board (PNGRB) for laying the 1,167-km Ennore-Nagapattinam-Tuticorin-Madurai-Bengaluru gas pipeline at an estimated cost of Rs. 3,966 crore. Upon completion of this project as well as three other upcoming gas pipelines, that is, Mallavaram-Bhatinda, Mehsana-Bhatinda and Bhatinda-Srinagar, IndianOil would have a significant presence in gas transmission business in the country.
IndianOil's pipelines network currently spans over 11,220 km, and has a throughput capacity of 80.49 MMTPA for crude oil and petroleum products and 9.5 MMSCMD for gas. The Corporation is currently implementing projects valued at over Rs. 12,000 crore to further expand this pipelines network. Upon completion, they would add an additional capacity of about 22 MMTPA and about 6,000 km in length to the existing network. A pipeline from Raxaul in Bihar to Amlekhgunj in Nepal is in advance stage of consideration to ensure long-term supplies of petroleum products to Nepal.
Research & Development Adding to the Corporation’s intellectual wealth, its R&D Centre filed 92 patents during the year (India: 13; USA: 20; other countries: 59). Fourteen patents were granted during the year (India: 4; USA: 4; other countries: 6), raising the total number of patents earned by the Centre to 384.
As a leading research institution in tribology, the R&D Centre developed 125 lubricant formulations during the year and earned 64 approvals, certifications and endorsements from original equipment manufacturers (OEMs) and defence services. Coveted OEM endorsements were obtained in the automotive sector, leading to substantial business gains for the Corporation in passenger car diesel engine oils, wet brake oils and 4T motorcycle oil segments.
IndianOil scientists have developed an LPG-based metal cutting gas with a proprietary additive and launched it as
Indane Nanocut after successful field evaluation. It is a safer, cheaper and operationally superior alternative to oxy-acetylene.
NEW BUSINESSES Integration Initiatives Downstream in Petrochemicals During 2014-15, IndianOil achieved the highest ever sales of 2,447 TMT (thousand metric tonnes) of petrochemicals as against 2,114 TMT in the previous year, registering a growth of 17%. With 48 polymer grades in its product slate, the Corporation’s domestic market share now stands at 25% as against its capacity share of 18%. With addition of three new export destinations (Togo, Chile and Argentina) during the year, IndianOil now exports petrochemicals to 69 countries under the brand name
PROPEL.
To strengthen its presence in the petrochemicals business, IndianOil is setting up a polypropylene plant at Paradip Refinery at an estimated cost Rs. 3,150 crore. The IndianOil Board has also given its approval for an ethyleneglycol project, also to be set up at Paradip, at a cost of Rs. 3,750 crore.
Upstream in E&PIndianOil has Participating Interest (PI) in 10 domestic and seven overseas E&P blocks. Apart from the two self-operated blocks in Cambay basin (with 100% PI), IndianOil holds non-operating PI ranging from 20% to 43.5% in the remaining eight blocks. In the seven overseas blocks, IndianOil holds non-operating PI ranging from 3.5% to 50%. These blocks are located in Libya, Gabon, Nigeria, Yemen, Venezuela, Canada and USA.
Diversification Initiatives Gas Marketing IndianOil sold 3.42 MMT of gas in 2014-15, registering a growth of 6%. The total sales to external customers stood at 1.78 MMT of R-LNG, with addition of 12 new customers. About 22,500 MT of LNG sales were done through the innovative
'LNG at the Doorstep' initiative.
IndianOil currently operates city gas distribution networks in Agra and Lucknow through the joint venture route. Similar networks are coming up at Allahabad and Chandigarh, to be followed by Ernakulam, Daman and Panipat geographical areas.
The IndianOil Board has approved setting up of an LNG import terminal at Kamarajar Port in Ennore at a revised estimate of Rs. 5,151 crore. The project will be implemented through a JV company, for which an agreement has been signed with IDFC Project Equity Co. Ltd. and ICICI Bank Ltd.
To secure LNG supplies, the Corporation has forayed into independent LNG purchase besides tying up for 1.2 MMTPA of LNG for 20 years with Pacific North West LNG Project, Canada. Delivery is expected to commence by 2020. An interim sales purchase agreement was signed with Mitsubishi Corporation, Japan, for supply of 0.7 MMTPA of LNG for 20 years from the Cameron LNG Project in USA. The delivery is expected to start from the first quarter of 2018.
BEYOND BUSINESS Sustainability Initiatives With addition of 6.3 MW of wind-power capacity in Andhra Pradesh during 2014-15, the Corporation's total installed renewable energy capacity rose to 74.3 MW, of which 69.3 MW is wind-power and the rest solar power.
CSR Initiatives As a responsible corporate citizen, IndianOil spends up to 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. Some of the major initiatives are given below:
• Under IndianOil
Sachal Swasthya Seva scheme, over 14 lakh patients were treated by 52 mobile medical units in Andhra Pradesh, Telangana and Uttar Pradesh.
• Over 19,000 outpatients were treated at IndianOil's AOD hospital at Digboi, and over 48,000 at Swarna Jayanti Samudaik Hospital, Mathura, during the year.
• The Assam College of Nursing started functioning at Digboi with intake of 30 students in the B.Sc. (Nursing) course. A multi-skill development institute has been set up at Digboi to provide vocational training on skills and competencies linked to industries for 400 beneficiaries every year.
• The Corporation is constructing over 2,600 toilets in various schools under
Swachh Vidyalaya Abhiyan. More than 3,000 cleanliness initiatives and events were undertaken across the Corporation as part of
Swachh Bharat Abhiyan.
• As part of CSR initiatives, 2.5 lakh
Indane LPG connections were released to families living below the poverty line.
1MBN: Thousand British Thermal Units / Barrel / Energy Factor = MBTU/BBL/NRGF2MMSCM: Million metric standard cubic metres 
