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The year 2020-21 witnessed IndianOil registering record profits and during 2021-22 we once again surpassed our best, by notching up the highest-ever revenue and a new record net profit. 
Chairman, IndianOil
I hope you are doing well.
As I present IndianOil’s Integrated Annual Report 2021-22, I am reminded of the Company’s first Annual Report, published in 1960. The modest report wrote, “The Company shall build up facilities as may be warranted by the growing demand of petroleum products (in India)”. Back then, IndianOil did not have any petroleum storage capacity. In that context, the Company’s journey over the past six decades has been a saga of phenomenal growth and unshakable faith to fuel the nation while rising above every possible challenge.
Our teams have been continuously setting new benchmarks of business excellence. Our ability to justify the faith reposed in us by the country, is deeply satisfying for us . The year 2021-22 witnessed IndianOil registering record profits and last year, We once again surpassed our best, by notching up the highest-ever revenue and setting a record net profit. This stellar success in business numbers also validates our sustained focus on fuelling the socio-economic aspirations of ‘New India’. We are indeed grateful for your unstinted support that gives us the strength to keep moving ahead and fuels our spirit of service excellence.
IndianOil is committed to realise the socio-economic aspirations of ‘New India’
At IndianOil, we take pride in being the ‘Energy of India’, and our robust financials validate our determination to excel against all odds. In fact, during 2021-22, IndianOil’s revenue from operations went up by over 41% compared to the previous year, and our net profit went up by nearly 11%. This growth is remarkable, and to put it in context, we must remember that even the year before, we notched up record numbers. This is an extraordinary feat that will surely inspire Team IndianOil to aim for new benchmarks of operational excellence in the coming years.
As the year 2021-22 set in, the nation witnessed the ravaging second wave of Covid-19. India’s economy and health infrastructure reeled under the severe impact of the virus. It took a series of inspired and coordinated endeavours from the Government of India to reboot the nation. Let me proudly share that your Company led corporate India’s efforts to align with the initiatives of the Government in alleviating the strain on the economy and citizens. From shoring up liquid medical oxygen supply in the country to strengthening medical infrastructure, the IndianOil team went all out to accomplish the mission.
As always, their humane face shone bright amidst extreme adversities. The spirit of ‘Nation before Self’ essentially defines our DNA, and it was illustrated again as we diverted the commercial oxygen production from our petrochemical plant to hospitals for medical use. These efforts were well acknowledged at every level giving us a sense of deep satisfaction. More importantly, our focus on operational excellence remained unwavering, and our energy soldiers ensured that even the country’s remotest corners remained energised. However, some of our IOCians and frontline energy warriors succumbed to the menacing virus while serving the nation and I salute them for their contribution. The memory of our Covid martyrs will be etched in the annals of the Company’s history in golden letters.
Operational excellence is mostly about nurturing a team and a system that can work together to rise above every challenge and chase greatness. Your Company left no stone unturned to meet the high capital expenditure (capex) targets and rose above every constraint even during the pandemic to meet these targets consistently. You’ll be happy to know that since 2018-19, IndianOil has contributed more than a quarter of the combined capex spend of all Public Sector Undertakings (PSUs), under the Ministry of Petroleum and Natural Gas. Last year was no exception as we replayed the success story and met the target of ₹ 29,347 crore, which is over 28% of the Ministry’s overall outlay.
Liquid Medical Oxygen being transported by IndianOil during Covid pandemic
Committed IOCians ensured the nation is on the move 24x7x365
Mr Rameswar Teli, Minister of State for Petroleum and Natural Gas, Labour and Employment, being handed over IndianOil’s Brand Mascot by Mr S M Vaidya, Chairman, IndianOil
The ambitious capital expenditure caters to the fundamental tenets of our future growth strategy, namely refinery expansion and petrochemical integration. Never has IndianOil rolled out megaprojects of the magnitude that the Refineries Division is witnessing now. As I write to you, projects worth more than ₹ 1 lakh crore are in various stages of implementation. These mega projects will enhance the installed group refining capacity of your Company from the current 80.55 million metric tonnes per annum (MMTPA) to an estimated 107 MMTPA by the year, 2024-25.
Our journey towards a robust petrochemical presence is also witnessing new highs every year. During 2021-22, our Naphtha throughput touched 3.0 MMTPA, about 28% higher than the target. Your Company is India’s second-largest petrochemicals player, with a capacity of around 3.2 MMT. With various projects in the pipeline at Gujarat, Barauni, Panipat and Paradip refineries, the present Petrochemical Intensity Index (PII) of about 5% will go up to about 7% by 2025 and 15% by 2030.
The commissioning of the grassroot Mono Ethylene Glycol (MEG) plant at Paradip, Phase-1 Naphtha Cracker expansion at Panipat and Linear Alkyl Benzene (LAB) expansion at Gujarat Refinery will go a long way in enhancing your Company’s profitability. We are determined to ensure the timely completion of these projects and leverage them to the best of our advantage.
I must add that our petrochemical forays will be critical catalysers for IndianOil’s growth engine and the memorandum of understanding (MoU) signed with the Government of Gujarat in June 2021, reflects that validation. The MoU envisages setting up the Petrochemical and Lube Integration (LuPech) Project and Acrylics/Oxo Alcohol Project at Gujarat Refinery.
Our mammoth network of underground highways of more than 15,000 km is all set to increase with the completion of the 1,200 km-long Paradip-Hyderabad product pipeline. The Board has also approved the establishment of a 1,033 km-long Mundra-Panipat crude oil pipeline with a capacity of 17.5 MMTPA to meet the enhanced crude oil requirement of the Panipat Refinery, that is due for expansion from 15 to 25 MMTPA. We have also commissioned the Dahej-Koyali dedicated Natural Gas Pipeline (106 km long, 5 MMSCMD capacity). The pipeline connects the Dahej LNG terminal of Petronet LNG Ltd. to the Gujarat Refinery in Vadodara. This has enhanced IndianOil’s self-sufficiency in pipeline operations.
IndianOil is a pioneer in petroleum pipelines in the country and manages one of the world’s largest energy pipeline networks
Our ambitious infrastructural investments are bound by two key focus areas — ensuring India’s energy security and constantly delighting our invaluable customers. Adding to the bouquet of customer-centric initiatives, we launched XP95 in May 2021, the best-in-class branded fuel (with 95 Octane specification), that is not only more powerful and efficient than normal petrol but is also competitively priced. The fuel is available at 7,805 fuel stations across the country (till July 2022). We also rolledout XTRAGREEN diesel in July 2021, and at the end of July 2022, the lower emission fuel is being sold at 1,078 fuel stations across India. Such innovative offerings ensure IndianOil has the most enriched product basket to cater to the preferences of every section of customers.
More importantly, we are ushering in a series of initiatives that infuse greater agility into our customer service. One such example is the Indane Tatkal Seva that was rolled out in January 2022 for our customers to avail guaranteed LPG delivery within two hours of booking at a nominal fee. The facility has been launched in Hyderabad and will soon be extended across the country. Another addition to this bouquet is the Indane Family Connect, where customers can book refill cylinders on behalf of family members or friends across India. Earlier, the ‘Missed Call’ facility for Indane refill delivery as well as for obtaining a new connection was launched in January 2021 making the process quite convenient. I would like to share another significant feat of your Company, wherein IndianOil released 50 lakh LPG connections under the Pradhan Mantri Ujjawla Yojana 2.0, before the target date of March 31, 2022.
IndianOil’s superbrand Indane, that has been igniting millions of kitchens across the nation, has completed 56 glorious years
In the LPG sector, IndianOil now has the value - added XTRATEJ, for commercial and industrial use, 5Kg Variant – ‘Chhotu’, 2 Kg Variant – ‘Munna’ and the Composite cylinder
Launch of 2Kg LPG cylinder, ‘Munna’ by IndianOil
Amid these accomplishments, fuel retailing remains our prime focus area, and we are determined to make concerted efforts to retain our market leadership, both through network expansion and enhanced throughput per pump. We have commissioned 2,521 fuel stations during 2021-22, taking the total tally to 34,559, including the Kisan Seva Kendra. In a bid called by the National Highway Authority of India (NHAI) for wayside amenities (WSA), IndianOil secured 10 out of 20 sites in the strategic greenfield Delhi-Mumbai Expressway, reinforcing your Company’s presence along major corridors.
It is also heartening to share that we have kept our foot firmly on the digital accelerator to continuously deliver enhanced customer delight. One such shining example is the IndianOil XTRAREWARDS – Google Pay retail collaboration that was launched in September 2021. This synergy has enabled us to enrol GPay customers in the fold of our loyalty programme and enhance brand loyalty of our retail customers.
I am happy to share that our teams have been at their innovative best while creating new benchmarks of excellence in this sector. Taking the vision forward, we have introduced ‘differentiated diesel with green combo lubes’ that offer higher fuel efficiency with lower emissions. IndianOil has also begun trials of low-sulphur, low-aromatic kerosene with the Indian Army. We also commenced the dispatch of common wintergrade diesel from Leh and Kargil for the retail market. I am happy to share that our revamped storage depot and fuel stations at Kavaratti and Minicoy in Lakshadweep Islands were inaugurated in March 2022. IndianOil is the sole fuel supplier in the islands which reaffirms the trust that the Government and people of India have reposed in the capabilities of IndianOil.
IndianOil’s highest altitude bulk storage depot at Kargil
The year was quite special for IndianOil R&D Centre, which celebrated its Golden Jubilee on March 10, 2022. Throughout its 50 years journey, the Centre has set several benchmarks of innovation and excellence that have transformed IndianOil’s forays and the overall Indian energy landscape. True to this spirit, the R&D Golden Jubilee celebrations culminated in a grand finale on March 22, 2022 at Vigyan Bhawan, where we launched the pathbreaking ‘Surya Nutan’ solar cooktop. It was a reiteration of our business strategies being in complete alignment with the national priorities. The patented cooking solution is green, cost-efficient and can be a gamechanger for the benefit of the masses.
Mr Hardeep S Puri, Union Minister of Petroleum & Natural Gas and Housing & Urban Affairs, launching the indoor solar cooking stove ‘Surya Nutan’ in the presence of Mr Rameswar Teli, Minister of State, Petroleum & Natural Gas, Labour and Employment and Mr S M Vaidya, Chairman IndianOil
IndianOil Whole-time Directors at R&D Center, Faridabad during the Golden Jubilee Celebrations
We are also pursuing synergistic collaborations to explore new avenues of opportunities. The brightest of such partnerships is the Hindustan Urvarak and Rasayan Limited (HURL), where we have joined hands with other PSUs, namely, NTPC Ltd., Coal India Ltd., The Fertilizer Corporation of India Ltd., and Hindustan Fertilizer Corporation Ltd., to develop three gasbased urea fertiliser plants at Gorakhpur, Barauni and Sindri.
These plants will augment domestic fertiliser production capacity by producing over 38 lakh Tonnes of neem-coated urea per annum. In December 2021, the Gorakhpur plant was dedicated to the nation by the Hon’ble Prime Minister. The other two plants at Barauni and Sindri are also in an advanced stage of completion.
Prime Minister Mr Narendra Modi inaugurated the Hindustan Urvarak & Rasayan Limited (HURL) Fertiliser Plant in Gorakhpur, Uttar Pradesh
Green captures the essence of today’s energy world. The concerns over global warming, melting ice caps, shifting ocean currents and crop-destroying heat waves are far too real and palpable today, as compared to what was even a few years back. The environmental concern just no longer looms over our future but has started affecting our present. ‘Green’ is the word driving the priorities of the energy sector worldwide. India’s green agenda, including achieving net zero emission target by 2070, continues to be an inspiring force as far as our future strategies are concerned.
To meet the net-zero commitment, the Indian Government has announced the Green Hydrogen and Ammonia Policy to boost green hydrogen production to 5 MMT by 2030 and make India an export hub for this clean fuel. As the ‘Energy of India’, your Company is committed to leveraging this policy support to power India’s march towards the new energy frontiers of tomorrow.
Aligning with the national priority, IndianOil will be producing green hydrogen in stages at the Mathura and Panipat refineries. As a first step, we will be implementing a 5 KTA (40 MW) green hydrogen plant at Mathura Refinery and a 2 KTA (16 MW) plant at Panipat Refinery. To sync with the entire hydrogen value chain, IndianOil has forged crucial collaborations to develop green hydrogen production assets, associated renewable assets and manufacture electrolysers. This will be a gamechanger as electrolysers contribute to approximately 30% of the overall cost of green hydrogen. Due to the policy interventions by the Government of India, we foresee strong momentum in the electrolysers market and renewable power, with a commensurate decline in the cost of production of green hydrogen. Your Company is also exploring multiple hydrogen production pathways, including solar electrolysis, biomass gasification and bio-methanation. The hydrogen produced will be used for fuelling 15 fuel cell buses to establish the efficacy, efficiency and sustainability of the fuel cell technology and hydrogen production processes. In addition, we will commission a hydrogen dispensing station at the Gujarat Refinery to enlarge hydrogen-based mobility coverage.
Chairman, IndianOil riding India’s first hydrogen fuel cell powered bike at R&D Campus, Faridabad
IndianOil signed an agreement with Nepal Oil Corporation to build a ₹ 275 crore petroleum product pipeline from Raxaul in Bihar to Amlekhgunj in Nepal
Let me reiterate that your Company is already the leading voice in the Indian energy sector, even in endeavours related to the immediate future. Our aggressive approach in the 11th round of the City Gas Distribution (CGD) bidding process reflected this resolve as we secured 9 high market potential geographical areas (GAs) covering twenty six districts across the country. IndianOil, along with its JV companies, is now present in forty nine GAs. We are now poised to emerge as a dominant player in the Indian CGD market.
We have also sharpened our focus on bioenergy and renewables. Under the ambitious SATAT scheme on CBG (Compressed Biogas), IndianOil has awarded over 2,374 letters of intent (LOI) till July 2022, and is now marketing CBG from eighteen plants through thirty one fuel stations spread across nine states in the country.
Let me also touch upon electric vehicles (EVs), which may bring in a paradigm change in the mobility ecosystem across the globe. We target to provide EV charging stations (EVCS) at 10,000 fuel stations in the next three years. As a strategic initiative, your Company is pursuing the setting up of EVCS at public parking spaces at airports and tourist places.
Your Company is also exploring new technologies in the battery development sector. The joint venture (JV) of IndianOil and the Israeli technology company, Phinergy, has been working on the manufacture and commercialisation of aluminum-air technology in India. Taking this forward, a tripartite agreement was recently inked among IOC Phinergy Private Limited, (IOP), Hindalco Industries Limited, India’s leading aluminum producer, and Phinergy Ltd. for R&D and pilot production of aluminium plates for the batteries, and recycling of aluminium, after usage in these batteries.
As your Company continues to enhance the green quotient of its refineries, IndianOil has signed an agreement with NTPC Ltd. to form a joint venture company to meet the power requirements of upcoming projects at IndianOil’ s refineries.
In another significant development, IndianOil and Praj Industries Ltd. signed a memorandum of understanding (MoU) on October 20, 2021, to explore and collaborate on business opportunities in the biofuels arena, including CBG, Sustainable Aviation Fuel (SAF), Biodiesel, Ethanol, and so on, through the formation of a JV company in India.
Indane’s solar powered bottling plant at Madanpur Khadar, New Delhi
India’s first Fuel Cell Electric Vehicle launched by Mr Nitin Gadkari, Union Minister for Road Transport and Highways, in the presence of Chairman, IndianOil
I must add that our environment and sustainability focus extends well beyond business-related endeavours. Due to reckless exploitation, excessive hunting and inadequate protection laws, the cheetah was driven to extinction in India over seven decades ago. To reintroduce the cheetah to its natural habitat in India, IndianOil is collaborating with National Tiger Conservation Agency (NTCA) to undertake a historical project. This unique project involves transcontinental relocation (from South Africa and Namibia) of cheetahs to Kuno National Park in Madhya Pradesh. Your Company is collaborating with NTCA to take this initiative forward. In line with this spirit, we launched the Rhino as our mascot that stands tall as IndianOil’s commitment to protecting India’s biodiversity.
As a brand with one of the most extensive customer interfaces in India, corporate stewardship is not a business obligation, but a stepping-stone towards enduring excellence for your Company. I’m reminded of the Dalai Lama who once said, “More compassionate mind, more sense of concern for other’s well-being, is source of happiness”.
In the last three years, we have supported projects covering areas such as skilling and education, health care, and, environment and sustainability. IndianOil has also been in the forefront as far as the initiatives of corporate India are concerned, and has been steering the ‘Skill India’ revolution. We took a major leap as the permanent campus of IndianOilrun Skill Development Institute, Bhubaneswar, was inaugurated on August 20, 2021.
Speaking of healthcare, cancer care has been one of our key focus areas, and over the next 3 to 5 years, we will be contributing significantly to bolster India’s cancer care infrastructure. Recently your Company aided the implementation of the Phase-2 expansion of Tata Medical Centre in Kolkata. In addition, we are planning to support the Indian Institute of Science (IISc), Bengaluru for their upcoming Medical Hospital & Research Centre, including setting up an oncology wing.
Tuberculosis (TB) continues to be one of India’s severest health challenges. Considering the national importance of this challenge, IndianOil has committed to support the National TB elimination Programme (NTEP) in each of the 75 districts of Uttar Pradesh and 23 districts of Punjab. The programme’s key objective will be to screen and test the entire population of UP and Punjab every year for the next 3 years, to help India eradicate the disease by 2025.
IndianOil adopted six one-horned Rhinos at the Assam State Zoo. The cheque being handed over by Chairman, IndianOil
IndianOil has consistently walked the extra mile to revitalise India’s sporting landscape. You would recall that IndianOil’s remarkable sporting contributions were acknowledged at the highest level when your Company were bestowed with the ‘Rashtriya Khel Protsahan Puraskar’ for 2021. It was an honour for me to accept the award from the Hon’ble President of India at Rashtrapati Bhawan last November on behalf of your Company. IndianOil also received the ‘Sportstar Aces Award, 2022’ under the category of the ‘Best PSU for the Promotion of Sports’. Such accolades and recognitions strengthened our resolve to walk the extra mile to support Indian sporting excellence. Speaking of sporting excellence, IndianOil inducted 9 women hockey players into the IndianOil family on International Women’s Day, 2022. This was a momentous occasion as IndianOil emerged as the first Indian corporate with a full-fledged Women’s Hockey Team. IndianOil will also collaborate with the Ministry of Youth Affairs and Sports for a unique programme, ‘IndianOil Shakti’, to extend comprehensive support to talented young girl athletes.
Care being one of IndianOil’s corporate core values, IndianOil continues to invest in healthcare, education, skilling and uplifting communities through its CSR initiatives
IndianOil announced India’s first Corporate Women’s Hockey Team, a step towards encouraging sports in India
More importantly, we have extended our focus on sports to reach out to the acutely disadvantaged sections of society. As the nation celebrated its 75th Independence Day on August 15, 2021, IndianOil embarked on an extraordinary journey through a unique programme, ‘Parivartan —Prison to Pride’, for a radical social transformation through the powerful medium of sports. Under this scheme, the galaxy of IndianOil sportspersons teamed up with external coaches and encouraged prison inmates to cultivate their sporting interests. The campaign was an exemplary demonstration of our core value of Care and has touched the lives of over 1,750 inmates from 37 prisons across the nation, till now. The journey has been deeply satisfying and has strengthened our commitment to power more such endeavours in the days ahead.
Our energy requirements in the coming years are bound to grow as there is a need to bridge the energy access deficit in the country equitably and efficiently. So, oil and gas will continue to be the mainstay of your Company’s operations at least for the next two to three decades and our core business will continue to play a defining role in crafting your Company’s destiny. Team IndianOil is determined to strengthen our grasp as market leaders by focusing on two essential factors, service quality and the width and depth of our product offerings. As I already mentioned, your Company is geared up for the inevitable energy transition while dealing with fierce competition in our traditional business line.
IndianOil always believes in inclusivity. In line with the same, Chairman, IndianOil, continues to encourage women RO attendants across the country
IndianOil is poised for a great future. We have everything going our way — an energetic team, vast resources, R&D prowess, an operational and marketing network par excellence, and a strong financial position.
At IndianOil, we have always chosen values over profits and Nation over corporate gains. More importantly, our actions as a social enterprise speak louder than words in terms of our priorities that extend beyond the realm of business. Your Company is committed to carrying forward every business endeavour in a free, fair, and transparent manner. Let me emphasise that our core values of Care, Innovation, Passion and Trust will continue to guide us in the journey ahead.
Once again, thank you for your unstinted support that has been your Company’s greatest strength and an eternal source of inspiration to take IndianOil towards a more prosperous future. We are committed to energising a nation and a world where happiness and peace thrive. As the great Nelson Mandela said, “What counts in life is not the mere fact that we have lived. It is what difference we have made to the lives of others that will determine the significance of the life we lead.”
Stay healthy, stay safe!
sd/-
Chairman
© 2022 - Indian Oil Corporation Limited | Integrated Annual Report 2021-22
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