Managing Risks with Clear Foresight

The year saw significant fluctuations in crude oil prices owing to pandemic-induced supply chain disruptions and geopolitical tensions. The latter also led to significant increase in inflation worldwide. The increasingly dynamic macro-economic environment might have an adverse impact on our operations and financial stability.

Notwithstanding the externalities beyond our control, we strive to focus on robust physical performance and efficiency to offset the impact of these risks. Diversified crude oil sources, low cost domestic / foreign currency borrowings and all-round process innovations ensure that the economies are achieved.

With increasing competitiveness across industries we operate in, it is paramount for us to keep up with evolving consumer demand, optimise our costs and improve the overall efficiency of processes. Inability to achieve the same might result in loss of consumers’ confidence and have an adverse impact on revenue, profitability and brand value.

At IndianOil, our zeal to explore new horizons of innovative excellence in our products and services is underpinned by our endeavour to be a future-ready organisation and retain market leadership. This also enables us to deliver best-in-class services and offer one-of-its kind products to our customers. Additionally, our state-of-the-art R&D centre, which constantly innovates new products as per market trends, helps us to remain ahead of competition and build brand loyalty.

Ensuring optimum utilisation of scarce resources, reducing environmental footprint and increasing consumption of renewable sources of energy has never been more important. Inability to reduce our environmental footprint, maintain emissions below the prescribed levels and invest in alternative source of energy, might have adverse impact on our reputation and might have financial implications in the form of fines and penalties.

We continue to make big strides towards reducing our environmental footprint. Our approach towards environmental stewardship encompasses measures and initiatives around emissions reduction, increased water and energy conservation, waste reduction and increased usage of renewable energy. We are also investing towards building presence in the green energy segment that empowers our customers to reduce their environmental footprint.

Our operations are exposed to the risks from foreign exchange rate fluctuations and interest rate as we have a dominant presence in the international market as well. This might impact our financial position and our ability to create value for our stakeholders.

We constantly assess the fluctuation in exchange and interest rates and based on potential of these risks being realised, appropriate hedging positions are being taken as per approved policy. We also continuously undertake cost control measures that empower us to ensure consistent growth in profitability despite headwinds.

With the adoption of disruptive technologies and platforms, there lies a significant risk of cyber-attack. Loss of sensitive and private data and information might have adverse impact on our reputation as well as our profitability.

To ensure protection of sensitive and confidential information, we have implemented a defence-in-depth cyber security architecture. We also have a robust data privacy policy and all our data centres are ISO 27001:2013 certified.

At IndianOil, the health, safety and well-being of employees and contractual workers have always been a priority. All our refineries are certified to Occupational Health & Safety Management System (OHSMS/OHSAS018001), besides having fully equipped occupational health care centres. IndianOil is the first PSU to launch Project ‘Happiness and Well-being’.

Our vision is to ‘Align our People and Talent Capability to Deliver Our Energy Promise to the Nation’. Thus, we continue to organise various training and development programmes for new and existing employees, covering an array of topics including functional, behavioural and technical aspects. We also leverage digital platforms to increase our employees’ productivity and efficiency. Most of our top executives have risen from within the ranks. This stands as a testimony to our ability to upskill our employees and provide them unlimited opportunity to grow and expand their professional as well as personal life.