Indian Oil Corporation
Encyclopedia
Indian Oil Corporation Limited, or IndianOil, is an Indian state-owned oil
and gas
corporation with its headquarters are in Mumbai, India. It is India’s largest commercial enterprise, ranked 98th on the Fortune Global 500
list for 2011. IndianOil and its subsidiaries account for a 47% share in the petroleum products market, 34% share in refining capacity and 67% downstream sector pipelines capacity in India. The IndianOil Group of Companies owns and operates 10 of India's 21 refineries with a combined refining capacity of 65.7 million metric tons per year. President of India owns 78.92% (191.62 Crore shares)in the company. in FY'11 IOCL sold 64.1 million tonnes of petroleum products and reported a PBT of Rs.9096 Crore, & Govt of india earned an excise duty of Rs.25789.90 crore and tax of Rs.1650 Crore.
IndianOil operates the largest and the widest network of fuel stations in the country, numbering about 19,463 (15,946 regular ROs & 3,517 Kissan Sewa Kendra). It has also started Auto LPG Dispensing Stations (ALDS). It supplies Indane
cooking gas to over 62.4 million households through a network of 5,456 Indian distributors. In addition, IndianOil's Research and Development Center (R&D) at Faridabad
supports, develops and provides the necessary technology solutions to the operating divisions of the corporation and its customers within the country and abroad.
, bitumen, paraffin
, kerosene
etc. Xtra Premium petrol, Xtra Mile diesel, Servo lubricants, Indane LPG cooking gas, Autogas LPG, IndianOil Aviation are some of its prominent brands.
Recently Indian Oil has also introduced a new business line of supplying LNG (liquefied natural gas) by cryogenic transportation. This is called "LNG at Doorstep".
In Bihar
In Gujarat
In West Bengal
In Uttar Pradesh
In Haryana
It is believed that the future IOCL refinery Will be Paradeep Refinery. It is expected to be handover at 2012.
Subsidiary refineries – Chennai Petroleum (10.5 MMTPA)
at position 243. It is fifth most valued brand in India according to an annual survey conducted by Brand Finance
and The Economic Times in 2010.
and Hindustan Petroleum
. Both are state-controlled, like Indian Oil Corporation. There are two private competitors, Reliance Industries
and Essar Oil
.
CSR at Indian Oil is based on the four pillars of care, innovation, passion and trust. CSR here is not just to perceive as corporate behemoths that exist for profits but for the good of the society and for improving the quality of life of the community they serve. They are aware of the need to work beyond financial considerations and put in a little extra effort that can make the society a better place to live in. The Corporation respects human rights and values its employees, share holders and customers. In the last five decades , Indian Oil has supported innumerable social and community innitiatives in India and has taken up concrete actions towards the society.
One of the major steps of CSR at Indian Oil is sharing of profits. Every year a fixed portion of Indian Oil's profit is set aside for community welfare and developmental programmes. It has also concerted social responsibility programmes with communities. The company has a number of community – focussed initiatives such as development in health, education,sanitation. It also includes family welfare , providing portable water, women empowerment and welfare of schedule caste and schedule tribe beneficiaries. Allotment of petrol/diesel station dealerships and LPG distributorships to beneficiaries from among schedule caste and schedule tribes, physically handicapped, ex servicemen, war widows ,etc are some of the other initiatives under community welfare. The corporation also provides extended help to farmers to reach out to larger markets through Kissan Seva Kendras .To enforce the additional objective of preservation of ecological balance and heritage, Indian Oil has founded the Indian Oil Foundation , a non profit trust to protect, preserve and promote national heritage monuments.It is excusively funded by Indian Oil. It has an initial corpus of twenty five crore and an annual contribution of ten crore. Under this initiative Indian Oil will adopt atleast one heritage site in each state and promote it.
Indian Oil being a green company has set up some environment – protection initiatives.For the production of green fuels in its refineries it has invested nearly Rs. 7000 crore in state-of-the-art technologies. Further the corporation is now in the process of commercialising various options in alternative fuels such as ethanolblender petrol, biodiesel, hydrogen and hydrogen-CNG mixture to reduce dependence on precious petroleum products and secure the nations security.
To promote community development , Indian Oil has undertaken a number of initiatives such giving scholarships, allocation of funds etc. The community development unit of Indian Oil identifies various deserving causes for allocation of funds from the community development budget and involve various grassroot level organisations like local gram panchayats, district administration , NGOs and social workers whenever necessary.To ensure that the benefits of the programmes flow directly to the identified groups , fund utilisation is closely monitored and whenever necessary the corporation directly executes projects.To promote all sided development of the society , Indian Oil also offers sports scholarships to upcoming players and potential/ talented players. Indian Oil also supports art, culture , music and dance under the banners of Indian oil sangeet shabha, Indian oil art exhibitions. It has also worked towards better education in India by encouraging special scholarships among girl students and disadvantanged groups hence trying to reduce drop out rates in higher secondary levels.
Petroleum
Petroleum or crude oil is a naturally occurring, flammable liquid consisting of a complex mixture of hydrocarbons of various molecular weights and other liquid organic compounds, that are found in geologic formations beneath the Earth's surface. Petroleum is recovered mostly through oil drilling...
and gas
Natural gas
Natural gas is a naturally occurring gas mixture consisting primarily of methane, typically with 0–20% higher hydrocarbons . It is found associated with other hydrocarbon fuel, in coal beds, as methane clathrates, and is an important fuel source and a major feedstock for fertilizers.Most natural...
corporation with its headquarters are in Mumbai, India. It is India’s largest commercial enterprise, ranked 98th on the Fortune Global 500
Fortune Global 500
The Fortune Global 500 is a ranking of the top 500 corporations worldwide as measured by revenue. The list is compiled and published annually by Fortune magazine....
list for 2011. IndianOil and its subsidiaries account for a 47% share in the petroleum products market, 34% share in refining capacity and 67% downstream sector pipelines capacity in India. The IndianOil Group of Companies owns and operates 10 of India's 21 refineries with a combined refining capacity of 65.7 million metric tons per year. President of India owns 78.92% (191.62 Crore shares)in the company. in FY'11 IOCL sold 64.1 million tonnes of petroleum products and reported a PBT of Rs.9096 Crore, & Govt of india earned an excise duty of Rs.25789.90 crore and tax of Rs.1650 Crore.
IndianOil operates the largest and the widest network of fuel stations in the country, numbering about 19,463 (15,946 regular ROs & 3,517 Kissan Sewa Kendra). It has also started Auto LPG Dispensing Stations (ALDS). It supplies Indane
Indane
Indane or indan is a hydrocarbon petrochemical compound.-Derivatives:Derivatives include compounds such as 1-methyl-indane and 2-methyl-indane , 4-methyl-indane and 5-methyl-indane , various dimethyl-indanes, and various pharmaceutical derivatives...
cooking gas to over 62.4 million households through a network of 5,456 Indian distributors. In addition, IndianOil's Research and Development Center (R&D) at Faridabad
Faridabad
Faridabad is a city in the south-east of Haryana state in northern India, in Faridabad district. It lies at 28º 25' 16" N Latitude and 77º 18' 28" E Longitude. The district shares its boundaries with the National Capital and Union Territory of Delhi to its north, Gurgaon district to the west and...
supports, develops and provides the necessary technology solutions to the operating divisions of the corporation and its customers within the country and abroad.
History
IndianOil began operation in 1959 as Indian Oil Company Ltd. The Indian Oil Corporation was formed in 1964, with the merger of Indian Refineries Ltd.Products
Indian Oil's product range covers petrol, diesel, LPG, auto LPG, aviation turbine fuel, lubricants, naphthaNaphtha
Naphtha normally refers to a number of different flammable liquid mixtures of hydrocarbons, i.e., a component of natural gas condensate or a distillation product from petroleum, coal tar or peat boiling in a certain range and containing certain hydrocarbons. It is a broad term covering among the...
, bitumen, paraffin
Paraffin
In chemistry, paraffin is a term that can be used synonymously with "alkane", indicating hydrocarbons with the general formula CnH2n+2. Paraffin wax refers to a mixture of alkanes that falls within the 20 ≤ n ≤ 40 range; they are found in the solid state at room temperature and begin to enter the...
, kerosene
Kerosene
Kerosene, sometimes spelled kerosine in scientific and industrial usage, also known as paraffin or paraffin oil in the United Kingdom, Hong Kong, Ireland and South Africa, is a combustible hydrocarbon liquid. The name is derived from Greek keros...
etc. Xtra Premium petrol, Xtra Mile diesel, Servo lubricants, Indane LPG cooking gas, Autogas LPG, IndianOil Aviation are some of its prominent brands.
Recently Indian Oil has also introduced a new business line of supplying LNG (liquefied natural gas) by cryogenic transportation. This is called "LNG at Doorstep".
Refineries
In Assam- Digboi RefineryDigboi RefineryThe Digboi Refinery was set up at Digboi in 1901 by Assam Oil Company Ltd.. The Indian Oil Corporation Ltd took over the refinery and marketing management of Assam Oil Company Ltd. with effect from 1981 and created a separate division. This division has both refinery and marketing operations...
, in Upper AssamUpper AssamRiver Bramhaputra is a major river and lifeline of the state of Assam. Assam is divided into two broad categories based on the flow of the mighty Bramhaputra, namely Upper Assam and Lower Assam. The logic behind this categorisation is that a river flows from high land to low land...
, is India's oldest refinery and was commissioned in 1901. Originally a part of Assam Oil CompanyOil IndiaOil India is a public sector oil and gas company in India under the administrative control of the Ministry of Petroleum and Natural Gas of the Government of India. OIL is engaged in the business of exploration, development and production of crude oil and natural gas, transportation of crude oil...
, it became part of IndianOil in 1981. Its original refining capacity had been 0.5 MMTPA since 1901. Modernisation project of this refinery was completed by 1996 and the refinery now has an enhanced capacity of 0.65 MMTPA.
- Guwahati RefineryGuwahati RefineryGuwahati Refinery is the first Public Sector refinery of India and belongs to Indian Oil Corporation Limited. The refinery was inaugurated by Late Pandit Jawahar Lal Nehru, the first Prime Minister of independent India. The refinery was built with Romanian Collaboration and has a capacity of 1.0...
, the first public sector refinery of the country, was built with Romanian collaboration and was inaugurated by Late Pt. Jawaharlal NehruJawaharlal NehruJawaharlal Nehru , often referred to with the epithet of Panditji, was an Indian statesman who became the first Prime Minister of independent India and became noted for his “neutralist” policies in foreign affairs. He was also one of the principal leaders of India’s independence movement in the...
, the first Prime Minister of India, on 1 January 1962. Its capacity is 1 MMTPA.
- Bongaigaon RefineryBongaigaon RefineryOn 5 December 1969, the then Prime Minister of India, Indira Gandhi announced in the Lok Sabha the Government's decision to set up a new Refinery-cum-Petrochemical complex in Assam. The foundation stone of the complex was laid on 19 January 1972 at Bongaigaon...
became the eighth refinery of IndianOil after merger of Bongaigaon Refinery & Petrochemicals Limited w.e.f. 25 March 2009. It is located at Dhaligaon in Chirang district of Assam, 200 km west of Guwahati.
In Bihar
Bihar
Bihar is a state in eastern India. It is the 12th largest state in terms of geographical size at and 3rd largest by population. Almost 58% of Biharis are below the age of 25, which is the highest proportion in India....
- Barauni RefineryBarauni RefineryBarauni Refinery in the Bihar state of India was built in collaboration with the Soviet Union at a cost of Rs.49.4 crores and went on stream in July, 1964. The initial capacity of 2 MMTPA was expanded to 3 MMTPA by 1969. The present capacity of this refinery is 6.00 MMTPA. A Catalytic Reformer Unit...
, in Bihar, was built in collaboration with Russia and Romania. It was commissioned in 1964 with a capacity of 1 MMTPA. Its capacity today is 6 MMTPA.
In Gujarat
- Gujarat RefineryGujarat RefineryThe Gujarat Refinery is an oil refinery located at Koyali in Gujarat, Western India. It is the largest refinery owned by Indian Oil Corporation.-History:...
, at Koyali in Gujarat in Western India, is IndianOil’s second largest refinery. The refinery was commissioned in 1965. It also houses the first hydrocracking unit of the country. Its present capacity is 13.70 MMTPA.
In West Bengal
West Bengal
West Bengal is a state in the eastern region of India and is the nation's fourth-most populous. It is also the seventh-most populous sub-national entity in the world, with over 91 million inhabitants. A major agricultural producer, West Bengal is the sixth-largest contributor to India's GDP...
- Haldia RefineryHaldia RefineryThe Haldia Refinery for processing 2.5 MMTPA of Middle East crude was commissioned in January, 1975 with two sectors - one for producing fuel products and the other for Lube base stocks....
is the only coastal refinery of the Corporation, situated 136 km downstream of Kolkata in the Purba Medinipur (East Midnapore) district. It was commissioned in 1975 with a capacity of 2.5 MMTPA, which has since been increased to 7.5 MMTPA
In Uttar Pradesh
Uttar Pradesh
Uttar Pradesh abbreviation U.P. , is a state located in the northern part of India. With a population of over 200 million people, it is India's most populous state, as well as the world's most populous sub-national entity...
- Mathura RefineryMathura RefineryThe Mathura Refinery, owned by Indian Oil Corporation, is located in Mathura, Uttar Pradesh. The refinery processes low sulphur crude from Bombay High, imported low sulphur crude from Nigeria, and high sulphur crude fromthe Middle East....
was commissioned in 1982 as the sixth refinery in the fold of IndianOil and with an original capacity of 6.0 MMTPA. Located strategically between the historic cities of Delhi and Agra, the capacity of Mathura refinery was increased to 8 MMTPA.
In Haryana
Haryana
Haryana is a state in India. Historically, it has been a part of the Kuru region in North India. The name Haryana is found mentioned in the 12th century AD by the apabhramsha writer Vibudh Shridhar . It is bordered by Punjab and Himachal Pradesh to the north, and by Rajasthan to the west and south...
- Panipat RefineryPanipat RefineryPanipat Refinery is an oil refinery that was set up in 1998. It is located in Baholi village, Panipat, Haryana. Panipat is the seventh refinery belonging to Indian Oil Corporation Limited. The cost of the refinery's construction was Rs 9024 crores...
is the seventh and largest refinery of IndianOil. The original refinery with 6 MMTPA capacity was built and commissioned in 1998. Panipat Refinery has since expanded its refining capacity to 15 MMTPA.
It is believed that the future IOCL refinery Will be Paradeep Refinery. It is expected to be handover at 2012.
Subsidiary refineries – Chennai Petroleum (10.5 MMTPA)
Group companies and joint ventures
- IndianOil (MauritiusMauritiusMauritius , officially the Republic of Mauritius is an island nation off the southeast coast of the African continent in the southwest Indian Ocean, about east of Madagascar...
) Ltd. - Lanka IOC PLC – Group company for retail and storage operations in Sri LankaSri LankaSri Lanka, officially the Democratic Socialist Republic of Sri Lanka is a country off the southern coast of the Indian subcontinent. Known until 1972 as Ceylon , Sri Lanka is an island surrounded by the Indian Ocean, the Gulf of Mannar and the Palk Strait, and lies in the vicinity of India and the...
. It is listed in the Colombo Stock ExchangeColombo Stock ExchangeThe Colombo Stock Exchange is the main stock exchange in Sri Lanka. It is one of the most modern exchanges in South Asia, providing a fully automated trading platform...
. It was locked into a bitter subsidy payment dispute with Sri Lanka's Government which has since been resolved. - IOC Middle East FZE
- Chennai Petroleum Corporation Limited
- Green Gas Ltd. – a joint venture with Gas Authority of India Ltd.GAILGAIL Limited is a state-owned natural gas processing and distribution company headquartered in New Delhi, India. It has six segments: Transmission services of natural gas and liquefied petroleum gas , Natural gas trading, petrochemicals, LPG and Liquid hydrocarbons, GAILTEL and Others.- History...
for city-wide gas distribution networks. - Indo Cat Pvt. Ltd., with Intercat, USA, for manufacturing 15,000 tonnes per annum of FCC (fluidised catalytic cracking) catalysts & additives in India.
- IndianOil – CREDA Biofuels Ltd., a joint venture with Chattisgarh government for production and marketing of Bio-fuels.
- Numerous exploration and production ventures with Oil India Ltd., Oil and Natural Gas CorporationOil and Natural Gas CorporationThe Oil and Natural Gas Corporation Limited is an Indian state-owned oil and gas company headquartered in New Delhi, India. It is one of the largest Asia-based oil and gas exploration and production companies, and produces around 77% of India's total crude oil production and around 81% of...
International rankings
IndianOil is the highest ranked Indian company in the Fortune 'Global 500' listing, 98th position in 2011. It is also the 18th largest petroleum company in the world and the No. 1 petroleum trading company among the National Oil Companies in the Asia-Pacific region. IOCL was featured on the 2011 Forbes Global 2000Forbes Global 2000
The Forbes Global 2000 is an annual ranking of the top 2000 public companies in the world by Forbes magazine. The ranking is based on a mix of four metrics: sales, profit, assets and market value...
at position 243. It is fifth most valued brand in India according to an annual survey conducted by Brand Finance
Brand Finance
Brand Finance is an independent intangible asset valuation consultancy. It advises strongly branded organisations, or those with valuable intangible assets, on how to maximise their value through effective management of their brand and other intangible assets...
and The Economic Times in 2010.
Loyalty programs
XTRAPOWER Fleet Card Program is aimed at Large Fleet Operators. Currently it has 1 million customer base. XTRAREWARDS is a recently launched loyalty program for retail customers where customers can earn reward points on their purchases.in the orgCompetitors
Indian Oil Corporation has two major domestic competitors, Bharat PetroleumBharat Petroleum
Bharat Petroleum Corporation Limited is a state-controlled oil and gas company headquartered in Mumbai, India. In 2011, Fortune Global 500 ranked the company of 272.- History :...
and Hindustan Petroleum
Hindustan Petroleum
Hindustan Petroleum Corporation Limited , is an Indian state-owned oil company headquartered at Mumbai, India and is a Fortune 500 company of India listed at number 336....
. Both are state-controlled, like Indian Oil Corporation. There are two private competitors, Reliance Industries
Reliance Industries
Reliance Industries Limited is an Indian conglomerate company headquartered at Mumbai, India. The company operates through three business segments: petrochemicals, refining, and oil and gas, other segment of the company includes textile, retail business, special economic zone development and...
and Essar Oil
Essar Oil
Essar Oil is an Indian integrated oil and gas company that is part of the Essar group based in Mumbai. It operates a major refinery in Gujarat, India, which made it the second largest non-state refiner in India in 2009....
.
Concerns
The volatility in the crude market & subsidy burden on the IOCL has dented the company performance like other PSU oil companies. This is also reflected in its FORTUNE rating this year. Moreover, bureaucratic hurdles in projects are hurting company advancement. IOCL has one of the best technical manpower for execution of jobs.The newly announced 5 billion dollar contract with Iran raises severe implications on the UN and U.S. sanctions on nuclear proliferation.Oil Industry Development Board
India has begun the development of a strategic crude oil reserve sized at 37.4 Moilbbl, enough for two weeks of consumption. Petroleum stocks have been transferred from the Indian Oil Corporation(IndianOil) to the Oil Industry Development Board (OIDB). The OIDB then created the Indian Strategic Petroleum Reserves Ltd (ISPRL) to serve as the controlling government agency for the strategic reserve.CSR activities of Indian Oil Corporation Limited
In 1964 , CSR was introduced in Indian Oil for the first time. Initially the Corporation's objective was to "help and enrich the quality of life of the community". Later on it extended its mission statement by adding " perservation of ecological balance and heritage through strong environmental conscience" to its objectives.CSR at Indian Oil is based on the four pillars of care, innovation, passion and trust. CSR here is not just to perceive as corporate behemoths that exist for profits but for the good of the society and for improving the quality of life of the community they serve. They are aware of the need to work beyond financial considerations and put in a little extra effort that can make the society a better place to live in. The Corporation respects human rights and values its employees, share holders and customers. In the last five decades , Indian Oil has supported innumerable social and community innitiatives in India and has taken up concrete actions towards the society.
One of the major steps of CSR at Indian Oil is sharing of profits. Every year a fixed portion of Indian Oil's profit is set aside for community welfare and developmental programmes. It has also concerted social responsibility programmes with communities. The company has a number of community – focussed initiatives such as development in health, education,sanitation. It also includes family welfare , providing portable water, women empowerment and welfare of schedule caste and schedule tribe beneficiaries. Allotment of petrol/diesel station dealerships and LPG distributorships to beneficiaries from among schedule caste and schedule tribes, physically handicapped, ex servicemen, war widows ,etc are some of the other initiatives under community welfare. The corporation also provides extended help to farmers to reach out to larger markets through Kissan Seva Kendras .To enforce the additional objective of preservation of ecological balance and heritage, Indian Oil has founded the Indian Oil Foundation , a non profit trust to protect, preserve and promote national heritage monuments.It is excusively funded by Indian Oil. It has an initial corpus of twenty five crore and an annual contribution of ten crore. Under this initiative Indian Oil will adopt atleast one heritage site in each state and promote it.
Indian Oil being a green company has set up some environment – protection initiatives.For the production of green fuels in its refineries it has invested nearly Rs. 7000 crore in state-of-the-art technologies. Further the corporation is now in the process of commercialising various options in alternative fuels such as ethanolblender petrol, biodiesel, hydrogen and hydrogen-CNG mixture to reduce dependence on precious petroleum products and secure the nations security.
To promote community development , Indian Oil has undertaken a number of initiatives such giving scholarships, allocation of funds etc. The community development unit of Indian Oil identifies various deserving causes for allocation of funds from the community development budget and involve various grassroot level organisations like local gram panchayats, district administration , NGOs and social workers whenever necessary.To ensure that the benefits of the programmes flow directly to the identified groups , fund utilisation is closely monitored and whenever necessary the corporation directly executes projects.To promote all sided development of the society , Indian Oil also offers sports scholarships to upcoming players and potential/ talented players. Indian Oil also supports art, culture , music and dance under the banners of Indian oil sangeet shabha, Indian oil art exhibitions. It has also worked towards better education in India by encouraging special scholarships among girl students and disadvantanged groups hence trying to reduce drop out rates in higher secondary levels.
See also
- Global strategic petroleum reservesGlobal strategic petroleum reservesGlobal strategic petroleum reserves refer to crude oil inventories held by the government of a particular country, as well as private industry, for the purpose of providing economic and national security during an energy crisis...
- IndianOil Institute of Petroleum ManagementIndianOil Institute of Petroleum ManagementThe IndianOil Institute of Petroleum Management is a government run institution set up to undertake training and management development programmes for the Indian petroleum industry....