ongc final presentation

PRESENTED BY:Yashaswani Sharma

OVERVIEWOil and Natural Gas Corporation Limited is an Indian multinational oil and gas company headquartered in Dehradun, Uttarakhand, India. WikipediaHeadquarters: UttarakhandCEO: Dinesh K Sarraf (Mar 1, 2014–)Revenue: 1.394 trillion INR (2016, US$21 billion)Founded: August 14, 1956Owner: Government of IndiaNet income: 143 billion INR (US$2.1 billion, 2016)Total equity: 42.78 billion INR (US$640 million)Number of Employees – 32862 employees

HISTORYONGC was set up under the visionary leadership of Pandit Jawahar Lal Nehru, going against the wisdom of the multinational oil companies operating in the country, who had almost written India off as a “Hydrocarbon Barren” country. Pandit Nehru reposed faith in Shri Keshav Dev Malviya who laid the foundation of ONGC in the form of Oil and Gas division, under Geological Survey of India, in 1955. A few months later, it was converted into an Oil and Natural Gas Directorate.

BIRTH AND GROWTH OF ONGC Creation of Oil and Natural Gas Commission

Oil & Natural Gas Directorate upgraded to Oil and Natural Gas Commission in 1956.

Commission converted into a statutory body by Act of Parliament in 1959 for planning, promoting, organising and implementation of programme for development of Petroleum resources in India.

Hydrocarbon India Ltd. (HIL), precursor to ONGC Videsh Ltd., formed in 1965.

Oil and Natural Gas Commission becomes Oil and Natural Gas Corporation on 1st Feb.’1994.

In 1997 ONGC is declared as one of the “Navratna” PSU. ONGC becomes a “Maharatna” PSU in 2010.

VISION AND MISSIONTo be global leader in integrated energy business through sustainable growth, knowledge excellence and exemplary governance practices.

World ClassDedicated to excellence by leveraging competitive advantages in R&D and technology with involved people.Imbibe high standards of business ethics and organizational values.Abiding commitment to safety, health and environment to enrich quality of community life.Foster a culture of trust, openness and mutual concern to make working a stimulating and challenging experience for our people.

MISSION Cont …Strive for customer delight through quality products and services.

Integrated In Energy BusinessFocus on domestic and international oil and gas exploration and production business opportunities.Provide value linkages in other sectors of energy business.Create growth opportunities and maximize shareholder value.

Dominant Indian LeadershipRetain dominant position in Indian petroleum sector and enhance India's energy availability.

BOARD OF DIRECTORS

CORPORATE PROFILEONGC is India’s Top Energy Company and ranks 20th among global energy majors (Platts).ONGC ranks 14th in ‘Oil and Gas operations’ and 220th overall in Forbes Global 2000. Acclaimed for its Corporate Governance practices, Transparency International has ranked ONGC 26th among the biggest publicly traded global giants.Its wholly-owned subsidiary ONGC Videsh Limited (OVL) is the biggest Indian multinational in the energy space, participating in 36 oil and gas properties in 17 countries. ONGC subsidiary Mangalore Refinery and Petrochemicals Limited (MRPL) is a Schedule ‘A’ Miniratna, with a single-location refining capacity of 15 million tons per annum.

ORGANIZATIONAL CHART

ONGC GROUP OF COMPANIES

ONGC Group of Companies:1.ONGC Videsh Limited (OVL)2.Mangalore Refinery and Petrochemicals Limited (MRPL)3.ONGC Nile Ganga BV (ONG BV)4.ONGC Mittal Energy Limted (OMEL)5.ONGC Mittal Energy Services Limited (OMESL)6.ONGC Tripura Power Company Pvt.Ltd. (OTPCL)7. Kakinada Refinery & Petrochemicals Limited (KRPL) 8.Kakinada SEZ Limited 9.Mangalore SEZ Limited 10.Dahej SEZ Limited 11.Rajasthan Refinery Limited (RRL) 

PRODUCTS OF ONGC

Crude oilNatural gasEthaneSuperior Kerosene OilHSDLPGMotor SpiritAromatic Rich Naptha

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Rajasthan Onshore

Western Onshore

Western Offshore

Assam Self

Tripura

Mahanadi Offshore

KG Offshore

KG Onshore

Cauvery Onshore

ONGC: Domestic Operations

Cauvery Onshore

MRPL Refinery

Dahez SEZ,OPALPETRONET

Kakinada SEZ

Jharia (CBM)

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SUBSIDIARIESONGC Videsh Limited(OVL) is the international arm of ONGC. It was rechristened on 15 june 1989. it currently has 14 projects across 16 countries.Presence of ONGC Videsh Ltd (OVL) in Latin America.Presence of ONGC Videsh Limited (OVL) in Middle EastPresence of ONGC Videsh Limited (OVL) in AfricaPresence of ONGC Videsh Limited (OVL) in CIS & Far-East;

SHARE HOLDING

ONGS Vs COMPETITORS

ONGC KEY FUNDAMENTALS

BALANCE SHEET

P&L

OPERATING PROFIT

Corporate Social Responsibility(CSR)

As a public sector enterprise, ONGC has a long and cherished tradition of commendable initiatives, institutionalized programmes and practices of Corporate Social Responsibility which have played a laudable role in the development of several underdeveloped regions of the country. The vision of sustainable growth drives both business decisions as well as our Corporate Social Responsibility works.The CSR initiatives of ONGC were marked by unrelenting commitment to several large – scale key projects identified under the 12 focus areas of ONGC i.e.

CSR cont..1. Education including vocational

courses,2. Health Care,3. Entrepreneurship (self-help &

livelihood generation) schemes,4. Infrastructure support near

ONGC operational areas,5. Environment protection,

ecological conservation, promotion,

6. Protection of heritage sites, UNESCO heritage monuments etc.

7. Promotion of artisans, craftsman, musicians, artists etc. for preservation of heritage, Art & Culture,

8. Women’s Empowerment, Girl Child Development, Gender sensitive projects,

9. Water Management including ground water recharge,

10. Initiatives for Physically and Mentally challenged,

11. Sponsorship of seminars, conferences, workshops etc.

12. Promoting Sports/sports persons; supporting agencies promoting sports / sports persons.

SWOT Analysis 1) STRENGTHS

A) O.N.G.C LTD is perceived to be the leader in oil production industry.B) O.N.G.C has a very efficient and professional management team.C) O.N.G.C being an international company has sufficient resources and capital to invest.D) O.N.G.C has ISO-9001 & ISO 14001 registration.

2) WEAKNESSES

A) O.N.G.C facing difficulties to produce oil from aging reservoirs. B) Ever changing laws. C) Legal issues as it is controlled by petroleum ministry. D) Employee management issue because huge number of employees.

SWOT Cont.3) OPPURTUNITY

A)Possible mergers with smaller companies.B)Grow their hold in the energy market.

C)Expanding market to abroad with help of ONGC VIDESH LTD (OVL) D) Increasing natural gas market for more sales. E) Increasing in fuel/oil prices.

4)THREATS

A) Security of personnel & property especially crude oil continues to be a cause of concern in certain area.B) In some exploration Campaign Company involves high technology, High investment and high risks.

PORTER FIVE FORCES

Threat of new entrantsDue mostly to the industry that ONGC is in, it’s hard for there to be many new entrants. The only real threat that might arise would be another government funded Oil and Gas company. The reason for this is that a government would not have as hard at time raising funds and gaining access to resources.There is really not much of a threat because there are two main barriers to entry that would be stopping potential threats. These would be very high capital requirements as well as access to Cost disadvantages independent of scale.

Bargaining Power of Suppliers

ONGC is a vertically integrated company that really deals in all areas from finding the product to refining the product to selling the product. With this being said there is not much to worry about the bargaining power of the suppliers. Supplier power is high as the net margins are strongly dependent on the price of the crude.

Bargaining Power of Buyers

Not too critical for most companies as refining operations are apart of the complete supply chain, with the refining operations supplying the product to the marketing company. However in case of standalone companies (which may no longer apply) long term contracts have to be signed with the marketing companies. The margins in such cases are dependent on such long term contracts.Another reason for this lack of bargaining power is that as of right now there is not a real alternative to Oil.

Threat of Substitutable Products

Although gas, solar power etc. exist as substitutes , none of the mare big enough to impact the demand of the petroleum products.As stated above there is not a real alternative to oil at this time. It does not seem that at this time there is a huge threat of this happening but it is definitely a possibility that any player in the market must beware of.

Rivalry among Competitors

The rivalry in the industry was low till as the industry was tightly regulated by the government. However, the level competition has increased with Reliance and other MNC becoming more aggressive.The largest competitors in this industry for ONGC are Exxon Mobile and Royal Dutch Shell. ONGC is currently in 14 different companies whereas Exxon Mobile is in 20 different countries. While Exxon may be a larger company now ONGC is growing and is becoming a very important global player.

References:http://economictimes.indiatimes.com/oil-and-natural-gas-corporation-ltd/stocks/companyid-11599.cmshttp://profit.ndtv.com/stock/oil-&-natural-gas-corporation-ltd_ongchttp://www.moneycontrol.com/financials/oilnaturalgascorporation/financial-graphs/operating-profit-ebitda-percentage/ONGhttp://www.ongcindia.com/wps/wcm/connect/ongcindia/home/csrhttp://www.ongcindia.com/wps/wcm/connect/ongcindia/Home/Company/Vision-Mission/http://www.ongcindia.com/wps/wcm/connect/ongcindia/Home/Company/Board_of_Directors/