case analysis on iocl

7/29/2019 case analysis on IOCL

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Indian Oil CorporationLtd.- The Mathura Refinery


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Indian Oil Corporation

It is an Indian state-owned oil and gas corporation incorporated in 1959with its headquarters in New Delhi, India

Ranked 226 in Fortune Global 500 in 2001

Indian Oil operates the largest and the widest network of fuel stations in thecountry numbering about 20,575

Supplies Indane cooking gas to over 66.8 million households through anetwork of 5,934 Indane distributors.

In the year 2001/02, IOCL had a turnover of Rs.1,149 billion with a netprofit of Rs.29 billion


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The Mathura Refinery

Mathura Refinery, the sixth refinery of Indian Oil was commissioned in

1982 with a capacity of 6.0 MMTPA to meet the demand of petroleum

products in north western region of the country.

Refinery is located along the Delhi-Agra National Highway about 154 KMaway from Delhi.

Mathura Refinery has planted 1,67,000 trees in surrounding areas including

refinery & township and 1,15,000 trees in Agra region around Taj Mahal.

The Ecological Park which is spread across 4.45 acres, is a thriving greenoasis in the heart of sprawling Refinery.


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SWOT Analysis of IOCL

Strengths

India's largest commercial enterprise with a strong brand name

Operates 10 refineries in India

Accounts for a 47% share in the petroleum products market ,34.8%share in refining capacity and a 67% downstream sector pipelinescapacity in India

Huge distribution network through retailing


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Weakness

Legal Issues

Employee Management

Bureaucracy

Volatility in the crude market & subsidy burden


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Opportunities

Increasing fuel/oil prices

Increasing Natural Gas market

More oil well discoveries

Expand export market


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Threats

Government Regulations

High competition from Bharat Petroleum, Hindustan

Petroleum, Reliance Industries and ONGC


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Current Status of Mathura Refinery

At present it has the capacity of processing 8.0 MMTPA of

crude oil. Mathura refinery is being considered for expanding

capacity 11.0 MMTPA

Secondary units such as Once Through Hydro-cracker unit

(OHCU), Catalytic Reforming Unit (CRU), new Sulphur

Recovery unit (SRU),etc were integrated in the refinery

configuration.

This changes in the configuration of the Refinery were made

so that there is minimal impact on the environment.


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Current Status of Mathura Refinery

The Refinery enjoys the distinction of being the first refinery

in India capable of producing 100% auto fuels that meets Euro

- III norms.

The refinery was in the news for allegedly causing the white

marble of the Taj Mahal to yellow.

Mathura Refinery is planning to undertake a massiveplantation programme


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Contribution of IOCL in Refineries

Indian Oil controls 10 of Indias 22 refineries.

Highest ever crude throughput of 55.62 Million Metric Tonnes

(MMT) surpassing the previous best of 52.96 MMT recorded in

2010-11.

Distillate yield touched a record level of 77.8 per cent and the

refineries achieved the lowest MBN (indicating the combined

energy utilization factor)

Currently constructing a major 15 MMTPA green-field refinery

project in Paradip, Odisha.


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Contribution of IOCL in Refineries

The Corporation has commissioned several grassroot refineriesand modern process units.

Indian Oil refineries have an ambitious growth plan with an

outlay of about Rs. 55,000 crore for capacity augmentation,de-bottlenecking, bottom upgradation and quality upgradation.

Several Clean Development Mechanism projects have alsobeen initiated.


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By: Mithun

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case analysis on iocl

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