shakeel iocl final report (autosaved)123
TRANSCRIPT
-
8/9/2019 SHAKEEL IOCL Final Report (Autosaved)123
1/43
FINAL REPORT ON 3
MONTHS OFINTERNSHIP AT
TOPIC: selling ofXtraRewards cards, Alliance partnersand Recruitments of potential DSA.
FACULTY GUIDE: Mr. Suryakant Mishra
COMPANY GUIDE: Mr. Simitbinayak Endow
SUBMITTED BY: Shakeel Damani.
ENR. NO. 8NBBB083
-
8/9/2019 SHAKEEL IOCL Final Report (Autosaved)123
2/43
Content
OVERVIEW OF OIL INDUSTRY
COMPANY PROFILE
PRODUCTS
SERVICE
SWOT
SIP TOPIC INTRO ACHIEVEMENTS AND FINDINGS
CONCLUSIONS/LEARNINGS
-
8/9/2019 SHAKEEL IOCL Final Report (Autosaved)123
3/43
Overview of oil industry
The petroleum industry includes the global processes ofexploration,
extraction, refining, transporting (often by oil tankers and pipelines),
and marketing petroleum products. The largest volume products ofthe industry are fuel oil and gasoline (petrol).
Petroleum is also the raw material for many chemical products,
including pharmaceuticals, solvents, fertilizers, pesticides, and
plastics. The industry is usually divided into three major components:
upstream, midstream and downstream. Midstream operations are
usually included in the downstream category.
Petroleum is vital to many industries, and is of importance to the
maintenance of industrialized civilization itself, and thus is a critical
concern for many nations. Oil accounts for a large percentage of the
worlds energy consumption, ranging from a low of 32% for Europe
and Asia, up to a high of 53% for the Middle East. Other geographic
regions consumption patterns are as follows: South and Central
America (44%), Africa (41%), and North America (40%). The world
consumes 30 billion barrels (4.8 km) of oil per year, with developed
nations being the largest consumers. 24% of the oil produced in 2004
was consumed in the United States.[1] The production, distribution,
refining, and retailing of petroleum taken as a whole represents the
world's largest industry in terms of dollar value.
The petroleum industry contains some of the worlds largest
companies and has a strong influence on important global
http://en.wikipedia.org/wiki/Hydrocarbon_explorationhttp://en.wikipedia.org/wiki/Extraction_of_petroleumhttp://en.wikipedia.org/wiki/Oil_refineryhttp://en.wikipedia.org/wiki/Oil_tankerhttp://en.wikipedia.org/wiki/Pipeline_transporthttp://en.wikipedia.org/wiki/Petroleumhttp://en.wikipedia.org/wiki/List_of_crude_oil_productshttp://en.wikipedia.org/wiki/Fuel_oilhttp://en.wikipedia.org/wiki/Gasolinehttp://en.wikipedia.org/wiki/Petrochemicalhttp://en.wikipedia.org/wiki/Upstream_(oil_industry)http://en.wikipedia.org/wiki/Midstreamhttp://en.wikipedia.org/wiki/Downstream_(oil_industry)http://en.wikipedia.org/wiki/Industrieshttp://en.wikipedia.org/wiki/Civilizationhttp://en.wikipedia.org/wiki/Europehttp://en.wikipedia.org/wiki/Middle_Easthttp://en.wikipedia.org/wiki/Central_Americahttp://en.wikipedia.org/wiki/Central_Americahttp://en.wikipedia.org/wiki/Africahttp://en.wikipedia.org/wiki/North_Americahttp://en.wikipedia.org/wiki/Barrel_(unit)http://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/Oil_industry#cite_note-0http://en.wikipedia.org/wiki/Extraction_of_petroleumhttp://en.wikipedia.org/wiki/Oil_refineryhttp://en.wikipedia.org/wiki/Oil_tankerhttp://en.wikipedia.org/wiki/Pipeline_transporthttp://en.wikipedia.org/wiki/Petroleumhttp://en.wikipedia.org/wiki/List_of_crude_oil_productshttp://en.wikipedia.org/wiki/Fuel_oilhttp://en.wikipedia.org/wiki/Gasolinehttp://en.wikipedia.org/wiki/Petrochemicalhttp://en.wikipedia.org/wiki/Upstream_(oil_industry)http://en.wikipedia.org/wiki/Midstreamhttp://en.wikipedia.org/wiki/Downstream_(oil_industry)http://en.wikipedia.org/wiki/Industrieshttp://en.wikipedia.org/wiki/Civilizationhttp://en.wikipedia.org/wiki/Europehttp://en.wikipedia.org/wiki/Middle_Easthttp://en.wikipedia.org/wiki/Central_Americahttp://en.wikipedia.org/wiki/Central_Americahttp://en.wikipedia.org/wiki/Africahttp://en.wikipedia.org/wiki/North_Americahttp://en.wikipedia.org/wiki/Barrel_(unit)http://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/Oil_industry#cite_note-0http://en.wikipedia.org/wiki/Hydrocarbon_exploration -
8/9/2019 SHAKEEL IOCL Final Report (Autosaved)123
4/43
geopolitical developments. Economic growth, behaviour of the OPEC
countries, export of crude oil by republics of the former Soviet Union,
and increased environmental concerns and regulations are some of
the important drivers in this industry. The petroleum industry is
vulnerable to supply and demand imbalances. Prices have fluctuatedfrom $4 to $40 in the past.
In India, the petroleum industry is still regulated though the
government is slowly but surely liberalizing the industry. Almost 95
percent of petroleum products in India are controlled, the exceptions
being lubricants, LPG, toluene and benzene. The Oil Co-ordination
Committee (OCC), a central government body is responsible for
important decisions regarding investments, location, production, and
distribution and pricing of petroleum products. By allowing private
companies to market some of the products, and by rationalizing the
import tariffs, the government hopes to pave the way for a free
market in the oil industry in a gradual manner.
The controls of the past have significantly affected the structure of
the Indian petroleum industry. While the global trend is of integratedoil companies with a presence in all the sectors viz. exploration,
refining, marketing and even manufacture of downstream products,
presence of Indian companies is typically restricted either to the
upstream or to the downstream sectors. The oil sector is currently
dominated by the public sector. But the private sector is poised for
an increased role owing to the large number of projects on the anvil.
In India, demand for petroleum products is expected to grow at 7
percent till 2003, compared to the world average of 2 percent.
Till 1996, the oil sector in India was a predominantly utility industry
sector whose earnings were not prone to global price-volume
fluctuations. With the ongoing process of decontrol, pricing of some
petro-products such as diesel has been linked to international prices.
-
8/9/2019 SHAKEEL IOCL Final Report (Autosaved)123
5/43
By April 2002, the sector is expected to be de-regulated completely.
The prevailing APM (administered price mechanism) will be fully
dismantled.
COMPANY PROFILEINDIAN OIL. INDIA INSPIREDAs a leading public sector enterprise of India, IndianOil hassuccessfully combined its corporate social responsibility agenda withits business offerings, meeting the energy needs of millions of people
everyday across the length and breadth of the country, traversing adiversity of cultures, difficult terrains and harsh climatic conditions.
The Corporation takes pride in its continuous investments ininnovative technologies and solutions for sustainable energy flowand economic growth and in developing techno-economically viableand environment-friendly products & services for the benefit of itsconsumers.
MISSION
"to help enrich the quality of life of the community and preserveecological balance and heritage through a strong environmentconscience."
VISION
-
8/9/2019 SHAKEEL IOCL Final Report (Autosaved)123
6/43
A major diversified, transnational, integrated energy company, with
national leadership and strong environment conscience, playing a
national role in oil security and public sector.
COMPANY FORMATIONIn the year 1959 as Indian oil company Ltd. Indian oil corporation ltd.
was formed in 1964 with the merger of Indian refineries ltd.
DISTINCTION
Indian oil corporation ltd. Is indias largest commercial enterprise,
with a sales turnover of rs. 2,47,479 crore and profits of rs. 6963
crore for the year 2007-08. Indian oil is also the highest ranked Indian
company in the prestigious fortune global 500 listing, at 116th
position in 2008. It is also tha 18th largest petroleum company in the
world. Indian oil and its subsidiaries account for 49% petroleum
products market share, 40.40% refining capacity and 69%
downstream sector pipelines capacity in india.
It also owns 10 out of 19 refineries with a combined refining capacity
of 60.20 million metric tones per annum. These include two refineriesof subsidiary Chennai petroleum corporation ltd.The Corporation's
cross-country network of crude oil and product pipelines, spanning
about 9,300 km and the largest in the country, meets the vital
energy needs of the consumers in an efficient, economical and
environment-friendly manner.
IndianOil is investing Rs. 43,393 crore (US $10.8 billion) during the
period 2007-12 in augmentation of refining and pipeline capacities,
expansion of marketing infrastructure and product qualityupgradation as well as in integration and diversification projects.
FUTURE PLANS
IndianOil is currently forging ahead on a well laid-out road map
through vertical integration upstream into oil exploration &
-
8/9/2019 SHAKEEL IOCL Final Report (Autosaved)123
7/43
production (E&P) and downstream into petrochemicals and
diversification into natural gas marketing, besides globalisation of its
downstream operations.
In petrochemicals, IndianOil is envisaging Rs. 30,000 crore (US$ 7.4
billion) investment by the year 2011-12. Through the worlds largest
single-train Linear Alkyl Benzene (LAB) plant with an annual capacity
of 1,20,000 tonnes set up at its Gujarat Refinery, the Corporation has
already captured a significant market share of LAB in India, besides
exporting the product to Indonesia, Turkey, Thailand, Vietnam,
Norway and Oman. A world-scale Paraxylene/Purified Terephthalic
Acid plant (annual capacities: PX - 3,63,000 tonnes, PTA 5,53,000
tonnes) for polyester intermediates is already in operation at Panipat,
while a Naphtha Cracker with a capacity of 800,000 tonnes of
ethylene per annum, equipped with downstream polymer units is also
coming up at Panipat. A refinery-cum-petrochemicals complex at
Paradip, to be completed by the year 2011-12, will strengthen the
Corporations presence in the sector.
In E&P, IndianOil has bagged eight oil & gas blocks and two Coal Bed
Methane blocks under NELP (New Exploration Licencing Policy)
rounds in India, in consortium with other companies. It has also
acquired participating interest in two onshore blocks in Assam and
Arunachal Pradesh. Overseas ventures of the Corporation include two
blocks in Sirte Basin and Areas 95/96 in Ghadames basin of Libya,
Farsi Exploration Block in Iran, onshore farm-in arrangements in
Gabon, an on land block in Nigeria and two onshore blocks in Yemen.
IndianOil has incorporated Ind-OIL Overseas Ltd. a special purpose
vehicle for acquisition of overseas E&P assets in Port Louis,
Mauritius, in consortium with Oil India Ltd. (OIL).
In natural gas business, IndianOil is targeting sale of 2 million tonnes
in 2008-09. A technology innovation has been initiated to reach LNG
(Liquefied Natural Gas) directly to the doorstep of bulk consumers in
cryogenic containers for industrial as well as captive power
-
8/9/2019 SHAKEEL IOCL Final Report (Autosaved)123
8/43
applications. An LNG import terminal is proposed to be set up at
Ennore near Chennai. City gas distribution projects are in the pipeline
in partnership with other companies.
INDIAN OIL- A NATIONAL BRANDIndianOil has been adjudged India's No. 1 brand by UK-based Brand
Finance, an independent consultancy that deals with valuation of
brands. It was also listed as India's 'Most Trusted Brand' in the
'Gasoline' category in a Readers' Digest - AC Nielsen survey. In
addition, IndianOil topped The Hindu Businessline's "India's Most
Valuable Brands" list.
However, the value of the IndianOil brand is not just limited to its
commercial role as an energy provider but straddles the entire value
chain of gamut of exploration & production, refining, transportation &
marketing, petrochemicals & natural gas and downstream marketing
operations abroad. IndianOil is a national brand owned by over a
billion Indians and that is a priceless value.
OPERATION OF IOCL
-
8/9/2019 SHAKEEL IOCL Final Report (Autosaved)123
9/43
REFINING
Born from the vision of achieving self-reliance in oil refining and
marketing for the nation, IndianOil has gathered a luminous legacy of
more than 100 years of accumulated experiences in all areas of
petroleum refining by taking into its fold, the Digboi Refinery
commissioned in 1901.
IndianOil controls 10 of Indias 20 refineries. The group refining
capacity is 60.2 million metric tonnes per annum (MMTPA) or 1.2
million barrels per day -the largest share among refining companies
in India. It accounts for 33.8% share of national refining capacity.
The strength of IndianOil springs from its experience of operating thelargest number of refineries in India and adapting to a variety of
refining processes along the way. The basket of technologies, which
are in operation in IndianOil refineries include: Atmospheric/Vacuum
Distillation; Distillate FCC/Resid FCC; Hydrocracking; Catalytic
Reforming, Hydrogen Generation; Delayed Coking; Lube Processing
-
8/9/2019 SHAKEEL IOCL Final Report (Autosaved)123
10/43
Units; Visbreaking; Merox Treatment; Hydro-Desulphirisation of
Kerosene&Gasoil streams; Sulphur recovery; Dewaxing, Wax Hydro
finishing; Coke Calcining, etc.
The Corporation has commissioned several grassroot refineries andmodern process units. Procedures for commissioning and start-up of
individual units and the refinery have been well laid out and
enshrined in various customized operating manuals, which are
continually updated.
IndianOil 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. Major projects underimplementation include a 15 MMTPA grassroots refinery at Paradip,
Orissa, Naphtha Cracker and Polymer Complex at Panipat, Panipat
Refinery expansion from 12 MMTPA to 15 MMTPA, among others.
In addition, petrol quality upgradation projects are under
implementation at Panipat, Mathura, Barauni, Guwahati and Digboi
refineries proposed to be completed by the end of 2009.
On the environment front, all IndianOil refineries fully comply with
the statutory requirements. Several Clean Development Mechanism
projects have also been initiated. To address concerns on safety at
the work place, a number of steps were taken during the year,
resulting in reduction of the frequency of accidents.
Innovative strategies and knowledge-sharing are the tools available
for converting challenges into opportunities for sustained
organisational growth. With strategies and plans for several value-
added projects in place, IndianOil refineries will continue to play a
leading role in the downstream hydrocarbon sector for meeting the
rising energy needs of our country.
-
8/9/2019 SHAKEEL IOCL Final Report (Autosaved)123
11/43
PIPELINE
In Indias infrastructure, the petroleum pipelines form a crucial part
enabling sustained availability of petroleum products in all parts ofthe country for economic growth. The pipelines transport petroleum
products from refineries to demand areas and crude oil from import
terminals as well as domestic sources to the inland refineries. India
being a vast country, a wide network of pipelines becomes the
paramount requirement of transporting petroleum products to
interiors from refineries and crude oil to the land locked refineries.
It is an established fact that pipelines are preferred as a costeffective, energy efficient, safe and environment friendly method of
transportation for petroleum products and crude oil and are playing a
leading role in meeting the demand for petroleum products in India.
Economic growth and expansion of infrastructure in India offer
opportunities to better utilize the existing pipeline network in addition
to expand by constructing new pipelines.
IndianOil, the pioneer in cross-country petroleum product pipeline in
the Indian sub-continent constructed and commissioned its first
petroleum product pipeline, Guwahati-Siliguri Pipeline in the year
1964. Since then IndianOil has mastered the art and technology of
pipeline engineering. Over the last four decades the pipeline network
of IndianOil has grown to 10,000 km with a capacity of about 62
million metric tonnes per year. Commissioning of new projects worth
about Rs. 2,300 crore including LPG and R-LNG pipelines will reachthe capacity to 75 million metric tonnes per annum with a network of
over 10,000 km.
IndianOils sustained pursuit and implementation of proven safety
and environmental management systems have brought rich results.
-
8/9/2019 SHAKEEL IOCL Final Report (Autosaved)123
12/43
All operating pipeline units have been accredited with ISO 9000 and
ISO 14001 certificates.
Various initiatives in the field of project management, operations and
maintenance including training in countries like Oman, Ethiopia,Kuwait and Sudan have been undertaken.
Today IndianOil is well placed to provide seamless services in the
entire spectrum of petroleum pipelines covering techno-economic
feasibility studies, design and detailed engineering, project
execution, operations and maintenance, consultancy services in
augmentation and modernization, etc.
Supervisory Control and Data Acquisition (SCADA) and application
software expertise are available from project implementation to
commissioning including field services, maintenance and operational
support. Tanker handling, petroleum product and crude oil
accounting, quality control, ocean loss control, pigging procedure
development and analysis of pigging data, selection, testing and
evaluation of drag reducers, operations and maintenance of tank
farm and pump stations are other areas of expertise available withIndianOils Pipelines Division.
FUEL MARKETING
IndianOil provides a wide range of marketing services and
consultancy in fuel handling, distribution, storage and fuel/lube
technical services. With a formidable bank of technical and
engineering talent, IndianOil is fully equipped to handle small tolarge-scale infrastructural projects in the petroleum downstream
sector anywhere in the country. Our project teams have
independently or jointly as a consortium, have set up depots,
terminals, pipelines, aviation fuel stations, filling plants, LPG bottling
plants, amongst others. IndianOil's fuel management system to bulk
-
8/9/2019 SHAKEEL IOCL Final Report (Autosaved)123
13/43
customers offer customized solutions that deliver least cost supplies
keeping in mind usage patterns and inventory levels. A wide network
of lubricant and fuel testing laboratories are available at major
installations which is further backed by sector-wise expertise in the
core sectors of power, steel, fertiliser, gas plants, textile mills, etc.Cutting edge systems and processes are designed around one simple
belief-to provide valuable customers with an unbeatable edge in their
business. IndianOil's supply and distribution network is strategically
located across the country linked through a customized supply chain
system backed by front offices located in conceivably every single
town of consequence.
The wide network of services offered by IndianOil, Marketing Divisionis illustrated in this section, which includes; commercial/reticulated
LPG; total fuel management/ consumer pumps; IndianOil Aviation
Service; LPG Business (non-fuel alliances); loyalty programs; retail
business (non-fuel alliances) and SERVO technical services.
RESEARCH AND DEVELOPMENT
IndianOil's worldclass R&D Centre, established in 1972, has state-of
the art facilities and has delivered pioneering results in lubricants
technology, refining process, pipeline transportation, bio-fuels and
fuel-efficient appliances.
Over the past three decades, IndianOil R&D Centre has developed
over thousands of formulations of lubricating oils and greases
responding to the needs of Indian industry and consuming sectorslike Defence, Railways, Public Utilities and Transportation. The Centre
has also developed and introduced many new lubricant products to
the Indian market like multigrade railroad oils.
Focussed research in the areas of lubricants and grease formulations,
-
8/9/2019 SHAKEEL IOCL Final Report (Autosaved)123
14/43
fuels, refining processes, biotechnology, additives, pipeline
transportations, engine evaluation, tribiological and emission studies,
and applied metallurgy has won several awards. The R&D Centre's
activities in refining technology are targeted in the areas of fluid
catalytic cracking (FCC), hydroprocessing, catalysis, residupgradation, distillation simulation and modeling, lube processing,
crude evaluation, process optimization, material failure analysis and
remaining life assessment and technical services to operating units.
In FCC, apart from process optimization and catalyst evaluation the
accent is on the development of novel technologies aimed at value
addition to various refinery streams. IndianOil's R&D Centre is fully
equipped to provide technical support to commercial hydrocrackerunits in the evaluation of feedstocks and catalysts, optimization of
operating parameters, evaluation of licensors' process technologies,
development of novel processes and simulation models.
Material failure analysis and remaining life assessment of refinery
equipment and installations is a highly specialized service being
provided by the R&D Centre to the refineries of IndianOil as well as
other companies.
With a vision of evolving into a leader as technology provider through
excellence in management of knowledge, technology and innovation,
IndianOil has launched IndianOil Technology Ltd. The new subsidiary
markets the intellectual properties developed by IndianOil R&D
Centre.
-
8/9/2019 SHAKEEL IOCL Final Report (Autosaved)123
15/43
Organizational structure
Top Management
Middle
Management
Junior
Management
All India Employee strength of IOCL: 35000
Orissa State Employee Strength: 250 (HEIRARCHY)
Divisional Office/Area
Office
Regional Office
State Office
Head Office- IOCL
-
8/9/2019 SHAKEEL IOCL Final Report (Autosaved)123
16/43
FINANCIAL
PERFORMANCE
2005 -06 2006 -07 2007- 08 2008- 09
HY
Turnover
(Rs./Core)
183,172 220,779 247,479 160,263
Profit After
Tax
(Rs./Cr)
4,915 7,499 6,963 (6,632)
Earning Per
Share (Rs.)
42. 08 62. 90 58. 39 (55.62)
-
8/9/2019 SHAKEEL IOCL Final Report (Autosaved)123
17/43
Debt-Equity
Ratio
0.90:1 0.78:1 0.86:1 1.75:1
-
8/9/2019 SHAKEEL IOCL Final Report (Autosaved)123
18/43
PRODUCTS DETAILSIndianOil is not only the largest commercial enterprise in the country
it is the flagship corporate of the Indian Nation. Besides having adominant market share, IndianOil is widely recognized as Indias
dominant energy brand and customers perceive IndianOil as a
reliable symbol for high quality products and services.
Benchmarking Quality, Quantity and Service to world-class standards
is a philosophy that IndianOil adheres to so as to ensure that
customers get a truly global experience in India. Our continued
emphasis is on providing fuel management solutions to customers
who can then benefit from our expertise in efficient sourcing and
least cost supplies keeping in mind their usage patterns and
inventory management.
IndianOil is a heritage and iconic brand at one level and a
contemporary, global brand at another level. While quality, reliability
and service remains the core benefits to our customers, our stringent
checks are built into operating systems, at every level ensuring the
trust of over a billion Indians over the last four decades.
The Retail Brand template of IOC consists of XtraCare(Urban),
Swagat(Highway) and Kisan Seva Kendras(Rural). These brands are
widely recognized as pioneering brands in the petroleum retail
segment. IndianOils leadership extends to its energy brands - Indane
LPG, SERVO Lubricants, Autogas LPG, XtraPremium Branded Petrol,
XtraMile Branded Diesel, XtraPower Fleet Card, IndianOil Aviation and
XtraRewards cash customer loyalty programme.
IndianOil is not only the largest commercial enterprise in the country
it is the flagship corporate of the Indian Nation. Besides having a
dominant market share, IndianOil is widely recognized as Indias
dominant energy brand and customers perceive IndianOil as a
reliable symbol for high quality products and services.
-
8/9/2019 SHAKEEL IOCL Final Report (Autosaved)123
19/43
IndianOil is a heritage and iconic brand at one level and a
contemporary, global brand at another level. While quality, reliability
and service remains the core benefits to our customers, our stringent
checks are built into operating systems, at every level ensuring the
trust of over a billion Indians over the last four decades.
AUTO GAS
The fuel is marketed by IndianOil under the brand name AutoGas
IndianOil has setup 173 Auto LPG Dispensing Stations (ALDS)
covering 82 cities across India.AutoGas (LPG) is a clean, high octane, abundant and eco-friendlyfuel. It is obtained from natural gas through fractionation and fromcrude oil through refining. It is a mixture of petroleum gases likepropane and butane. The higher energy content in this fuel results ina 10% reduction of CO2 emission as compared to MS.
INDIANOIL AVIATION SERVICE
IndianOil is India's first ISO-9002 certified oil company conforming tostringent global quality requirements of aviation fuel storage &handling. IndianOil Aviation also caters to the fuel requirements ofthe Indian Defence Services, besides refueling VVIP flights at all theairports and remote heli-pads/heli-bases across the Indiansubcontinent.
IndianOil Aviation Service is a leading aviation fuel solution providerin India and the most-preferred supplier of jet fuel to majorinternational and domestic airlines. Between one sunrise and the
next, IndianOil Aviation Service refuels over 1500 flights from thebustling metros to the remote airports linking the vast Indianlandscape, from the icy heights of Leh (the highest airport in theworld at 10,682 ft) to the distant islands of Andaman & Nicobar.
BITUMEN
-
8/9/2019 SHAKEEL IOCL Final Report (Autosaved)123
20/43
The common binders used in bituminous road constructions are roadtars and Bitumen. Bitumen has gradually replaced road tar for roadconstruction purposes mainly because of its greater availability ascompared to road tars. It is principally obtained as a residual productin petroleum refineries after higher tractions like gas, petrol,kerosene and diesel, etc., are removed generally by distillation fromsuitable crude oil. Indian standard institutions define Bitumen as ablack or dark brown non-crystalline soil or viscous material havingadhesive properties derived from petroleum crude either by naturalor by refinery processes.
IndianOil refineries at Panipat, Mathura, Koyali, Haldia and CPCLproduce grades Bitumen 80/100; Bitumen 60/70; Bitumen 30/40;Bitumen CRMB and Bitumen Emulsion- 'Indmul'. It is available both in
packed and in bulk.
General uses of Bitumen:
For civil engineering works
Constructions of roads, runways and platforms.
Water proofing to prevent water seepage. Mastic floorings for factories and godowns.
Canal lining to prevent eroding.
Dump-proof courses for masonry.
Tank foundation.
Joint filling material for mason
Industries
Electrical cables and junction boxes.
Battery manufacturers as sealing compound.
-
8/9/2019 SHAKEEL IOCL Final Report (Autosaved)123
21/43
Paint industries for manufacturing black paints and anticorrosive paints.
Ceramic industries.
Printing inks. Water proof papers.
Electrical capacitors.
Bituminous felts.
Bituminous grease for lubricating open gears.
HIGH SPEED DIESEL
Petroleum derived diesel (called as petrodiesel) is a mixture ofstraight run product (150 C and 350 C) with varying amount ofselected cracked distillates and is composed of saturatedhydrocarbons (primarily paraffins including n , iso , andcycloparaffins), and aromatic hydrocarbons (including napthalenesand alkylbenzenes).
The Indian Standard governing the properties of diesel fuels is IS
1460:2005 (5th Rev). Important characteristics are ignitioncharacteristics, handling at low temperature, flash point.
BULK INDUSTRIAL FUEL
In the large volume consumer segment, IndianOil's providescomplete Fuel Management Solutions to customers who require fuelsin bulk and have dedicated facilities for storage and handling. Thesecustomers benefit from IndianOil's efficient sourcing and suppliesmatched to their usage patterns and inventory.
IndianOil's tankages are strategically located across the country andare custom-designed to maintain low-cost supplies that can berapidly transported through a sophisticated supply-chainmanagement system.
-
8/9/2019 SHAKEEL IOCL Final Report (Autosaved)123
22/43
IndianOil's marketing operations network of storage, distribution andsupply hubs is backed by on-time logistics and round-the-clock after-sales service. Many institutional customers like the railways, steelplants, thermal power plants, textile mills, power plants, statetransport undertakings, large corporates and fleet & logisticscompanies tie-up for long-term contracts backed by IndianOil'scomprehensive fuel & lubricants consultancy-a formidable expertisethat IndianOil has built over nearly five decades of working with across-section of customers from a wide-range of industrial sectors.
INDANE GAS
Indane is today one of the largest packed-LPG brands in the world.IndianOil pioneered the launch of LPG in India in the 1970s andtransformed the lives of millions of people with the introduction of theclean, efficient and safe cooking fuel. LPG also led to a substantialimprovement in the health of women in rural areas by replacingsmoky and unhealthy chullahs with Indane. It is today a fuelsynonymous with safety, reliability and convenience.
SERVO LUBES AND GREASES
IndianOil's SERVO range of lubricants reigns as the undisputedmarket leader in the Indian lubricants market. Known for its cutting-edge technology and high-quality products, SERVObacked by
IndianOil's pioneering R&D, extensive blending and distributionnetwork, sustained brand enhancement and new generationpackaging is a one-stop shop for complete lubrication solutions in theautomotive, industrial and marine segments.
In the retailing segment, besides IndianOil petrolstations,SERVO range of lubricants is available through a networkofSERVOXpress stations, bazaar outlets and thousands of auto spareparts shops across the country. The SERVO range includes over 500
lubricants and 1200 formulations encompassing literally everylubricant requirement.
MARINE FUELS AND LUBRICANTS
IndianOil caters to all types of bunker fuels and lubricants required byvarious types of vessels operating throughout the world in theshipping industry. The Bunker supplies are made at all major ports of
-
8/9/2019 SHAKEEL IOCL Final Report (Autosaved)123
23/43
India; Mumbai, Kandla, Vasco, Chennai, Tuticorin, Vizag, Cochin, NewMangalore, Kolkata, Paradeep, JNPT, Port Blair and Haldia. Apart fromIndian Navy whose 100% bunker requirement is met by IndianOil, italso supplies bunker fuels to all major shipping and dredgingcompanies of India. Spot requirement of different vessels calling atIndian ports are undertaken through nominations received from localshipping agents and international bunker trader/brokers. WhileIndianOil supplies Furnace Oil (FO), Light Diesel Oil (LDO) and HighFlash High Speed Diesel (HFHSD) meeting the stringent BISspecifications, it also offers the entire range ofSERVO brand ofmarine grade lubricants.
MS/ GASOLINE
In view of the auto fuel policy issued by Govt of India, more & morestringent specifications (equivalent to Euro II, Euro III, Euro IV) arebeing made applicable for the gasolines being marketed in India. Thishas led to reduction of environmentally polluting factors in gasolines.
Gasoline is a complex mixture of relatively volatile hydrocarbons thatvary widely in chemical & physical properties and are derived fromfractional distillation of crude petroleum with a further treatmentmainly in terms of improvement of its octane rating. The hundreds of
individual hydrocarbons in gasoline range from c4 to c11.
For e.g. XTRA PREMIUM
PETRO CHEMICALS
India is amongst the fastest growing petrochemicals markets in theworld. Taking this into consideration and to enhance its downstreamintegration, IndianOil is focusing on increasing its presence in the
domestic petrochemicals sector besides the overseas marketsthrough systematic expansion of customer base and innovativesupply logistics.
Petrochemicals have been identified as a prime driver of futuregrowth by IndianOil. The Corporation is envisaging an investment of
-
8/9/2019 SHAKEEL IOCL Final Report (Autosaved)123
24/43
Rs 30,000 crore in the petrochemicals business in the next few years.These projects will utilise product streams from the existing refineriesof IndianOil, thereby achieving better exploitation of the hydrocarbonvalue chain.
SPECIAL PRODUCTS
Other than the regular petroleum products like light distillates,middle distillates, heavier products like Furnace Oil, Bitumen, etc.,IndianOil refineries also manufacture petroleum products for specificapplications. These specific applications could be feed stock forchemical industry, raw material for specific industries and solid fuels.
The petroleum products, produced for specific applications are called,
'Petrochemicals and Specialties (P&S) Products'.
Every petroleum refinery is not designed to produce P&S productsbut IndianOil's refineries have been planned to make a large portfolioof P&S products.
SUPERIOR KEROSENE OIL
Kerosenes are distillate fractions of crude oil in the boiling range of150-250C. They are treated mainly for reducing aromatic content toincrease their smoke point (height of a smokeless flame) andhydrofining to reduce sulphur content and to improve odour, colour &burning qualities (char value).
Kerosene is used as a domestic fuel for heating / lighting and also for
manufacture of insecticides/herbicides/fungicides to control pest,weeds and fungi. Since kerosene is less volatile than gasoline,increase in its evaporation rate in domestic burners is achieved byincreasing surface area of the oil to be burned and by increasing itstemperature. The two types of burners which achieve this fall intotwo categories namely vaporisers & atomisers.
-
8/9/2019 SHAKEEL IOCL Final Report (Autosaved)123
25/43
The Indian Standard governing the properties of kerosene is IS1459:1974 (2nd Rev).
CRUDE OILCrude oil - as petroleum directly out of the ground is called - is aremarkably varied substance, both in its use and composition. Crudeoil is formed from the preserved remains of prehistoric zooplanktonand algae, which have been settled to the sea (or lake) bottom inlarge quantities under anoxic conditions. It was formed over millionsof years from the remains of tiny aquatic plants and animals thatlived in ancient seas due to compression and heating of ancientorganic materials over geological time. The oldest oil-bearing rocks
date back to more than 600 million years, the youngest being as oldas about 1 million years.
ServiceIOC Services
IndianOil provides a wide range of marketing services andconsultancy in fuel handling, distribution, storage and fuel/lube
technical services. With a formidable bank of technical andengineering talent, IndianOil is fully equipped to handle small tolarge-scale infrastructural projects in the petroleum downstreamsector anywhere in the country. Our project teams haveindependently or jointly as a consortium, have set up depots,terminals, pipelines, aviation fuel stations, filling plants, LPG bottlingplants, amongst others. IndianOil's fuel management system to bulk
-
8/9/2019 SHAKEEL IOCL Final Report (Autosaved)123
26/43
customers offer customized solutions that deliver least cost supplieskeeping in mind usage patterns and inventory levels. A wide networkof lubricant and fuel testing laboratories are available at majorinstallations which is further backed by sector-wise expertise in thecore sectors of power, steel, fertiliser, gas plants, textile mills, etc.Cutting edge systems and processes are designed around one simplebelief-to provide valuable customers with an unbeatable edge in theirbusiness. IndianOil's supply and distribution network is strategicallylocated across the country linked through a customized supply chainsystem backed by front offices located in conceivably every singletown of consequence.
SWOT ANALYSISINTERNAL ENVIRONMENT
Strengthso IOC controls 10 refineries, by virtue of which it has a total share
of around 40% of Indias overall refining capacity. IOC has alsoacquired equity stakes in CPCL and BRPL, and in 2001, theserefineries became subsidiaries of IOC.
-
8/9/2019 SHAKEEL IOCL Final Report (Autosaved)123
27/43
o 58% of IOCs refining capacity is located in the Northern and
Western regions, which are high demand and high growth areas.
o Although its refineries are located the interior of the country,
and not near the major ports IOC has a very strong distributionnetwork by virtue of having a share of 48% in the countrysproduct pipelines. The total capacity of these product pipelines is49.79 MMT.
o IOC also acquired management control of the marketing
company IBP, thereby strengthening its position in these activities.It also has a dominant share in all segments in terms marketinginfrastructure. Its network includes 19830 retail outlets, 8000 LPGdistributors, and 6492 kerosene/LDO dealers.
o By virtue of entering into extensive joint venture agreements,
and of its own initiative as well, the company has a presence invarious other related activities such as petroleum storage,pipelines, lube additives, exploration, petrochemicals, gas, trainingand consultancy, etc.
o The company has already entered overseas markets such as Sri
Lanka, Maldives, and Oman and is presently considering enteringTurkey through a JV. The company is in talks with Caliak of Turkey
to set up a 10 million TPA grassroot refinery with an investment of$2 billion and establish retail business. IOC is also weighing thepossibility of entering Indonesia.
-
8/9/2019 SHAKEEL IOCL Final Report (Autosaved)123
28/43
o IOC has also started exploring the overseas markets for
increasing its scope of operations. Its interests include downstreamactivities in Sri Lanka, Maldives, Oman, and Nepal; interest in thelubes business in Maldives, Dubai, Bangladesh, Sri Lanka, etc;among others.
Sustained growth in turnover from 57.97 MMT to 62.61 MMT
This is ensured by
Cross country retail network comprising of 17574 outlets( 1196 outlets commissioned in 2008)
Varied range of products
Maintained market leadership in branded fuels in 2008
XTRAMILE Diesel : 58% Share
XTRAPREMIUM Petrol : 45.5% Share
Over 800 varieties of lubricants
Creating Unique Selling Points in all customer segments
(consumer and retail) through XtraCare Service Stations
-Diversified range of core sector customers
Railways
Power House
Fertiliser Plants
Defence
Aviation
Coal
-
8/9/2019 SHAKEEL IOCL Final Report (Autosaved)123
29/43
The growth is insulated from the cyclical demand fluctuations due todiversified customer base.
Unique Area of Strength
o Wide Network of Cross Country Pipelineso State of Art Research and Development Center
o Commercialization of in-house technology
o Commissioned Indias first Hydrogen-CNG dispensing
station
o Only company to have presence in high consumption two
of the Refineries North Area
Weakness
o Difference in quality and price at different franchise outlets all
over India in spite of high quality focus by the company.
Opportunity
The IOCL has much opportunity in the present market conditions.This is because the petroleum products are become a need foreveryone and still contains a lot of scope for customization.
The various opportunities are listed below.
o Since the company has the maximum no. Of out lets and also
the maximum no. Of refineries in India, it can very easily go for
extension at any point of time, and can introduce any newproducts, which will get support from its huge market network.
o The company can make the buying process more easy for the
customers, by implying many more schemes in the range ofXTRAPOWER AND XTRAREWARD.
-
8/9/2019 SHAKEEL IOCL Final Report (Autosaved)123
30/43
o The company can think over the issue to build its own pipelines,
so that it will be a independent player and it will also support itsaviation fuel supply.
o Company have a great scope in E&P. It is already involves in
E&P but only in a very limited scale.
o vibrant economy industrial activity
o market that is growing
o emission control normso export market/market overseas
o untapped rural market
ThreatsSince the company is the market leader in the field , so havemaximum threats from the other players and many other issues. Thelists of threats are given below.
oThe foreign players with more advanced technology are the
biggest threat for the company.
oThe crude oil supply is also a big issue in front of the company,
because the company cannot fix its price and so, some time hadoperate in loss also. it is the biggest problem because themaximum part of their crude is been imported.
o In future the market will welcome more private players, which
will eat up its market share.customer preference/usage
o bio-fuel vehicles
o battery run bikes
crude and overheads is a major impact on the price .o Black marketing and making threat in the people
-
8/9/2019 SHAKEEL IOCL Final Report (Autosaved)123
31/43
o All the Pipelines owned by IOCL, to be opened for other
competitors (as IOCL is PSU)
TITLED INTRODUCTION
MARKETING AND PROMOTION OF XTRAREWARDS LOYALTYPROGRAM.
Introduction to the project:In this competition world it becomes very necessary to retain loyalcustomers. The commercial benefits of loyal customers are wellknown by the brand managers. The cost of acquiring a new customeris always more than retaining an old customer.
Loyal customers are also important because they provide theconsistency of volume critical for stocking and managing just in timeinventory to maintain the consistency of customer demand during
crisis which is required to run any retail business. All of these arecompelling reasons that retailers are on a quest for customer loyaltyand are increasingly looking at implementing loyalty programs orloyalty cards of some form.
In this project, we have been assigned IOC retail outlets which areparticipating in the XtraRrewards Loyalty program. Our task is topromote and sell the XtraRewards Loyalty card to the customers andat the same time garner customer opinions and suggestions aboutthe loyalty program. Tapping local alliances is another aspect of this
project.
At the same time, we have to check whether the retail outlets arecarrying out the implementation of the loyalty program in the rightway.
Objective of the Project:
-
8/9/2019 SHAKEEL IOCL Final Report (Autosaved)123
32/43
-
8/9/2019 SHAKEEL IOCL Final Report (Autosaved)123
33/43
then be redeemed for products which may or may not be directlyrelated to the business.
Loyalty cards are the most common form of loyalty programs foundthroughout the world today. Some of the first loyalty programs were
instituted by airlines in the 1970s in the form of frequent flyer miles.In these loyalty programs, one accrues points by flying on the airlineand then 'cash in' the points in exchange for tickets, upgrades, oreven third-party benefits. In the past decade, many non-airlinebusinesses have combined their own loyalty programs with those ofthe airlines, offering frequent flyer miles in exchange for everythingfrom telephone usage to purchasing gasoline.
Loyalty programs at Indian Oil
IndianOil's loyalty programs are designed exclusively to benefitcustomers who have been patronizing the brand for over fourdecades.
XTRAREWARDS Loyalty Program
IndianOil XTRAREWARDS is India's first on-line rewards program thatseeks to inculcate the habit of redeeming points. The loyalty programrewards customers paying by cash, credit and debit cards.
Each transaction is confirmed on-line through a charge slip andcustomers can earn points on fuel/lube purchases at participatingIndianOil Retail Outlets. Additional points can also be earned outside
-
8/9/2019 SHAKEEL IOCL Final Report (Autosaved)123
34/43
the IndianOil network, covering prominent FMCG, Food, Automobile,Travel, Entertainment, Apparel and Hospitality sectors.
Apart from redeeming the accumulated points instantly on fuel /SERVO Lubes at participating Retail Outlets, the card holder can also
redeem the points to get some exciting gift items from a catalogue.
The redemption on gifts can be registered either from theparticipating Retail Outlets or from the comfortable confines of one'shome through the 24x7 IVRS Help Line (022-2880 9030).
Point system:
When customer spends Rs. 75 then he earns 1 point. The balanceamount gets carry forward in next cash transaction. As a member,
the customer can earn Xtrareward points (XRPs) on purchase atparticipating Indian oil retail outlets and enjoy specific benefits atfranchisees, affiliates and outlets of alliance partners with whomIndian oil may have alliance from time to time. The XRPs earned caninstantly be redeemed for fuel and servo lubes at participating Indianoil retail outlets. Customer can also redeem the points against itemsgiven in the rewards catalogue.
Apart from rewarding cash customers, the program also rewardscustomers who pay by credit or debit cards. However, the customer
has to produce his XTRAREWARD card to earn XRPs.
Point system in Xtrarewards:
Sr.No.
Product Description XRPsRequired
1. Rs 100 worth of fuel 334
2. Rs 100 worth of petrol + oil mix 3343. Rs 100 worth of Xtra Premium 334
4. Rs 100 worth of Xtra Premium + oil mix 334
5. Rs 100 worth of Xtra mile 334
6. Rs 100 worth of diesel 334
-
8/9/2019 SHAKEEL IOCL Final Report (Autosaved)123
35/43
7. Rs 100 worth of auto LPG 334
8. Rs 100 worth of CNG 334
9. 500 ml servo 2T supreme 234
10. 40 ml servo 2T supreme pouch 20
11. 60 ml servo 2T supreme pouch 29
12. 1 litre servo super multi grade 20w-40 460
13. 500 ml servo kool plus 400
For enhanced security, the XtraRewards card transactions are
authorized through unique Personal Identification Number (PIN).Moreover, the card can help track each vehicle's movement acrossremote corners of the country leading to an improvement in vehicleutilization and route compliance.
-
8/9/2019 SHAKEEL IOCL Final Report (Autosaved)123
36/43
ACHIEVEMENTSXTRAREWARDS CARDS
Weeks Weeklytargets
Weeklyachievements
% ofachievements
1 25x60=1500
27x60=1620 108%
2 25x60=1500
30x60=2100 120%
3 25x60=1500
30x60=1800 120%
4 125x60=7500
125x60=7500 100%
5 125x60=75 131x60=7860 105%
-
8/9/2019 SHAKEEL IOCL Final Report (Autosaved)123
37/43
006 125x60=75
00127x60=7620 102%
7 125x60=7500 130x60=7800 104%
8 125x60=7500
146x60=8760 117%
9 125x60=7500
140x60=8400 112%
10 125x60=7500
109x60=6540 88%
11 125x60=7500
78x60=4680 63%
12 125x60=7500
83x60=4980 67%
-
8/9/2019 SHAKEEL IOCL Final Report (Autosaved)123
38/43
ALLIANCE PARTNERS
Month monthlytarget
monthlyachievement
% ofachievement
1 Two Nil Nil2 Two 1 50%3 Two 3 150%
DSA RECRUITMENT
Weeks Weeklytargets
Weeklyachievements
% ofachievements
6 2 1 50%7 2 2 100%8 2 2 100%9 2 2 100%
10 2 3 150%11 2 2 100%12 2 2 100%
-
8/9/2019 SHAKEEL IOCL Final Report (Autosaved)123
39/43
FINDINGS :
o XtraRewards scheme is not available at all the retail outlets of
Indian oil. The scheme is available in only retail outlets in
Bhubaneswar.
o Most of the people are not aware regarding the XtraRewards
scheme.
o Pump-attendants are not interested in selling the cards.
o Cards which were sold by dealers earlier were not registered
with IOCL as a result of which cards started getting blocked.
o Booklets are in English. This could not be understood by all the
people.
o There are no pamphlets available at pumps, which could give a
brief idea about the loyalty program.
o There is no dedicated person for collecting the forms. So, there
is a large backlog of forms.
o The card swiping machines are not properly maintained at some
places leading to many customer complaints.
-
8/9/2019 SHAKEEL IOCL Final Report (Autosaved)123
40/43
CONCLUSIONXtraRewards is a step of IOC towards building loyalty among the
existing customers. Loyalty program works only when the customer is
emotionally attached to the brand.
Positioning of the loyalty program is very critical so that these
benefits do not appear to be a just discount under the garb of loyalty
this greatly affects the customer retailer relationship and greatlyreducing the program to a pure commercial transaction where the
customer constantly looks for deals.
We need to enroll the right customers. We can recognize the highest
value customers to recognize and reward their value to our
organization, we can cultivate high potential customers who currently
split their purchases between us and our competitors or reach out to
those most at risk of churning. Knowing which customer groups are
most important to us allows crafting recognition and rewardingstrategy that piques their interest.
-
8/9/2019 SHAKEEL IOCL Final Report (Autosaved)123
41/43
RECOMMENDATIONSIdeas to increase & retain customer base
o Need more benefits in fuel rather than alliance partners in order
to attract other brands loyal customers.o Target new vehicle owner by tie up with the car companies and
give XTRAREWARDS card with every new vehicle.o Try to know actual reasons for not using the card for longer
period of time.
At retail outlets
o Digital display on retail outlets.(i) To communicate with the customers about IOC program &
brands and(ii) for advertisement of alliance partners & earning revenue outof it.
o Motivate pump attendants by giving price to attendant of the
month which will be the highest card seller of that month.o XTRAREWARDS Banners should be put at proper location in the
pumpo XTRAREWARDS program should be started at all other locations
as soon as possible.
For Welcome kit
o Application Form as well as information booklet should be in
Hindi and oriya.
-
8/9/2019 SHAKEEL IOCL Final Report (Autosaved)123
42/43
o Sufficient Pamphlets should be distributed to all pumps &renewal of pamphlets should be done as & when new offersfrom alliance partners come.
-
8/9/2019 SHAKEEL IOCL Final Report (Autosaved)123
43/43
PROMOTIONAL TOOLS USED IN SELLING THE XTRAREWARDS CARD