Project Report On How to enhance sales of commercial Liquefied Petroleum Gas

Project report submitted to the INSTITIUTE OF TECHNOLOGY & MANAGEMENT

In partial fulfillment of the requirement for the award of the Certificate of

MASTER OF BUSINESS ADMINISTRATION

Submitted By:-

Anjali Kain MBA (3 sem) Session: - 2009-2011

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ACKNOWLEDGEMENT

My indebtedness and gratitude to the many individuals who have helped to shape this thesis in its present form cannot be adequately conveyed in just a few sentences. Yet I must record my immense gratitude to the brains and hands that worked overtime to support my efforts in making a near comprehensive study of a topic as broad as How to enhance sales of commercial Liquefied Petroleum Gas , in Indian oil corporation Ltd., Delhi. I am highly obliged to Mr. Sachin Agarwal, & Mr. Pradeep Kumar M K, IOCL, Delhi for giving me this opportunity to work on this challenging project and lending me their learning over the months and continuous guidance in their capacity as my Project Guide. Next in line I thank all the professors of ITM for apprising me of their specific requirements and the nuances of the system and helping me immensely with their phenomenal and participative responses during the interviews I had with them. The thank list would be far from incomplete without the mention of all such Supervisors, Associates and all the employees of IOCL, Delhi. Last but not the least I am thankful to Almighty God, my parents, my uncle, my friends for their immense support and cooperation throughout. In fact the list can never be completed. Anjali Kain

Summary:
Liquefied petroleum gas refers to the gaseous liquids that are recovered from the processing of natural gas and the refining of crude oil. This LPG consists of two commercial products propane and butane both of which are ----- at ambient temperature and pressure and yet are liquid when stored and transported under pressure or in a refrigerated state. India is a huge LPG retail market. The number of registered customers reached 100 million in April 2008. Annual sales are close to 12 million tons and growing at 5-6 percent per year. However, this market is being supported by Government price subsidies on household cylinders, subsidies which have caused market distortions and resulted in the illegal diversion of the subsidized LPG for home use to the nonsubsidized commercial sector. The Government maintains a subsidized LPG price (below free market levels) for households in India because it is politically popular to do so and politically dangerous to take it away. Two years ago, there had been widespread reports of illegal LPG cylinder diversions from the subsidized household sector to the unsubsidized commercial sector. The Government instituted a clampdown. They sent inspectors around the country to monitor the monthly sales patterns of LPG distributors and dealers and see if there were any unusual distortions that might have been the result of these illegal diversions. This action did seem to have some effect at the time. Now, the problem has resurfaced again, this time as a result of the introduction of piped gas into Indian cities. In Mumbai and Delhi, consumers who are now receiving piped gas have been returning their unwanted cylinders to LPG distributors. But the LPG distributors in many cases, it would appear, have been continuing to take their allocated subsidized LPG which they have then been reselling to the higher-paying commercial sector. The differential between commercial and household LPG prices is

so large that their profits are sizeable. As the Government has been complaining, these profits are all coming out of their subsidy program. Two measures are under consideration: Rolling back the scheme for distribution of subsidized LPG in every area where piped gas connections are provided. And drawing up a scheme for focused and direct subsidization for LPG to consumers living in rural and backward areas which are not covered by piped gas networks. The measures would be politically popular. It is argued that subsidized LPG would be more likely to reach the targeted people, instead of unjustified supply to affluent sections of society in urban areas who are cashing in on the double subsidy benefit. However, the first step is not without its problems. LPG distributors in urban areas lose their business as the gas grids expand. Indian officials believe they have to look after the local LPG distributors in some way "so to not face possible resistance or even sabotage of the piped gas networks." And because of all these reasons the sale of commercial LPG comes down and now steps should be taken by government on this issue.

TABLE OF CONTENT: Introduction Companys history Companys profile Vision of IOCL Obligation & objectives of IOCL Major projects of IOCL Awards & accreditations Services to nation by IOCL Introduction to LPG Specifications of LPG Commercial LPG & its uses Research methodology Findings Limitations Conclusions & recommendations Copy of questionnaire Bibliography

Indian oil corporation Companys historyCompany Perspectives:

It strive be a major diversified, transnational, integrated energy company, with national leadership and a strong environmental conscience, playing a national role in oil security and public distribution.

Key Dates:
1948: Indias government passes the Industrial Policy Resolution, which states that its oil industry should be state-owned and operated. 1958: The government forms its own refinery company, Indian Refineries Ltd. 1959: Indian Oil Company is founded as a statutory body to supply oil products to Indian state enterprise. 1964: Indian Refineries and Indian Oil Company merge to form the Indian Oil Corporation. 1976: The Burma-Shell and the Caltex refineries are nationalized. 1981: Half of India's 12 refineries are operated by Indian Oil. 1998: The Companys seventh refinery is commissioned at Panipat. 2002: The Indian petroleum industry is deregulated.

Company History:
The Indian Oil Corporation Ltd. operates as the largest company in India in terms of turnover and is the only Indian company to rank in the Fortune "Global 500" listing. The oil concern is administratively controlled by India's Ministry of Petroleum and Natural Gas, a government entity that owns just over 90 percent of the firm. Since 1959, this refining, marketing, and international trading company served the Indian state with the important task of reducing India's dependence on foreign oil and thus conserving valuable foreign exchange. That changed in April 2002, however, when the

Indian government deregulated its petroleum industry and ended Indian Oil's monopoly on crude oil imports. The firm owns and operates seven of the 17 refineries in India, controlling nearly 40 percent of the country's refining capacity.

Origins:
Indian Oil owes its origins to the Indian government's conflicts with foreign-owned oil companies in the period immediately following India's independence in 1947. The leaders of the newly independent state found that much of the country's oil industry was effectively in the hands of a private monopoly led by a combination of Britishowned oil companies Burma and Shell and U.S. companies Standard-Vacuum and Caltex. An indigenous Indian industry barely existed. During the 1930s, a small number of Indian oil traders had managed to trade outside the international cartel. They imported motor spirit, diesel, and kerosene, mainly from the Soviet Union, at less than world market prices. Supplies were irregular, and they lacked marketing networks that could effectively compete with the multinationals. Burma-Shell entered into price wars against these independents, causing protests in the national press, which demanded government-set minimum and maximum prices for kerosene--a basic cooking and lighting requirement for India's people--and motor spirit. No action was taken, but some of the independents managed to survive until World War II, when they were taken over by the colonial government for wartime purposes. During the war, the supply of petroleum products in India was regulated by a committee in London. Within India, a committee under the chairmanship of the general manager of Burma-Shell and composed of oil company representatives pooled the supply and worked out a set price. Prices were regulated by the government, and the government coordinated the supply of oil in accordance with defense policy.

The Indian Oil Industry Evolves: Late 1940s-60s

Wartime rationing lasted until 1950, and a shortage of oil products continued until well after independence. The government's 1948 Industrial Policy Resolution declared the oil industry to be an area of the economy that should be reserved for state ownership and control, stipulating that all new units should be government-owned unless specifically authorized. India remained effectively tied to a colonial supply system, however. Oil could only be afforded if imported from a country in the sterling area rather than from countries where it had to be paid for in dollars. In 1949, India asked the oil companies of Britain and the United States to offer advice on a refinery project to make the country more self-sufficient in oil. The joint technical committee advised against the project and said it could only be run at a considerable loss. The oil companies were prepared to consider building two refineries, but only if these refineries were allowed to sell products at a price ten percent above world parity price. The government refused, but within two years an event in the Persian Gulf caused the companies to change their minds and build the refineries. The companies had lost their huge refinery at Abadan in Iran to Prime Minister Mussadegh's nationalization decree and were unable to supply India's petroleum needs from a sterling-area country. With the severe foreign exchange problems created, the foreign companies feared new Iranian competition within India. Even more important, the government began to discuss setting up a refinery by itself. Between 1954 and 1957, two refineries were built by Burma-Shell and StandardVacuum at Bombay, and another was built at Vizagapatam by Caltex. During the same period the companies found themselves in increasing conflict with the government. The government came into disagreement with Burma Oil over the Nahorkatiya oil field shortly after its discovery in 1953. It refused Burma the right to refine or market this oil and insisted on joint ownership in crude production. Burma then temporarily suspended all exploration activities in India. Shortly afterward, the government accused the companies of charging excessive prices for importing oil. The companies also refused to refine Soviet oil that the government had secured on very favorable terms. The government was impatient with

the companies' reluctance to expand refining capacity or train sufficient Indian personnel. In 1958, the government formed its own refinery company, Indian Refineries Ltd. With Soviet and Romanian assistance, the company was able to build its own refineries at Noonmati, Barauni, and Koyali. Foreign companies were told that they would not be allowed to build any new refineries unless they agreed to a majority shareholding by the Indian government. In 1959, the Indian Oil Company was founded as a statutory body. At first, its objective was to supply oil products to Indian state enterprise. Then it was made responsible for the sale of the products of state refineries. After a 1961 price war with the foreign companies, it emerged as the nation's major marketing body for the export and import of oil and gas. Growing Soviet imports led the foreign companies to respond with a price war in August 1961. At this time, Indian Oil had no retail outlets and could sell only to bulk consumers. The oil companies undercut Indian Oil's prices and left it with storage problems. Indian Oil then offered even lower prices. The foreign companies were the ultimate losers because the government was persuaded that a policy of allowing Indian Oil dominance in the market was correct. This policy allowed Indian Oil the market share of the output of all refineries that were partly or wholly owned by the government. Foreign oil companies would only be allowed such market share as equaled their share of refinery capacity.

Indian Oil Corporation: 1964 to the 1990s

In September 1964, Indian Refineries Ltd. and the Indian Oil Company were merged to form the Indian Oil Corporation. The government announced that all future refinery partnerships would be required to sell their products through Indian Oil. It was widely expected that Indian Oil and India's Oil and Natural Gas Commission (ONGC) would eventually be merged into a single state monopoly company. Both companies grew vastly in size and sales volume but, despite close links, they

remained separate. ONGC retained control of most of the country's exploration and production capacity. Indian Oil remained responsible for refining and marketing. During this same decade, India found that rapid industrialization meant a large fuel bill, which was a steady drain on foreign exchange. To meet the crisis, the government prohibited imported petroleum and petroleum product imports by private companies. In effect, Indian Oil was given a monopoly on oil imports. A policy of state control was reinforced by India's closer economic and political links with the Soviet Union and its isolation from the mainstream of western multinational capitalism. Although India identified its international political stance as non-aligned, the government became increasingly friendly with the Soviet Bloc, because the United States and China were seen as too closely linked to India's major rival, Pakistan. India and the USSR entered into a number of trade deals. One of the most important of these trade pacts allowed Indian Oil to import oil from the USSR and Romania at prices lower than those prevailing in world markets and to pay in local currency, rather than dollars or other convertible currencies. For a time, no more foreign refineries were allowed. By the mid-1960s, government policy was modified to allow expansions of foreign-owned refinery capacity. The Indian Oil Corporation worked out barter agreements with major oil companies in order to facilitate distribution of refinery products. In the 1970s, the Oil and Natural Gas Commission of India, with the help of Soviet and other foreign companies, made several important new finds off the west coast of India, but this increased domestic supply was unable to keep up with demand. When international prices rose steeply after the 1973 Arab oil boycott, India's foreign exchange problems mounted. Indian Oil's role as the country's monopoly buyer gave the company an increasingly important role in the economy. While the Soviet Union continued to be an important supplier, Indian Oil also bought Saudi, Iraqi, Kuwaiti, and United Arab Emirate oil. India became the largest single purchaser of crude on the Dubai spot market.

The government decided to nationalize the country's remaining refineries. The BurmaShell refinery at Bombay and the Caltex refinery at Vizagapatam were taken over in 1976. The Burma-Shell refinery became the main asset of a new state company; Bharat Petroleum Ltd. Caltex Oil Refining (India) Ltd. was amalgamated with another state company, Hindustan Petroleum Corporation Ltd., in March 1978. Hindustan had become fully Indian-owned on October 1, 1976, when Esso's 26 percent share was bought out. On October 14, 1981, Burma Oil's remaining interests in the Assam Oil Company were nationalized, and Indian Oil took over its refining and marketing activities. Half of India's 12 refineries belonged to Indian Oil. The other half belonged to other state-owned companies. By the end of the 1980s, India's oil consumption continued to grow at eight percent per year, and Indian Oil expanded its capacity to about 150 million barrels of crude per annum. In 1989, Indian Oil announced plans to build a new refinery at Pradip and modernize the Digboi refinery, India's oldest. However, the government's Public Investment Board refused to approve a 120,000 barrels-per-day refinery at Daitari in Orissa because it feared future over-capacity. By the early 1990s, Indian Oil refined, produced, and transported petroleum products throughout India. Indian Oil produced crude oil, base oil, formula products, lubricants, greases, and other petroleum products. It was organized into three divisions. The refineries and pipelines division had six refineries, located at Gwahati, Barauni, Gujarat, Haldia, Mathura, and Digboi. Together, the six represented 45 percent of the country's refining capacity. The division also laid and managed oil pipelines. The marketing division was responsible for storage and distribution and controlled about 60 percent of the total oil industry sales. The Assam Oil division controlled the marketing and distribution activities of the formerly British-owned company.

Indian Oil also established its own research center at Faridabad near New Delhi for testing lubricants and other petroleum products. It developed lubricants under the brand names Servo and Servo prime. The center also designed fuel-efficient equipment.

Changes in the Oil Industry: Late 1990s and Beyond

The oil industry in India changed dramatically throughout the 1990s and into the new millennium. Reform in the downstream hydrocarbon sector--the sector in which Indian Oil was the market leader-began as early in 1991 and continued throughout the decade. In 1997, the government announced that the Administered Pricing Mechanism (APM) would be dismantled by 2002. To prepare for the increased competition that deregulation would bring, Indian Oil added a seventh refinery to its holdings in 1998 when the Panipat facility was commissioned. The company also looked to strengthen its industry position by forming joint ventures. In 1993, the firm teamed up with Balmer Lawrie & Co. and NYCO SA of France to create Avi-Oil India Ltd., a manufacturer of oil products used by defense and civil aviation firms. One year later, Indo Mobil Ltd. was formed in a 50-50 joint venture with Exxon Mobil. The new company imported and blended Mobil brand lubricants for marketing in India, Nepal, and Bhutan. In addition, Indian Oil was involved in the formation of ten major ventures from 1996 through 2000. Indian Oil also entered the public arena as the government divested nearly 10 percent of the company. In 2000, Indian Oil and ONGC traded a 10 percent equity stake in each other in a strategic alliance that would better position the two after the APM dismantling, which was scheduled for 2002. According to a 1999 Hindu article, Indian Oil Corporation's strategy at this time was "to become a diversified, integrated global energy corporation." The article went on to claim that "while maintaining its leadership in oil refining, marketing and pipeline transportation, it aims for higher growth through integration and diversification. For this, it is harnessing new business

opportunities in petrochemicals, power, lube marketing, exploration and production ... and fuel management in this country and abroad." In early 2002, Indian Oil acquired IBP , a state-owned petroleum marketing company. The firm also purchased a 26 percent stake in financially troubled Haldia Petrochemicals Ltd. In April of that year, Indian Oil's monopoly over crude imports ended as deregulation of the petroleum industry went into effect. As a result, the company faced increased competition from large international firms as well as new domestic entrants to the market. During the first 45 days of deregulation, Indian Oil lost Rs7.25 billion, a signal that the India's largest oil refiner would indeed face challenges as a result of the changes. Nevertheless, Indian Oil management believed that the deregulation would bring lucrative opportunities to the company and would eventually allow it to become one of the top 100 companies on the Fortune 500--in 2001 the company was ranked 209. With demand for petroleum products in India projected to grow from 148 million metric tons in 2006 to 368 million metric tons by 2025, Indian Oil believed it was well positioned for future growth and prosperity.

Principal Subsidiaries:
Indo Mobil Ltd. (50%); Avi-Oil Ltd. (25%); Indian Oil tanking Ltd. (25%); Petro net India Ltd. (16%); Petro net VK Ltd. (26%); Petro net CTM Ltd. (26%); Petro net CIPL Ltd. (12.5%); Indian Oil PETRONAS Ltd. (50%); Indian Oil Panipat Power Consortium Ltd. (26%); Indian oil TCG Petrochem Ltd. (50%); Lubrizol India Pvt. Ltd. (50%).

Principal Competitors:
Bharat Petroleum Corporation Ltd.; Hindustan Petroleum Corporation Ltd.; Royal Dutch/Shell Group of Companies.

Companys profileCorporate Overview:

Indian Oil is Indias flagship national oil company with business interests straddling the

entire hydrocarbon value chain from refining, pipeline transportation and marketing of petroleum products to exploration & production of crude oil & gas, marketing of natural gas, and petrochemicals. It is the leading Indian corporate in the Fortune 'Global 500' listing, ranked at the 125th position in the year 2010.

With over 34,000-strong workforce, Indian Oil has been helping to meet Indias energy demands for over half a century. With a corporate vision to be the Energy of India, Indian Oil closed the year 2009-10 with a sales turnover of Rs. 271,074 crore and profits of Rs.10,221 crore. .

At Indian Oil, the operations are strategically structured along business verticals Refineries, Pipelines, Marketing, R&D Centre and Business Development E&P, Petrochemicals and Natural Gas. To achieve the next level of growth, Indian Oil is currently forging ahead on a well laid-out road map through vertical integration upstream into oil exploration & production (E&P) and downstream into petrochemicals and diversification into natural gas marketing and alternative energy, besides globalization of its downstream operations. Having set up subsidiaries in Sri Lanka, Mauritius and the United Arab Emirates (UAE), Indian Oil is simultaneously scouting for new business opportunities in the energy markets of Asia and Africa. With facilities at multiple locations and ever-expanding market opportunities, Indian Oil is poised to become an integrated energy company with steady forays into Oil Exploration & Production, Petrochemicals and Renewable Energy.

Reach and Network:

Indian Oil and its subsidiaries account for over 48% petroleum products market share, 34% national refining capacity and 71% downstream sector pipelines capacity in India. With a steady aim of maintaining its position as a market leader and providing best quality products and services, Indian Oil is currently investing Rs. 47,000 crore in a host of projects for augmentation of refining and pipelines capacities, expansion of marketing infrastructure and product quality up gradation. The Indian Oil Group of companies owns and operates 10 of India's 20 refineries with a combined refining capacity of 60.2 million metric tons per annum (MMTPA, .i.e. 1.2 million barrels per day). Indian Oils cross-country network of crude oil and product pipelines, spanning 10,652 km and the largest in the country, meets the vital energy needs of the consumers in an efficient, economical and environment-friendly manner. It has a portfolio of powerful and much-loved energy brands that includes Indane LPGas, SERVO lubricants, XtraPremium petrol, XtraMile diesel, etc. Validating the trust of 56.8 million households, Indane has earned the coveted status of Super brand in the year 2009.

Indian Oil has a keen customer focus and a formidable network of customer touch-points dotting the landscape across urban and rural India. It has 18,643 petrol and diesel stations, including 2,947 Kisan Seva Kendras (KSKs) in the rural markets. With a countrywide network of 35,600 sales points, backed for supplies by 167 bulk storage terminals and depots, 98 aviation fuel stations and 88 LPGas bottling plants, Indian Oil services every nook and corner of the country. Indane is present in almost 2764 markets through a network of 5095 distributors. About 7,593 bulk consumer pumps are also in operation for the convenience of large consumers, ensuring products and inventory at their doorstep. Indian Oils ISO-9002 certified Aviation Service commands an enviable 63% market share in aviation fuel business, successfully servicing the demands of domestic and international flag carriers, private airlines and the Indian Defense Services. The Corporation also enjoys a 65% share of the bulk consumer, industrial, agricultural and marine sectors.

Innovation is key:
Indian Oil has a sprawling world-class R&D Centre that is perhaps Asia's finest. It conducts pioneering work in lubricants formulation, refinery processes, pipeline transportation and alternative fuels, and is also the nodal agency of the Indian hydrocarbon sector for ushering in Hydrogen fuel economy in the country. The Centre holds 215 active patents, including 109 international patents.

Some of the in-house technologies and catalysts developed by Indian Oil are the INDMAX technology (for maximizing LPG as yield), OlivorusS bio-remediation technology

(extended to marine applications too), DHDS catalyst, a special Indicate catalyst for Bharat Stage-IV compliant Diesel, IndVi catalyst for improved distillate yield and FCC throughput, and adsorbent based deep desulphurization process for gasoline and diesel streams.

Redefining the horizon:

In Petrochemicals, Indian Oil is investing Rs. 20,000 crore (US$ 4 billion) by the year 2011-12. It offers a full slate of products including Linear Alkyl Benzene (LAB), Purified Terephthallic Acid (PTA), and an extensive range of polymers. Indian Oil holds a significant market share of LAB in India and exports to 19 countries. A state-ofthe-art 120,000 tons per annum Styrene Butadiene Rubber (SBR) unit is underway at Panipat. The SBR unit will further strengthen Indian Oils presence in the specialty petrochemicals sector. In Exploration & Production, Indian Oils

domestic portfolio includes ten oil & gas blocks and two Coal Bed Methane blocks. The overseas portfolio includes nine blocks spread across Libya, Iran, Gabon, Nigeria, Timor-Leste and Yemen. Exploration activities are at various stages of progress. In addition, as part of consortium, Indian Oil has been awarded Project -1 in the Carabobo heavy oil region of Venezuela. To boost E&P activities, Indian Oil has incorporated Ind-OIL Overseas Ltd. a special purpose vehicle for acquisition of overseas E&P assets in consortium with Oil India ltd.

Natural Gas marketing is another thrust area for Indian Oil with special focus on City

Gas Distribution (CGD) business. The Corporation has entered into franchise agreements with several CGD players to market Compressed Natural Gas through its retail outlets. Indian Oils joint venture with GAIL India Ltd. - Green Gas Ltd. has been authorized to take up city gas distribution at Agra. A long term gas supply agreement has been signed with NTPC.

Venturing into alternative fuels:

Indian Oil has forayed into alternative energy options such as wind, solar, bio-fuels and nuclear power. A 21 MW wind power project is operational in the Kutch district of Gujarat and the cumulative power generation from the 14 wind turbine generators has crossed 6 crore units (KW/Hr) since commissioning in January 2009. The solar power initiative is being spearheaded on a pilot basis in Orissa, Karnataka and the Northeast and an all-India phased roll out are underway. Solar products such as solar lanterns and torches are being sold through the Retail Outlets in rural and urban areas. With a view to investing in the nuclear energy sector in the country, Indian Oil has entered into an agreement with the Nuclear Power Corporation of India ltd.

Indian Oil has the largest captive plantation over 1,000 hectares for bio-fuel production in India which is underway in Chhattisgarh and Madhya Pradesh, generating rural employment of over 1.4 lakhs man-days. To straddle the complete bio-fuel value chain, Indian Oil has formed a joint venture with the Chhattisgarh Renewable Development Authority. Indian Oil CREDA Biofuels Ltd. has been formed to carry out farming, cultivating, manufacturing, production and sale of biomass, bio-fuels and allied products and services in Chhattisgarh. In Uttar Pradesh, Indian Oil is establishing a model value chain for the production of bio-diesel. A MoU for collaborating on commercial production of bio-diesel from algae has also been signed with PA LLC.

Indian Oil. The Energy of India:

As a leading public sector enterprise of India, Indian Oil has successfully combined its corporate social responsibility agenda with its business offerings, meeting the energy needs of millions of people everyday across the length and breadth of the country, traversing a diversity of cultures, difficult terrains and harsh climatic conditions. The Corporation takes pride in its continuous investments in innovative technologies and solutions for sustainable energy flow and economic growth and in developing techno-economically viable and environment-friendly products & services for the benefit of its consumers.

Vision with values:

Objectives & Obligations:

Objectives:

To serve the national interests in oil and related sectors in accordance and consistent with Government policies. To ensure maintenance of continuous and smooth supplies of petroleum products by way of crude oil refining, transportation and marketing activities and to provide appropriate assistance to consumers to conserve and use petroleum products efficiently. To enhance the country's self-sufficiency in crude oil refining and build expertise in lying of crude oil and petroleum product pipelines. To further enhance marketing infrastructure and reseller network for providing assured service to customers throughout the country. To create a strong research & development base in refinery processes, product formulations, pipeline transportation and alternative fuels with a view to minimizing/eliminating imports and to have next generation products. To optimize utilization of refining capacity and maximize distillate yield and gross refining margin. To maximize utilization of the existing facilities for improving efficiency and increasing productivity. To minimize fuel consumption and hydrocarbon loss in refineries and stock loss in marketing operations to effect energy conservation. To earn a reasonable rate of return on investment. To avail of all viable opportunities, both national and global, arising out of the Government of Indias policy of liberalization and reforms. To achieve higher growth through mergers, acquisitions, integration and diversification by harnessing new business opportunities in oil exploration & production, overseas. petrochemicals, natural gas and downstream opportunities

To inculcate strong core values among the employees and continuously update skill sets for full exploitation of the new business opportunities.

To develop operational synergies with subsidiaries and joint ventures and continuously engage across the hydrocarbon value chain for the benefit of society at large.

Financial Objectives:

To ensure adequate return on the capital employed and maintain a reasonable annual dividend on equity capital. To ensure maximum economy in expenditure. To manage and operate all facilities in an efficient manner so as to generate adequate internal resources to meet revenue cost and requirements for project investment, without budgetary support. To develop long-term corporate plans to provide for adequate growth of the Corporations business. To reduce the cost of production of petroleum products by means of systematic cost control measures and thereby sustain market leadership through cost competitiveness. To complete all planned projects within the scheduled time and approved cost.

Obligations:

Towards customers and dealers: - To provide prompt, courteous and efficient service and quality products at competitive prices.

Towards suppliers: - To ensure prompt dealings with integrity, impartiality and courtesy and help promote ancillary industries.

Towards employees: - To develop their capabilities and facilitate their advancement through appropriate training and career planning. To have fair dealings with recognized representatives of employees in pursuance of healthy industrial relations practices and sound personnel policies.

Towards

community:

To

develop

techno-economically

viable

and

environment-friendly products. To maintain the highest standards in respect of safety, environment protection and occupational health at all production units.

Towards Defense Services: - To maintain adequate supplies to Defense and other Para-military services during normal as well as emergency situations.

Indian Oil Major Projects:

Indian Oil continues to lay emphasis on infrastructure development. Towards this end, a number of schemes have been initiated with increasing emphasis on project execution in compressed schedules as per world benchmarking standards. Schemes for improvement and increased profitability through debottlenecking / modifications / introduction of value added products are being taken up in addition to grassroots facilities. Project systems have been streamlined in line with ISO standards. GRASSROOTS REFINERY PROJECT AT PARA DIP (ORISSA): Project Cost: Rs. 29,777.00 crore Expected Commissioning: March-November, 2012 Benefit: The project will help in partially meeting the deficit in distillates viz. LPG, Naphtha, MS, Jet/Kero, Diesel and other products, in the eastern part of the country. The complex will generate intermediate petrochemicals feedstock. Brief Description: A 15 MMTPA refinery is being constructed at Para dip in Orissa. The refinery will have, apart from a Crude and Vacuum Distillation Unit, a Hydro cracking Unit, a Delayed Coker Unit and other secondary processing facilities. This will be the most modern refinery in India with a nil-residue production, and the products would meet stringent specifications. Indian Oil has taken over 3344 acres of land for the project and necessary infrastructure development jobs prior to setting up of the main refinery are in progress. RESIDUE UPGRADATION AND MS/HSD QUALITY IMPROVEMENT PROJECT AT GUJARAT REFINERY: Project Cost: Rs. 6,898.00 crore Expected Commissioning: July to October, 2010

Benefit: The objectives of the project are multifold. It will ensure compliance to product quality requirement of MS/HSD to EURO-III/IV levels; enable processing of increased quantity of high sulphur crude, and improvement in distillate yield. Brief Description: The project envisages setting up of a number of units like VGOHDT, ATF-Merox, FCC-Merox, LPG-Merox, ISOM, Coker, DHDT, HGU (PDS) and SRU. MS QUALITY UPGRADATION PROJECT BARAUNI REFINERY (BIHAR): Project Cost: Rs. 1,492.00 crore Expected Commissioning: September 2010 Benefit: The implementation of this project will improve the quality of MS to conform to Euro-III equivalent norms. Brief Description: The major process units under this project are Isomerisation, Naphtha Hydrotreater, Reformate Splitter, FCC Gasoline Desulphurization Unit and Hydrogen Generation Unit. MS QUALITY UPGRADATION PROJECT AT GUWAHATI REFINERY (ASSAM): Project Cost: Rs. 372.00 crore Expected Commissioning: September 2010 Benefit: The implementation of this project will improve the quality of MS to conform to Euro-III equivalent norms. Brief Description: The major process units under this project are Isomerisation, Light Naphtha Splitter, Naphtha Hydrotreater and Indmax Gasoline Splitter. MS QUALITY UPGRADATION PROJECT AT DIGBOI REFINERY (ASSAM): Project Cost: Rs. 356.00 crore Expected Commissioning: September 2010 Benefit: The implementation of this project will improve the quality of MS to conform

to Euro-III equivalent norms. Brief Description: The major process units under this project are Isomerisation, Naphtha Splitter, Naphtha Hydrotreater and Reformate Splitter. DADRI-PANIPAT R-LNG SPUR PIPELINE: Project Cost: Rs. 298.00 crore Expected Commissioning *: Mid July 2010 Benefit: The 132 km long 30 inch diameter spur line carrying degasified LNG (R-LNG) will stretch from GAIL Indias Dadri terminal in UP to Panipat. Brief Description: The proposed R-LNG pipeline will provide for an economical means of feeding natural gas to Panipat refinery. * Subject to availability of RoW PANIPAT REFINERY EXPANSION FROM 12 MMTPA TO 15 MMTPA: Project Cost: Rs. 1,007.83 crore Expected Commissioning * : October 2010 Benefit: To meet the growing deficit of petroleum products in the high demand Northwest region of India. Brief Description: The project consists of capacity revamp of Crude and Vacuum Distillation Units (CDU / VDU), Once through Hydro cracking Unit (OHCU), Delayed Coking Unit, and installation of second stage reactors in Diesel Hydro treating Unit (DHDT). * Quality part completed in November, 2009 BRANCH PIPELINE FROM KSPL, VIRAMGAM TO KANDLA: Project Cost: Rs. 349.00 crore Expected Commissioning: 30 months after receipt of environment & forest clearance

Benefit: The pipeline would provide cost-effective link with the sea route ex-Kandla for coastal movement of surplus products of Koyali refinery and enhance flexibility in the system for ensuring sustained operation of the refinery. Brief Description: Project consists of laying of 16-inch diameter 217 km long product pipeline from Viramgam to Churwa and use of 22 diameter 14 km existing KBPL pipeline between Churwa to Kandla.

DIESEL HYDRO-TREATMENT (DHDT) PROJECT AT BONGAIGAON REFINERY (ASSAM): Project Cost: Rs. 1646.39 crore Expected Commissioning: September 2010 Benefit: The implementation of this project will improve the quality of HSD to conform to Euro-III equivalent norms. The project would also improve smoke point of Raw Kerosene and enhance production of SKO and ATF. Brief Description: The major process units under this project are DHDT Unit, Sulphur Recovery Block, Reformer, Power Plant, DM Plant and Hydrogen Generation Unit. MS QUALITY UPGRADATION PROJECT AT BONGAIGAON REFINERY (ASSAM): Project Cost: Rs. 293.60 crore Expected Commissioning: September 2010 Benefit: The implementation of this project will improve the quality of MS to conform to Euro-III equivalent norms. Brief Description: The major process unit under this project is Light Naphtha Isomerisation Unit. Existing Xylene Fractionation facilities would also be used. PARA DIP-NEW SAMBALPUR-RAIPUR-RANCHI PIPELINE: Project Cost: Rs. 1793.60 crore

Expected Commissioning: September 2012 Benefit: The proposed pipeline would ensure the evacuation of Para dip Refinery products and uninterrupted supply to major parts of Orissa, Chhattisgarh and Jharkhand. Brief Description: Project consists of laying of 1108 km long product pipeline with intermediate pumping stations at Jatni and New Sambalpur and delivery stations at Jatni, Jharsuguda, Ranchi, Raipur and Korba. The pipeline will be having a telescopic diameter of 18/14/12/10 OD. DE-BOTTLENECKING OF SALAYA-MATHURA CRUDE PIPLEINE: Project Cost: Rs. 1584.00 crore Expected Commissioning: 30 months after receipt of statutory clearances Benefit: With the proposed de-bottlenecking/augmentation of SMPL, the refineries would be in a position to process more crude oil. Brief Description: The proposal is for enhancing the capacity of Salaya-Viramgam section from 21 MMTPA to 25.0 MMTPA, [Viramgam-Koyali section from 8.5 MMTPA to 9.0 MMTPA, Viramgam-Chaksu section from 13.5 MMTPA to 16.5 MMTPA, ChaksuMathura section from 7.5 MMTPA to 9.2 MMTPA and Chaksu-Panipat section from 6 MMTPA to 7.3 MMTPA].

INTEGRATED CRUDE OIL HANDLING FACILITIES AT PARA DIP: Project Cost: Rs. 1492.33 crore Expected Commissioning: March 2012 Benefit: The proposed facilities would enhance crude handling capacity at Para dip port. Brief Description: The proposal is for installation of 2nd SPM for Para dip Refinery

and 3rd SPM & sub-sea crude oil transfer pipeline with associated facilities as a part of Integrated Offshore Crude Handling Facilities at Para dip.

Awards & Accreditations: Awards:

Awards & Accreditations Date

Reader's Digest Trusted Brand Gold Award to 01.07.2010 Indian Oil Barauni Refinery bags 'Best Kaizen Award' Indian Oil wins Dun & Bradstreet Awards Mathura Refinery bags International Safety Award Green tech Foundation honors Indian Oil Director Marketing felicitates Ranchi DO Golden Peacock Innovative Award to R&D Centre Green tech Safety Award to Bongaigaon Refinery 29.06.2010 17.06.2010 15.06.2010 14.06.2010 07.06.2010 29.05.2010 24.05.2010

Green tech Safety Award 2010 for Guwahati 24.05.2010 Refinery Green tech Safety Award to Haldia Refinery Gold Award Management to Mathura Refinery for 24.05.2010 Safety 24.05.2010

R&D Centre wins Technology Day Award 2010 Chairman conferred IIT Delhi Alumni Award Lifetime Achievement Award for Director (R&D) Director (Finance) wins Indias Best CFO Award

11.05.2010 24.04.2010 20.04.2010 14.04.2010

OCEANTEX 2010 Award to Director (Refineries) for 04.03.2010 Outstanding Achievement Indian Oil tops Business Standards 'BS 1000' ranking Indian Oil bags four OISD Awards Chairman receives SCOPE Award for Excellence 16.02.2010 20.10.2009 15.10.2009

Indian Oil receives the MoU Excellence Award 2007- 15.10.2009 08 Indian Oil receives Award for Global Impact by an 10.10.2009 Indian PSU Best Executive Honor on Director (Refineries) Most Innovative Company Honor to Indian Oil 30.09.2009 30.09.2009

Indian Oil wins Oil & Gas Supply Chain Excellence 21.09.2009 Award Indian Oil bags Safety Innovation Award 2009 21.09.2009

Indian Oils Director (HR) receives 'Pride of HR 19.09.2009 Profession Award Lanka Indian Oil bags Business Today Top 10 Award 21.08.2009 for 2007-08 Bongaigaon Refinery bestowed Paryavaran Puraskar 2006 Indira Gandhi 05.06.2009

Indian Oil wins Reader's Digest Award for most 01.06.2009 trusted petrol station brand Indian Oil sweeps five Petro Fed Oil & Gas Industry 16.04.2009 Awards (For the year 2008) Indian Oil wins Retailer of the Year - 'Rural Impact 17.02.2009

Award' Indian Oil Conferred BML Munjal Award 2009 for 14.02.2009 Excellence in Learning & Development Golden Peacock Award for Indian Oil-R&D for the 02.01.2009 fourth time Indian Oil wins six awards at PRSI annual meet 16.12.2008

Indian Oil wins SCOPE Meritorious Awards for 24.11.2008 Environmental Excellence & Sustainable Development and Good Corporate Governance Indian Oil presented the 'Indian Express Uptime 08.10.2008 Champion Award' Indian Oil conferred SAP ACE Award 2008 for B2B 24.09.2008 process Integration 'Oil & Gas Supply Chain Excellence' Award for Indian 22.09.2008 Oil Indian Oil bags 'Most Admired Retailer Rural' Award 22.09.2008 2007 Safety Innovation Award for Indian Oil for fourth 11.09.2008 consecutive year CIO-100 award for Indian Oil for the third time Indian Oil conferred Business Super brand 2008 09.09.2008 05.09.2008

Indian Oil's "Car in a Tank" sales promotion scheme 07.07.2008 wins Stevie Award Indian Oil wins the World Petroleum Congress 01.07.2008 Excellence Award 2008 for technical development Indian Oil's Xtra Power wins Loyalty Summit Award 25.01.2008

Indian Oil Finance Director S.V. Narasimhan bags 22.01.2008 Excellence in Finance Award Indian Oil wins Retailer of the Year - Rural Impact 15.01.2008 Award Indian Oil- R&D Centre Awarded the coveted WIPO 18.10.2007 GOLD MEDAL Indian Oil wins Oil Industry Safety Directorate 04.10.2007 Awards SERVO acquires prestigious MAN Global approvals 24.09.2007

Indian Oil bags the 'Most Admired Retailer of the 10.09.2007 Year' award Indian Oil honored with `CIO 100 Award 2007' 10.09.2007

Indian Oil bags SCOPE Gold Trophy for Best Practices 06.09.2007 in Human Resources Management 2005-06 SAP ACE Awards for Customer Excellence for Indian 24.08.2007 Oil Indian Oils R&D Centre gets special recognition for 24.08.2007 Bioremediation SERVO secures entry into NSF White Book - H1 23.08.2007 Category Indian Oil, the only petroleum company as `The 01.06.2007 Most Trusted Brand' in ET's Brand Equity's annual survey

Distinctions:
Distinctions Date

Indian Oil leads the pack of Indian companies in 12.07.2010 Fortunes Global 500 list Indian Oil in Top 50 Best Companies To Work For Reigning on the pinnacle of success Indian Oil among 'Best Companies To Work For' 21.06.2010 25.02.2010 25.01.2010

Indian Oil in top five in Business Indias Super 100 07.12.2009 ranking Indian Oil tops ET 500 ranking Indian Oil in Platts ranking 2009 Indian Oil No.1 in BW 500 Ranking 25.11.2009 19.11.2009 27.10.2009

Indian Oil leads India Inc. in Fortune's 'Global 500' 10.07.2009 listing for 2009 Indian Oil the only PSU among Indias 25 best 16.04.2009 employers Indian Oil frontrunner in Oil & Gas category in FE- 31.03.2009 500listing of India's top corporate Indian Oil tops Business Standards 'BS 1000' again 13.03.2009

Indian Oil among India's 'Top 10' in Business India's 19.12.2008 Super 100 Listing Lanka IOC ranked No. 1 Company in Sri Lanka Indian Oil tops 'ET 500' rankings once again 12.12.2008 21.10.2008

Indian Oil tops Business world's BW Real 500 20.10.2008 rankings again Indian Oil third most valuable (company) brand in 02.09.2008 India: ET-brand finance survey Indian Oil leads India Inc. in Fortune's 'Global 500' 11.07.2008 listing for 2008 'The Most Trusted Brand' in ET's Brand Equity annual 12.06.2008 survey-2008 Indian Oil the 'Top Oil & Gas Company' in Financial 23.05.2008 Express's 'FE 500' listing Indian Oil Tops Business Standard's 'BS 1000' listing 'Top Ten' in Business India's Super 100 Listing 15.02.2008 13.12.2007

Indian Oil among India's 'Top Valuable Companies in 30.11.2007 BT 500 Listing' Indian Oil ranked 2nd amongst Indias Top 50 Most 31.07.2007 Valuable Brands Indian Oil gets a top slot in ET500 listing Indian Oil tops 'BS 1000' companies in Sales again 22.03.2007 03.01.2007

50 Golden Years in the Service of the Nation:

Indias flagship national oil company and downstream petroleum major, Indian Oil Corporation Ltd. (Indian Oil) is celebrating its Golden Jubilee during 30th June - 1st September 2009. Established as an oil marketing entity on 30th June 1959, Indian Oil Company Ltd. was renamed Indian Oil Corporation Ltd. on 1st September 1964 following the merger of Indian Refineries Ltd. (established in August 1958) with it. The integrated refining & marketing entity has since grown into the countrys largest commercial enterprise and Indias No.1 Company in the prestigious Fortune Global 500 listing of the worlds largest corporate, currently at the 116th position. It is also the 18th largest petroleum company in the world.

Indian Oil Today:

From a fledgling company with a net worth of just Rs. 45.18 crore and sales of 1.38 million tons valued at Rs. 78 crore in the year 1965, Indian Oil has since grown over 3000 times with a sales turnover of Rs. 285,337 crore, the highestever for an Indian company, and a net profit of Rs. 2,950 crore for 2008-09.

Set up with the mandate of achieving self-sufficiency in refining and marketing operations for a nascent nation set on the path of economic growth and prosperity, Indian Oil today accounts for nearly half of Indias petroleum consumption, reaching precious petroleum products to millions of people every day through a countrywide network of around 35,000 sales points. They are backed for supplies by 167 bulk storage terminals and depots, 101 aviation fuel stations and 89 Indane LPG bottling plants. For the year 2008-09, Indian Oil sold 62.6 million tons of petroleum products, including 1.7 million tons of natural gas.

The Indian Oil Group of companies owns and operates 10 of Indias 20 refineries with a combined capacity of over 60 MMTPA, accounting for 34% of national refining capacity, after excluding EOU refineries. Projects under execution will take the capacity further to 80 MMTPA by the year 2011-12. Besides setting up state-of-the-art facilities to raise product quality to global standards, Indian Oil has undertaken chartering of ships for crude oil imports on its own and is expanding its basket of crudes and upgrading its refineries to handle a wider array of crudes, including highsulphur types. As a pioneer in lying of cross-country crude oil and product pipelines, the Corporation crossed 10,000 km in pipeline length and about 70 MMTPA in throughput capacity with the commissioning of the 330-km Para dip-Haldia crude oil pipeline recently. Plans are under execution to add about 4,000 km more by the year 2012. In-house capabilities have enabled the Corporation undertake all pipeline projects on its own and even offer turnkey expertise in techno-economic feasibility studies, design and detailed engineering, project execution, operations, maintenance and consultancy services. Set up in 1972, Indian Oil's R&D Centre has blossomed into a world-class institution and Asia's finest. Besides its pioneering work in lubricants formulation, refinery processes, pipeline transportation and alternative fuels such as ethanol-blended petrol and bio-diesel, the Centre is also the nodal agency of the Indian hydrocarbon sector for ushering in Hydrogen fuel into the country. It has over 214 active patents to its credit, including 113 international patents. Its current R&D focus is on the future business needs of Indian Oil in the areas of petrochemicals, including polymers, and alternative energy sources.

Strategic Origins:
Indian Oil was born of the vision of Pundit Jawaharlal Nehru, the first Prime Minister of India, to pursue a policy of self-sufficiency in the petroleum sector as a strategic requirement of a free nation.

As part of Panditjis thrust on oil exploration, refining and marketing operations, Indian Refineries Ltd. was established in August 1958 under 100% Government ownership to erect refineries and lays petroleum pipelines. To take care of marketing of petroleum products across the country, Indian Oil Company Ltd., another 100% Government-owned Company, was formed on 30th June 1959. It was entrusted with the task of reaching petroleum products to every nook and corner of the nation, overcoming severe constraints in terms of logistics, terrain and wide seasonal and regional fluctuations in demand. The marketing activities of Indian Oil Company began on 17th August 1960 with the receipt of the first parcel of 11,390 tons of imported diesel of Russian origin from MV Uzhgorod docked at Pir Pau Jetty in Mumbai. The Indian petroleum market at that time was ruled by goliaths like Burma Shell, Esso Eastern Inc., Caltex (India) Ltd., Indo-Burma Petroleum Co. Ltd and Assam Oil Company Ltd. Indian Oil Companys first and foremost challenge was to assert itself in the face of stiff competition from these well-entrenched transnational oil companies operating in India. In its first year of marketing (1960-61), the Companys volume sales was a meager 0.038 million tons (approximately 5% of industry sale) worth Rs. 0.8 crore.

The first activity that Indian Refineries Ltd. undertook was the construction of a refinery at Noonmati near Guwahati in Assam with Rumanian help. The refinery was inaugurated by Pandit Jawaharlal Nehru himself in 1962, and processed Upper Assam crude oil received through an Oil India Ltd. (OIL) pipeline from Nahorkatiya. For product evacuation, the 435-km Guwahati-Siliguri pipeline and the Siliguri terminal were built and commissioned in 1964. Soon after, it was decided to set up two more refineries, one each at Barauni and Koyali for processing newly-discovered crude oil at Assam and Gujarat respectively. The Barauni Refinery was built with Russian collaboration and went on stream in July 1964. The Koyali Refinery was also set up with technical assistance of Soviet Russia. Indian Oil acquired control of the refinery from Oil & Natural Gas Commission on 1st April 1965 and commissioned it in October the same year after formal inauguration by the then President of India, Dr. S

Radhakrishnan. Meanwhile, on 1st September 1964, Indian Refineries Ltd. was merged in Indian Oil Company to form a vertically integrated entity straddling both refining and marketing functions, and Indian Oil Company was renamed as Indian Oil Corporation Ltd. (Indian Oil). While announcing the historic merger, Prof. Humayun Kabir, the then Union Minister of Petroleum & Chemicals, hoped that Indian Oil would soon handle at least half of the trade in petroleum products. He was proved right within five years. By 1969, the Corporation was handling more than 50% of the total petroleum consumption of the nation and reached 64.2% market participation by the year 1974.

Battle Spurs:
As a veteran IOCian put it once, Indian Oil has been genetically coded to serve the Defense services. This was proved beyond doubt during the 1965 war, when Indian Oil People maintained the vital supply of petroleum products to the armed forces with grit and determination. In fact, the Srinagar depot was one of the first bulk storage facilities set up by the Corporation, in 1963. Indian Oils entry into the aviation fuelling business too began with the Defense Services in October 1964 and then to civil aviation a year later, in November 1965. Another opportunity to show its mettle in times of national emergencies came Indian Oils way during the 1971 war. In fact, in March 1972, during the war for liberation of Bangladesh, Indian Oil even arranged for crude oil supplies to the Chittagong Refinery. After the war, the Corporation for the first time extended reservation in award of retail outlet dealerships to war widows, disabled Defense personnel, freedom fighters, etc., and continues to honor this tradition even now. At the time of Operation Vijay at Kargil in 1999, despite shelling of its depots at Leah and Kargil, Indian Oil maintained petroleum supplies in the war zone and stood by the families of the later war heroes.

Having proved its mettle in the 1965 war, Indian Oil plunged into frenetic activity with new-found confidence setting up refineries, laying pipelines, building storage terminals and aviation fuel stations, entering new businesses like bitumen, marine bunkering, and appointing dealers and distributors across the country. The Haldia Refinery was set up in 1975, Mathura Refinery in 1982 and Panipat Refinery in 1998. The Corporation is setting up another grassroots refinery at Para dip in Orissa, for commissioning by the year 2012.

Marketing Innovations:
Having set up Its first petrol & diesel station (retail outlet) at Kochi in October 1962, Indian Oil currently operates the countrys largest network of retail outlets numbering over 18, 278 with focus on customer convenience. It was the first oil marketing company to introduce the concept of Multipurpose Distribution Centers (MPDCs) at its retail outlets located in rural areas way back in 1975. These MPDCs served as one-stop convenience shops, especially for farmers, and were the harbingers of the modern Kisan Seva Kendra (KSK) successfully introduced by Indian Oil in 2006. As on date, over 2,550 specially formatted Kisan Seva Kendra outlets set up across the country meet the diverse needs of the rural populace, offering a variety of products and services such as seeds, fertilizers, pesticides, farm equipment, medicines, spare parts for trucks and tractors, tractor engine oils and pump set oils, besides auto fuels and kerosene. About 600 such Kendra is being added to the Corporations marketing network every year. Indian Oil has been chosen as the Most Admired Retailer of the Year in the category of Rural Retailing at the India Retail Forum during 2008. As part of customer segmentation, exclusive XTRACARE outlets unveiled in select urban and semi-urban markets offer a range of value-added services to enhance customer delight and loyalty. Large format outlets on highways cater to the needs of motorists, with multiple facilities such as food courts, first aid, rest rooms and dormitories, spare parts shops, etc. SERVO Xpress has been launched recently as a one-stop shop for auto care services. To safeguard the interest of the valuable

customers, interventions like retail automation, vehicle tracking and marker systems have been introduced to ensure quality and quantity of petroleum products. Over the years, Indian Oil has also launched several branded products, customerfocused specialty products and customer rewards programmes. New generation branded transportation fuels with multifunctional additives are now available in major markets. Initiatives for cashless transactions for customer convenience through co-brand credit cards and fleet cards have met with great success.

Indian Oil also enjoys a dominant share of the bulk consumer business, including that of railways, state transport undertakings, and industrial, agricultural and marine sectors. Its ISO-9002 certified Aviation Service commands over 63% market share in aviation fuel business, meeting the fuel needs of domestic and international flag carriers, private airlines and the Indian Defense Services.

Kitchen Revolution:
Indane was the first branded product from Indian Oil to hit the market, at Kolkata in October 1965, with product sourced from its Barauni Refinery. Introduction of the clean and efficient LPG as cooking gas ushered in a revolution in millions of households. Encouraged by customer response and to ensure dedicated service, Indian Oil undertook massive augmentation of LPG storage and distribution facilities across the country in 1983. The process continues even today with the setting up of 89 Indane bottling plants, mostly in upcountry locations for quicker turnaround of cylinders. Several innovations were introduced in LPG marketing from time to time, like mounded storage and 19-kg cylinders for bulk customers, reticulated supplies for housing complexes and 5-kg cylinders for customers in inaccessible and hilly terrain. The Corporations in-house IndMax process is aimed at enhancing LPG yield from crude oil refining. Indane cooking gas today reaches the doorsteps of over 53 million households in nearly 2,700 markets through a network of about 5,000 Indane distributors. This includes customers in Andaman & Nicobar and Lakshadweep islands.

Auto gas (LPG) dispensing stations are being set up in metros and major cities to cater to the growing vehicle population using LPG as fuel.

New businesses:
In pursuit of its Corporate Vision and to achieve the next level of growth,, Indian Oil is currently forging ahead on a well laid-out road map through vertical integration up stream into oil exploration & production (E&P) and downstream into petrochemicals and diversification into natural gas marketing, besides globalization of its downstream operations. In petrochemicals, Indian Oil 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 tons set up at its Gujarat Refinery, the Corporation has already captured a significant market share of LAB in India, besides exports. A world-scale Paraxylene/Purified Terephthalic Acid plant (annual capacities: PX - 3,63,000 tons, PTA 5,53,000 tons) for polyester intermediates is already in operation at Panipat, while a Naphtha Cracker with a capacity of 800,000 tons of ethylene per annum, equipped with downstream polymer units is also coming up in Panipat. In E&P, Indian Oil has bagged eight oil & gas blocks and two Coal Bed Methane blocks under NELP (New Exploration Licensing 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. Indian Oil has incorporated Ind-OIL Overseas Ltd. a special purpose vehicle for acquisition of overseas E&P assets in Port Louis, Maturities, in consortium with oil.

In natural gas business, Indian Oil is targeting sale of 2 million tons 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 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.

Group synergy:
As part of inorganic growth through mergers and acquisitions, the refinery operations and marketing activities of Assam Oil Company were vested in Indian Oil in October 1981, and it became the Assam Oil Division of Indian Oil. The old units of the vintage Digboi Refinery (the first refinery in Asia) were revamped and by 1996 it was transformed into a modern refinery of Indian Oil. In the year 2001, Indian Oil acquired the Government stake and management control of stand-alone refiners Chennai Petroleum Corporation Ltd. (CPCL) and Bongaigaon Refinery & Petrochemicals Ltd. (BRPL), substantially enhancing group refining capacity. Subsequently, capacity expansion of CPCL and lying of the 526-km ChennaiTrichy-Madurai product pipeline helped further strengthen Indian Oils marketing in South India. Similarly, strategic turnaround initiatives taken by the Indian Oil helped BRPL come out of the red and post profits and merger with the parent company is due soon. Indian Oil acquired IBP in the year 2002 and seamlessly merged it with the parent company in 2007, leading to the formation of a larger and more formidable marketing network. Indian Oil Technologies Ltd. was launched as a fully-owned R&D subsidiary in the year 2003 to market the Corporations intellectual property.

Indian Oil has set up three overseas subsidiaries in Sri Lanka (2003), Mauritius (2004) and the United Arab Emirates (2006). Lanka IOC Ltd. operates about 150 petrol & diesel stations in the island nation, besides an oil terminal and a lube blending plant

at Trincomalee. Indian Oil (Mauritius) Ltd. operates a modern petroleum bulk storage terminal at Mer Rouge port, has an overall market share of nearly 20%, and commands a 32% market share in aviation fuelling business in Mauritius. IOC Middle East FZE oversees blending of SERVO lubricants and marketing of petroleum products and lubricants in the Middle East, Africa and CIS countries.

In addition, Indian Oil has eight active joint ventures in operation with reputed Indian and overseas partners in the areas of aviation refueling, city gas marketing, LPG and LNG imports and storage, specialty lubricants and additives, terminal ling services, etc.

Future plans:
In spite of deregulation of the oil sector and stiff competition from private players, Indian Oil has maintained its position as India's flagship national oil company. Indian Oil People have been in the forefront in adapting to the changing environment and enhancing the organizations capabilities in providing innovative and value-added offering to the customers. Against the backdrop of a rapidly changing business environment, Indian Oil is focusing on certain key issues for sustained growth in the deregulated market. These are: prudent finance and projects management, optimum capacity utilization of refineries and pipelines network, competitive business strategies, customer-focused innovations in product and service offerings, streamlining of business processes, and achieving greater synergy with group companies for enhanced efficiency and effectiveness of the market place. The rising customer aspirations for quality products and services, at par with international standards, have also thrown up myriad opportunities. Indian Oil is making the most of them mainly in expanding its existing customer base, customizing products for specific market segments, streamlining distribution infrastructure, etc. As part of the Marketing Transformation Programme to move closer to the customers,

Indian Oil has bifurcated its marketing function vertically into exclusive retail and direct consumer groups, transferred powers from the four regional offices to 16 marketing offices in State capitals, and set up exclusive groups for process & systems optimization, brand management and bio-fuels. The ambitious Project Manthan IT reengineering project has enabled the organization to assimilate IT and web-based business solutions for real time, integrated transactions and IT solutions for supply chain optimization.

India Inspired:
As a leading public sector enterprise of India, Indian Oil has successfully combined its corporate social responsibility agenda with its business offerings, meeting the energy needs of millions of people everyday across the length and breadth of the country, traversing a diversity of cultures, difficult terrains and harsh climatic conditions. The Corporation takes pride in its continuous investments in innovative technologies and solutions for sustainable energy flow and economic growth and in developing technoeconomically viable and environment-friendly products & services for the benefit of its customers.

Liquefied Petroleum Gas (LPG):

Indane is today one of the largest packed-LPG brands in the world. Indian Oil pioneered the launch of LPG in India in the 1970s and transformed the lives of millions of people with the introduction of the clean, efficient and safe cooking fuel. LPG also led to a substantial improvement in the health of women in rural areas by replacing smoky and unhealthy chullahs with Indane. It is today a fuel synonymous with safety, reliability and convenience. LPG is a blend of Butane and Propane readily liquefied under moderate pressure. LPG vapor is heavier than air; thus it normally settles down in low-lying places. Since LPG has only a faint scent, a mercaptan odorant is added to help in its detection. In the event of an LPG leak, the vaporization of liquid cools the atmosphere and condenses the water vapor contained in it to form a whitish fog, which is easy to observe. LPG in fairly large concentrations displaces oxygen leading to a nauseous or suffocating feeling. Suraksha LPG hose, flame retardant aprons and energy efficient Green Label stoves are recommended to enhance safety measures while using LPG as fuel.

To prevent diversion, the Indane brand is being backed by RFID technology, a new concept that helps track the movement of LPG cylinders. Initial trials are currently going on, after which it will be implemented on a countrywide basis.

LIQUEFIED PETROLEUM GAS SPECIFICATIONS (LPG):

LPG is a mixture of commercial butane and commercial propane having both saturated and unsaturated hydrocarbons. LPG marketed in India shall be governed by Indian Standard Code IS-4576 (Refer Table 1.0) and the test methods by IS-1448.

PHYSICAL PROPERTIES AND CHARACTERISTICS:

DENSITY: LPG at atmospheric pressure and temperature is a gas which is 1.5 to 2.0 times heavier than air. It is readily liquefied under moderate pressures. The density of the liquid is approximately half that of water and ranges from 0.525 to 0.580 @ 15 deg. C. Since LPG vapor is heavier than air, it would normally settle down at ground level/ low lying places, and accumulate in depressions. VAPOR PRESSURE: The pressure inside a LPG storage vessel/ cylinder will be equal to the vapor pressure corresponding to the temperature of LPG in the storage vessel. The vapor pressure is dependent on temperature as well as on the ratio of mixture of hydrocarbons. At liquid full condition any further expansion of the liquid, the cylinder pressure will rise by approx. 14 to 15 kg./sq.cm. For each degree centigrade. This clearly explains the hazardous situation that could arise due to overfilling of cylinders. FLAMMABILITY: LPG has an explosive range of 1.8% to 9.5% volume of gas in air. This is considerably narrower than other common gaseous fuels. This gives an indication of hazard of LPG vapor accumulated in low lying area in the eventuality of the leakage or spillage. The auto-ignition temperature of LPG is around 410-580 deg. C and hence it will not ignite on its own at normal temperature.

Entrapped air in the vapor is hazardous in an un purged vessel/ cylinder during pumping/filling-in operation. In view of this it is not advisable to use air pressure to unload LPG cargoes or tankers. COMBUSTION: The combustion reaction of LPG increases the volume of products in addition to the generation of heat. LPG requires up to 50 times its own volume of air for complete combustion. Thus it is essential that adequate ventilation is provided when LPG is burnt in enclosed spaces otherwise asphyxiation due to depletion of oxygen apart from the formation of carbon-dioxide can occur. ODOUR: LPG has only a very faint smell, and consequently, it is necessary to add some odorant, so that any escaping gas can easily be detected. Ethyl Mercaptan is normally used as stanching agent for this purpose. The amount to be added should be sufficient to allow detection in atmosphere 1/5 of lower limit of flammability or odor level 2 as per IS: 4576. COLOUR: LPG is colorless both in liquid and vapor phase. During leakage the vaporization of liquid cools the atmosphere and condenses the water vapor contained in them to form a whitish fog which may make it possible to see an escape of LPG. TOXICITY: LPG even though slightly toxic, is not poisonous in vapor phase, but can, however, suffocate when in large concentrations due to the fact that it displaces oxygen. In view of this the vapor posses mild anesthetic properties.

Commercial LPG & its uses:

LPG touches our lives in so many ways although we are unaware of it. From housing to health, from garments to glass, from livestock to hospitality, Indian Oil plays its role along the way, bringing your products that are superior, durable and simply the best. Crispy Biscuits & Confectionery Poultry Textile Industry Steel Pharmaceuticals Glass Hotel Industry Reticulated Piping Paint drying Dal mill Goldsmiths favorite

Crispy Biscuits & Confectionery: LPG is widely used to manufacture Crisp Biscuits, Soft Bread, Fluffy Pastries, Light Khari, Spongy Cakes and all types of cream and bakery products of super quality. Precision control of temperature and low sulphur content in LPG makes the product palatable and passes all Statutory tests for human consumption.

Poultry: Dont count your chickens before they are hatched, but with Indian Oil you can. With Indian Oil you get uniform and localized heating during the first five weeks both during summer and winter. The advantages of LPG in chicken brooding are :

Better heat control. Rapid drying of litter. The power failures in rural areas are very high resulting in heat failures, but with LPG as the source of fuel this risk is eliminated. Direct view of chicks; the heaters dont take any floor area. Very low LPG consumption of approx. 60 gms per hour or 50 paisa per bird in winter.

Textile Industry: Has it ever occurred to you that to produce the textiles youre wearing, LPG plays a significant role. The four main steps in the production of textile fabric:

Preparation of fabric Spinning Weaving Finishing which includes Singeing, Bleaching, Dyeing, Printing, Calendaring etc.

Each of these processes requires a heating source. Steam though mostly used is not hot enough for certain operations so LPG or electricity is usually needed in the Finishing process. LPG is better because the heat is more concentrated. The reflectors do not have to be polished and heaters do not burn out.

Steel: Now let us look at Indian Oil role in the steel industry and here too, once again Indian Oil steals the show. Heat treatment of metals normally refers to any process involving heating and cooling of the solid metal with the aim of modifying its physical properties but without the intention of changing its chemical composition.

Indian Oil easily meets these requirements so steel giants like Jindal have stuck to Indian Oil over the years for all their fuel needs.

Pharmaceuticals: Just what the doctor ordered Indian Oil from Bharat Petroleum. LPG is used to join glass components to form a single object. Indian Oil is preferred because a clean flame is obtained which can be adjusted to the desired size and shape useful in the production of ampoules.

Glass: In the summer heat when you reach for a thirst quencher, remember Indian Oil has gone into making the bottles that hold these great refreshers. As seen here re-heating of melted glassware in a special furnace is done before shaping operations. When making complicated shapes the glassware may have to be reheated several times to keep it malleable. LPG is generally used because the firing rate is not very high and combustion must be free of carbon.

Glass Annealing: Annealing glassware after manufacture. The cooling rate is very important because strains will be set up in the glass if it cools at undesired rate. Annealing is done in normally long ovens with the glass traveling through on a steel conveyor belt. Indian Oil is used for direct firing and for finer temperature control. Glass Melting: The glass is passed through Indian Oil flames for one or more of the following reasons: a. Round off sharp edges b. Smooth off gob marks or grinding marks c. Seal cracks d. Increase surface luster e. Heating jobs to remove cutting marks

Hotel Industry: The cup that cheers the meal that satisfies the mouth watering delicacies thanks to Indian Oil.Indian Oil is associated with top brand names in the hotel industry like Taj. Normally 90% of hotel use Indian Oil for cooking of food. No matter what you serve, Continental,

Chinese, Moghlai, Italian or Russian - a variety of menus to suit various tastes but the preferred choice and trusted cooking medium Indian Oil

Reticulated Piping: LPG at the turn of a tap so quick, so convenient. Cooking was never easier. Thanks to the reticulated piped gas available in several homes today, Indian Oil is available at the turn of a tap. It ensures increased safety and valuable space saving in the kitchen. It eliminates cylinder refill booking and handling. Saving of time and no need to block money for a 2nd cylinder.

Paint drying: LPG application in paint drying has got distinct advantage over conventional drying ovens. The hot air is generated which is free from particulate matter, leaves no ash and temperature control is precise. The final quality of paint in the baking oven is uniform. The result is excellent surface finish and gloss.

Dal mill: The conventional method of grain drying is process of sun - drying or passing of flue gases through the bed of grain. The modern method of grain drying is by LPG Firing system which improves the drying process and also gives no. 1 quality of the grain. As the grains are of edible quality, LPG does not leave any ash or carbon particles on the grains and does not produce any foul odor on the finished surface thus fetching better market price.

Goldsmiths favorite: LPG produces very powerful flame and can be as sharp as needle. This type of flame is required for goldsmith to make very fine gold / silver ornaments. The working atmosphere remains free from obnoxious gases and thus is conducive to the workmen.

Food: LPG is widely used in the Food Industry like Hotels, Restaurants, Bakeries, Canteens, and Resorts etc. Low sulphur content and controllable temperature makes LPG the most preferred fuel in the food industry.

Metal Industry The metal industry is indeed one of the most important consumers of energy. LPG being a far superior fuel as compared to the other heavy fuels helps improve the cost of operation and strikes an economic balance between fuel price and quality of the end product. The application is basically for cutting, heating and melting. Both ferrous and non-ferrous metals are frequently cast into shapes by melting and injection or pouringInto suitable patterns and moulds. LPG in the instant case is an ideal fuel for meeting the requirement of temperature regulation and desired quality.

Farming Industry

LPG is the ideal fuel for production of food by Agriculture and Animal Husbandry. Drying of crops and Other Farm products requires clean and sulphur free fuel for drying activity to avoid any transfer of bad taste or smell to the dried crops. LPG in the farming industry can be used for the following : Drying of Crops Cereal Drying Curing of Tobacco and Rubber Flame Cultivation Horticulture Soil Conditioning Livestock Farming

Steam Raising Coal , Furnace Oil & Natural Gas are the most economical fuel for this application. Though economical, it is undesirable for reasons of environmental pollution. Natural gas being a gaseous fuel requires pipelines to cater to such requirements. Hence LPG becomes the most preferred fuel.

Aerosol Industry An aerosol formulation is a blend of an active ingredient with propellant ,emulsifiers, perfumes, etc. LPG, being environment friendly, has replaced the Ozone depleting CFC gases which were earlier used by the aerosol Industry.

Automotive Industry Automotive LPG is a clean fuel with high octane aptly suited for vehicles both in terms of emissions and cost of the fuel. The main advantage of using automotive LPG : it is free of lead, very low in sulphur,other metals, aromatics and other contaminants. Unlike Natural Gas, LPG is not a Green House Gas.

Cogeneration using LPG LPG is an ideal fuel for electricity & heat / electricity and comfort cooling. This finds varied Applications in industries requiring power and steam, power and hot air. LPG is ideally suited for Shopping malls, offices requiring Power and air conditioning.

RESEARCH METHODOLOGY
Research is an art of scientific and systematic search of pertinent information on a specific topic. In fact research is an art of scientific investigation. The advance learners Dictionary of current English lays down the meaning of research as a careful investigation or inquiry especially through search for new facts in any branch of knowledge. Redman and moray define research as Systematized effort to gain new knowledge. Some people consider research as a movement, a movement from the known to the unknown. It is actually a voyage of discovery. Redman and moray define research as a systematized effort to gain new knowledge. According to Clifford woody research comprise defining and redefining problems, formulating hypothesis or suggested solution; collecting, organizing and evaluating data; make deduction and reaching conclusions; and at last carefully testing the conclusions to determine whether they fit the formulating hypothesis Research Problem: There are two type of research problem those, which relate to state of nature and those, which relate to relationship between variables. Essentially two steps are involved in formulating the research problem understanding the problem thoroughly and rephrasing the same into meaningful terms from an analytical point of view. Research Type: Research type applied over here is analytical research because the purpose is to find how to enhance sales of commercial LPG.It includes surveys and fact-finding inquiries of different kinds. Sample Design: The sample design used over here is deliberate sampling. This sample method involves purposive or deliberate selection of particular units of universe or constituting a sample, which represents the universe.

Methods of data collection: Primary data. Secondary data.

Primary data was collected by two methods: 1) Questionnaire 2) Personal Interviews

The questionnaire: A single set of questionnaire was prepared was for all the non-officers. The questions included both open-ended and close-ended questions. Open ended questions or unstructured questions are those to which respondent answer in their own words. Like: 1) What is your name? 2) What is your occupation? 3) What is your phone number? Structured questions or close ended questions are those that specify the set of response alternatives and the response format. A structure question could be multiple choices, dichotomous or a scale. Selection of the sample: Since it is not possible to cover all customers using commercial LPG, a sample of them was taken from Paharganj area of New Delhi for detailed study. The sample was selected on a random basis and it was tried to make it as a representative of the population as possible. The survey was conducted on 100 customers.

Collection of secondary data: Materials provided by the company were an important source of secondary information. The materials are also being collected from the official website of Indian oil corporation, and many other websites and newspaper articles. Area from where the population is selected: Paharganj area of New Delhi. Sample frame: Sample frame are the eateries, hotels and restaurants in the selected are of Paharganj. Sample size: The sample size is 100.

FINDINGS:
4) Cost is the major constraint in using 19.0 kg cylinders. 5) Consumers also need some discount schemes and others plans. 6) Very little or less discounts are being provided to the customers. 7) Substitute of 19.0 kg cylinders are also demanded by customers like 10.0 kg for small eateries and 30.0 kg for big restaurants and hotels. 8) No credits are being provided to the customers. 9) Customers are fully aware with the fact of illegal usage of domestic cylinders for commercial purpose and their consequences. 10) Delivery of cylinders and services of the gas agency is satisfactory.

LIMITATIONS:
1) Time and cost are the major constraints of the research. 2) Due to large numbers of universe, I could not undertake census survey and thus has to rely on sample survey only. 3) A sample of 100 eateries, hotels and restaurants has been taken for study from the area of Pahargang in New Delhi. 4) Most of the respondents did not give their feedback which also hinders the progress of the survey.

CONCLUSION AND RECOMMENDATIONS:

1) Cost is the major factor, because of which people are using less of 19.0 kg cylinders. So cost should be reduced. 2) Various discounts and other schemes should also be launched from time to time for the benefit of the customers and enhance the sales of commercial cylinders. 3) Commercial cylinder should be launched in different weight category for small users. 4) Black marketing of domestic cylinders should be stopped because these cylinders are used commercial purpose. 5) The laws should be properly implemented to reduce the use of illegal usage of domestic cylinders for commercial purpose.

On the distributors end following suggestions are recommended1) Frequent raids should be made at least twice in a month so that illegal use of domestic cylinders could be stopped. 2) Fines, penalties, imprisonment and other actions should be taken against people who are willfully using domestic cylinders for commercial purpose. 3) Some authority or powers should be given to distributors so that they could keep a track on defaulters.

4) Some distributors engage themselves in black marketing the domestic cylinders.

Note: I am a student of MBA 1st year. A topic is assigned to me for training purpose How to enhance the sales of commercial LPG. I request you to fill up this questionnaire. Name of the respondent:Name of the organization/business:Address:Phone no.:E-mail id:1. Name of the gas service .. 2. Do you use: 5.0 kg 19.0 k g . . . Why dont you use 19.0 kg cylinders? .. 3. Which cylinder is more convenient:5.0 kg. 19.0 kg.. Why? 14.2kg Other 14.2 kg other...

 .. 4. Are the cylinders easily availableYes 5. Do the gas service entertain you properlyYes No No

6. Is the information is fully provided to you regarding 19.0 kg cylindersYes 7. Number of cylinders used per month0-5 .. 10- 15.. 5-10 More than 15 .. No

8. Within what duration cylinder is available after booking and at which time customer requires the cylinder 9. Delivery of which cylinder is more convenient5.0 kg 19.0 k g . . . 14.2 kg other...

10. Whether any discount is offered to you on 19 kg refill if yes How much?

 .. 11. Any credit is being offered by the Distributor? How much discount is expected as a customer? .. 12. If using 14.2 kg whether the customer is aware that it is illegal to use domestic cylinders for commercial use & their consequences? 13. If using 19 kg which company is providing the cylinder & the discounts and services offered by them? 14. What are reasons for not using 19.0 kg cylinders? .. 15. What are the different improvements which should be made in 19.0 kg cylinder?

 16. Any substitute of 19.0 kg cylinder which you want to have 17. Any suggestions you want give for improving the sales of 19.0 kg cylinders

Date:

signature:

1. Do you use: 5.0 kg 19.0 k g . . . 14.2 kg other...

Usage of cylinders

10

20

70 19.0 KG 14.2 KG BOTH 19.0 & 14.2 KG

RESULT: In the above diagram 70% people are using 19.0 kg cylinder 20% are using 14.2 kg cylinders And 10% are using both 19.0 and 14.2 kg cylinders.

2. Which cylinder is more convenient:5.0 kg. 19.0 kg.. 14.2kg Other

Convinenec e of cylinders
10

YES NO

90

RESULT 90% of the customers say that 19.0 kg cylinders are more convenient 10% says that 14.2 kg cylinders are more convenient.

3. Are the cylinders easily availableYes No

Easy availabilty of cylinders

1

YES NO

99

RESULT 99% of the customers say that 19.0 kg cylinders are easily available Only 1% of the customer is against it.

4. Do the gas service entertain you properlyYes No

Services of gas ageny

1

YES NO

99

RESULT 99% of the customers say that gas agency entertain them properly. Only 1% of the customer is against it.

5. Is the information is fully provided to you regarding 19.0 kg cylindersYes No

Information provided by gas agency

yes

100

RESULT Customers are fully satisfied with the information provided by gas agencies.

6. Number of cylinders used per month0-5 .. 10- 15.. 5-10 More than 15 ..

Number of cylinders used per month

17 25

0-5 15 5-10 10-15 mora than 15

43

RESULT 25% of customers use 0-5 cylinders per month. 43% of customers use 5-10 cylinders per month. 15% of customers use 10-15 cylinders per month. 17% of customers use more than 15 cylinders per month.

7. Delivery of which cylinder is more convenient5.0 kg 19.0 k g . . . 14.2 kg other...

Delivery of cylinders

20

19.0 kg 14.2 kg

80

RESULT 80% of the customers are satisfied with the delivery of 19.0 kg cylinders. 20% of the customers are satisfied with the delivery of 14.2 kg cylinders.

8. Whether any discount is offered to you on 19 kg refill if yes How much?

Discount offered
8%

yes no

92%

RESULT 92% of the customers are says that discounts are not offered on the refill of 19.0 kg cylinders. 8% of the customers are says that discounts are being offered on the refill of 19.0 kg cylinders.

9. Any credit is being offered by the Distributor? How much discount is expected as a customer?

Credits provided
5%

NO YES

95%

RESULT 95% of the customers say that credits are not provided to them on the refill of 19.0 kg cylinders. 5% of the customers say that credits are provided to them on the refill of 19.0 kg cylinders.

10. If using 14.2 kg whether the customer is aware that it is illegal to use domestic cylinders for commercial use & their consequences?

Awareness of customers
2%

YES NO

98%

RESULT 98% of the customers are aware of the consequences of using domestic cylinders for commercial purpose. 2% of the customers are not aware of the consequences of using domestic cylinders for commercial purpose.

Bibliography:
www.google.com www.iocl.com www.thehindu.com www.potenandpartner.com www.timesofindia.com Research Methodology by C. R. Kothari.