Company Analysis Report

ON

INDIAN OIL CORPORATION LIMITD

Submitted in the partial fulfillment of the

Requirement for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

To

SREENIVASA INSTITUTE OF TECHNOLOGY AND MANAGEMENT STUDIES (Autonomous)

Affiliated to JawaharLal Nehuru Technological University, Anantapur

By

Ms. N. PAVANI

Reg.no:19751E0044

Under guidance of

Dr. H. VISWA KIRAN, MBA, Ph.D.

Assistant professor

DEPARTMENT OF BUSINESS ADMINISTRATION

SREENIVASA INSTITUTE OF TECHNOLOGY AND

MANAGEMENT STUDIES

Dr.Visweswaraiah road, Banglore -Tirupathi bye pass road,

Murukambattu (Post), Chitoor-517127

2020-2021

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 DECLARATION
I hereby declare that the report entitled “Company analysis in INDIAN OIL CORPORATION Ltd.” is
done by me in partial fulfillment of the requirement for the award of MASTER OF BUSINESS
ADMINISTRATION under Sreenivasa Institute of Technology and Management
Studies, Chittoor ( AUTONOMOUS) affiliated to Jawaharlal Nehru Technological University,
Anantapur. This is original work done by me and that I have not submitted these results in any
form previously for the award of any degree, diploma, others.

Place: (N. PAVANI)

Date:

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 Acknowledgement
My deep sense of gratitude and thanks goes to Dr.P Ramesh kumar, Ph.D. principal SITAMS,
chittoor for providing necessary facilities to complete this report.

Endeavor to express my heartfelt credit to the guide Dr.H. viswa kiran, M.B.A, Ph.D.
For his insightful suggestion and valuable guidance to carry out the company analysis
effectively and efficiently
We thank Dr. J. V. BALASUBRAMANIYAM, the Head of the department, Department of MBA for
providing the support in conducting the company analysis

I finally extend my sincere thanks to all Faculty members and friends who gave me their
valuable suggestions and who have helped me directly and indirectly in completing my
report.

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 SREENIVASA INSTITUTE OF TECHNOLOGY
AND MANAGEMENT STUDIES ( AUTONOMOUS)
VISWESWARAIAH ROAD, (BANGLORE- TIRUPATHI BYE PASS ROAD)

MURUKAMBATTU, CHITTOOR-517127(A.P)

Website www.sitams.com.

CERTIFICATE
This is to certify that this is a bonafied record of report entitled “A STUDY ON
COMPANY ANALYSIS IN INDIAN OIL CORPORATION LIMITED.”, submitted
by Ms. N. PAVANI ( Reg.no19751E0044) in partial fulfillment of the requirement for the
award of MASTER OF BUSINESS ADMINISTRATION under Sreenivasa Institute of
Technology and Management Studies, Chittoor ( AUTONOMOUS) affiliated to
Jawaharlal Nehru Technological University, Anantapur during the period of January-
February 2021.

GUIDE HOD /MBA

Dr. H. Viswa Kiran Dr.J.V. BALASUBRAMANIAN

Assistant professor

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 CONTENT PAGE NO
INTRODUCTION 6-7
COMPANY PROFILE 8-9
HISTORY 10-13
MISSION AND VISSION 13-14
PRODUCTS AND SERVICES 14-15
ORGANIZATION STRUCTURE 15-16
AWARD&ACHEIVEMENS 16-17
RESEARCH METHODOLOGY 18
DATA ANALYSIS 19-22
FINDINGS & CONCLUSION 23

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 CHAPTER-I

INTRODUCTION
Petroleum is one of the versatile energy sources available in the world. The petroleum
Industry in India is considered to be the wheel of the economy as it is inevitably linked
with all the other industrial sectors. Petroleum is important for industry, infrastructure and
the economy as a whole.

The Indian Petroleum industry is one of the largest sources of energy for the Indian
Industry and public in general .The production, availability and prices of petro-products
tend to impact many aspects of the economy.

One of the major Maharatna enterprise in PSU’s is Indian Oil Corporation

Limited(IOCL) which is the largest commercial enterprise of India and the top ranked
Indian company in Fortune ‘Global 500’ list. The corporation is ranked 137th in
the Fortune‘Global 500’ listings for 2018. Indian Oil, with its 33,125 multitalented and
dedicated Indian Oil people, strong team is taking the lead to meet India’s energy demands
efficiently and effectively, since last five decades, and an enterprise that fulfils India’s
energy demand for inclusive development.

Indian Oil’s business interests extend across the entire hydrocarbon value chain – from
exploration & production, refining, pipeline transportation to marketing of petroleum
and petrochemical products besides foraying into alternate energy. Indian Oil is
headquartered in New Delhi and works relentlessly with its subsidiaries. Indian Oil is
pursuing diverse business interests with its 15 joint ventures with reputed business partners
from India and fulfilling global aspirations through its subsidiaries in Sri Lanka, Mauritius,
the UAE, Sweden, the USA, Singapore and the Netherlands. The corporation has also
opened new overseas offices in Yangon, Myanmar and Dhaka, Bangladesh

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towards expanding marketing of finished petroleum products, Petrochemicals, Lubricants
etc. in the neighboring countries as well as development of infrastructure

Indian Oil Corporation Limited (IOC) is a national oil company with an 82 per central
government holding. Its operations range from refining of crude oil and LPG distribution
to marketing of petro-products. It is also the biggest company in the oil and gas sector in
terms of revenues. IOC has 41 per cent of the national refining capacity. It has nine
refineries including two subsidiary refineries - Bongaigaon Refineries and Petrochemicals
Limited and Chennai Petroleum Corporation Limited. The IOC Group refineries achieved
a record crude oil throughput of 43.39 million metric tones during 2002-03.

The company's total pipeline network stands at 7,170 km accounting for 76 percent market
share with a combined capacity of 43.45 million metric tones per annum. It has an
extensive marketing infrastructure with over 22,000 selling points, around 8,100 retail
fuel pumps, 3,900 LPG distributors, 3,500 kerosene distributors, and 95 aviation fuel
stations.

Indian Oil's activities are backed by its "Research and Development Centre", the first such
center established in India. Indian Oil also has four overseas offices in Kuwait,
Kualalumpur, Dubai and Mauritius. As the premier National Oil Company, the company's
endeavor is to serve the national economy and the people of India. IOC has a "vision
beyond tomorrow" - of becoming an integrated and diversified "Global Energy
Corporation".

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COMPANY PROFILE:

Type Public Sector Undertaking

Traded as BSE: 530965

NSE: IOC

NSE NIFTY 50 Constituent

ISIN INE242A01010

Industry Oil and Gas

Predecessor Indian Refineries Ltd. (1958)

Indian Oil Company (1959)

Founded 30 June 1959; 61 years ago

Headquarters New Delhi (headquarters)

Mumbai (registered office)

Area served India, Sri Lanka, Middle East, Mauritius

Key people Shrikant Madhav Vaidya (Chairman)[1]

Products Petroleum

Natural gas

Petrochemicals

Revenue ₹487,152 crore (US$68 billion) (2020)[2]

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 Operating income ₹−1,964 crore (US$−280 million) (2020)[2]

Net income ₹−3,242 crore (US$−450 million) (2020)[2]

Total assets ₹329,736 crore (US$46 billion) (2020)[2]

Total equity ₹86,216 crore (US$12 billion) (2020)[2]

Owner Government of India (52.1%)[3]

Number of employees 33,498 (2020)[2]

Subsidiaries Indian Oil (Mauritius) Ltd.

CPCL

Lanka IOC PLC

IOC Middle East FZE

Indian (LPG)

Website www.iocl.com

HISTORY:
Indian Oil Corporation (IOC), India’s flagship national oil company and downstream
petroleum major, was incorporated on June 30, 1959 as Indian Oil Company. The
company was renamed as Indian Oil Corporation on September 1, 1964 following the
merger of Indian Refineries (established 1958) with it.
The Indian Oil Group of companies owns and operates ten of India's 20 refineries with a
combined refining capacity of 60.2 million metric tonnes per annum (MMTPA, .i.e. 1.2
million barrels per day). These include two refineries of subsidiary Chennai Petroleum

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Corporation. The corporation's cross–country network of crude oil and product pipelines,
spanning over 10,000 km and the largest in the country, meets the vital energy needs of the
consumers in an efficient, economical and environment–friendly manner.
IOC reaches precious petroleum products to millions of people everyday through a
countrywide network of about 35,000 sales points. They are backed for supplies by 167
bulk storage terminals and depots, 101 aviation fuel stations and 89 Indian (LPG) bottling
plants. About 7,335 bulk consumer pumps are also in operation for the convenience of
large consumers, ensuring products and inventory at their doorstep.
The company operates the largest and the widest network of petrol and diesel stations in
the country, numbering over 18,278. It reaches Indian cooking gas to the doorsteps of over
Million 53 households in nearly 2,700 markets through a network of about 5,000 Indian
distributors.
Indian Oil's ISO–9002 certified Aviation Service commands over 63% market share in the
aviation fuel business, meeting the fuel needs of domestic and international flag carriers,
private airlines and the Indian Defence Services. The corporation also enjoys a dominant
share of the bulk consumer business, including that of railways, state transport
undertakings, and industrial, agricultural and marine sectors.
IOC's world–class R&D Centre is perhaps Asia's finest. Besides pioneering work in
lubricants formulation, refinery processes, pipeline transportation and alternative fuels, the
centre is also the nodal agency of the Indian hydrocarbon sector for ushering in hydrogen
fuel economy in the country. It has set up a commercial Hydrogen–CNG station at an
Indian Oil retail outlet in New Delhi this year. The centre holds 214 active patents,
including 113 international patents.
IOC has joined the league of global technology providers with the selection of its in–house
developed INDMAX technology (for maximizing LPG yield) for the 4 MMTPA Fluidized
Catalytic Cracking (FCC) unit at the Corporation's upcoming 15 MMTPA grass roots
refinery at Paradip in Orissa, as well as for the FCC unit coming up at BRPL. A wholly–
owned subsidiary, Indian Oil Technologies, is engaged in commercializing the innovations
and technologies developed by Indian Oil's R&D Centre.

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Exclusive XTRACARE petrol & diesel stations, unveiled in select urban and semi–urban
markets, offer a range of value–added services to enhance customer delight and loyalty.
Large format Swagat brand outlets cater to highway motorists, with multiple facilities such
as food courts, first aid, rest rooms and dormitories, spare parts shops, etc. Specially
formatted Kisan Seva Kendra outlets 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. SERVOX press has been launched recently as a one–stop shop for
auto care services.
In E&P, Indian Oil has non–operator participating interest in seven oil and gas blocks
awarded under various NELP (New Exploration Licensing Policy) rounds and two Coal
Bed Methane (CBM) blocks in India, in consortium with other companies. In addition,
Indian Oil has two onshore type ‘S’ NELP blocks, with 100% participating interest (PI)
and sole operatorship. It also has participating interest in an onshore block in Assam and
Arunachal Pradesh through a farm–in.
IOC is currently forging ahead on a well laid–out road map through vertical integration–
upstream into oil exploration and production (E&P) and downstream into petrochemicals–
and diversification into natural gas marketing, bio fuels, wind power projects, besides
globalization of its downstream operations.
Overseas ventures of the corporation includes two blocks (86 and 102/4) in Sirte Basin and
Areas 95/96 in Ghadames basin of Libya, Farsi Exploration Block in Iran, onshore farm–in
arrangements in one block in Gabon, one on land block in Nigeria, one deepwater offshore
block in Timor–Leste and two onshore blocks in Yemen. In all, Indian Oil has 12 domestic
exploration blocks, including two blocks where gas discoveries have been made and nine
overseas exploration blocks, and the Farsi block in Iran where commerciality of gas
discovery has been established. The company has incorporated Indian–OIL Overseas –– a
special purpose vehicle for acquisition of overseas E&P assets –– in Port Louis, Mauritius,
in consortium with Oil India (OIL).
In natural gas business, IOC sold 1.849 million tonnes of the product in 2008–09. A
technology innovation has been initiated to reach LNG (Liquefied Natural Gas) directly to

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the doorstep of bulk consumers in cryogenic containers for industrial as well as captive
power applications.
The company has tied up with several players such as Adani Energy, Reliance Gas
Corporation, OIL and ONGC, etc., to set up joint ventures in various cities of India. The
corporation has also entered into franchise agreements with CGD players such as
Indraprastha Gas Ltd, Mahanagar Gas Limited, Adani Energy Limited, GEECL, SITI
Energy and GSPC Gas Limited to market CNG through its retail outlets.
To straddle the complete bio–fuel value chain, the company has formed a joint venture
with the Chhattisgarh Renewable Development Authority (CREDA) with an equity
holding of 74% and 26% respectively. Indian Oil CREDA Biofuels Limited has been
formed for carrying out farming, cultivating, manufacturing, production and sale of
biomass, bio–fuels and allied products and services.
A pilot project of jatropha plantation on 600 hectares of revenue wasteland is underway in
Jhabua district in Madhya Pradesh to ascertain the feasibility of revenue land–based
commercial biodiesel units and to develop benchmarks for plantation costs and output.
IOC has also signed an MoU with Ruchi Soya Industries Limited to take up contract
farming on one lakh hectare of private and panchayat wasteland in the state of Uttar
Pradesh.
It has forayed into wind energy business with the commissioning of a Rs 130 crore, 21
MW wind power project in the Kutch district of Gujarat. The cumulative power generation
from the 14 wind turbine generators has crossed 159 lakh KW since commissioning in
January 2009. The company has also commissioned two pilot solar lantern charging
stations at its Kisan Seva Kendra at Sathla near Meerut and Chokoni near Bareilly.
For over two decades now, Indian Oil has been providing technical and manpower
secondment services to overseas companies. Such services have been extended to Emirates
National Oil Company (ENOC), Kenya Pipeline Company and Aden Refinery, Yemen.
For the first time, SAP implementation / IT consultancy was provided in Sri Lanka.
Consultancy on pipelines was provided to Greater Nile Petroleum Operating Company
(GNPOC), Sudan.

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Indian Oil has set up subsidiaries in Sri Lanka, Mauritius and the United Arab Emirates
(UAE), and is simultaneously scouting for new business opportunities in the energy
markets of Asia and Africa.
VISION:
A major, diversified, transnational, integrated energy company, with national leadership
and a strong environment conscience, playing a national role in oil security & public
distribution.

MISSION:
 To achieve international standards of excellence in all aspects of energy and
diversified business with focus on customer delight through value of products and
services, and cost reduction
 To maximize creation of wealth, value and satisfaction for the stakeholders

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 To attain leadership in developing, adopting and assimilating state of-the-art
technology for competitive advantage
 To provide technology and services through sustained Research and Development
 To foster a culture of participation and innovation for employee growth and
contribution
 To cultivate high standards of business ethics and Total Quality Management for a
strong corporate identity and brand equity
 To help enrich the quality of life of the community and preserve ecological balance
and heritage through a strong environment conscience

PRODUCTS AND SERVICES:

The main Products of Indian oil are petrol, diesel, LPG, Auto LPG, Aviation turbine fuel,
Lubricants and Petrochemicals: Naphtha, bitumen, kerosene etc
Indian oil operates the largest and the widest network of fuel stations in the country.
Numbering about 20,575(16,350 regular ROs & 4,225Kisan Seva Kendra). It has also
started Auto LPG Dispersing Stations (ALDS). It supplies Indian cooking gas to over
66.8million households through a network of 5.934 Indian distributors.

BRANDS:

 Indian Gas – Domestic and industrial Gas

 Auto Gas – Automotive natural Gas
 Xtra Premium – Automotive Premium Petrol
 Xtra Mile – Automotive Premium Diesel
 Servo – Lubricants and Greases
 Propel – Petrochemicals
 Indian Oil Aviation – Aviation Fuel
 LNG and Doorstep – LNG by cryogenic transportation
 Indian Oil Paraffin Wax – Plastic Bags

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The main services offered by Indian Oil are Refining, Marketing, Pipeline, R&D, and
training, Indian oil’s Research and Development Center (R&D) at Faridabad support s,
develops and provides the necessary technology solutions to the operating division of the
corporation and its customers within the country and aboard.

ORGANIZATION STRUCTURE:

IOCL OFFICE

R&D DIVISION PIPELINE MARKETING REFINEIRY ASSAM OIL

DIVISION DIVISION DIVSION DIVION

NR ER WR SR

RESPECTIVE STATE OFFICE

RESPECTIVE LOCATION OFFICE

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COMPITITORS:
Indian Oil Corporation has two major domestic competitors. Bharat Petroleum and
Hindustan Petroleum. Both are state-controlled, like Indian Oil Corporation. There are
two private competitors: Reliance Industries and Essar Oil
AWARDS/ACHIEVEMENTS:
2019

 Mr. Piyush Goyal, Union Minister of Railways and Commerce & Industry, and Mr.
Som Prakash, Minister of State for Commerce & Industry, felicitate Indian Oil with
Super Buyer Award-2019 for excellence in Government e-Market Place (GeM)
procurement.
 IATA honors Indian Oil with Award of Recognition at the ongoing Fuel Forum in
New Orleans, USA; Mr. Gurmeet Singh, Director (Marketing), Indian Oil receives
the award on behalf of the Corporation
 The All India Management Association (AIMA), the apex body of management
professionals in the country is committed to enhance business excellence through
its multifaceted activities. Thus, every year in order to recognize excellence in
Management, Entrepreneurship and Leadership, AIMA confers Managing India
Awards. Instituted in the year 2010 , over the years, AIMA Managing India
Awards have become one of the most coveted leadership honors in the country and
are greatly valued.
2020

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  Indian Oil Corporation has been awarded the Best PSU/Corporation for the
Promotion of Sports at the annual Sport star ACES Award ceremony in Mumbai.

CHAPTER II

RESEARCH METHODOLOGY

RESEARCH DESIGN:

A research design is considered as the frame work or plan for a study that guides as well as
helps in collection and analysis of data. A sound research is the basis of success of any
formal market research. The present study is of description type.
Nature of data:

The data collected for this study were mainly secondary in nature.

Source of data:

Secondary data were collected from Secondary sources like books, company websites,
journal and magazines.

OBJECTIVES

 To study the SWOT Analysis of the company

 To assess the Trend analysis in 5 years

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 CHAPTER III
DATA ANALYSIS
SWOT ANALYSIS:

STRENGTHS:
1. IOCL is India's largest commercial enterprise with a strong brand name
2. Indian Oil has petroleum products, fuels, lubricants, petrochemicals etc
3.Operatesmany refineries in India
4. Huge distribution network through retailing makes Indian Oil a popular brand name
5. Accounts for a majority share in the petroleum products market and substantial share in
refining
6. IOCL has over 35,000 employees
7. Loyalty programs like XTRAPOWER Fleet Card Program is aimed at Large Fleet
Operators
8. IOCL's pipeline in India spans more than 11,000km making it one of the largest globally
9. Strong branding and marketing exercises through TVC, sponsorships, print, online ads
etc make Indian Oil a top brand

WEAKNESS:
1. High competition from other oil companies means limited market share growth
2. Bureaucracy affects the operations of a government controlled company like IOCL

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OPPORTUNITIES:
1. IOCL can tap on increasing demand and higher fuel/oil prices
2. Increasing natural gas market for industries and transportation
3. Global expansion with tie-ups with international oil companies
4. Acquisition of smaller companies can further strengthen the position of IOCL

THREATS:

1. Government regulations can slow down business

2. High Competition means limited market share for IOCL
3. NGOs and environment focused companies can be an obstacle in business

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TREND ANALYSIS:
TOTAL Percentage = Current year amount
__________________ *100
Base year amount

SALES PERCENTAGE:
The trend analysis in on the sales percentage during 2016-2020

YEAR SALES
  Amount Trend %
2016 347,176.43 100
2017 359,942.15 103.677
2018 424,038.70 122.1393
2019 527,701.26 151.998
2020 486,256.45 140.0603

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 Sales In Crores
600000

500000

400000 YEAR
SALES Amount
300000 SALES Trend %

200000

100000

0
1 2 3 4 5

INTERPRETATION:
The above table shows the trend analysis on sales. In the year 2016, the sales are
347,176.43. In 2017, the sales are 359,942.15 are increased. In 2018 the sales are
424,038.70 and again increased. In 2019, the sales are 527,701.26 increased. In 2020, the
sales are 486,256.45 decreased. From 2016-2020, the sales are fluctuating.

PROFIT PERCENTAGE:

The Trend Analysis is on the profit percentage during 2016-2020.

YEAR PROFIT
  Amount Trend %
2016 9,877.98 100
2017 19,106.40 193.4242
2018 21,346.12 216.098
2019 16,894.15 171.0284
2020 12,617.87 127.7374

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 25000

20000

15000
YEAR
PROFIT Amount
10000 PROFIT Trend %

5000

0
1 2 3 4 5

INTERPRETATION:
The above table shows the trend analysis on Profit. In the year 2016, the profit is
9,877.98. In 2017, the profits are 19,106.40 increased. In 2018 the profits are 21,346.12
and again increased. In 2019, the profits are 16,894.15 decreased. In 2020, the profits are
12,617.87 decreased. From 2016-2020, the profits are fluctuating.

CHAPTER IV

FINDINGS:

The ultimate aim of every business concern is to maximize its profit by ensuring efficiency
and controlling costs. The management of Indian Oil Corporation works hard to attain this
objectives while to maintain a prestige and goodwill. The prestige and goodwill can be
provided only by maintaining better profitability. The present study reveals the following
aspects in relations to the Indian Oil Corporation Limited of the last five years 1st March
2020 to 1st March 2015.
 This company newly introduced in paraffin Wax in plastic bag.
 This company products are useful in vehicles and motors.

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  This company turnover producers more profits.
 The sales and profit both fluctuating.

CONCLUSION:
The project of performance analysis in the production concern is not merely a work of the
project. But a brief knowledge and experience of that how to analyze the financial
performance of the firm. The trend analysis is fluctuating. The study undertaken has
brought in to the light of the following conclusions.

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Balance Sheet - Indian Oil Corporation Ltd.

Rs (in Crores)

Particulars Mar'20 Mar'19 Mar'18 Mar'17 Mar'16

Liabilities 12 Months 12 Months 12 Months 12 Months 12 Months

Share Capital 9181.04 9181.04 9478.69 4739.34 2369.67

Reserves & Surplus 84587.83 99476.47 100692.33 94989.38 85764.64

Net Worth 93768.87 108657.51 110171.02 99728.72 88134.31

Secured Loan 112736.72 83259.91 12997.75 13311.13 14322.96

Unsecured Loan .00 .00 42527.41 37073.67 28160.41

TOTAL LIABILITIES 206505.59 191917.42 165696.18 150113.52 130617.68

Assets

Gross Block 166934.83 143599.26 131503.81 118598.38 95988.48

(-) Acc. Depreciation 33253.03 24891.43 17576.49 10718.89 4641.51

Net Block 133681.80 118707.83 113927.32 107879.49 91346.97

Capital Work in Progress 29737.75 23598.96 14348.43 10737.82 21025.08

Investments 39138.56 49755.38 47488.26 47304.60 37181.40

Inventories 63677.62 71470.38 65313.21 62240.87 38739.11

Sundry Debtors 12844.09 15448.02 10116.52 8502.37 7548.60

Cash and Bank 589.14 91.36 81.36 86.50 512.94

Loans and Advances 31421.60 36635.79 29464.81 22461.62 24150.07

Total Current Assets 108532.45 123645.55 104975.90 93291.36 70950.72

Current Liabilities 94098.45 112768.75 98858.81 87248.04 77717.22

Provisions 10486.52 11021.55 16184.92 21851.71 12169.27

Total Current Liabilities 104584.97 123790.30 115043.73 109099.75 89886.49

NET CURRENT ASSETS 3947.48 -144.75 -10067.83 -15808.39 -18935.77

Misc. Expenses .00 .00 .00 .00 .00

TOTAL
ASSETS(A+B+C+D+E) 206505.59 191917.42 165696.18 150113.52 130617.68

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