PROJECT REPORT

ISTITUTE OF MANAGEMENT STUDY NOIDA

SESSION: 2011-13

Summer Internship: Project Report

SUBMITTED TO MR.MAHESH DESHMUKH DY.MANAGER PLANT

SUBMITTED BY VIVEK SINGH SENGAR PGD-11121

Indian Oil Corporation Limited Bhopal

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A SUMMER TRAINING PROJECT REPORT ON STUDY ON CUSTOMER SATISFACTION OF COMMERCIAL AND DOMESTIC LPG

Undergone at

Under the guidance of MR. Mahesh Deshmukh (DY. Manager (PLANT)) Towards Partial fulfillment of

POST GRADUATE DIPLOMA IN MANAGEMENT (INSTITUTE OF MANAGEMENT STUDY NOIDA)

Submitted by Vivek Singh Sengar PGD-11121

Indian Oil Corporation Limited Bhopal

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STUDENTS UNDERTAKING

The Project is submitted to Institute of Management studies, Noida, as a live Training Project for partial fulfillment of PGDM program

Company Guide Mr. Mahesh Deshmukh Dy. Manager (Plant)

Faculty Guide Dr. Mahua Dutta

By Vivek Singh Sengar

Indian Oil Corporation Limited Bhopal

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ACKNOWLEDGEMENT

I would like to express my sincere gratitude to Mr. B.K ROY Ch. T&D Manager WR for allowing me to do training in Indian Oil Co. Ltd Bhopal.

I am thankful to Mr. Mahesh Deshmukh Dy. Manager (PLANT) for providing me an opportunity to add new dimensions to my Marketing as well as Management skills and knowledge.

He was like a mentor for me who showed me the path whenever I Stuck and provided impetus to the project during the course of its completion.

I also thank the Training & Development Department for giving me valuable suggestions and support and for providing an atmosphere so that I can learn as much as possible.

I owe a deep intellectual debt to all the pioneers who worked a lot in this field and have provided me with sufficient knowledge to lead the project to success.

I thank all who were involved directly and indirectly for their guidance and opinion in the completion of my project.

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EXECUTIVE SUMMARY The project was started on 7th of May, 2012 after knowing all the relevant information about the LPG market and distribution, under the guidance of Mr. Mahesh Deshmukh (Dy. Manager Plant). The first part of my project involves the study of distributors allocated to me Identification of their problem areas and helping them in order to increase sale. For this I used the method of personal interviews and questionnaires. At the same time, they were being made aware of the increasing network and consumption of LPG customers. For this I visited around 15 distributors in BHOPAL region. I was also visited 10 distributors out of BHOPAL. This study deals with the marketing activities for the LPG, study the customer satisfaction level. The customer satisfaction level is being measured through a questionnaire and covers the important measuring coordinates of the satisfaction level. The results from the survey are analyzed and several interesting revelations are made in the end with suggestions to improve the image and sales of the product.

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TABLE OF CONTENTS TOPIC STUDENTS UNDERTAKING

ACKNOWLEDGEMENT

PAGE NO. 3 4 5 7-10 11-15 15-16 16-21 22-32 33 34 34-36 36-37

EXECUTIVE SUMMARY OVERVIEW OF INDUSTRY

COMPANY PROFILE PRODUCTS MARKETING

SERVICES DISTRIBUTORS LIST INTRODUCTION OF RESEARCH REVIEW THE LITERATURE

Research methodology Define a problem Purpose or objectives Target population Sampling method Data collection method

Limitations of the study

DATA ANALYSIS FINDINGS &SUGGESTION CONCLUSION REFERENCE APPENDIX

37-43 44 45 45

Indian Oil Corporation Limited Bhopal

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OBJECTIVE OS STUDY 1 To gain an insight into the corporate world. 2 To familiar with the working on field. 3 To know the customer satisfaction of Indian Oil Dealers.

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INTRODUCTION
Overview of the Industry:
The Indian oil and gas sector is one of the six core industries in India and has very significant forward linkages with the entire economy. India has been growing at 8-9 per cent annually and is committed to accelerate the growth momentum in the years to come. This would translate into India's energy needs growing many times in the years to come. Hence, there is an emphasized need for wider and more intensive exploration for new finds, more efficient and effective recovery, a more rational and optimally balanced global price regime - as against the rather wide upward fluctuations of recent times, and a spirit of equitable common benefit in global energy cooperation. Exploration and Production (E&P) The growing demand for crude oil and gas in the country and policy initiative of Government of India towards increased E&P activity, have given a great impetus to the Indian E&P industry raising hopes of increased exploration . Oil & Gas - Key Developments and Investments Energy giant Reliance Industries Ltd (RIL) is in full force to strengthen its global leadership position through its ambitious US$ 11 billion-Jamnagar phase three expansion project (popularly known as J-3 mega petrochemicals project). The company has approached international markets to raise funds for the same.
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Recently, RIL officials have signed a US$ 400 million -loan agreement with Italian finance group SACE Spa.

State-run Indian Oil Corporation (IOC) plans to expand its pipeline network (from 10,900 km to 15,000 km) by investing Rs 7,700 crore (US$ 1.55 billion) by 2015. The company would lay more than 20 new pipelines to materialize its expansion plan. Oil & Natural Gas Corporation (ONGC) and IOC are eyeing exploration and refining opportunities in Sri Lanka as the island's Government would call for bids for seven oil and gas blocks in Manner Basin by June 2012. Both the companies are reported to have visited Sri Lanka to review the opportunities and discuss the prospect with concerned authorities After setting up two terminals on the western coast, Petro net LNG Ltd is planning to set up its third terminal in the east coast of India. The terminal, with a 5 million tone capacity, is projected to cost around Rs 4, 500 crore (US$ 902.9 million).

Oil & Gas - Government Initiatives Indian Government has encouraged Saudi Arabia to get involved in the country's petroleum upstream and downstream sector, revealed Mr. R P N Singh, Minister of State for Petroleum & Natural Gas. In recent bi -lateral talks between the nations, investment opportunities discussed included OPaL's Petrochemical project at Dahej, OMPL's Petrochemical project at Mangalore, IOC's LNG project at Ennore, Bharat Petroleum Corporation's LNG terminal at Kochi, Hindustan Petroleum Corporation's grass-root refinery in Visakhapatnam and IOC's petrochemical plant at Paradeep. The Andhra Pradesh Government has recently inked Memorandums of Understanding (MoUs) pertaining to oil and gas sector. While GMR Group proposed to invest Rs 33,000 crore (US$ 6.62 billion) for setting up a 15 million tonne refinery-cum-petrochemicals complex and a multiproduct special economic zone (SEZ) in the state, BR Shetty Group expressed interest to invest another Rs 33,000 crore (US$ 6.62 billion) to put up a refinery project at the PCPIR region in Visakhapatnam. The state Government has also signed an MOU with State -run GAIL India's subsidiary GAIL Gas under which the company would establish

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3.5 MTPA-capacity LNG terminal in the east coast with an estimated investment of Rs 5,000 crore (US$ 1 billion). HIGHLIGHTS IN THE PETROLEUM & NATURAL GAS SECTOR DURING 2010-11 India has total reserves (proved & indicated) of 757 million metric tonnes of crude oil and1241 billion cubic metres of natural gas as on 1.4.2011. The total number of exploratory and development wells and metreage drilled in onshore and offshore areas during 2010 -11 was 420 and 1005 thousand metres respectively. Crude oil production during 2010-11at 37.71 million metric tonnes is 11.91% higher than 33.69 million metric tonnes produced during 2009-10. Gross Production of Natural Gas in the country at 52.22 billion cubic metres during 2010-11 is 9.95% higher than the production of 47.50 billion cubic metres during 2009-10 The flaring of Natural Gas in 2010-11at 1.85% of gross production is lower than at 2.00% in 2009-10. The refining capacity in the country increased to 187.386 million matric tonnes per annum (MMTPA) as on 1.4.2011 from 183.386 MMTPA as on 1.4.2010. The total refinery crude throughput during 2010-11 at 206.15 million metric tonnes is higher about 7% than 192.77 million metric tonnes crude processed in 2009-10 (including data in respect of RIL, SEZ Refinery. The production of petroleum products during 2010-11 was 190.364 million metric tonnes (including 2.168 million metric tonnes of LPG production from natural gas) against the last years production at 179.769 million metric tonnes (including 2.243 million metric tons of LPG production from natural gas ). The country exported 59.13 million metric tonnes of petroleum products against the imports of 26.31 million metric tonnes (including 8.95 million metric tonnes of LNG) during 2010 -11. The consumption of petroleum products during 2010 -11 was 141.785 million metric tonnes (including sales through private imports) which is 3.60% higher than that of 138.196 million metric tonnes during 2009-10.

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The total number of retail outlets of Public Sector Oil Marketing Companies as on 1.4.2011 has gone up to 38964 from 36462 on 1.4.2010. The total number of LPG consumers of Public Sector Oil Marketing Companies as on 1.4.2011 was 125.266 million against 114.952 million as on 1.4.2010. The number of persons employed (including contract employees) in petroleum industry has been increased from 139865 on 1st April 2010 to 141929 on 1 st April, 2011 .

COMPANY PROFILE

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INTRODUCTION

In order to ensure greater efficiency and smooth working in the petroleum sector, Government of India decided to merge the refineries and the distribution activities. The Indian Refineries and Indian Oil Company were combined to form the giant Indian Oil Corporation (IOCL) on 1st September 1964, with its registered office at Bombay. In 1967, the pipeline division of the corporation was merged with the refineries division. Research &Development of Indian Oil Came into Existence in 1972. In October 1981 Assam Oil Company was nationalized and has been amalgamated with IOCL as Assam Oil Division (AOD).
Formation of Indian Oil Corporation Ltd.

Beginning in 1959 as Indian Oil Company Ltd., Indian Oil Corporation Ltd. was formed in 1964 with the merger of Indian Refineries Ltd.(established 1958). Indian Oil and its subsidiaries account for 49% petroleum products market share, 40.4% refining capacity and 69% downstream sector pipelines capacity in India As the flagship national oil company in the downstream sector, Indian Oil reaches precious petroleum products to millions of people every day through a country wide network of about 34,000 sales points. They are backed for supplies by 166 bulk storage terminals and depots, 101 aviation fuel stations and 89 (LP Gas) bottling plants. About 7,100 bulk consumer pumps are also in operation for the convenience of large consumers, ensuring products and inventory at their door step. Indian Oil operates the largest and the widest network of petrol & diesel stations in the country, numbering over 17,600. It reaches cooking gas to the doorsteps of over 50 million households in nearly 2,700 markets through a network of about 5,000distributors.Indian Oils ISO-9002 certified Aviation Service commands over 62% market share in aviation fuel business, meeting the fuel needs of domestic and international flag carriers, private airlines and the Indian Defense Services. The Corporation also enjoys a do4minant share of the bulk consumer business, including that of railways, state transport undertakings, and industrial, agricultural and marine sectors
SALIENT FEATURES

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1) Indias Most Trusted Fuel Pump Brand (ET. Brand Equity-AC Nielson Survey 2007) 2) Indias largest commercial enterprise with leading market shares in downstream segment of oil business. 3) Highest ranked Indian corporate in Fortunes list of worlds 500 largest Companies 4)20th largest petroleum company in the world- Fortune Global500 5) Local Currency Rating of A1+(short-term) & LAA+(long-term) from ICRA 6)Indias No.1 corporate in annual listing of Business Standards (BS 10000), Business India (BI Superior 100) &Economic Time (ET 500).
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.

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
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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
.

Values Care Innovation

Stands for: - Empathy Creativity Understanding Ability to learn/ absorb Cooperation Flexibility Empowerment Change
Passion Trust

Commitment Delivered Promises Dedication Reliability Pride Integrity Inspiration Truthfulness Ownership Transparency Zeal & Zest

OBJECTIVES & OBLIGATIONS OF IOCL Objectives:

1) To serve the national interests in oil and related sectors in accordance and consistent with Government policies. 2) To ensure maintenance of continuous and smooth supplies of petroleum products by way of crude oil refining, transportation marketing activities and to provide appropriate assistance to consumers to conserve and use petroleum products efficiently.

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3) To enhance the country's self-sufficiency in crude oil refining and build expertise inlaying of crude oil and petroleum product pipelines. 4) To further enhance marketing infrastructure and reseller network for providing assured service to customers throughout the country. 5) 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. 6) To optimize utilization of refining capacity and maximize distillate yield and gross refining margin. 7) To maximize utilization of the existing facilities for improving efficiency and increasing productivity. 8) To minimize fuel consumption and hydrocarbon loss in refineries and stock loss in marketing operations to effect energy conservation. 9) To earn a reasonable rate of return on investment. 10) To avail of all viable opportunities, both national and global, arising out of the Government of Indias policy of liberalization and reforms. 11) To achieve higher growth through mergers, acquisitions, integration and diversification by harnessing new business opportunities in oil exploration production, petrochemicals, natural gas and downstream opportunities overseas. 12) To inculcate strong core values among the employees and continuously update skill sets for full exploitation of the new business opportunities.

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13) To develop operational synergies with subsidiaries and joint ventures and continuously engaged across the hydrocarbon value chain for the benefit of society at large.
PRODUCTS PROFILE (IOCL)

The Products produced by IOCL are broadly classified into the following cases: Class A: 1.Liquid Petroleum Gas (L.P.G) Class B: 2.Motor Spirit (M.S.)/Gasoline 3.Super Kerosene Oil (S.K.O) 4.High Speed Diesel Oil (H.S.D) Class C : 5.High Speed Diesel Oil (H.S.D) 6.Furnace Oil (F.O.) 7.Bitumen 8. Naphtha 9.Aviation Turbine Fuel (A.T.F) Class D : 10.Mineral Turpentine Oil (M.T.O) 11.Jute Batching Oil (J.B.O) 12.Light Diesel Oil (L.D.O) 13.Unleaded petroleum 14.Lubes & Greases

MARKETING Reaching out to a Billion Hearts

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Indian Oil has one of the largest petroleum marketing and distribution networks in Asia, with over 35,000 marketing touch points. Its ubiquitous petrol/diesel stations are located across different terrains and regions of the Indian sub-continent. From the icy heights of the Himalayas to the sun-soaked shores of Kerala, from Kutch on India's western tip to Kohima in the verdant North East, Indian Oil is truly 'in every heart, in every part'. Indian Oil's vast marketing infrastructure of petrol/diesel stations, Indane (LPG) distributorships, SERVO lubricants &greases outlets and large volume consumer pumps are backed by bulk storage terminals and installations, inland depots, aviation fuel stations. LPG bottling plants and lube blending plants amongst others. The countrywide marketing operations are coordinated by 16 State Offices and over 100 decentralised administrative offices. Several surveys continue to rate Indian Oil as the dominant energy brand in the country and an enduring symbol for high quality petroleum products and services. The heritage and iconic association that the brand invokes has been built over four decades of commitment to uninterrupted supply line of petroleum products to every part of the country, and unique products that cater not only to the functional requirements but also the inspirational needs of millions of customers. Indian Oil has been adjudged India's No. 1 brand by UK-based Brand Finance, an independent consultancy that deals with valuation of brands. It was also listed as India's 'Most Trusted Brand' in the 'Gasoline' category in a Readers' Digest - AC Nielsen survey. In addition, Indian Oil topped The Hindu Business line's "India's Most Valuable Brands" list. However, the value of the Indian Oil brand is not just limited to its commercial role as an energy provider but straddles the entire value chain of gamut of exploration & production, refining, transportation & marketing, petrochemicals & natural gas and downstream marketing operations abroad. Indian Oil is a national brand owned by over a billion Indians and that is a priceless value

Company Profile Indian Oil Corporation Ltd. (IOCL), India's largest commercial ISO-9002 certified enterprise and as a leading public sector enterprise of India, is the highest ranked Indian company in the prestigious Fortune 'Global 500' listing. IOCL is the 20th largest petroleum company in the world. Established in 1959 as Indian Oil Company Ltd., Indian Oil Corporation Ltd was formed in 1964 with the merger of Indian Refineries Ltd. (Estd. 1958). It was originally incorporated as IOCL in the year 1964. IndianOil and its subsidiaries account for 48.84% industry market share, 47% petroleum products market share, 40.4% refining capacity and 67% downstream sector pipelines capacity in India. IOCL a traditional manufacturer of refined petroleum products, the new building blocks for global ambition of the corporation are the Petrochemicals, Natural Gas,

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Exploration & Production, Overseas Business, Consultancy, Biofuels and Hydrogen, etc. Industry Market Share Products Indian Oil's product range covers petrol, diesel, LPG, auto LPG, aviation turbine fuel, lubricants, naphtha, bitumen, paraffin, kerosene etc. Xtra Premium petrol, Xtra Mile diesel, Servo lubricants, Indane LPG, Autogas LPG, Indian Oil Aviation are some of its prominent brands. Recently Indian Oil has also introduced a new business line of supplying LNG(Liquefied natural gas) by the cryogenic transportation. The branding called "LNG at Doorstep". LNG headquarters are located in scope complex, Lodhi Road Delhi. Buy Refineries Price: Rs. 592 BSE Code: 530965 NSE Symbol: IOC Face Value: Rs.10 Shareholding Pattern (%) Promoters 80.35 FIIs 1.01 Institutions 5.21 Public & Others 3.80 Share Price Data Paid up Equity (Rs. Cr) 1213.98 Market Cap (Rs. Cr.) 73931.38 52 week High (Rs.) 662.00 52 week low (Rs.) 300.00 Book Value (Rs.) 362.92 P/E 25.06 Refineries Digboi Refinery, in Upper Assam, is India's oldest refinery and was commissioned in 1901. Originally a part of Assam Oil Company, it became part of IndianOil in 1981. Its original refining capacity had been 0.5 MMTPA since 1901. Modernisation project of this refinery has been completed and the refinery now has an increased capacity of 0.65 MMTPA. Guwahati Refinery, the first public sector refinery of the country, was built with Romanian collaboration and was inaugurated by Late Pt. Jawaharlal Nehru, the first Prime Minister of India, on 1 January 1962. Barauni Refinery, in Bihar, was built in collaboration with Russia and Romania. It was commissioned in 1964 with a capacity of 1 MMTPA. Its capacity today is 6 MMTPA. Gujarat Refinery, at Koyali in Gujarat in Western India, is IndianOils largest refinery. The refinery was commissioned in 1965. It also houses the first hydro cracking unit of the country. Its present capacity is 13.70 MMTPA. Haldia Refinery is the only coastal refinery of the Corporation, situated 136 km downstream of Kolkata in the Purba Medinipur (East Midnapore) district. It was commissioned in 1975 with a capacity of 2.5 MMTPA, which has since been increased to 5.8 MMTPA Mathura Refinery was commissioned in 1982 as the sixth refinery MMTPA. Located strategically between the historic cities of Delhi and Agra, the capacity of Mathura refinery was increased to 7.5 MMTPA.

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Panipat Refinery is the seventh refinery of IndianOil. The original refinery with 6 MMTPA capacity was built and commissioned in 1998. Panipat Refinery has doubled its refining capacity from 6 MMT/yr to 12 MMTPA with the commissioning of its Expansion Project. Subsidiary refineries :Bongaigaon Refinery (2.95 MMTPA), Chennai Petroleum (9.5 MMTPA)

Globalisation Sri Lanka Lanka IOC Ltd. began retailing operations in February 2003. Largest private sector company in Sri Lanka, with 11.4% market share. Sales grew by over 8%. Launched bunkering business. 18 TMTPA lube blending plant commissioned at Trincomalee; 8 new lube distributors commissioned. Mauritius IndianOil Mauritius Ltd. incorporated in October 2001. Overall sales rose by 19.5%. Market leader in aviation business with market share of 35%. Market share rose to 19.8%. Dubai Wholly-owned subsidiary IOC Middle East FZE incorporated in April FZE, 2006, actively pursuing lubricant business in Middle East and Africa. Servo distributors appointed for Oman, Qatar and Bahrain.

Key Financials Sales for the quarter ended March 2009 were at Rs 59938 crore down by 16.8 % in the corresponding period.

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In the previous year. PBIDT was at Rs 9620.2 crore up by 178.24 % in the same quarter of the previous year. PAT was at Rs 6623 crore up by 1698.7 % from the quarter ended on March 2008. New Pipelines New product pipelines from Chennai to Bangalore . From Dadri to Panipat (130 km, Rs. 298 crore), Branch pipeline from KSPL, Viramgam to Kandla (217 km, Rs. 349 crore).

Brighter future with loss of contributors vanishing Under-realization may become a thing of past with steep fall in crude oil prices Indian basket of crude oil prices from a peak of US$ 142.04 per barrel on 3rd July 08 has come down to US$ 68 per barrel on 1st June 2009. With the sanction of oil bonds by the Government (Rs.32,595 crore or US$ 6.8 Bn), the borrowings to fall sharply leading to significant reduction in interest cost Indian Oil received oil bonds of Rs.11,975.51 crore ( US$ 2.5 Bn) on 10th Nov08. Indian Oil, a major supplier to core sector o Supplier of fuel (more than 80% of requirement) to Government organizations i.e. army, railways, state road transports, air force & navy Key sectors fertilizer, power & aviation are largely dependent upon Indian Oil. Free-pricing hopes fuel oil co stocks The Oil Ministry is now seriously considering a free pricing regime for oil instead of the existing subsidy regime. Oil sector reforms seem to be high on the government's agenda, as it ends up doling out subsidies to OMCs to cover part of their losses, incurred due to government-fixed prices. Decontrolling of the fuel pricing will give autonomy to the OMCs to fix the prices . Industry experts believe that fuel prices may be freed as long as global crude prices remain benign. Bottom Line Value strength & importance of Indian Oil in Indian economy can not be undermined despite global economic turbulence

PETROLEUM

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INDANE

REFINERIES ( At Panipat, Haryana) AVIATION

(At Bongaigaon, Assam)

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SERVO

SERVICES Refining Born from the vision of achieving self-reliance in oil refining and marketing for the nation, IndianOil has gathered a luminous legacy of more than 100 years of accumulated experiences in all areas of petroleum refining by taking into its fold, the Digboi Refinery commissioned in 1901. At present, IndianOil controls 10 of Indias 20 refineries. The strength of IndianOil springs from its experience of operating the largest number of refineries in India and adapting to a variety of refining processes along the way.

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Having absorbed state-of-the-art technologies of leading process licensors like UOP, Chevron, IFP, Stone & Webster, Mobil, Haldor Topsoe, KTI/Technip, Linde, CD-Tech, Stork Comprimo, etc., IndianOil in an excellent position to offer O&M services for latest technologies such as distillate FCCUs, Resid FCCUs, hydrocrackers, reformers (both semi-regenerative and continuous catalytic regeneration types), lube processing units, catalytic de-waxing units, cokers, coke calciners, visbreakers, merox, hydro-treaters for kero and gasoil streams, etc. IndianOil refineries also have units for producing specialty products such as bitumen, LPG, MTBE, Butene-1, Propylene, Xylenes, Di-Methyl Terephthalate (DMT), polyester staple fibre (PSF) and other petrochemicals like Linear Alkyl Benzene, Paraxylene (PX), Purified Terepthalic Acid (PTA), etc. The Corporation has commissioned several grassroot refineries and modern process units. Procedures for commissioning and start-up of individual units and the refinery have been well laid-out and enshrined in various customised operating manuals, which are continually updated. IndianOil also offers the specialised services of its experts for commissioning/start-up assistance depending on the clients need. Its team is also well-equipped to prepare operation manuals with clear instructions for plant start-up, operation, shutdown, emergency handling, etc.

On the environment front, all IndianOil refineries fully comply with the statutory requirements. Several Clean Development Mechanism projects have also been initiated.

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With its vast experience in successfully implementing SH&E policy and practices at various units, IndianOil offers its services in ensuring that the clients work environment is safe, healthy and clean. IndianOil also offers faculty assistance for tailor-made training programmes that suit the requirement of refinery or pipelines personnel or a selection of programmes from the clients training calendar. Innovative strategies and knowledge-sharing are the tools available for converting challenges into opportunities for sustained organisational growth. IndianOils Refineries team have a deep understanding of the complexities of all the process units of modern refineries and can offer comprehensive services of a highly professional nature on different facets given in details in this segment. With strategies and plans for several value-added projects in place, IndianOil refineries will continue to play a leading role in the downstream hydrocarbon sector for meeting the rising energy needs of our country.

Marketing

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IndianOil provides a wide range of marketing services and consultancy in fuel handling, distribution, storage and fuel/lube technical services. With a formidable bank of technical and engineering talent, IndianOil is fully equipped to handle small to large-scale infrastructural projects in the petroleum downstream sector anywhere in the country. Our project teams have independently or jointly as a consortium, have set up depots, terminals, pipelines, aviation fuel stations, filling plants, LPG bottling plants, amongst others. IndianOil's fuel management system to bulk customers offer customized solutions that deliver least cost supplies keeping in mind usage patterns and inventory levels. A wide network of lubricant and fuel testing laboratories are available at major installations which is further backed by sector-wise expertise in the core sectors of power, steel, fertilizer, gas plants, textile mills, etc. Cutting edge systems and processes are designed around one simple belief-to provide valuable customers with an unbeatable edge in their business. IndianOil's supply and distribution network is strategically located across the country linked through a customized supply chain system backed by front offices located in conceivably every single town of consequence. The wide network of services offered by IndianOil, Marketing Division is illustrated in this section, which includes; commercial/reticulated LPG; total fuel management/ consumer pumps; IndianOil Aviation Service; LPG Business (non-fuel alliances); loyalty programs; retail business (non-fuel alliances) and SERVO technical services.

Pipeline

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In Indias infrastructure, the petroleum pipelines form a crucial part enabling sustained availability of petroleum products in all parts of the country for economic growth. The pipelines transport petroleum products from refineries to demand areas and crude oil from import terminals as well as domestic sources to the inland refineries. India being a vast country, a wide network of pipelines becomes the paramount requirement of transporting petroleum products to interiors from refineries and crude oil to the land locked refineries. It is an established fact that pipelines are preferred as a cost effective, energy efficient, safe and environment friendly method of transportation for petroleum products and crude oil and are playing a leading role in meeting the demand for petroleum products in India. Economic growth and expansion of infrastructure in India offer opportunities to better utilize the existing pipeline network in addition to expand by constructing new pipelines.

IndianOil, the pioneer in cross-country petroleum product pipeline in the Indian sub-continent constructed and commissioned its first petroleum product pipeline, Guwahati-Siliguri Pipeline in the year 1964. Since then IndianOil has mastered the art and technology of pipeline engineering. Over the last four decades the pipeline network of IndianOil has grown to 10,899 km IndianOils sustained pursuit and implementation of proven safety and environmental management systems have brought rich results. All operating pipeline units have been accredited

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with ISO 9000 and ISO 14001 certificates.

Various initiatives in the field of project management, operations and maintenance including training in countries like Oman, Ethiopia, Kuwait and Sudan have been undertaken. Today IndianOil is well placed to provide seamless services in the entire spectrum of petroleum pipelines covering techno-economic feasibility studies, design and detailed engineering, project execution, operations and maintenance, consultancy services in augmentation and modernization, etc. Supervisory Control and Data Acquisition (SCADA) and application software expertise are available from project implementation to commissioning including field services, maintenance and operational support. Tanker handling, petroleum product and crude oil accounting, quality control, ocean loss control, pigging procedure development and analysis of pigging data, selection, testing and evaluation of drag reducers, operations and maintenance of tank farm and pump stations are other areas of expertise available with IndianOils Pipelines Division.

IndianOil provides a wide range of marketing services and consultancy in fuel handling, distribution, storage and fuel/lube technical services. With a formidable bank of technical and engineering talent, IndianOil is fully equipped to handle small to large-scale infrastructural projects in the petroleum downstream sector anywhere in the country. Our project teams have independently or jointly as a consortium, have set up depots, terminals, pipelines, aviation fuel stations, filling plants, LPG bottling plants, amongst others. IndianOil's fuel management system to bulk customers offer customized solutions that deliver least cost supplies keeping in mind usage patterns and inventory levels. A wide network of lubricant and fuel testing laboratories are available at major installations which is further backed by sector-wise expertise in the core sectors of power, steel, fertilizer, gas plants, textile mills, etc. Cutting edge systems and processes are designed around one simple belief-to provide valuable customers with an unbeatable edge in their business. IndianOil's supply and distribution network is strategically located across the country linked through a customized supply chain system backed by front offices located in conceivably every single town of consequence.

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The wide network of services offered by IndianOil, Marketing Division is illustrated in this section, which includes; commercial/reticulated LPG; total fuel management/ consumer pumps; IndianOil Aviation Service; LPG Business (non-fuel alliances); loyalty programs; retail business (non-fuel alliances) and SERVO technical services.

Pipeline

In Indias infrastructure, the petroleum pipelines form a crucial part enabling sustained availability of petroleum products in all parts of the country for economic growth. The pipelines transport petroleum products from refineries to demand areas and crude oil from import terminals as well as domestic sources to the inland refineries. India being a vast country, a wide network of pipelines becomes the paramount requirement of transporting petroleum products to interiors from refineries and crude oil to the land locked refineries. It is an established fact that pipelines are preferred as a cost effective, energy efficient, safe and environment friendly method of transportation for petroleum products and crude oil and are playing a leading role in meeting the demand for petroleum products in India. Economic growth and expansion of infrastructure in India offer opportunities to better utilize the existing pipeline network in addition to expand by constructing new pipelines.

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IndianOil, the pioneer in cross-country petroleum product pipeline in the Indian sub-continent constructed and commissioned its first petroleum product pipeline, Guwahati-Siliguri Pipeline in the year 1964. Since then IndianOil has mastered the art and technology of pipeline engineering. Over the last four decades the pipeline network of IndianOil has grown to 10,899 km Indian Oils sustained pursuit and implementation of proven safety and environmental management systems have brought rich results. All operating pipeline units have been accredited with ISO 9000 and ISO 14001 certificates. Various initiatives in the field of project management, operations and maintenance including training in countries like Oman, Ethiopia, Kuwait and Sudan have been undertaken. Today Indian Oil is well placed to provide seamless services in the entire spectrum of petroleum pipelines covering techno-economic feasibility studies, design and detailed engineering, project execution, operations and maintenance, consultancy services in augmentation and modernization, etc. Supervisory Control and Data Acquisition (SCADA) and application software expertise are available from project implementation to commissioning including field services, maintenance and operational support. Tanker handling, petroleum product and crude oil accounting, quality control, ocean loss control, pigging procedure development and analysis of pigging data, selection, testing and evaluation of drag reducers, operations and maintenance of tank farm and pump stations are other areas of expertise available with Indian Oils Pipelines Division.

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Training

Success is people driven. Building competencies through training is one of the core strengths of IndianOil. The Indian Oil Institute of Petroleum Management- a centre of excellence for nurturing future leadership, situated on the outskirts of New Delhi, conducts advanced management education programmers in collaboration with premier business schools and top line professionals. Indian Oil operates 18 training centers across the country for up-skilling, re-skilling and multi-skilling of employees in its pursuit of corporate excellence. Indian Oil has been serving as a source of technical support and expertise to petroleum companies of carious countries across the globe. Some of these countries, which have partnered for excellence, include Sri Lanka, Kuwait, Bahrain Iraq, Abu Dhabi, Tanzania, Ethiopia, Algeria, Nigeria, Nepal, Bhutan, Maldives, Malaysia and Zambia. Research & Development

Indian Oils world-class R&D Centre, established in 1972, has state-of the art facilities and has delivered pioneering results in lubricants technology, refining process, pipeline transportation, bio-fuels and fuel-efficient appliances.

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Over the past three decades, Indian Oil R&D Centre has developed over thousands of formulations of lubricating oils and greases responding to the needs of Indian industry and consuming sectors like Defence, Railways, Public Utilities and Transportation. The Centre has also developed and introduced many new lubricant products to the Indian market like multigraderailroadoils

Focused research in the areas of lubricants and grease formulations, fuels, refining processes, biotechnology, additives, pipeline transportations, engine evaluation, tribiological and emission studies, and applied metallurgy has won several awards. The R&D Centers activities in refining technology are targeted in the areas of fluid catalytic cracking (FCC), hydro processing, catalysis, reside up gradation, distillation simulation and modeling, lube processing, crude evaluation, process optimization, material failure analysis and remaining life assessment and technical services to operating units. In FCC, apart from process optimization and catalyst evaluation the accent is on the development of novel technologies aimed at value addition to various refinery streams. Indian Oils R&D Centre is fully equipped to provide technical support to commercial hydrocracker units in the evaluation of feed stocks and catalysts, optimization of operating parameters, evaluation of licensors' process technologies, development of novel processes

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Material failure analysis and remaining life assessment of refinery equipment and installations is a highly specialized service being provided by the R&D Centre to the refineries of Indian Oil as well as other companies. With a vision of evolving into a leader as technology provider through excellence in management of knowledge, technology and innovation, Indian Oil has launched Indian Oil Technology Ltd. The new subsidiary markets the intellectual properties developed by Indian Oil R&D Centre.

(14.2 kg capacity)

(19 kg capacity)

(5 kg capacity)

(47.5kg)

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(BULK)

SUPPLY NETWORK

COMPANY PRODUCT (INDANE)

DISTRIBUTORS

CUSTOMERS

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Distributors from where data is collected:

Abhimanyu Indane Bhopal Archana Gas Agency Bhopal Satyapal Indane Bhopal Chandrakanta Gas Agency Bhopal Johar Gas Agency Bhopal Pradeep Enterprises Bhopal Priyanka Indane Bhopal Rajeev Enterprises Bhopal S.B.Gas Bhopal Saini Indane Bhopal Gurunanak Gas Sewa Bhopal Rai Gas Agency Bhopal R.K.Distributors Bhopal Auto House Bhopal BHEL Employee Coop Society LT. Introduction of research
Need of the study

The project was an attempt to know that the customers of the plant are satisfied or not, what are the difficulties they are facing with the Plant or the product of the company if any, and is there is a need to revamp the companys tactics and position it all over again in the mind of the customers. In doing so firstly the grievances of the parties and the distributors were required to be solved in order to encourage them for push sales. Secondly a study of customers decision making factors is required in order to understand their priorities which can be worked upon. For this purpose a research is to undertaken to find out the market scenario.
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With the help of the responses given by the customers and data analysis, the company will be able to understand its strengths, weakness, opportunities and threats. The survey report submitted by me will assist the company to take right decisions to increase the turnover and market share. Objective of the study The objectives of the study are the following:1. To identify the issues related to Indane distributors. 2. To get the customers feedback from specific regions 3. To study Indian oil position in the mind of the consumers vis--vis competitors. 4. To find out the factors that affect customers decision to purchase the LPG 5. To find out short term problem in every sub-region that can be sorted out 6. To provide solution to the identified problems to improve upon Corporations image and sale.

REVIEW THE LITRETURE Fourth largest consumer of LPG in the world after USA, China & Japan, Third largest consumer in domestic sector in the world after China & USA, Major market of LPG is Domestic Sector, Home Delivery of 3 Million LPG cylinders per day (i.e 900Million/ year), Steady Growth @ 8% p.a. in LPG Consumption in India Demand in 200910 stands at 12746 TMT Indigenous Production in 0910was 10323 TMT Imports @22% of total LPG Demand Indigenous LPG production through State Run, Private And Fractionators

Consumption Pattern: Domestic growth is 89% but overall pie has reduced over the years Commercial & Industrial Consumption is increasing. World Consumption in Industrial Sector is almost11% & in Transport is 9% LPG Penetration in Domestic Sector:

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urban Population in million Households in million LPG connections in( m) Penetration of LPG Industrial Sector: 326.2 95 83.8 88% 838.8 159 31.2 19.6% rural 1165 254 115.0 45% total

Commercial & Industrial Segment growing at 27% CAGR for last 5 years Achieving Growth through: Conversions from conventional fuels to LPG Creating Awareness about LPG as cleaner fuel Capital Investments in Industries for LPG Installations Vision 2015 of Govt. of India 1. Increase in Domestic LPG Connections: Focus on areas where LPG penetration is low by giving incentives Raise population coverage from 50% to75%. Increasing LPG customer from 107 million to 160millions by 2015 Switch Over from Kerosene to LPG 2. Common LPG KitchenMaking LPG affordable: Opening up community Kitchens in all villages with population > 5000 as a part of Corporate Social Responsibility. Projected Growth in LPG Demand shall be 8-9% year on year till 2015 as per Vision 2015 of Govt. of India

3. Rajiv Gandhi Gramin LPG Vitaran (Low Cost Rural Distribution Model): Shall improve reach of LPG A low cost model of distribution sustainable for cluster of villages having about 4500 families Expected Refill Sales: 600 cylinders of 14.2 kg per month LPG Sales Volume in Domestic Sector. New Initiatives:

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1) Commissioned Worlds Largest Flex Speed Carousel at one of bottling plants of Stateowned company (HPCL) 2) Use of Anti Pilferage Device in LPG Cylinders 3)Integration of LPG & SKO distribution with Govt. of Indias Unique Identification Project (UIDAI) 4)IVRS/SMS based Refill Booking System for LPG Customers 5) EOI for Composite Cylinders 6) Exploring possibilities of Earning Carbon Credits

RESEARCH METHODOLOGY Purpose The basic purpose of this research is to find out the factors affecting the decision of the customers of LPG and their satisfaction levels with the product. Problem To find out problem is the first stage of the research process. It represents translating the management problem into research problem. It is rightly said, A problem well defined is half solved. SAMPLING METHOD Sampling Frame: A Sampling frame consists of a list of item from which the sample is to be drawn. Specific sampling method was used in the survey. The sample frame for this research constitutes the customers purchasing Domestic & commercial LPG cylinders from Plant Sample Size: The sample size of the research was approx 25 customers who all are big parties in themselves. DATA COLLECTION METHOD/ PLAN OF ACTION 1) Frame a suitable questionnaire for Domestic & commercial LPG customers of plant. 2) Collect details about the respective distributors as instructed by the company.
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3) Interact with the parties note down each and every detail regarding their consumption and satisfaction. 4) Record their feedback and the data collected and use it for analysis and interpretation. LIMITATIONS 1) 2) Data provided by the customers may not be 100% accurate. This data however does not represent the complete picture and is only a part of it.

DATA ANALYSIS (For Domestic & Commercial LPG customers) Q 1) for how long you were the distributor of Indian Oil?

Years
8 7 6 5 4 3 2 1 0 more than 10 5=6 3=4 less than 2 Years

Result: majority of distributors are having agency for almost more than 10years.

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Q2Please list the products and services being offered by your agency?

Product
12 10 8 6 4 2 0 domestic & commercial domestic commercial

Product

Result: majority of the agency holders are distributing both domestic & commercial.

Q3 what is your daily demand of domestic cylinders?

Agency
14 12 10 8 6 4 2 0 Less than 100 250-350 350-450 More than 450 Agency

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Result: Majority of the distributors are distribute 250-350 daily Q4What is the demand of Non-domestic cylinders?

Series 1
12 10 8 6 4 2 0 Less than 10 10=15 more than 15

Series 1

Q4what is the storage capacity of your agency?

Storage
7 6 5 4 3 2 1 0 Less than 400 400-500 500-600 600-700 Storage

Result: Majority of the agency having the storage capacity of 400-500.

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Q5 what is the number of defective cylinders in a single truck?

Agency
16 14 12 10 8 6 4 2 0 less than 5 5=10 More than 10 Agency

Result: Majority of the agency said less than 5.

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Q6If the defective cylinders were found in a truck while unloading than what will you do?

Dfective cylenders

imidiately return return after some time never return

Result: Majority of the agency immediately return with the same load. Q7How many times in a month plant can not able to provide cylinders according to your demand?

Series 1
16 14 12 10 8 6 4 2 0 1=2 3=5 More than 5 Series 1

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Result Majority of the agency said 1or 2 time very rarely. Q8List the defects those are mostly occur?

Series 1
9 8 7 6 5 4 3 2 1 0 Packaging Body related leakage Series 1

Result: Majority of agency face the packaging problem. Q9Supply and distribution process of the bottling plant?

Column1
10 9 8 7 6 5 4 3 2 1 0 Good Average Excelent Column1

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Result: Majority of the agency said Average. Q10 If the damage is occurring whiles the transportation who is responsible for that?

Series 1
12 10 8 6 4 2 0 Agency Trans. Company Plant

Series 1

Result: Agency said transportation company but the defective cylinders are changed by Plant without any extra charges. Q11What are the advantages of having Indian oil agency? Advantages 1Indian oil is very big name. 2customers are more attracted towards the big name. 3Market share is very high. 4Easy customer reach.

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Findings After the analysis of the data collected following were the findings of this report. Customers want some changes in the packaging. Demand of non-domestic cylinder is very poor. Almost once or twice in a month Plant is not able to provide cylinders according to Agency. Work load of production is very high of the plant. Customers are not fully aware of their rights. Dealers are not happy with the distribution process they want change in the process.

Suggestions Improve the packaging of the cylinders. Because of once or twice failure of supply create a problem for the agency so try to improve it. In a single truck if a single cylinder having leakage its very dangerous for the whole truck so try to improve the quality of cylinders. Plant should make some strict parameters for preventing the leakage. Plant should make some strict parameters for distribution process. Conduct timely checkups of the cylinders.

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Conclusion
After the detail study of this report it was concluded that project was about the study of customer satisfaction while doing the analysis. I found that the customers are satisfied with the Plant but on the other hand they also want some changes and difference. The product has a lot of scope in the near future. It has got some most excellent features and environmental friendly qualities. The only need is to improve the process of production and distribution and dealership network and awareness among the people. LPG market is a totally unpredictable market and the organization should be over-cautious of any complaints that come into product as it includes the sentiments of a mother for her kid and she would not prefer to give anything to her kid for which she is not 100% satisfied. So the company should take every step possible to contain these problems which in some way or the other affects the sale of IOCL and its distributors. The final outcome of the project is that the parameters which make decision regarding the purchase of Indane are Availability on time, Leakage, Weight, and Awareness and distribution.

REFERENCES WWW.WIKIPEDIA.COM WWW.PETROLEUM.NIC.IN WWW.IOCL.COM INDANE.CO.IN

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Appendix
QUESTIONNAIRE FOR CUSTOMERS (agency holders)

Name of the agency______________________________ Address of the agency____________________________ Name of agency owner___________________________ Phone number__________________________________ Registration number_____________________________

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