ACKNOWLEDGEMENT We are highly obliged to S.K.

PATEL INSTITUTE OF MANAGEMENT AND COMPUTER STUDIES for giving us the opportunity of doing our project for STRATEGIC MANAGEMENT. We wish to express our deep sense of gratitude and sincere thanks to our director Mr. Chinnam Reddy, who gave us the privileged opportunity to carry on this project and realize the hidden potentials of ours. We also express our great indebtedness to our faculty members, of SKPIMCS for their continuous support, kind co-operation and fruitful suggestion over the period of time that helped us to cultivate better professional skills.

We would like to express our deep feeling of gratitude and thanks to our parents, sister, friends and our classmates and roommates, who offered us full fledged support and all those who knowingly or unknowingly helped us to fulfill the project.

DEVDUTT GOSWAMI(26) DHWANEET MEHTA(54) MITESH SHAH(57) DARSHIT SHAH(60)

INDEX SR.NO 1 PARTICULARS ACKNOWLEDGEMENT PAGE NO.

2 3 4 5 6

EXECUTIVE SUMMARY INTRODUCTION INVESTMENT OPPORTUNITIES ONGC OIL INDIA LTD 6.1 OIL INDIA LTD(OIL's) Vision 6.2 Corporate Objectives 6.3 Research and development 6.4 Production activities 6.5 Exploration and development 6.6 Drilling and work over services INDIAN OIL CORPORATION

7 7.1 Brands of IOC 7.2 Investments of IOC abroad 7.3 Vision 7.4 Mission 7.5 Values 7.6 Company profile 7.7 Major projects GULF OIL COMPANY(HINDUJA GROUP COMPANY) 8 GUJARAT GAS 9 9.1 Transmission System 9.2 Natural Gas distribution 9.3 Health, Environment Safety, Security and

9.4 Standards of service

10 11 12

GAIL Bongaigaon Refineries and Petrochemicals Limited (BRPL) Conservation of petroleum products 12.1 In house conservation. 12.2 Petroleum Conservation Research Association (Pcra) And Its Activities 12.3 End Users Of Petroleum Products And Conservation Efforts 12.4 Further Tips For Conservation To Be Taken By Individuals 12.5. Role Of Oil Industry To Promote Oil Conservation

13 14 15 16 17

LPG Bibliography

PEST ANALYSIS OF IOC SWOT ANALYSIS OF IOC SWOT ANALYSIS OF HPCL

Oil and Gas

PROCESS OF HOW OIL AND GAS ARE BEING FORMED Almost all oil and natural gas are found deep underground in tiny holes in rocks. Millions of years ago a sea covered much of what is now dry land. In prehistoric times, tiny plants and animals lived in the sea. When these creatures died, they sank to the bottom of the sea, and got buried in layers of mud and sand. As the ages passed, this organic material sank deeper and deeper. The earth's crust changed its shape, and put intense pressure and heat on what was once only plants and tiny animals. Heat from the earth's interior and the weight of the overlying rocks gradually changed the energy-containing substances in the accumulated plants into hydrocarbon liquids and gases. As millions of years passed, these deposits turned into chemicals that are now called hydrocarbons. Hydrocarbons are simple molecules made up of carbon and hydrogen atoms joined together in chains or in rings. These molecules, being light and mobile, migrated upwards through the rocks but eventually became trapped beneath impermeable rock structures in the earth's crust. That is where oil and natural gas come from. Some were created millions of years ago, some were created thousands of years ago, and some are being created right now! Much of the oil and gas production now comes from underneath the sea-bed. As the technology for extraction continues to advance, production becomes possible from deeper and deeper waters. But the supplies are limited. Every drop of oil burnt adds to the monumental environment problems already created by pumping gases like carbon dioxide into the atmosphere. Many scientists worry that this continual release of carbon dioxide is an important cause of global warming. Natural gas is usually found underground near an oil source. It is a mixture of light hydrocarbons including methane, ethane, propane, butane, and pentane.

Other compounds found in natural gas include carbon dioxide, helium, hydrogen sulphide, and nitrogen. It is found around the world, but the largest reserves are in the former Soviet Union and the Middle East. This gas is lighter than air and is highly flammable, made up mainly of a gas called methane. Methane is a simple chemical compound that is made up of carbon and hydrogen atoms. Natural gas usually has no odour and cannot be seen. Before it is sent to the pipelines and storage tanks, it is mixed with a chemical that gives it a strong odour, almost like rotten eggs. The odour makes it easy to detect a leak. Natural gas is the cleanest burning fossil fuel. When it is burned, it gives off less carbon dioxide than oil or coal, virtually no sulphur dioxide, and only small amounts of nitrous oxides. Natural gas is mostly composed of methane and other light hydrocarbons. Both the carbon and the hydrogen in methane combine with oxygen when natural gas is burned, giving off heat. Coal and oil contain proportionally more carbon than natural gas, therefore giving off more carbon dioxide per unit of energy produced. Natural gas gives off 50% of the carbon dioxide released by coal and 25% less carbon dioxide than oil, for the same amount of energy produced. Carbon dioxide is the most important greenhouse gas contributing to global warming. To find oil and natural gas, companies drill through the earth to the deposits deep below the surface. The oil and natural gas are then pumped from below the ground by oil rigs. They then usually travel through pipelines. At oil refineries, crude oil is split into various types of products by heating the thick black oil. The products include gasoline, diesel fuel, aviation fuel, home heating oil, oil for ships, and oil to burn in power plants to make electricity. Oil is used for transportationcars, airplanes, trucks, buses, and motorcycles. Oil is stored in large tanks until it is sent to various places to be used. Oil is also made into many different productsfertilizers for farms, clothes, toothbrush, plastic bottle, and plastic pen. There are thousands of other products that come from oil. Almost all plastic comes originally from oil. Oil is transported in huge pipelines and tanker ships to places where it is made into other products. The origin of the oil industry in India can be traced back to the last part of the 19th century when petroleum was discovered in Digboi in north-east India. Thereafter large numbers of oil fields have been discovered both inland and offshore. This has led to the setting up of refineries to process the oil and gas for use in various sectors.

INVESTMENT OPPORTUNITIES IN THE OIL INDUSTRY Investment Opportunities in Refining Sector India has witnessed a spectacular growth in the refining sector over the years. In 1947, at Independence, there was only one refinery located in Digboi with a capacity of 0.25 million tonnes per annum. Subsequently, Standard Vaccum Oil Company put up a refinery in Bombay in 1955: and Caltex at Visakhapatnam in 1957. Today there are 14 refineries in the country, 13 in the public sector and one in the joint sector, with an install capacity of 60.4 million tonnes per annum. Out of the 13 PSU refineries, 6 are owned by Indian Oil Corporation Limited (IOCL), while the other 7 are owned by Hindustan Petroleum Corporation Limited (HPCL) (2). Madras Refineries Limited (MRL) (2) and one each by Bharat Petroleum Corporation Limited (BPCL), Cochin Refineries Limited (CRL) and Bongaigaon Refinery & Petrochemicals Limited (BRPL). One refinery in JVC is the 3 million tonnes Mangalore Refinery & Petrochemicals Ltd. ONGC to supply gas to Rajasthans 330 MW Dholpur power plant ONGC will supply Gas to Rajasthan Rajya Vidyut Utpadan Nigam Ltd. (RRVUNL) for its 330 Mega Watt (MW) power plant coming up at

Dholpur, to partially bridge the acute power shortage in the western state. This brings a new dimension to the association between ONGC and Rajasthan, which is more than four decades old. A Gas Sales and Purchase (GS&P) agreement was signed between ONGC and the Rajasthan entity on 31st October 2005 at Jaipur. The signing ceremony was presided over by the Honble Chief Minister of Rajasthan Ms. Vasundhara Raje.

The Gas Sales & Purchase agreement was inked by Mr. Niladri Kumar Mitra, Director (Offshore) I/C Marketing of ONGC, and Mr. N S Chaudhary, C&MD of RRVUNL. The picture also shows the Chief Minister of Rajasthan Ms. Vasundhara Raje, ONGCs C&MD Mr. Subir Raha and ONGCs Director (HR) Dr. A K Balyan The Dholpur power plant is a combined-cycle power project being set up at a cost of Rs.1155 Crore. The agreement envisages gas supply by ONGC to the power plant for a period of 12 years, which can be extended later.

DATA OF OIL INDIA LIMITED

OIL INDIA LTD(OIL's) Vision To be a vibrant, responsive, knowledge based, competitive E&P company with global presence, and a selective presence across the oil and gas value chain in India, maximizing shareholders' value, respecting stakeholders' aspirations and caring for the environment. Corporate Objectives OIL Believes "superlative efforts precede superlative results". To serve that very purpose, OIL has set the highest challenges for itself to measure up to. OIL's Organisational agenda is to : Accelerate exploratory efforts in order to increase hydrocarbon reserves. Speedy development of discovered fields and increase recovery from depleting and developed fields, to augment crude oil and gas production. Endeavour to have more acreage for hydrocarbon exploration/development both in India & overseas. Endeavour to undertake expansion of the activities by venturing into the oilfield services sector both in India and abroad. Generate adequate internal resources to meet the planned programmes of the Company after ensuring reasonable return on capital. Sustain & promote environmental protection. Enhance implementation of safety measures in operations. Ensure optimum development and effective utilization of human resources

Research and development

Research & Development has been an on-going process since the inception of the company. During the earlier days, R&D activities were carried out by pooling resources from various operating departments. Some of the significant initial R&D achievements include, thermal conditioning of oil for pipeline transportation of OIL's waxy crude, development and indigenisation of speciality oilfield chemicals like demulsifiers, deoilers and flow improvers, polymer flooding for enhanced oil recovery etc. In 1985, a full fledged R&D Centre was set up to intensify R&D activities for continuous upgradation of technology and expertise in the operations of the company. Within a short span of time, the centre has equipped itself with the most modern sophisticated instruments and computing facilities. The department is recognised by Department of Science & Technology, Govt. of India. In the recent past, R&D department has developed / implemented a number of innovative technical processes with tremendous operational and economical benefits to the company. Significant amongst these are geochemical identification of pay zones in drilling wells, cost effective low dosage flow improver treatment of crude oil for pipeline transportation in place of thermal conditioning, arresting fluid loss in highly depleted reservoirs for quick flow back after workover, fluoboric acid for well stimulation and bioremediation of soil / water polluted by oil. The department has won the prestigious NPMP award for its work on geochemical identification of pay zones. Further, in view of the rich deposits of coal in the North East, a research programme to carry out techno - economic viability study for making synthetic crude oil from coal has been taken up. A pilot coal liquifaction plant has been set up at the R&D centre in Duliajan and first phase of study has been successfully completed. It is the first of its kind in the whole of Asia and has long term implication as an alternate source of energy for the country in the future.

PRODUCTION ACTIVITIES

The Company has accumulated over a hundred years of experience in the field of oil and gas production, since the discovery of Digboi oilfield in 1889. Possibly, the only company to do so. From well completion to wellbore servicing, installation, operation and maintenance of modern surface handling facilities, the company has the skill and expertise to manage the entire range of operations required for onshore oil and gas production. The Company has perfected the techniques to produce and condition waxy (paraffinic and asphaltenic) crude oil produced from the oilfields of Assam. Productivity improvement measures like acid stimulation, polymer water shut-off, gravel packing, chemical consolidation are designed and implemented in-house. Coil tubing technology has been increasingly used over the last decade. About 50% of crude oil production come from depleting oilfields. Artificial lifting and EOR techniques adopted since late 1960's have played an important role in augmenting production and enhancing the ultimate recovery from these oilfields. Today, the company possesses the expertise in designing, installing and trouble shooting of continuous and intermittent gas-lift systems and the related networks. The Company produces around 5 MMSCUMD of Natural gas and has a dedicated pipeline network for collection/supply of gas as fuel and feedstock to many nearby industries such as Refinery, Fertilizer & Petrochemical Plant, Power generation Plant and 200 Tea Gardens. Over 90% of internal energy requirements for varied oilfield plants and equipment is met by Natural Gas. The Company utilises a SCADA (Supervisory Control and Data Acquisition) system for online monitoring of production, injection, storage-cum-flowback and distribution of Natural gas and has the expertise to design, install and commission gas compressor stations and gas collection and distribution network. OIL achieved highest ever Natural Gas production of 1882.96 MMSCUM and Natural gas sale 1377.16 MMSCUM during the year 2003-2004. An ambitious plan has been drawn up to supply Natural Gas to NRL, NEEPCO (enhanced) by Dec 2005 through systematic development of Non-associated gas field in Upper Assam. An LPG Plant was set up In 1982, to process 2.20 MMSCMD of gas using Turbo Expander Technology for the first time in Asia. This plant is consistently producing LPG with feedstock supplied from the Company's internal gas production. Due to efficient operation and maintenance of the Plant, it is

10

consistently producing over 50,000 MT of LPG annually. Bottling of LPG is also done at this plant.

Exploration and development Our systematic and scientific approach to exploration has been rewarded with a very high success ratio of sixty five percent of the exploratory wells drilled. Also possess both 2D and 3D seismic data acquisition capabilities, with excellent support services ranging from satellite navigation systems to remote blasting units. The Company owns a vast array of advanced computing systems and experienced personnel for processing and interpreting variety of geoscientific data through integrated exploration applications such as Remote Sensing, Structural and Stratigraphic Interpretation, Seismic Attribute Analysis, Source Rock Evaluation, Biostratigraphy, Petrophysics, Sequence Stratigraphy, Basin Analysis, Techno-economic evaluation, etc.

11

The geoscientific interpretation is done using state-of-the-art Workstations. Formation evaluation through an integrated approach of geological, geophysical, geo-chemical and reservoir engineering studies has allowed the Company to successfully develop and exploit deep (3500-4700 m) thin sand prospects. Today, these reservoirs contribute over 50% of the Company's production. It is envisaged that current introduction of extensive 3D seismic will assist in reservoir management not only in the new fields but also in the ageing fields heralding a new chapter in reservoir engineering studies. The Company has so far acquired, processed and interpreted over 77000 Line kms of 2D and 2000 sq km of 3D seismic data in the wide variety of forums including terrains, hills, deserts, rivers, marsh, etc.

Drilling and work over services

The Company currently owns and operates 13 drilling rigs and 14 workover rigs. In addition to this, the Company also charter hires drilling rigs based on operational requirement. Over 1000 wells, more than 3.5 million metres, have been drilled in varying surface and sub-surface environments including high underground pressures and temperature conditions and the depth of the well varied from 1000 m to as deep as over 5500 m. In order to minimize land acquisition time, OIL has resorted to cluster well drilling for developing its oil and gas fields. This has resulted in protection of

12

green

belt

surrounding

OIL's

operational

area.

The company has a legacy of pioneering innovations and achievements in drilling. The all round excellence in performance could be attributed to drilling wells efficiently by the rig building team and proper maintenance of equipment at the company's well-equipped Workshop and have achieved peak performance level of over 20000 M/Rig year.

DISTRIBUTION AND MANAGEMENT

13

DATA RELATED TO INDIAN OIL CORPORATION BRANDS OF INDIAN OIL CORPORATION

(1)SERVO

IndianOil's SERVO :IndianOil's Global Brand. SERVO is India's largest selling lubricant brand. SERVO range of lubricants enjoy approvals from major Original Equipment Manufacturers (OEMs) including new generation cars. 9,000 Retail Outlets and a countrywide network of SERVO SSls and SSAs Bazaar traders offer SERVO range of lubricants to customers. The SERVO range of lubricants is used in almost every application covering automotive, industrial and marine sectors. SERVO range of lubricants is fast emerging as a Global Brand with wide acceptance in UAE, Malaysra, Mauritius, Bangladesh, Bahrain, Sri Lanka, Nepal, Yemen, Kenya, Kuwait, Burkina Faso, Reunion Islands and other markets. SERVO has been designated as a SUPERBRAND. SERVO has genuine oil tie ups with a wide range of companies like Hyundai, Maruti, Bajaj, Lancer. Anil Kumble, the ever dependable sporting icon is SERVO Brand Ambassador. 14

Developed exclusively at IndianOil's world-class R&D Centre at Faridabad, there is a SERVO lubricant for virtually every single application. With over 42% market share and 450 grades, the country's leading SERVO brand lubricants from IndianOil are sold through over 8,100 IndianOil petrol/diesel stations, over 1,300 SERVO Shops and a countrywide network of bazaar traders. (2) Indane LPGas IndianOil Indane LPGas is used in 40 Million homes as cooking fuel and commands over 48% market share in India. Indane LPGas is marketed through a network of 4350 Indane distributors. Widely used in commercial sectors like industries, hotels & restaurants, medical labs, etc. 87 Indane Bottling Plants are spread across the country with a combined bottling capacity of 3.77 MMTPA. New and convenient 5 kg Indane LPGas cylinders introduced in rural and hilly regions for wider use by economically weaker sections. IndianOil's auto LPG brand Autogas is the leader in the segment. Marketed through a network 48 stations out of an industry total of 103 Auto LPG Dispensing Stations. (3)IndianOil Aviation Service Meets complete Aviation Fuel requirements of the Defence Services and for over 75 Domestic and International airlines besides private aircraft operators. IndianOilAviation Servicess is ISO 9002 certified and entrusted with WIP refueling for national and overseas dignitaries. IndianOil's prompt, courteous and 'No-Delay' Aviation Fuel Service has received accolades from major customers. Always on call for providing services in exigencies of war and peace. IndianOil Aviation Services has a market share of 65% with a network of 95 Aviation Fuel Stations (AFS) IndianOil Aviation Services is not only the largest aviation fuel marketer in the country but also the most preferred supplier of jet fuel for customers in India and abroad. IndianOil Aviation Services serves over 71 International airlines besides the domestic airlines in India. From Thiruvananthapuram in the South, to Leh in the North. From Porbandar in the West to Ziro in the East. IndianOil Aviation Services covers India like no one else. In fact, every 1.6 minutes, an aircraft is being refuelled by IndianOil Aviation Services, somewhere in the country. It also caters to over 90% demand of the Indian Defence services, besides the sensitive requirements of WIP flights at all the airports and at remote helipads/helibases across the Indian subcontinent. IndianOil Aviation Services not only maintains world-class standards in operations and safety but also conforms to the stringent global quality requirements of Aviation Fuel storage and handling.

15

Presently, IndianOil has earned this accreditation for thirteen major Aviation Fuel Stations including at all international airports. Eleven of the fourteen quality control laboratories have also earned this accreditation. IndianOil is also the first in India to have adopted a Quality Control Index System based on a quality audit. Fourteen DGCA approved IndianOil laboratories spread across the country carry out full specification tests for Aviation Fuels. IndianOil's Aviation Services, with 68% market share, meets the fuel and lubricants needs of domestic and international flag carriers, Defence Services and private aircraft operators through 93 aviation fuelling stations. Between one sunrise and the next, IndianOil refuels over 900 aircrafts. In fact, the refueling never stops and neither does our customer service, which is round the clock. The wings foreign exchange earnings during the year 2002-03 touched Rs. 898 crore. (4)AutoGas Autogas (LPG) has been introduced in Hyderabad, Bangalore and Mumbai markets. This alternative fuel is a good business proposition in the long term, and IndianOil intends to further expand its marketing in a big way.

(5)Premium Fuels

IndianOil offers XtraPemium Petrol and XtraMile Diesel, which are the best your vehicle can get. India's first 91 Octane petrol, XtraPremium is reinforced with multifunctional additives including 'Friction Buster'. Available at nearly 2000 Retail Outlets nationwide, XtraPremium offers : .Super Enhances Minimizes Restores Reduces Mileage cleaning peak exhaust engine power maintenance and Super of and Pick-up engines emissions acceleration cost

XtraMile, IndianOil's new generation High Speed Diesel with world-class additives has taken a leadership position in the market. Available at nearly 4400 Retail Outlets nationwide, XtraMile offers : Extra mileage -Greater Acceleration

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Faster Longer Eliminates

pick-up engine

-Lower life -Enhanced engine

maintenance overall knockings

Costs performance

Launched on Sept. 24, 2002, the premium auto fuels - XtraPremium and XtraMile (originally IOC Premium and Diesel Super respectively), mark a new beginning for IndianOil and offer a new genre of convenience and enhanced comfort for our customers.

XtraPower IndianOil's XtraPower Fleet Card Program is a complete fleet management solution for Fleet Owners / Operators and Corporates. XtraPower is a Smart Card based Fleet Card Program, which facilitates cashless purchase of fuel & lubes from designated retail outlets of IndianOil through flexible prepaid and credit facilities. The fleet card program also offers an exciting Rewards Program and unique benefits like personal accident insurance cover and vehicle tracking facilities. Every time you fill your fleet with fuel & lubes using your XtraPower fleet cards at designated retail outlets of IndianOil, you earn XTRA Points. You can exchange your accumulated XTRA Points for attractive gifts from XtraPower Rewards Catalogue including free fuel & lubes. In short, the XtraPower Fleet Card Program offers you, not just amazing convenience & security but also an opportunity to translate all your dreams into a reality. Swagat Highway Flagship Retail Outlets To cater the high growth areas of National Highways forming a part of Golden Quadrilateral and N-S, E-W corridors, IndianOil has launched Flagship Outlets, which have been branded as Swagat Retail Outlets. The facilities in the Swagat outlets is designed for, Best Q&Q standards in the industry through Retail Outlet site and tank truck automation Third party certification through Bureau Veritas Fortnight sampling thru Quality Audit Officers Training through a professional agency for the Dealer Incentives available on fuel purchases in the form of loyalty points redeemable against fuel/lubes and other rewards. Availability of XtraMile and XtraPremium Forecourt standards: strict housekeeping and maintenance standards ensure consistence performance in terms of service, on time, every time.

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Non-fueling offering tailored to increasing driver comfort and productivity. Non-fueling offering through Best-in-class alliance on exclusive basis wherever possible (communication, food/rest, healthcare, parking, vehicle care.) There are 111 such Swagat Flagship ROs planned across the country of which 45 Swagat Flagships have already been commissioned with a complement of fuel and non-fuel. XtraCare The launch of XtraCare was the culmination of a series of plans in retail design, product and service upgradation, capability training, automation, loyalty programme, retail site management techniques all benchmarked to global standards. While the industry standard is to take samples on a quarterly basis, IndianOil has moved several steps ahead by introducing fortnightly random sampling with specific importance given to RON (Research Octane Number) sampling which is truly the definitive test for quality and quantity. The surveillance audits by BV are being done on a more comprehensive basis. In another pioneering move, the third party certification, by BV, is also being done, for the first time, on a range of parameters that include hygiene, service, efficiency of fore court, allied services and customer satisfaction. The non-fuel services are being given a major fillip in the IndianOil XtraCare plan with a wide range of loyalty programme with -XtraRewards, XtraPower and cobranded cards like IndianOil-Citibank credit cards. The automation project of XtraCare is by far the most state-of-the-art in the country. The cutting edge technology includes automatic tank level gauges, temperature sensors, density measurement sensors, back-office server with DU controls, automatic bill printing facility, customer database, etc. The Tank Truck automation - Sealed Parcel Delivery System (SPDS) - will also include electronic locking of TTs carrying loads to these ROs. The real time density sensors and the sealed parcel delivery system is superior to mere GPSbased tracking systems because it not only tracks where the Tank Truck is but what is happening to the Tank Truck consignments. SPDS ensures that the quality of the fuel would be ensured from Supply point to the Customers. As a precursor to the IndianOil XtraCare launch, IndianOil had recently introduced the Platinum Circle and Gold Circle - top of the line, exclusive clubs for high selling retail outlet dealers. These elite IndianOil dealers have emerged as peer leaders and are an integral part of the XtraCare dealer sensitisation strategy.

18

During the year, IndianOil has already introduced modern and dedicated networked highway outlets with multifarious offerings, under the brand name Swagat which are IndianOils flagship Retail Outlets. So far over 400 XtraCare ROs have been set up; around 1500 XtraCare ROs will be ready by end 2006.

Rest and Refreshment Communications Health care Security Vehicle Care C-Store

Dhaba Dormitory, Toilets/Bathing facilites STD/ Fax facilities Health checkup for STD thru a tie-up with Gates Foundation Secured Parking Space OEM Service Station in alliance with Tata Motors Limited Convenience store thru alliance partners of choice

INVESTMENTS OF IOC ABROAD

Indian Oil Blending Ltd (IOBL) Indian Oil Blending Ltd (IOBL) is a fully owned subsidiary of Indian Oil Corporation Ltd. engaged in the Manufacturing of Lubricants and Greases and catering to the requirements of Defence, Railways, Streets Transports Undertakings, etc. During 2004-2005 IOBL posted a net loss 19

of Rs. 4.87 crore, in the same year it achieved a production of 211 Thousand MT (TMT) of Lubricants and Greases, as compared to 223 TMT produced during previous year, thereby recording a capacity utilization of 88%. IOBL is a fully integrated ISO Certified Company. The Company has blending facilities at Mumbai, Vashi and Kolkata. All the three Plants have ISO-14001 certified Environment Management System and QS 9000 Certified Quality Management System. All the Plant Laboratories are equipped with the most modern automated equipments to maintain high quality standards of Lubricants and Greases.

Lanka IOC Private Limited (LIOC) LIOC, IndianOils wholly owned subsidiary in Sri Lanka, is the only private oil company other than the state-owned Ceylon Petroleum Corporation (CPC) that operates retail petrol stations in Sri Lanka. It has been incorporated to carry out retail marketing of petroleum products, bulk supply to industrial consumers, building and operating storage facilities at the Trincomalee Tank farm, etc., thereby not only providing energy security and supply stability for Sri Lanka but also upgrading the overall standards of service, particularly in the retail sector. LIOC is making phased investments to the tune of Rs 172 crore (US $ 100 million) to provide world-class quality petroleum products and services at the most competitive prices to the Sri Lankan customers. Says Chairman, IndianOil, Mr M S Ramachandran, Our entry into Sri Lanka is in line with IndianOils Corporate Vision of becoming a transnational energy major. While we want to expand our market base and convert the surplus avails of

20

petroleum products into more wealth for our stakeholders, IndianOilis also committed to being a good strategic partner to Sri Lanka. IndianOils vast experience in downstream petroleum operations will help create a healthy and competitive petroleum industry in Sri Lanka for the larger benefit of the island nation. At present, the Sri Lankan petroleum market, with a demand of 3.5 million metric tonnes per annum (MMTPA) and a refining capacity of 2.2 MMTPA, meets the shortfall in supply through imports of about 1.5 million tonnes of products. Ceylon Petroleum Corporation is the only player in the petroleum sector with about 1070 retail outlets in the country. LIOC took over 100 CPC-owned petrol/diesel stations in February 2003 and commenced retailing products to customers. LIOC has also taken over 35 dealer-owned franchisee retail outlets and is in the process of taking over another 115 such franchisee outlets shortly. The outlets are being refurbished with world-class, state-of-the-art facilities and services at par with international standards. LIOC, through its retail chain, is also making available non-fuel facilities like Convenience stores, 24-hour ATMs, automatic carwash, food marts, etc. This will not only give value-for-money to the motorists but would give altogether a new refueling experience. The refurbished stations of LIOC have brought praise from all sections of the Sri Lankan society. The China Bay Tankfarm, of World War II vintage, is of historic and strategic significance, being the largest tankfarm located between the Middle East and Singapore. The tankfarm connects to the Trincomalee harbour, which is the 5th largest all-weather, non-tidal natural harbour in the world, with a 56 km shoreline, making this tankfarm most effective for fuel receipt, storage and supply. The tankfarm, formerly owned and operated by CPC, has a total of 99 tanks, each with a capacity of 12000 kilolitres. Currently, only 15 of these tanks are operational. LIOC intends to develop the tankage on need basis, as the volume of its downstream marketing operations in Sri Lanka grows. Progressively, LIOC will also look at introducing Auto LPG (Autogas), Aviation Fuel and INDANE LPGas in Sri Lanka,

21

besides its worldclass lubricants SERVO, which is already an established brand there. The surplus refining capacity in India will be used to bridge the existing gap between demand and supply in Sri Lanka. LIOC intends to harness the advantages of geographical proximity between India and Sri Lanka, resulting in low freight rates in transportation and IndianOils superior R&D capabilities, to provide petroleum products at the most competitive price to the Sri Lankan market. A term contract valued at US$ 120 million between CPC and IndianOil is already in place for supply of 0.5 MMT products to CPC and supplies have commenced since September 2002. In addition, LIOCs retail volumes are also being replenished by IndianOilfrom Indian refineries, the first such supply having commenced in March 2003. A tripartite agreement signed between the Sri Lankan Government, CPC and LIOC guarantees that only three retail players (including CPC and LIOC) will operate in the Sri Lankan market for the next five years, while authorising LIOC to import, sell, supply and distribute petroleum products in Sri Lanka. LIOC has also been allowed income tax exemption for 10 years from the date of commencement of operations and a concessional tax of 15% thereafter against the prevailing rate of 35%. The IndianOilsubsidiary has also been granted customs duty exemption for import of project-related plant, machinery and equipment during project implementation period of 5 years, besides free transfer of dividend/income to India. IndianOil Mauritius Ltd. IndianOil Mauritius Ltd. (IOML) is IndianOils wholly owned subsidiary in Mauritius. IndianOil is investing US$ 18 million in Mauritius to set up a range of marketing infrastructure. A state-of-the-art petroleum storage terminal with 15,500 metric tonnes capacity has already been commissioned at Mer Rouge to serve as the supply base of petroleum products. This microprocessor-controlled facility is the first-of-its-kind in Mauritius with automated product level monitoring, truck loading and computerised access control. As part of this project, separate import lines for Motor Gasoline (petrol), Gas Oil (Diesel), Jet Fuel (Aviation Fuel) and

22

Fuel Oil have also been laid. IOML has also strengthened the bunkering facilities with new lines to various quays in the port, which is fast emerging as the regions busiest port. Soon, IOML would be setting up a network of 25 world-class petrol stations in Mauritius, equipped with a range of valueadded services. These outlets would provide the discerning Mauritian customers with auto fuels and lubricants of international quality with care beyond compare. IOML has also joined a consortium of four existing oil companies to operate aviation fuel storage, hydrant lines and aircraft fuelling facilities in Mauritius. The consortium would soon build a new Aviation Fuel Terminal at Sir Seewoosagar Ramgoolam International Airport. IOML plans to build infrastructure for INDANE LPGas storage, bottling and distribution and also to market the world-class SERVO lubricants in the country. IOML is leveraging the strengths of its parent company IndianOil - and its extensive knowledge of the Mauritian market to build a world-class business reputation and deliver a delightful experience to the people of Mauritius. IOML stands for commitment and service to the people of Mauritius. "A New Wave In Mauritius" Hum honge kamyab !

IndianOil Technologies Limited IndianOil Technologies Limited (ITL) is a wholly owned subsidiary of Indian Oil Corporation. ITL is the technologymarketing arm for the entire range of technologies developed at IndianOils R&D Centre. The Centre, which was set up over

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three decades ago, has developed several technologies and technical expertise both in refining and lubricant sector. IndianOil has nurtured technology by nurturing human talent. This approach has worked well since the hydrocarbon sector is both technology and knowledge intensive. As a result, the Corporation is now in a position to offer a bouquet of technologies, products, processes and solutions that are aimed at improving performance and profitability. The R&D activities in refining technology are targeted in the areas of fluid catalytic cracking (FCC), hydro processing, catalysis, residue upgradation, distillation, simulation and modeling, lube processing, crude oil evaluation, process optimisation, material failure analysis, remaining life assessment and other technical services. ITL also offers state-of-the-art sludge disposal technology based on biotechnology which is widely accepted in the hydrocarbon sector. ITL also markets the R&D developed lubricants technology, which possesses USPs, established through wide market acceptance. The technology basket of ITL consists of process technologies, products and specialized services.

IBP Co. Limited (IBP) IBP Co. Limited, a subsidiary of IndianOil, is a stand-alone petroleum marketing company with exclusive business groups for Petroleum, Explosives and Cryogenics. As an enduring petroleum retailing company, IBPs marketing efforts are fully focussed on improving its retail market share in petrol and diesel, which has continued to grow and reached a new high during 2004-05. The Company achieved a growth of 12.3 % in MS (retail) with a market share of 8.89%, and 12% in HSD (retail) with a market share of 10.7%. The growth is nearly three times the Industry growth.

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During the year 2004-05, IBP sold an all-time high of 5.74 million kl of petroleum products against 5.19 million kl during 2003-04, resulting in a spectacular growth of 10.6 % against PSU industry growth of 3.9%. After takeover by IndianOil in 2002, the Company has more than doubled its retail network from 1,559 retail outlets in 2002 to 3,272 retail outlets as on 31.03.2005. In the last fiscal, 511 new petrol/diesel stations (retail outlets) were commissioned and it is proposed to commission another 700 retail outlets during the year 2005-06. IBP has been a pioneer in introducing quality and quantity assurance of all products and services at its retail outlets. The branding activities will be further strengthened during this fiscal through an initiative called "Project Horizon" in which 250 select, high-volume outlets will be specially branded with upgraded retail visual identity matching the XTRACARE retail outlets of IndianOil. These 250 ROs will be audited by a third party for its quality and quantity assurance and will offer a range of services such as loyalty rewards, fleet cards, etc IBP currently has 16 supply locations of its own. In other locations, its requirements of petroleum products are primarily met by IndianOils depots and terminals. Significant synergy and rationalisation have been achieved already through optimization of resources at both IOC and IBP., leading to lowering of operating costs. IBP ROs have also commenced marketing IOCs branded auto fuels XTRAPREMIUM (petrol) and XTRAMILE (diesel) from its ROs. IBP, however, will continue to sell IBP Red lubricants from its outlets. IBP has a small presence in LPG business too. It reaches LPG cooking gas to the doorsteps of about 3.5 lakh homes in the country through a network of 87 distributorships. However, plans are underway to hand over the LPG business to IOC post-merger. IBP's unique and proven excellence in retail marketing is being further strengthened by the vast infrastructure, product support, technology strength and market leadership of IndianOil, thus ushering in a new era of progress and prosperity. Infrastructure Details NO. OF ROs SKO / LDO

3272 (as On 18.05.2005) 378

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DEALERSHIP LPG DISTRIBUTORSHIP DIVERSIFIED ANCILLIARIES

74 TWO OTHER BUSINESS GROUPS EXPLOSIVES CRYOGENICS TOTAL NO - 18 EASTERN - 4 NORTHERN - 6 SOUTHERN - 3 WESTERN 5

DEPOT /TERMINALS

LUBRICANT FILLING AT BUDGE (WB) AND BLENDING PLANT EXPLOSIVES PLANT AT CHATTISGARH R&D CENTRE AT MANESAR ONE MANUFACTURING / FOR CRYOGENICS R&D CENTRE AT NASHIK BUSINESS GROUP AND OFFICE IN MUMBAI

Chennai Petroleum Corporation Limited (CPCL) Human Safety, Resources & Operations Health & Community Environment Development Vision Future Plans Meeting future Auto Fuel (MS & HSD) quality norms

Chennai Petroleum Corporation Limited (CPCL), a group company of IndianOil, has a refining capacity of 10.5 Million Metric Tons Per Annum (MMTPA), making it the largest refinery in South India. The year 2004-05 was a landmark year in the growth of CPCL. CPCLs 3MMTPA Refinery Expansion cum Modernization Project, which went on stream in March04, was completely operationalized and the refining capacity at Manali now stands at 9.5 MMTPA. The second refinery at Nagapattinam, Tamil Nadu, has a refining capacity of 1.0 MMTPA. The achievements in the various fronts are detailed below: 26

Operations: The year 2004-05 saw a quantum leap in the crude thruput and the quality of products from CPCLs Manali Refinery. All the units of the Rs. 2360 crore 3 MMTPA Refinery Expansion cum Modernization Project were operationalized, including the Once-through Hydrocracker Unit (OHCU) and its associated facilities which were successfully commissioned in August 04. The commissioning of the OHCU was very smooth and safe and was classified by the licensor (Chevron Lummus Global, USA) as World Class. With this, CPCL has started to produce Euro-III grade MS and HSD from January 05, well ahead of the scheduled date of 1st April, 2005. The Fluidized Catalytic Cracking Unit at Manali was revamped in October 04 at a cost of Rs. 91.38 crore. With the commissioning of the revamped FCCU, the total integration of the 3MMTPA Refinery Expansion cum Modernization Project with the existing refinery now complete. Since December04, Manali Refinery has been consistently operating in excess of 100% of its expanded capacity of 9.5 MMTPA. In 2004-05, CPCL touched an all time highest evercrude throughput at 8923 Thousand Metric Tonnes (TMT) processing highest ever High Sulphur crude (about 70%). CPCL has achieved in the year 2004-05, the highest ever production of MS (583 TMT), ATF (430 TMT) and HSD (2749 TMT). An all-time high sales of Wax and Sulphur was achieved. CPCLs performance on the expenditure on Plan Projects has been consistently over 100% of the Plan for the third year in succession. On the treasury front, foreign currency loan to the extent of US$ 218 million was availed with an overall cost of 2%. CPCLs share price touched a record high of Rs.262.0 on 27th October04.

CPCL implemented Total Productive Maintenance (TPM) in one of its units (Propane Deasphalting Unit) designating it as

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Manager Model Plant and has now extended the TPM activities to the entire Manali Refinery. The record production details are given below: MANALI 2004-05 TMT Crude throughput LPG MS ATF HSD 8181 239 583 430 2749 Previous Best TMT Year 6387 170 399 363 2421 2003-04 2003-04 2003-04 2003-04 1997-98

CBR-NAGAPATTINAM 2004-05 Previous Best TMT TMT Year Crude throughput LPG Naphtha HSD 742 28.5 181 320.1 653 24.2 159.3 274.4 2003-04 2003-04 2003-04 1999-00

Safety, Health & Environment Safety, Health & Environment has been one of CPCLs thrust areas and significant achievements have been made in the year 2004-05. CPCLs unique 2.5 MGD Sewage Treatment Plant was revamped by replacing the conventional chemical treatment with Ultra Filtration membranes. The third Effluent Treatment Plant to treat the effluents from the expanded refinery was commissioned. To ensure that ambient air quality is continuously monitored, two additional ambient air quality monitoring stations were installed. A comprehensive QEHS (Quality, Environment, Health & Safety) policy was adopted and external Surveillance audit was conducted by BVQI. Provision of Oil Spill Response (OSR) facilities at Chennai Port Trust was completed and a Mock Drill was

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conducted with these OSR facilities under the guidance of Coast Guard. On the safety front, CPCL achieved a record 10 million accident-free manhours on 2nd March, 2005. Human Resources & Community Development CPCL treasures its human resources and makes every effort to ensure the sustained growth of this invaluable asset.

To improve technical competency of employees, CPCL facilitated 23 of them to acquire B.S. degree in Process Engineering offered by BITS, Pilani.

To enhance the communication with employees, the Intranet Message Board (IMB) and Employee Communication Systems (ECS) were introduced, whereby employees could seek information on all matters technical or personal. The responses to these queries could also be viewed by all the employees.

A new Community Development Policy has been introduced for services in Education, Health, Women Development and Sports. Scholarship amount of Rs.1.3 lakh was paid to the meritorious/poor children studying in Manali schools.

CPCL contributed Rs.2.5 Cr. to the Prime Ministers Fund towards Tsunami. CPCL employees have contributed Rs.11.08 Lakhs to the Chief Ministers Fund for the same.
In the aftermath of the Tsunami tragedy, CPCLs Nagapattinam unit provided shelter to the affected local people in the housing complex in the days following the Tsunami. Essential relief materials worth Rs. 4.21 Lakhs handed over to District Collector, Nagapattinam for providing immediate assistance to the victims.

As a socially responsible corporate entity, CPCL contributed Rs.5 Lakhs towards construction of a Stadium at Thiruvallur. Vision - Future Plans

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Self-sufficiency in Water: CPCLs Manali Refinery faces acute water shortage from time to time on account of monsoon failures. To overcome this difficulty, a seawater desalination project of 5.8 MGD capacity has been conceived. The project will cost Rs.193 crore, and will go on stream by mid 2007 Polypropylene Project: The potential Propylene from the Cracked LPG of the revamped FCCU has increased to 90,000 TPA. It is proposed to augment this Propylene from external sources and set up a Polypropylene unit of 150,000 TPA capacity at Manali. Crude Oil Pipeline from Chennai Port to Manali refinery: With the old pipeline now more than 30 years old, CPCL will be putting up a new 42-inch crude pipeline, laid between Chennai Port and Manali. The project is expected to be completed by March 2006. The pipeline will follow the route of the Port Connectivity Road Project being undertaken by NHAI. Debottlenecking of Refinery-III CDU/VDU: The Crude & Vacuum Distillation unit of Refinery-III, which was commissioned in March04 with a design capacity of 3.0 MMTPA, is proposed to be debottlenecked to increase its capacity to 4.0 MMTPA. Preliminary studies are being undertaken. LNG Terminal at Ennore: IOC & CPCL propose to set up a 2.5 MMTPA LNG terminal at Ennore (about 17 km from Manali refinery). CPCL would be the lead promoter of this project. IOC is in the process of lining up LNG suppliers. Meeting future Auto Fuel (MS & HSD) quality norms a) MS quality upgradation: Conversion of SCR to CCR: The revamp of existing SemiRegenerative Catalytic Reformer (SCR) to Continuous Catalytic Reformer (CCR) is contemplated to augment MS production. It is proposed to increase the capacity from the present 225,000 to 300,000 TPA. Discussions with the licensor are in progress. New Isomerization Unit: In addition to revamping the existing SCR to CCR, CPCL will install an additional Isomerization Unit to meet the MS specification in 2010. Studies in this respect

30

have been initiated. b) HSD quality upgradation: DHDS Revamp: It is proposed to undertake a revamp of the existing DHDS unit and thereby increase its capacity from 1.8 to 2.34 MMTPA. Preliminary studies have been completed and detailed cost estimates are under preparation.

Bongaigaon Refineries and Petrochemicals Limited (BRPL)

Introduction Bongaigaon Refinery & Petrochemicals Ltd. (BRPL) was incorporated on 20th February, 1974 as a Govt. Company fully owned by the Central Government. The Company was registered with an authorised equity share capital of Rs. 50 crore, which was subsequently increased to Rs. 200 crore by December 1983. As on 31.03.2005, the total paid up capital of the company stood at Rs. 199.82 crore. The Government of India was holding the entire paid-up capital of the Company till 1990-91. The Government disinvested 25.54% of its share-holding in BRPL to UTI and other Financial Institutions and employees of the Company during 1991-92 to 1993-94.The last tranche of disinvestments of 74.46% was made in favour of Indian Oil Corporation Ltd. on 29th March 2001. As a result BRPL is a subsidiary of Indian Oil Corporation Ltd, which is a Govt. of India Undertaking. The Company has its Registered Office and production units at Dhaligaon in Bongaigaon District (now under recently constituted Chirang District) of Assam. In addition, the Company has Marketing/Regional offices at Guwahati, Kolkata, Mumbai, Coimbatore, and Delhi. Business Business & Plant Performance BUSINESS 31

Activities

Capabilities Business Activities

PLAN

The core activities of BRPL are refining of crude oil and production of petroleum products. The Company is also engaged in production and marketing of value-added petrochemical and PSF products. The Company has a Refinery with a rated capacity of 2.35 million tonnes per annum of crude oil, a petrochemicals complex comprising of a Xylene plant, a Dimethyl Terephthalate (DMT) plant and a Polyester Staple Fibre (PSF) plant. Commercial production of the refinery started in 1979 and other plants were commissioned in stages. The Refinery, which normally processes crude oil available in Assam, is presently processing crude from Ravva Oil Fields of Krishna Godavari Basin also. The Petrochemicals units consume Naphtha as its major raw material, which is supplied from the Refinery itself. The major products from the refinery are LPG, Unleaded MS, Naphtha, ATF, SKO, HSD, LDO, LSHS, LVFO, RPC & CPC. The major products of the Petrochemicals and PSF units are DMT and PSF. The petroleum products (except RPC & CPC) are marketed by Indian Oil Corporation Ltd.(IOCL). BRPL markets RPC, CPC, Petrochemicals products and PSF through its own marketing network in alliance with M/s RIL. The PSF and DMT plants, which were under shut-down for some period due to economic reasons are being operated in alliance with Reliance Industries Ltd. As on 31.03.2005, the Company had 1,744 employees on its rolls. Business & Plant Capabilities Initial capacity of 1.00 MMTPA commissioned in 1979 Refinery De-bottlenecked to 1.35 MMTPA in 1987 Expanded to 2.35 MMTPA in 1995 Petrochemicals 29,000 MTPA Para-Xylene plant commissioned in 1985 45,000 MTPA DMT plant

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Marketing

commissioned in 1985 30,000 MTPA PSF plant commissioned in 1988 Petrochemical products by BRPL through its countrywide network; Refinery products by IndianOil through a marketing agreement. Performance

S.No. i)

Particulars.

2000- 2001- 2002- 2003- 200401 02 03 04 05

Turnover (Rs. 1220 1326 1863 2849 Crore) Net Profit (Rs. ii) (-) 57 (-) 199 178 304 Crore) Dividend (Rs. iii) 61 174 Crore) Crude iv) 1.49 1.48 1.46 2.13 throughput (mt) Contribution to Exchequer (cumulative up to 2003-04) = Rs.2851 crores

2.31

The Ministry of Petroleum & Natural Gas has allocated Ravva Crude from Krishna Godavari Basin to BRPL from 2003-04, which has helped in improved capacity utilisation of the Refinery. In-house, there has been remarkable improvement in efficiency in production with improved distillate yields, low energy consumption & loss, reduction in production cost, etc. In addition, the Government of India has extended 50% excise duty benefit to all the NE refineries effective March 2002. All these have contributed to improved financial performance during the past three years. The financial and physical performance till 31.12.2004 have lived up to the expectations of the shareholders. BUSINESS PLAN In the Refining business, MS and HSD quality up-gradation projects would be essential to meet new product specifications applicable from the year 2010. Two projects, viz., MS (petrol) quality upgradation and HSD (diesel) quality upgradation, to meet Bharat stage-III specifications, are being pursued for implementation. These are major projects with a combined outlay of about Rs.800 crore.

33

In the PSF business, capacity expansion with associated diversification has been identified as an economic option to improve viability & competitiveness. The project envisages use of alternative feedstock PTA instead of DMT considering the advantages PTA has over DMT as a feed. Detailed analysis is being carried out.

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 maximise creation of wealth, value and satisfaction for the stakeholders. To attain leadership in developing, adopting and assimilating state-of- theart 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. Values Care Innovation Passion Trust IndianOilPeople... towards Excellence...

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Company profile Indian Oil Corporation Limited Click Here To View Annual Report 2004-2005 Indian Oil Corporation Ltd. (IndianOil) was formed in 1964 through the merger of Indian Oil Company Ltd. (Estd. 1959) and Indian Refineries Ltd. (Estd. 1958). It is currently Indias largest company by sales with a turnover of Rs. 1,50,677 crore (US $ 34.44 billion) and profits of Rs. 4,891 crore (US $ 1.12 billion) for fiscal 2004. IndianOil is also the highest ranked Indian company in the Fortune Global 500 listing, at 170th position. It is also the 18th largest petroleum company in the world and the # 1 petroleum trading company among the national oil companies in the AsiaPacific region.

35

Indias Downstream Major The IndianOil Group of companies owns and operates 10 of Indias 18 refineries with a combined refining capacity of 54.20 million tonnes per annum (1 million barrels per day). These include two refineries of subsidiary Chennai Petroleum Corporation Ltd. (CPCL) and one of Bongaigaon Refinery and Petrochemicals Limited (BRPL) . IndianOil owns and operates the countrys largest network of cross-country crude oil and product pipelines spanning nearly 10,000 kilometres, with a combined capacity of 58.62 MMTPA. IndianOil and its subsidiaries account for 56% petroleum products market share among public sector oil companies, 42% national refining capacity and 69% downstream pipeline throughput capacity. For the year 2004-05, IndianOil sold 50.13 million tonnes of petroleum products, including 1.96 million tonnes through exports. To maintain its competitive edge and leadership status, IndianOil is investing Rs. 24,000 crore (US $ 5.6 billion) during the X Plan Period (2002-07) in integration and diversification projects, besides refining and pipeline capacity augmentation, product quality upgradation and retail expansion. Network Beyond Compare As the flag-ship national oil company, IndianOils countrywide network of 24,000 sales points is backed for supplies by 158 bulk storage depots and terminals, 95 aviation fuel stations and 88 Indane LPG bottling plants. Its subsidiary, IBP Co. Ltd., is a stand-alone marketing company with a nationwide network of nearly 4000 retail sales points. IndianOil reaches Indane cooking gas to the doorsteps of 41.05 million households in 2,353 markets through a network of nearly 4,700 Indane distributors. IndianOil also operates the largest and the widest network of retail outlets (petrol/diesel stations) in the country. A significant

36

milestone was achieved with the commissioning of the companys 10,000th petrol station during the year 2004-05. IndianOils SERVO brand lubricants, being the first and only one in its category in India to be accorded Superbrand status, is the country's leading, with over 42% market share and 450 grades. SERVO lubricants are sold through over 10,000 Company retail outlets, besides a countrywide network of bazaar traders. IndianOils ISO-9002 certified Aviation Service commands a 65% market share in aviation fuel business, meeting the fuel needs of domestic and international flag carriers, private airlines and the Indian Defence Services.

Customer First At IndianOil, customer is the first priority. During 2004-05, a slew of initiatives were launched for the convenience and benefit of the various customer segments. Branded auto-fuels (XtraPremium petrol and XtraMile diesel) market was expanded to cover more retail outlets across the country. Exclusive XtraCare retail outlets were unveiled in select urban and semi-urban markets during the year 2004-05, offering a range of services to enhance customer delight and loyalty. Similarly, to meet the discerning needs of highway motorists, large format Swagat brand retail outlets were launched during the year with multiple facilities such as food courts, first aid, dormitories for drivers and cleaners, repair and spare part shops etc.. Specially formatted retail outlets - Kisan Sewa Kendras were also launched during the year 2004-05 to meet the diverse needs of rural customers were launched during the year. These outlets were strategically positioned to offer product and services such as fertilizers, seeds, pesticides, farm equipment, medicines, spare parts for trucks and tractors, tractor engine oils and pump set oils besides auto fuels and kerosene. R&D for Growth IndianOils world class R&D Centre is perhaps Asias finest. 37

PRODUCTWISE SALES

PRODUCT

2004-05

2003-04 Figures in TMT 4386.8 3688.4 2844.2 1649.0 5625.1 17404.8 713.2 418.9 7435.7 2101.7 521.4 17.1 46806.3

LPG NAPHTHA/NGL MOTOR SPIRIT (Gasoline / Petrol) ATF (Jet Fuel) / JPS SKO HIGH SPEED DIESEL (Gas Oil) LIGHT DIESEL OIL / MLO LUBES / GREASES FURNACE OIL / LSHS BITUMEN FTP Products CNG ALL PRODUCTS

4763.3 3348.5 2968.3 1847.4 5622.2 18050.3 622.5 433.3 7807.3 2095.4 599.5 26.7 48184.7

The above figures include sales of IndianOil and Assam Oil Division.

THE MARKETING NETWORK IndianOil's Marketing Network is spread throughout the country with over 23,000 sales points (the largest in the country). These include petrol / diesel stations, consumer outlets, lube distributors, SERVO SHOPS, SKO/LDO dealers, LPG distributors, etc. The Regional offices look after the North, East, West and Southern Regions of India, and Assam Oil Division supplements operations in the NorthEast. A number of State

38

Level, Divisional and Indane Area offices have been established in each Region. Petroleum products are essential inputs to the industrial, transportation, commercial and household sectors. The extensive network of sales points comprises: Unit Divisional Offices LPG Area Offices State Offices Terminals and Depots Aviation Fuel Stations LPG (Indane) Bottling Plants LPG Bottling Capacity Petrol / Diesel Stations SKO/LDO Dealers Indane Distributors SERVO Stockists Bulk Consumer Outlets Towns with Indane Indane Customers Markets covered by Indane (Above figures as on 1.4.2005) The Marketing Mantra for IndianOil is to continuously provide the best products and services at the most reasonable cost. The "New Look" petrol / diesel service stations selectively have "ConveniO" shopping stores, snap services, quick Lube change, automatic car wash and multi-product dispensing pumps. To facilitate easy transaction, many of our stations accept major credit cards. In fact, IndianOil and Citibank have launched a special co-brand card, the " IndianOil Citibank Number / Quantity 44 35 15 165 95 87 3778 TMTPA 10144 3552 4675 204 5847 2064 424 lakh 2177*

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Card" which is not only accepted at IndianOil petrol stations but at many restaurants, shops, airlines, etc. Also, IndianOil's tie-up with Coca-Cola ensures that select petrol stations stock and dispense "Coke" - thus quenching the thirst of the vehicles and the motorists! A new concept of "Jubilee Retail Outlets" has also been launched to set up petrol / diesel stations on highways with comprehensive value added facilities for various customer segments, namely truckers, farmers, tourists and passenger transport. These include motels, restaurants, parking lots, weighbridges, sale of tyres, batteries, acessories, agricultural machinery repairs and recreational facilities provided selectively. The first such retail outlet was commissioned at Ongole, District Prakasam, Andhra Pradesh in August 1998. IndianOil's "INDANE LPG" is being marketed in as many as 2064 towns with a customer population of 349 lakh served by a network of 4120 distributors - one of the largest networks in the world. SERVO lubricant range is the largest selling lubricant brand in India. IndianOil's Aviation Service continues to be the market leader in the aviation fuel business with a market share of nearly 67.7%. IndianOil was the first to introduce Hydrant Refueling System in India. IndianOil is also bunkering all types of marine fuels and lubricants required by the Shipping Industry in India.

IndianOil - Changing The Face Of Petroleum Retailing In this section: Xtra Initiatives in Retail Branding XtraQuality

40

Xtra Customer Service XtraAutomation XtraCommitment XtraValue Visual Identity Q & Q Concept Top Gear Jubilee Outlets Cashless Transactions Premium Fuels AutoGas (LPG) Customer Focus Fleet Card Truck Tracking Transport Exchange Early anticipation of the future needs of the customer is the secret of IndianOil's success in retail marketing. Periodic market research and in-depth focus studies help the Corporation gauge the changing customer choices and future market expectation. With over 10,144 petrol and diesel stations spread throughout the country, and an additional 3272 of subsidiary company, IBP Co. Ltd., IndianOil commands a dominant market share in the petroleum retail segment in India. IndianOil has over 53.2% market share of the petroleum consumption in India. In fact, it was the first company to recognise petrol and diesel stations as a "Key People Interface". Way back in the 1970s, IndianOil introduced Multi Purpose Distribution Centres (MPDCs) in select rural and semi-urban markets, which, apart from selling petroleum products, were dispensing medicines, farm equipment and other essential daily-use commodities. Today, it has gone a step further by opening Convenio Stores in urban markets dispensing a variety of consumer items.

XtraInitiatives in Retail Branding

41

IndianOil Citibank Credit/Debit Card is leading in the cobranded credit/debit segment with a customer base of 5.70 lakh. Special arrangement with State Bank of India Credit Cards for use at IndianOil outlets. XtraPower Fleet Card, exclusive Credit-cum-Debit Card for the fleet operators has over 4 lakh users. XtraRewards Card, specially designed for urban cash customers Exclusive facilities like ATMs, Convenio stores, Cyber Cafe, Auto Car wash, Quick Lube change centers at new generation retail outlets for enhanced customer care. XtraCare retail outlets a culmination of a series of planning in retail design, product and service upgradation, capability training, automation, loyalty programme, retail site management techniques all bench marked to global standards XtraCare Quality & Quantity, housekeeping, maintenance and customer service certified by the globally renowned agency M/s Bureau Veritas (BV). XtraQuality Samples tested on random/fortnightly basis with specific importance given to RON (Research Octane Number) a definitive test for quality and quantity. Third party certification, by Bureau Veritas on a range of parameters that include hygiene, service, efficiency of fore court, allied services and customer satisfaction. The maintenance of the various equipment at the XtraCare outlets is being done by regular Original Equipment Manufactures under a unique 'Equipment Quality Outsourcing' system. Xtra Customer Service Shree levels of competencies Customer Service, Personal hygiene/grooming and customer Complaint redressal. State-ofthe-art training systems like 'Retail Site Business Management' modules a unique training template culled out of best Global practices in Retail Sales management and backed by IIM

42

inputs. The high performers given status of 'Retail Stars' and a consistent record will also give the Retail outlet the 'Star XtraCare Retail' outlet status. High performing pump attendants rewarded with extremely attractive compensation packages and high performing dealers who continue to retain the high levels of XtraCare eligible for a wide range of monetary incentives.

XtraAutomation State of the Art automation project which includes automatic tank level gauges, temperature sensors, density measurement sensors, back-office server with DU controls, automatic bill printing facility, customer database etc. Tank Truck automation Sealed Parcel Delivery System (SPDS) includes electronic locking of TTs carrying loads to ROs. Real time density sensors and the sealed parcel delivery system superior to mere GPS based tracking systems. SPDS ensures that the quality of the fuel would be ensured from "Supply point to the Customers". XtraCommitment IndianOil introduced the Platinum Circle and GOLD Circle- top of the line, exclusive clubs for high selling retail outlet dealers. These elite IndianOil Dealers have emerged as peer leaders and is an integral part of the XtraCare Dealer 'sensitisation' strategy that IndianOil has been planning for the last year. XtraValue IndianOil has tied up with Tata Motors for Tata Authorised Service Stations (TASS) and auto spare parts at Retail Outlets Offered a real time truck tracking facility for fleet owners in collaboration with BSNL and Chennai based eLogistics. IndianOil has also signed a MoU with Coffee Day Xpress, part of the Amalgamated Bean Coffee Trading Company (ABCTC), for setting up coffee bars and take away kiosks at IndianOil petrol stations. IndianOil has also signed a MoU with the leading tyre brand JK

43

Tyre for a wide range of loyalty benefits for mutual customers including IndianOil's XtraPower Fleet Card program offering loyalty reward points on the purchase of JK Truck tyres, tubes and flaps. IndianOil has also set up Nirula, MacDonald and Foodworld outlets in select places as well as extended support to the Bill and Melinda Gates Foundation for a range of services including healthcare advise to the Trucking community which is a key customer segment for IndianOil. Recently, IndianOil achieved the enviable distinction of being the only petroleum brand in the latest ranking of the top 150 Indian Brands by Brand Equity. Among the exclusive services list for petrol pumps, IndianOil leads the charge with the top rank followed by its subsidiary IBP. In the sector wise ranking of all services IndianOil has powered its way to the 11th position, leaving the competition far behind. For the first time IndianOil took the Title Sponsorship of a major Cricket Event of Global proportions IndianOil Asia Cricket Cup at Colombo. IndianOil also launched an immensely successful Customer Ambassadors' programme which is an umbrella customer outreach programme. IndianOil's Aish in Malaysia named to the Limca Book of World Records as the largest consumer sales promotion campaign ever: Over 43 Million customers participated in the 'Aish in Malaysia' contest. Another record campaign was the Ao Roz Ek Truck Pao -Over Rs 12 crore worth prizes were declared 31 trucks in 31 days designed to address the greatest aspiration of a driver i.e. to own his own truck. IndianOil, ICICI Bank have formally signed an Memorandum of Understanding for setting up 'Kissan Seva Pumps' throughout the country. The Kissan Seva Pumps will market custom built product/service packages which will be made available to them at their doorsteps thereby saving considerable Time, Cost and Energy and avoiding conventional storage and leakage proof needs. The Kissan Seva Pumps will primarily market Fuels like Diesel, Kerosene, Indane LPG and SERVO Lubricants as well as

44

Financial services, Fertiliser and agro inputs seeds, pesticides, equipment; Agro products like vegetables, Communication services, Stationery and other items.

Visual Identity IndianOil first anticipated customer needs in urban areas for better, cleaner and well-designed petrol stations almost a decade ago. IndianOil was also the first to develop a comprehensive Retail Visual Identity programme to re-orient the design and standards of our petrol and diesel stations. IndianOil developed its strategy, marking the entry of colourcoded canopies, multi-product dispensing pumps, concrete driveways, digital air towers, cyber cafes, automated teller machines, auto-car washes, etc., all of which later became industry norms. The addition of world class infrastructure facilities in IndianOil's marketing network has had a significant impact on its market share in the petroleum retail sales category.

Q & Q Concept IndianOil's retail marketing initiatives are oriented around two simple concepts - Quality and Quantity. The concept of testing the product before buying at the IndianOil retail stations has few parallels in the petroleum industry. The Corporation's focus has been to segmentise market needs, as the requirements in urban and semi-urban areas is quite different from the highway market where the Corporation has a very strong presence. IndianOil launched a novel 'Check-and-Win' campaign in 49 major cities and towns, whereby motorists win prizes for checking the quality of fuel at ROs. About 2.62 lakh customers have already carried out checks across 12 cities, with no product failures reported.

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46

47

PIONEERING EFFORTS IN INDIA: IndianOil FIRSTS Hydrant Refueling System at Mumbai State-of-the-art LPG Import Facility at Kandla with Cryogenic Storage Mounded Storage for LPG and Automatic Electronic Filling System at Madurai LPG Bottling Plant Mobile LPG Bottling Rural Marketing of LPG by Mobile LPG Filling Truck introduced by Chief Minister of Tamil Nadu in Thanjavur on 18th May 1997. The second such Rural Marketing Vehicle (RMV) was launched in Allahabad District of Uttar Pradesh during December 1998. As of April 1999, both RMVs are catering to over 17,800 customers. Each RMV, with a Storage Vessel of 5T capacity, has 2 filling machines at 15 m safety distance. Equipment for quality control check and rollable fencing. First oil marketing company in India to get ISO-9002 certification for Aviation Services, Lube Blending Plants, Quality Control Labs, and R&D Centre.

Major projects

Joint ventures

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Name of JV

Date of Promoters Incorp'tn Equity

&

Area(s) of Operation To blend, manufacture and sell synthetic, semi synthetic and mineral based lubricating oils, greases and hydraulic fluids, related products and specialities for Defence and Civil Aviation uses. To build and operate terminalling services for petroleum products. To manufacture and market chemicals for use as additives in fuels, lubricants and greases.

Avi Oil 04.11.1993 India Limited

IOC: 25% Balmer Lawrie: 25% NYCO SA, France: 50%

Indian Oiltanking Limited

28.08.1996

IOC: 50% Oiltanking GmbH: 50%

Lubrizol India Existing Co. IOC: 50% Private Limited restructured Lubrizol Corp, w.e.f. USA: 50% 01.04.2000 IndianOil 03.12.1998 Petronas Private Limited Petronet Limited

IOC: 50% To construct and import Petronas, facilities for LPG import at Malaysia: 50% Haldia and to engage in parallel marketing of LPG.

LNG 02.04.1998 IOC, BPC, Development of facilities for GAIL,ONGC: import and regasification of 12.5% each, LNG at Dahej and Kochi. Gaz de France International : 10%, Asian Development Bank :5.2%, Public Issue : 34.8% To implement Petroleum Products, Pipeline projects through Special Purpose Vehicles.

Petronet India 26.05.1997 IOC, BPC, Limited (PIL) HPC:16% each, RPL, IL&FS, ICICI, SBI, EOL: 10% each, IBP: 02% Petronet Limited VK 21.05.1998 IOC, PIL: 26% each, RPL, EOL: 13% each, SBI, KPT,

To construct and operate a pipeline for transportation of petroleum products from Vadinar to Kandla.

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GIIC,IL&FS: 05% each, CB: 02% IndianOil Panipat Power Consortium Limited Petronet Limited 06.10.1999 IOC: 50% MC: 50% To build own and operate power generation plant at Panipat and to sell power to Haryana Vidyut Prasaran Nigam Ltd.

CI 07.12.2000

IOC, PIL, RPL: To construct and operate a 26% each pipeline for evacuation of EOL, BPC: petroleum products from RPL 11% each and EOL refineries at Jamnagar as well as from Gujarat Refinery at Koyali to feed the consumption zones at Central India.

BPC - Bharat Petroleum Corporation Ltd., EOL Essar Oil Ltd.; GAIL GAIL (IndianOil Litd., HPC Hindustan Petroleum Corporation Ltd., IL&FS Infrastructure Leasing & Financial Services ltd., IOC Indian Oil Corporation Ltd., KPT Kandla Port Trust ONGC Oil & Natural gas Corporation Ltd., PIL Petronet India Ltd., RPL Reliance Petroleum Ltd., SBI State Bank of India, GIIC Gujarat Industry Investment Corporation, CB Canara Bank, MC Marubeni Corporation, Japan

GULF OIL COMPANY(HINDUJA GROUP COMPANY)

50

51

The lubricant industry is growing at a tremendous rate and with international auto giants entering the Indian market the need for high quality lubricants will increase exponentially. A pioneer in the lubricant industry, Gulf Oil India is one of the largest private, comprehensive lubricant manufacturers in India. Its product range encompasses the entire spectrum of light and heavy vehicles, from:

Two wheelers to Cars LCV's to Trucks Tractors to Earthmovers Industrial to Defence Machinery equipment's & Railways Ships to Airplanes

Technology A 75000 tonnes p.a., ISO 9002 certified, completely computerised facility in Silvassa acquires specially selected and imported European base stocks and tailor-made performance additives developed at the Gulf Oil Research Laboratories in USA and Europe for blending and filling. The fully equipped laboratory with internationally trained and experienced chemists conducts over 1200 tests every day to guarantee final product performance. Specially built programmable logical control systems, aided by imported French-made software, ensures precise control of the finished product properties. Quality Quality through unswerving customer satisfaction has been Gulf's strong suit. Change is important and the ISO certified company continuously upgrades its quality by introducing products developed with newer

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technology. Marketing-Customised Solution Gulf's vast industrial product range covers every application known to man - from water-dissolving cutting oil and high temperature grease to fireresistant hydraulic fluids. In fact, it is likely that everything you use has been processed on machinery touched by Gulf Oil. Network Gulf Oil started operations in 1993 with a distribution network of approximately 600 dealers and 54 stockists in the West Zone. Today, this distribution network has morphed into gigantic operation covering 120 exclusive Gulf Shoppes, 85 depots, over 1200 dealers and 18000 retail outlets, and the count is rapidly increasing Update Shareholders have recently approved Gulf Oil India's merger with IDL Industries Ltd. in a 2:1 swap ratio. This merger will enable the Hinduja Group consolidate its position in the Indian chemical segment and give it better synergies and a larger network for both domestic and international marketing.

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Health, Safety, Security and Environment Our policy builds on the high standards inherent within our company, and reinforces our commitment to the continuous improvement of Health, Safety, Security and Environmental Performance in all our activities. GGCL is an ISO 9000 : 2000, ISO 14001 and OHSAS 180001 certified company. GGCL has won the following awards

BG Group Chairman's Award 4 times since 2000 for excellent performance in HSSE Gujarat Safety Council Award for Lowest Disabling Injury Rate for the year 2002. National Safety Council Council's Pransha Patra for the year 2003

HSSE Policy Safety First

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YOU CAN EXPECT FROM G.G.C.L. (1) You Rely on Pipeline Gas : - You will have over 99.99% uninterrupted gas supply. - Prior notification in case of supply interruption. (except in Emergencies). - Gas supply will be restored the same day (Except in Emergencies). (2) You Expect Safety : - We recommend you call us to check your pipeline installation annually, if it is not checked. - Emergency phone line is manned 24 hours everyday - Call 1915 - Emergency teams are on alert 24 hours everyday and will arrive within one hour. - All offices are equipped with hot lines & wireless. - All vehicles are equipped with wireless (3) You expect courteous, friendly service : We aim to provide prompt, efficient, courteous & useful services to ensure your satisfaction. Below are our standards of service which we aim to achieve. STANDARDS OF SERVICE Safety Instructions DO'S 1.Keep "Gas Tap" closed when Gas is not being used DONT'S 1. Don't handle or adjust critical equipment on your own in the Gas Line i.e. Regulator, Meter etc. call GGCL for any problem. 2. Don't use cracked rubber tube; if it is cracked, ask GGCL for replacement. 3. Don't keep hot utensils near the rubber tube. 4. Don't make any changes in plumbing work which has been carried out by GGCL. If any changes is required contact GGCL only. 55

2. If the premises is to remain closed for more than a day, shut off control valve. 3. Gas leakage should be brought to the notice of GGCL immediately. 4. On leakage, immediately close control valve, open doors and windows and inform GGCL.

5. Keep children away from all Gas equipments.

5. Don't operate electric switches, fridge, mixer etc.; Let them remain in "As it is" position in case you smell Gas.

GAIL clinches NPMP award for DVPL GAIL (India) Limited has received the coveted NPMP award in recognition of excellence in Enterprise Category for Dahej-Vijaipur Pipeline Project. Shri S P Rao, Director (Projects), GAIL received this award from Shri Mani Shankar Aiyar, Hon'ble Minister of Petroleum and Natural Gas in presence of Shri Proshanto Banerjee, Chairman and Managing Director, GAIL. GAIL has completed the Dahej- Vijaipur Pipeline Project in a record period of 27 months. The Project was completed six months ahead of schedule, resulting into a cost saving of Rs. 736.37 crore. This is the largest diameter cross country onshore pipeline for transportation of high pressure gas so far executed in India. The total approved cost of the project was Rs. 2936 crore. The pipeline passes through Gujarat and Madhya Pradesh.

Global Recognition

Platts declares GAIL as first among Global Gas Utilities based on Return on Invested Capital (ROIC) in its Worldwide Survey of Top 250 Energy Companies in 2004. GAIL joins Top 10 Club of Global Energy Companies based on Return on Invested Capital (ROIC) in Platts Worldwide Survey of Top 250 Energy Companies in 2004

Standing Tall among India Inc

ET 500 ranks GAIL among Top 10 Indian Companies

The Glow of a Navratna Public Enterprises Survey 2002-03* ranks GAIL's performance

9th in terms of Turnover 56

5th in terms of Pre-Tax Profits 4th in terms of Net Profit 10th in terms of Gross Block 7th in terms of Improvement in Performance

* Survey conducted by Department of Public Enterprises, Ministry of Heavy Industries & Public Enterprises

The use of compressed natural gas (CNG) in vehicles has led to considerable reduction in air pollution as is evident from the following data: A. Autorickshaw - Three wheelers: (Emission in gram/Km) Bajaj Three wheeler Pollutants Petrol CNG % Reduction HC CO CO2 NOx 3.26 5.48 0.25 1.26 63.19 1.57 71.35 0.20 20.00

47.44 27.60 41.82

HC:Hydrocarbons CO: Carbon Mono oxide CO2: Carbon di oxide NOx: Nitrogen oxides Source: Bajaj Auto Limited B. Passenger Cars: (Emission in gram/Km) Pollutants Petrol CNG % Reduction Maruti Omni Maruti Gypsy CO HC CO HC Premier Padmini CO HC Premier 118NE CO 19.79 .55 1.14 4.94 1.86 2.83 15.6 97 1.02 11 0.59 88 1.42 24 2.03 28 2.04 87

18.38 0.94 95

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HC Ambassador CO HC

2.57 6.37

1.92 25 4.33 32

52.16 0.78 98

Source: Indraprastha Gas Limited, GAIL (India) Limited C. Diesel Buses: Pollutants Ashok Leyland HC CO NOx % Reduction by use of CNG over diesel 16.67 19.37 41.77

Particulate Matter 97.68 Source: Ashok Leyland Limited

Air pollution has direct impact on climate change, the major pollutants being Greenhouse gases: Carbon Dioxide, Methane, Chloro Fluoro Carbons (CFCs) and Nitrous Oxide. These gases allow sunlight to come in but block some of the infrared radiation (carrying heat back into the atmosphere) from leaving the earth's surface. This leads to development of concentrated heat zones on the earth surface. Development of concentrated heat zones causes turbulence in air currents and ocean currents leading to increased precipitation, floods, storms, cyclones and droughts, frequently witnessed phenomena in recent years. Carbon Dioxide is the most prominent Greenhouse gas. The concentration of CO2 has increased by over 20 per cent post-industrial revolution. While the United States is the largest producer of global CO2 emissions (23%), India's share is relatively lower at 4%. Particulate matters in the atmosphere also contribute to climate changes. Among particulate matters, black carbon has a warming effect while nitrates and sulphates have a cooling effect on the climate. However, higher concentration of nitrates and sulphates shields the effect of particulate matters on climate change. Natural gas is one of the cleanest conventional fuels, which can help improve the quality of air, especially when used in place of other more polluting energy sources. Natural gas combustion results in virtually no atmospheric emissions of sulphur dioxide or small particulate matter, and far lower emissions of carbon monoxide, reactive hydrocarbons, nitrogen oxides and carbon dioxide.

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The two principal air pollution issues are acid rain and carbon monoxide (CO)/ozone pollution levels. Reducing high ozone pollution levels in urban areas requires the reduction of reactive hydrocarbons and sometimes nitrogen oxide emissions. Besides being a contributor to ozone formation, CO is a health hazard. All these pollutants are released into the atmosphere by the combustion of some fossil fuels in stationary sources such as industrial boilers and power plants, and in automobiles. Natural gas is the solution to these pollution problems. Advanced natural gas-fuelled vehicles have the potential to reduce carbon monoxide emissions by 90 per cent and reactive hydrocarbon emissions by 85 per cent compared with gasoline vehicles. It is also possible to burn natural gas simultaneously with less environment-attractive fuels. Source:IEA

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GAIL (India) Limited

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LPG - Liquefied petroleum gas LPG is the abbreviation or short form for liquefied petroleum gas. Like all fossil fuels, it is a non-renewable source of energy. It is extracted from crude oil and natural gas. The main composition of LPG are hydrocarbons containing three or four carbon atoms. The normal components of LPG thus, are propane (C 3H8) and butane (C4H10). Small concentrations of other hydrocarbons may also be present. Depending on the source of the LPG and how it has been produced, components other than hydrocarbons may also be present. LPG is a gas at atmospheric pressure and normal ambient temperatures, but it can be liquefied when moderate pressure is applied or when the temperature is sufficiently reduced. It can be easily condensed, packaged, stored and utilized, which makes it an ideal energy source for a wide range of applications. Normally, the gas is stored in liquid form under pressure in a steel container, cylinder or tank. The pressure inside the container will depend on the type of LPG (commercial butane or commercial propane) and the outside temperature. When you start using LPG, some of the pressure in the container is released. Some of the liquid LPG then boils to produce vapour. Heat is needed to convert the liquid to vapour (known as the latent heat of vaporization). As the liquid boils, it draws the heat energy from its surroundings. This explains why containers feel cold to touch and why, if there is a heavy off-take, water or ice may appear on the container. When you stop using LPG, the pressure will return to the equilibrium value for the surrounding temperature. The pressure of the LPG in the container varies with the surrounding temperature. It is also much higher than is needed by the appliances that use it; it needs to be controlled to ensure a steady supply at constant pressure. This is done by a regulator, which limits the pressure to suit the appliance that is being fuelled. It is a colourless and odourless gas to which foul-smelling mercaptan is added so that leak can be easily detected. LPG is highly inflammable and must therefore be stored away from sources of ignition and in a well-ventilated area, so that any leak can disperse safely. Another reason why care should be taken during storage is that LPG vapour is heavier than air, so any leakage will sink to the ground and accumulate in low lying areas and may be difficult to disperse. LPG expands rapidly when its temperature rises. So whenever a container is filled, sufficient space is left to allow for such expansion. LPG will cause natural rubber and some plastics to deteriorate. This is why only hoses and other equipment specifically designed for LPG should be used. Although LPG is non-toxic, its abuse (like that of solvents) is highly dangerous. LPG should always be treated with respect and kept away from children whenever possible.

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Liquid petroleum gases were discovered in 1912 when Dr. Walter Snelling, an American scientist, realized that these gases could be changed into liquids and stored under moderate pressure. From 1912 and 1920, LP-gas uses were developed. The first LPG cook stove was made in 1912, and the first LPG -fueled car was developed in 1913. The LPG industry began sometime shortly before World War I. At that time, a problem in the natural gas distribution process popped up. Gradually facilities were built to cool and compress natural gas, and to separate the gases that could be turned into liquids (including propane and butane). LPG was sold commercially by 1920.

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CONSERVATION OF PETROLEUM PRODUCTS Oil and gas conservation means their better and more efficient use with regard to economic, social or environmental costs and benefits, resulting in attainment of higher energy use efficiencies, minimization of wasteful practices and wastage and protection of the environment. 2. Despite discovery of new sources of unconventional energy and due to existing inadequacies in supply of other forms of commercial energy relative to demand, petroleum remains the primary energy source in India and a preferred swing fuel. Its consumption has been increasing at a very steep rate from 3.5 MMT in 1950-51 to 84.3 MMT in 1997-98 and projected to reach 130 MMT in 2001-02 and 175 MMT in 2006-07. 3. Out of the known Indian reserves of 660 MMT of Crude Oil and 648 Billion Cubic Metres of Natural Gas, only a part may be technically and economically feasible to exploit. This fact, coupled with the present and expected consumption rates implies that these reserves may not last even 10 years. Our present indigenous production is only 33 MMT and is less than 50% of our annual requirement. Therefore, the Government attaches high priority to minimizing the gaps between indigenous production and consumption of petroleum products. The need of the hour is to conserve petroleum by its judicious use, substituting it by other resources wherever feasible and restricting its use only to the essential needs. 4. Various steps are being taken to promote conservation of petroleum products in the following areas. The following specific activities are taken up from time to time.

IN HOUSE CONSERVATION IN UPSTREAM AND REFINING SECTORS Effective and result-oriented conservation methods adopted by the upstream undertakings in the oil sector include reduction of gas flaring by re-injection of gas to underground reservoir, installation of waste heat recovery systems, utilization of non-conventional energy sources and close monitoring of all 63

conservation efforts by ONGC and OIL. Energy audits, efficiency upgradation of equipment and appliances; substitution of diesel with Natural Gas, deployment of solar-powered illumination panel, battery operated vehicles, Bio-gas etc., are other steps taken. The oil refineries implement various schemes like revamp and replacement of low efficiency furnaces and boilers, installation of heat exchangers, economizers and co-generation equipment, and adoption of improved house keeping practices. They benchmark energy consumption levels with international pacesetters for improvement. They also implement ENCON (Energy Conservation) schemes like heat integration and technology upgradation for yield-energy optimization, vapour recovery system to arrest the avoidable escape of gases through flare, tank seal etc. In addition, they have implemented an Action Plan to produce and sell high grade lubricants to the extent of about 2.5 lakh tonnes per year to replace the lubricants of lower efficiency, in a phased manner and constantly upgrade lubricants in line with the international developments meeting Euro Standards. Multi-grade railroad engine oils with diesel saving potential have been developed for introduction in Indian Railways. (D) Although transport losses are inevitable while moving the petroleum products by import tankers and coastal tankers over sea routes and at ports of unloading, a number of steps taken by the Ministry to keep the loss down to the lowest level have led to a progressive reduction. 6. PETROLEUM CONSERVATION RESEARCH ASSOCIATION (PCRA) AND ITS ACTIVITIES As a part of the Governments response to the oil crisis of early seventies, the PCRA was set up in 1976 to undertake studies to identify the potential and to make recommendations for achieving conservation of petroleum products in various sectors of the economy. It sponsors R&D activities for the development of fuel-efficient equipment / devices and organizes multi-media campaigns for creating mass awareness for the conservation of petroleum products. Fuel oil utilization studies, energy audits, boiler modernization scheme, introduction of equipment bank concept, use of energy vans, development of oil consumption norms, model depot projects, driver training programs, demonstration clinics/ workshops/ exhibitions, consumer meets, education films/TV spots, hoarding/ electronic display, distribution of printed literature, R&D projects are other activities. 6.1 MULTI MEDIA MASS AWARENESS PROGRAMME Multi-media campaigns to create mass awareness about the need for conserving petroleum products and motivating users to take concrete steps to actually

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conserve are undertaken by PCRA and the Oil Marketing Companies through various media such as TV, Radio, Press, printed literature, outdoor publicity. Extensive use of Publicity Van of the Government Field Publicity Department of the States is made for increasing the reach amongst the consumers in the semiurban and rural segments. 6.2 OIL CONSERVATION FORTNIGHT (OCF) The success of the first Oil Conservation Week (OCW) organized in January, 1991 has led to its continuance in the subsequent years and finally, an extension to Oil Conservation Fortnights (OCF) from 1997. These are organized by the entire Oil Sector in close coordination with the concerned Ministries / Departments of the Union and State Governments, Public Sector Undertakings, Chamber of Commerce etc., with PCRA acting as the nodal coordinating agency. Mass awareness and educational programmes and various sectoral activities are undertaken. Inaugural functions are presided over by dignitaries such as Union Ministers, Governors, Chief Ministers, etc. and the Fortnight ends with a Valedictory function in every State. 6.3 END USERS OF PETROLEUM PRODUCTS AND CONSERVATION EFFORTS In addition to the activities of PCRA detailed above, sectoral conservation steps taken by it are as follows: TRANSPORT SECTOR Adoption of practices conducive to increased fuel-efficiency TRAINING PROGRAMMES

INDUSTRIAL SECTOR Replacement of old and inefficient boilers, furnaces and other oil-operated equipment with efficient ones Promotion of fuel-efficient practices and equipment. AGRICULTURAL SECTOR Standardization of fuel-efficient irrigation pumpsets

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Rectification of existing pumpsets to make them more energy efficient HOUSEHOLD SECTOR Development as well as promotion of the use of fuel-efficient equipment and appliances like kerosene and LPG stoves Action Group meetings and adoption of States has been introduced to give further impetus to the oil conservation movement and for focussed attention at the State level. 6.4 R&D PROJECTS (i) RECOVERY OF KEROSENE IN TEXTILE PRINTING In view of the large-scale losses of kerosene used in the drying section of the textile pigment-printing machine, an R&D project was successfully commissioned to recover kerosene vapors. Under this project at one plant 180 KL of kerosene worth Rs. 14.4 lakhs is being recovered and recycled per annum. The technology developed is being promoted in the textile sector. (ii) BATTERY OPERATED VEHICLES (BOVs) Battery operated vehicles around Taj Mahal area run by Agra Development Authority (ADA) have operated satisfactorily for the last six years leading to a savings in diesel and reduction in pollution. To provide thrust and to promote the operation of BOVs, PCRA has sponsored two BOVs to be operated by Airline Authorities at IGI Airport for transportation of passengers from terminal to Aircraft and back as a demonstration project. Moreover, to encourage and support the operation of BOVs on a larger scale a subsidy of Rs. 1 lakh per BOV is being provided by PCRA, in addition to the subsidy (upto 50% of the cost of vehicle) being provided by MNES. (iii) SYNCHRONIZATION OF TRAFFIC SIGNALS A study undertaken at Delhi in 1996 revealed a wastage per day of petrol and diesel of 3 lakh and 1 lakh litres respectively by vehicles while waiting for green signal at the traffic intersections, amounting to a financial loss of Rs. 246 crores per annum. The study brought out a scope for MS & HSD saving by synchronization of traffic signals and reducing the waiting period for the vehicles. To demonstrate, projects in 5 cities viz. Delhi, Calcutta, Pune, Bangalore and Chennai were taken up for synchronization. Project at Calcutta has since been successfully completed with the result that City and State administration, Traffic Police, PWD etc. are convinced about benefits of synchronization of traffic signals. Projects in other towns are in advanced stage of completion.

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6.5 FURTHER TIPS FOR CONSERVATION TO BE TAKEN BY INDIVIDUALS (A) CONSERVATION AT HOME Customers are recommended a switchover to Nutan gas stove or Nutan wick stove developed by Indian Oil and aimed at fuel conservation While cooking use wide bottom vessels with covers Allow food articles taken out of the refrigerators to attain room temperature before cooking them Soak cereals and dals for sometime before cooking them to reduce the cooking time as well as the fuel consumption. Use just sufficient water for cooking Pressure cookers used with separators lead to substantial fuel saving. Reduce flame by bringing the burner knob to the simmer position as soon as the water starts boiling Try to eat together to avoid repeated warming of food. This not only saves fuel but also preserves the nutritional value of food Light the flame only after all preparations have been made and the vessel is ready to be put on the stove. Use hot water from solar water heaters for cooking if the facility is available Try to use a solar cooker, if facility and time permit In the rural sector, use of gobar gas plants, would be an excellent fuel conservation technique If feasible, the use of electric hot plates could also be a fuel-saving tip. (B) KEROSENE FOR ILLUMINATION Switch-over to Nutan Hurricane Lanterns developed by Indian Oil both for better illumination & fuel conservation is recommended The use of electric lamps or solar lanterns, if feasible. (C) CONSERVATION ON ROADS

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The first rule of fuel conservation would be to travel judiciously and curtail wasteful driving Wherever possible/ available and convenient, use public transport instead of using personal transport Matching the size of the vehicle to your need would also go a long way in conserving fuel. For instance if you have the option of a personal car and a scooter, then use the scooter when only two persons have to travel, and the car if more persons have to travel or heavy luggage needs to be transported. Car pooling to work will not only conserve fuel but will also improve social relations with your colleagues Following traffic signals will help avoid traffic jams and reduce lower gear driving and idling. As far as possible, avoid idling the vehicle, be it a car, scooter or any other mechanized transport. The criteria for choosing the vehicle you are going to buy should be its fuel efficiency. There is no substitute for timely attention, servicing and tuning of the vehicle in fuel conservation and emission control. This should include checking of injectors and spark plugs, correct tyre pressure, re-greasing, topping up or renewal of lubricants for engine and gear boxes. The use of quality lubricant is extremely important. There should not be any compromise on this aspect. Correct driving habits are important for conservation. Try to avoid sudden speeding, braking & stopping, clutch riding, idling, over- speeding, and overloading Have your vehicle checked for emission control regularly not only because defaulters are fined, but because it leads to fuel conservation and pollution control, which as citizens of India, is our moral duty. It is time we inculcate these measures to become a part of our daily routines. Only by practising and preaching these conservation tips can we think of future progress. Given the difficult times ahead, it becomes our responsibility to spread this awareness, particularly amongst it the youth who will be citizens of tomorrow. Good habits taught early will salvage the oil shortage to a great extent. 7. ROLE OF OIL INDUSTRY TO PROMOTE OIL CONSERVATION

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7.1 Soft loan and subsidies are given by Oil Industry (OIDB) for conducting energy audits, purchase of energy audit equipments/ instruments, upgradation of maintenance facilities at garage, LIP rectification, foot valve replacement, upgradation of testing facilities to foot valve manufacturers for promoting oil conservation. 7.2 The Oil Industry is also promoting the use of alternate sources of energy to the maximum extent possible. Many petrol pumps are provided with SPV system. Some Oil Company colonies have solar water heaters, solar cookers, solar lanterns, gobar gas plants, improved choolhas, efficient kerosene stoves & lanterns. In some select villages in the districts of Solan, Sultanpur and Jaisalmer Wind mills are also being considered. All these will act as stimuli for other to emulate. Petroleum Conservation, then becomes our joint responsibility be it the industries, individual citizens, organizations, Oil Companies or the Government. Each one of us has a specific and significant role to play. 8. INTER FUEL SUBSTITUTION 8.1 COMPRESSED NATURAL GAS (CNG) Compressed Natural Gas (CNG) is used as a fuel in transport sector in many countries. It is a safe, clean burning and environment friendly fuel. It has been established that exhaust emissions like hydrocarbons and carbon monoxide are significantly reduced as compared to other fuels. Toxic emissions such as lead and sulphur are completely eliminated. Existing petrol vehicles can use CNG by fitting a conversion kit. The CNG converted vehicles have the flexibility of operating either on petrol or on CNG. An experimental programme to use CNG as fuel in transport sector in the country was initiated by GAIL in 1992, whereby CNG was made available in Delhi, Mumbai and Baroda. The supply of CNG in Mumbai and Delhi are managed by two joint ventures viz. Mahanagar Gas Nigam Ltd. and Indraprastha Gas Limited respectively and in Surat and Ankleshwar, by a private company. The average cost of converting a petrol car to CNG is about Rs.35,000. There are over 10,000 CNG converted Petrol vehicles in Mumbai and over 3000 such vehicles in Delhi. 11 buses of DTC are running on CNG in Delhi, with 2 existing diesel buses converted to CNG on trial basis. CNG dispensing retail outlets on mother-daughter concept as well as online dispensing units have been set up in Delhi. Under the former system, Natural Gas is compressed and filled into truck mounted cascades (basket of cylinders) in the mother compressor station and transported to daughter units for dispensing to CNG vehicle. The mother station initially set up in Ghaziabad has been re-located and brought near to Delhi at Sarai Kale Khan, in May97. At

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present there are seven daughter and four on-line dispensing retail outlets in Delhi. Further expansion of the infrastructural network to 80 CNG outlets is proposed by March 2000. The process of acquiring land sites to set up the required number of outlets is going on. 8.2 FEASIBILITY OF ETHANOL/METHANOL AS AUTOMOTIVE FUEL Exploration of the feasibility of using alcohol-blended fuel has also received attention in this Ministry. Recommendations of Technical Committee studying this issue have testified to the safe usage of blended alcohol upto 6% with gasoline which does not require any modification of engine design, the only stipulation being that the alcohol should be of anhydrous variety. Consideration of the use of this fuel is still in progress. 8.3 USE OF LPG AS AUTOMOTIVE FUEL LPG is recognized as superior fuel to petrol and diesel in terms of the vehicular emissions. To abate pollution caused by vehicles, a number of countries in the World have been using LPG as auto fuel for more than last 30 years. In India, the use of LPG as auto fuel has been prohibited by Motor Vehicles Act and LPG Control Order, 1974. With the liberalization in the marketing of LPG initiated in 1993 by decanalizing the import of LPG and introduction of parallel marketing of LPG, a number of private sector including multinationals have started making investment in the development of infrastructure for import of LPG and its marketing. The availability of LPG from the public sector as well as private sector has also been increasing through indigenous production as well as imports. In order to take further actions relating to amendment of the Acts/Rules/Control Order, an Expert Committee was constituted. Taking into account the recommendations of the Committee, the concerned Ministries and Departments are in the process of making necessary amendments. 9. STEPS TAKEN BY THE MINISTRY ON ENVIRONMENTAL ISSUES 9.1 UPGRADATION OF FUEL QUALITY (A) INTRODUCTION OF UNLEADED PETROL In pursuance of the need for reduction of environmental pollution due to emissions from vehicles, from April,1995 the Oil Companies have made available unleaded petrol in the in the city of Agra and the four metros of Delhi, Mumbai, Calcutta, Madras and radial routes emanating from these metros. Petrol with reduced lead content of 0.15g/ltr. (maximum) was made available all over the country from December, 1996. The availability of unleaded petrol was extended

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to Capitals of state and Union Territories by June, 1998 and would be extended to throughout the country by March 2000. (B) SUPPLY OF LOW SULPHUR HSD The sulphur in diesel has considerable potential to pollute the air and damage human health, especially with regard to respiratory disorders caused by high level of respirable particulate matter. Hence, Low Sulphur Diesel i.e., containing 0.5% sulphur by weight as against the normal proportion of 1% by weight was supplied w.e.f. April, 1996 in metros and Taj Trapezium. Supply of diesel with still further reduction of sulphur content upto only 0.25% by weight has been envisaged w.e.f. January 2000 in the entire country. It was, however, introduced in Taj Trapezium w.e.f. 1.9.1996 and in Delhi from 14.8.1997. An investment of Rs. 5600 crores has been made to set up a diesel hydro desulphurization plant in the country. A further reduction in the sulphur content to 0.05% in diesel in the National Capital Region w.e.f. April 2000 in compliance of Supreme Court orders to adopt Euro II norms in the country is contemplated in a phased manner. (C) SPECIFICATION OF 2-T OILS FOR 2-STROKE ENGINES To address the environmental issues relating to emissions from 2/3 wheelers, Synthetic 2-stroke engine oils meeting JASO, FC, Japan have been introduced w.e.f. 1.4.1999. These environment friendly oils reduce visible smoke and lead to fuel conservation. (D) RESTRICTIONS IN BENZENE CONTENT The benzene content in gasoline is to be restricted to a maximum of 3% by volume in metro cities and 5% by volume in other cities as required under the notification of the Central Pollution Control Board from the year 2000. In Delhi, this has already been implemented. (E) ADDITIONAL STEPS TAKEN IN DELHI Pre-mixed dispensers for supply of petrol to 2-stroke engine have been installed at all retail outlets of all Oil Marketing Companies by December 1998 and ban enforced on sale of loose 2T oils at petrol stations and service garages from that date. One Fuel Testing Laboratory (FTL) has been set up at Noida for monitoring fuel adulteration.

(vi) NATURAL GAS FOR INDUSTRIES Six lakh cubic metres of natural gas per day has been allocated for supply through pipelines to the industrial units in the area. Pipelines to Agra and

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Ferozabad are ready. Gas purchase agreements have already been signed with a number of industrial units in Ferozabad and Agra. Out of these units have already started using natural gas and fifty more would do so by Dec. 1999. The distribution of gas would be undertaken by a Joint Venture Company (JVC). Pending formation of JVC, GAIL has been implementing the project for setting up the distribution network in Agra and Ferozabad. However, the progress is conditional on the underpinning of the gas pipeline to the Yamuna River Bridge. 10. FUTURE THRUST AREAS To give added momentum to oil conservation efforts, there is an urgent need for an Integrated Energy Policy. This policy would include legislation on energy conservation, which makes energy audits mandatory for industries; energy labeling of equipments necessary and BIS standards mandatory. The old inefficient engines, equipment and processes that do not meet environmental standards must be scrapped under the policy. The Ministry of Power is working on this aspect.

PEST analysis of IOC (Indian Oil Corporation) Political and Legal factors Removal of regulation on foreign trade by delisting oil and gas company from restricted list given the oil and gas majors in India an opportunity to serve global customers. But it has also increased competition, as now global players are free to enter in India. This industry will see increased competition in India in near future. With the environment norms not being as stringent as the western countries, foreign companies are more likely to set up new manufacturing facilities in India. With the insufficient counter valley duties and duty free export and import from countries from Nepal will see dumping of plastic goods in India. This unless act upon by the government will means a decrease in demand for oil and gas which have derived demand for plastic industry. A reduction on custom duty will bring down the realization. A strong employment law is probably on factor that may deter foreign oil and gas manufacturer from setting up unit in India. Unstable governme5nt may also affect the disinvestment plan of industry like oil and gas.

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SOCIO-CULTURAL FACTORS Life style changes like demand for lighter automobiles had lead to increase the demand for oil and gas products and in probably a reason for high market growth rate. Again higher level of education had lead to demand for mineral water and other. This in turn has increased the demand for oil and gas which are derived demand.

Economical factor Oil and gas industry is one of the chief consumer of energy in India so energy conservation has been top priority issue for the perspective of reducing overall cost and also from point of view of national priority.

Technological factor Govt. has continuous emphasis on research and development of new technologies to develop processes, which are environmental friendly. In recent years this industry has a general trend of importing the technologies and them setting up manufacturing and marketing indigenously.

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SWOT Analysis of IOC (Indian Oil Corporation) Strengths Oil and Gas is a capital intensive industry. So it is impossible for new players to enter this market overnight. There are only a few major players in India i.e. it is more of a oligopolistic market. This is an industry where different export markets are available through competition is intense. Market growth rate of 12 to 13 % which is relatively high compared to world market growth rate of 5 to 6 %. Products of this industry have wide applications and these products have particularly no substitutes as of now. Specific infra structure requirements like vicinity of refinery, vicinity of other resources etc so it is not possible to set up new projects just anywhere. Long term relationships developed with both suppliers and buyers over a period of time.

Weakness It is not always possible to sell the entire production, as the demand may be low on depressed and hence high levels of inventory have to be maintained. This leads to high inventory carrying costs. Subject to cost push inflation; i.e. if cost of raw materials increase then to maintain margins cost of oil and gas are also increased.

Opportunities Do a lot of research and Development and develop friendly products to sell in global market. Sell products to global customers and achieve economies of scale by selling volumes i.e. companies are trying to transform themselves in global players. In India, huge potentials exist because oil and gas consumption is low. Value added products could be looked into as chemical industry has very diverse applications. Lowering of prices of raw material has led to substitution effect ; raw materials replacing the traditional packing materials a good opportunity for Indian oil corporation.

Threats

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As basic raw material is crude oil the increasing oil prices by OPEC countries adversely affects the industry. This industry has derived demand and so fall in demand of products made by ancillary units leads to a fall in demand for its products. Oil and Gas is a polluting industry and with increase in environment awareness throughout the world, it is likely to face serious opposition from environmental protection groups.

SWOT Analysis of BPCL Strengths BPCL has will-established network which forms companys backbone. The company has focused its business in oil and gas BPCL being a pioneer in these products in India, has tremendous goodwill in the market. BPCL has a large base of trained and experienced personnel who are well suited for this industry Company is financially sound.

Weakness It is a public sector undertaking and hence a typical beaurocratic structure where decisions get unnecessarily prolonged which is a disadvantage in present scenario. It is often said if you just sit, you might be runover . This might become a reality for BPCL as in last yeas, BPCL has not made capacity additions and hence it is vulnerable to a possible loss of economies of scale especially since other private sector players are expanding.

Opportunities With India moving into the WTO regime BPCL can take the advantage of growth taking place in domestic as well as exports markets. BPCL can increase its debt-equity ratio in future as allowable ratio in this industry is 4:1 and so can generate a lot of debt funds for future expansions.

Threats Opening up of market means that international players coming to India and eating away BPCLs market share 75

Insufficient Govt. protection means that foreign manufacturers will dump their products into Indian markets and hence a fall in demand of BPCLs market share.

SWOT Analysis of HPCL Strengths Project implementation is done on time and according to the scheduled plan. So there are no costs overruns. Cost of production is kept in check and other costs are also kept under check. So only optimum cost is incurred HPCL has a large capacities and industry size does matter this is one industry where small is not beautiful. HPCL has capability of integrating both forward and backward as and when needed.

Weakness Highly diversified business. In such case, focus can be lost i.e. trying bite more than one chew HPCL has very large manpower i.e. it is facing a problem of over employment.

Opportunities Lowering of excise duty from 24.5 to 16% has led to substation of traditional packaging materials In this industry lowering of prices leads to increase in demand and so low prices of polymers has given additional impetus to demand. HPCL with its huge capacities can take advantage of this factor. Growing domestic and international markets.

Threats

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Overseas oil and gas players mainly from middle east and asia pacific region setting up manufacturing gases in India leading to increased competition. Dumping of products especially plastics by foreign companies. Cheaper imports can pose a threat to HPCL

BIBLIOGRAPHY (1) www.google.com (2) www.essaroil.com (3) www.relianceindustries.com (4) www.gujaratgas.com (5) www.ongc.com (6) www.bpcl.com (7) www.hpcl.com (8) www.ibp.com (9) www.ioc.com

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