A PROJECT ON:

CSR INITIATIVE OF INDIAN OIL CORPORATION

A Project Submitted to
UNIVERSITY OF MUMBAI FOR PARTIAL COMPLETION OF THE DEGREE OF
BACHELORS OF MANAGEMENT Studies
Under The Faculty of Commerce

SUBMITTED BY:
KHAN SAAD SHAHID

Under The Guidance of

Prof. Mariam Masani
Clara’s college of commerce
Yari Rd, versova, Mumbai 400061

March 2023

1
 A PROJECT ON:
CSR INITIATIVE OF INDIAN OIL CORPORATION

A Project Submitted to
UNIVERSITY OF MUMBAI FOR PARTIAL COMPLETION OF THE DEGREE OF
BACHELORS OF MANAGEMENT Studies
Under The Faculty of Commerce

SUBMITTED BY:
KHAN SAAD SHAHID

Under The Guidance of

Prof. Mariam Masani
Clara’s college of commerce
Yari Rd, versova, Mumbai 400061

March 2023

2
 DECLARATION

I the undersigned MR. SAAD SHAHID KHAN here by,declare that the work embodied in this project work
titled CSR INITIATIVES OF INDIAN OIL CORPORATION , forms my own contribution to the
research work carried out under the guidance of MARIAM MASANI is a result of my own research work
and has not been previously submitted to any other University for any other Degree/ Diploma to this or any
other University.

Wherever reference has been made to previous works of others, it has been clearly indicated as such and
included in the bibliography.

I, here by further declare that all information of this document has been obtained and presented in
accordance with academic rules and ethical conduct.

Name and Signature of the learner

Certified by
Name and Signature of the Guiding Teacher

3
 CERTIFICATE

This is to certify that Mr SAAD SHAHID KHAN has worked and duly completed her/his Project Work for
the degree of Bachelor of Management Studies under the Faculty of Commerce the subject of Marketing and
his project is entitled, CSR INITIATIVES OF INDIAN OIL CORPORATION Title of the Project under my
supervision.

I further certify that the entire work has been done by the learner under my guidance and that no part of it
has been submitted previously for any Degree or Diploma of any University.

It is her his own work and facts reported by her/his personal findings and investigations.

Name and Signature of

Guiding teacher

Date of Submission :

4
 ACKNOWLEDGMENT

To list who all have helped me is difficult because they are so numerous and the depth is so enormous.

I would like to acknowledge the following as being idealistic channels and fresh dimensions in the
completion of this project.

I take this opportunity to thank the University of Mumbai for giving me chance to do this project.

I would like to thank my Principal ,Dr Madhukar required for completion of this project.
for providing the necessary facilities

I take this opportunity to thank our Coordinator Prof Amit bansod support and guidance.
for her moral

I would also like to express my sincere gratitude towards my project guide Prof Mariam Masani whose
guidance and care made the project successful.

I would like to thank my College library , for having provided various reference books and magazines
related to my project.

Lastly, I would like to thank each and every person who directly or indirectly helped me in the completion of
the project especially my Parents and Peers who supported me throughout my project.

5
6
 SR CONTENT Page
No No

Chapter 1: Introduction 7-37

1.1 Meaning

1.2 History

1.3 Company profile

1.4 Aviation fuel

1.5 Operation

1.6 Pipelines Marketing & RD

1.7 Cryogenic

1.8 Foreign subsidiaries

1.9 Facility location and layout

Chapter 2: Research Methodology 38-43

2.1 Objectives

2.2 Significance

2.3 Limitations

Chapter 3: Literature Review 44-47

3.1 Literature review

4 Data Analysis And Interpretation 48-56

5 Conclusion 64

6 Suggestion 65

Bibliography 66

7
8
 CHAPTER 1: INTRODUCTION

1.1 MEANING

The new concept of Corporate Social Responsibility has been introduced by the Companies Act, 2013.
Under the erstwhile Companies Act, there was no concept of Corporate Social Responsibility. The new
concept of Corporate Social Responsibility has been introduced under section 135 of the Companies Act,
2013 and Companies (Corporate Social Responsibility) rules, 2014. India is the first country in the world to
introduce statutory Corporate Social Responsibility (CSR) through the new Companies Act, 2013. Prior to
this landmark development, CSR was not a new concept in India and can be traced with historic pieces of
evidence.

While doing web search about CSR and CSR policies apparently one feels that lot many things have been
done in foreign countries and India has borrowed the concept from the foreign countries. But the fact is that
the concept of CSR has existed in ancient India and our ancient wisdom has framed a platform for CSR and
the proud moment is such ancient wisdom has given direction to the corporate houses and industries. Our
rich ancient knowledge and tradition is the very basis of modern corporate level CSR practices. The origin of
CSR can be traced from our Upanishads, Puranas and Vedic literature like Ramayana, Mahabharata, and
Bhagavad-Gita. As is common wisdom, Indian companies have been engaged in CSR/charity/philanthropy
since time immemorial.

The Indian Oil Corporation Ltd. operates as the largest company in India in terms of turnover and is the only
Indian company to rank in the Fortune "Global 500" listing. The oil concern is administratively controlled by
India's Ministry of Petroleum and Natural Gas, a government entity that owns just over 90 percent of the
firm. Since 1959, this refining, marketing, and international trading company served the Indian state with the
important task of reducing India's dependence on foreign oil and thus conserving valuable foreign exchange.
That changed in April 2002, however, when the Indian government deregulated its petroleum industry and
ended Indian Oil's monopoly on crude oil imports. The firm owns and operates seven of the 17 refineries in
India, controlling nearly 40 percent of the country's refining capacity.

9
 1.2 HISTORY

IndianOil began operation in 1959 as Indian Oil Company Ltd. The Indian Oil Corporation was formed in
1964, with the merger of Indian Refineries Ltd. IndianOil and its subsidiary (CPCL) account for over 49%
petroleum products market share, 31% national refining capacity and 71% downstream sector pipelines
capacity in India.

The IndianOil Group of companies owns and operates 10 of India's 22 refineries with a combined refining
capacity of 65.7 million metric tones per annum (MMTPA, i.e. 1.30 million barrels per day approx.).
IndianOil's cross-country network of crude oil and product pipelines spans 10,909 km with a capacity of
75.55 MMTPA of crude oil and petroleum products and 10 MMSCMD of gas. This network is the largest in
the country and meets the vital energy needs of the consumers in an efficient, economical and environment-
friendly manner.

It has a portfolio of powerful and much-loved energy brands that includes Indane LPGas, SERVO lubricants,
XtraPremium petrol, XtraMile diesel, PROPEL & petrochemicals, etc. Validating the trust of 66.8 million
households, Indane has earned the coveted status of Super-brand in the year 2009.

IndianOil has a keen customer focus and a formidable network of customer touch-points dotting the
landscape across urban and rural India. It has 20,575 petrol and diesel stations, including 4,225 Kisan Seva
Kendras (KSKs) in the rural markets. With a countrywide network of over 38,000 sales points, backed for
supplies by 139 bulk storage terminals and depots, 3,960 SKO/LDO dealers (60% of the industry), 96
aviation fuel stations and 89 LPGas bottling plants, IndianOil services every nook and corner of the country.
Indane is present in almost 2764 markets through a network of 5,934 distributors (51.6% of the industry).
About 7780 bulk consumer pumps are also in operation for the convenience of large consumers, ensuring
products and inventory at their doorstep.

IndianOil's ISO-9002 certified Aviation Service commands an enviable 63% market share in aviation fuel
business, successfully servicing the demands of domestic and international flag carriers, private airlines and
the Indian Defence Services. The Corporation also enjoys a 65% share of the bulk consumer, industrial,
agricultural and marine sectors.

10
Apart from this other public and private sector companies like Madras Refineries Limited, Cochin Refineries
Limited, Bongaigaon Refineries and Petrochemicals Limited, IPCL, Reliance Petroleum, Essar Oil Limited
also entered the market at later stages. Initially they were not given any marketing rights for the controlled
oil products but could refine crude oil and sell through the nationalised oil companies. But, after the
withdrawal of Administered Pricing Mechanism (APM), (in 2002) these oil companies were allowed to sell
these decontrolled products through the Retail Outlets or by bulk to direct customers.

Indian Oil holds over 33% of the country's refining share (42%, if the capacity of recently acquired
subsidiaries is also added). All refinery units are accredited with ISO 9002 and ISO 14001 certifications. It‟s
Mathura refinery is the first refinery in Asia and the third in the world to earn the British Standard (BS:
7750) and ISO-14001 certifications in environmental management.

With a steady aim of maintaining its position as a market leader and providing the best quality products and
services, IndianOil is currently investing Rs. 47,000 crore in a host of projects for augmentation of refining
and pipelines capacities, expansion of marketing infrastructure and product quality upgradation.

11
 1.3 COMPANY PROFILE

Indian Oil's position as India's Company remains unbeaten. It has also moved up to 170* place in the Global
500 listing by FORTUNE MAGAZINE in 2005 of the Largest Industrial Corporations in the world.
Among the 53 petroleum companies listed, it ranks 29" by sales and 19° in terms of profits.
Indian Oil owns and operates six of India's 10 refineries with a refining capacity of 54.20 million tones of
crude oil per annum which is 51.2% of the country's total refining capacity. It has a cross-country pipeline
network of 3850 kms. Markets $7% if nation's consumption of petroleum products and is the canalising
agency for import of crude oil and petroleum products.

Incorporated in 1959 as Indian Oil Company Limited, it became a corporation in 1964, when the Indian
Refineries Limited was merged with the Company. The corporation has four Divisions-Refineries and
pipelines, Marketing. Assam Oil and Research and Development. The sophisticated R&D Center is the only
one of its kind in Asia. It's wholly owned subsidiary. Indian Oil Blending Limited has been blending a
variety of lubricants since 1964 and produces over 450 grades of lubricants and greases which are marketed
under the Servo Brand name. with Middle Distillate Flow Improver (MDFI) additives in the new climatic
chamber. Also installed during the year was a facility for measuring exhaust emission from two stroke
engines. The center, also received approvals for 24 products on trial in different areas with Railways,
Defence, Steel Plants, Heavy Engineering Industry etc. IndianOil is investing Rs. 43,400 crore (US $10.8
billion) during the period 2007-12 in augmentation of refining and pipeline capacities, expansion of
marketing infrastructure and product quality upgradation as well as in integration and diversification
projects. Network Beyond Compare As the flagship national oil company in the downstream sector,
IndianOil reaches precious petroleum products to millions of people everyday through a countrywide
network of about 35,000 sales points. They are backed for supplies by 167 bulk storage terminals and
depots, 101 aviation fuel stations and 89 Indane (LPGas) bottling plants. About 7,335 bulk consumer pumps
are also in operation for the convenience of large consumers, ensuring products and inventory at their
doorstep.

12
IndianOil operates the largest and the widest network of petrol & diesel stations in the country, numbering
over 18,278. It reaches Indane cooking gas to the doorsteps of over 53 million households in nearly 2,700
markets through a network of about 5,000 Indane distributors.

FORMS OF OWNERSHIP
As of September 2018, it was owned 57% by the Government of India (through the President of India), and
43% by other entities. The latter included corporate bodies (20%), ONGC (14%), LIC
(6%), Foreign portfolio investors, (6%) Oil India Limited (5%) and Indian Mutual funds (4%).
Subsidiaries: IndianOil (Mauritius) Ltd. CPCL; ...
Predecessor: Indian Refineries Ltd. (1958); Ind...
Industry: Oil and Gas

Indian Oil's equity shares are listed on the Bombay Stock Exchange and National Stock Exchange of India.
As of September 2018, it was owned 57% by the Government of India (through the President of India), and
43% by other entities. The latter included corporate bodies (20%), ONGC (14%), LIC
(6%), Foreign portfolio investors, (6%) [31] Oil India Limited (5%) and Indian Mutual funds (4%).

This was similar to its shareholding in 2017. As of 31 December 2017, the Promoters Government of India
held approx. 56.98% of the shares in Indian Oil Corporation. The public held the rest 43.02% of the shares -
this includes Mutual Fund Companies, Foreign Portfolio Investors, Financial Institutions/ Banks, Insurance
Companies, Individual Shareholders and Trusts.

Indian Oil Corporation (IOC) buys a stake in Phinney (Israel) for manufacturing, development, and sale of
aluminium-air batteries (Al-Air batteries) for electric vehicles. This joint venture is ready to facilitate the
development of Al-Air technology by intending to set up a factory in India

International Trade:
As the nation's canalising agency. Indian Oil imported 24.13 million tones of crude oil and 8.76 million
tones of petroleum products at a cost of Rs12,262 crores during fiscal 2005. about 2.67 million tones of
surplus petroleum products values at Rs.1039 crores of exported. During the year, the corporation also
diversified its sources of supplies of crude oil and products.

Projects:
Among the major projects completed during fiscal 1991 are – slack wax augmentation facility at BARAUNI
REFINERY, radial well 'D* at GUJRAT REFINERY and LPG Bottling facility at SILCHAR in Assam and
13
Calicut in Kerala. The major projects on hand, include a 1.2 million tones per year capacity Hydro-cracker,
for the first time in the country. at GUJRAT REFINERY to increase yield of distillate products.

Energy Conservation:
Concerted efforts continue to be made by Indian oil to not only achieve energy savings in all its areas of
operations but also guide others and promote the concept. Recurring annual fuel savings of over 127,000
tones valued at Rs.36 crores have already been achieved through replacement of low efficiency furnaces,
optimisation of heat exchange system and provision of waste heat recovery facility, Other projects under
implementation at Gujarat, Mathura, Halide, Panipat and Digboi Refineries will yield further savings of
37,300 tones of fuel annually. Indian Oil, as a pioneer of petroleum, conservation in the country, organised a
mass education conservation week during the year.

A media campaign was also launched to promote multigrade long drain lubricants and use of energy
efficient appliances like NUTAN Kerosene Wick Stove. Assistance is also being rendered to industries for
replacement of inefficient boilers. Seventeen states have been adopted for a concerted conservation action
plan. A new fuel efficient LPG HOT PLATE with a thermal efficiency of 73% has also been developed. The
corporation's GUJRAT REFINERY was awarded by the Government for "Best Insulation Effectiveness". A
new thrust has also been launched by the corporation on adoption of renewable energy sources.

High Premium on Safety:

Indian oil believes in maintaining the highest standards of safety which enabled 85 units of the Marketing
Division alone winning the prestigious BRITISH SAFETY COUNCIL award for 2005. These include
54 bulk installations and depots, 17 bottling plants and 14 aviation fuel stations. The "Sword of Honour" of
British Safety Council was awarded to the GUJRAT REFINERY for the best safety performance in 2004.
The "Award of Honour" from the National Safety Council, Chicago, USA was, for the 6° consecutive year
won by the Kodali-Ahmedabad pipeline. Indian oil also won two of the Oil Industry Safety Directorate
awards - "Best Overall Performance to HALDIA REFINERY and the "Best LPG Marketing Company" to
the Marketing Division,

Bio-fuels
To straddle the complete bio-fuel value chain, IndianOil formed a joint venture with the Chhattisgarh
Renewable Development Authority (CREDA) with an equity holding of 74% and 26% respectively.
IndianOil CREDA Biofuels Ltd. has been formed for carrying out farming, cultivating, manufacturing,
production and sale of biomass, bio-fuels and allied products and services.

14
A pilot project of jatropha plantation on 600 hectares of revenue wasteland is underway in Jhabua district in
Madhya Pradesh to ascertain the feasibility of revenue land-based commercial biodiesel units and to develop
benchmarks for plantation costs and output.

IndianOil has also signed an MoU with M/s Ruchi Soya Industries Ltd. to take up contract farming on one
lakh hectare of private and panchayat wasteland in the state of Uttar Pradesh.

Wind energy business

IndianOiI has forayed into wind energy business with the commissioning of a Rs. 130 crore, 21 MW wind
power project in the Kutch district of Gujarat. The cumulative power generation from the 14 wind turbine
generators has crossed 159 lakh KW since commissioning in January 2009.

For over two decades now, IndianOil has been providing technical and manpower secondment services to
overseas companies. Such services have been extended to Emirates National Oil Company (ENOC), Kenya
Pipeline Company and Aden Refinery, Yemen . For the first time, SAP implementation / IT consultancy was
provided in Sri Lanka. Consultancy on pipelines was provided to Greater Nile Petroleum Operating
Company (GNPOC), Sudan.

Sharing its Expertise Abroad:

Indian Oil lends its technological know how to other developing countries in every area of petroleum
Refining, Marketing and Distribution, Research and Development, Finance and General Management.
During fiscal 1991, technical cooperation agreement was renewed with NEPAL OIL CORPORATION for
rendering assistance in aviation fuel handling and maintaining their facilities at air fields in Nepal.
Assistance also continues to be rendered to MALDIVES AIRPORT AUTHORITY and BHUTAN OIL
CORPORATION. Another agreement has also been signed with NEPAL OIL CORPORATION for
assistance in blending of lubricants. Sir Lanka Oil Corporation Id. Fuel Station.

15
 1.4 AVIATION FUEL

IndianOil Aviation Service is a leading aviation fuel solution provider in India and the most-preferred
supplier of jet fuel to major international and domestic airlines. Between one sunrise and the next, IndianOil
Aviation Service refuels over 2,200 flights from the bustling metros to the remote airports linking the vast
Indian landscape, from the icy heights of Leh (the highest airport in the world at 10,682 ft) to the distant
islands of Andaman & Nicobar.
Jet fuel is a colourless, combustible, straight-run petroleum distillate liquid. Its principal uses are as jet
engine fuel. The most common jet fuel worldwide is a kerosene-based fuel classified as JET A-1.The
governing specifications in India are IS 1571: 2018.
IndianOil is India's first oil company conforming to stringent global quality requirements of aviation fuel
storage & handling. IndianOil Aviation also caters to the fuel requirements of the Indian Defence Services,

16
besides refuelling VVIP flights at all the airports and remote hili-pads/hili-bases across the Indian
subcontinent.

IndianOil Aviation group regularly organises International Aviation conferences that act as a vital
information facilitator with participation from leading international and all domestic airlines, allied
industries, statutory aviation authorities and government agencies from over 35 countries. IndianOil is the
only oil company in India to market the widest possible range of fuels used by the aviation industry in India-
JP-5, Avgas 100LL, Methanol Water Mixture, Jet A-1 and aviation lubricants, etc.

Aviation Turbine Fuel (ATF) is dispensed from specially designed refuels, which are driven up to parked
airplanes and helicopters. Major airports have hydrant refuelling systems that pump the fuel right up to the
filling outlets on the tarmac through underground pipelines for faster refuelling. Essentially, ATF is pumped
into an aircraft by two methods: Over-wing and Underwing. Over-wing fuelling is used on smaller planes,
helicopters, and piston-engine aircraft and is similar to automobile fuelling - one or more fuel ports are
opened and fuel is pumped in with a conventional pump. Underwing fuelling, also called single-point is used
on larger aircraft.

To ensure that you receive the best service, every one of our 125 AFSs follows specific quality audits based
on a Quality Control Index System benchmarked to global standards. In addition, 19 Quality Certification
Laboratories provide complete specification tests round-the-clock. Ensuring that these standards are always
upheld, there is a back up of a highly skilled, qualified and dedicated team of officers and refuelling
crew.The world leader in aviation business. IndianOil regularly organises seminars, symposiums and
workshops to constantly interact with its partners, which apart from being a two-way channel of
communication, helps us to stay abreast with advances in technology.

The famous Brands under Indian Oil

17
Indian Oil's branded fuels XtraMile and XtraPremium have made a significant impact in the petroleum retail
market. XtraMile, Indian Oil's new generation High Speed Diesel with world-class additives
has taken a leadership position in the market.

The launch of premium fuels - XtraPremium and XtraMile (originally IOC Premium and Diesel Super
respectively), marks a new beginning for Indian Oil and its customers. XtraPremium is, in fact, the only
petrol in India with 91 Octane and doped with Multifunctional Additives. The maiden launch of these
branded fuels took place in Delhi on Sept. 24, 2002. Subsequently, XtraPremium sales have been extended
to 200 cities and 750 petrol & diesel stations, and XtraMile to 850 cities and 1750 petrol and diesel stations
by the end of.

PRODUCTS
Indian Oil is not only the largest commercial enterprise in the country it is the flagship corporate of the
Indian Nation. Besides having a dominant market share, Indian Oil is widely recognised as India’s dominant
energy brand and customers perceive Indian Oil as a reliable symbol for high quality products and services.
Benchmarking Quality, Quantity and Service to world-class standards is a philosophy that Indian Oil adheres
to so as to ensure that customers get a truly global experience in India.
Indian Oil is a heritage and iconic brand at one level and a contemporary, global brand at another level.
While quality, reliability and service remains the core benefits to the customers.

 Auto-gas

 Indian Oil Aviation Service

 Bitumen

 High Speed Diesel

 Bulk / Industrial Fuel

 Indane Gas

 SERVO Lubricants & Greases

 Marine Fuels & Lubricants

18
  MS / Gasoline

 Petrochemicals

 Special Products

 Superior Kerosene Oil

 Crude

1.5 OPERATIONS

Refineries division
Indian Oil controls 10 of India’s 18 refineries – at Digboi, Guwahati, Barauni, Koyali, Haldia, Mathura,
Panipat, Chennai, Narimanam and Bongaigaon – with a current combined rated capacity of 54.20 million
metric tones per annum (MMTPA)* (one million barrels per day). Indian Oil registered a record throughput
of 36.63 millions tones during the year 2004-05 with a capacity utility of 88.6%. Indian Oil accounts for
42% of India’s total refining capacity. Overall Energy consumption of Indian Oil refineries was lowest at
109 MBTU/BBL/NRGF against earlier best of 111, achieved in 2003-04. Gross Refining Margin (GRM)
rose by almost one dollar per barrel during the year 2004-05. It is expected to be the highest at US$ 6.25/bbl
for the year 2004-05 as against $5.30/bbl in 2003-04. All refinery units are accredited with ISO 9002 and
ISO 14001 certifications.

List of Refineries:
19
  Digboi Refinery (Upper Assam)

 Guwahati Refinery (Assam)

 Baraunni Refinery

 Gujarat Refinery

 Haldia Refinery

 Bongaigaon Refinery

 Mathura Refinery

 Panipat Refinery

DIGBOI REFINERY (UPPER ASSAM)

The Digboi Refinery in North Eastern India is India’s oldest refinery and was commissioned in 1901.
Originally a part of Assam Oil Company, it became part of Indian Oil in 1981, its original refining capacity
has been 0.5 MMTPA since 1901. Modernisation project of this refinery has been completed and the
refinery now has an increased capacity of 0.65 MMTPA. The Digboi refinery produces distillates, heavy
ends and excellent quality wax from indigenous crude oil produced at the Assam Oil fields. Petroleum
products are supplied mainly to northeastern India primarily through road and by rail wagons. A new
Delayed Coking Unit of 1,70,000 TPA capacity was commissioned in 1999. A new solvent dew axing unit
for maximising production of microcrystalline wax was installed and commissioned in 2003. The refinery
has also installed Hydrotreater to improve the quality of diesel

GUWAHATI REFINERY
The Guwahati Refinery in North East India – the first Public Sector refinery of the country-was
commissioned in 1962 with a capacity of 0.75 MMTPA which was subsequently increased to 1.0 MMTPA
through debottlenecking projects.The refinery processing only indigenous crude oil from the Assam oil
fields. It supplies petroleum products to North-Eastern India and surplus products onwards to Siliguri in
West Bengal in 2003. Hydrotreater unit for improving the quality of diesel has been commissioned in 2002.
In 2003, the refinery installed an IndMax Unit a novel technology developed by Indian oil’s R & D center
for upgrading heavy ends into LPG, motor spirit and diesel oil.
20
BARAUNI REFINERY
The Barauni Refinery in Eastern India was commissioned in 1964 with a capacity of 2.0 MMTPA. The
refining capacity was increased to 3.0 MMTPA by 1969 and further to its current capacity of 6.0 MMTPA
through low cost revamping and debottlenecking. Matching secondary processing facility such as RFCC
(Resid Fluidised Catalytic Cracker) and hydrotreater facilities for diesel quality improvement have been
added. With the commissioning of the 6.0 MMTPA Haldia-Barauni crude oil pipeline, the refinery now
received imported crude for processing. A CRU (Catalytic Reformer Unit) was also added to the refinery in
1997 for production of unleaded motor spirit. Projects are also planned for meeting future fuel quality
requirements. Barauni refinery supplies distillate products beside eastern India to northern India through a
product pipeline to Kanpur in Uttar Prades.

GUJARAT REFINERY
The Gujarat Refinery at Koyali in Gujarat in Western India is IndianOil’s largest refinery. The refinery was
commissioned in 1965. Its facilities include five atmospheric crude distillation units. The major units include
CRU, FCCU and the first Hydro cracking unit of the country.Through a product pipeline to Ahmedabad and
a recently commissioned product pipeline connecting to BKPL product pipeline and also by rail
wagons/trucks, the refinery primarily serves the demand for petroleum products in Western and Northern
India.When commissioned, the Gujarat refinery had a design capacity of 3.0 MMTPA. It was increased to
4.3 MMTPA by the revamping of three distillation Units. In 1978, its processing capacity was further
increased to 7.3 MMTPA by the addition of a crude distillation unit. Subsequently the crude capacity was
increased to 9.5 MMTPA by 1990 and then by 12.5 MMTPA in 1999. Since it has been increased to its
present capacity of 13.70 MMTPA by low cost debottlenecking.

HALDIA REFINERY
Haldia Refinery, the fourth in the chain of seven operating refineries of IndianOil, was commissioned in
January 1975. It is situated 136 km downstream of Kolkata in the district of East Midnapur, West Bengal,
near the confluence of river Hoogly and river Haldi. The refinery had an original crude oil processing
capacity of 2.5 MMTPA. Petroleum products from this refinery are supplied to eastern India through two
product pipelines as well as through Barges, tank wagons and tank trucks.Products like MS, HSD and
Bitumen are exported from this refinery.Refinery was increased to 2.75 MMTPA through de-bottlenecking
in 1989-90. Refining capacity was further increased to 3.75 MMTPA in 1997 with the
installation/commissioning of second Crude distillation unit of 1.0 MMTPA capacity.Diesel Hydro
Desulphurisation (DHDS) unit was commissioned in 1999, for production of low sulphur content (0.25%wt.)

21
High Speed Diesel. With augmentation of this unit, refinery is producing BS-II and Euro-III equivalent HSD
at present.

MATHURA REFINERY
The Mathura Refinery was commissioned in 1982 with an original capacity of 6.0 MMTPA. The capacity
was increased to 7.5 MMTPA by debottlenecking and revamping. With its fluid catalytic cracking units, the
refinery mainly produces middle distillates and supplies them to Northern India through a product pipeline to
Jalandhar, Punjab via Delhi. A hydro cracker for increasing middle distillates was also completed in 2000.
The present capacity of the refinery is 8 MMTPA. In order to meet future fuel requirements, facilities for
improvement in quality of MS & HSD are under installation and planned to be completed by 2005.

PANIPAT REFINERY
IndianOil’s seventh refinery, commissioned in 1998, is located at Panipat, 125 kms away from Delhi, the
capital of India, in the state of Haryana in Northern India. The main units are OHCU (Once-through-hydro
cracker), RFCC, CCRU (Continuous Catalytic Reformer unit) besides other secondary treatment units. This
6 MMTPA refinery caters to the high demand centres of Northern India. The product to increase the capacity
of Panipat refinery to 15 MMTPA is already under implementation, which also takes into account future fuel
quality requirements for 2005. The expansion project is expected to be completed in 2005.

Factor influencing location decisions

Factors Influencing the Location of Industries : Geographical and Non-Geographical Factors

Many important geographical factors involved in the location of individual industries are of relative
significance, e.g., availability of raw materials, power resources, water, labor, markets and the transport
facilities. Geographical and Non-Geographical Factors. But besides such purely geographical factors
influencing industrial location, there are factors of historical, human, political and economic nature which
are now tending to surpass the force of geographical advantages. Consequently, the factors influencing the
location of industry can be divided into two broad categories i.e.

Factor influencing layout decisions

Some of the major factors which affect plant layout are

 Policies of management: It is important to keep in mind various managerial policies and plans before
deciding plant layout. Various-managerial policies relate to future volume of production and
expansion, size of the plant, integration of production processes; facilities to employees, sales and

22
 marketing policies and purchasing policies etc. These policies and plans have positive impact in
deciding plant layout.

 Plant location: Location of a plant greatly influences the layout of the plant. Topography, shape,
climate conditions, and size of the site selected will influence the general arrangement of the layout
and the flow of work in and out of the building.

 Nature of the product: Nature of the commodity or article to be produced greatly affects the type of
layout to be adopted. In case of process industries, where the production is carried in a sequence,
product layout is suitable. For example, soap manufacturing, sugar producing units and breweries
apply product type of layout. On the other hand, in case of intermittent or assembly industries,
process type of layout best suited. For example, in case of industries manufacturing cycles,
typewriters, sewing machines and refrigerators etc., process layout method is best suited. Production
of heavy and bulky items need different layout as compared to small and light
items. Similarly,products with complex and dangerous operations would require isolation instead of
integration of processes.

 Volume of production: Plant layout is generally determined by taking into consideration the quantum
of production to be produced. There are three systems of production viz.,

1.6 PIPELINES

Indian Oil Corporation owns and operates the largest network of crude oil and petroleum product pipelines
in India. The total network of pipelines is 10,909 km with a capacity of 75.55 million metric tonnes per
annum . The company's pipelines are well positioned to supply petroleum products from its refineries and
India's ports to high demand states in northwestern India. Your Corporation owns and operates the largest
network of crude oil and product pipelines in India. With the commissioning of the new Panipat-Rewari
product pipeline, this network was expanded to 7,730 km during the year. The overall pipelines throughput
during the year was 43.03 million tonnes. The marginal reduction in throughput compared to the previous
year was on account of reduced throughput at our Mathura and Gujarat refineries.

Marketing
23
IndianOil has one of the largest petroleum marketing and distribution networks in Asia, with over 43,000
marketing touch points. Its ubiquitous fuel stations are located across different terrains and regions of the
Indian sub-continent. From the icy heights of the Himalayas to the sun-soaked shores of Kerala, from Kutch
on India's western tip to Kohima in the verdant North East, IndianOil is truly 'in every heart, in every part'.
IndianOil's vast marketing infrastructure of petrol/diesel stations, Indane (LPG) distributorships,SERVO
lubricants & greases outlets and large volume consumer pumps are backed by bulk storage terminals and
installations, inland depots, aviation fuel stations, LPG bottling plants and lube blending plants amongst
others. The countrywide marketing operations are coordinated by 16 State Offices and over 100
decentralised administrative offices.

Several landmark surveys continue to rate IndianOil as the dominant energy brand in the country and an
enduring symbol for high quality petroleum products and services. The heritage and iconic association that
the brand invokes has been built over four decades of commitment to uninterrupted supply line of petroleum
products to every part of the country, and unique products that cater not only to the functional requirements
but also the aspirational needs of millions of customers.
IndianOil has been adjudged as one of India's top brands by UK-based Brand Finance, an independent
consultancy that deals with valuation of brands. It was also listed as India's 'Most Trusted Brand' in the
'Gasoline' category in a Readers' Digest - AC Nielsen survey. However, the value of the IndianOil brand is
not just limited to its commercial role as an energy provider but straddles the entire value chain of gamut of
exploration & production, refining, transportation & marketing, petrochemicals & natural gas and
downstream marketing operations abroad. IndianOil is a national brand owned by over a billion Indians and
that is a priceless value.

Enriched customer experience over time converts into customer's loyalty. Automation, modernisation of the
dispensing units, improving visual identity of fuel stations, imparting training to dealers and customer
attendants are key steps being taken by IndianOil to enhance customer experience. IndianOil has modernised
more than 85 percent of eligible A &B site retail outlets and in the coming year, IndianOil is emphasising on
achieving cent per cent modernisation of the rest of fuel stations.

Research And Development

Established in 1972 for the development of lube as well as refining process technologies, the IndianOil R&D
Centre at Faridabad has completed over 35 years of glorious service to the nation. It is one of its kind in Asia
and has grown into a major technological development center of international repute in the down stream
areas of lubricants, pipelines and refining processes.

24
Developing more than 2500 formulations over the years, it has successfully perfected the state-of-the-art
lube formulation technology meeting latest national and international specifications with approvals from
major original equipment manufacturers. IndianOil markets around 800 grades of lubricants under the brand
name "SERVO" based on its own R&D technology and is one among the six worldwide technology holders
of marine oil technology. It has extensive laboratory and pilot plant facilities to successfully pursue projects
in lube, refining and pipeline areas making it a unique technology centre. Its rich reservoir of highly
qualified/ specialised scientific and technical manpower has elevated this centre to global status. Having an
effective IPR portfolio of 195 patents including 48 US patents, the vibrant and innovative research at the
Centre has led to many technological innovations, some of which have received prestigious national and
international awards. INDMAX, i-Max, Oil Porous-S, INDETreat/INDESweet are few of them. Being the
nodal agency of the hydrocarbon sector for implementation of the Hydrogen energy programmes in the
country, the Centre has taken up a pilot project for developing infrastructure for fuelling neat hydrogen as
well as H2-CNG blended fuel and is currently in the process of setting up a Hydrogen-CNG dispensing
station at COCO retail outlet in Delhi. The Centre has also taken the lead in the development and
commercialisation of biodiesel.

Exploration and production

Vertical integration along the entire hydrocarbon value chain is a key strategy for achieving growth in the
hydrocarbon business. IndianOil is attempting vertical integration through E&P initiatives to secure its own
equity oil so as to safeguard its business interest against the highly volatile international oil market.
IndianOil’s business development initiatives continue to be driven by emerging opportunities and guided by
25
its corporate vision of becoming “The Energy of India- a globally admired company”.Our business strategy
focuses primarily on expansion across the hydrocarbon value chain.
To enhance upstream integration, IndianOil has been pursuing exploration & production activities both,
within and outside the country in collaboration with consortium partners.

IndianOil has built portfolio of oil & gas assets, with participating interest in 9 domestic and 12 overseas
assets. These overseas assets are located in USA, Canada, Libya, Gabon, Nigeria and Russia. In addition,
IndianOil has recently farmed-in in 5 OALP blocks from OIL and won the bid for 2 DSF-III blocks in
consortium with ONGC, which would soon be part of IndianOil’s domestic block tally as soon as requisite
agreements are duly executed.

IndianOil is an Operator in two domestic and one overseas block and is a non-operating partner in 7
domestic blocks & 10 overseas blocks. The overseas blocks include one exploratory block each in Libya,

Gabon and Abu Dhabi, a development project in Nigeria, and producing assets in USA, Canada, Venezuela,
Russia, Oman & UAE. Exploration efforts made in these blocks have led to successes through hydrocarbon
discoveries in Assam-Abakan onshore, and Gujarat-Kutch shallow water blocks in IndianOil’s domestic
portfolio and in onshore Libyan, Nigerian and Gabon assets in IndianOil’s overseas portfolio.

In domestic operated assets, preparations are underway for development drilling in operated asset in Assam
while Petroleum Exploration License is awaited for start of Block activities in the other operated asset in
Tamil Nadu. In IndianOil’s first overseas operated in Abu Dhabi, drilling and testing of two Appraisal wells
have been completed. Development Plan for the appraised area is under approval. Further, Exploratory
campaign to ascertain unconventional resources in the Block is in progress. In the other blocks, activities are
in progress as per committed work programme. E&P Department has a state of the art data interpretation
centre “ANWESHAN”. It is being used for in-house data interpretation of operated and non-operated assets
of Indian oil, and also in enhancing capabilities of geoscientists in interpretation. This centre provides
opportunities to geoscientists to have in-hand experience of petroleum exploration and its allied operations
in partnership with the operators of non-operated onshore & offshore assets in India and overseas.

26
 1.7 Cryogenic

IndianOil has a thriving Cryogenics business with expertise in design & production of state-of-the-art
vacuum super-insulated cryogenic storage and transport vessels. We are one of the largest manufacturers of
cryogenic containers in the country.

We offer a diverse range of products for long-term cryogenic preservation of biological samples as well as
for use in industries, laboratories, and oilfield service applications. A market leader with nearly four decades
of experience in cryogenic and vacuum engineering, we serve various industries such as Refineries,
Chemicals, Aviation, Lubricants, Animal Husbandry, Gas etc., through specialised and custom-built product
lines. An advanced manufacturing unit, located at Nashik spread over an area of 36,000 sq. metres, is
equipped with specialised sophisticated machines to manufacture -

 Aluminium Cryocans (1 to 55 litres capacity)

 Small sized industrial use cryogenic vessels (110 to 1000 litres capacity)

 Medium and large sized cryogenic vessel (3000 to 40000 litres capacity)

 Large & heavy pressure vessels, lube and aviation equipment

Cryocan - Liquid Nitrogen Dewars (0.5 to 55 Ltrs.)

Double-walled non-pressurised Aluminium container for storing liquid Nitrogen. Cryocans are mainly used
to preserve bull semen under extremely cold temperatures i.e -196? in liquid Nitrogen. The bull semen thus
preserved is used for artificial insemination in the field to get a better breed of cows for higher milk yield.

Cryocans are also used for various other applications such as embryos and amp; stem cells preservation by

27
IVF clinics, dermatology and shrink fitting, etc. It is our signature product and holds the major market share
in the country. The Cryocans are also exported to Europe, Singapore, Sri Lanka, Bangladesh, etc. We have
an installed capacity to produce around 32,000 Cryocans annually.

Cryovessels - Pressurised large capacity cryogenic containers

Cryovessels are double-walled vessels an inner vessel made of stainless steel and outer vessel of carbon
steel. These are used for storage and transportation of liquefied gases like liquid Nitrogen (LIN), liquid
Oxygen (LOX), liquid Argon (LAR) and liquified natural gas (LNG). Cryovessels are designed and
manufactured conforming to various international codes such as ASME, EN, ADM, BS & ISO under
reputed third-party inspection agencies such as LRA, BV, TUV, PDIL, etc. to meet the stringent Indian
conditions.

Range of Cryogenic vessels:

• Cryogenic Storage vessels (100 to 150,000 Ltr)

• Cryogenic Transport Vessels (500 to 40000 Ltr)
BG(Cryogenics) is the pioneer in Multi Layered Super Insulation (MLSI) technology. Transport vessels built
with cold stretched process and MLSI insulation offers optimised payload carrying capacity.

Pressure Vessels
Leveraging its strength in manufacturing pressurised cryogenic storage & transport vessels, IndianOil
manufactures stainless steel, carbon steel and alloy steel pressure vessels required by refineries and process
industry. We undertake the turnkey job of design, sourcing raw materials, fabrication under third party
inspection, PMC, testing and supply of pressure vessel with variety of MOC.

Range of pressure vessels:

• Carbon steel pressure vessels (Upto 40 mm thickness, 100000 Ltr)

• Stainless steel pressure vessels (Upto 30 mm thickness, 100000 Ltr)

LNG logistics and regassification systems

For the LNG businesses, we offer customised cryogenic solutions for storage and transport of Natural Gas.
Currently, a Liquefied CNG / LNG fuelling facility, the first of its kind in the country, is being set up on
turnkey basis at IndianOil’s integrated fuel complex at Anayara in Thiruvananthapuram, Kerala.
28
Major Customers:
 Bulk natural users
 Fuel station selling CNG
 Glass and ceramic industry
Petrochemicals
IndianOil Corporation has finalised a master plan to enter into the petrochemical product line by integrating
its core refining business with petrochemical activities, predominantly utilising the streams available in
various refineries. Petrochemicals, As part of its forward integration strategy, your Corporation is
implementing a master plan by co- locating petrochemical plants with its existing and proposed refineries to
fast emerge as a leading petrochemicals player in the country.

Indian oil took the first step in this direction by commissioning a LAB plant at Gujarat Refinery in August
2004. Despite intense competition in the domestic market, IndianOil secured nearly 30% share of LAB
business in a short time. Export opportunities are also being explored.
Indian oil corporation is also implementing an integrated PX/PTA project at Panipat Refinery, to be
mechanically completed by October 2005. Marketing activities for PTA have already been initiated and the
response so far has been very encouraging.

Indian oil corporation is in an advanced stage of setting up a Naphtha Cracker and downstream polymer
units at Panipat. Towards this, an MoU has been signed in June 2004 with the Government of Haryana, who
are extending fiscal incentives and concessions for the project. The project is planned to be completed by
2007-08. IndianOil has already proposed a refinery at Paradip on the east coast. It is now proposed to
develop it into a refinery-cum-petrochemicals complex. Feasibility studies for finalising the configuration
are currently underway.

Gas
With gas emerging as preferred fuel for the utilities sectors viz., power, fertilisers and transportations, its
share in the total energy basket is expected to reach 20% by the year 2025. The company has taken several
initiatives to harness these growth potentials.

29
Vision

IndianOil’s Sustainability & Corporate Social Responsibility (S&CSR) vision is to operate its activities in
providing energy solutions to its customers in a manner that is efficient, safe & ethical, which optimises the
impact on environment and enhances quality of life of the community, while ensuring sustainable growth of
business and the nation. 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
The Corporation's objectives in this key performance area are enshrined in its Mission statement: "…to help
enrich the quality of life of the community and preserve ecological balance and heritage through a strong
environment conscience." The Corporation's objectives in this key performance area are enshrined in its
Mission statement: "…to help enrich the quality of life of the community and preserve ecological balance
and heritage through a strong environment conscience."

In the past four decades, IndianOil has supported innumerable social and community initiatives in
India. Touching the lives of millions of people positively by supporting environmental and health-care
projects and social, cultural and educational programmers. As part of IndianOil'ssocial
responsibility programmed, there is an IndianOil Scholarship scheme, which provides for attractive
scholarships to bright students selected on 'merit-cum-means' basis. As part of the scheme, special
encouragement is being given to girl students, physically challenged students, and students from J & K as
well as the Northeast States.

30
More importantly, the Vision is infused with the core values of Care, Innovation, Passion and Trust, which
embody the collective conscience of the company and its people, and have helped it to grow and achieve
new heights of success year after year.

Goals
To ensure maintenance of continuous and smooth supplies of petroleum products by way of crude oil
refining, transportation and marketing activities and to provide appropriate assistance to consumers to
conserve and use petroleum products efficiently. IndianOil has been actively engaged in a gamut of social
welfare/upliftment activities across the nation, in addition to reaching essential fuels viz. Kerosene, LPG,
Petrol, Diesel, etc. to the nook and corner of the country. IndianOil’s key Corporate Social Responsibility
(CSR) thrust areas include 'Safe drinking water and protection of water resources', 'Healthcare and
sanitation', 'Education and employment-enhancing vocational skills', 'Empowerment of women and
socially/economically backward groups', etc. IndianOil has a long-standing CSR legacy, which started much
before the CSR legislation (Companies Act, 2013) came into force in 2014-15. The CSR projects
of IndianOil are undertaken mostly for improving the quality of life in various communities, which
invariably include marginalised / underprivileged sections of the society, viz. schedule caste, schedule tribe,
other backward caste, physically handicapped. etc. With the Pan-India presence, IndianOil undertakes CSR
activities across the country, from Leh in J&K in the North, to the North Eastern States, to the aspirational/
backward districts/ Naxal affected areas, to Gujarat in the West and Tamil Nadu/Kerala in the South. For the
year 2018-19, entire CSR budget allocation of Rs. 490.60 crore was spent, thereby achieving 100% budget
utilisation.

Scope
IndianOil’s S&CSR Policy will be operative within the overall ambit of CSR
Provisions of the Companies Act 2013 [hereinafter referred to as ‘Act’], Companies (CSR Policy) Rules
2014 [hereinafter referred to as ‘CSR Rules’], Schedule-VII to the Act [hereinafter referred to as ‘Schedule-
VII’], DPE’s guidelines on CSR & Sustainability [hereinafter referred to as ‘DPE guidelines’] and
clarifications / amendments thereof from time to time.

Values of IOCL
Values exist in all organisations and are an integral part of any it. Indian Oil nurtures a set of core values:

• CARE

• INNOVATION

31
 PASSION

• TRUST

Indian Oil Competitors

There are several companies that are trying to compete with this giant organization but IOCL has its place
intact since it’s an establishment. Some of the rival companies are:

1. Hindustan Petroleum
2. Bharat Petroleum
3. Essar Oil & Shell
4. Reliance Industries
5. Mangalore Refinery and Petrochemicals Limited

Speaking about the Indian oil market share is a cumbersome process as it has got numerous shares in the
different segments. Indian oil along with its subsidiaries hold more than 46% share in the petroleum-related
product’s market. Whereas in the terms of refining it holds nearly 40% share in this market. Out of some 19
refineries, it holds 10 refineries which are very huge for any company for that matter.
Looking at the downstream it holds nearly 65% share in the market. And it has got the widest network of
fuel stations numbering to about 17500 plus. To sum up, the market share of Indian oil in the oil industry of
India is large compared with the other companies in the same industry.

So how does a giant like Indian Oil market its products effectively? Let’s start learning about their marketing
with the help of their marketing mix first.

32
 1.8 FOREIGN SUBSIDIARIES

Overseas- Downstream Marketing

IndianOil has successfully graduated from a product exporter to a transnational energy company with
establishment of two wholly owned overseas subsidiaries, Lanka IOC PLC and IndianOil (Mauritius)
Limited.

Lanka IOC

Lanka IOC (LIOC), IndianOil’s subsidiary in Sri Lanka, is the only private oil company that operates retail
petrol/diesel stations in Sri Lanka. Lanka IOC was incorporated in 2003 to carry out retail marketing of
petroleum products and bulk supply to industrial consumers with 100 CPC-owned petrol/diesel stations. The
company commenced operations from small beginnings and now become the eight largest listed company in
Sri Lanka. IndianOil’s entry into Sri Lanka is in line with its vision of becoming a transnational energy
major. While expanding its market base to convert the surplus avails of petroleum products into more wealth

33
for stakeholders, IndianOil is also committed to being a good strategic partner to Sri Lanka. Its vast
experience in downstream petroleum operations in India is helping create a healthy and competitive
petroleum industry in Sri Lanka.

At present, Lanka IOC operates 202 petrol & diesel stations in Sri Lanka and has a very efficient lube
marketing network with 235 SERVO shops and 24 lubricant distributors. Major facilities include an oil
terminal at Trincomalee - Sri Lanka's largest natural harbour, a lubricant blending plant of 18,000 tonnes per
annum capacity and a state-of-the-art fuels & lubricants testing laboratory at Trincomalee. Lanka IOC also
owns one-third share in Ceylon Petroleum Storage Terminals Limited (CPSTL) - a joint venture of Lanka
IOC and Ceylon Petroleum Corporation (CPC) - which operates 13 oil terminals across the Island. Lanka
IOC’s activities not only provide the island nation energy security and supply stability but also helps
upgrade the overall standards of service, particularly in the retail sector. It is listed on the Colombo Stock
Exchange.

Lanka IOC holds a 35% market share in a highly competitive bunkering fuels market, catering to all types of
bunker fuels and lubricants at all ports of Sri Lanka, viz., Colombo and Trincomalee. It is the major supplier
of lubricants and greases and has gained a significant market share over the years. Lanka IOC is also a
leading supplier of bitumen in Sri Lanka and supplies two variants of bitumen for road-building and other
industrial usage. It has recently ventured into the high-growth Petrochemicals business.

Lanka IOC also has the China Bay Tank-farm of World War II vintage, which is of historic and strategic
significance as it is the largest tank-farm located between the Middle East and Singapore. The tank farm,
formerly owned and operated by CPC, has 99 tanks, each with a capacity of 12,000 kilo-litres. Currently,
only 15 of these tanks are operational. Lanka IOC intends to develop the tankage on need basis.

Lanka IOC is making phased investments to provide world-class quality petroleum products and service to
the Sri Lankan customers. Through its retail chain, it is also making available non-fuel facilities such as
convenience stores, 24-hour ATMs, automatic carwash, food marts, etc. In a first, nitrogen filling facility has
been introduced for automotive tyres. Such initiatives will not only provide value-for-money to the motorists
but offer an altogether new refuelling experience. The refurbished stations of Lanka IOC have won praise
from all sections of the Sri Lankan society

34
Mauritius IOC

IndianOil (Mauritius) Ltd (IOML), a wholly owned subsidiary company of Indian Oil Corporation Ltd, is the
third largest petroleum company in Mauritius. Registered on 24th Oct 2001 and commencing marketing
operations in January 2004, IOML holds an overall market share of 24% and competes with other
multinational companies present in Mauritius for over five decades. IndianOil’s presence in Mauritius is of
strategic importance to penetrate and explore marketing opportunities in the African countries and nearby
islands.

IOML has a range of products - automotive fuels, aviation fuel, marine fuels, and SERVOLubricants. A
comprehensive retail network has been established in Mauritius with the commissioning of several modern

35
filling stations. It operates a modern petroleum bulk storage terminal at the Mer Rouge port, besides 17
filling stations. There is considerable expansion of retail network ongoing in Mauritius. IndianOil’s world-
class SERVO lubricants are available in Mauritius through a widespread network of filling Stations, spare
parts shops and supermarkets. Distributors cover the supply to the unorganised sector, i.e. workshops,
garages and service stations, etc., in the island nation. SERVO enjoys patronage in many African countries
too.

IOML has a significant presence in the marine bunker business in Mauritius. It is in the process of enhancing
its infrastructure at Port quays to meet the future growth needs of this bunkering port. IOML commands the
dominant share of 42%, in the Aviation Fuel business and supplies jet fuel to many renowned airlines. It also
has 25% equity in the new petroleum terminal at the Sir Seewoosagar Ramgoolam International Airport,
created by a consortium at an investment of USD 16 million. With a major presence in the industrial and
commercial market sectors, IOML provides bulk petroleum products to various sectors such as the transport,
industry, building and construction, manufacturing, textiles, steel, hospitality, etc.

IOML has set up a modern state-of-the-art 24,000 metric tonnes storage facility at Mer Rouge in Port Louis
by means of eight tanks of various capacities for different products. This terminal has some of the most
modern facilities for handling and delivery of the petroleum products including loading bays and tank
gauging systems, which are all micro-processor controlled. It is also the first of its kind in Mauritius.

A comprehensive petroleum laboratory for testing all fuels and lubricants has also been set up. The
ISO 9001-2000 accredited laboratory is the first full-fledged petroleum products testing laboratory in
Mauritius.

IOL Middle East FZE

IOC Middle East FZE is IndianOil's subsidiary overseeing business expansion in the Middle East. Mainly
into blending and marketing of SERVO lubricants and marketing of petroleum products in the Middle East,
Africa and CIS countries, the company also markets Group 1 and Group 2 base oils in Bulk and Flexis.
IOME also undertakes Lube Seminars and oil analysis consultancy for knowledge sharing with several
Customers, Distributors and OEM agencies. IOME exports finished lubes to Oman, Yemen , Bahrain, UAE
and Nepal.
IOC Middle East FZE, has signed an agreement with Qatrat Naft LLC, a wholly-owned subsidiary of Al-Jeri
Transportation Company, Saudi Arabia, in Oct. ’19 to form a JV Company for development of retail
networks in Saudi Arabia and other countries in the region.

36
 1.9 FACILITY LOCATION AND LAYOUT

IndianOil's world-class R&D Centre is focused on developing, demonstrating and deploying novel,
innovative, environment friendly, customer centric products and process technologies for addressing issues
of national importance to attain self-reliance in field of energy and allied areas. Apart from carrying out path
breaking research in core petroleum activities like Lubricants, Refining, Petrochemicals and
Pipeline; IndianOil R&D is pursuing pioneering work in promising & futuristic Alternate Energy segments
like Bio-Energy, Solar Energy, Hydrogen, Energy Storage, Battery, CCU Technologies etc.

37
Refining Technology

R&D Centre of IndianOil has established a prominent footprint in Refining Technology area. It has
demonstrated its innovative prowess in development of basket of technologies, highly relevant in the
emerging scenario, and their successful commercialisation.

Most of these technologies have been demonstrated at IndianOil refineries and currently are in regular
operation contributing to the gross refining margin. For all its technologies, IndianOil on its own or through
its technology partner provides a single point solution for technology licensing, including supply of Basic
Design and Engineering Package (BDEP), catalyst, reactor internal, mandatory technical services, etc. as per
the standard industry practice.

Petrochemicals & Polymers

38
IndianOil R&D Centre is engaged in development indigenisation of catalysts, drag reducing agents,
additives, packaging materials etc. IndianOil also renders technical support in the field of petrochemical &
polymers to enhance product quality & reduce production costs. As an emerging center of excellence in
Ziegler-Natty Catalyst in polymer research, IndianOil R&D has helped standardise its polymer grades and
produced new products/grades based on market requirements.

Pipeline Maintenance & Inspection

R&D has been undertaking pioneering research in the areas of pipeline transportation and development of
pipeline inspection tools (an area hitherto dominated by foreign companies) like MFL (magnetic flux
leakage) based IPIG technology, gas pipeline inspection tool, advanced sensors for liquid pipeline
inspection, Artificial Neural Network based Data analysis software and Integration of Inertial Measurement
Unit for obtaining GPS coordinates.

Alternate Energy
IndianOil R&D is working for development, deployment and harnessing of different alternative energy
sources like Hydrogen Fuel Cell, H-CNG and Solar Energy. IndianOil R&D has developed cost effective
single step compact Steam Methane Reforming process for direct HCNG production from NG which is
flexible and rugged allowing H-CNG production as per demand, by-passing energy intensive electrolysis
process and costly high-pressure blending.

39
Bio-Energy

The Goal through the initiatives taken under Bio-Fuel Policy 2018 has identified Ethanol Blending as a
potent solution to stubble burning issue with possibility to increase farmers' income. IOCL has developed
new and economical enzymatic pre-treatment process at pilot level using agriculture waste and is now
scaling it up in demo plant at Panipat. IOCL R&D is also working on a bio-route to convert the Co2 from
refinery flue gases to Ethanol by installing India's first of its kind Co2 to Ethanol production plant at Panipat.

Nanotechnology

The thrust of Nanotechnology research in IndianOil R&D center is to develop nano-materials, nano
fluids and catalysts for applications in fuels, lubricants, processes & alternate energy segments including
energy storage devices. Some of the game changing solutions developed by Centre are nano-dispersions
agents for use in fuels and lubricants.

40
Indane Nano cut LPG is a commercialised product developed at R&D, which enhances the efficiency of
LPG as cutting gas in terms of high flame temperature, heat through put, low oxygen consumption, reduced
cylinder inventory, thereby leading to better economy of use.

E-Mobility

R&D Centre is pursuing cutting edge research in the field of advanced battery chemistries to develop India
specific energy storage solutions in a cost-effective manner using indigenously available materials for
development of Metal Air batteries and chemically modified lead acid batteries with improved capacity and
life cycle.

Fuels & Additives

IndianOil R&D Centre works consistently to enhance quality of fuels by incorporating additives to improve
engine performance and to reduce environmental impact with improved quality and cost effectiveness. New
patented process technologies and novel chemistry additives are developed to improve quality of existing
fuels and to produce next generation high performance products as Indane Nano cut, Premium automotive
fuels, Marpol 2020 compliant FO for marine applications and special fuels for defence forces.

41
 CHAPTER 2: RESEARCH METHODOLOGY

RESEARCH

Research means analysing, gathering, processing and interpreting data.

 The process of systematically acquiring data to answer a question or to cover a problem.

 It also means intelligent and cogently communicating the results in a report that discovers what was
discovered rom the research.

Research methodology is a way to systematically solve the research problem. Research methodology
constitutes of research methods, selection criterion of research methods, used in context of research study
and explanation of using of a particular method or technique so that research results are capable of being
evaluated either by researcher himself or by others. Why a research study has been undertaken. How the
research
has been formulated, why data have been collected and what particular technique of analyzing data has been
used and a best of similar other question are usually answered when we talk of research methodology
concerning a research problem of study. The main aim of research is to find out the truth which is hidden
and which has not been discovered as yet.

RESEARCH TYPE:

 Quantitative- Quantitative research is descriptive and provides hard data on the numbers of people
exhibiting certain behaviours, attitude, etc. Gathering numerical information that can be analysed
statistically through surveys. the aim is to classily features, count them, and construcestatistacal
models in an attempt to explain what is observed. Data is in the form of numbers and statistics.
Quantitative data is more efficient, able to test hypothesis, but may miss contextual detail

42
  Qualitative- Gathering descriptive information, usually representing verbal or narrative data through
open-ended interviews or focus groups. the am is complete detailed description. Data collected is in
the form of words, pictures or objects. Qualitative data is more rich, time consuming, and less
Generalised in nature,

METHODS OF DATA COLLECTION

In the project work primary data secondary data (both) sources of data has been used:

PRIMARY SOURCE: Primary data is information collected through original or first-hand research.

Sources of data:

• Survey

• Observations

• Interview

SECONDARY SOURCE: The secondary data, is data collected by someone other than the actual user. It
means that information is already available and someone analysed.

Sources of data:

• Biographies

• Journal articles

• Textbooks

• Library

• Company websites

• Market research report

43
 2.1 OBJECTIVES

 To serve the national interests in the oil and related sectors in accordance and consistent with
Government policies.

 To ensure and maintain continuous and smooth saddles of petroleum products by wav of crude
refining, transportation and marketing activities and to provide appropriate assistance to the
consumer to conserve and use petroleum products efficiently.

 To earn a reasonable rate of interest on investment.

 To work towards the achievement of self-sufficiency in the tied of o retaining of setting up adequate
capacity and to build up expertise in laying of crude and beryllium orocuch oldness.

 To create a strong research and development base in the field of oil refining and stimulate the
development of new product formulations with a view to minimise/eliminate their imports and to
have next generation products.

 To maximise utilisation of the existing facilities in order to improve efficiency and increase
productivity.

 To optimise utilisation of its refining capacity and maximise distillate yield from refining of crude to
minimise foreign exchange.

44
  To minimise fuel consumption in refineries and stock losses in marketing operations to eitect enerav
conservation.

 To further enhance distribution network for providing assured service to customers throughout the
country through expansion of reseller network as per Marketing Plan/Government approval.

 To avail of all viable opportunities, both national and global, arising out of the liberalisation policies
being pursued by the Government of India.

 To achieve higher growth through integration mergers, acquisitions and diversification by harnessing
new business opportunities like petrochemicals, power, lube business, consultancy abroad and
exploration & production.

2.2 SIGNIFICANCE

It is not difficult to understand why oil and gas are so important in our lives. Usage of oil and gas is not just
limited to transport, heating and electricity. Apart from being a crucial energy source, these are widely used
in pharmaceuticals, fertilisers, solvents and plastics. World’s economy as well as its survival are totally
dependent on the production and consumption of these two commodities.

Production of petrol, diesel or LPG is a very complex process and involves different stages. The oil and gas
industry can be segmented into upstream, midstream and downstream. Upstream involves exploration,
drilling and production of crude oil. It is the most capital intensive stage. Midstream involves transportation
and storage of crude oil. Downstream activities primarily involve refining of crude oil and marketing of the
finished products like petrol, diesel, kerosene, jet fuel, asphalt, LPG, LNG, etc.

Although oil and gas has been used for more than 5000 years now but large scale production of it began in
19th century. From first modern oil well drilled by Edwin Drake in 1859 (Pennsylvania, USA), there are
more than 70,000 oil and gas wells spread across the globe today. Crude oil production is 80 million barrels
per day, a substantial increase from 5 million barrels produced in 1930. Top three producers are USA, Saudi
Arabia and Russia. India is 25th in this list and produces 0.8 million barrels of crude oil per day, which is
18% of total crude oil consumption in India. India relies heavily on oil and gas imports, with 82%

45
dependency for crude oil and 45% for natural gas. This makes India third biggest oil importer after USA and
China.

Oil and gas industry has always been very volatile. Within one year, oil prices have fallen more than 50%.
Reason for high volatility can be attributed to low responsiveness or “inelasticity” of both supply and
demand to price changes. These price changes can be caused by multiple events that can affect the flow of
oil and products to market, including geo-political events, natural disasters or worldwide pandemics like the
one caused by Covid-19. Oil production capacity and consumption of petroleum products almost remain
fixed in the near term. It takes a lot of time and money to add new production blocks and similarly,
consumers find it very difficult to switch to alternate sources of energy. Major oil production comes from a
group of countries know as Organisation of the Petroleum Exporting Countries (OPEC). OPEC was founded
on 14 September 1960 in Baghdad, Iraq and although their stated mission is to work towards stabilisation of
oil markets but many economists cite it to be textbook example of cartel.

Oil and Gas are two important drivers of Indian economy. Indian dependency on oil and gas imports has
adversely affected forex reserves. India produces only 35 million tons of petroleum products against total
consumption of around 200 million tons. Similarly, India generates around 30 billion cubic metres of natural
gas against total consumption of 57 billion cubic metres. Net foreign exchange outgo due to oil and gas
imports was around USD 111.9 billion in the FY 2018-19. This is expected to increase over the next few
years as domestic output has continued to fall. India’s crude oil output fell from 36.9 million tons in 2015-16
to 34.2 million tons in 2018-19.

Indian government has been trying to reduce dependency on oil and gas imports. PM Modi while speaking at
‘Urja Sangam’ conference in 2015 had said that India needs to bring down the oil import dependence to 67%
by 2022 when India will celebrate its 75th year of independence. New Exploration Licensing Policy (NELP)
has been changed to Hydrocarbon Exploration and Licensing Policy (HELP) with focus on pricing and
marketing freedom. HELP has brought in open acreage licensing policy (OALP) which gives companies the
freedom to choose areas that they want to explore.

IOCL is committed to promoting sustainable development and improving the lives of people in the
communities where it operates. The company supports various social welfare programs, including education,
health, and environment protection initiatives.

46
Overall, the oil industry is a significant component of the global economy and plays a critical role in meeting
the world's energy demands. However, its impact on the environment and the need for sustainable energy
sources have led to increased focus on alternative energy sources and reducing the industry's environmental
footprint.

2.3 LIMITATIONS

Though much effort was made to make this project work a success, some limiting factors always remained
in the way.

The main limitations that were found are as follows:

 The project covered various retail outlets across the city. Hence, I had to go to every retail outlet
given to me for doing the survey.

 Time being major constraints, all the retail outlets could not be targeted and sampling technique had
to be used.

 Some customers refused to answer and give views to fill the questionnaire.

 I had to introduce myself and ask the customers for their feedback within the stipulated time in which
their vehicles were getting filled which was a major drawback.
47
  There was only very few open ended questions but due to work pressure and reluctance, many
customers did not give proper suggestion and feedback.

 The answers received were based on respondents perception or understanding of the question.

 Some of the respondents were far from being specific and gave very general answers.

 Some customers thought of me being a salesman of a product and did not even care to listen.

CHAPTER 3: LITERATURE REVIEW

Shweta Verma(2011) analysed the motives and benefits of CSR initiatives of Indian companies; a semi
structured interview was conducted from 150 Delhi based investors and concluded that most of the investors
believe that social responsibility of companies is to satisfy them through maximum returns and if part of the
profits is distributed for social activities, their returns will be affected

 Yaghoub Alavi Matin et al. (2011) examined the relationship between CSR and the financial
performance of companies manufacturing pharmaceutical products. The authors concluded that there
is no positive relationship between CSR variables with firm financial performance.

 Richa Gautam et al. (2010) examined CSR practices of companies operating in India and maps
against GRI standards and used-content analysis technique to Access and concluded that all activities
undertaken in the name of CSR are mainly philanthropy or an extension of philanthropy.
48
  Dr.Meeta Nihalani and Ashish Mathur (2011), concludes that, Most of the organisations in India are
involving CSR as a part of their Business Strategy and investing around 0.02 percent of their profit
and integrating CSR into their core practices.

 Srivastava. A.K. et al. in their paper Corporate Social responsibilities: A Case Study Of TATA
Group tried to find out the scope of corporate social responsibility and getting an insight in CSR
practices in the light of the case study of the TATA Group. The study concluded that a business is an
integral part of the social system it has to care for varied needs of the society and the Tata group has
gone a long way in fulfilling its duty and responsibility towards the society and the nation.

 Edner D. In his paper Assessing Corporate Social Responsibility : CSR-Scan. The study aims
identify the CSR potential within an organisation is the main objective of the proposed assessment
model to assure the derivation of adequate recommendations of action so that in the long run, CSR is
satisfyingly integrated in all activities of an organisation . The study concluded that sponsoring,
human capital development, stakeholder’s communication and CSR strategies are the important
factors for assessing the role of CSR.

 Parida, and Kumar (2012) in their study companies nowadays are operating not only to earn
profit but also to take into consideration the society, as the companies are to compensate for
the benefit that they are receiving from the society. Moreover, the socialresponsibility
nowadays has taken a new direction and new shape with the demand of both the society
and the organisation together.

 Mishra and Suar (2010) examined whether CSR towards primary stakeholders influenced the
Financial Performance (FP) and the Non-Financial Performance (NFP) of Indian firms. The result
found that stock-listed firms show responsible business practices and better financial performance
than the non-listed firms. When study controlled confounding effects of stock-listing, ownership and
firm size, a favourable perception of managers towards CSR is noticed with increase in FP and NFP
of firms.

 Banerjee (2009) examined the relationship between corporate governance score (CG) and the firm
level performance using CG score obtained from CRISIL, as a proxy for firm level governance
quality. Study used Tobias Q as measure of firm level performance and employed the fixed effect

49
 regression technique to test the nature of relationship between CG score and market value and
indicated positive relationship

 Deepika and Dhivya (2019), the analysis of financial statements is to obtain better understanding of
firm’s position. The objective of the study was to know the profitability and solvency of the business
concern. The study covered a period of 2012-16. The research methodology was based on secondary
data. They found that sales were in fluctuating trend. They concluded that profitability and solvency
was upto satisfactory level and their growth was fluctuating.

 Paul (2016) attempted to discover two components of a global mindset – whether Employee
Sensitivity to CSP (ESCSP) and Cross-Cultural Sensitivity (CCS) was convergent or divergent, or
whether there was any connection between them at all. They also suggested that companies could
find international managers who are sensitive to both CSP standards and cultural values and norms.

 Singhania (Paul 2015) determined the impact of corporate governance score on financial
performance of companies in India between the years 2000 and 2015. The analysis highlights that
corporate governance scores, when controlled with other variables, have a significant impact on
Indian companies.

 Lu and Bhattacharya (2014) developed and tested a conceptual framework to predict three things-
first, customer satisfaction partially mediates the relationship between CSR and firm market value;
second, corporate abilities (innovation and product quality) moderate the financial returns to CSR
and last, these moderated relationships are mediated by customer satisfaction. Analysis of large-scale
firms found that firms with low innovation capability show reduced customer satisfaction levels and
thus may harm market value from CSR.

 Bedi (2009) studied the relationship between social and financial performance of Top Indian firms
for the financial year 2007-08, as rated by NGO Karmyog. The analysis found a positive relationship
between CSR and financial performance. The descriptive and inferential measures showed that
corporate social expenditure relies upon the financial performance of a firm.

 Udayasankar (2007) discussed that Small and Medium Enterprises (SMEs) constituting 90% of the
worldwide population of businesses are less likely to participate in CSR initiatives due to their
smaller scale of operations, resource access constraints and lower visibility. Large firms are equally

50
 motivated to participate in CSR in terms of visibility, resource access and operating scale. The study
suggests a U-shaped relationship between firm size and CSR.

 Belal (2001) stated that although extensive research on CSR shaping a firm’s performance has been
put through in developed countries, there is a paucity of such studies in India. Statistically examined
studies on CSP and CFP relationship including other factors based on authentic CSR ratings are
missing for Indian firms. This motivated the researcher to analyse the effectiveness of CSR on
corporate performance and competitiveness in a fast growing economy like India and contribute to
the ongoing debate by providing empirical evidence and thus form the rationale of conducting the
study.Therefore, the present study attempts to analyse the relationship and discuss the effectiveness
of social performance and financial performance along with competitive performance of select Indian
companies.

 Vijayakumar (2002) carried out a study entitled “Assessment of Corporate Liquidity- A Discriminate
Analysis Approach” in which 5 Co-operative sugar mills and 5 private sector companies in Tamil
Nadu were taken into consideration among 14 cooperative sugar mills and 14 private sector sugar
mills. Only those units which were established before 1984 and has a crushing capacity of 2000
metric tonnes per day were selected for the study. The discrimination analysis was employed to
determine the combined effects of the ratios. The author concluded that the Co-operative sector was
classified as a poor risk in all the selected years on the basis of current and liquid ratio. The author
further concluded that the same became good risk during the years 1986-87 and 1987-88 on the basis
of discriminating „Z‟ score. The study revealed that the overall liquidity position of the industry was
satisfactory.

 Divya Bharathi. R & Ramya. N (2020)5 in their research paper examined the liquidity, profitability
to evaluate the position of the company. The current ratio needs to be improved, steps should be
taken to improve the liquidity level. The overall performance of the company is better. The financial
performance of the company should be monitored and apt decisions are to be made.

 V.Sugumar &N.Prema (2019)6 carried out this study to identify liquidity and financial position of a
company. The study was conducted using ratio analysis and statistical tools. Profitability and long-
term solvency was satisfactory. But, the liquidity position was weak and steps must be taken to solve
its short- term solvency. The author concluded that the overall financial position of IOCL is feasible.

51
 CHAPTER 4: DATA ANALYSIS AND INTERPRETATION

Before the Companies Act 2013, CSR was voluntary. But after the enactment of the Companies
Act 2013, it became mandatory for the company to perform CSR activities if the company satisfy

52
 the condition laid down in the Act and follow the CSR Rules 2014. Let us analyse the CSR
spending pattern of petroleum industries after the Companies Act, 2013.

Table 1 shows the comparison of CSR practices of petroleum companies after the Companies Act. The comparison is
made mainly to show the deficiency of spending on CSR with the mandatory amount of requirement to be spent on
CSR. However, from the table, it is clear that out of six companies, four companies spent on CSR higher than the
amount required to be spent on CSR, other companies spent less than the required amount, i.e., not even fulfilling the
requirement of the Act.

From table 1 it is clear that during the FY 2014–15, BPCL has to spent INR 78.59 Cr. whereas BPCL spent INR 33.95
indicating that there is still a deficit of INR 44.64 Cr. That has to be spent on CSR by BPCL. OIL has to spend INR 60.54
but spent INR 113.31 Cr. meaning thereby that OIL has spent a surplus of INR 52.77 Cr. than that of the requirements, 2%
the average net profit of HPCL during the FY 2014–15 was INR 35.81 Cr. while HPCL actually spent INR 34.07 Cr. Fr
these figures it is clear that HPCL has to spend on CSR an amount of INR 1.74 Cr. to satisfy the provision of the Act. IOCL h
to spend on CSR INR 115.32 Cr. but actually spent INR 116.01 Cr. indicating that INR 0.69 Cr. the amount has on CSR th
that of the requirement. GAIL has to spend on CSR INR 76.24 Cr. but actually has spent INR 49.84 on CSR. Clearly indicat
that there is a deficit of INR 26.4 Cr. the amount that has to be spent on CSR by GAIL. ONGC has to spend on CSR IN
405.02 Cr. and actually spent on CSR amounted to INR 495.23 Cr., i.e., invested a surplus of INR 90.21 cr. on CSR during
FY 2014–15.

After the Companies Act 2013, OIL spent 187.2% above the required amount followed by ONGC 122.3% and IOCL
100.6%. Whereas HPCL, GAIL and BPCL spent 95%, 65.4% and 43.2% respectively. Again in the financial year 2014–15
some of the petroleum companies spent amount more than the mandatory amount and some of the companies spent less
than the mandatory required amount. But the overall spending of CSR by the petroleum companies is 109.2% more than
the mandatory required amount.

53
The pattern of CSR spending by the petroleum industries before the Companies Act, 2013

There was no rule before the Companies Act 2013 but the company used to spend a significant portion of
their profit on CSR. Though there was no rule related to CSR before the Companies Act 2013 still 2% of the
average net profit of previous three years has been calculated to see the pattern of CSR spending of state-
owned petroleum industries in India. The spending pattern on CSR can be presented with the help of the
Table 2.

54
 Since the Table 2 showed CSR practices before the Companies Act 2013 but also the 2% of the average net profit o
previous three years has been calculated in order to see the spending pattern on CSR by petroleum companies. As there

was no rule and the companies can spend on their own on CSR. Since the The Table 3 reveals the reporting practices
relating to CSR of state-owned petroleum companies in India. The mandatory reporting period in the above table indicates
the period after the Companies Act 2013. And the voluntary reporting period indicates the period before the Companie
Act 2013. As per the CSR Rules 2014 it is necessary for all those companies who are required to perform CSR activities
by satisfying the rules must report their CSR activities in the Annual Report of the company. And in the above table, i
shows that all the state-owned petroleum companies have reported their CSR activities in the Annual Report of the
company as per the format is given in the CSR Rules 2014 for the Financial Year 2014–15. It indicates that all the state
owned petroleum companies are abiding by the Act. But taking into the voluntary reporting period (i.e. the period before
the Companies Act 2013), it means that performing on CSR is voluntary in nature in one sense and reporting of CSR
activities in the Annual Report is also voluntary in Companies Act 2013 redrafted. No company spend exactly 2% of the
average net profit of the previous three years.

As per the CSR Rules 2014 it is mandatory for those companies who are engaged in CSR practices must display its C
activities on the Annual Report as per the format is given in the CSR Rules 2014. Let us see how many companies display th
CSR activities in the Annual report nature. Since the period is voluntary in nature and therefore the companies did not rep
the CSR activities in the Annual Report. But taking in to account the mandatory period again, it can be said that the industr
are aware of the New Companies Act 2013 and therefore reported their CSR activities in the annual report of the companies.

Comparison of CSR practices Before and After Companies Act 2013

CSR is a term introduced in the Companies Act 2013 but before the Act came into force it was voluntary, i.e., any
company willing to spent on CSR can spend. But after the Companies Act 2013 CSR has become mandatory for certain
industries those who will fulfil the requirement of the act. Let us compare the CSR practices of state-owned petroleum
companies before and after the companies act.

55
The Table 4 shows the pattern of spending on CSR after the Companies Act 2013 and taking two years average of the
amount spent on CSR before the Companies Act 2013. However from the table, it can be seen that out of six industries the
amount spent has increased to five companies while in case of one company the average amount spent on CSR before the
Companies Act 2013 has decreased.

From Table 6 it appears that the all the state-owned petroleum companies have constituted the CSR Committee and
displayed their CSR activities on the website of the industries. It is the mandatory requirement of the companies to

56
constitute CSR Committee and also to display CSR activities on the website as per the CSR Rules 2014. Thus all the
industries are fulfilling the requirement of the law, i.e., constituting CSR Committee and also displayed CSR activities on
the website.

DEBTORS TURNOVER RATIO ANALYSIS

Table 3: DTR and ACP of IOCL from 2005-06 to 2009-10

 From the table it is seen that Debtors turnover ratio of IOCL shows an increasing trend with the exception of
the year 2009-10 and it indicates that the debts are being collected more quickly. The changes of the ratio
shows that the efficiency in the company’s credit policy or better performance in its ability to collect from
its debtors. For the Year 2009- 10 the sales has decreased for the company by 5.79%. Though the Debtors
has also decreased but not that the same ratio, so the ratio has jumped up. The reasons cannot be sited due to
non availability of sufficient data.

57
  From the table it is seen that the Debtors Collection Period of IOCL is decreasing year by year except 2009-
10 which is a positive trend and it indicates efficient debtor management of IOCL. Effective debtor
management is minimising the collection period and also the bad debts incurred by the company. In 2009-10
the ACP has slightly increased than the previous year

 Moreover as we can see from Table 3 the Sales of IOCL is increasing year by year but the the Sundry
Debtors are more or less constant and it has actually decreased in the year 2008-09 by 12.9% when the
Sales had increased by 15.2%. This shows the efficiency of collection procedure and the credit policies of
the company.

Schedule for debtors

58
Table 4 shows the Breakup of the Total Sundry Debtors under different heads like Over Six Months and Other
Debts.

 Among the debts over 6 months 71.23% has been proposed to be doubtful on an average. And the whole of
it from Other Companies. The Debts over 6 months for subsidiary companies has been considered as good.

 Among the Other Debts, the debts considered Good and Unsecured by other companies contribute a
significant part like 69.85% on an average

 From the Fig.12 it can be seen that even though the Debts considered good and Unsecured has decreased in
2008-09 but the debts considered doubtful has been increasing over the years and this whole part is
contributed by the Other Companies.

 From the Fig.13 it can bee seen that the Debts from Subsidiary Companies has fluctuated over the years but
in case of Other Companies the debts has increased round the years expect in the year 2008-09 when there
was fall of 6.74%.

 So in Conclusion, IOCL should focus more on the Older debts and the debts from other companies to
reduce the Bad Debts which has increased over the years. Though the debts from other companies is
59
 increasing year-wise it is not an alarming situation because the Sales as-well-as Customers has also
increased over the years.

LIQUIDITY RATIO ANALYSIS

From the above Table 5 it can be seen that the current ratio is getting decreased in the year 2006-07 and in 2008-
09, whereas it is considerably high in the year 2007-08.

 The Quick Ratio is keeping constant in 2005-06 & 2006-07 but in 2007-08 it is climbing up and then it is
getting decreased in 2008-09.

 The Cash Ratio is remaining almost constant except in 2006-07 when it is getting increased slightly.

 In the case of 2006-07 the decrease in current ratio is mainly due to the the following:
The current liabilities and provisions has increased at a higher rate than the current assets. Thus there has
been an decrease in the working capital of the company and the liquidity had decreased.

60
  In the case of 2007-08 the current ratio had increased drastically to 1.5 along with the quick ratio while the Ca
Ratio decreased.
The main reason behind this is the soring rise the fuel prices and the recessionary period which had hit the world

 There has been a steep rise in the inventory level along with the loans and advances but along with this
current liabilities also increased. The cash demand was met due to this.

 But this effect was not shown in the Cash & Bank balance as it maintained a steady Cash Ratio.

 The rise in the inventory level was mainly due to the fall in the demand of the petroleum products due to rise
in the prise which is according to the “Laws of Demand” saying that as the Price increases the demand
decreases.

 But the company’s management must be given the credit to maintain such good Financial condition amidst
the odd which every industry faced during this period as the ratio is within the threshold limit of 2:1.
Moreover the company took strict control on the Debtor position and never allowed the Debtors to rise up
abruptly thus minimising the bad debts.

 In 2008-09 as the situation normalised, the Current Ratio decreased to 1.25:1 and the Quick Ratio decreased
as well. The main reason behind this are the following:
There has been a steep fall in the Inventory Level as the excess stock was liquidated.
More strict control was implemented on the Loans & Advances.

 In 2009-10, the Inventory has increased by 44.75% , which has resulted in the increase of the Current Ratio,
when actually the Quick Ratio has decreased to 0.51:1. But the Cash Ratio has increased also which shows the
Absolute Liquidity has increased for the Company.

The theme of Pehle India Phir Oil is truly depicted through IndianOil Corporate Social Responsibility
(CSR). IndianOil’s CSR is guided by its corporate vision of caring for the community and the environment.
IndianOil believes that CSR is the continuing commitment to conduct its business activities ethically and
contribute to the economic development while improving the quality of lives of the local community,
especially in the vicinity of its establishments and the society at large. IndianOil, as India's largest Energy
PSE, has always been going beyond business priorities to align with national commitments. IndianOil has
long standing CSR legacy, which started long before the CSR legislation under Companies Act 2013 came
61
into effect. In the last 28 years, IndianOil has contributed Rs.3,347 crore towards various community
development and CSR projects improving the quality of lives of societies/ communities primarily residing in
the vicinity of our units/ installations. IndianOil’s Corporate Social Responsibility (CSR) thrust areas include
‘Safe drinking water and protection of water resources’, ‘Healthcare and sanitation’, ‘Education and
employment-enhancing vocational skills’, 'Rural development', 'Environment sustainability', ‘Empowerment
of women and socially/economically backward groups’, etc. IndianOil undertakes CSR activities across the
country, from Leh in J&K in the North to the North-eastern States, to Gujarat in the West and Tamil
Nadu/Kerala in the South.

Key CSR initiatives of Indian Oil

Indian Oil Arogyam the flagship CSR scheme was launched in 2018-19. Twelve Mobile Medical Units
(MMU) each with a 4-member team consisting of 1 Doctor 1 Nurse, 1 Nursing Attendant and 1 Driver-cum-
community Mobilizer have been operating in the catchment areas of 3 Refinery Units i.e.,
Mathura, Bongaigaon & Paradip. The MMUs cover more than 140 villages in the catchment areas of 3
Refinery Units. In 2018-19 patient footfall in the target geographies was about 90,000.

Skill Development Institute, Bhubaneswar (SDI-B) was established on 9th May 2016 with an aim to provide
opportunities for skilling to the unemployed and underprivileged youth of Odisha and to provide skilled
manpower to the industry. Initially SDI-B started operation in 2 trades viz. Industrial Electrician & Welder.
However, with increasing demand of skilled manpower, 6 new courses were added viz. Computer Data
Application (only for girls), Fitter Fabrication, Instrumentation Technician, Pipe Fitter (City gas
Distribution), Solar PV Installation and LPG Mechanic. About 240 students per batch are being skilled in 8
trade courses, which are of 3 to 6 months duration each. Since inception, 810 underprivileged youth were
skilled and certified with over 85% placements. Hon’ble President of India laid the foundation of the
permanent campus of SDI-B on 18.03.2018 at Taraboi Jatni, Odisha, which will be a mega-world-class
model skill academy to be set up with technical support from National Skill Development Corporation
(NSDC). Once functional, about 3,000 to 4,000 youth will be trained every year.
Comprehensive Cancer Care
According to the report released by the ICMR and the Bengaluru-based National Centre for Disease
Informatics and Research, the number of cancer cases in India is estimated to be 13.9 lakh in 2020 and may
increase to 15.7 lakh by 2025. IndianOil being a responsible corporate has come up with a focused approach
towards providing affordable cancer care treatment to the society. IndianOil has contributed Rs.66.0 crore
towards phase-II expansion of Tata Medical Centre at Kolkata and also provided various cancer care
equipment at hospitals in Barpeta, Muzzafarpur, Varanasi, Sangrur, Mumbai, etc.

IndianOil Vidushi
62
IndianOil Vidushi project, started in 2018, provides specialized coaching and mentoring is provided to
under-privileged girls after class XII, to help them succeed in JEE Mains, JEE Advanced & other Central
and State Engineering College Entrance Examinations. Till 2019-20, a maximum of 30 girls were selected
for each of the 4 residential centres at Noida, Bhubaneswar, Patna and Jaipur through written tests and
personal interviews, on merit–cum-means basis. The entire cost for specialized coaching, study material,
boarding, food & other consumables, blankets, hygiene kits, dresses, health insurance etc. is borne by
IndianOil. However, due to restriction of COVID-19 pandemic in 2020-21, online classes were started for
120 girls from 2 centres. Out of the 409 girls enrolled since inception, 55 Students got selected in IITs, 96 in
NITs and 188 students in various other Engineering colleges. Scholarship is also given to students after
getting admission in IITs / NITs / government engineering colleges, for 4-year graduate programs [ ₹ 5,000
per month for IITs / NITs; ₹ 4,000 per month for other government engineering colleges. So far about 200
Vidushis have availed the scholarship.

Skill Development Institute, Bhubaneswar, Odisha

Skill Development Institute, Bhubaneswar (SDI-B) has been set up with an aim to provide livelihood
enhancing skill development training to unemployed & underprivileged youth and to provide skilled human
resources to the job ready industry. The multi skilling institute is equipped with international standards of
training facilities, imparting world class skill development courses, supported by industry experts. SDI-B
prepares students with adequate skills for pursuing careers as Industrial Electricians, Welders, Computer
Data Application (only for girls), Fitter Fabrication, Instrumentation Technicians, Pipe Fitters (City Gas
Distribution), Solar PV Installation and LPG Mechanics. The course duration ranges between 3 and 6
months. In FY 2021-22, 284 youth have been trained under various trades. Various Centres of Excellence
(CoE) have been established in collaboration with internationally reputed institutions / industry partners such
as Schneider Electric, Cisco, Intel, Siemens, Kemppi, etc., to provide relevant skill development training
with high potential for generating employment. Then institute has a consistent track record and has provided
employment to over 90% of students.

Institute of Chemical Technology, Mumbai-IndianOil Odisha Campus (ICTM-IOC), Bhubaneswar, Odisha

In a first-of-its-kind initiative, IndianOil collaborated with Institute of Chemical Technology, Mumbai to set-
up an off-campus of the Institute of Chemical Technology, Mumbai at Bhubaneswar. The institute
christened as ‘ICT Mumbai IndianOil Odisha Campus, Bhubaneswar’ (ICTM-IOC), was inaugurated by the
Hon’ble President of India in 2018. The institute has been planned to evolve into an R&D / innovation hub
to carry out high-end research in chemical engineering, petrochemicals, textiles, pharmaceuticals and energy,
in order to become a world-class Centre of Excellence in Chemical Engineering & Technology. The first
academic session started in 2018 with the enrolment of 60 students for the 5-year integrated M. Tech
Programme. Presently, 231 students are undergoing 5-year integrated M. Tech Programme; 48 students are
63
undergoing 2-year full time M. Tech. Programme; 12 industrial personnel are pursuing 2-year Executive M.
Tech course and 37 students are pursuing their PhD at the Institute.

IndianOil Aarogyam
‘IndianOil Aarogyam’ a flagship CSR project was initiated in 2018-19 with the objective to provide primary
healthcare at the doorstep, particularly in rural and under-served areas. Twelve Mobile Medical Units
(MMU), each with a 4-member medical team consisting of 1 Doctor, 1 Nurse, 1 Nursing Attendant and 1
Driver-cum-Community Mobilizer have been operating in the catchment areas of 3 Refinery Units, i.e.,
Mathura (Uttar Pradesh), Bongaigaon (Assam) & Paradip (Odisha). The MMUs conduct health screening,
basic diagnosis and provide medical treatment. The MMUs cover more than 140 villages near the 3
Refineries. Since inception more than 9.5 lakh patient have been benefited from the scheme, out of which
4.73 lakh were female patients.

Assam Oil School of Nursing, Digboi, Assam

India has an average of 1.7 nurses for every 1,000 people, 43% less than the World Health Organisation
norm (3 per 1,000). India needs 20 lakh nursing personnel to fill this wide gap. The COVID-19 pandemic
has further increased the requirement for qualified nursing personnel. The Assam Oil School of Nursing
(AOSN), Digboi was established in 1986 with the dual objective of providing stable career and livelihood
opportunities to young underprivileged girls and ensure availability of qualified nurses in the country. AOSN
offers 3-year diploma in General Nursing and Midwifery (GNM) to young girls and enrols 30 students every
year. For the 4-year B.Sc. (Nursing) course, 30 students are admitted every year (since 2014). During 2021-
22, 30 girls each were enrolled for GNM and B.Sc. (Nursing) courses. Since inception, 497 students have
completed the GNM course, and 119 students have completed the B.Sc. (Nursing) course with 100%
placement record.

Swarna Jayanti Samudayik Hospital, Mathura, Uttar Pradesh

Swarna Jayanti Samudayik Hospital at Mathura (Estd.1999) is a 50-bed hospital providing medical treatment
to residents near Mathura Refinery, Uttar Pradesh. The hospital provides free treatment to the destitute and
offers subsidized treatment to others. Hospital also organizes various medical camps including sterilization
camps, general check-up camps, eye camps etc. During last 5 financial years, more than 2.5 lakh patients
were treated at the hospital, out of which operative procedures were conducted on 2670 patients. During 2nd
64
wave of COVID-19, within a short span of 15 days, hospital was converted into the 104 bedded Covid
hospital with oxygen facility.

Assam Oil Division Hospital, Digboi, Assam

Assam Oil Division Hospital, Digboi (Estd.1906) is a 200-bed hospital with modern facilities. It caters to the
population residing near Digboi Refinery and other nearby areas of the Northeast. Every year, about 1 lakh
patients are treated at the hospital, including non-employees. The hospital admits about 4,000 patients and
conducts operative procedures on about 2,000 patients every year. General as well as specialized health
camps are also organized regularly by the hospital to reach out to poor villagers in the vicinity, who
otherwise have no access to medical consultations or treatment. During last 5 financial years, more than
40,000 non-employee patients were treated at the hospital.

Remote Pilot (Drone) Training Program for Transgender persons

Transgender community is still facing discrimination in education, employment and are mostly deprived of
basic human rights. To address the above-mentioned concerns an idea to train them as remote pilots (Drone
Operators) was mooted. After scrutiny a mixed batch of 15 youngsters consisting of 9 Transgender and other
boys and girls was enrolled for the project. The intervention further involved organizing spoken English cum
motivational program to ensure that they can understand and communicate in English which is the primary
pedagogical language of the centre. Once equipped with prerequisites, the participants were enrolled for
fully sponsored 10-day remote pilot training program at Madras Institute of Technology (MIT), Centre for
Aerospace Research, Chennai. The module is designed to train participants in operation of small & medium
category of drones that weigh upto 150 KGs and includes 4-day classroom training with 6 days hands on,
simulation and practical (field flying) training to ensure proper skill transfer.
The participants were provided with DGCA Certification for drone operation which has the potential for
employment in other Drone related activities in many areas like Forest department, Agriculture, Medical,
Mining, Surveillance and Photography. Four of the participants have been absorbed as drone trainers at MIT,
Chrompet in Centre for Aerospace Research, Anna University and balance five got offer from Greater
Chennai Corporation for spraying Larvicide Mosquito Oil on wastewater river bodies to spot breeding of
mosquitoes; making them self-reliant .

Scholarships

65
IndianOil awards 2600 Scholarships for meritorious students all over India, under the IndianOil Scholarships
Scheme for each academic year.

As part of IndianOil's social responsibility programme, the scheme provides for attractive scholarships to
bright students selected on 'merit-cum-means' basis. For each academic year, 2600 scholarships covering the
first year students of 10+ / ITI, Engineering, MBBS and MBA, have been formally announced through
newspaper advertisements inviting applications under the IndianOil Scholarships Scheme.

As part of the scheme, special encouragement is being given to girl students, physically challenged students,
and students from J & K as well as the Northeast States.

IndianOil Sports also awards scholarships to promising young players with a view to encourage talent and
create a pool of sportspersons from whom to select sport appointees to the Corporation.

Green Initiatives

Low Sulphur (0.5%) Diesel was introduced in metros from April 1996. Extra-low Sulphur (0.25%) Diesel
was introduced in the eco-sensitive Taj Trapezium area from September 1996, in Delhi from October 1997,
and across the country from 1st January 2000.

Diesel with 0.05% sulphur content was introduced in the metros in 2001. Unleaded Motor Sprit (petrol or
Gasoline) was made available all over the country since February 1, 2000.

Green fuels (petrol and diesel) conforming to Euro-III emission norms have already been introduced in 13
cities/states; the rest of the country is getting BS-II fuels. The Centre has been certified under ISO-
14000:1996 for environment management systems.

All IndianOil refineries fully comply with the prescribed environmental standards and incorporate state-of-
the-art effluent treatment technologies. Sustained efforts are being made to further improve the standards by
introducing new state-of-the-art technologies further improve the existing standards and facilities.

CSR Budget Allocation

(approx Rs.10 crores)

▪ National Calamities : 35%

▪ Donations : 5%
▪ Community Development: 30%
▪ Indian Oil Scholarships: 20%
66
 ▪ Other activities: 10%

CONCLUSION:

All the Liquidity Ratio are well within the alarming limits of the Industry. But the Current Ratio is highly
fluctuating for the Company whereas the Acid Test Ratio is more or less stable. This shows that the
fluctuation is due to the Inventory level. So company should try to maintain an even inventory level by
following a proper Inventory Control Technique/Model like EOQ Model or ABC Model.

CHAPTER 5: CONCLUSIONS AND SUGGESTIONS

CONCLUSION

IOCL is a dream job for many engineers and a great organization to work with. A Fortune 500 IOCL
offers its employees the best of both corporate and government worlds. With immense growing and
learning opportunities it is the most coveted job among engineering graduates.

Indian Oil Corporation Ltd. (IOCL) is the flagship national oil company in the downstream sector.
The Indian Oil Group of companies owns and operates 10 of India’s 19 refineries with a combined
refining capacity of 1.2 million barrels per day. These include two refineries of subsidiary Chennai
Petroleum Corporation Ltd. (CPCL) and one of Bongaigaon Refinery and Petrochemicals Limited
(BRPL).

The 10 refineries are located at Guwahati, Barauni, Koyali, Haldia, Mathura, Digboi, Panipat,
Chennai, Narimanam, and Bongaigaon. Indian Oil’s cross-country crude oil and product pipelines

67
 network span over 9,300 km. It operates the largest and the widest network of petrol & diesel stations
in the country, numbering around 16,455.

Indian Oil Corporation Ltd (IOCL) is India’s flagship national oil company with business interests
straddling the entire hydrocarbon value chain – from refining, pipeline transportation and marketing
of petroleum products to exploration & production of crude oil & gas, marketing of natural gas and
petrochemicals.

68
SUGGESTIONS

The OIL suggestion scheme is aimed at promoting total involvement of all the eligible employees
through willing participation in improving productivity of the company by tapping their creative thinking
& ingenuity. To stimulate and encourage all eligible employees to give suggestion.

 The suggester will submit the suggestion in the prescribed form (Annexure-I) to his/her
Suggestion Co-Ordinator (SC)

 SC will tear off the acknowledgement slip and hand it over / send to the suggester
with departmental suggestion number with a copy to Head - (T&D). The suggester in all
future correspondence on his/her suggestion will quote this suggestion number.

 SC will discuss the suggestion details with the suggester, if required, so as to form an opinion
regarding feasibility of implementation of the suggestion and ask to capture the intended
meaning of the idea / suggestion properly particularly those based on lateral thinking which may
not be clearly expressed. The SC should also try through discussion to encourage the
suggester in all possible ways to enable the suggester to overcome his / her lack of confidence /
apprehensions, if any. In case of minor suggestion, the suggester will implement the suggestion
after receiving the consent of section in-charge. For other suggestions not involving high cost,
major change in process / design / procedure, or multifunctional nature will be discussed
with HOD before implementation. After implementation of suggestion SC will evaluate the
suggestion as per the laid down evaluation criteria (Annexure-II) and recommend for
award. SC should carefully consider the suggesters so that no innovative idea is missed
out and the scheme is used as a vehicle for stimulating and capturing innovations.

69
 CHAPTER 6: BIBLIOGRAPHY

 Indian oil cooperation ltd

https://iocl.com/
 Indian oil Wikipedia
https://en.wikipedia.org/wiki/Indian_Oil_Corporation
 Indian oil cooperative social responsibility
https://iocl.com/AboutUs/corporatesocialresponsibility.aspx
 Indian oil capital marketing ltd
https://www.capitalmarket.com/Company-Information/Information/About-Company/Indian-Oil-
Corporation-Ltd/12002
 Indian oil shareholders pattern
https://iocl.com/InvestorCenter/ShareholdingPattern.aspx
 Indian oil RTI information manual
https://iocl.com/Talktous/RTIIOCManual.aspx
 Indian oil energy of India
https://iocl.com/AboutUs/contacts.aspx
 Indian oil employees benefit
https://www.glassdoor.co.in/Benefits/Indian-Oil-India-Benefits-
EI_IE6341.0,10_IL.11,16_IN115.htm
Indian oil Environment management
https://iocl.com/AboutUs/Environment-Management.aspx
 Indian oil product and service
https://iocl.com/Products/SpecialProducts.aspx
 Servo lubricant and gas oil
https://iocl.com/Products/MotoristLubesGreases.aspx
 Organization of Indian oil Report by Akshita Akhil
http://akshitaakhil.blogspot.com/2016/07/organizational-structural-report-of.html
 Leaderships, labor, employees of Indian oil
https://iocl.com/aboutus/Management.aspx

70