A Project Report

On
“THE BRAND EXCELLENCE ON INDIAN OIL CORPORATION”
Submitted to
Indian Oil Corporation Limited

Submitted by

Mohammed Yasir Ruknuddin

REG NO:08b61626

In partial fulfillment of the requirement for the Degree

Of
BACHELOR OF BUSINESS ADMINISTRATION
At
KARNATAKA UNIVERSITY, DHARWAD

ANJUMAN INSTITUTE OF MANAGEMENT

1
 BHATKAL
2009-2010

CERTIFICATE

This is to certify that Mr. MOHAMMED YASIR RUKNUDDIN of B.B.A 2nd year
(Reg. No. 08b61626) had successfully undergone the implant training of 30 days in
“KAMAKSHI PETROL BUNK” BHATKAL and had submitted this report entitled
“THE BRAND EXCELLENCE ON INDIAN OIL CORPORATION” for the year
2009-10 in partial fulfillment of the requirements for the award of Bachelor Degree
in Business Administration of Karnataka University Dharwad under the guidance of
Prof. SHABNAM

PRINCIPAL Prof. SHABNAM

(Prof. ZAFARULLAH KOKATNUR) (Internal Guide)

2
DATE:16/01/2010

PLACE: BHATKAL

DECLARATION

I here by declare that this project report entitled “THE BRAND EXCELLENCE
ON INDIAN OIL CORPORATION” is prepared by me towards the partial fulfillment
of the requirement of the Bachelor of Business Administration course of the Karnataka
University, Dharwad, under the guidance of Miss Shabnam Savanur

I also declare that this project report has not been submitted at any time to any other
university.

Name: MOHAMMED YASIR RUKNUDDIN

Reg. No: 08b61626

3
Date:16/01/2010

Place: BHATKAL

Acknowledgement

A formal statement of acknowledgement will hardly meet the ends of the justice in
the matter of expression of my deeply felt sincere and allegiant gratitude to all
those who encouraged me and helped me during my study.

It gives me immense pleasure, to express my unfeigned and sincere thanks and

gratitude to Miss. SHABNAM SAVANUR faculty Anjuman Institute Of
Management for her assistance, advice and support throughout the preparation of
this report.

I express my sincere thanks to our beloved principal Prof. ZAFRULLAH

KOKATNUR, for giving valuable support and encouragement in preparing this
report.

4
I am also thankful to Mr.NAGESH BHAT for giving me valuable information
regarding his concern.

I am also very thankful to all my respondents who took time out of their busy
schedules and helped me in carrying out this project.

TABLE OF CONTENTS PAGE NO

1. Introduction 6
2. Company Profile 8
• Petrochemicals
• Oil Exploration & Production
• Gas
• Bio-fuels
• Wind Energy Business
• Consultancy
• Globalization Initiatives
3. Objectives & Obligations 12

4. Directors review 23
• Refineries
• Pipelines
• Marketing

5
 • Research & development
• Planning & business development
• Finance
• Human resources

5. Awards and recognition 33

6. Management 34

7. Major units 40

8. Major projects 42

9. Business 46
• Refining
• Pipelines
• Marketing
• R&D
• Petrochemicals
• Gas
• E&P
10. Initiatives 57
• Integrity pack
• Environment
• IndianOil Academic Scholarships
• IndianOil Sports Scholarship
• Corporate Social Responsibility
• Global Compact Initiative

11. Recognitions
64
• Distinctions
• Awards & Accreditations

12. Annexure 74
13.An Introduction to Kamakshi Auto Service 80

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14. Conclusion, Suggestion & finding 81
15. Bibliography 82

INTRODUCTION

IOC (Indian Oil Corporation) was formed in 1964 as the result of merger of Indian Oil Company
Ltd. (Estd. 1959) and Indian Refineries Ltd. (Estd. 1958).

Indian Oil Corporation Ltd. is the highest ranked Indian company in the prestigious Fortune
‘Global 500’. It was ranked at 135th position in 2007. It is also the 20th largest petroleum
company in the world.

Indian Oil Corporation Ltd. is currently India's largest company by sales with a turnover of Rs.
247,479 crore (US $59.22 billion), and profit of Rs. 6963 crore (US $ 1.67 billion) for fiscal
2007.

Indian Oil and its subsidiaries today accounts for 49% petroleum products market share in India.

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Indian Oil group has sold 59.29mn tonnes of Petroleum including 1.74mn tonnes of Natural gas
in the domestic market and exported 3.33mn tonnes in the yr 2007-08.

VISION OF IOCL

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 OF IOCL

IOCL has the following mission:

• To achieve international standards of excellence in all aspects of energy and diversified

business with focus on customer delight through value of products and services and cost
reduction.
• To maximize creation of wealth, value and satisfaction for the stakeholders.
• To attain leadership in developing, adopting and assimilating state-of- the-art technology
for competitive advantage.
• To provide technology and services through sustained Research and Development.
• To foster a culture of participation and innovation for employee growth and contribution.

8
 • To cultivate high standards of business ethics and Total Quality Management for a strong
corporate identity and brand equity.
• To help enrich the quality of life of the community and preserve ecological balance and
heritage through a strong environment conscience.

VALUES OF IOCL

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

• CARE
• INNOVATION
• PASSION
• TRUST

COMPANY PROFILE

India’s flagship national oil company and downstream

petroleum major, Indian Oil Corporation Ltd. (IndianOil) is
celebrating its Golden Jubilee in 2009. It is India's largest
commercial enterprise, with a sales turnover of Rs. 2,
85,337 crore – the highest-ever for an Indian company –
and a net profit of Rs. 2, 950 crore for the year 2008-09.
IndianOil is also the highest ranked Indian company in the
prestigious Fortune 'Global 500' listing, having moved up
11 places to the 105th position in 2009. India’s Flagship National Oil Company
Incorporated as Indian Oil Company Ltd. on 30th June, 1959, it was renamed as
Indian Oil Corporation Ltd. on 1st September, 1964 following the merger of Indian
Refineries Ltd. (established 1958) with it. IndianOil and its subsidiaries account for
approximately 48% petroleum products market share, 34% national refining
capacity and 71% downstream sector pipelines capacity in India.

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For the year 2008-09, the IndianOil group sold 62.6 million
tonnes of petroleum products, including 1.7 million tonnes
of natural gas, and exported 3.64 million tonnes of
petroleum products.

The IndianOil Group of companies owns and operates 10

of India's 20 refineries with a combined refining capacity
of 60.2 million metric tonnes per annum (MMTPA, .i.e. 1.2 million barrels per day).
These include two refineries of subsidiary Chennai Petroleum Corporation Ltd.

The Corporation's cross-country network of crude oil and product pipelines,

spanning over 10,000 km and the largest in the country, meets the vital energy
needs of the consumers in an efficient, economical and environment-friendly
manner.

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.

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.

IndianOil's ISO-9002 certified Aviation Service commands over 63% market share in
aviation fuel business, meeting the fuel needs of domestic and international flag
carriers, private airlines and the Indian Defence Services. The Corporation also
enjoys a dominant share of the bulk consumer business, including that of railways,
state transport undertakings, and industrial, agricultural and marine sectors.
Technology Solutions Provider IndianOil's world-class R&D Centre is perhaps Asia's
finest. Besides pioneering work in lubricants formulation, refinery processes,

10
pipeline transportation and alternative fuels, the Centre is
also the nodal agency of the Indian hydrocarbon sector for
ushering in Hydrogen fuel economy in the country. It has
set up a commercial Hydrogen-CNG station at an IndianOil
retail outlet in New Delhi this year. The Centre holds 214
active patents, including 113 international patents.

IndianOil has joined the league of global technology

providers last year with the selection of its in-house developed INDMAX technology
(for maximising LPGas yield) for the 4 MMTPA Fluidised Catalytic Cracking (FCC)
unit at the Corporation's upcoming 15 MMTPA grass roots refinery at Paradip in
Orissa, as well as for the FCC unit coming up at BRPL.

A wholly-owned subsidiary, IndianOil Technologies Ltd., is engaged in

commercialising the innovations and technologies developed by IndianOil's R&D
Centre. Customer First At IndianOil, customers always get the first priority. New
initiatives are launched round-the-year for the convenience of the various customer
segments.

Exclusive XTRACARE petrol & diesel stations unveiled in select urban and semi-
urban markets offer a range of value-added services to enhance customer delight
and loyalty. Large format Swagat brand outlets cater to highway motorists, with
multiple facilities such as food courts, first aid, rest rooms and dormitories, spare
parts shops, etc. Specially formatted Kisan Seva Kendra outlets meet the diverse
needs of the rural populace, offering a variety of products and services such as
seeds, fertilisers, pesticides, farm equipment, medicines, spare parts for trucks and
tractors, tractor engine oils and pump set oils, besides auto fuels and kerosene.
SERVOXpress has been launched recently as a one-stop shop for auto care services.

To safeguard the interest of the valuable customers, interventions like retail

automation, vehicle tracking and marker systems have been introduced to ensure
quality and quantity of petroleum products. Widening Horizons To achieve the next
level of growth, IndianOil is currently forging ahead on a well laid-out road map
through vertical integration— upstream into oil exploration & production (E&P) and
downstream into petrochemicals – and diversification into natural gas marketing,
bio fuels, wind power projects, besides globalisation of its downstream operations.

Petrochemicals
In petrochemicals, IndianOil is envisaging an investment of Rs. 20,000 crore (US$ 4

11
billion) by the year 2011-12. Through the world’s largest single-train Linear Alkyl
Benzene (LAB) plant with an annual capacity of 1,20,000 tonnes set up at its
Gujarat Refinery, the Corporation has already captured a significant market share of
LAB in India, besides exporting the product to Indonesia, Turkey, Thailand, Vietnam,
Norway and Oman.

A world-scale Paraxylene/Purified Terephthalic Acid plant (annual capacities: PX -

3,63,000 tonnes, PTA – 5,53,000 tonnes) for polyester intermediates is already in
operation at Panipat, while a Naphtha Cracker with a capacity of 800,000 tonnes of
ethylene per annum, 6,00,000 TPA of Propylene, besides an annual production of
3,25,000 TPA of Mono Ethylene Glycol, 1,40,000 TPA of Butadiene, 6,50,000 TPA of
Polyethylene and 6,00,000 TPA of Polypropylene, equipped with downstream
polymer units is to be completed by December 2009 at Panipat.

A grassroots refinery at Paradip is proposed to be completed by the year 2011-12,

subsequently followed by the setting up of an integrated petrochemical plants with
an estimated investment of Rs 12,000 crore (US$ 2.5 billion) which will further
strengthen the Corporation’s presence in the sector.

Oil Exploration & Production

In E&P, IndianOil has non-operator participating interest in seven oil & gas blocks
awarded under various NELP (New Exploration Licensing Policy) rounds and two
Coal Bed Methane blocks in India, in consortium with other companies. In addition,
IndianOil has two onshore type ‘S’ NELP blocks, with 100% participating interest (PI)
and sole operatorship. It also has participating interest in an onshore block in
Assam and Arunachal Pradesh through a farm-in.

Overseas ventures of the Corporation includes two blocks (86 and 102/4) in Sirte
Basin and Areas 95/96 in Ghadames basin of Libya, Farsi Exploration Block in Iran,
onshore farm-in arrangements in one block in Gabon, one on land block in Nigeria,
one deepwater offshore block in Timor-Leste and two onshore blocks in Yemen. In
all, IndianOil has 12 domestic exploration blocks, including 2 blocks where gas
discoveries have been made and 9 overseas exploration blocks, & the Farsi block in
Iran where commerciality of gas discovery has been established. IndianOil has
incorporated Ind-OIL Overseas Ltd. – a special purpose vehicle for acquisition of
overseas E&P assets – in Port Louis, Mauritius, in consortium with Oil India Ltd.
(OIL).

Gas

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In natural gas business, IndianOil sold 1.849 million tonnes of the product in 2008-
09. A technology innovation has been initiated to reach LNG (Liquefied Natural Gas)
directly to the doorstep of bulk consumers in cryogenic containers for industrial as
well as captive power applications.

To consolidate its city gas distribution (CGD) business, IndianOil has tied up with
several players such as Adani Energy, Reliance Gas Corporation, OIL and ONGC,
etc., to set up joint ventures in various cities of India. The Corporation has also
entered into franchise agreements with CGD players such as Indraprastha Gas Ltd.,
Mahanagar Gas Ltd., Adani Energy Limited, GEECL, SITI Energy and GSPC Gas Ltd.
to market CNG through its retail outlets

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.

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.

It has also commissioned two pilot solar lantern charging stations at its Kisan Seva
Kendra at Sathla near Meerut and Chokoni near Bareilly.

Consultancy

13
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.

Globalization Initiatives
IndianOil has set up subsidiaries in Sri Lanka, Mauritius and the United Arab
Emirates (UAE), and is simultaneously scouting for new business opportunities in
the energy markets of Asia and Africa.

Lanka IOC Plc (LIOC)

Lanka IOC Ltd. operates about 150 petrol & diesel stations in Sri Lanka, and has a
very efficient lube marketing network. Its major facilities include an oil terminal at
Trincomalee, Sri Lanka's largest petroleum storage facility and an 18,000 tonnes
per annum capacity lubricants blending plant and state-of-the-art fuels and
lubricants testing laboratory at Trincomalee. Presently, it holds a market share of
about 40%. In a highly competitive bunker market, catering to all types of bunker
fuels and lubricants at all ports of Sri Lanka, viz., Colombo, Trincomalee and Galle.
It is the major supplier of lubricants and greases to the three arms of the Defence
services of Sri Lanka. LIOC's market share in petrol increased stands at 24.8% in
2008 with an overall market share of 16.9%.

IndianOil (Mauritius) Ltd. (IOML)

IndianOil (Mauritius) Ltd. has an overall market share of nearly 22% and commands
a 35% market share in aviation fuelling business, apart from its bunkering business.
It operates a modern petroleum bulk storage terminal at Mer Rouge port, besides
17 filling stations. In addition to the ongoing expansion of retail network, IOML has
to its credit the first ISO-9001 product-testing laboratory in Mauritius.

IndianOil Middle-East FZE (IOME)

The Corporation's UAE subsidiary, IOC Middle East FZE, which oversees business
expansion in the Middle East, is mainly into blending and marketing of SERVO
lubricants and marketing of petroleum products in the Middle East, Africa and CIS
countries. Finished lubes were exported to Oman , Qatar , Yemen , Bahrain , UAE
and Nepal .

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Objectives & Obligations

Objectives:
• To serve the national interests in oil and related sectors in accordance and consistent with
Government policies.
• To ensure maintenance of continuous and smooth supplies of petroleum products by way
of crude oil refining, transportation and marketing activities and to provide appropriate
assistance to consumers to conserve and use petroleum products efficiently.
• To enhance the country's self-sufficiency in crude oil refining and build expertise in
laying of crude oil and petroleum product pipelines.
• To further enhance marketing infrastructure and reseller network for providing assured
service to customers throughout the country.
• To create a strong research&development base in refinery processes, product
formulations, pipeline transportation and alternative fuels with a view to
minimizing/eliminating imports and to have next generation products.
• To optimise utilisation of refining capacity and maximize distillate yield and gross
refining margin.
• To maximise utilisation of the existing facilities for improving efficiency and increasing
productivity.
• To minimise fuel consumption and hydrocarbon loss in refineries and stock loss in
marketing operations to effect energy conservation.
• To earn a reasonable rate of return on investment.
• To avail of all viable opportunities, both national and global, arising out of the
Government of India’s policy of liberalisation and reforms.
• To achieve higher growth through mergers, acquisitions, integration and diversification
by harnessing new business opportunities in oil exploration&production, petrochemicals,
natural gas and downstream opportunities overseas.
• To inculcate strong ‘core values’ among the employees and continuously update skill sets
for full exploitation of the new business opportunities.
• To develop operational synergies with subsidiaries and joint ventures and continuously
engage across the hydrocarbon value chain for the benefit of society at large.
Financial Objectives
• To ensure adequate return on the capital employed and maintain a reasonable annual
dividend on equity capital.
• To ensure maximum economy in expenditure.

15
 • To manage and operate all facilities in an efficient manner so as to generate adequate
internal resources to meet revenue cost and requirements for project investment, without
budgetary support.
• To develop long-term corporate plans to provide for adequate growth of the
Corporation’s business.
• To reduce the cost of production of petroleum products by means of systematic cost
control measures and thereby sustain market leadership through cost competitiveness.
• To complete all planned projects within the scheduled time and approved cost.
Obligations
• Towards customers and dealers:- To provide prompt, courteous and efficient service
and quality products at competitive prices.

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

• Towards employees:- To develop their capabilities and facilitate their advancement

through appropriate training and career planning. To have fair dealings with recognised
representatives of employees in pursuance of healthy industrial relations practices and
sound personnel policies.

• Towards community:- To develop techno-economically viable and environment-

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

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

Group Companies
Expanding Horizons

IndianOil is currently metamorphosing from a pure sectoral company with dominance in

downstream in India to a vertically integrated, transnational energy behemoth. The Corporation
is already on the way to becoming a major player in petrochemicals by integrating its core
refining business with petrochemical activities, besides making large investments in E&P and
import/marketing ventures for oil&gas in India and abroad.

With a vision to evolve into a major technology provider through excellence in management of
knowledge and innovation, IndianOil has launched IndianOil Technology Ltd. to market the

16
intellectual properties developed by IndianOil's R&D Centre.

Joint Ventures (As on 31.03.2009)

Name of JV Date of Promoters & Equity Area(s) of Operation
Incorporatio
n
Avi-Oil India 04.11.1993 IndianOil & Balmer Lawrie To blend, manufacture
Limited : 25% each and sell synthetic, semi
Neden BV, the Netherlands: synthetic and mineral
50% based lubricating oils,
greases and hydraulic
fluids, related products
and specialties for
Defence and Civil
Aviation uses.
IOT Infrastructure 28.08.1996 IndianOil & Oiltanking To build and operate
& Energy Services GmbH, Germany: 50% each terminalling services for
Ltd. petroleum products.
(Formerly known as
Indian Oiltanking
Limited)

17
IndianOil Petronas 03.12.1998 IndianOil & Petronas, To construct and import
Private Limited Malaysia: 50% each facilities for LPG import
at Haldia and to engage in
parallel marketing of
LPG.
Lubrizol India 01.04.2000 IndianOil & Lubrizol To manufacture and
Private Limited Corporation, USA: 50% each market chemicals for use
as additives in fuels,
lubricants and greases.
Petronet LNG 02.04.1998 IndianOil, BPCL, GAIL India Development of facilities
Limited Limited for import and
& ONGC: 12.50% each regasification of LNG at
Gaz de France International: Dahej and Kochi.
10%
Asian Development Bank:
5.2%
Public :34.8%
Petronet India 26.05.1997 IndianOil :18% BPCL & To implement petroleum
Limited HPCL:16% each products, pipeline projects
Reliance Industries Limited, through Special Purpose
IL&FS Trust Company Vehicles.
Limited,
ICICI Bank Ltd., State Bank of
India & Essar Oil Limited:10%
each
Petronet VK Limited 21.05.1998 IndianOil & Petronet India To construct and operate a
Limited pipeline for transportation
: 26% each, of petroleum products
Reliance Industries Limited from Vadinar to Kandla.
& Essar Oil Limited:13%
each,
SBI, GIIC, Kandla Port Trust,
Infrastructure Leasing &
Financial
Services Limited: 05% each;
Canara Bank: 02% each
Petronet CI Limited 07.12.2000 IndianOil, Petronet India & To construct and operate a
Reliance Petroleum Limited pipeline for evacuation of
: 26% each petroleum products from
Essar Oil Limited & BPCL RPL and EOL refineries
: 11% each at Jamnagar as well as

18

Green Gas Ltd. 07.10.2005 IndianOil & GAIL India
Limited
: 25% each,
Infrastructure Development
Finance Company Limited,
IL&FS Investment Mangers
Limited
: 20% each
Others: 10%
Indo Cat Pvt. Limited 01.06.2006 IndianOil & Intercat Inc.,
USA: 50% each
IndianOil Skytanking 21.08.2006 IndianOil, IOT Infrastructure Design, finance,
Limited & Energy Services Ltd.
(Formerly IOTL) &
Skytanking Holding
GmbH, Germany: 33.33%
each
IndianOil Power 06.10.1999 IndianOil & Marubeni
Consortium Limited Corporation, Japan: 50% each own power generation
Suntera Nigeria 205 09.05.2006 IndianOil & Oil India: 25%
Limited each
Suntera Resources Ltd.,
Cyprus: 50%
IndianOil-CREDA 06.02.2009 IndianOil: 74%, Chattisgarh
Biofuels Limited Renewal Energy Development manufacturing, production
Agency : 26%
from Gujarat Refinery at
Koyali to feed the
consumption zones at
Central India.
City Gas Distribution in
Lucknow and Agra.
Manufacturing &
marketing of FCC
catalysts and additives.
construct, operate &
maintain aviation fuel
facility projects.
To build and operate its
plant at Panipat utilizing
Petcoke from Panipat
Refinery.
Investments in oil and gas
industry especially in the
upstream sector
Farming, cultivating,
and selling biomass, bio-
fuels and allied products
& services
19
50 Golden Years in the Service of the Nation

India’s flagship national oil

company and downstream petroleum major, Indian Oil Corporation Ltd. (IndianOil)
is celebrating its Golden Jubilee during 30th June - 1st September 2009.

Established as an oil marketing entity on 30th June 1959, Indian Oil Company Ltd.
was renamed Indian Oil Corporation Ltd. on 1st September 1964 following the
merger of Indian Refineries Ltd. (established in August 1958) with it. The integrated
refining & marketing entity has since grown into the country’s largest commercial
enterprise and India’s No.1 Company in the prestigious Fortune ‘Global 500’ listing
of the world’s largest corporates, currently at the 116th position. It is also the 18th
largest petroleum company in the world.

IndianOil Today

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

Set up with the mandate of achieving self-sufficiency in refining and marketing

operations for a nascent nation set on the path of economic growth and prosperity,
IndianOil today accounts for nearly half of Indias petroleum consumption, reaching
precious petroleum products to millions of people everyday through a countrywide
network of around 35,000 sales points. They are backed for supplies by 167 bulk
storage terminals and depots, 101 aviation fuel stations and 89 Indane LPG bottling
plants. For the year 2008-09, IndianOil sold 62.6 million tonnes of petroleum
products, including 1.7 million tonnes of natural gas.

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The IndianOil Group of companies owns and operates 10 of India’s 20 refineries with
a combined capacity of over 60 MMTPA, accounting for 34% of national refining
capacity, after excluding EOU refineries. Projects under execution will take the
capacity further to 80 MMTPA by the year 2011-12. Besides setting up state-of-the-
art facilities to raise product quality to global standards, IndianOil has undertaken
chartering of ships for crude oil imports on its own and is expanding its basket of
crudes and upgrading its refineries to handle a wider array of crudes, including
high-sulphur types.

As a pioneer in laying of cross-country crude oil and product pipelines, the

Corporation crossed 10,000 km in pipeline length and about 70 MMTPA in
throughput capacity with the commissioning of the 330-km Paradip-Haldia crude oil
pipeline recently. Plans are under execution to add about 4,000 km more by the
year 2012. In-house capabilities have enabled the Corporation undertake all
pipeline projects on its own and even offer turnkey expertise in techno-economic
feasibility studies, design and detailed engineering, project execution, operations,
maintenance and consultancy services.

Set up in 1972, IndianOil's R&D Centre has blossomed into a world-class institution
and Asia's finest. Besides its pioneering work in lubricants formulation, refinery
processes, pipeline transportation and alternative fuels such as ethanol-blended
petrol and bio-diesel, the Centre is also the nodal agency of the Indian hydrocarbon
sector for ushering in Hydrogen fuel into the country. It has over 214 active patents
to its credit, including 113 international patents. Its current R&D focus is on the
future business needs of IndianOil in the areas of petrochemicals, including
polymers, and alternative energy sources.

Strategic Origins

IndianOil was born of the vision of Pandit Jawaharlal Nehru, the first Prime Minister
of India, to pursue a policy of self-sufficiency in the petroleum sector as a strategic
requirement of a free nation.

As part of Panditjis thrust on oil exploration, refining and marketing operations,

Indian Refineries Ltd. was established in August 1958 under 100% Government
ownership to erect refineries and lay petroleum pipelines. To take care of marketing
of petroleum products across the country, Indian Oil Company Ltd., another 100%
Government-owned Company, was formed on 30th June 1959. It was entrusted with
the task of reaching petroleum products to every nook and corner of the nation,

21
overcoming severe constraints in terms of logistics, terrain and wide seasonal and
regional fluctuations in demand.

The marketing activities of Indian Oil Company began on 17th August 1960 with the
receipt of the first parcel of 11,390 tonnes of imported diesel of Russian origin from
MV Uzhgorod docked at Pir Pau Jetty in Mumbai. The Indian petroleum market at
that time was ruled by goliaths like Burmah Shell, Esso Eastern Inc., Caltex (India)
Ltd., Indo-Burmah Petroleum Co. Ltd and Assam Oil Company Ltd. Indian Oil
Companys first and foremost challenge was to assert itself in the face of stiff
competition from these well-entrenched transnational oil companies operating in
India. In its first year of marketing (1960-61), the Company’s volume sales was a
meager 0.038 million tonnes (approximately 5% of industry sale) worth Rs. 0.8
crore.

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

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

Battle Spurs

22
As a veteran IOCian put it once, IndianOil has been genetically coded to serve the
Defence services. This was proved beyond doubt during the 1965 war, when
IndianOilPeople maintained the vital supply of petroleum products to the armed
forces with grit and determination. In fact, the Srinagar depot was one of the first
bulk storage facilities set up by the Corporation, in 1963. IndianOil’s entry into the
aviation fuelling business too began with the Defence Services in October 1964 and
then to civil aviation a year later, in November 1965.

Another opportunity to show its mettle in times of national emergencies came

IndianOil’s way during the 1971 war. In fact, in March 1972, during the war for
liberation of Bangladesh, IndianOil even arranged for crude oil supplies to the
Chittagong Refinery. After the war, the Corporation for the first time extended
reservation in award of retail outlet dealerships to war widows, disabled Defence
personnel, freedom fighters, etc., and continues to honour this tradition even now.
At the time of Operation Vijay at Kargil in 1999, despite shelling of its depots at Leh
and Kargil, IndianOil maintained petroleum supplies in the war zone and stood by
the families of the war heroes later.

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

Marketing Innovations

Having set up Its first petrol & diesel station (retail outlet) at Kochi in October 1962,
IndianOil currently operates the country’s largest network of retail outlets
numbering over 18, 278 with focus on customer convenience. It was the first oil
marketing company to introduce the concept of Multipurpose Distribution Centres
(MPDCs) at its retail outlets located in rural areas way back in 1975. These MPDCs
served as one-stop convenience shops, especially for farmers, and were the
harbingers of the modern Kisan Seva Kendra (KSK) successfully introduced by
IndianOil in 2006. As on date, over 2,550 specially formatted Kisan Seva Kendra
outlets set up across the country meet the diverse needs of the rural populace,
offering a variety of products and services such as seeds, fertilisers, pesticides,

23
farm equipment, medicines, spare parts for trucks and tractors, tractor engine oils
and pumpset oils, besides auto fuels and kerosene. About 600 such Kendra are
being added to the Corporation’s marketing network every year. IndianOil has been
chosen as the Most Admired Retailer of the Year in the category of Rural Retailing
at the India Retail Forum during 2008.

As part of customer segmentation, exclusive XTRACARE outlets unveiled in select

urban and semi-urban markets offer a range of value-added services to enhance
customer delight and loyalty. Large format outlets on highways cater to the needs
of motorists, with multiple facilities such as food courts, first aid, rest rooms and
dormitories, spare parts shops, etc. SERVOXpress has been launched recently as a
one-stop shop for autocare services. To safeguard the interest of the valuable
customers, interventions like retail automation, vehicle tracking and marker
systems have been introduced to ensure quality and quantity of petroleum
products.

Over the years, IndianOil has also launched several branded products, customer-
focussed speciality products and customer rewards programmes. New generation
branded transportation fuels with multifunctional additives are now available in
major markets. Initiatives for cashless transactions for customer convenience
through co-brand credit cards and fleet cards have met with great success.

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

Kitchen Revolution

Indane was the first branded product from IndianOil to hit the market, at Kolkata in
October 1965, with product sourced from its Barauni Refinery. Introduction of the
clean and efficient LPG as cooking gas ushered in a revolution in millions of
households. Encouraged by customer response and to ensure dedicated service,
IndianOil undertook massive augmentation of LPG storage and distribution facilities
across the country in 1983. The process continues even today with the setting up of
89 Indane bottling plants, mostly in upcountry locations for quicker turnaround of
cylinders. Several innovations were introduced in LPG marketing from time to time,
like mounded storage and 19-kg cylinders for bulk customers, reticulated supplies

24
for housing complexes and 5-kg cylinders for customers in inaccessible and hilly
terrain. The Corporation’s in-house IndMax process is aimed at enhancing LPG yield
from crude oil refining. Indane cooking gas today reaches the doorsteps of over 53
million households in nearly 2,700 markets through a network of about 5,000
Indane distributors. This includes customers in Andaman & Nicobar and
Lakshadweep islands. Autogas (LPG) dispensing stations are being set up in metros
and major cities to cater to the growing vehicle population using LPG as fuel.

New Businesses

In pursuit of its Corporate Vision and to achieve the next level of growth,, IndianOil
is currently forging ahead on a well laid-out road map through vertical integration -
upstream into oil exploration & production (E&P) and downstream into
petrochemicals - and diversification into natural gas marketing, besides
globalisation of its downstream operations.

In petrochemicals, IndianOil is envisaging Rs. 30,000 crore (US$ 7.4 billion)

investment by the year 2011-12. Through the world’s largest single-train Linear
Alkyl Benzene (LAB) plant with an annual capacity of 1,20,000 tonnes set up at its
Gujarat Refinery, the Corporation has already captured a significant market share of
LAB in India, besides exports. A world-scale Paraxylene/Purified Terephthalic Acid
plant (annual capacities: PX - 3,63,000 tonnes, PTA 5,53,000 tonnes) for polyester
intermediates is already in operation at Panipat, while a Naphtha Cracker with a
capacity of 800,000 tonnes of ethylene per annum, equipped with downstream
polymer units is also coming up at Panipat.

In E&P, IndianOil has bagged eight oil & gas blocks and two Coal Bed Methane
blocks under NELP (New Exploration Licencing Policy) rounds in India, in consortium
with other companies. It has also acquired participating interest in two onshore
blocks in Assam and Arunachal Pradesh. Overseas ventures of the Corporation
include two blocks in Sirte Basin and Areas 95/96 in Ghadames basin of Libya, Farsi
Exploration Block in Iran, onshore farm-in arrangements in Gabon, an onland block
in Nigeria and two onshore blocks in Yemen. IndianOil has incorporated Ind-OIL
Overseas Ltd. a special purpose vehicle for acquisition of overseas E&P assets in
Port Louis, Mauritius, in consortium with OIL.

In natural gas business, IndianOil is targeting sale of 2 million tonnes in 2008-09. A

technology innovation has been initiated to reach LNG (Liquefied Natural Gas)
directly to the doorstep of bulk consumers in cryogenic containers for industrial as

25
well as captive power applications. An LNG import terminal is proposed to be set up
at Ennore near Chennai. City gas distribution projects are in the pipeline in
partnership with other companies.

Group Synergy

As part of inorganic growth through mergers and acquisitions, the refinery

operations and marketing activities of Assam Oil Company were vested in IndianOil
in October 1981, and it became the Assam Oil Division of IndianOil. The old units of
the vintage Digboi Refinery (the first refinery in Asia) were revamped and by 1996 it
was transformed into a modern refinery of IndianOil.

In the year 2001, IndianOil acquired the Government stake and management
control of stand-alone refiners Chennai Petroleum Corporation Ltd. (CPCL) and
Bongaigaon Refinery & Petrochemicals Ltd. (BRPL), substantially enhancing group
refining capacity. Subsequently, capacity expansion of CPCL and laying of the 526-
km Chennai-Trichy-Madurai product pipeline helped further strengthen IndianOil’s
marketing in South India. Similarly, strategic turnaround initiatives taken by the
IndianOil helped BRPL come out of the red and post profits and merger with the
parent company is due soon.

IndianOil acquired IBP in the year 2002 and seamlessly merged it with the parent
company in 2007, leading to the formation of a larger and more formidable
marketing network. IndianOil Technologies Ltd. was launched as a fully-owned R&D
subsidiary in the year 2003 to market the Corporation’s intellectual property.

IndianOil has set up three overseas subsidiaries in Sri Lanka (2003), Mauritius
(2004) and the United Arab Emirates (2006). Lanka IOC Ltd. operates about 150
petrol & diesel stations in the island nation, besides an oil terminal and a lube
blending plant at Trincomalee. IndianOil (Mauritius) Ltd. operates a modern
petroleum bulk storage terminal at Mer Rouge port, has an overall market share of
nearly 20%, and commands a 32% market share in aviation fuelling business in
Mauritius. IOC Middle East FZE oversees blending of SERVO lubricants and
marketing of petroleum products and lubricants in the Middle East, Africa and CIS
countries.

In addition, IndianOil has eight active joint ventures in operation with reputed Indian
and overseas partners in the areas of aviation refuelling, city gas marketing, LPG
and LNG imports and storage, speciality lubricants and additives, terminalling

26
services, etc.

Future Plans

In spite of deregulation of the oil sector and stiff competition from private players,
IndianOil has maintained its position as India's flagship national oil company.
IndianOilPeople have been in the forefront in adapting to the changing environment
and enhancing the organisation’s capabilities in providing innovative and value-
added offerings to the customers.

Against the backdrop of a rapidly changing business environment, IndianOil is

focussing on certain key issues for sustained growth in the deregulated market.
These are: prudent finance and projects management, optimum capacity utilisation
of refineries and pipelines network, competitive business strategies, customer-
focussed innovations in product and service offerings, streamlining of business
processes, and achieving greater synergy with group companies for enhanced
efficiency and effectiveness in the market place.

The rising customer aspirations for quality products and services, at par with
international standards, have also thrown up myriad opportunities. IndianOil is
making the most of them mainly in expanding its existing customer base,
customising products for specific market segments, streamlining distribution
infrastructure, etc. As part of the Marketing Transformation Programme to move
closer to the customers, IndianOil has bifurcated its marketing function vertically
into exclusive retail and direct consumer groups, transferred powers from the four
regional offices to 16 marketing offices in State capitals, and set up exclusive
groups for process & systems optimisation, brand management and bio-fuels. The
ambitious Project Manthan IT re-engineering project has enabled the organisation to
assimilate IT and web-based business solutions for real time, integrated
transactions and IT solutions for supply chain optimisation.

India Inspired

As a leading public sector enterprise of India, IndianOil has successfully combined

its corporate social responsibility agenda with its business offerings, meeting the
energy needs of millions of people everyday across the length and breadth of the
country, traversing a diversity of cultures, difficult terrains and harsh climatic
conditions. The Corporation takes pride in its continuous investments in innovative
technologies and solutions for sustainable energy flow and economic growth and in

27
developing techno-economically viable and environment-friendly products &
services for the benefit of its consumers.

Directors’ review

Refineries
The year 2008-09 witnessed hectic project activity. Projects wor th Rs. 30,000 crore – entailing
diversification, quality improvement, value addition and capacity enhancement - are fast
progressing. Construction of the Rs.14,439 crore Naphtha Cracker is in full swing at Panipat,
and its completion in the current year would be a new dawn of oppor tunities for IndianOil in the
field of Petrochemicals. Other ongoing projects include Residue Upgradation & MS/HSD
Quality Improvement Project at Gujarat Refinery, Improvement in Diesel Quality & Distillates
Yield (Hydrocracker) at Haldia Refinery, DHDT at Bongaigaon Refinery and MS Quality
Upgradation projects at all our refineries. The 15 MMTPA state-of-the-art grassroots refinery at
Paradip has been approved at an estimated cost of Rs. 29,777 crore. This is the biggest-ever
investment at a single location by IndianOil and perhaps by any corporate in the country.
Conceived to process 100% heavy, high-sulphur cheaper crude for better profitability, the most
modern Paradip Refinery would have a complex configuration and play a key role in meeting the
growing energy needs of the country. As per the Auto Fuel Policy of the Government of India,
petrol and diesel quality for 13 major cities will upgrade from the present BS-III quality to BS-
IV norms from 1st April 2010. The rest of the country will switch over to BS-III quality fuels
from the present BS-II compliant fuels. In order to meet the requirement, fuel quality
upgradation projects are in advanced stages of execution. Global warming is increasingly
becoming an important issue. IndianOil has adopted the most advanced clean technologies to
minimise CO2 emissions by reducing energy consumption, cutting down waste and increasing
resource re-use in our refinery operations. We have been actively pursuing Clean Development
Mechanism (CDM) projects. In 2008-09, two CDM projects, viz. AVU Energy Optimisation
project at Digboi and Flare Gas Recovery Project at Haldia were registered with the United
Nations Framework Convention on Climate Change (UNFCCC). These will yield 28,500 CERs.
As India's flagship energy corporate, IndianOil has always strived to accomplish the most
fulfilling role of fuelling the nation's economic development and helping realise the dreams and
aspirations of its citizens. We are committed to continuing our march, whatever be the
challenges. And in a year when we commemorate the 50 glorious years of IndianOil, we re-
dedicate ourselves to the service of the nation and envision a future full of hope and promise.
Organisational prosperity is nur tured, not inherited. IndianOil has always worked to identify,
cultivate and enhance the core competencies that make growth possible. Even in the year which
experienced an unexpected economic meltdown, a volatile market and widely fluctuating crude
oil prices, IndianOil refineries achieved the highest ever crude oil throughput registering a
28
growth of 3.94% over last year. While the global capacity utilisation remained at 90-92%,
IndianOil refineries clocked an overall capacity utilisation of 103%. Innovative ideas of sharing
intermediate streams between the Group refineries located far and wide, enabled optimisation
and value addition in operations thereby enhancing capacity utilisation and margins. During the
year, IndianOil refineries achieved the highest ever combined distillate yield of 75.2% wt.
surpassing the previous best of 73.7% wt. in 2007-08. Our determination to improve energy
efficiency resulted in reduction of overall specific energy consumption to 64 MBN1 during
2008-09 from the earlier lowest of 67 in 2007-08. With emphasis on widening the crude basket
for improved flexibility, security and lower input cost,our refineries processed 11 new grades of
imported crude oil during the year. The erstwhile BRPL is now a part of IndianOil's Refineries
Division as the eighth refinery consequent upon its merger.

pipelines
pipeline section were also carried out based on this outcome.Our initiatives for asset protection
by re-organising & re-inventing patrolling of pipelines and maintaining sustained coordination
with the law & order authorities resulted in substantial reduction in pilferage attempts on our
pipeline network. As a part of our continuous endeavour to serve the consumers better by
optimising logistics, we have constructed a 36 km long ATF pipeline to connect IndianOil's
Devanagonthi terminal with the new Bengaluru international Airport, and a 95 km long pipeline
between the CPCL’s Manali refinery and the Meenambakkam AFS. In an attempt to diversify
and tap the growth potential of gas pipelines, IndianOil has commissioned its first 274 km long
cross-country LPG pipeline from Panipat to Jalandhar. The pipeline can transport 700,000
tonnes of LPG annually from Kohand to IndianOil's bottling plants at Nabha and Jalandhar. In
addition, this pipeline provides improved logistics to meet the LPG requirements
of the bottling plants at Una & Baddi in Himachal Pradesh and Jammu & Leh in Jammu &
Kashmir.
Signalling our foray into building natural gas pipelines, we have commenced work on the 133
km long first natural gas pipeline of IndianOil, to supply regassified LNG for captive use from
Dadri terminal of GAIL (India) Ltd. to our Panipat Refinery.During the year, IndianOil

29
commissioned the 330 km long Paradip-Haldia Crude Oil Pipeline (PHCPL) system. Its Single
Point Mooring facilities installed 20 km off Paradip coast provide substantial logistical support
and cost benefit by offloading crude oil from very large crude carriers. A 265 km long product
pipeline connecting our Gujarat Refinery to the marketing terminal at Ratlam was also
completed. Other major projects currently under implementation include the 290 km long
Chennai-Bangalore Product Pipeline, augmentation of the Mundra-Panipat Pipeline from 6 to 9
MMTPA, a 94 km long branch line on the Koyali-Dahej Pipeline to Hazira, and a 118 km long
pipeline from Bijwasan to Panipat to transport Naphtha from Mathura Refinery to Panipat. We
have also embarked upon the construction of five additional tanks of 85,000 kl capacity each at
Vadinar in addition to setting up blending facilities there. Facilities are also being created to
introduce Rajasthan crude oil in our
crude oil pipeline system at Radhanpur and Viramgam. In the years to come, distribution
infrastructure is
poised for tremendous growth in India, providing enormous opportunities for the Pipelines
Division.
IndianOil will continue to benefit from the competitive advantage offered by its countrywide
pipelines network as the safest, most eco-friendly and economical means of transportation of
crude oil, petroleum products and natural gas.During the year, IndianOil's underground
highways continued to reinforce its
competitive edge by ensuring transportation of crude oil & petroleum products in a safe,
energyefficient,
and cost-effective manner. With a sustained focus on value maximisation, asset growth and
capacity enhancement, the countrywide network of pipelines crossed the 10,000 km mark in
length and 70 million metric tonnes per annum (MMTPA) in installed capacity during the year
2008-09. Maximising capacity utilisation, the Pipelines Division registered the highest ever
throughput of 59.63 million tonnes, which is 4.6% higher than that of the previous year. Asset
creation can add value only with sustained high quality maintenance. The Vadinar installation
has successfully completed 30 years of operation and has handled 4,000 crude oil tankers safely.
The highlights of the year include timely completion of major maintenance of the Single Point
Mooring system commissioned in 1978. Adoption of new technologies in pipeline inspection
and integrity management helped maintain peak performance of pipelines during the year.
Online inspection by intelligent pigging of 803 km long Viramgam-Mathura section of the
Salaya-Mathura
Pipeline system was completed during the year.Extensive repair and refurbishment of this
inspected

30
Marketing
Behind a billion satiated Indian customers is the relentless efforts of over 34,000
IndianOilPeople. Driving the nation's economic growth engine forward is the uninterrupted
supply chain managed by IndianOil.
IndianOil, a fine-tuned marketing machine, working to precision round-the-clock, round-the-
year, is
powered by a passion to serve, even against odds.Whether it is the sub-zero temperatures of Leh-
Ladakh region or the scorching deserts in Jaisalmer or the marooned areas of Andaman and
Nicobar
Islands, IndianOil continues to deliver, to make a difference to the community we serve.The
modern business landscape is far more multi-dimensional today, with customers coming of age.
Emotional connect with brands no longer comes from 'firepower' traits like Leadership, Value or
Quality or even Technology Superiority, but from its 'soft power' of being a social contributor
making a lasting difference to the lives of the community they serve. IndianOil has played this
role admirably combining its leadership role in the business with a social conscience by rising to
the occasion in times of natural calamities like famine, floods, earthquakes and cyclones.'How
has this Brand made a difference to me and the Society?' is a question that is not too far away
from customers' minds. It’s here that IndianOil enjoys a decided advantage. IndianOil not only
straddles the 'mind to heart' space but also reaches out to the collective consciousness of the
country,as an entity that has always had the interest of the nation at the very core of its visionary
objective.Reaching products to once-inaccessible areas and improving the quality of life of a
billion Indians through our products and services is a responsibility that IndianOil has fulfilled
time and again.What helps us to be leaders is not just our market share but also our ability to
understand the complex psyche of the Indian market. The swathe of marketing initiatives
launched by IndianOil over the
years, truly showcases our ability to be nimble footed in customising solutions across different
demand requirements.A case in point, is our Kisan Seva Kendra model which has been
universally acknowledged as one making a huge difference to the country's rural belt.It has been

31
recognised by several forums and has gone on to win awards from the Rural Marketing
Association of India and the Asia Retail Congress during the year.Over the last decade,
IndianOil has transformed the Indian petroleum retail market by enormously widening the retail
basket of products and services.From a simple model retailing Petrol and Diesel, our outlets have
metamorphosed into multi-brand, multiproduct
and multi-service entities. Today this model has evolved as the industry's benchmark in India.
IndianOil outlets have come to be recognised as one-stop stations offering a variety of services
from
Branded fuels to loyalty cards, from AutoGas to CNG and from Auto Car washes to ATMs. A
new
High is India's first Hythane(Hydrogen CNG) Retail Outlet in Delhi marking a quantum jump in
Technology absorption in fuel retailing.Indane LPG marketing too has undergone a major
Transformation with IndianOil's "Indsoft" software providing a state-of-the-art platform to plan,
network
and manage the vast LPG customer base.Non-fuel revenues will continue to be an area of
Focus both today and tomorrow. A concrete roadmap is underway to consolidate this initiative
even further.SERVO still rules India as its No.1 lubricant brand.Our globalisation aspirations
crossed yet another milestone with the launch of SERVO lubricants in Oman in 2008. SERVO
will hit new markets across the globe with its growing popularity and wider
acceptance.Touching lives and reaching out to customers is a way of life at IndianOil. A new
web-based customer grievance redressal system - eCFS together with an all-India toll free
number introduced in 2008 has gone a long way in ensuring speedy solutions to customers'
queries and complaints. For us at IndianOil, we see this as an exciting time.
Millions of Indians even today have not partaken in the fruits of development. Their aspirations
have
remained unfulfilled and unrequited. And it will be our endeavour to address every segment of
the
need and offer customised solutions to them. That's going to be the motivation that will drive us
forward
into the future. It will be a resolve well worth taking, as we complete ‘50 Golden Years’ this
year.

32
Research & development
Green is the new mantra for sustaining growth in this millennium. IndianOil, since its inception,
has been a driver of adopting, developing and commercialising green technologies.In the global
recognition of our commitment and success of green technology initiatives, IndianOil was
conferred with the prestigious World Petroleum Congress Award-2008 for its path-breaking
R&D work in hydro-processing technologies. It made the year 2008-09, a great luminous
landmark in the 50 year golden history of IndianOil.Despite the upheavals in the global oil
market this year, IndianOil’s R&D Centre continued innovating with greater vigour and
achieved significant advances in development, demonstration and licensing of novel refining and
lubes technologies.For our scientists, each downturn is an opportunity and each upturn a
challenge.IndianOil INDMAX Technology chosen for setting
up INDMAX RFCC unit of the 15 million tone refinery at Paradip was reconfigured to make it
more flexible. This novel technology has also evinced interest from oil companies
abroad.Continuing with our pursuit of developing Green technologies, we rolled out two new
technologies, this year, INDAdeptG & INDAdeptD” – Adsorbent based Processes, for deep
desulphurisation of gasoline and diesel streams, respectively, meeting EURO-IV norms. Another
breakthrough achievement of the year was successful
development of ‘IndVi’- a revolutionary high metal tolerant catalyst additive formulation, for
FCC and
RFCC. This year, the prototype ‘INDIPIG-12’ was successfully field demonstrated for
inspection of
500 km pipeline. Development of commercial 12” IPIG was also started. ‘INDIPIG-14’ – the
prototype 14” IPIG tool was evaluated in the Delhi- Panipat section of Mathura-Jalandhar
Pipeline. To retain lubricant market leadership, IndianOil developed and released 186 product
formulations for commercialisation, and received OEM/Customer approvals for 47 formulations.
The significant ones among them were M&M, Suzuki, Tata Motors, Volvo, Eicher, Honda
Motors, Cummins, SAIL,Indian Railways and Defence. As a step forward,field trial clearance
from leading marine engine OEMs such as MAN B&W (Germany) and SEMT Pielstick
(France) were obtained for improved grades of SERVO marine oils for DG set
applications. During the year, we intensified research to reduce the carbon footprint of our
products and operations.The first ever life cycle analysis of bio-diesel from Jatropha was
conducted in collaboration with NREL, USA, with encouraging results. We also developed eco-
friendly low PAH jute-batching oil.
Recognitions for green efforts followed as IndianOil won the Golden Peacock Innovation Award
for its
eco-friendly agrospray oils, as well as the Petrofed Group Innovation Award for its novel low
emission
fuel additive.During the year, IndianOil launched several research programmes in frontier
technology areas of second-generation bio-fuels, renewable and alternative sources of clean fuels
from bio and fossil
33
sources. A MoU was signed with TERI University for advancing research in bio-fuels.
Continuing with
research in commercialising Hydrogen as fuel, IndianOil commissioned the first commercial H-
CNG dispensing station at Delhi. Research was initiated on E-10 (10% blend of ethanol with
gasoline) in association with the Society of Indian Automobile Manufacturers.Seventeen (17)
US/Indian patents were filed and ten (10) patents were granted during the year, taking our active
portfolio of IP to 214 patents.
During 2008-09, there was 100% increase over the previous year, and we are poised to keep this
pace in the years to come.Collaborative R&D is our new fundamental for success. This year, we
entered into research agreements with Criterion for novel catalyst development and evaluation;
with BARC for
tomography studies for Trickle Bed Reactor and acoustic emission testing; with Indian Institute
of
Science, Bangalore (Nano Tribology), for study of boundary lubrication in engine and metal
working
tribology; with Sud-Chemie for commercial production of metal passivation additive; with Delhi
College of Engineering for development of parallel hybrid electric vehicle; and with EIL for
licensing
DHDS/DHDT technology, with TERI University, and IIT Madras for talent development. With
a sharp focus on emerging as a world-class technology company, IndianOil’s R&D team has re-
dedicated itself to greener innovations, and pledged to ensure continuous value addition to our
products and processes, meeting and exceeding the aspirations of our customers.

Planning & business development

In the past few years, IndianOil’s business strategy has been to straddle the
entire hydrocarbon value chain through integration and diversification
initiatives. Despite the turmoil in the global economy in the past fiscal,
IndianOil strode ahead as it consolidated its established businesses and
entered into new ones. In Exploration & Production (E&P), it was an activity-
packed year. IndianOil crossed a major milestone when it was awarded for

34
the first time, two on-land blocks in the Cambay Basin with 100%
participating interest and operatorship in the face of stiff competition in the
seventh round of the New Exploration Licensing Policy (NELP) of the
Government of India. In addition, we also bagged a deepwater block in
consortium with ONGC and GSPC under NELP-VII. IndianOil’s upstream
footprint expanded overseas when it farmed-in into a deepwater block in
offshore Timor-Leste with a 12.5% participating interest. Gas discovered in
the Assam-Arunachal Pradesh block during the year 2007-08 was
successfully tested, and the commerciality of gas production from the Farsi
offshore block (where IndianOil holds a participatory interest of 40%) in Iran
was accepted.The petrochemicals business grew from strength to strength.
On the domestic front, IndianOil continued to cater to a major chunk of
Linear Alkyl Benzene (LAB, used for manufacture of detergents)
requirements of the country’s biggest buyers (Unilever and Proctor &
Gamble), while the export market widened to twelve countries from nine last
year. The petrochemicals business received a boost when IOCLAB qualified
Procter & Gamble’s worldwide quality standards. Indeed, this speaks of the
world-class quality of our product. The sale of Purified Terephthalic Acid
(PTA) grew significantly, exhibiting a year-on-year growth of 8.6%. With the
Naphtha Cracker project at Panipat set to be commissioned by the end of the
year 2009, preparations for putting in place the necessary structure for
polymer marketing reached the final stage during the year. IndianOil
marketed 1.85 million tonnes of re-gassified LNG (R-LNG), including 0.18
million tonnes for internal consumption in refineries. Green Gas Ltd. –
IndianOil’s joint venture with GAIL (India)
Ltd. for undertaking City Gas Distribution (CGD) in Lucknow and Agra – sold
13,208 tonnes and
8,919 tonnes of gas in Lucknow and Agra respectively. In order to rapidly
expand the gas
business, we have entered into agreements with different companies for gas
sourcing, setting up CGD networks, as well as for selling gas through our
retail outlets. Under the innovative pilot project ‘LNG at the doorstep’ to
reach LNG directly to the consumers for industrial/captive power
applications, two customers - H&R Johnson (at Pen, Maharashtra) and Schott
Glass (at Jambusar, Gujarat) - were supplied over 15,000 tonnes LNG during
the year. To service the requirements of the new customers, IndianOil has
signed a contract with Petronet LNG Ltd. to increase the LNG loading
capacity in road tankers at Dahej from the existing 15,000 metric tonnes per
annum (MTPA) to 20,500 MTPA.Our effor ts to scale up the bio-fuel business
touched a major landmark with the formation of a joint venture - IndianOil
CREDA Bio-fuels Ltd. – in the state of Chhattisgarh. Mandated to organise

35
commercial captive plantation of energy crops for bio-diesel production, the
venture is being keenly watched by national and international agencies due
to its novelty and uniqueness of structure & approach. The project envisages
production of 30,000 MTPA of bio-diesel by the year 2015 by undertaking
plantation on 30,000 hectares of revenue wasteland. A pilot project for
plantation of energy crops (Jatropha) in the State of Madhya Pradesh was
also started during the year to explore
the possibility of setting up a revenue land-based commercial bio-diesel unit
and to develop
benchmarks for plantation cost and output.IndianOil is endeavouring to
widen its portfolio of
energy offerings to include alternative energy options. A Renewable Energy
Group was formed
to sharpen focus on the vertical.As part of our commitment to develop
sustainable energy systems, IndianOil forayed into wind energy generation
by commissioning the first wind power
project of 21 MW capacity near Ambliyara village in Kutch, Gujarat. In order
to explore commerciality of solar energy, IndianOil also commissioned two
pilot solar charging stations at its Kisan Seva Kendra stations in the state of
Uttar Pradesh. Efforts are underway to expand the business portfolio in these
areas.During the year, IndianOil published the GRI-G3 (Global Reporting
Initiative) guidelines compliant Corporate Sustainability Repor t. This repor t
provided description, data and perspective on IndianOil’s performance with
respect to the triple bottomline of People-Planet-Profit.

Finance

When crude oil price touched an all-time high of $ 147 per barrel in July '08,
one prominent
question in everyone's mind was when would it breach the $ 150 per barrel
level and whether the prediction of analysts of the price touching $ 200 per

36
barrel would come true. The Government of India, which regulates the prices
of the four sensitive products constituting about 65% of the total petroleum
products consumption, anticipated a whopping Rs. 2,45,000 crore under-
recoveries likely to be faced by the Oil Marketing Companies (OMCs) during
the year.Measures taken by the Reserve Bank of India (RBI) to contain the
high rate of inflation resulted in a steep increase in financing cost from 8% to
almost 15%. In a short span of three months - July to Sept. '08 - the
borrowings of the three Oil Marketing Companies soared from Rs. 71,000
crore to over Rs.1,10,000 crore. Our borrowings increased from about Rs.
34,500 crore as on 30th June '08 to over Rs. 60,000 crore in Sept. '08.
Despite the compensation mechanism put in place by the Government in
June '08, IndianOil posted a loss of over Rs. 7,000 crore in the second
quarter of 2008-09. During the year, the heat was on as borrowings
rose unabated, IndianOil faced a liquidity crunch and profitability took a
hit.Meanwhile, the Ministry of Petroleum & Natural Gas, working closely with
the Ministry of Finance and RBI, ensured that sufficient funds continued to
flow to the oil sector enabling IndianOil to meet
its commitment to supply products to consumers.One of the major reasons for the huge increase
in our borrowings was the considerable lag in receipt of Special Oil Bonds. Oil bonds worth Rs.
35,895 crore as compensation for sales during Jan. '08 to Sept. '08 were issued in three tranches
only in Nov. '08, Dec. '08, and Feb. '09. This coupled with the mechanism of special market
operations introduced by the RBI to dispose off oil bonds relatively eased IndianOil's liquidity
constraints and the borrowings came down to a level of Rs. 45,000crore as on 31st March
'09.Despite severe liquidity constraints during the year, IndianOil balanced the financing
requirements of its ongoing projects with the result that the capital expenditure touched a record
high of about Rs. 11,000 crore.The oil price crash from a high of $ 147 per barrel to about $ 35
per barrel in the latter part of the year brought great relief to IndianOil in terms of liquidity
though not with reference to profitability. Inventory procured during different periods at high
prices resulted in significant losses. This coupled with a Government-mandated reduction in
product prices and other factors such as lower refining margins,high interest cost and loss on
disposal of bonds affected profitability substantially. Without additional support from the
Government by way of full compensation of under-recoveries, it would not have been possible
for IndianOil to post any profit during the year. Therefore, it was only on account of full
compensation of under-recoveries by the Government that IndianOil could record a modest
annual profit of Rs. 2,950 crore. This is in contrast to a loss of Rs. 6,632 crore upto Sept. '08 and
Rs. 3,673 crore upto Dec. '08.The IndianOil Board has approved the Paradip Refinery project at
an estimated cost of Rs. 29,777 crore. With a debt-equity ratio of 60:40, about Rs. 18,000 crore
is to be funded by borrowings. Marking it as the single largest syndicated rupee term loan
arranged so far for a single project, IndianOil has achieved financial closure for the rupee
component of the loan to the extent of Rs. 14,900 crore through a consortium of 19 public sector
banks and two financial institutions. The balance loan component is proposed to be met by
foreign currency borrowings or by issue of bonds in the domestic market.As for the outlook for

37
the year 2009-10, the oil prices continue to be volatile and are trading in the region of $ 60 per
barrel in May '09 as compared to $ 35 per barrel in Mar. '09. Although the refining margins are
still thin, there is no cause for major concern. Till May '09, IndianOil's borrowings had come
down to about Rs. 32,000 crore with unsold bonds worth Rs. 28,000 crore still on hand. With
an appreciating rupee, lower interest rates and under-recoveries on the four sensitive products
expected to be manageable, we can hope for a better financial situation in the year 2009-10 both
in terms of profitability and liquidity.

Human resources

The year 2008-09 witnessed significant human resource interventions, whether it was revisiting
the corporate vision, integration of operations,recruitment of manpower at different levels or a
revision in employee compensation structure.A fifty-year young corporate, IndianOil has lived
up to its entrusted mandate of providing energy security to the country. In the last five decades,
while IndianOil evolved from a fledgling company to a confident conglomerate straddling the
entire spectrum of the hydrocarbon value chain, the oil & gas industry in India and abroad
matured and metamorphosed. We perceived a need to revisit and redefine our corporate vision to
uphold and protect IndianOil’s leadership position. The exercise of recreating the Vision was
completed during the year with the new vision having been approved by the IndianOil Board.
With business interests traversing the core areas of refining & marketing and extending to newer
ver ticals such as exploration & production,petrochemicals, natural gas, bio-fuels, etc., there
is a mounting need for manpower in IndianOil,especially in the new and emerging areas. During
2008-09, we recruited over 900 engineering & management graduates and CAs, the highest ever
in a year, through open and campus recruitment.To immediately bridge the gap between skill
requirement and availability in areas such as petrochemicals and bio-fuels, 23 executives were
also recruited at the mid-level during the year.This was a year of integration for IndianOil. The
marketing operations of Assam Oil Division (AOD) and IndianOil’s Marketing Division were
amalgamated. A series of confidence-building measures ensured that the sensitive people-related
issues were ironed out to ensure a smooth,organisation-benefitting fusion. The process of
integration of IBP, which star ted in the year 2007-08, was also completed during the year.

38
Consequent upon the merger of BRPL with IndianOil effective 25th March 2009, activities are
currently underway to ensure its seamless integration as our eighth refinery.As part of
IndianOil’s petrochemicals master plan,a Naphtha Cracker complex equipped with downstream
polymer units is coming up at Panipat Refinery. In a relatively short span of time since its
entry into the new business segment, IndianOil has stabilised the petrochemical production
facilities,added new product lines and continues to acquire new customers. Such a scale of
investment warranted redefining business strategies and realigning the organisational structure of
the petrochemicals group. A reputed management consultant was engaged for this purpose.
IndianOil’s commitment to good corporate citizenship got a boost during the year with
enhancement of the ceiling on annual expenditure for corporate social responsibility activities
from 0.75% of the net profit of the previous year to 2% of the retained profit of the previous
year. With more funds at its disposal now, IndianOil will identify and undertake more
community welfare projects. In pursuance of the best Corporate Governance practices and to
ensure greater transparency in the Corporation’s functioning, a ‘Whistle Blower Policy’
was framed and a procedure formulated to safeguard IndianOilPeople from the fear of
victimisation in reporting incidents of malpractices.The Government of India had set up the
second Pay Revision Committee for Public Sector Enterprises on 30th November 2006 under the
chairmanship of Justice MJ Rao to give recommendations in respect of pay revision for
Board & below Board level executives and nonunionised supervisors. Based on the
recommendations of the Committee, the Department of Public Enterprises has advised the
revision of pay scales w.e.f 1st January 2007 in Central Public Sector Enterprises. The revised
scales are currently under implementation at IndianOil.2008-09 marked a steady flow of
accolades to IndianOil. The Corporation emerged as the only PSU in the list of the top ’25 Best
Employers’ in a nationwide survey conducted by Outlook and Hewitt Associates. IndianOil won
the Petroleum Federation of India (Petrofed) Oil & Gas Industry Award for the best Human
Resources Management Company of the year 2008.The prestigious ‘BML Munjal Award for
Excellence in Learning and Development’ for the year 2008-09 too came our way. This award
validates the innovative learning & development measures undertaken by IndianOil and
reinforces its reputation of being an ‘academy company.’

awards & recognitions

39
1.l IndianOil yet again clinched the top slot among the seven Indian
companies
featured in the Fortune 'Global 500' listing of the world's largest companies
for 2008, improving its ranking to 105.
2.l IndianOil was the only petroleum company among 100 other industrial
giants to emerge as 'The Most Trusted Fuel Pump Brand' in ET's Brand
Equity annual survey for the year 2008. Among the 'Top 50 Service Brands'
of the country, it bagged the 7th position.
3.l IndianOil received the coveted World Petroleum Congress Excellence
Award
2008 at Madrid, Spain, in the technical development category for its
pathbreaking
R&D work in hydro-processing technology for Green Fuels.
4.l IndianOil won the SCOPE Gold Trophy for Environmental Excellence &
Sustainable Development and Commendation Certificate for Good
Corporate Governance for the year 2007-08.
5.l IndianOil continued to top the annual corporate listings of leading
business
publications such as the Economic Times, Business India and
BusinessWorld in addition to topping the Oil & Gas category in the Financial
Express-500 listing.
6.l IndianOil has been ranked as one of Best Employers in a survey
conducted
by Hewitt Associates in association with Outlook Business magazine.
7.l IndianOil bagged the prestigious BML Munjal Award for Excellence in
Learning and Development for the year 2009 and was the only award
winner in the public sector category.
8.l In recognition of its operational excellence and business solutions,
IndianOil
received a string of prestigious awards - SAP ACE AWARD (for Customer
Excellence) for the year 2008 from SAP AG for B2B application for oil
exchanges between IndianOil and BPCL SAP systems, Economics Times
Smart Workplace Award for Corporate Business Technology Centre (that
recognises companies using technology to enhance productivity at the
work place) and CIO 100 Award for Innovations in Implementing Business
Continuity for SAP R/3 Environment (for the third consecutive year).
9.l IndianOil received the 'Oil & Gas Supply Chain Excellence' award at the
Second Express, Logistics & Supply Chain Conclave (Asia-Pacific)
organised by India Times Mindscape with Business India group.
10.l Indian Express Uptime Champion Award 2008 was conferred on
IndianOil's

40
Corporate Business Technology Centre in recognition of its well designed
IT infrastructure uptime strategy.
11.l In recognition of its Kisan Seva Kendra initiative in rural markets,
IndianOil
received the prestigious 'Most Admired Retailer of the Year - Rural Retailing'
award at the India Retail Forum held in Mumbai.
12.l For the fourth consecutive year, IndianOil was conferred the Safety
Innovation Award instituted by the Safety & Quality Forum of the Institution
Of Engineers (India).
13.l Indian Oil has been conferred the 'Business Super brand 2008' status by
The Super brands Council of India.
14.l IiPM won the ISTD Training Award 2007-08 for innovative training
Practices.

Management

Profile of Mr. Sarthak Behuria

Chairman, Indian Oil Corporation Limited

Mr. Sarthak Behuria is Chairman, Indian Oil Corporation

Limited, India’s largest commercial enterprise with US$61 billion turnover for the year 2007-
2008. He is also Chairman (part-time) of group Companies, Chennai Petroleum Corporation Ltd
besides heading IOT infra structure a joint venture for building and operating terminal ling
services for petroleum products.

41
Mr. Behuria heads several reputed industry organizations, chief among them being SCOPE
(Standing Conference of Public Enterprises) in India. As First Vice-President, he also represents
Asia on the board of World LPG as Asso-sarthak Behuriaciation. Mr. Behuria has been
conferred the Honorary Fellowship of Energy Institute, UK, which is the highest level of
professional recognition reserved for those who have made a notable and distinguished
contribution to the energy industry. Mr. Behuria's expertise in India's Oil & Gas sector has been
sought at many
International forums.Widely travelled, Mr. Behuria has presented several papers in national and
international fora. He recently chaired a session on 'Natural Gas as Transportation Fuel' at the
19th World Petroleum Congress organized at Madrid. He was also invited to deliver a special
address at the Asia-Pacific Business Forum at UNESCAP held at Bangkok. Representing India
at the 3rd OPEC International Seminar and the 95,h session of International Labor Conference,
he spoke on behalf of India in matters of policy related to the oil sector. An alumnus of St.
Stephen's College, Delhi, and the Indian Institute of Management (MM), Ahmadabad,
Mr. Behuria joined Burmah Shell in 1973 before being absorbed in Bharat Petroleum
Corporation Ltd. where he rose to the top position of Chairman & Managing Director. He also
served the erstwhile Oil Coordination Committee of the Ministry of Petroleum & Natural Gas,
Govt, of India. Under Mr. Behuria's stewardship, Indian Oil is transforming into a major,
diversified, transnational integrated energy company, and has set its sight to make its presence
across the entire hydro-carbon value chain and alternative sources of energy. Besides
consolidation in the core areas of refining and marketing, Mr. Behuria is pursuing a string of
strategic initiatives across the hydrocarbon value chain for forward integration into
petrochemicals and back-wards into exploration & production of oil, and diversification into
natural gas business, besides globalization of marketing operations. In recognition of his
distinguished career in the oil sector, Mr. Behuria has been named among the top 10
most influential oilmen in India by 'Upstream', the internationally acclaimed oil & gas
newspaper. Known to be a strong "people's man", he practices a management style that is both
open and transparent. He is also a keen golf and bridge player. Honorary Positions Held
Chairman of SCOPE (Standing Conference of Public Enterprises), the apex body of public
enterprises in India for the second consecutive term (March 2006 to date).Chairman of
Petroleum Federation of India (Petro Fed), representing Indian and international companies and
organizations associated with the Indian hydrocarbon sector (August 2003 to date).
Chairman of Council of Indian Employers - CIE, an apex body of employers in India.
First Vice-President representing Asia on the board of World LP Gas Association (2006 to date).
Honors Conferred the Honorary Fellowship of Energy Institute, UK - for distinguished
contribution to the energy industry. Named among the top 10 most influential oilmen in India by
Upstream, the internationally acclaimed oil & gas journal. Conferred the 'Udyog Ratna' award by
the PHDCCI in 2006.Chosen to receive the prestigious "SCOPE Award for Excellence and
Outstanding

BOARD OF DIRECTORS

42
B M Bansal
Director
(Planning&Business Development)

S V Narasimhan
Director (Finance)

V C Agrawal
Director (Human Resources) &
Director-in-charge (IBP Division)

G C Daga
Director (Marketing)

B N Bankapur
Director (Refineries)

Anand Kumar
Director (Research & Development)

K K Jha
Director (Pipelines)

S Sundareshan
Additional Secretary
Ministry Of Petroleum & Natural Gas

P K Sinha
Additional Secretary & Financial Advisor
Ministry Of Petroleum & Natural Gas

Prof.(Mrs.) Indira J. Parikh

Former Prof. IIM, Ahmedabad
and President, FLAME, Pune

Anees Noorani
Managing Director,
Zodiac Clothing Company Ltd

Michael Bastian
Former Chairman & Managing Director, Syndicate Bank

Dr.(Mrs.) Indu Shahani

Principal, HR College of Commerce & Economics,

43
Mumbai and Sheriff of Mumbai

Prof. Gautam Barua,

Director,
Indian Institute of Technology,Guwahati

N.K. Poddar
Senior Advocate, Kolkata

Raju Ranganathan
Company Secretary

Principal Executives
D K Samantaray Chief Vigilance Officer
Vipin Kumar Advisor (Security)

Executive Directors (Corporate Office)

C Dasgupta Gas
S S Soni Information Systems
V P Sharma Internal Audit
V K Sood Corporate Finance
S C Jain Finance-Business Development
R Narayanan Corporate Affairs
A K Guha Business Development (Refinery & Pipelines)
K K Gupta IndianOil Institute of Petroleum Management
Thomas Antony Human Resources Development
A M K Sinha Corporate Planning & Economic Studies
N K Khosla Safety, Health & Environment
Satish Kumar Human Resources
Ms. D Lilly Pricing & Taxation
V S Okhde Exploration & Production
A P Verghese LNG
A S Ujwal International Trade
S Ramasamy Information Systems
S C Meshram Petrochemicals

44
R S Solanki CEO, IndianOil Foundation

Executive Directors (Refineries Division Headquarters)

P K Goyal Finance
A K Malhotra Projects
H V Singh Projects-PDRP
N K Bansal Shipping
N K Khosla Projects - PNCP
Sudhir Bhalla Human Resources
A Panda Safety & Environment
C S Das Maintenance & Inspection
Prithviraj Sur Operations
U L Dohare Projects

Executive Directors (Refineries Division)

J P Guharay Mathura Refinery
S K Garg Barauni Refinery
A K Roy Haldia Refinery
G Bhanumurthy Guwahati Refinery
R K Ghosh Incharge-Panipat Refinery
A S Basu Gujarat Refinery
S N Choudhary Projects-PNCP, Panipat
A Saran Bongaigaon Refinery

Executive Directors (Pipelines Division)

T Vasudevan Finance
A K Rauniar Human Resources
T V Mohan Northern Region Pipelines
Anil Tandon Operations
S K Sinha Western Region Pipelines

45
Executive Directors (Marketing Division Headquarters)
Gautam Dutta Finance
R K Puri Coordination
Gautam Datta Human Resources
Amitava Chatterjee Lubes
R Sareen Aviation
M Nene Supplies
Mrinal Roy LPG
N Srikumar CC, Branding & Planning
S K Gupta Consumer Sales
V K Jeychandran Gujarat State Office
Satwant Singh Engineering & Projects
M Ramana Andhra Pradesh State Office
D Sen West Bengal State Office
Deepak Pandya Maharashtra State Office
E Unnikrishnan Pricing
H S Bedi Retail Sales
DSL Prasad Tamil Nadu State Office

Executive Directors (Assam Oil Division)

Mr. Subrato Ghosh Assam Oil Division, Digboi

Executive Directors (R&D Centre)

Dr R K Malhotra R&D

Executive Directors (IBP Division)

S K Roy Cryogenics
V Ramaswamy Finance

46
IndianOil Major Units

Registered Office: IndianOil Bhavan,

G-9, Ali Yavar Jung Marg,
Bandra (East), Mumbai -400 051

Corporate office

Refineries Division

Head Office: SCOPE Complex, Core-2

7, Institutional Area, Lodhi Road
New Delhi -110003

Barauni Refinery: P.O. Barauni Oil Refinery,

Dist. Begusarai -861 114 (Bihar)

Gujarat Refinery:P.O. Jawahar Nagar,

Dist. Vadodara -391 320(Gujarat)

Guwahati Refinery: P.O. Noonmati,

Guwahati-781020 (Assam)

Haldia Refinery: P.O. Haldia Refinery

Dist. Midnapur-721 606(West Bengal)

47
Mathura Refinery: P.O. Mathura Refinery,
Mathura -281 005(Uttar Pradesh)

Panipat Refinery: P.O. Panipat Refinery,

Panipat-132140(Haryana)

Bongaigaon Refinery: P.O. Dhaligaon,

Dist. Chirang, Assam - 783 385

Marketing Division

Head Office: G-9, Ali Yavar Jung Marg,

Bandra (East), Mumbai -400 051

Northern Region: IndianOil Bhavan,

1, Aurobindo Marg, Yusuf Sarai
New Delhi -110016

Eastern Region: IndianOil Bhavan,

2, Gariahat Road, South (Dhakuria)
Kolkata -700 068

Western Region: 254-C, Dr. Annie Besant Road,

Worli Colony, Mumbai -400 025

Southern Region: IndianOil Bhavan

139, Nungambakkam High Road

R&D Centre: Sector 13 Faridabad -121 007

(Haryana)

Pipelines Division

Head Office: A-1 Udyog Marg,

Sector-1, Noida-201301

Northern Region: P.O. Panipat Refinery

Panipat -132 140 (Haryana)

48
Western Region: P.O. Box 1007,Bedipara,
Morvi Road,Gauridad,
Rajkot-360 003

Southern Region: 139, Nungambakkam High Road

Chennai – 600034

Assam Oil Division: P.O. Digboi -768 171

(Assam)

IBP Division 34-A, Nirmal Chandra Street,

Kolkata - 700 013

Business Group(Cryogenics) Sewri Terminal II,

Sewri (East),
Mumbai - 400 015

Business Group(Cryogenics),
A-4, MIDC, Ambad,
Nasik - 422 010

Group Companies:

Chennai Petroleum Corporation Ltd: 536, Anna Salai,

Teynampet, Chennai - 600 018

IndianOil Technologies Ltd: SCOPE Complex, Core-2

7, Institutional Area,Lodhi Road,New Delhi-110003
IndianOil (Mauritius) Ltd: Mer Rouge
Port Louis

Maruritius IOC Middle East FZE: LOB 14209, Jebel Ali Free Zone,
P.O.Box: 261338

Lanka IOC PLC: Lanka IOC Head Office

Level 20, West Tower,
World Trade Center,

49
Echelon Square, Colombo - 01,
Sri Lanka.

IndianOil Major Projects

IndianOil continues to lay emphasis on infrastructure development. Towards this end, a number
of schemes have been initiated with increasing emphasis on project execution in compressed
schedules as per world benchmarking standards. Schemes for improvement and increased
profitability through debottlenecking / modifications / introduction of value added products are
being taken up in addition to grassroots facilities. Project systems have been streamlined in line
with ISO standards.

GRASSROOTS REFINERY PROJECT AT PARADIP (ORISSA)

Project Cost: Rs. 29,777.00 crore

Expected Commissioning: March-November, 2012
Benefit: The project will help in partially meeting the deficit in distillates viz. LPG, Naphtha,
MS, Jet/Kero, Diesel and other products, in the eastern part of the country. The complex will
generate intermediate petrochemicals feedstock.
Brief Description: A 15 MMTPA refinery is being constructed at Paradip in Orissa. The
refinery will have, apart from a Crude and Vacuum Distillation Unit, a Hydrocracking Unit, a
Delayed Coker Unit and other secondary processing facilities. This will be the most modern
refinery in India with a nil-residue production, and the products would meet stringent
specifications. IndianOil has taken over 3344 acres of land for the project and necessary
infrastructure development jobs prior to setting up of the main refinery are in progress.

RESIDUE UPGRADATION AND MS/HSD QUALITY IMPROVEMENT PROJECT AT GUJARAT REFINERY

Project Cost: Rs. 5,882.00 crore

Expected Commissioning: January, 2010
Benefit: The objectives of the project are multifold. It will ensure compliance to product
quality requirement of MS/HSD to EURO-III/IV levels, enable processing of increased
quantity of high sulphur crude, and improvement in distillate yield.
Brief Description: The project envisages setting up of a number of units like VGO-HDT,
ATF-Merox, FCC-Merox, LPG-Merox, ISOM, Coker, DHDT, HGU (PDS) and SRU.

50
IMPROVEMENT IN DIESEL QUALITY AND CAPACITY EXPANSION AT HALDIA REFINERY (WEST BENGAL)

Project Cost: Rs. 2,869.00 crore

Expected Commissioning: January, 2010
Benefit: Improvement in quality of HSD conforming to Euro-II/Euro-IV equivalent norms. In
addition, it will improve the distillate yield and crude processing capacity of the refinery.
Brief Description: The project comprises installation of facilities for improvement in Diesel
quality and Distillate yield (Hydrocracker) at Haldia, and capacity expansion of the Refinery
from 6 MMTPA to 7.5 MMTPA. This involves Once-through Hydrocracking Unit (OHCU),
Hydrogen Unit, Sulphur Recovery Units, revamp of Crude Distillation Units, related utilities
and offsite facilities.

NAPHTHA CRACKER AND POLYMER COMPLEX AT PANIPAT (HARYANA)

Project Cost: Rs. 14,439.00 crore

Expected Commissioning: February, 2010
Benefit: This project is the cornerstone for IndianOil's entry into petrochemicals thereby
creating a new business line for growth. For the state of Haryana, this project shall lay the
foundation for creation of a world-class petrochemicals hub, which will engender significant
industrial activity in the coming years.
Brief Description: The project envisages setting up of a Naphtha Cracker based on captive
utilisation of naphtha from Panipat, Mathura and Koyali refineries of IndianOil. With a
capacity of 800,000 MT/year of ethylene production, the Cracker Complex will have
associated units viz. hydrogenation, butadiene extraction, benzene extraction etc. besides
downstream polymer units like Swing Unit (LLDPE/HDPE), a dedicated HDPE Unit,
Polypropylene Unit and MEG Unit.

MS QUALITY UPGRADATION PROJECT AT PANIPAT REFINERY (HARYANA)

Project Cost: Rs. 1,131.00 crore

Expected Commissioning: December, 2009
Benefit: The implementation of this project will improve the quality of MS to conform to
Euro-II/Euro-IV equivalent norms.
Brief Description: The major process units under this project are PENEX (Isomerisation),
Naphtha HTU, Reformate Splitter and FCC Gasoline Desulpurisation Unit.

FCC GASOLINE DESULPHURISATION UNIT AT MATHURA REFINERY (UTTAR PRADESH)

51
Project Cost: Rs. 348.00 crore
Expected Commissioning: January, 2010
Benefit: The implementation of this project will improve the quality of MS to conform to
Euro-IV equivalent norms.
Brief Description: In this project a FCC Gasoline Desulpurisation Unit will be installed.

MS QUALITY UPGRADATION PROJECT BARAUNI REFINERY (BIHAR)

Project Cost: Rs. 1,492.00 crore

Expected Commissioning: June, 2010
Benefit: The implementation of this project will improve the quality of MS to conform to
Euro-III equivalent norms.
Brief Description: The major process units under this project are Isomerisation, Naphtha
Hydrotreater, Reformate Splitter, FCC Gasoline Desulpurisation Unit and Hydrogen
Generation Unit.

MS QUALITY UPGRADATION PROJECT AT GUWAHATI REFINERY (ASSAM)

Project Cost: Rs. 372.00 crore
Expected Commissioning: June, 2010
Benefit: The implementation of this project will improve the quality of MS to conform to
Euro-III equivalent norms.
Brief Description: The major process units under this project are Isomerisation, Light
Naphtha Splitter, Naphtha Hydrotreater and Indmax Gasoline Splitter.

MS QUALITY UPGRADATION PROJECT AT DIGBOI REFINERY (ASSAM)

Project Cost: Rs. 356.00 crore
Expected Commissioning: June, 2010
Benefit: The implementation of this project will improve the quality of MS to conform to
Euro-III equivalent norms.
Brief Description: The major process units under this project are Isomerisation, Naphtha
Splitter, Naphtha Hydrotreater and Reformate Splitter.

52
DADRI-PANIPAT R-LNG SPUR PIPELINE

Project Cost: Rs. 298.00 crore

Expected Commissioning: January, 2010
Benefit: The 132 km long 30 inch diameter spurline carrying regassified LNG (R-LNG) will
stretch from GAIL India’s Dadri terminal in UP to Panipat.
Brief Description: The proposed R-LNG pipeline will provide for an economical means of
feeding natural gas to Panipat refinery.

PANIPAT REFINERY EXPANSION FROM 12 MMTPA TO 15 MMTPA

Project Cost: Rs. 1,007.83 crore
Expected Commissioning: December, 2009 / August, 2010
Benefit: To meet the growing deficit of petroleum products in the high demand Northwest
region of India.
Brief Description: The project consists of capacity revamp of Crude and Vacuum Distillation
Units (CDU / VDU), Once through Hydrocracking Unit (OHCU), Delayed Coking Unit, and
installation of second stage reactors in Diesel Hydrotreating Unit (DHDT).

CHENNAI - BANGALORE PRODUCT PIPELINE

Project Cost: Rs. 273.00 crore

Expected Commissioning: December, 2009
Benefit: The pipeline will facilitate effective evacuation of products from CPCL refinery in
Chennai and ensure uninterrupted, regular and economical transportation of petroleum
products to Bangalore-fed areas in a cost-effective manner.
Brief Description: Project consists of laying 14/12-inch diameter 290 km long product
pipeline from CPCL refinery, Chennai to existing TOP at Devanagonthi (Bangalore).

BUSINESS

Refining

Born from the vision of achieving self-reliance in oil

refining and marketing for the nation, IndianOil has

53
gathered a luminous legacy of more than 100 years of
accumulated experiences in all areas of petroleum
refining by taking into its fold, the Digboi Refinery
commissioned in 1901.

IndianOil controls 10 of India’s 20 refineries. The group

refining capacity is 60.2 million metric tonnes per
annum (MMTPA) or 1.2 million barrels per day -the
largest share among refining companies in India. It
accounts for 33.8% share of national refining capacity.

The strength of IndianOil springs from its experience of

operating the largest number of refineries in India and
adapting to a variety of refining processes along the
way. The basket of technologies, which are in operation
in IndianOil refineries include: Atmospheric/Vacuum
Distillation; Distillate FCC/Resid FCC; Hydrocracking;
Catalytic Reforming, Hydrogen Generation; Delayed
Coking; Lube Processing Units; Visbreaking; Merox
Treatment; Hydro-Desulphirisation of Kerosene&Gasoil
streams; Sulphur recovery; Dewaxing, Wax Hydro
finishing; Coke Calcining, etc.

The Corporation has commissioned several grassroot

refineries and modern process units. Procedures for
commissioning and start-up of individual units and the
refinery have been well laid out and enshrined in various
customized operating manuals, which are continually
updated.

IndianOil refineries have an ambitious growth plan with

an outlay of about Rs. 55,000 crore for capacity
augmentation, de-bottlenecking, bottom upgradation and
quality upgradation. Major projects under
implementation include a 15 MMTPA grassroots
refinery at Paradip, Orissa, Naphtha Cracker and
Polymer Complex at Panipat, Panipat Refinery

54
expansion from 12 MMTPA to 15 MMTPA, among
others.

In addition, petrol quality upgradation projects are under

implementation at Panipat, Mathura, Barauni, Guwahati
and Digboi refineries proposed to be completed by the
end of 2009.

On the environment front, all IndianOil refineries fully

comply with the statutory requirements. Several Clean
Development Mechanism projects have also been
initiated. To address concerns on safety at the work
place, a number of steps were taken during the year,
resulting in reduction of the frequency of accidents.

Innovative strategies and knowledge-sharing are the

tools available for converting challenges into
opportunities for sustained organisational growth. With
strategies and plans for several value-added projects in
place, IndianOil refineries will continue to play a leading
role in the downstream hydrocarbon sector for meeting
the rising energy needs of our country.

55
Pipelines

Indian Oil Corporation Ltd. operates a network of 10329 km long crude oil and petroleum
product pipelines with a capacity of 71.60 million metric tonnes per annum. Cross-country
pipelines are globally recognised as the safest, cost-effective, energy-efficient and environment-
friendly mode for transportation of crude oil and petroleum products.

During the year 2008-09 IndianOil’s crude oil pipelines registered the throughput of 38.46
million metric tonnes. Corporation’s largest crude oil handling facility at Vadinar marked the
berthing of 4000th tanker since inception. The terminal operates two offshore Single Point
Mooring (SPM) systems, to feed Koyali, Mathura and Panipat refineries.

Raising efficiency and emerging as the least-cost supplier, IndianOil has added the 330-km
Paradip-Haldia crude oil pipeline (PHCPL) to its bustling pipeline network during the year. The
PHCPL system has a Single Point Mooring installed 20-km off the Paradip coast. With this, it is
now able to pump crude oil from Very Large Crude Carriers to the tank-farm set up onshore and
onward to Haldia through the pipeline. The Pipeline has replaced the earlier system of receipt of
crude oil at Haldia port through smaller tankers.

On the west coast, the Mundra-Panipat pipeline is being further augmented to transport an

56
additional 3 Million Metric Tonne Per Annum (MMTPA) of crude oil to Panipat Refinery, under
expansion from 12 to 15 MMTPA. Additional requirement of crude oil for Koyali, Mathura and
Panipat refineries is planned to be met by de-bottlenecking and augmenting Salaya-Mathura
Pipeline system.

IndianOil’s product pipelines, connecting its refineries directly to high-consumption centres,

achieved a throughput of 20.92 million tonnes during 2008-09. IndianOil has now joined the
select group of companies in India which owns and operates LPG pipelines by building its first
such cross-country facility linking Panipat with Jalandhar. Apart from providing better logistics,
this pipeline can transport 700,000 tonnes of LPG from Kohand near Panipat refinery to
IndianOil’s bottling plants at Jalandhar and Nabha in Punjab. The pipeline will also
simultaneously to meet the requirement of LPG at Una and Baddi in Himachal Pradesh and at
Jammu and Leh in J&K.

Two pipelines linking the major airports of India have been commissioned during the year to
transport Aviation Turbine Fuel to these airports. The 36 km long pipeline from existing
Devangonthi terminal to New Bengaluru International Airport, Devanhalli, Bengaluru was
commissioned in October 2008. The 95 km long ATF pipeline from CPCL to Chennai AFS was
commissioned in December 2008.

In its continuous efforts of expanding the network IndianOil is implementing 290 km long
product pipeline from Chennai to Bangalore to facilitate cost effective positioning of products at
consumption centre located in and around Bangalore and to strengthen product positioning
capabilities of CPCL Refinery. IndianOil is also implementing a 217 km long branch pipeline
from Koyali-Sanganer Pipeline at Viramgam to existing scrapper station at Churwa along with
use of a 14 km long existing pipeline from Churwa to Kandla.

Marketing
Reaching out to a Billion Hearts

IndianOil has one of the largest petroleum marketing and distribution networks in Asia, with
over 35,000 marketing touch points. Its ubiquitous petrol/diesel stations are located across
different terrains and regions of the Indian sub-continent. From the icy heights of the Himalayas
to the sun-soaked shores of Kerala, from Kutch on India's western tip to Kohima in the verdant
North East, 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

57
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 India's No. 1 brand by UK-based Brand Finance, an independent
consultancy that deals with valuation of brands. It was also listed as India's 'Most Trusted Brand'
in the 'Gasoline' category in a Readers' Digest - AC Nielsen survey. In addition, IndianOil
topped The Hindu Businessline's "India's Most Valuable Brands" list. 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.

Research & Development Centre

In today's dynamic business environment, innovation through a sustained process of Research &
Development (R&D) is the only cutting edge tool for organisations to thrive. With emphasis on
development and speedy commercialisation of globally competitive products, processes and
technologies, the focus has now shifted from R&D to RD&D (Research, Development &
Deployment).

INDMAX, a hallmark technology developed by the Centre for maximisation of LPG and light
distillates from refinery residue, has been selected by IndianOil for setting up a 4 million metric
tonnes per annum (MMTPA) INDMAX unit as a part of the 15 MMTPA integrated refinery-
cum-petrochemicals complex at Paradip, as well as at Bongaigaon Refinery & Petrochemicals
Ltd. (BRPL). The Centre has also licenced its Diesel Hydrotreating technology to these two
refineries. These successes have catapulted IndianOil R&D into the elite league of multinational
technology licensors.

Standing in the company of six worldwide technology holders for Marine Oils, with the second
global OEM (original equipment manufacturer) approval by Wartsila, Switzerland, IndianOil's
SERVO Marine Oils are now technically qualified to cater to the lubrication requirements of
more than 90% of the world's marine engine population. In the power-generation segment, the
newly developed SERVO Marine K-Series was approved by Yanmar Co. Ltd. of Japan for use
in their engines operating on distillate fuels.

The R&D Centre continues to provide significant support to the IndianOil Group refineries in
product quality improvement, evaluation of catalysts and additives, health assessment of

58
catalysts, material failure analysis, troubleshooting and in improving overall efficiency of
operations. In-house developed FCC models are not only being used in IndianOil refineries for
process optimisation but a similar model has also been sold to a multinational company.
IndianOil has formed a joint venture company, Indo Cat Pvt. Ltd., with Intercat, USA, for
manufacturing 15,000 tonnes per annum of FCC (fluidised catalytic cracking) catalysts &
additives in India, for catering to rising global demand.

As a step towards ensuring energy security for the nation, IndianOil has launched several
initiatives to exploit alternative sources of energy such as Hydrogen and Bio-fuels. Subsequent
to commissioning India's first experimental H-CNG (Hydrogen-Compressed Natural Gas)
dispensing unit at the R&D Centre campus at Faridabad, demonstration projects are underway
on use of H-CNG blends in heavy and light vehicles. IndianOil is also setting up India's first
commercial H-CNG dispensing station at one of its retail outlets in Delhi in the year 2008 for
fuelling experimental vehicles running on H-CNG blends as well as on pure Hydrogen.
IndianOil R&D is also working on production, storage, transportation, distribution and
commercialisation of Hydrogen as an alternative fuel.

In Bio-fuels, besides spearheading commercialisation of Ethanol-Blended Petrol in the country,

IndianOil has been in the forefront of technology development for Bio-diesel production from
various edible and non-edible oils and its application in vehicles. Pioneering studies by
IndiaOil's R&D Centre established that Bio-diesel produced from Jatropha seeds were at par
with that produced from vegetable oils. In the past few years, the R&D Centre has studied the
entire value chain of Bio-diesel, starting from Jatropha plantation to field trials on passenger
cars, light commercial vehicles and railway locos in collaboration with several vehicle
manufacturers, railways and state transport undertakings.

IndianOil, along with its subsidiary IndianOil Technologies Ltd., has been engaged in successful
marketing of in-house developed technologies, technical services and training not only in India
but abroad too.

IndianOil has, till date, invested close to Rs. 1,000 crore in setting up world-class facilities at its
R&D Centre for building world-class capabilities in analytical services, engines, test rigs and
pilot plants for all major refinery processes, catalyst characterisation & development, etc. It
plans to invest about Rs. 500 crore during the period 2007-12 to maintain its leadership in
downstream R&D activities in the hydrocarbon sector. While continuing with cutting edge R&D
in the core areas of lubricants formulations, refinery process technologies and pipeline
transportation, the thrust would now be on commercialising the developed technologies and
initiating research in new frontier areas such as petrochemicals, residue gassification, coal-to-
liquid, gas-to-liquid, alternative fuels, synthetic lubricants, nano-technology, etc. Through these
R&D initiatives, IndianOil will continuously enhance value for all its stakeholders

Lubricant Research

59
With over 3500 formulations of lubricating oil and greases, the SERVO product line developed
by the R&D Centre enjoys the largest market share in India. While meeting the diverse needs of
the Indian Industry as well as the Defence services, Railways, public utilities and transportation
sectors, the R&D Centre developed and introduced many multigrade rail road oils and marine
oils, making the Corporation the sixth global player and the sole Indian presence in the select
league of marine oil technology developers the world over. SERVO Marine Oil series for DG
sets has been approved by Wartsila of Finland and Switzerland for their entire series of Wartsila-
Sulzur engines. Another accomplishment is the global approval from MAN B&W of Denmark
for IndianOil's marine oils.
Technology Provider

In today's dynamic business environment, innovation through a sustained process of Research &
Development (R&D) is the only cutting edge tool for organisations to thrive. With emphasis on
development and speedy commercialisation of globally competitive products, processes and
technologies, the focus has now shifted from R&D to RD&D (Research, Development &
Deployment).

INDMAX, a hallmark technology developed by the Centre for maximisation of LPG and light
distillates from refinery residue, has been selected by IndianOil for setting up a 4 million metric
tonnes per annum (MMTPA) INDMAX unit as a part of the 15 MMTPA integrated refinery-
cum-petrochemicals complex at Paradip, as well as at Bongaigaon Refinery & Petrochemicals
Ltd. (BRPL). The Centre has also licenced its Diesel Hydrotreating technology to these two
refineries. These successes have catapulted IndianOil R&D into the elite league of multinational
technology licensors

Standing in the company of six worldwide technology holders for Marine Oils, with the second
global OEM (original equipment manufacturer) approval by Wartsila, Switzerland, IndianOil's
SERVO Marine Oils are now technically qualified to cater to the lubrication requirements of
more than 90% of the world's marine engine population. In the power-generation segment, the
newly developed SERVO Marine K-Series was approved by Yanmar Co. Ltd. of Japan for use
in their engines operating on distillate fuels.

The R&D Centre continues to provide significant support to the IndianOil Group refineries in
product quality improvement, evaluation of catalysts and additives, health assessment of
catalysts, material failure analysis, troubleshooting and in improving overall efficiency of
operations. In-house developed FCC models are not only being used in IndianOil refineries for
process optimisation but a similar model has also been sold to a multinational company.
IndianOil has formed a joint venture company, Indo Cat Pvt. Ltd., with Intercat, USA, for
manufacturing 15,000 tonnes per annum of FCC (fluidised catalytic cracking) catalysts &
additives in India, for catering to rising global demand.

As a step towards ensuring energy security for the nation, IndianOil has launched several

60
initiatives to exploit alternative sources of energy such as Hydrogen and Bio-fuels. Subsequent
to commissioning India's first experimental H-CNG (Hydrogen-Compressed Natural Gas)
dispensing unit at the R&D Centre campus at Faridabad, demonstration projects are underway
on use of H-CNG blends in heavy and light vehicles. IndianOil is also setting up India's first
commercial H-CNG dispensing station at one of its retail outlets in Delhi in the year 2008 for
fuelling experimental vehicles running on H-CNG blends as well as on pure Hydrogen.
IndianOil R&D is also working on production, storage, transportation, distribution and
commercialisation of Hydrogen as an alternative fuel.
In Bio-fuels, besides spearheading commercialisation of Ethanol-Blended Petrol in the country,
IndianOil has been in the forefront of technology development for Bio-diesel production from
various edible and non-edible oils and its application in vehicles. Pioneering studies by
IndiaOil's R&D Centre established that Bio-diesel produced from Jatropha seeds were at par
with that produced from vegetable oils. In the past few years, the R&D Centre has studied the
entire value chain of Bio-diesel, starting from Jatropha plantation to field trials on passenger
cars, light commercial vehicles and railway locos in collaboration with several vehicle
manufacturers, railways and state transport undertakings.

IndianOil, along with its subsidiary IndianOil Technologies Ltd., has been engaged in successful
marketing of in-house developed technologies, technical services and training not only in India
but abroad too.

IndianOil has, till date, invested close to Rs. 1,000 crore in setting up world-class facilities at its
R&D Centre for building world-class capabilities in analytical services, engines, test rigs and
pilot plants for all major refinery processes, catalyst characterisation & development, etc. It
plans to invest about Rs. 500 crore during the period 2007-12 to maintain its leadership in
downstream R&D activities in the hydrocarbon sector. While continuing with cutting edge R&D
in the core areas of lubricants formulations, refinery process technologies and pipeline
transportation, the thrust would now be on commercialising the developed technologies and
initiating research in new frontier areas such as petrochemicals, residue gassification, coal-to-
liquid, gas-to-liquid, alternative fuels, synthetic lubricants, nano-technology, etc. Through these
R&D initiatives, IndianOil will continuously enhance value for all its stakeholders.

Lubricant Research

With over 3500 formulations of lubricating oil and greases, the SERVO product line developed
by the R&D Centre enjoys the largest market share in India. While meeting the diverse needs of
the Indian Industry as well as the Defence services, Railways, public utilities and transportation
sectors, the R&D Centre developed and introduced many multigrade rail road oils and marine
oils, making the Corporation the sixth global player and the sole Indian presence in the select
league of marine oil technology developers the world over. SERVO Marine Oil series for DG
sets has been approved by Wartsila of Finland and Switzerland for their entire series of Wartsila-

61
Sulzur engines. Another accomplishment is the global approval from MAN B&W of Denmark
for IndianOil's marine oils.
Technologies & Services

IndianOil offers services in the field of Research and Development. The clientele includes
defence, railways, automotive oil manufactures, textile producers, industries producing steel,
ferroalloys, power plant industries and multinational companies involved in the business of
petroleum products, petrochemicals and bio fuels etc. IndianOil R&D Centre also provides
expertise to universities, IITs and other academic institutions for collaborative programmes and
joint research ventures.

IndianOil has wide-ranging expertise in setting up and operating greenfield refineries and
brownfield expansions. It has pioneered pipeline transportation knowhow in India, and has over
four decades of experience in putting up marketing infrastructure across the sub-continent, to
reach petroleum products to millions of people everyday. Backed by cutting edge R&D that
offers innovative products, technologies and services cover the entire gamut of downstream
operations.

IndianOil has been lending its expertise for nearly two decades to various countries in several
areas of refining, marketing, transportation, training and R&D. These include Sri Lanka, Kuwait,
Bahrain, Iraq, Abu Dhabi, Tanzania, Ethiopia, Algeria, Nigeria, Nepal, Bhutan, Maldives,
Malaysia and Zambia.

IndianOil's capabilities in the downstream sector of operations in the oil sector include; technical
and consultancy services, operation & maintenance, techno-economic feasibility/special studies,
turnaround maintenance – planning, monitoring & execution, inspection, quality control:
benchmarking, shipping and commercial, logistics, research & development, safety and
industrial hygiene, quality auditing/ management, materials management, training.

These services are rendered through the coordination division of the R&D Centre. Customers
may contact DGM Coordination, to reach the concerned personnel at R&D Centre. To get an
insight into the world of IndianOil's capabilities

Petrochemicals

Petrochemical new growth path

IndianOil is continuously striving for growth through integration of its core business with
opportunities available in the petrochemicals sector.

62
The LAB unit (Linear Alkyl Benzene, used in the manufacture of detergents) at Gujarat Refinery
achieved over 100% capacity utilisation in the year 2007-2008.

The product has been successfully marketed within India, attaining a significant market share,
and has also been exported.

An integrated PX/PTA plant at Panipat Refinery has commenced commercial production since
June 2006.

IndianOil is close to commissioning a world scale Naphtha Crackerproject along with

downstream polymer units at Panipat. In addition, activities for setting up integrated complex of
refinery and petrochemicals at Paradip in Orissa have also progressed significantly

LAB (Linear Alkyl Benzene):

The year 2004-05 marked IndianOil’s big-ticket entry into petrochemicals with the
commissioning of the country’s largest Linear Alkyl Benzene (LAB) plant at Gujarat Refinery in
August 2004. It is also the largest grassroots single train Kerosene-to-LAB unit in the world,
with an installed capacity of 1,20,000 metric tonnes per annum (MTPA). Currently, two grades
of LAB – high molecular weight and low molecular weight – are being produced. The quality of
the LAB produced here has found wide acceptance in the domestic and overseas markets
Built at a cost of Rs. 1,248 crore and commissioned in a record 24 months’ time, the plant
produces superior quality LAB for manufacturing environment-friendly biodegradable
detergents, using state-of-the-art Detal technology from M/s UOP, USA. The key raw materials
for the plant, catering to domestic as well as export market requirements meeting the latest and
most stringent quality standards, are Kerosene and Benzene produced at Koyali Refinery.

PX/PTA (Paraxylene / Purified Terephthalic Acid)

The PX/PTA project marks IndianOil’s major step towards forward integration in the
hydrocarbon value chain by manufacturing Paraxylene (PX) from Naphtha and thereafter,
converting it into Purified Terephthalic Acid (PTA). The integrated Paraxylene/Purified
Terephthallic Acid (PX/PTA) complex was built at a cost of Rs. 5,104 crore within the Panipat
Refinery in Haryana

The PTA Plant is the single largest unit in India with a world-scale capacity of 5,53,000 MTPA,
achieving economy of scale. The process package for the PTA plant was prepared by erstwhile
M/s Dupont, UK (now M/s. Invista) and that of the Paraxylene Unit was prepared by M/s UOP,
USA. M/s EIL and M/s Toyo Engineering were the Project Management Consultants (PMC) for
executing the PTA and PX respectively.

63
The Paraxylene plant is designed to process 5,00,000 MTPA of heart-cut Naphtha to produce
about 3,60,000 MTPA of PX. Naphtha is sourced from IndianOil’s Panipat and Mathura
refineries, for which Naphtha splitter units are set up at the respective refineries. The PTA unit
produces 5,53,000 MTPA of Purified Terephthalic Acid from Paraxylene. Technologically, the
plant is one of the most advanced in the country.

Naphtha Cracker:
The Naphtha Cracker and downstream polymer units are being set up at Panipat at a cost of Rs.
14,400 crore. An MoU has been signed in June 2004 with the Government of Haryana, who are
providing fiscal incentives and concessions for the project

Planned to be completed by end 2009, this project envisages setting up of a Naphtha Cracker
based on captive utilisation of Naphtha from Panipat, Mathura and Koyali refineries of
IndianOil. The Naphtha Cracker complex envisages other downstream polymer units utilising
intermediates ethylene and propylene to be generated from the Cracker.

The Naphtha Cracker unit is designed to produce 857,000 tonnes per annum of ethylene and
650,000 tonnes per annum of Propylene, based on which other downstream polymer units are
being commissioned to produce Linear Low Density Polyethylene (LLDPE), High Density
Polyethylene (HDPE), Polypropylene (PP) and the speciality chemical Mono Ethylene Glycol
(MEG). The capacities of the Naphtha Cracker and polymer units are kept at world scale with
the products ranging from commodity to niche grades

Gas

Drawing on its vast experience and carefully nurtured skill sets, IndianOil is focussing on
transforming itself by translating global business opportunities into successful commercial
initiatives. IndianOil has already made successful forays in diverse areas such as petrochemicals,
natural gas, exploration&production, bio-fuels, etc., and with the passage of time, its capability
to successfully establish itself in new areas of business is slowly but surely strengthening.

Gas market in India is slowly opening up and in the next 5- 10 years time, we are going to
witness enhanced availability of Gas not only from imported sources but also from Indigenous
sources.

Natural gas business presents immense opportunities for IndianOil and has already started
generating significant revenues for the Corporation. The Corporation is in the process of
sourcing more LNG and expanding its customer base. Within the gas business, city gas
distribution is seen as a focus area for rapid growth. Green Gas Ltd., IndianOil's joint venture
with GAIL (India) Ltd., is operational in Agra and Lucknow and plans to expand to other cities
in western UP. IndianOil is also in the process of forming more joint ventures for city gas

64
distribution in other parts of the country.

As a supplier, IndianOil would be completely responsible for delivery of gas to the customer’s
premises. The transportation services of the company engaged in transportation of gas would be
hired to ensure deliveries. World over this model is in use wherein through one transportation
system, multiple suppliers operate.

IndianOil has inherent strengths and tremendous business capabilities spread over all parts of the
country. Its current business position and relationship with existing customers can be leveraged
significantly to position itself as a gas supplier with a back up comfort of liquid fuels, which no
other company can offer so far. Gas marketing is going to be a focused activity in future.

E&P

Forays into E & P

In keeping with the dynamic business environment, IndianOil's business development initiatives
continue to be driven by the emerging opportunities and guided by its corporate vision of
becoming a diversified, transnational, integrated energy company. Its business strategy focusses
primarily on expansion across the hydrocarbon value chain, both within and outside the country,
while simultaneously revisiting its strategic plans and undertaking mid-course corrections,
wherever necessary.

To enhance upstream integration, IndianOil has been pursuing exploration & production
activities both within and outside the country in collaboration with consortium partners.
Recently, IndianOil was associated with two successful discoveries in oil exploration blocks, one
each in India and Iran. Commercial appraisal of these blocks is underway. IndianOil also farmed
into an exploration block in Gabon along with Oil India Ltd. (OIL) as the operator. In addition,
the IndianOil-OIL combine acquired participating interest in a block in Nigeria. The
Corporation, in consortium with OIL, Kuwait Energy and Medco Energi of Indonesia also
succeeded in acquiring participating interest in two exploration blocks in Yemen, awarded
through international bidding.

At home, IndianOil and its consortium partners were awarded two exploration blocks in Mumbai
offshore in Round-VI of bidding under the New Exploration Licencing Policy (NELP). With
this, IndianOil now has an upstream portfolio consisting of participatory interest in eight blocks
under NELP and two blocks under CBM, in addition to two farm-in blocks in northeast India
and seven blocks overseas.

Oil & gas will continue to be the principal energy source in the growing economy. The years
ahead, therefore, hold great opportunities and challenges. Guided by its experience and inherent

65
spirit, IndianOil shall overcome all the challenges as it has been consistently doing in the past,
and scale up its operations to capitalise on all opportunities and realise its corporate vision.

Initiatives

IndianOil adopts Integrity Pact

IndianOil has entered into a Memorandum of Understanding (MoU) with Transparency

International India (TII) in January 2008, for implementing an Integrity Pact Programme
focussed on enhancing transparency in its business transactions, contracts and procurement
processes. IndianOil believes in total transparency, integrity and accountability in its
functioning. It values its business relationships with its numerous domestic and international
contractors and vendors of goods and services and is committed to dealing with them in a fair
and transparent manner by maintaining the highest ethical standards in its transactions with
them.

The MoU was signed by Mr. Sarthak Behuria, Chairman, IndianOil, and Admiral (Retd.) R H
Tahiliani, former Chief of Naval Staff and Chairman of TII. Under the MoU, IndianOil is
committed to implementing the Integrity Pact in all its major procurement and work contract
activities. Four Independent External Monitors nominated by TII in consultation with the Central
Vigilance Commission (CVC) shall monitor the activities. The Integrity Pact would strengthen
established systems and procedures by creating trust and would have the full support of the
Central Vigilance Commission.

Transparency International India, launched in 1997, is the Indian Chapter of Berlin-based

Transparency International, which has presence in 93 countries. The Integrity Pact Programme
was launched in the mid-90s by TI to create 'islands of Integrity' through a voluntary contract
between the buyer and the seller to eliminate unfair practices. It establishes mutual contractual
rights and obligations and brings transparency and enhances the credibility of the organizations.

Environment

IndianOil’s Green Agenda

As an active partner of the Global Compact Programme of the United Nations, IndianOil is fully
focussed on “sustainable development.” As a dominant player, the Corporation recognises
protection of environment as a core commitment of its business.

As part of this commitment, all operating units and installations of IndianOil have a
comprehensive safety, health & environment management system in place. The facilities are
periodically reviewed and upgraded from time to time for better performance.

66
 • 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.
• The environment management systems of all IndianOil refineries, pipeline Installations
and major marketing installations/terminals are certified to ISO-14001 standards.
• All IndianOil refineries are accredited for Occupational Health&Safety Assessment
Series (OHSAS-18001). All refineries are also rated under International Safety Rating
System (ISRS). Panipat and Gujarat Refineries are rated “Level 9” in the scale of 1 to 10.
• All refineries have been provided with full-fledged effluent treatment plants consisting of
physical, chemical, biological&tertiary treatment facilities. ‘Oilivorous-S’&‘Oilivorous-
A’ technologies are being used for the treatment of oily sludge and acid tar respectively.
The treated effluent is far superior to the stipulated MINAS quality and quantum
standards. Treated effluent is being reused to the extent of 65-70% in the refinery units.
Panipat Refinery continues to maintain zero discharge since commissioning in 1998.
• IndianOil refineries have adopted various measures for control of gaseous emissions.
These include use of low-sulphur fuel oil, desulphurisation of refinery fuel gas, tall
stacks for better dispersion of flue gases, advanced process control systems; and energy
conservation measures to reduce fuel consumption.
• The sulphur dioxide emissions at IndianOil Refineries are well below the limits
prescribed by the Ministry of Environment&Forests and State Pollution Control Boards.
Ambient air monitoring stations with automatic continuous monitoring instruments are
provided at all the refineries. In particular, Mathura Refinery has set up three ambient air
quality-monitoring stations between the refinery and the city of Agra and a fourth one at
Bharatpur. Utmost care is taken to minimise the impact of refinery operations on the air
quality of the surrounding areas so that the ambient air quality remains within the
stipulated limits prescribed for sensitive areas.
• Most IndianOil refineries have commissioned secondary processing units for improving
fuel quality and reducing emissions. Some of the recent commissionings include
Hydrogen unit and Diesel Hydrotreater unit at Mathura refinery and Motor Spirit Quality
projects at Mathura and Haldia refineries. Sulphur recovery units have been installed at
all the refineries.
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.

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 • 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.
• IndianOil is fully geared to meet the target of reaching EURO-III compliant fuels to all
parts of the country by the year 2010; major cities will upgrade to Euro-IV compliant
fuels by that time.
• IndianOil has invested about Rs. 7,000 crore so far in green fuel projects at its refineries;
ongoing projects account for a further Rs. 5,000 crore.
• Motor Spirit Quality Improvement Unit commissioned at Mathura Refinery; similar units
are coming up at three more refineries.
• Diesel quality improvement facilities in place at all seven IndianOil refineries, several
more green fuel projects are under implementation or on the anvil.
• The R&D Centre of IndianOil is engaged in the formulations of eco-friendly
biodegradable lube formulations.
• The Centre has been certified under ISO-14000:1996 for environment management
systems.

Details of Indian Oil Corporation Limited Scholarships

• The 450 Scholarships provided by the Indian Oil Corporation Limited are broken under
the following heads:
• 250 scholarships for 10+/ ITI students on a zonal basis @ Rs. 1000/- per month for two
years.
• 100 scholarships for Engineering students @ Rs. 2000/- per month for four years.
• 40 scholarships for MBBS students @ Rs. 2000/- per month for four years.
• 60 scholarships for MBBS students @ Rs. 2000/- per month for two years.
Eligibility criteria for Indian Oil Corporation Limited Scholarships

Students pursuing full time courses in the above mentioned streams and studying in Schools /
Colleges / Institutions / Universities recognized by MCI /AICTE / State Education Boards / State
Govt./ ICSE / CBSE / Central Govt./Association of Indian Universities, are eligible to apply for
the Indian Oil Corporation Limited Scholarships. The minimum eligibility criteria for
application is listed below:
• For 10+ / ITI scholarships, students securing a minimum of 65% marks in their 10th
standard examination or equivalent may apply.

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 • For Engineering scholarships, students securing a minimum of 65% marks in their 12th
standard examination or equivalent and having a confirmed admission into a full time
engineering degree course may apply.
• For MBBS scholarships, students securing a minimum of 65% marks in their 12th
standard examination or equivalent and having a confirmed admission into an MBBS
degree course may apply.
• For MBA scholarships, students securing a minimum of 65% marks in their graduation
examination or equivalent and having a confirmed admission into an MBA degree course
may apply.
In all cases, the gross joint income of the family of the candidate from all sources should not
exceed Rs. 1,00,000/- (Rupees One Lakh only).

Reservation and Age Limit for Indian Oil Corporation Limited Scholarships

For application to the Indian Oil Corporation Limited Scholarships, the minimum and maximum
age limits are 15 years and 30 years respectively. Relaxation in the upper age limit is 3 years for
OBC candidates, 5 years for SC/ST candidates and 10 years for physically challenged /
physically handicapped candidates. 50% of the scholarships are reserved for SC/ST & OBC
candidates. In each category, 25% of scholarships are reserved for girl students and 10% for
physically challenged / physically handicapped students. Only those listed in the central
government's OBC list will be considered against OBC quota.

Application for Indian Oil Corporation Limited Scholarships:

Applications for Indian Oil Corporation Limited Scholarships are to be made as per the proforma
given by the IOCL. The Scholarship Scheme is formally announced through newspaper
advertisements inviting applications on September 1, every year, coinciding with the Indian Oil
day. A period of 30 days is given to students for submission of their application forms and
relevant documents.

IndianOil Academic Scholarships

Indian Oil Corporation Limited - India's largest commercial enterprise and the No.1 Indian
Company in Fortune 'Global 500' listing - awards 450 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

69
scholarships to bright students selected on 'merit-cum-means' basis. For each academic year, 450
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 Scholarship

Nurturing Sportspersons Through Scholarships

The objective of this scheme is to award IndianOil Sports 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
.

Sports scholarships are given to upcoming junior players in the age group of 15-18 years and in
the case of potential/talented players below 15 years but above 14 years. In team games, it is
given to State level players in the team and in other games based on national ranking in the
respective category. The duration of the sports scholarships is for a period of three years subject
to performance review every year. The games and categories for IndianOil sports scholarship are
as follows:

Athletics Boys&Girls
Badminton Boys&Girls
Carrom Boys&Girls
Chess Boys
Cricket Boys
Golf Boys
Hockey Boys
Table Tennis Boys&Girls
Tennis Boys
Snooker & Billiards Boys

Apart from catching them young, IndianOil pursues a policy of providing employment to
national and international sports persons so that they can be assured of their financial safety and
concentrate fully for earning glories for the country.

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Corporate Social Responsibility
"CSR: A Cornerstone of our Enduring Success"
At IndianOil, corporate social responsibility (CSR) has been the
cornerstone of success right from inception in the year 1964. 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."

We at IndianOil have defined a set of core values for ourselves – Care, Innovation, Passion and
Trust – to guide us in all we do. We take pride in being able to claim all our countrymen as our
customers. That’s why, we coined the phrase, “IndianOil – India Inspired", in our corporate
campaigns. Public corporations like IndianOil are essentially organs of society deploying
significant public resources. We, therefore, are aware of the need to work beyond financial
considerations and put in that little extra to ensure that we are perceived not just as corporate
behemoths that exist for profits, but as wholesome entities created for the good of the society
and for improving the quality of life of the communities we serve.
As a constructive partner in the communities in which it operates, IndianOil has been taking
concrete action to realise its social responsibility objectives, thereby building value for its
shareholders and customers. The Corporation respects human rights, values its employees, and
invests in innovative technologies and solutions for sustainable energy flow and economic
growth. 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 programmes.
Besides focussing primarily on the welfare of economically and socially deprived sections of
society, IndianOil also aims at developing techno-economically viable and environment-friendly
products&services for the benefit of millions of its consumers, while at the same time ensuring
the highest standards of safety and environment protection in its operations.
Sharing Profits
Every year, IndianOil sets aside a fixed portion of its profits for spreading smiles in millions of
lives across the country through a comprehensive community welfare and development
programme. About one-fourth of the community development funds are spent on the welfare of
Scheduled Caste and Scheduled Tribe beneficiaries

IndianOil has a concerted social responsibility programme to partner communities

in health, family welfare, education, environment protection, providing potable
water, sanitation, and empowerment of women and other marginalised groups.

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IndianOil has always been in the forefront in times of national emergencies.
IndianOilPeople have time and again rallied to help victims of natural calamities,
maintaining uninterrupted supply of petroleum products and contributing to relief
and rehabilitation measures in cash and kind.

IndianOil’s community-focussed initiatives include allotment of petrol/diesel station dealerships

and LPG distributorships to beneficiaries from among Scheduled Castes, Scheduled Tribes,
physically handicapped, ex-servicemen, war widows, etc. The Corporation has also unveiled
kisan seva kendras as small-format retail outlets to reach quality products and services to people
in the rural areas. IndianOil has also set up the IndianOil Foundation (IOF) as a non-profit trust
to protect, preserve and promote national heritage monuments. The Corporation also supports a
variety of endeavours in arts, culture, music and dance, apart from organising programmes on its
own under the banners of IndianOil Art Exhibition, IndianOil Sangeet Sabha and IndianOil Kavi
Sammelan.

As part of its environment-protection initiatives, IndianOil has invested close to Rs. 7,000 crore
in state-of-the-art technologies at its refineries for production of green fuels meeting global
standards. To further reduce dependence on precious petroleum products and secure the nation’s
energy security, the Corporation is now in the process of commercialising various options in
alternative fuels such as ethanol-blended petrol, biodiesel, and Hydrogen and Hydrogen-CNG
mixture.

With safety, health and environment protection high on its corporate agenda, IndianOil is
committed to conducting business with a strong environment conscience, so as to ensure
sustainable development, safe work places and enrichment of the quality of life of its employees,
customers and the community. IndianOil is also committed to the Global Compact Programme
of the United Nations and endeavours to abide by the 10 principles of the programme, some of
which are already part of the Corporation’s Vision and Mission statements. It is the firm resolve
of IndianOilpeople to move beyond business, touch every heart and fuel a billion dreams

Global Compact Initiative

IndianOil’s present business practices and vision for the future are synergized with
sustainability. We take pride that our corporate strategy is aligned to national priorities and
envision a greater societal role in future to accomplish the cherished goal of a truly developed
India, where all sections of citizens live with dignity.

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The past year was definitely another year of sustained growth in the face of stupendous odds for
us at IndianOil. In the backdrop of unprecedented high crude oil prices and liquidity constraints,
we managed our operations and financials efficiently. As India's largest petroleum refining and
marketing company, we bear the brunt of the burden of oil subsidy on sale of petrol, Diesel,
Kerosene for public distribution system and LPG for domestic use, which constitute a major
portion of our product offerings. The Government, in turn, has put in place a mechanism to
compensate the oil marketing companies for the losses suffered by them.

Indian Oil Corporation Limited is committed to the Global Compact Programme of the United
Nations and will endeavour to abide by all the ten principles of the programme, some of which
are also a part of our Vision and Mission Statements. Therefore, the company continues to
pledge support to the programme through its policies, processes, products, services and people.

In order to measure and communicate our progress in our journey towards sustainable
development, we have decided to publish the third edition of our Sustainability Report for 2007-
08 in accordance with the GRI-G3 guidelines for the first time and have aimed at application
level A. We propose to build on this first report in future through a more formal materiality
assessment process where decisions on corporate responsibilities and priorities will include
inputs from other stakeholders, such as shareholders, employees etc.

(V.C. Agrawal)
Director (HR)

Recognitions
Distinctions

Distinctions Date
IndianOil in top five in Business India’s Super 07.12.2009
100 ranking
IndianOil tops ET 500 ranking 25.11.2009
IndianOil in Platts ranking 2009 19.11.2009
IndianOil No.1 in BW 500 Ranking 27.10.2009

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IndianOil leads India Inc. in Fortune's 'Global 10.07.2009
500' listing for 2009
IndianOil — the only PSU among India’s 25 16.04.2009
best employers
IndianOil frontrunner in Oil & Gas category 31.03.2009
in FE-500listing of India's top corporates
IndianOil tops Business Standard’s 'BS 1000' 13.03.2009
again
IndianOil among India's 'Top 10' in Business 19.12.2008
India's Super 100 Listing
Lanka IOC ranked No. 1 Company in Sri 12.12.2008
Lanka
IndianOil tops 'ET 500' rankings once again 21.10.2008
IndianOil tops Businessworld's ‘BW Real 500’ 20.10.2008
rankings again
IndianOil third most valuable (company) brand 02.09.2008
in India: ET-brand finance survey
IndianOil leads India Inc. in Fortune's 'Global 11.07.2008
500' listing for 2008
'The Most Trusted Brand' in ET's Brand Equity 12.06.2008
annual survey-2008
IndianOil the 'Top Oil & Gas Company' in 23.05.2008
Financial Express's 'FE 500' listing
IndianOil Tops Business Standard's 'BS 1000' 15.02.2008
listing
'Top Ten' in Business India's Super 100 Listing 13.12.2007
IndianOil among India's 'Top Valuable 30.11.2007
Companies in BT 500 Listing'
IndianOil ranked 2nd amongst India’s Top 50 31.07.2007
Most Valuable Brands
IndianOil gets a top slot in ET500 listing 22.03.2007
IndianOil tops 'BS 1000' companies in Sales 03.01.2007
again

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Distinctions - Archive

Fortune Ranking
 As perFortune Global 500 listing of the world's largest Corporations for the year 2006

 Ranking improved to 153, based on fiscal 2005 performance, from 170 in 2005, 189 in 2004,
191 in 2003, and 226 in 2002.
Forbes Ranking
 IndianOil was ranked 311 in The Forbes Global 2000 - a list of world's largest, and most
powerful, public companies, April 2006

 Ranked 279th, as per Forbes Global 2000 listing of the world's biggest public companies for
the year 2004.

 Among the 30 Indian companies in the Global 2000, IndianOil is the third biggest company.
No. 1 Company in Oil Trading in Asia Pacific Region
 IndianOil emerged as the top company in oil trading amongst national oil companies in the
Asia Pacific region, as per the annual survey conducted by Applied Trading Systems (ATS),
Singapore for the year 2004.

 In the latest survey, IOC is placed at the top of the list followed by Petronas of Malaysia,
ENOC of United Arab Emirates, KPC of Kuwait and Saudi Petroleum of Saudi Arabia.

 The survey covered 80 major petroleum trading companies in the Asia Pacific region.
IndianOil among top global stock picks: Deutsche Bank
 In a recent oil strategy report, the prestigious Deutsche Bank has chosen IndianOil as one of
the top global stock picks in the oil & gas sector.

 IndianOil is also the only Asian company to be featured in the list of top global stocks by
Deutsche Bank.

 In the report titled 'Global Oil 2005: Unforgettable Fire', IndianOil has also been included as
one of the top five recommendations of Deutsche Bank for the Indian market for the year 2005.

75
 The bank, in a letter addressed to the Chairman, has stated that "The recommendation
reflects our positive view of IndianOil owing to its solid fundamentals and also the proactive
strategies adopted by the Management to deal with the various challenges facing the oil sector".
Platts World Energy Rankings 2005
 IndianOil has moved five places up in the Platts 'Top 250 Global Energy Company' rankings
- from 26th in 2004 to 21st this year.

 Only Indian company to be featured among the top 25 energy companies worldwide and is
also among the top three energy companies in Asia in the listing.

 Amongst the Marketing & Refining companies of the world, IndianOil is placed at the
second position in the sectoral listing.

 IndianOil is also the only Public Sector Undertaking among 'India's Top 10 Companies'
listed by theFar Eastern Economic Review in 2003.
IndianOil retains the #1 spot by sales in ET500 listing
IndianOil, India's flagship oil company, has retained its numero uno position by sales in the
latest corporate rankings released by the Economic Times. The ET500 report goes on to add,
"IndianOil has been the largest Indian company by sales for as long as anyone can remember".

Apart from sales, the ET500 ranking lists companies based on market capitalization, net profit,
price-earnings ratio and return on net worth, etc. In the above listings, IndianOil is also ranked
No. 6 by both market capitalization and net profits respectively.

These rankings assume significance considering that India's downstream majors in the petroleum
industry have been bearing both subsidy and undercovery burdens owing to a steep rise in global
crude oil prices throughout the year 2005, thus affecting both net profit and market
capitalization.
Ranked as India's most valuable brand
 IndianOil and SERVO selected Superbrands (2004-06)

 IndianOil topped the list of The Hindu Business Line's "India's Most Valuable Brands 2004"
list (Catalyst, January 27th '05).

 The report featured the top 500 largest listed companies by market value, that were listed on

76
the Bombay Stock Exchange.

 The methodology followed values brands in a way that is similar to how analysts value
assets.

 These valuations have used 'relief from royalty' methodology - an intuitive approach that
assumes that a company does not own its brand name, and then calculates how much it would
have to pay to license it from a third party. The present value of the streams of royalty
(hypothetical) represents the value of the brand.
Most trusted petrol pump brand: ET Brand Equity Survey
 IndianOil has emerged as the most trusted petrol pump brand in the country in the
prestigious Economic Times Brand Equity Survey of India's Most Trusted Brands (ET, Dec. 15,
'04).

 IndianOil leads the four oil-marketing companies in the new category of petrol pumps
introduced in services for the first time this year.

 IndianOil is also the only petroleum company among the top 50 in the overall services brand
with a ranking of 11, followed by its subsidiary, IBP Co. Ltd, at 51.

 IndianOil not only finds a place among the top 150 brands but as the country's top petro-
retailer, its score on the survey was almost twice that of its nearest competitor.

 Survey is the largest of its kind in India, conducted by research agency AC Neilson ORG-
Marg, the, with a sample of over 7,000 distributed across socio-economic class, age, income and
geography.
Ranked fourth in TNS Corporate Reputation Study
 In a recent TNS India poll on "Corporate Reputation Study" (Business Today, Dec. 19,
2004), IndianOil has been placed in the 4th position, ahead of several other business
conglomerates.

 IndianOil is the only petroleum company to be featured in the top 25 listing, and with State
Bank of India (21st position) being the only other PSU to make it to the listing.

 Poll primarily conducted amongst important stakeholders covering financial analysts and
stockbrokers, business managers, and prospective employees, besides members of the general
public.

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 IndianOil has a score of 80 (out of 100), which indicates a very good corporate equity.
Among top ten 'Best Employers in India' for second year
 For the second consecutive year, IndianOil retained its ranking as one of the top ten 'Best
Employers in India' according to a recent study by Hewitt Associates.

 IndianOil, at the 9th position, was also the only oil company to be featured in the Top 10
listing.

 This year, 272 companies with a workforce of 700,000 participated in the Hewitt survey,
which makes it the highest participation in any geographical location. Data was collected from
75,000 employee responses from across 15 industry groups.
No.1 Company in business listings
 IndianOil has been ranked India's No. 1 company by The BW Real 500
survey, Businessworld, announced in March 2006.

 IndianOil was ranked as numero uno Indian company in a survey titled The Analyst
500, Chartered Financial Analyst, February 2006

 IndianOil has emerged as India's biggest company in the Business Standard-1000 listing
announced in February 2005.

 IndianOil Ranked as India's top corporate in sales in Business Today's annual corporate
rankings.

 IndianOil also leads corporate India with the highest sales turnover in 2004-05 in Business
India's'Super 100' list of top private and public sector companies in the country.

Auto fuels
AutoGas

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AutoGas (LPG) is a clean, high octane, abundant and eco-friendly fuel. It is obtained from
natural gas through fractionation and from crude oil through refining. It is a mixture of
petroleum gases like propane and butane. The higher energy content in this fuel results in a 10%
reduction of CO2 emission as compared to MS.

AutoGas is a gas at atmospheric pressure and normal temperatures, but it can be liquefied when
moderate pressure is applied or when the temperature is sufficiently reduced. This property
makes the fuel an ideal energy source for a wide range of applications, as it can be easily
condensed, packaged, stored and utilised. When the pressure is released, the liquid makes up
about 250 times its volume as gas, so large amounts of energy can be stored and transported
compactly.

The use of LPG as an automotive fuel has become legal in India with effect from April 24, 2000,
albeit within the prescribed safety terms and conditions. Hitherto, the thousands of LPG vehicles
running in various cities have been doing so illegally by using domestic LPG cylinders, a very
unsafe practice. Using domestic LPG cylinders in automobiles is still illegal.

The fuel is marketed by IndianOil under the brand name ‘AutoGas’

IndianOil has setup 232 Auto LPG Dispensing Stations (ALDS) covering 124 cities across
India.

AutoGas impacts greenhouse emissions less than any other fossil fuel when measured through
the total fuel cycle. Conversion of petrol to AutoGas helps substantially reduce air pollution
caused by vehicular emissions.

The saving on account of conversion to AutoGas in comparison to petrol is about 35-40%. Low
filling times and the 35-40% saving is a reason enough for a consumer to convert his vehicle to
AutoGas.

XTRAPREMIUM

XTRAPREMIUM Petrol is India’s leading branded petrol boosted with new generation
multifunctional additives known as friction busters that prevents combustion chamber deposits.
XTRAPREMIUM is custom designed to deliver higher mileage, more power, better pick up,
faster acceleration, enhanced engine cleanliness and lower emissions.

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XTRAPREMIUM is a sought after fuel among discerning customers who own new generation,
high-performance cars who have endorsed its unmatched performance.

In terms of fuel system cleanliness XTRAPREMIUM is hugely superior to any other alternative
fuel in this segment, with the additional benefit of fuel efficiency through the friction modifier.
The additive package contains proprietary components including a detergent dispersant, a
friction modifier and a corrosion inhibitor, as a perfectly optimized formulation in synthetic
carrier oil. The detergent dispersant cleans the fuel system and the friction modifier drastically
reduces friction in the non-lubricated engine area contributing to fuel economy.

XTRAMILE

IndianOil’s XTRAMILE Super Diesel, the leader in the branded diesel segment is blended with
world-class ‘Multi Functional Fuel Additives (MFA). Commercial vehicle owners choose
XTRAMILE because they see a clear value benefit in terms of superior mileage, lower
maintenance costs and improved engine protection. A growing section of customers who own
diesel automobiles, both in the ‘lifestyle’ and ‘passenger’ category, prefer XTRAMILE as a fuel
for its added and enhanced performance. XTRAMILE has brought in a huge savings in the high
mileage commercial vehicle segment. Transport fleets that operate a large number of trucks
crisscrossing the country are using XTRAMILE to not only obtain a higher mileage but also for
low maintenance costs.

Petrol/Diesel Stations
Petrol/Diesel Stations

IndianOil was the pioneer in launching state-of-the-art petrol stations with digital dispensers,
modern canopies, standardized signage and efficient lighting systems way back in the mid-
1990s. The new retail-branding template introduced by IndianOil set in motion a revolution in
the petroleum retail business in the country. IndianOil pioneered differentiated offerings to meet
the diverse needs of its customers, be it through large format Swagat outlets for the highway
traffic, Kisan Seva Kendras for the rural consumer, or even the XTRAcare outlets for the
discerning urban customer.

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XTRAcare
IndianOil's XTRAcare E branded full service petrol stations is a result of a series of processes in
retail design, product and service upgradation, capability training, automation, loyalty programs,
retail site management techniques all benchmarked to global standards. Today XTRAcare petrol
stations are synonymous in India with world-class petroleum retailing.

Complete vehicle care begins at an IndianOil XTRAcare petrol pump. From branded auto fuels,
to speedy windshield wipes to quick oil checks and snappy air service, you will experience the
superior services that will leave your vehicle feeling special.

IndianOil's XTRAcare pump is a revolutionary initiative in petroleum retailing that combines the
best bouquet of quality, quantity and warm service, with a guarantee to make your every visit a
truly rejuvenating experience. It is benchmarked to international standards of quality & quantity,
housekeeping, maintenance and customer service certified to globally renowned benchmarks
certified by the globally renowned agency - M/s Bureau Veritas (BV), amongst others.

The maintenance of the equipment at the XTRAcare outlets is undertaken by Original

Equipment Manufacturers under a unique 'Equipment Quality Outsourcing' system.

While the industry standard is to take samples on a quarterly basis, IndianOil has moved several
steps ahead by introducing fortnightly random sampling with specific importance given to RON
(Research Octane Number) sampling which is truly the definitive test for quality and quantity.
The surveillance audits by BV are being done on a more comprehensive basis. The scale and
spread of XTRAcare pumps is also an industry record.

With automated facilities, highly trained attendants and forecourt managers attuned to the needs
of your car an XTRAcare pumps offers the full range of branded fuels-XTRAPREMIUM Petrol
and XTRAMILE Diesel as well as world-class SERVO lubricants and a comprehensive loyalty
programme.

The non-fuel activities get a major fillip at the IndianOil XTRAcare and a wide range of loyalty
programs like XTRAREWARDS, XTRAPOWER and co-branded cards give customers added
benefits (available at present at select petrol pumps). The cutting edge technology introduced at
XTRAcare pumps includes automatic tank level gauges, temperature sensors, density
measurement sensors, back-office server with dispensing unit controls, customer database, etc.

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Another vital differentiator in the IndianOil XTRAcare is the importance given to the frontline
customer attendants. They are trained at three levels of competencies--customer service, personal
hygiene/grooming and customer complaint redressals. XTRAcare dealers also undergo extensive
training on 'Retail Site Business Management' a unique training module incorporating best
global practices in retail sales management.

Kisan Seva Kendra

Kisan Seva Kendra is a unique award-winning retail outlet model pioneered by IndianOil to
cater to the needs of the customers' in the rural segment. Today IndianOil's KSKs have emerged
as a dominant player in the rural markets, riding on the rapid growth of upcoming second and
third tier roads in the rural areas. The KSKs come with a fresh perspective enabling dealers to
tap the huge demand driven in by consumers there. In addition, non-fuel retail facilities like
convenio stores have been added to the KSKs selling pesticides, vegetables, banking products
and stationery items. IndianOil has also tied up with Indo Gulf for fertilizers, National Seeds
Corporation for marketing seeds and agricultural inputs as well as alliances with Nabard,
Oriental Bank of Commerce and Bank of Baroda for banking products. At some KSKs even
internet kiosks, communication facilities, etc. have been installed. Business alliances have been
signed to market products from Dabur, Airtel, Tata Chemicals, Godavari Fertilisers, Gokulam
Fertilisers, Hindustan Unilever and Godrej Agrovet. Other alliance partners are Emami for
personal care products, Money Gram for money transfer, MILMA and OMFED for milk
products and Supplyco for convenience stores.

Swagat

The Swagat retail network are large format sites designed exclusively to cater to travelers on the
highways. With spacious parking lots, dhabas, eateries, retail stores and restroom,
theSwagat outlets provide customized services to owners of both light motor vehicles as well as
heavy motor vehicles.

Loyalty Programs

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IndianOil's loyalty programs are designed exclusively to benefit customers who have been
patronizing the brand for over four decades.

XTRAPOWER
The XTRAPOWER Fleet Card program is a complete smart card-based fleet management
solution for fleet operators and Corporates for cashless purchase of fuel & lubes from designated
retail outlets of IndianOil through flexible pre-paid and credit facilities. The fleet card program
also offers an exciting rewards program and unique benefits like personal accident insurance
cover and vehicle tracking facilities. In just under two years of its launch, IndianOil's
XTRAPOWER Fleet Card has emerged as the largest fleet card in the country with the widest
retail outlet coverage. Any business entity owning or operating a vehicle fleet can become a
member of the XTRAPOWER fleet card program at a nominal annual charge. Each fleet owner
is issued a Fleet Control Card and vehicle-specific Fleet Cards for every vehicle enrolled under
the program. For enhanced security, the fleet card transactions are authorized through unique
Personal Identification Number (PIN). Moreover, the card can help track each vehicle's
movement across remote corners of the country leading to an improvement in vehicle utilization
and route compliance. XTRAPOWER is also backed by IndianOil's vast infrastructure network
and web-based support services.

XTRAREWARDS
IndianOil XTRAREWARDS is India's first on-line rewards program that seeks to inculcate the
habit of redeeming points. The loyalty program rewards customers paying by cash, credit and
debit cards. Each transaction is confirmed on-line through a charge slip and customers can earn
points on fuel/lube purchases at participating IndianOil Retail Outlets. Additional points can also
be earned outside the IndianOil network, covering prominent FMCG, Food, Automobile, Travel,
Entertainment, Apparel and Hospitality sectors. XTRAREWARDS is currently active in
Mumbai, Ahmadabad, Bangalore, Mysore, Coimbatore and Chennai. It will be shortly available
in other markets like Delhi. Apart from redeeming the accumulated points instantly on fuel /
SERVO Lubes at participating Retail Outlets, the card holder can also redeem the points to get
some exciting gift items from a catalogue. The redemption on gifts can be registered either from
the participating Retail Outlets or from the comfortable confines of one's home through the 24x7
IVRS Help Line (022-2880 9030). The program continuously provides the cardholder with
privileges, benefits and offers from alliance partners like Domino's Pizza, Subhiksha, Rediff

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Shopping, Kumaran Silks, Dhabba Express, Chennai Corporate Club and Archana Sweets.

Annexures
Questionnaire for Retailers

Personal details
Name……………………………………………
Organization……………………………………
Address…………………………………………
Date of visit…………………………………….

Instructions: Take your time to fill this questionnaire. Please read carefully,
before answering questions.
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1. How many liters of fuel do you sell in a week through Xtra Power fleet card?
(a) 1000-20000 lts
(b) 20000-40000 lts.
(c) 40000-60000 lts.
(d) More than 60000 lts.

Brands XtraMil XtraPremiu Servo Unleade Unleade

e m d petrol d
lubricant
Super Petrol s diesel
diesel
Maximum
Minimum

2. What is the average sale of following brands at your outlet in a week?

3. What price do you get the following brands at?

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 Brand XtraMil XtraPremiu Servo Unleade Unleade
s e m d petrol d
lubricant
Super Petrol s diesel
diesel
Price

Brand XtraMil XtraPremiu Servo Unleade Unleade

s e m d petrol d
lubricant
Super Petrol s diesel
diesel
Price

4. What is your margin for the following brands?

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6. What is the average sale of fuel/lubricants through Xtra Power Fleet card from
your outlet?
………………………………………………………………………

7. Do you tell the customer/fleet owner/driver about the Xtra Power fleet card
loyalty program of IOCL?
a) YES.
b) NO.
C) SOMETIMES.

8. Do the staff/attendants know how to operate the machine of Xtra Power fleet
card?

a) YES

b) NO

9. What is the usual mode of payment made by the customer?

a) Cash.

b) Credit/Debit Cards.

c) Xtra power fleet card.

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10. Is the outlet well equipped with machines of Xtra Power fleet card?

a) YES.

b) NO.

Questionnaire for the Customers

Personal details
Name……………………………………………
Address…………………………………………
Date of visit……………………………
Customer I.D. ………………………………………..

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1. Do you visit the IOCL fuel station regularly?
a) YES.
b) NO.
c) Sometimes.
2. What is the usual mode of payment?
a) Cash.
b) Credit/Debit Card.
c) XTRAPOWER fleet card.

3. Do you know about the XtraPower fleet card?

a) YES
b) NO.

4. From where did you come to know about the fleet card program?
a) Advertisement.
b) Newspapers.
c) Journal/Magazines.
d) IOCL Retail Outlets.
e) Others……………….
5. How many vehicles/trucks do you have?
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 …………………….
6. Are you satisfied with the service of fleet card?
a) YES.
b) NO.
c) Partly satisfied.
7. Do you use your fleet card regularly?
a) YES.
b) NO.
c) Sometimes.
8. What improvements do you want in the fleet card loyalty program?
a) Better services to the card holders.
b) More attractive offers.
c) Others……………………………
9. Do you redeem your Xtra points regularly?
a) YES.
b) NO.
c) Sometimes.

10. Any suggestions about the Xtra Power Fleet Card program?

……………………………………………………………..

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 AN INTRODUCTION TO
KAMAKSHI AUTO SERVICE

Corporate history

Kamakshi Auto Service was established in 1970 with the name Nayak Oil Company. In 1975
it was purchased by M.P.Bhatt, S.S Shanbhag, K.V.Prabhu and Vinayak Shanbhag as the

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four partners. Later in september 1980 excluding M.P.Bhat, rest three partners r retired from the
partnership and the kamakshi Auto Service becomes the proprietorship concern under the
proprietorship of M.P.Bhat.

SALES

MS(Petrol) Average sales per day 1.7 kl.

Average sales per month 65 kl.

HSD(Diesel) Average sales per day 4.5 kl.

Average sales per month 125 kl.

They are undertaking the sales of indian oil product only.

Milestone

• The firm is going to complete successfully thirty five year of its establishment with the
name of KAMAKSHI AUTO SERVICE.
• The firm was awarded with BEST DEALER, for achieving MS(Petrol) growth in the
year 2002.

Note: 1KL=1000ltrs

CONCLUSION, SUGGESTIONS & FINDING

CONCLUSION:

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As a business grow larger and as management becomes more remote from the market place,
marketing management has to rely more heavily on marketing research as a managerial tool in
solving any problem in the field of marketing. Beginning and end of marketing is marketing
research.

Marketing research may b defined as the scientific and controlled process of gathering of non-
routine marketing information helping management to solve marketing problems marketing
research concentrates on the study of product, planning and development, pricing policies,
effectiveness of personal selling, advertising and sales promotion, distribution structure, market
competition, buyer behaviour etc

SUGGESTION:

• After the evaluation and findings some important suggestion are revealed to the
company.
• People are bothering about the day to day increament in petrol prices which should be
control.
• IOC must improve its advertisement to the xtrapremium and its features in detail
• IOC must advertise by products to the illiterate people by attractive facilities and offers
given to illiterate people

FINDINGS:

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After the evaluation, the information is revealed that the most of the users are un aware of the
product and its feature. Mostly un aware people are from uneducated or low educated.

The people who are aware of the product and its feature are mostly students and educated
people. It is to be noted that, the people who are aware of the product and its feature are mostly
satisfied with the performance of the products.

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 BIBLIOGRAPHY

WEBSITE:
WWW.IOCL.COM
WWW.GOOGLE.COM
 ANNUAL REPORT OF IOCL.
 S.P.GUPTA, STATISTICAL METHODS
 C.R.KOTHARI, RESEARCH METHODOLOGY.
 MARKETING MANAGEMENT. KOTLER.

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