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PROJECTON

Submitted To,Submitted By,

Aakash

thaparBBA(Gen)3r

d sem

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DECLARATION

I hereby declare that this Project Report titled performance management and its

effectiveness at iocl. submitted by meaakash thapar to DELHI INSTITUTE OF

RURAL DEVELOPMENT ,nangli Poona and has not been submitted to any other

University or Institution for the award of any degree diploma / certificate or published

any time before.

(Signature of the Student)

Name: AAKASH THAPPAR

Enroll. No.:

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ACKNOWLEDGEMENT

First of all, I would like to pay my regards to Mr. Sudhir Bhalla,

Executive director (HR) of IOCL for giving me a chance to learn

in their esteemed organisation.

I would also like to take this opportunity to thank Ms. latika

(Faculty guide) for assisting me with the project and his valuableguidance.

Thanking you

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Table of Contents

marketing 66Protuct profile 67

TOPICS: Pag

Introduction 3

Industry Profile 5

Company Profile 10

Brief of HR Department 25

Research Methodology & Design 32

Introduction on performance management 33

Analysis & Interpretation 42

Findings 59

Suggestions 60

Conclusion 61

Annexure 62

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EXECUTIVE SUMMARY

Performance Management System is an integral part of any

organization. This is one such process which is looked into very keenly

by each and every employee because of various purposes it serves.

The system not only looks at the performance of the employees but

also strive for their development which is an essential part of the

employees career graph .it is necessary for the organization to keep it

self abreast of about the changes in the environment. It should also

check into the effectiveness of its present performance system.

In Indian Oil Corporation Performance Measurement is the process of

making progress towards achieving predetermined goals. Performance

Management is building on that process adding the relevant

communication and action on progress achieved against these pre

determined goals.

The main aim of Indian oil performance management system is to

develop

Develop clear job descriptions.

Select appropriate people with an appropriate selection process.

Negotiate requirements and accomplishment-based performance

standards, outcomes, and measures

.Provide effective orientation, education, and training.

Provide on-going coaching and feedback.

Conduct quarterly performance development discussions.

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Design effective compensation and recognition systems that

reward people for their contributions.

Provide promotional/career development opportunities for staff.

Assist with exit interviews to understand WHY valued employees

leave the organization.

The study was conducted to look into the method being adopted by

Indian Oil Corporation limited and also to look into its effectiveness.

The study, which was conducted among officers in grade A- F of

Refineries Head Quarter at New Delhi, was done using a questionnaire.

Randomly a sample of 25 officers was given administered the

questionnaire.

After completing the study it could be found that Indian oil corporation

has a well, structured PMS which not only looks into the performance

but also the development of officers .

The findings and analysis have been furnished in the corresponding

pages .It could be concluded that all the employees are well aware of

the existing system and the Present Performance Management System

has been found to a large extent effective also.

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INDUSTRY PROFILE

The Indian Petroleum industry is one of the oldest in the world, with oil

being struck at Makum near Marguerite in Assam in 1867 nine years

after Col. Drake's discovery in Titusville. The industry has come a long

way since then. For nearly fifty years after independence, the oil sector

in India, has seen the growth of giant national oil companies in a

sheltered environment. A process of transition of the sector has begun

since the mid nineties, from a state of complete protection to the

phase of open competition.

The sector in recent years has been characterized by rising

consumption of oil products, declining crude production and low

reserve accretion. India remains one of the least-explored countries in

the world, with a well density among the lowest in the world. Withdemand for 100 million tonne, India is the fourth largest oil

consumption zone in Asia, even though on a per capita basis the

consumption is a mere 0.1 tonne, the lowest in the region- This makes

the prospects of the Indian Oil industry even more exciting.

The years since independence have, however, seen the rapid growth of

the upstream and downstream oil sectors. There has been optimal use

of resources for exploration activities and increasing refining capacity

as well as the creation of a vast marketing infrastructure and a pool of

highly trained and skilled manpower. Indigeneous crude production has

risen to 35 million tonnes per year, an addition of fourteen refineries,

an installed capacity of 69 million tonnes per year and a network of

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5000 km of pipelines. But with the consumption of hydrocarbons said

to increase manifold in the coming decades (155mmtpa by the end of

the 10th plan) the liberalisation, deregulation and reforms in the

petroleum sector is essential for the health and overall growth of our

economy.

'With more than a billion people, a structural demographic shift

resulting in exploding consumption expenditure, full deregulation of a

100 m tonne market growing at twice world averages, India represents

one of the most exciting oil markets in the world today' - CLSA Asia

Pacific

As the Indian Economy breaks the shackles of a hindu rate of growth to

grow at a pace of 8% and above, the single biggest beneficiary should

be the oil & energy sector. Oil and energy are most happening sectors

of the Indian economy today. PSU Oil Companies were in the limelight

over the past two years for a variety of reasons- first, the companies,

then the huge surge in profits, and recently, the drama over sale of

government's stake through public offer.

Going forward, we should see much larger pick- up in sales of oil

products in line with the GDP growth rate, feel analysts.

High consumption has meant high profit margins for oil companies,

particularly refining majors like Hindustan Petroleum Corporation

(HPCL), Bharat Petroleum Corporation (BPCL), Indian Oil Corporation

(IOC) and a host of other smaller refining companies.

Refining margins are now ruling at their highest levels over the past

decade. According to analysts tracking the sector, refining margins are

now at $8 per barrel, one of the highest levels in many years. And

these margins have stayed high despite a rise in prices of crude oil.

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For integrated refining & marketing companies, like HPCL, BPCL and

IOC, the gains are even more substantial and their numbers may look

very impressive.

Exploration

India remains one of the least explored regions in the world with a well

density of 20 per 10000km2. Of the 26 sedimentary basins, only 6

have been explored so far. The Oil and Natural Gas Corporation

(ONGC) and the Oil India Limited (OIL) - the two upstream public sector

oil companies- in 1981/82 had taken their search to previously

unexplored areas. Number of wells drilled as well as the meter age

increased. However current reserve accretion continues to be low.

NELP

The government in order to increase exploration activity, approved the

New Exploration Licensing Policy (NELP) in March 1997 which would

level the playing field in the upstrem sector between private and public

sector companies in all fiscal, financial and contractual matters.

Salient features of the NELP

1) There will be no mandatory state participation through ONGC/OIL

nor there did any carry interest of the government.2) The two public sector upstream companies would compete for

petroleum exploration licenses, instead of the existing system of

granting of licenses on nomination basis. The public sector companies

will also be able to avail of the fiscal and contract benefits available to

private companies.

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3) Open availability of exploration acreage to provide a continuous

window of opportunity to companies. The acreages will be demarcated

on grid system and pending preparation of the grid, blocks will be

carved out for offer.

4) Freedom to the contractors for the marketing of crude oil and gas in

the domestic market.

5) Royalty payments at the rate of 12.5% for the onland areas and

10%for the offshore. Half the royalty of the offshore area will be

credited to a hydrocarbon development fund to fund and promote

exploration related study and activity.

6) To encourage exploration in deepwater and frontier areas royalty

will be charged at half the prevailing rate for normal offshore area, for

deep water areas beyond 400m bathymetry for the first seven years

after commencement of commercial production.

7) Prompt action by the Ministry of Petroleum and Natural Gas to sign

the PSC's for exploration blocks.

Refining

The total installed refining capacity of the 15 refineries in the countryat the end of march 1998 was 69.140 million tones per annum and the

total is expected to go up to 131 mtpa by the year 2009. The expected

increase in refining capacity should be sufficient to meet the growth in

petroleum product demand (112 mtpa by the end of the ninth plan)

with minimum level of imports.

The Sub-group on refining has suggested certain financial incentives

for the efficient functioning of the refining sector and enhancing

private sector participation during the Ninth five year plan period. In

order to increase capacity utilisation of the existing refineries, 11 new

crude pipelines have been proposed by the Sub-group.

In addition, there is an urgent need to reduce fuel loss in refineries,

which reached a level of 7.1% in 1985/86 and declining marginally to

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6.1% in 1996/97. To reduce energy consumption, projects amounting

to Rs 7200 million have been identified, which on implementation, will

achieve a saving of 186000 tonnes per annum (tpa).

Demand and Supply

The aggregate consumption of petroleum products during 1997/98 was

90mt. In the period 1992-98, LPG and HSD registered the largestdemand growth rate of 9.2% and 8.6% respectively. The Transport

(38%) , residential (26%)and industrial(24%) sectors are the largest

consumers of petroleum products. The total production of petroleum

products during 1997/98 was 61mt (MoPNG 1998). India's self

sufficiency in petroleum products has declined to 34% in 1997/98 from

60% in 1985/86 resulting in a substantial growth in the import bill.

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COMPANY PROFILE

Indian Oil Corporation Limited

Indian Oil Corporation Ltd. (Indian Oil) was formed in 1964 through the

merger of Indian Oil Company Ltd. (Estd. 1959) and Indian Refineries

Ltd. (Estd. 1958).

It is currently Indias largest company by

sales with a turnover of Rs. 1,83,204 crore

and profits of Rs. 4,915 crore for fiscal 2005.

Indian Oil is also the highest ranked Indian

company in the Fortune Global 500 listing,at 153rd position. It is also the 21st largest

company in the world in petroleum refining category.

Indias Downstream Major

The Indian Oil Group of companies owns and operates 10 of Indias 18

refineries with a combined refining capacity of 60.20 million tonnes per

annum (1.2 million barrels per day). These include two refineries of

subsidiary Chennai Petroleum Corporation Ltd. (CPCL) and one of

Bongaigaon Refinery and Petrochemicals Limited (BRPL). Indian Oil

owns and operates the countrys largest network of cross-country

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crude oil and product pipelines spanning nearly 9,000 kilometers, with

a combined capacity of 60.42 MMTPA.

Indian Oil and its subsidiaries account for 44.50% petroleum products

market share among public sector oil companies, 42% national refining

capacity and 69% downstream pipeline throughput capacity.

For the year 2005-06, Indian Oil sold 49.61 million tonnes of petroleum

products, including 2.09 million tonnes through exports. To maintain its

competitive edge and leadership status, Indian Oil is investing Rs.

24,000 crore (US $ 5.6 billion) during the 10th Plan Period (2002-07) in

integration and diversification projects, besides refining and pipeline

capacity augmentation, product quality up gradation and retail

expansion.

Network beyond Compare

As the flag-ship national oil company, Indian Oils countrywide network

of 24,000 sales points is backed for supplies

by 158 bulk storage depots and terminals,

95 aviation fuel stations and 88 Indane LPG

bottling plants. Its subsidiary, IBP Co. Ltd., is

a stand-alone marketing company with a

nationwide network of nearly 4000 retail

sales points.

Indian Oil reaches Indane cooking gas to the doorsteps of 41.05 million

households in 2,353 markets through a network of nearly 4,700 Indane

distributors.

Indian Oil also operates the largest and the widest network of retail

outlets (petrol/diesel stations) in the country. A significant milestone

was achieved with the commissioning of the companys 10,000th

petrol station during the year 2004-05. Indian Oils SERVO brand

lubricants, being the first and only one in its category in India to be

accorded Superbrand status, is the country's leading, with over 42%

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market share and 450 grades. SERVO lubricants are sold through over

10,000 Company retail outlets, besides a countrywide network of

bazaar traders.

Indian Oils ISO-9002 certified Aviation Service commands a 65%

market share in aviation fuel business, meeting the fuel needs of

domestic and international flag carriers, private airlines and the Indian

Defence Services.

Customer First

At Indian Oil, customer is the first priority. During 2005-06, a slew of

initiatives were launched for the

convenience and benefit of the various

customer segments. Branded auto-fuels

(XtraPremium petrol and XtraMile diesel)

market was expanded to cover more retail

outlets across the country. Exclusive

XtraCare retail outlets were unveiled in select urban and semi-urban

markets during the year 2005-06, offering a range of services to

enhance customer delight and loyalty.

Specially formatted retail outlets - Kisan Sewa Kendras were also

launched during the year 2004-05 to meet the diverse needs of rural

customers were launched during the year. These outlets were

strategically positioned to offer product and services such as fertilizers,

seeds, pesticides, farm equipment, medicines, spare parts for trucks

and tractors, tractor engine oils and pump set oils besides auto fuels

and kerosene.

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R&D for Growth

Indian Oils world class R&D Centre is perhaps Asias finest. Besides

pioneering work in lubricants formulation, refinery processes, pipeline

transportation and alternative fuels such as bio-diesel, the Centre is

also the nodal agency of the Indian hydrocarbon sector for ushering in

Hydrogen fuel in the country.

Expanding Horizons

Indian Oil has set its sight to reach US$ 60 billion revenues by the year

2008-09 from current earnings of US$ 34.44

billion. The road map to attain this

milestone has been laid through vertical

integration forward into petrochemicals

and backwards

into exploration and production of crude oil, besides diversification into

natural gas business and globalization of our operations.

In petrochemicals, a master plan envisaging Rs. 25,000 crore (US$ 5.7

billion) investment is already underway. The commissioning of the

worlds largest single train Linear Alkyl Benzene plant at Koyali refinery

in August 2004 and the on-going integrated Paraxylene/Purified

Terephthalic Acid (PX/PTA) plant and a world-scale Naphtha Cracker

with downstream polymer projects are part of this plan. Indian Oil also

proposes to convert the on-going Paradip refinery into a refinery-cum-

petrochemicals complex to strengthen its presence in the sector.

In exploration & production (E&P), Indian Oil has participated in the

first three rounds of NELP (New Exploration Licensing Policy) in India, in

consortium with other companies, and was awarded 11 exploration

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blocks. It has acquired participating interest in on-shore blocks in

Assam and Arunachal Pradesh region. Overseas ventures include 2

blocks in Sirte Basin in Libya and Farsi Exploration Block in Iran. The

Corporation is also exploring opportunities to acquire a suitable

medium-sized E&P company to quickly consolidate its upstream

operation.

In natural gas business, Indian Oil is already marketing 5.26 MMSCMD

(million metric standard cubic meters per day) of gas. To augment its

business in the sector, it has now finalized an import deal for 1.75

million tones of LNG per annum with Iran for supplies from the year

2009 onwards. The Corporation has also proposed partnering

Petropars, a subsidiary of National

Iranian Oil Company, in jointly developing gas blocks in the North Pars

fields of Iran. Indian Oil grossed its first US$ 1 billion in revenues

through initiatives in New business in 2004-05

Transnational PresenceTo emerge as a transnational energy major, Indian Oil has set up

offices in Sri Lanka, Mauritius and UAE and is simultaneously scouting

new opportunities in new energy markets in Asia and Africa.

The Sri Lankan subsidiary, Lanka IOC, operates 170 retail outlets

commanding a 27% market share. Its oil terminal at Trincomalee is

also Sri Lankas largest petroleum storage facility.

Indian Oil Mauritius Ltd. has garnered a 7% market share in the very

first year of its operation. It also operates a modern petroleum bulk

storage terminal at Mer Rouge port, besides five retail outlets. A

modern product testing laboratory and expansion of retail network

have also been proposed in Mauritius.

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Indian Oils Regional Office in Dubai, which is coordinating business

expansion in the Middle East, has commenced blending of SERVO

lubricants through contract blending arrangements for the first time

recently.

Synergy through Subsidiaries

A wholly owned subsidiary Indian Oil Technologies Ltd., has been

established for commercializing the innovations and technologies

developed by the R&D Centre across the globe. The merger of Indian

Oil Blending Ltd with the parent company, now approved by the

Government, is in the final stages of implementation.

The merger of IBP Co. Ltd., a retail focused subsidiary with a network

of 4,000 retail outlets, with the parent company is awaiting the

Governments nod after its approval by the Boards of Indian Oil and

IBP. On Governments approval, other statutory approvals, including

shareholders approval, would be sought to complete the merger at the

earliest.

The merger of Bongaigaon Refinery and Petrochemicals Ltd. with the

parent company has also been mooted with the respective Boards

approving the same already. Other formalities, including Governments

nod, would be sought in due course.

Spreading Wings

The Corporation has launched several joint ventures in partnership

with some of the most respected Corporate from India and abroad --

Lubrizol, Nyco SA, Petronas, Oil tankin GmbH, Marubeni, to name a

few. SERVO lubricants are being marketed in Dubai, Nepal, Bhutan,

Kuwait Malaysia, Bahrain, Indonesia, Sri Lanka, Kyrgyzstan, Mauritius,

Bangladesh, etc.

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Indian Oil has been lending its expertise for nearly two decades to

various countries in several areas of refining, marketing,

transportation, training and research & development. These include Sri

Lanka, Kuwait, Bahrain, Iraq, Abu Dhabi, Tanzania, Ethiopia, Algeria,

Nigeria, Nepal, Bhutan, Maldives, Malaysia, Sudan and Zambia.

Indian Oil's sincere commitment to Quality, Safety, Health and

Environment is reflected in the series of national and international

certifications and awards earned over the years.

The 18th largest petroleum Company in the world, Indian Oil is well on

its way to becoming an integrated, transnational energy corporate.

Vision

A major diversified, transnational, integrated energy company, with

national leadership and a strong environment conscience, playing a

national role in oil security& public distribution.

Mission To achieve international standards of excellence in all aspects of

energy and diversified business with focus on customer delight through

value of products and services, and cost reduction.

To maximize creation of wealth, value and satisfaction for the

stakeholders.

To attain leadership in developing, adopting and assimilating

state-of- the-art technology for competitive advantage. To provide technology and services through sustained Research

and Development.

To foster a culture of participation and innovation for employee

growth and contribution.

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To cultivate high standards of business ethics and Total Quality

Management for a strong corporate identity and brand equity.

To help enrich the quality of life of the community and preserve

ecological balance and heritage through a strong environment

conscience.

Objectives

To serve the national interests in the oil and related sectors in

accordance and consistent with Government policies.

To ensure and maintain continuous and smooth supplies of

petroleum products by way of crude refining, transportation and

marketing activities and to provide appropriate assistance to the

consumer to conserve and use petroleum products efficiently.

To earn a reasonable rate of interest on investment.

To work towards the achievement of self-sufficiency in the field

of oil refining by setting up adequate capacity and to build up

expertise in laying of crude and petroleum product pipelines.

To create a strong research and development base in the field of

oil refining and stimulate the development of new product

formulations with a view to minimize/eliminate their imports and

to have next generation products.

To maximize utilization of the existing facilities in order to

improve efficiency and increases productivity.

To optimize utilization of its refining capacity and maximize

distillate yield from refining of crude to minimize foreign

exchange outgo.

To minimize fuel consumption in refineries and stock losses in

marketing operations to effect energy conservation.

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To further enhance distribution network for providing assured

service to customers throughout the country through expansion

of reseller network as per Marketing Plan/Government approval.

To avail of all viable opportunities, both national and global,

arising out of the liberalization policies being persuaded by the

government of India.

To achieve higher growth through integration, mergers,

acquisitions and diversification by harnessing new business

opportunities like petrochemicals, power, lube business,

consultancy abroad and exploration &production.

OBLIGATION

Towards customers and dealers

To provide prompt, courteous and efficient service and quality

products at fair and reasonable prices.

Towards suppliers

To ensure prompt dealings with integrity, impartiality and

courtesy and promote ancillary industries.

Towards employees

Develop their capability and advancement through appropriate

training and career planning.

Expeditious redressal of grievances

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Fair dealings with recognized representatives of employees in

pursuance of healthy trade union practice and sound personnel

policies.

Towards community

To develop techno-economically viable and environment-friendly

products for the benefit of the people.

To encourage progressive indigenous manufacture of products

and materials so as to substitute imports.

To ensure safety in operations and highest standards of

environment protection in its manufacturing plants and

townships by taking suitable and effective measures.

Towards Defense Services

To maintain adequate supplies to defense Services during

normal and emergency situations as per their requirement at

different locations.

Financial Objectives

To ensure adequate return on the capital employed and maintain

a reasonable annual Dividend on its equity capital.

To ensure maximum economy in expenditure.

To manage and operate the 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 activities of the Corporation.

To endeavor to reduce the cost of production of petroleum

products by means of systematic cost control measures.

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To endeavor to complete all planned projects within the

stipulated time and cost estimates

CORPORATE RESPONSIBILITY

Indian Oil, it is a Mission to help enrich the quality of life and preserve

cultural heritage of the communities in which they operate.

Indian Oil's community development plans have avowed objectives to

improve the quality of life of economically and socially weaker sections

of society, to develop techno-economically viable and environment

friendly products for people, and to ensure safety in operations and the

highest standards in environment protection. They have been taking

concrete actions to realize these principles of Business philosophy,

thereby building value for shareholders and customers. They are

constructive partners in the communities where we do business. They

respect human rights, value employees and invest in innovative

technologies and solutions to meet the need for sustainable energy

and economic growth.

Since inception, Indian Oil has supported dozens of social initiatives in

India. Touching the lives of millions of people positively through

sponsorship of environmental and health-care initiatives as well as

cultural and educational programmes. Indian Oil People have rallied to

help victims of natural calamities.

Indian Oil has a concerted social responsibility programme to partner

communities in health, family welfare, education, environmentprotection, providing potable water, sanitation, and empowerment of

women and other marginalized groups.

Every year, a fixed profit-linked percentage goes towards spreading

smiles in millions of lives across the country through welfare and

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Community development activities. The budget allocation for a typical

year towards Indian Oil's social responsibility activities looks like this:

Participation of people is vital for the successful implementation of

community level interventions

SWOT ANALYSIS

Data was collected from IOCL website, annual report (2005-06) and

interaction with the officer on the basis of the information SWOT

Analysis as follows.

Strengths

Most powerful Player

IOC being the highest ranked Indian Company and ranked at 153rd

in the fortune 500 companies holds a high brand image. It is the

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In rural areas it has 231 multipurpose distribution centers. Indian Oil

has over 100 Indane LPG distributorship commissioned in rural and

semi-rural areas.

Weaknesses

Government Control

The functioning of IOC is greatly influenced by the governments

policy and regulations. The government has 82% stake in the

company. There is always a risk of its proposal being rejected as

there is uncertain environment prevailing in the country.

Large Size

Indian Oil is marketing wing a huge organization having its head

office at Mumbai, 4 regional offices, 15 state offices, 44 divisional

offices and 33 area offices Indian oil all together employee

33515(approx. 33000) employees in various levels of organizational

hierarchy. Hence leading to slowing down of processes and inefficient

performance due to numerous departmental layers. Handling such

large pool f human recourses and channeling their skill in a direction

same as a organization is not a easy task. This hinders the fast

growth required by the organization within and overall.

People Perception

In our country, the perception of the corporate and consumer toward

the government organization and office is not favorable, hence

though IOC has performed excellently it is still viewed as inefficient

company, not getting the due importance.

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Retail Market Share

Even through IOC controls most of the retail outlets it has the market

share of only 33.8% in the petrol and 39.6% share in diesel

registering an increase in 0.55 and 0.3% respectively over the last

year. This is comparatively too small compared to its size, reach and

production. This because of the fact that its retail outlets are

concentrated more in semi- urban areas and rural areas.

Unexplored Areas

The Company has very little presence in the central and southern

parts of the country. Neither do they have any refineries in theseregions it has only Subsidiary Chennai Petroleum Corporation limited

Opportunities

More revenue

With the dismantling of APM (Administered pricing mechanism) in

2002, IOC was able to fix the prices of its products without

government intervention resulting in an upsurge in revenue earning.

Firstly, since the new players used the infrastructural facilities

provided by IOC and pay for the services rendered for example, IOCL

has signed the marketing rights agreement for 10 years with RPL.

Secondly, by reducing the existing prices to the permissible extent

and providing better facilities. This helped in capturing more market

share making better facilities however, government stared exercising

control over pricing mechanism since 2004 due to various

compulsion.

Extensifying Infrastructure

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The competitors entering the sector are still not fully operational. While

they are building up there infrastructure IOC should grab the

opportunities to extend and strengthen it in deficit areas. It can

modernize its plants and augment capacity, extend pipelines to middle

and southern regions facilitating cheaper transport in those areas. Also

more jubilee retail outlets, which are state- of -the-art, should be

commissioned in different parts of the country for greater customer

satisfaction.

Threats

Tastes of Competition

As we are closing in on the dismantling of APM we see lot of private

participation in the sector. With the government opening the

upstream sector and taking away the sole rights of distribution from

PSUs, private sector see lot of scope for business. As a result

Reliance has already entered the field and has started production and

ESSAR refineries is following suite. If these companies are able to do

profitable business in this sector then other national andmultinational companies many also are lured into this field. IOCs

shift from a monopoly in a protected environment to a free market

may not be easy.

Price WarsIn this free market operation, where all the firms have the full liberty

to control the prices of their products, a price war may happen in the

near future. Since, this will be a major factor of determining their

market share. If MNCs with deep pocket decide to enter this sector

then they may be able to make this war harsher by cutting down

prices even below the permissible level, initially to capture market

share.

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Better-equipped competitors

The new players will give tough competition, as they will have latest

technology and more advanced research and development resources,

skill and expertise. They will have better and more efficient machines

capable of producing more and better. They will have easy access to

foreign markets due to their global presence and standards.

BRIEF OF HR DEPARTMENT

HR DEPARTMENT

ED (HR) heads it with the following functions:

Personnel

Administration

Management services

Human resource development

Training and Development

Corporate communications

Personnel department- Objectives, Functions and

Responsibilities

The primary objectives of personnel department are to:

Design and develop an organizational structure with well

defined relationship commensurate with the business plan and

corporate strategies.

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Promote and develop cooperative attitude amongst employees

by fostering harmonious relation at all levels.

Evolve progressive and pragmatic personnel policies, procedures

and practices and ensure its uniform interpretation and judicious

implementation

Develop capability and proficiency of employees and their

advancement through appropriate training and continuous

knowledge updating to face corporate challenges and new

technologies.

Promote and inculcate the culture of employees participation in

management.

Inculcate productivity consciousness amongst employees.

The personnel department will direct its activities through 3 channels:

Service to workers

.Service to supervisory personnel

.Service to management

Functions:

1. Planning Manpower Requirement

Estimating vacancies

Recruitment to seek and attract qualified applicants to fill

vacancies

Recruitment after judicious decision and based on specific

skill requirement in the organization.

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Meeting specialized man power requirement of the new

business venture of the organization.

2. Organizing man power resources

Organizational planning to determine the organizational

structure and selection needed to meet company

objectives

Selection

3. Staffing

Induction

Transfers and promotions

Manpower development

Training

4. Motivation

Job analysis

Recreation

Communication

Collective bargaining

Employee counseling

Safety

Medical services

Precaution and security

Personnel research

Grievance handling

Effective performance assessment system

Carrier plan and carrier progression of employees

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Succession planning

Schemes for personal Development

Responsibilities

It will be responsibility of the personnel department to

formulate personnel policies and programs to

communicate same to units.

Personnel management essentially being a staff function,

its role will be that of a staff department with emphasis on

its advisory character in all matters connected with

personnel activities except in respect of the promotion of

welfare measures which will be the executive responsibility

of this department.

Personnel department shall also be responsible for

ensuring compliance with provision of various laws and

other statutes

Administration Department- Objectives, Functions and

Responsibilities:

On all Administrative and policy matters other than those

pertaining to personnel, finance and material procurement /

custom clearance, Calcutta and Mumbai offices are advised

by the administration department at the Head quarters.

The primary objectives of administration department are to:

1. Assist management in implementation and execution of various

administrative decisions taken by the board of directors of the

corporation.

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Co-ordination

2. Render assistance to refinery units and various departments at

the head quarters in maintaining liaison with the various

ministers of the government of India, Lok Sabha Secretariat etc

Functions

1. Policy matters

Delegation of powers

Implementation of Boards decisions

Office and residential accommodation.

Maintenance of records.

Transport facilities

2. Co ordination

Reports to ministry on projects under construction.

Reply to parliament questions.

3. Legal matters

Processing of contracts and agreements.

Lease agreements.

Bonds and mortgage deeds.

Office services contracts.

Dealing with court cases

4. General Administration

House keeping of office space

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Implementation of provision of the official language Act

and instructions issued by Government of India

Providing guidelines and assistance in encouraging

correspondence in Hindi

Translation of documents like manual, handbooks,

contracts, resolutions, general orders

Organization of Hindi classes.

RESEARC METHODOLOGY &DESIGN

MEANING OF RESEARCH

Research in common parlance refers to a search for knowledge. One

can also define research as scientific and systematic search for

pertinent information on a specific topic

Well, all possess the vital instincts of investigation for, when the

unknown confronts us, we wonder and our inquisitiveness makes us

probe and attain full data and fuller understanding of the unknown, can

be termed as research. It comprises defining and redefining problems,

suggesting solution, collecting, organizing and evaluating data, making

deduction and reaching conclusions and at last carefully testing the

conclusions. Research methodology is a way to systematically solve

the problem.

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A research design is an arrangement of condition for the

collection and analysis of data in a manner that aims to

combine the relevance to the research purpose with economy

in procedure.

In fact, the research design is the conceptual structure with in which

research is conducted; it constitutes the blue print for the collection

measurement and the analysis of the data. The research work which is

undertaken is to get a detailed knowledge about the project

(PERFORMANCE MANAGEMENT SYSTEM).

Research design

1. Qualitative research: this is through

Personnel manual

Corporate website www.iocl.com

Graphical interpretation

2. Quantitative research

Design used: Descriptive

Secondary data plan:

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http://www.iocl.com/http://www.iocl.com/


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Sampling plan

1. Target Population:

Sampling element refineries division IOCL, Lodhi road, New

Delhi

2. Sampling Technique:

Random sampling

3. Sample Size:

25

4. Research Tool

Standard questionnaire

Limitations of the study

1. Sample size is small

DATA SOURCE INFORMATION

CONTAINED

INFORMATION

RECIEVEDPersonnel manual

of the company

Complete record of

HR policies andpractices

HR policies prevalent

in the company

Website of the

company

Company

background and

profile, new projects

and developments,

overview of

company

Company back

ground , awareness

of employees about

incentive scheme.

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2. Survey look at particular aspect of peoples belief and actions

without looking at the context in which they occur, so some of

the analysis may not lead to proper interpretation

Questionnaire was objective one with multiple-choice answers. In some

cases employees found two equally prevailing situations but since only

one most like situation had to be marked their complete or overall

perception in that particular dimensions could not be studied.

INTRODUCTION ON PERFORMANCE MANAGEMENT SYSTEM

Performance management System

Performance management is the process of creating a work

environment or setting in which people are enabled to perform to the

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best of their abilities. Performance management is a whole work

system that begins when a job is defined as needed. It ends when an

employee leaves your organization

A performance management system includes the following actions.

Develop clear job descriptions.

Select appropriate people with an appropriate selection

process.

Negotiate requirements and accomplishment-based

performance standards, outcomes, and measures

.Provide effective orientation, education, and training.

Provide on-going coaching and feedback.

Conduct quarterly performance development discussions.

Design effective compensation and recognition systems

that reward people for their contributions.

Provide promotional/career development opportunities for

staff.

Assist with exit interviews to understand WHY valued

employees leave the organization.

Performance measurement is the process of assessing progress

toward achieving predetermined goals. Performance management is

building on that process, adding the relevant communication and

action on the progress achieved against these predetermined goals.

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In network performance management, (a) a set of functions that

evaluate and report the behavior of telecommunications equipment

and the effectiveness of the network or network element and (b) a

set of various sub functions, such as gathering statistical information,maintaining and examining historical logs, determining system

performance under natural and artificial conditions, and altering

system modes of operation.[2]

In organizational development (OD), performance can be thought of

as Actual Results vs Desired Results. Any discrepancy, where Actual

is less than Desired, could constitute the performance improvement

zone. Performance management and improvement can be thought ofas a cycle:

Performance planning where goals and objectives are established

Performance coaching where a manager intervenes to give feedback

and adjust performance

Performance appraisal where individual performance is formally

documented and feedback delivered

A performance problem is any gap between Desired Results and

Actual Results. Performance improvement is any effort targeted at

closing the gap between Actual Results and Desired Results.

Application Performance Management (APM) refers to the discipline

within systems management that focuses on monitoring and

managing the performance and availability of software applications.

APM can be defined as workflow and related IT tools deployed to

detect, diagnose, remedy and report on application performance

issues to ensure that application performance meets or exceeds end-

users and businesses expectations.

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Business performance management (BPM) is a set of processes that

help businesses discover efficient use of their business units,

financial, human and material resources.

Operational performance management (OPM) focus is oncreating methodical and predictable ways to improve business

results, or performance, across organizations.

Simply put, performance management helps organizations achieve

their strategic goals. Rather than discarding the data accessibility

previous systems fostered, performance management harnesses it to

help ensure that an organizations data works in service to

organizational goals to provide information that is actually useful inachieving them. and focus on the Operational Networking Processes

between that performance level

Performance appraisal, also known as employee appraisal, is a method

by which the performance of an employee is measured (generally in

terms of quality, quantity, cost and Time). The roots of Performance

Appraisal can be found in Frederick Winslow Taylor's time and motion

study. Performance appraisal is a part of career development.

Performance appraisals are a regular review of employee

performance within organizations.

Generally, the aims of a scheme are:

Give feedback on performance to employees.

Identify employee training needs.

Document criteria used to allocate organizational rewards.

Form a basis for personnel decisions-salary (merit) increases,

promotions, disciplinary actions, etc.

Provide the opportunity for organizational diagnosis and

development.

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Facilitate communication between employee and administrator.

Validate selection techniques and human resource policies to

meet federal Equal Employment Opportunity requirements.

A common approach to assessing performance is to use a numerical

or scalar rating system whereby managers are asked to score an

individual against a number of objectives/attributes. Employees are

also allowed the opportunity to assess the person (manager) at the

same time. this is known as 360 appraisal

The most popular methods that are being used as performance

appraisal process are:

Graphic rating scale method

Alternation Ranking Method

Paired Comparison Method

Critical incident Method

Narrative Forms

Management by objectives (MBO)

360 degree appraisal

Comparing Performance Appraisal and Performance

Management

The idea that appraisals should improve employee performance isnothing new many managers take the integrated nature of that

process of setting goals, training employees, and then appraising and

rewarding them more seriously today then they have in the past.

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Performance management is the notion that the employees effort

should be goal directed .There are two aspects to this. First the

manager should appraise the employee based on how that person

performed with respect to achieving the specific the standards by

which the employee expected to be measured.second, the employees

goals and performance standards should make sense in terms of the

strategic goals

In practice clarifying what you expect from the employee is trickier

than it may appear .for example employers usually write job

description not for specific jobs but for groups of jobs and the

description rarely include specific goals .All sales managers in the firm

may have the same job description for instance .your sales managers

job description may list duties such as supervise sales force and be

responsible for all phases of marketing the divisions products

Assign Specific goals- Employees who are given specific goals

usually perform better than those who are not.

Assign Measurable Goals-Express goals in quantitative terms and

include target dates or deadlines .Goals set in absolute terms are less

confusing than goals set in relative terms. if measurable results will not

be available then satisfactory completion such as satisfactorily

attended workshop or satisfactorily completed his or her degree is the

next best thing .In any case target dates or deadlines should always be

set.

Assign challenging but Doable Goals-Goals should be challenging

but not so difficult that they appear impossible or unrealistic. when is a

goal too difficult or too hard ? one expert says

A goal is probably too easy if it calls for little or no improvement in

performance when condition are becoming more favorable or if the

targeted level of performance is well below that of most other

employees in comparable positions .A goal is probably too difficult if it

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calls for a large improvement in performance when conditions are

worsening or if the targeted level of performance is well above that of

people in comparable positions

Encourage Participation- Throughout your management career

youll be faced with this question .should I tell my employees what

their goals are or should I let them participate with me in setting their

goals? The evidence suggest that anticipatively set ones .it is only

when the anticipatively set goals are more difficult then the assigned

ones that the anticipatively set goals produce higher performance.

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ANALYSIS AND INTERPRETATION OF QUESTIONAARIE

60% officers feel good about ePMS and 8% officers feels that ePMS is

excellent .68%respondent feeling satisfied about a new HRD initiative

in the organization is a very encouraging. Officers have had an

experience of going through the entire process right from Performance

Appraisal only for one cycle .it is felt that as people go through the

system again and again. they would be more confident which helps in

system getting established . 32%respondent feels that the system isnot good .Gradually this percentage is expected to go down as

assignment years pass through.

46

2. Feeling of officers about the ePMS

0%

24%

60%

8%

8%

BadNot Good

Good

Very Good

Excellent


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A total of 42% officers feel that e-PMS has rendered benefits in terms

of training opportunities and promotion .This is an area where people

need to be aware that e-PMS is change of appraisal system from pen

paper version of Performance Appraisal to electronic mode of

Performance Management System where the process moves

electronically.

Performance planning well at the beginning of the year following it

up through the year by achieving the target one by one is giving to be

beneficial to the organization

0

5

10

15

20

25

Training

Opportunities

Promotion Paid Study leaveDo not know

3.Opinion of officers on benefits derived

from PMS

Yes No

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4. Influence of ePMS at the individual or depart mental level on

various aspects.

0

2

4

6

8

10

12

14

16

18

20

Yes 19 20 14 12 17

No 2 2 4 6 5

Productivity

Improveeffectiveness and

CareerDevelopment of the

Succession

Planning

Focusedapproach

to job

It may be observed from the above graph that to the officers ePMS

influence their productivity 90% of the executive officers think that

ePMS improve their efficiency and effectivness at work ,77% officers

think that ePMS help in carrer development of the individuals, 66.5%

officers think that the present ePMSis helpful in succession planning in

organization and % officers think that ePMS is helpful in focused

approached to job.

The thinking process of officers is in the right direction Since there are

the primary objectives with which ePMS has been implemented in IOC

over and above everything else the system is expected to being in a

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lot of discipline is timely seting of goals for the year and go about

achieving their in a focused manners

60% of the executive feel that PMS is useful to them and for the

organization. 32% feel that it is only an annual ritual. There are

else about 8% respondents who feel it as a management

gimmick

Indian Oil needs to connect there 40% respondents who other

wise feel that it is only an annual ritual or a management

gimmick through appropriate interventions like training

programme and refresher like training programmes and

5.Thinking of officers about the ePMS

in general ?

0

2

4

6

8

1012

14

16

An annual ritual Something useful tothe employees & the

organization

A managementgimmick.

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refresher session this would make them more aware of the

hidden benefits of the system

40% of the executive agreed that the present PMS has contributed to

their increased performance while performing different type of work

there is a need to seriously took into the factor above gives an

6.Opinion of people whether thepresent ePMS has contributed

to increased performance.

40%

32%

28%

Yes

No

Can't say

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indicator that only 40% respondents have seriously gone through the

process 28% respondents are still in different about the impact of

ePMS on increasing performance Indian Oil can think of sharing the

benefits of the system through appropriate media channels of

communication already available with them

7. opinion of people on capability of ePMS in

assessing the performance effectively.

32%

48%

20%

Yes

No

Can't say

Only 32% of the executives agreed that the existing PMS is capable for

assessing the performance effectively while 48% respondents feel that

the system is not capable of effectively performance 20% respondents

were indifferent It would be a worthwhile exercise for Indian Oil to

deeply probe into the reason as to why such a large percentage of

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people feel that ePMS is not capable of effectively assessing the

performance

This is inspite of the fact that 50 to 60% of ePMS entire goal portion is

totally transparent and scores known to the employee

8. Opinion of the people wheather t

prevailing PMS is able to create hig

performance orientation at IOCL.

0

2

4

6

8

10

12

1

Yes

No

Can't say

Only 40% officers believe that PMS is able to create higher

performance orientation at IOCL.This is also an area of concern for

Indian oil and needs to be looked into seriously

Structural information sharing on Performance Management System

could help to a great extent in this regard

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11. Opinion of officers wheather ePMS

brings stronger alignment of individual

performance with organizational goals.

40%

20%

40%Yes

No

Can't sa

40% of the executive agreed that the e PMS in IOCL brings strongeralignment of individual performance with organizational goals while40% did not agree 20% were in different on the issue This is also notan encouraging finding

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An overwhelming majority of 76% of the executive agreed that the

goal setting has really improved their performance and stretched

targets. This is really encouraging since people are able to link goalssetting and their performance

Goal setting as a matter fact helps the employees to systematically

perform and hence the goals in a focused controlled manner The

process gives a sense of direction and accomplishment

10. Opinion of people whether goalsetting improves performance

76%

12%

12%

Yes

No

Can't say

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52% officers agree that the present Performance Management System

is helping in the growth & development of the organization &

employees.

11. opinion of the people whetherthe present system will help future

growth & development of organization.

52%

28%

20%

Yes

No

can't say

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Indian Oil needs to look into the 28% people as to why they feel that

ePMS will not help future growth and development of the organization

14. Opinion of the people wheather

subordinates can effectively judge their

performance while doing their self-appr

under ePMS

53%

29%

18%

Yes

NoCan't say

53% employees believe that e-PMS help them to effectively judge their

own Performance while doing their self appraisal. This reflect the level

of confidence of the officers in handling a new system .It is however

suprising to see that 18%employees are in different ie they do not

know whether they are able to judge themselves effectively or not.

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15.Opinion of officers wheather t

superiors can effectively judge t

performance under ePMS

50%

38%

12%

Yes

No

Can't say

50% officers agreed that their supervisor can judge the performance of

the subordinates effectively This gives an indicator that the officers are

confident about the proficiency and ability of their supervisors in

effectively judging their performance under ePMS

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64% officers strongly believe that they can effectively judge their own

performance ePMS. This is a good indicator 36% respondents still do

not seem to be confident in handling the new system and consequently

feel that they cannot effectively judge their own performance under e-

PMS .Indian Oil could probably intervene with a suitable training

programmed to make once people confident with the system .To a

16.opinion of the officers about their own

ability to effectively judge their own

performance under ePMS.

0

2

4

6

810

12

14

16

18

1

Yes No

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great extent the supervisor can also help these people to develop their

competency in this regard

17. Opinion of officers on opportuni

for self-review & projection provide

by ePMS.

56%32%

12%

Yes

No

Can't say

56% officers agreed upon the PMS give an opportunity for self- review

&projection .It is however felt that with passage of time ,officers would

understand e-PMS and its various facts more and more and they would

be able to project themselves better.

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FINDINGS

FINDINGS

The results, which have been reflected in charts / graphs, indicate that officers are well

aware of the norms, rules and regulations and the existing system. They know the

emerging trend ,which is well suited for a truly competitive market. Officers are wellaware of the role of performance management system in the organization.

The findings of the survey conducted are

The performance management system is done annually for all the grades of the

officers. All officers are well aware of the existing performance system in the organization

officers are satisfied with the effectiveness of the performance management

system in the organization and they also agree on the ability of knowing theirpotential ,

Helps in the future growth and development

60% officers feel good about ePMS and 8% officers feels that ePMS is excellent,

68%respondant feeling satisfied about new HRD initiative in the organization isvery encouraging.

A total of 42% officers feel that ePMS has rendered benefits in terms of training

opportunities and promotion

60% of the executive feels that PMS is useful to them and for the organization .

32%feel that it is only an annual ritual There are all about 8% respondents who

feel that it is management gimmick

40% of the executive agreed in their that the present PMS has contributed to

increase performance while performing different types of work gives an

indication that only 40% respondent have seriously gone through the process.

40% officers believe that PMS is able to create higher performance orientation at

Indian oil

An overwhelming majority of 76% of the executive agrees that the goal setting

has really improved their performance and stretched targets.

53% employees believe that ePMs help them to effectively judge their ownperformance while doing their self-appraisal .this reflects the level of confidenceof the officials in handling a new system.

52% employees think that negative reporting does not affect their performance

and balance 48% employees think that is such reporting does affect the

performance.

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SUGGESTION

In recent years the concept of the HR Department as a different functional area in an

organization has taken a lot of enthusiasm. This is the result of the due importance given

to the employees, since it has been, understood that the most valuable asset of anorganization is its employees who have to be taken care properly in the organization

Since performance of the employees has to be monitored on a continuous basis, the

performance management system should be used properly in such a way that it gives outmaximum desired results .A well design Performance Management system is such a tool

that it can help of the employee not only to improve his or her performance but also for

career planning, assessing potential etc.

Some of the suggestions that, which could be considered by the organization, are as

follows:

Make PMS more transparent gradually

Performance planning well at the beginning of the year following it up through

out the year by achieving the targets on one by one is going to be beneficial to theorganization. timely planning should be effectively monitored

Indian oil should make appropriate intervention, like trainings programmed and

refreshers sessions. This would make them more and more aware of the hiddenbenefits of the system.

Respondent are still in different about the impact of ePMS on enhancing

performance. Indian oil must think of sharing the benefits of the sys tem throughappropriate media channel s of communication already available with them.

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CONCLUSION

An organizations excellence depends upon its employees performance ,which has not

only to be maintained on a consistent level but also be improved constantly .Employee

performance has to be constantly monitored and evaluated on a continuous basis to

identify different levels of performance for reward and developmental decisions

As said earlier, in todays highly competitive age the biggest problem is of retention of

highly skilled employees in the organization Performance Management System plays a

vital role in this regard. But it should be seen that no system is without any flaws. Every

system has its strong and weak points and is open for change at any time .The main ideabehind which should be seen is whether the system has to be able to perform its role

taking the organization to its desired position .And if the organization has been able to

stabilize itself on the above said problem then the credit with the HR policies can also be

given to its Performance Management System.

Indian Oil Corporation Ltd has a well-developed system for its officers .Its merits and

performance based system lends opportunities for growth and development .The goal

based system for D & above officers look in for the overall development of the officers.

And both these provides scope for employees on future growth, career planning, training

and development etc. Which are well suited for the system?

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ANNEXURES

QUESTIONNAIRE

PERFORMANCE MANAGEMENT SYSTEM & ITS EFFECTIVENESS

Personal details

Age:

Qualification:

Department:

Grade:

No. of yrs of service in IOCL:

Please tick mark () your answer for the following:

Q1.Do you have Performance Management System?

Yes No

Q2. How do you feel about the ePMS?

a) Bad b) Not good c) good d) verygood e) excellent

Q3. Now that ePMS is in its 3rd round of implementation. Are you

confident of handling the issues built into the system for your self &your subordinates?a) Yes b) No

If no, suggest three ways of educating the users of ePMS.

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Q4. What benefits could be derived from the PMS?

a) Training Opportunities Yes No

b) Promotion Yes No

c) Paid Study leaves Yes No

d) Do not know Yes No

e) Other, Please specify

Q5.Can the PMS influence any of the following at the individual ordepartmental level?

YesNo

a. Productivity YesNob. Improve effectiveness and efficiency at work Yes

Noc. Career Development of the individuals YesNod. Succession planning in organization yesNoe. Focused approach to job YesNo

Q6. What do you think about the PMS in general?a) An annual ritual

b) Something useful to the employees & the organizationc) A management gimmick.

Q7. Has the present PMS contributed to your increased performance?

a) Yes b) No c) cant say

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Q8. Do you think the existing PMS is capable of assessing theperformance effectively?


Q9. Do you think the prevailing PMS is able to create higherperformance orientation at IOCL?


Q10. Do you want to suggest changes in your present PMS?


If yes, can you please specify the changes that need to beincorporated?

Q11. Do you think the present PMS, which is followed in IOCL; isstronger alignment of individual performance with organizationalgoals?


Q12. Does goal setting improve the performance?


Q13. Do you think that the present system will help in future growth& development of the organization?


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Q14. Do you think that your subordinates can effectively judge theirown performance while doing their self-appraisal under ePMS?


Q15.Do you think that your superiors can effectively judge yourperformance under ePMS?


IQ16. Do you think that u can effectively judge your own performanceunder ePMS?

a) Yes b) No.

Q17. Do you think the existing PMS gives an opportunity for self-review& projection?


Q18. PMS should be transparent rather than keeping it confidential?


If, yes why do you feel so and what other portions should be madeopen?

Q19. Is there a need for identification of managers as specialist &generalist?


Q20. Do you think the identification helps in future career planning?


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MARKETING:-

IndianOil is the leading marketer of petroleum products in India

with a market share of approximately 56% of total petroleumproducts sold by PSU oil companies. The company distributes its

products directly to bulk customers and to retail customers via a

network of retail outlets and dealers/distributors.

The companys overall distribution network encompasses over

24,000 sales points incorporating its own franchise as well as

independent outlets, consumer pumps, distributors etc. the

substantial majority of which are governed by dealershipagreements. Products are transported to the distribution points by

pipeline, ship tanker, rail tankers and road tanker trucks.

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PRODUCT PROFILE

1. BRANDS :-

a) Kisan sewa Kendras : -

As a new growth area in retail business, IndianOil unveiled a

small-format 'Kisan Sewa Kendras for rural markets. These

outlets meet the diverse needs of the rural populace offering a

variety of products and services besides autofuels and kerosene.

The Kendras will primarily market petroleum fuels, SERVO

lubricants, fertilizers and agro inputs like seeds, and other items.This initiative is also expected to create employment avenues in

rural India.

b) SERVO :

SERVO is India's largest selling lubricant brand. SERVO range of

lubricants enjoy approvals from major Original Equipment

Manufacturers (OEMs) including new generation cars. 9,000

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Retail Outlets and a countrywide network of SERVO SSls and

SSAs Bazaar traders offer SERVO range of lubricants to

customers.

c) XtraPower :-

IndianOil's XtraPower Fleet Card Program is a complete fleetmanagement solution for Fleet Owners / Operators and Corporates.

XtraPower is a Smart Card based Fleet Card Program, which

facilitates cashless purchase of fuel & lubes from designated retail

outlets of IndianOil through flexible prepaid and credit facilities.

d)XtraCare :-

The launch of XtraCare was the culmination of a series of plans inretail design, product and service upgradation, capability training,

automation, loyalty programme, retail site management techniques

all benchmarked to global standards.

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e)Premium Fuels:-

Indian Oils branded fuels XtraMile and XtraPremium have made

a significant impact in the petroleum retail market. India's first 91

Octane petrol, XtraPremium is reinforced with multifunctional

additives including 'Friction Buster'. XtraMile, IndianOil's new

generation High Speed Diesel with world-class additives has takena leadership position in the market.

f)Indian Oil Aviation Service:-

Indian Oil Aviation Services is ISO 9002 certified which meet the

complete Aviation Fuel requirements of the Defence Services and

for over 75 Domestic and International airlines besides privateaircraft operators. IndianOil's prompt, courteous and 'No-Delay'

Aviation Fuel Service has received accolades from major

customers.

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g)Indane LPGas :-

Indian Oil Indane LPGas is used in 40 Million homes as cooking

fuel and commands over 48% market share in India. Indane LPGas

is marketed through a network of 4350 Indane distributors and is

widely used in commercial sectors like industries, etc. 87 IndaneBottling Plants are spread across the country with a combined

bottling capacity of 3.77 MMTPA.

h)Autogas:-

Autogas (LPG) has been introduced in Hyderabad, Bangalore and

Mumbai markets. This alternative fuel is a good business

proposition in the long term, and IndianOil intends to further

expand its marketing in a big way

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