INDIAN OIL CORPORATION
“Supply-Demand balance of L.P.G for year 2016-17 and identification
of Common user plants for OMC
PRESENTED BY-ANKIT JAIN
TITLE
1.INDUSTRY OVERVIEW 2.COMPANY OVERVIEW 3.OBJECTIVE OF THE STUDY 4. METHODOLOGY 5. OBSERVATIONS & ANALYSIS 6.FINDINGS 7. RECOMMENDATIONS 8. CONCLUSION
TOPICS TO BE COVERED…
Indian oil and gas sector - one of the six core industries in India and has very significant forward linkages with the entire economy.
The growing demand for crude oil and gas in the country and policy initiative of Government of India towards increased E&P activity leads to a great impetus to the Indian E&P industry raising hopes of increased exploration.
Oil and Natural Gas Corporation Limited (ONGC) and Oil India Ltd. (OIL), the two National Oil Companies (NOCs) and private and joint-venture companies are engaged in the exploration and production (E&P) of oil and natural gas in the country.
INDUSTRY OVERVIEW
Indian Oil Reliance Bharat Petroleum HP ONGC
Key Players in the industry
COMPANY OVERVIEW
I nteracts with your customer regularlyN eeds- identify precise needs of your customerD elight your customer every timeI nnovate your services for customer excellenceA ccuracy- accurate quantity to be providedN ever argue with your customersO ffer them every service available to youI nvite your customer to visit againL eave a long lasting impression on your customers
Established on 30th June 1959, as Indian Oil Company Ltd. & renamed as Indian Oil Corporation Ltd. on 1st September 1964.
18th largest petroleum company in the world.
Indian Oil Corporation Ltd. is India's largest company by sales with a turnover of Rs. 3,28,744 crore ($ 72,125 million) and profit of Rs. 7445 crore ($ 1,633 million) for the year 2010-11.
IndianOil is the highest ranked Indian company in the latest Fortune ‘Global 500’ listings, ranked at the 83rd position.
Continued…
A major diversified, trans-national,
integrated energy company, with
national leadership and a strong environment
conscience, playing a national role in
oil security & public distribution.
Vision of the company
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.
Mission of the company
Name of the company Market share (%)
IOC GROUP 46.2
BPCL 18.6
HPCL 16.5
OTHER PSUs 2.2
TOTAL PSUs 83.5
PRIVATE 16.5
TOTAL 100
Retail market share
Retail Market Share (as on Nov-2011)
Indane Gas Auto Gas Natural Gas Petrol Diesel Jet Fuel Lubricants & Greases Marine Fuels Kerosene Bulk/Industrial Fuels Bitumen Petrochemicals Special Products Crude Oil
Products
Refining Pipeline R & D Marketing
Services offered by the company
>controls 10 refineries>acquired equity stakes in CPCL & BRPL, & in 2001, became subsidiaries of IOC.>very strong distribution network >acquired management control of the marketing company IBP>extensive joint venture agreements>already entered overseas markets such as Sri Lanka, Maldives, and Oman.
>major weakness for the company is the R&D>petrochemical product development technology >technological drawback, as compared to some major foreign player> Size of the organization is too big to manage all effectively
>easily go for extension at any point of time, and can introduce any new products.>make the buying process more easy for the customers.>think over the issue to build its own pipelines>great scope in Explorations & Production
>foreign players with more advanced technology are the biggest threat for the company>crude oil supply - cannot fix its price , >In future the market will welcome more private players>If the Govt. Policies allow the private players to set their own price, the private player can seriously harm the market share of IOCL.
SWOT of the companySTRENTGH WEAKNESS
OPPORTUNITY THREAT
To propose a plan which should be cost effective and should cater the L.P.G demand of all the areas for the year 2016-17.
OBJECTIVE OF STUDY
The method which we are using is pretty simple .We have taken maps of each state and with the available demand of the L.P.G. as well as existing capacity of common-user plants, we were able to calculate deficit of each district. After calculating the deficit we have applied thumb rule.
The next step is to analyse the figure of deficit, if the deficit is high and in future it will be rising even more we have proposed a new plant otherwise we have augmented the capacity of existing IOCL bottling plants.
Whenever there is a surplus that particular plant will cater the demand of near by plants where there is deficit within the range of 160-200 kms
Methodology
1). We are applying the thumb rule i.e if a common user plant is located in a particular district it is feasible to cater the demand of L.P.G. within one way distance of 111 kms.
2). If we are recommending a new plant we assume that the new plants can feed the demand of other plants in future which are located in a distance of 160-200 kms one way distances.
3). We have assumed that in a state where the districts cant be fed from that particular state, we tried to cater the demand from near by plants of the other states.
4). We have also proposed a new plant where the demand is more and the competitors already have a bottling plant in that particular place and there is high rising in demand in future. This will give us the competitive edge.
ASSUMPTIONS
FINDINGS & RECOMMENDATIONS
UTTARPRADESH UTTARANCHAL RAJASTHAN DELHI HARYANA PUNJAB HIMACHAL JAMMU & KASHMIR
North Region
THE TOTAL DEMAND OF UTTAR PRADESH WILL BE ABOUT 2264 TMTPA BY YEAR 2016-17.
THE CURRENT CAPACITY IS 1265 TMT. THE CAPACITY REQUIRED IS 1595 TMT FOR 2016-2017. NEW PLANTS PROPOSED ARE AT
MUZAFFARPUR , HAMIRPUR , GORAKHPUR , GHAZIPUR OF 90 , 25 , 75 , 60 RESPECTIVELY.
..\..\Downloads\Bottling_Capacity.xls
UTTAR PRADESH
CAPACITY AUGUMENTATION IS NEEDED IN MATHURA, SULTANPUR , VARANASI, KANPUR NAGAR , KHERI , LUCKNOW, ETAWAH, FARRUKHABAD, GAUTAM BUDH NAGAR .
CONTINUED……
NEW PROPOSED PLANTS ARE AT PAURI ,PITHORAGARH ,TEHRI GARHWAL OF CAPACITY 15, 15, 11 RESPECTIVELY.
THE EXISTING is 150 TMT WHICH IS INCREASED TO 205 TMT FOR 2016-17.
THE AUGUMENTED BOTTLING PLANTS ARE HARIDWAR ,NAINITAL OF CAPACITY 30, 25 TMT RESPECTIVELY.
UTTARANCHAL
ALWAR , BARMER, HANUMANGARH , KOTA, UDAIPUR OF CAPACITY 50, 40, 23 , 70, 90 TMT RESPECTIVELY.
THE EXISTING CAPACITY IS 540 TMT WHICH IS PROPOSED TO INCREASE UPTO 948 TMT BY YEAR 2016-17
THE PROPOSED AUGUMENTION SHOULD BE IN JAIPUR , JHUNJHUNUN OF 83 , 100 TMT RESPECTIVELY.
RAJASTHAN
THE NEW PLANTS ARE IN MAHENDRAGARH ,PANCHKULA ,SIRSA OF CAPACITY 7, 20, 25 TMT RESPECTIVELY.
THE EXISTING CAPACITY IS PROPOSED INCREASED FROM 600 TMT TO 682 TMT BY 2016-17.
THE AUGUMENTATION PROPOSED IN KARNAL OF 30 TMT RESPECTIVELY.
..\..\Downloads\Bottling_Capacity.xls
HARYANA
THE NEW PROPOSED BOTTLING PLANTS ARE IN BATHINDA, FARIDKOTE, GURDASPUR OF CAPACITY 30, 50, 60 TMT RESPECTIVELY.
THE EXISTING CAPACITY IS PROPOSED INCREASED FROM 660 TMT TO 860 TMT BY 2016-17
THE AUGUMENTATION NEEDED IS IN JALANDHAR OF CAPACITY 60 TMT.
PUNJAB
THE NEW PROPOSED BOTTLING PLANTS ARE ANANTNAG, BARAMULLA, PULWAMA OF 35,25, 15 TMT RESPECTIVELY.
THE EXISTING CAPACITY IS PROPOSED TO INCREASED FROM 125 TMT TO 200 TMT BY 2016-17
JAMMU & KASHMIR
NEED TO AUGUMENT THE EXISTING TIKRIKALAM PLANT BY 120 TMT.
THE EXISTING CAPACITY IS PROPOSED TO INCREASED FROM 420 TMT TO 540 TMT BY 2016-17.
FEED THE REMAINING DEMAND BY TAKING CAPACITY FROM NOIDA, GURGAON & GHAZIABAD PLANT.
DELHI
WESTERN REGION
GUJRAT
THE NEW PROPOSED BOTTLING PLANTS ARE IN MEHSANA, KUCHCHH OF CAPACITY 90, 30 TMT RESPECTIVELY.
THE EXISTING CAPACITY IS PROPOSED TO AUGUMENT BY AHMEDABAD, BHAVNAGAR, NAVSARI, RAJKOT, VADODARA BY 120, 30, 60, 60, 50 TMT BY 2016-17.
TOTAL CAPACITY NEEDED FOR 2016-2017 IS 890 TMT.
SAVINGS WE ARE GETTING IN GUJRAT IS ABOUT Rs. 12.81 CRORES
CONTINUED
NEW PLANT PROPOSED IS PANJI OF 30 TMT WHICH WILL CATER THE NORTH GOA DEMAND.
THE TOTAL CAPACITY NEEDED IS 150 TMT FOR 2016-17
THE SAVINGS COMES OUT TO BE AROUND Rs 2.38 CRORES
GOA
MAHARASTRA
THE NEW PROPOSED BOTTLING PLANTS ARE IN AURANGABAD, CHANDRAPUR, DHULE, MUMBAI CITY, NAGPUR, NASHIK OSMANABAD,PARBHANI, THANE, WASIM BY 100, 11, 45, 150, 80, 90, 50, 35, 90, 23 TMT RESPECTIVELY.
THE EXISTING CAPACITY IS PROPOSED TO AUGUMENT IN NASHIK, AKOLA BY 45, 60 TMT BY 2016-17.
TOTAL CAPACITY NEEDED IS 2046 TMT 2016-2017.
CHHATTISGARH
THE NEW PROPOSED BOTTLING PLANTS ARE IN KORBA OF CAPACITY 30 TMT RESPECTIVELY.
THE RAIPUR PLANT IS NEEDED TO AUGUMENTED BY 25 TMT BY 2016-17.
TOTAL CAPACITY NEEDED FOR 2016-2017
IS 145 TMT.
THE NEW PROPOSED BOTTLING PLANTS ARE IN BETUL , GWALIOR, JABALPUR ,MANDASAUR, NEEMUCH WITH THE CAPACITY OF RESPECTIVELY 30 , 80 , 45 , 45 , 45 TMT.
THE EXISTING CAPACITY IS PROPOSED TO AUGUMENT IN BHOPAL , GUNA, INDORE, UJJAIN BY 120, 60, 90, 60 TMT RESPECTIVELY.
THE TOTAL SAVINGS IS COMING AROUND RS 52.89 CRORES
MADHAYA PRADESH
SOUTHERN REGION
THE NEW PROPOSED BOTTLING PLANTS ARE IN ADILABAD, KARIMNAGAR, NIZAMABAD, ONGOLE OF CAPACITYOF 25, 45, 30, 60 TMT RESPECTIVELY.
THE CAPACITY PROPOSED TO AUGUMENTED IN HYDERABAD & KADAPA BY 45 & 60 TMT RESPECTIVELY.
THE TOTAL SAVINGS COMING OUT TO BE 12.76 CRORES
ANDHRA PRADESH
THE NEW PLANT PROPOSED IS IN KASARGOD OF CAPACITY 23 TMT.
THE CAPACITY PROPOSED TO AUGUMENT IN KOLLAM, KOZHIKODE, PALAKKAD,
THIRUVANANTHAPURAM.THE TOTAL SAVINGS IS COMING OUT TO BE3.21 CRORES
KERAL
THE NEW PROPOSED BOTTLING PLANTS ARE IN BAGALKOT, GULBARGA, KOPPAL, MYSORE OF CAPACITY 30, 30, 60, 165 TMT RESPECTIVELY
THE CAPACITY AUGUMENTATION IS PROPOSED IN BANGALORE, SHIMOGA OF
CAPACITY 60, 45 TMT RESPECTIVELY.THE TOTAL SAVINGS IS COMING OUT TO BERS 40.31 CRORES
KARNATAKA
THE NEW PLANTS ARE PROPOSED IN DHAMAPURI, SHIVAGANGA, TIRUNELVELI OF CAPACITY 40,70,90 TMT RESPECTIVELY.
THE CAPACITY PROPOSED TO AUGUMENT IN CUDDALORE, ERODE, RAMANATHAPURAM, TRICHY, VILLUPURAM OF CAPACITY 35,70,40,15,23 TMT RESPECTIVELY.
THE TOTAL SAVINGS IS COMING OUT TO BE RS 16.26 CRORES
TAMILNADU
EAST REGION
THE NEW PLANT PROPOSED IS IN PURBAMEDINIPUR OF 60 TMT.
THE CAPACITY PROPOSED TO AUGUMENT IN JALPAIGURI, MALDA, NORTH PARGANAS OF CAPACITY 35, 30, 120 TMT RESPECTIVELY.THE TOTAL SAVINGS COMING UPTO BE1.62 CRORES.
WEST BENGAL
THE NEW PLANT PROPOSED IS IN AURANGABAD, CHAMPARAN & SUPAUL OF CAPACITY 40, 60, 45 TMT RESPECTIVELY.
THE CAPACITY AUGUMENTATION IS PROPOSED IN BEGUSARAI & PATNA OF CAPACITY 105, 15 TMT RESPECTIVELY.
THE TOTAL SAVINGS IS COMING OUT TO BE 9.79 CRORES RUPEES
BIHAR
THE NEW PLANT PROPOSED IS IN BOLANGIR & KORAPUT OF CAPACITY 15, 15 TMT RESPECTIVELY.
THE CAPACITY PROPOSED TO AUGUMENT IN JHUSUGUDA OF CAPACITY 15 TMT.THE TOTAL SAVINGS COMING OUT TO BE Rs 21.51 CRORES.
ORRISA
THE NEW PLANTS ARE PROPOSED IN DUMKA, KODARMA, LOHARDAGA OF CAPACITY 20, 15, 11 TMT RESPECTIVELY.
THE CAPACITY AUGUMENTATION NEEDED IS IN BOKARO OF 50 TMT.THE TOTAL SAVINGS IS COMING OUT TO BERs 6.75 CRORES.
JHARKHAND
THE NEW PLANTS ARE PROPOSED INBONGAIGOAN, NAGAON & SIBSAGAR OFCAPACITY 25, 30, 45 TMT RESPECTIVELY.
THE CAPACITY AUGUMENTATION IS PROPOSED IN KAMRUP, TINSUKIA OF CAPACITY 23,30 TMT RESPECTIVELY.
THE TOTAL SAVINGS COMING OUT TO BERs 10.8 CRORES.
ASSAM
THE NEW PLANT IS PROPOSED IN EAST KHASI HILLS OF 23 TMT.
THE TOTAL SAVINGS IS COMING OUT TO BE Rs 7.11 CRORES.
MEGHALAYA
THE EXISTING PLANTS OF TRIPURA, NAGALAND, ARUNACHAL PRADESH, MANIPUR, SIKKIM, ANDAMAN & NICOBAR IS PROPOSED TO AUGUMENT BY 15, 55, 11, 7, 7, 5 TMT RESPECTIVELY.
OTHER STATES
THE IN ALL TOTAL 66 NEW PLANTS ARE PROPOSED FOR THE YEAR 2016-2017.
THE NEW CAPACITY BY THE YEAR 2016-2017 IS NEEDED AS 3192 TMT.
THE TOTAL SAVINGS COMING OUT TO BERs 538.38 CRORES WITH AUGUMENTATIONCOST NOT TAKEN INTO CONSIDERATION.
CONCLUTION
TOTAL 66 NEW PLANTS ARE NEEDED FOR THE YEAR 2016-17 IN ORDER TO CATER THE DEMAND.
THE TOTAL SAVINGS ARE COMING UP TO Rs. 538 CRORES.
AUGUMENTATION OF EXISTING BOTTELING PLANTS ARE REQUIRED AS PER THE SUGGESTIONS GIVEN ABOVE.
THE NEW CAPACITY NEEDED FOR THE YEAR 2016-17 IS 4640 TMTPA
CONCLUTIONTHANK YOU
