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Tag: indian oil corporation limited

  • Oil & Gas Industry in India 2022: Market Size, Key Players, Recent Plans

    The Oil and Gas Industry has been playing a vital role in the development of the Indian Economy as well as being a crucial sector among the eight core industries in India. Apart from the agricultural, Automobile, Chemical, and other major industry sectors, the oil & gas industry lobbying an impact on the Indian economy since its commencement.

    Back in time, people considered petroleum, gas, oil, diamonds, gold, and other high-priced metals, as a source of income in trading them. Moreover, India stands as the 3rd Largest consumer of oil in the world and fourth place as the biggest refiner in the world.

    The industry accomplishes every task that they have planned to do before the deadline, and ultimately became an on-demand energy industry globally. Whereas, India was the second top net crude oil products importer as of 2019. Regardless, the industry is also planning to enhance as much as an investment to result in the top oil & gas industry in the world.

    The journey began in 1889, when India discovered the first oil deposits and gas fields in the town of Digboi, Assam. Later, India magnified the natural gas and oil industry in the 1960s and dilated the services to a pinnacle industry, and eventually bolstered the economy as a prominent industry in India.

    The Oil and Gas Industry in India built reserves & Petrol stations etc. Besides, it cast the Indian economy in good terms of Imports, trading, refining, consumption, distribution, and foreign trade.

    Classification of Oil & Gas Industry in India
    Market size of Oil & Gas Industry in India
    Recent plans of the Oil & Gas Industry in 2022
    Key Players to Look Out for in the Oil & Gas Industry in India

    Classification of Oil & Gas Industry in India

    The oil and gas industries are further breakdown into three distinct parts. These parts are named Upstream companies, Midstream companies, and Downstream companies. The basic details about all the three companies are given below.

    Classification of the Oil and Gas industry into three different companies
    Classification of the Oil and Gas industry into three different companies

    Upstream Companies:

    The Oil and Gas Industry in India looks for dormant underground crude oil or natural gas by penetrating exploratory wells and extracting the resource to the surface. Notable Oil and Gas Industry in India Upstream attributes to the exploration and production sector.

    Midstream Companies:

    On the other hand, those extracted resources are meant to process, stored, marketed, and traded as exports. Therefore, Midstream companies function as a connection between the production area and the ultimate consumer location (marketplace).

    Downstream Companies:

    The third category of the Oil & Gas industry operates the part of oil refineries, petroleum products distributors, planters of petrol chemical stations, and retail outlets of natural gas.

    Market size of Oil & Gas Industry in India

    The Indian Oil & Gas industry became the third-largest consumer of oil in 2021 and planning to accomplish the position of the largest contributor to non-OECD petroleum consumption thrive.

    As mentioned above, India attains as one of the topmost crude oil production abreast importers in the world. In recent times, a provisional refinery has been installed on the concurred of Government to burgeon as the Largest Domestic refiner at a worth of crude processing capacity of 1.24 million Barrels Per Stream Day (BPSD).

    Last year the world faced a down economy because of the ongoing pandemic. According to the reports for the Financial year 2021, the industry faced a drawback in the exports of petroleum products which are estimated to fall from 65.7 to 56.8 MMT. However, with the change in the world stability, crude oil imports were recorded to rise sharply with the worth US $94.3 billion in FY 2022.

    Export of Petroleum Products from India (MMT)
    Export of Petroleum Products from India (MMT)

    Nevertheless, still, the oil & gas industry in India showed a spiked percentage of 3.7% in the consumption of petroleum products which is comparable to the financial year 2019. In 2020, the Gas Authority of India Ltd. held the largest share of the country’s natural gas pipeline network.

    For the year 2021, the industry anticipates enticing US corporations to invest around 25 billion dollars in Upstream companies by 2022. Additionally, the Oil & Gas industry in India showed a reduction in crude oil production which stood at 30.5 MMT for FY21, analogous to the 32.2 MMT in FY20.

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    Recent plans of the Oil & Gas Industry in 2022

    The major plans and schemes for the Oil and Gas Industry can be seen in the Union Budget. The government has allocated funds worth INR 12,480 crores for direct benefit transfer of LPG and INR 1078 crores for feedback subsidy to BPCL / AssamGas Cracker Complex in the year 2021.

    Prime minister Narendra Modi in February 2021, declared that INR 7.5 trillion will be invested by the Indian Government in improving Oil and Gas Infrastructure in the upcoming five years.

    An LNG (Liquified Natural Gas) policy draft was published by the petroleum and Natural gas ministry and it aims at increasing the LNG regasification capacity of India.

    In February 2022, Mr. Hardeep Singh (the minister of petroleum and natural gas) was noted to announce that India will increase its oil and gas exploration area to 0.5 million sq. km by the year 2025. He was also noted to further clarify that the exploration area will be increased to 1 million sq. km by the year 2030. These changes will be applied to increase the domestic output from the oil and gas sector.

    Key Players to Look Out for in the Oil & Gas Industry in India

    There are not many players in the Oil and gas sector of India. Yet, amongst them all, the top players in the Oil and Gas Industry in India that have made their mark are:

    Key players for Oil and Gas industry in India
    Key players for Oil and Gas industry in India

    Reliance Industries Limited (RIL):

    Reliance Industries Limited trades in the research and analysis of Oil and Gas and production is also a key part of the business concern. Reliance Petroleum headquartered in Ahmedabad, Gujarat founded in 2008 falls under the petroleum and natural gas industry. It was merged with Reliance Industries Limited in 2009.

    Oil and Natural Gas Corporation (ONGC):

    Oil and Natural Gas Corporation is a government-owned corporation that handles in production and distribution of crude oil and natural gas in India. In India, ONGC is the largest company that produces and explores oil and gas reserves. The company is owned by the petroleum and natural gas ministry of India and was founded in 1956.

    Indian Oil Corporation Limited (IOCL):

    Indian Oil Corporation is a publicly owned conglomerate. It is a property that is in the possession of the petroleum and natural gas ministry, Government of India. It is headquartered in New Delhi and was founded in June 1959.

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    Conclusion

    India with its increasing population has increasing needs and this is true in the case of Oil and Gas procurement and usage in India. India is the third-largest consumer of Oil in the world. Petroleum products have the highest share of 14 percent in Indian exports.

    This points out that the Oil and Gas industry is one main source of revenue for the country and the increasing energy demands of the country can only signify the rapid growth of the Oil and Gas Industry in India in the future.

    FAQs

    Where is India’s largest oil field located?

    The largest oil field in India is Bombay high. It is known to be situated 161 km north of the Bombay coast in Mumbai, Maharashtra.

    What is the future of the oil and gas industry in India?

    The industry of oil and gas in India will be seen a decline in the use of biofuels, batteries, and hydrogen rather than consuming more non-renewable resources to fulfill the demand of citizens.

    Who produces gas in India?

    The major of the gas is produced in the Gujarat state of India. About 11% of gas is produced by Gujarat and the remaining is made by a bunch of states such as Andhra Pradesh, Assam, Tripura, Tamil Nadu, and Rajasthan.

    What is the GDP percentage for the oil and gas industry in India?

    The oil and gas industry is counted among the 8 core industries contributing to the Indian GDP. The oil and gas industry stands for 15% of the country’s Gross Domestic Product (GDP).

  • Marketing Strategy of Indian Oil Corporation Limited (IOCL)

    Indian Oil Corporation Limited or Indian Oil is one of the largest Indian government-owned Oil and Gas Companies. The company was founded in 1959 and is currently the largest commercial oil and petroleum enterprise in India. IOCL ranks 151st position in Fortune Global 500 list and 2nd in Fortune India 500 list for the year 2020.

    IOCL has so far been successful in meeting the fuel demands put up by the world’s second most populated country. Let’s see what they’re doing differently from their competitors to improve their brand image. In this article, we will try to shift the focus towards the marketing strategy of Indian Oil Corporation Limited.

    IOCL – Company Highlights

    Company Name Indian Oil Corporation Limited
    Headquarters New Delhi (headquarters), Mumbai (registered office)
    Industry Energy: Oil and gas
    Chairman Shrikant Madhav Vaidya
    Founded 1959
    Website iocl.com

    Overview of Indian Oil Corporation Limited (IOCL)
    IOCL Marketing Mix
    IOCL – Product Strategy
    IOCL – Pricing Strategy
    IOCL – Place & Distribution Strategy
    IOCL – Promotion Strategy
    IOCL – Conclusion
    IOCL – FAQs

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    Overview of Indian Oil Corporation Limited (IOCL)

    Indian Oil Corporation Limited was founded in 1959 and since then handled the responsibility of meeting the fuel demands of India. The company is under the control of the Government of India & the Ministry of Petroleum and Natural Gas. As of 2020, the oil and gas company earned a net profit of ₹43,242 crores (US$6.1 billion) in sales turnover among India’s most profitable state-owned companies.

    The company is an expert in the production of crude oil, natural gas, petrochemicals, refining, pipeline transportation and marketing of these products. The IOCL holds nearly 35% of national refining capacity together with its subsidiary Chennai Petroleum Corporation Limited (CPCL) and 65% downstream sector pipelines through capacity.

    All About Indian Oil Corporation Limited

    The Indian Oil Corporation is known to have over 33,500 employees along with its subsidiaries in countries like Sri Lanka, Mauritius, the UAE, Singapore, Sweden, the USA and the Netherlands. The company is currently setting up over 20 joint ventures with reputed business partners from India and abroad to explore global opportunities. Some of the International Indian oil corporation subsidiaries are Lanka IOC in Sri Lanka, IndianOil Mauritius, and the IOC Middle East FZE.

    In January 2021, IOCL overall sales were at an all-time high of 4,10,000 barrels of oil. Some of the main competitors of Indian Oil Corporation Limited are:

    • Hindustan Petroleum
    • Bharat Petroleum
    • Essar Oil & Shell
    • Reliance Industries
    • Mangalore Refinery and Petrochemicals Limited

    So how does a company like Indian Oil Corporation Limited markets its product effectively and efficiently that it beats all its competitors to scale up in the oil and gas sector? Let’s see their unique marketing strategies.

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    IOCL Marketing Mix

    The marketing mix usually refers to the set of actions, or tactics, that a company uses to promote its brand or product in a particular market. The marketing mix is the best business strategy of Indian Oil Corporation as it is centered around the product, price, place, promotion and nowadays also includes Packaging, Positioning, People and even Politics.

    The IOCL’s business model is based on the Indian Oil Corporation (IOCL) marketing mix that helps the brand to succeed. The marketing mix of Indian Oil Corporation also analyses and explains the marketing strategy for petroleum products. There are different types of marketing strategies such as product innovation, pricing approach, promotion planning, etc.

    The company’s marketing mix explains the importance of the product, pricing, advertising and distribution strategies used by the Indian Oil Corporation (IOCL). Indian Oil Corporation’s marketing strategy has so far successfully helped the company to position itself competitively in the market, and achieve its business goals and objectives effectively and efficiently. Let us start the Indian Oil Corporation’s (IOCL) Marketing Strategy & Mix to understand its product, pricing, advertising and distribution strategies.

    IOCL Product Strategy

    Indian Oil Corporation is one of the leading oil and gas companies not only in India but worldwide. Indian Oil Corporation is present across the hydrocarbon value chain and accounts for over half of the country’s petroleum products market. IOCL also has over 35% share in refining and 65% share in the downstream sector pipelines. Out of the total 23 Indian refineries, the company owns and operates 11 of them.

    Indian Oil Corporation’s product portfolio in its marketing mix includes Indane gas, Autogas, Natural gas, petrol, diesel, jet fuel, lubricants & greases, kerosene, industrial fuels, Bitumen, petrochemicals, crude oil and some other special products. While its other businesses include refineries, pipeline transportation, distribution & marketing and Research & Development.

    The company is also known for the popular brands under it, which are Indane LPG, SERVO Lubricants, Autogas LPG, XtraPremium Petrol, XtraMile Diesel and PROPEL petrochemicals. These brands have the added advantage of established customer awareness. The marketing strategy for petroleum products has made it possible for the company to become a leader in various sectors.

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    IOCL Pricing Strategy

    The IOCL pricing strategy runs on the idea of profit-making. In 2020, the profit of IOCL was estimated to be $6.1 billion. Since the Indian Oil Corporation is a government-owned company, some of the pricing decisions are made by the Central Government of India after considering the taxes and subsidies. The IOCL prices are different in different states and cities as geographical pricing mechanism is followed in its marketing mix.

    The prices are commonly divided on the basis of metro cities, state capitals and National Capital Region (NCR). The prices in each product category (2021) are:

    • Petrol prices vary between Rs.101.84 to Rs.130.23 per liter depending on location.
    • Diesel prices have crossed Rs.90 per liter in most major cities.
    • Autogas price ranges from Rs.55 to Rs.57.
    • ATF price ranges from Rs.59400 to Rs.74000 per KL for domestic airlines and $602-800 per KL for international airlines.
    • Indane Gas’s price range is between Rs.834-944 per 14.2 Kg Cylinder.

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    IOCL Place & Distribution Strategy

    Indian Oil Corporation Stock history
    Indian Oil Corporation Stock history 

    The IOCL’s marketing mix is based on its wide geographic presence, as it holds and controls 10 refineries (Paradip, Panipat, Mathura, Haldia, Gujarat, Barauni, Bongaigaon, Guwahati, etc) across the country. Besides that, the company also controls over 10,900 km of pipeline connecting to high-demand places, 132 Km of gas pipeline and 37,000+ customer touchpoints. The company also has its subsidiaries in countries like Sri Lanka, Mauritius and UAE.

    It also has 20 joint ventures with reputed firms in India and abroad; 25,000 diesel and petrol stations and also one outlet in the world highest point. IOCL also has 6000 LPG distribution stations, 6,218 bulk consumer pumps and 100 aviation fuel stations. Another interesting fact about IOCL is that it has more than 9,400 fully automated fuel stations situated in nearly 55 cities providing products and services to its customers.

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    IOCL Promotion Strategy

    Promotion is the most important part of Indian oil corporation limited as it led the company to become one of the most valued and trusted brands in India. IOCL realizes the impact of a good promotional plan, offers and periodic incentives to maintain its customer base. The promotion in IOCL includes advertising tools like hoardings, print advertisements and commercials on television in order to increase its brand visibility.

    Indian Oil Corporation limited marketing also includes loyalty programs like fleet cards where customers can earn points and during festive seasons some gifts would be given to consumers through a lucky draw.

    Since we have covered the 4Ps of the marketing mix, here are the other 3Ps to make it the 7Ps of the marketing mix of Indian Oil Corporation.

    People

    People play a vital role in the marketing mix of Indian oil marketing, as the company has around 33,000 employees that work in various business processes. The company recruits mainly through advertisements in newspapers and the company’s website. IOCL also spends a lot in training and development of its employees to develop their capabilities. The employees also hold equity of nearly 65 lakh shares in the company.

    Indian Oil Workplace Experiences

    Process

    The company deals in many business, distribution and people processes to serve customers and corporate clients. To remain profitable in a business, the processes used to run should be working at an optimal rate. IOCL has taken every measure to improve operational efficiency, as it maximizes the LPG extracts for a refinery that uses the INDMAX technology.

    Physical Evidence

    Indian Oil Corporation has its physical presence because of petrol pumps and gas stations not only in India but worldwide. The Indian oil logo is a saffron circle with the blue color outer ring and a blue color band in the middle of the circle with ‘Indian Oil’ written in the Devanagari script. It also has an iconic tagline known as ‘The Energy of India’ which is a rightful representation of the Company.

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    IOCL – Conclusion

    With over 10 refineries and pipelines network span of over 9,300 km, IOCL is the leader in the Indian market. IOCL is the 20th largest petroleum company in the world and also has a foothold in the international markets. With an excellent marketing mix, the company’s future looks bright.

    IOCL – FAQs

    What is Indian Oil Corporation Limited?

    Indian Oil Corporation Limited or Indian Oil is one of the largest Indian government-owned Oil and Gas Companies that cater to the fuel need of people across the world.

    Where is the headquarters of Indian Oil Corporation Limited?

    The headquarters of Indian Oil Corporation Ltd is New Delhi whereas its registered office is located in Mumbai, Maharashtra.

    What is the distribution channel of the Indian Oil Corporation?

    There are 20,575 retail outlets. IOCL has an outlet in the world’s highest point. The company also has 6000 LPG distribution stations, 6,218 bulk consumer pumps and nearly 100 aviation fuel stations.

    Who is the owner of the Indian Oil Corporation?

    Indian Oil Corporation is a government-owned company having its ownership under the Ministry of Petroleum and Natural Gas.

    Where is Indian Oil Corporation’s biggest refinery located?

    The Indian Oil Corporation’s biggest refinery is located in Jamnagar, Gujarat.

    What is the salary of Indian Oil Corporation employees?

    The gross salary of IOCL employees is between Rs.60,000 to Rs.1,80,000 depending on the post of the employee.