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| Last Updated: April 30, 2009 |
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Another year passed into history as IndianOilPeople battled against odds to steer the organisation through challenging times on a path of growth and excellence. Starting out with a sustained rally in the prices of crude oil in the international markets, the year panned out with a catastrophic collapse of major financial markets across the world that drove the big fall in oil prices. From stratospheric levels of over USD 140 in June 2008, the Indian basket touched the fiscal’s lowest mark of USD 35.83 a barrel in December 2008. While our refining margins tumbled, because of lower crude prices the situation in terms of borrowings & liquidity improved.
Despite the turbulence, IndianOil significantly improved its physical performance on most of the operational indices. The refineries surpassed 100% capacity utilisation and clocked the highest ever crude oil throughout at 49.16 million tonnes. The pipelines breached the 10,000 km mark and registered throughput of 59.38 million tonnes of crude oil and petroleum products. Sales volume registered a growth of 5.5% and went up to 61.4 million tonnes, translating into a market share of 49.6%. IndianOil earned international recognition as a technology provider by bagging the coveted WPC Excellence Award at the World Petroleum Congress-2008. In addition to the Corporation expanding its footprint in business verticals such as E&P, petrochemicals, natural gas and bio-fuels, a major highlight of the year was its winning operatorship rights of two Type-S oil & gas blocks in Cambay basin under NELP-VII.
In a major showcase of domestic and international hydrocarbon business, IndianOil organised PETROTECH-2009 - the prestigious biennial oil & gas industry event - under the auspices of the Ministry of Petroleum & Natural Gas.
Intensive efforts at corporate restructuring and streamlining operations saw IndianOil obtain the approval of the Ministry of Corporate Affairs for the merger of M/s Bongaigaon Refinery & Petrochemicals Limited (BRPL) under Sec 391-394 of the Companies Act, 1956. The erstwhile BRPL is now a part of the Refineries Division of IndianOil. An MoU has been signed with the Government for the year 2009-10 with challenging and growth-oriented targets. New parameters such as corporate social responsibility initiatives, e-procurement and setting up of a network and infrastructure for polymer marketing have been added.
As IndianOil completes 50 glorious years in the service of the nation, its people remain dedicated to their singular commitment to fuelling prosperity by ensuring timely supplies to every nook and corner of the country.
IndianOil. Bringing Energy to Life…
Financial Performance
- The financial results for the year 2008-09 are under consolidation. However, for the nine months ended December 2008, the Corporation’s gross turnover moved up by 28% to Rs. 2,26,662 crore, from Rs. 1,77,223 crore in the corresponding period of the previous year. Yet IndianOil incurred a net loss of Rs. 3,673 crore during April-December 2008 as against a net profit of Rs. 7,377 crore for the same period of the previous year.
- As part of the Government-approved compensation mechanism for under-recoveries on the sale of the four major products (petrol, diesel, kerosene for public distribution and LPG for domestic use) for the year 2008-09, IndianOil has so far received Government of India’s Special Oil Bonds worth Rs. 34,165 crore, in addition to Rs. 18,059 crore received till December 2008 from upstream companies towards subsidy sharing.
- Unprecedented rise in crude oil prices and consequent under-recoveries on sale of four main products posed severe liquidity constraints during the year with borrowing levels shooting past Rs. 67,000 crore from Rs. 35,523 crore as on 31st March 2008. However, IndianOil could successfully manage to meet its domestic and foreign obligations by exploring a slew of measures such as:
- Fund Raising through Repo: IndianOil became the first Oil Marketing Company to enter into Repo deal on oil bonds. Under the Repo deal, funds were raised by leveraging the security of oil bonds thus enhancing their usability.
- In addition to establishing banking relationships with new banks and securing enhancement of lending limits of existing banks, the lenders’ base (i.e. other than bank finance) was diversified. About Rs. 4,500 crore was raised through Inter-Corporate Deposit and Rs. 20,000 crore through issuance of short term unsecured non-convertible debentures to Mutual Funds and insurance companies.A Commercial Paper of about Rs. 2,000 crore was issued during the year and long term funds of Rs. 3,100 crore were raised through issuance of bonds for tenures of 3/8/10 years.
- Liquidity position has further improved due to reduction in import bill led by falling crude oil prices and the liquidation of oil bonds of over Rs. 29,000 crore.
- During the year, funds of about Rs. 15,000 crore were tied up on long term basis from over 20 banks for the Paradip Refinery Project.
Refineries
- During the year 2008-09, the performance of IndianOil refineries surpassed the levels achieved earlier –
- 3.7% growth in crude oil processing over the previous year with the highest ever throughput of 49.16 million tonnes and 103% capacity utilisation.
- Lowest overall specific energy consumption of 64 MBTU/BBL/NRGF (MBN) achieved, as against 67 in 2007-08.
- Highest combined distillate yield of 74.6 wt% achieved, surpassing the previous best of 73.7 wt% in 2007-08.
- A record overall production of LPG, MS, SKO, HSD, Microcrystalline wax and Paraffin was achieved during the year. Five refineries achieved their highest levels of crude oil throughput during the year:
Figs in TMT
| Refinery |
2008-09 |
Previous Best |
| Guwahati |
1075.7 |
1002 (2004-05) |
| Barauni |
5940 |
5634 (2007-08) |
| Koyali |
13852 |
13714 (2007-08) |
| Haldia |
6042.1 |
5836 (2006-07) |
| Panipat |
13069.7 |
12821 (2007-08) |
- The year saw consolidation in stream sharing between refineries for better optimisation, capacity utilisation, value addition and enhanced margins. Important steps included transfer of Straight Run Gas Oil from Koyali to Panipat and Mathura and from Haldia to Barauni; Reformate transfer from Koyali to Guwahati and Mathura, PX Naphtha transfer from Mathura to Panipat, Benzene transfer from Panipat to Koyali, etc.
- During the year, the Process Design Engineering Cell took several initiatives such as capacity revamp by 40% of Naphtha Splitter Unit of Mathura Refinery, de-bottlenecking of Amine treating & regeneration system of Guwahati Refinery, development of a new process to enhance recovery of H2S from conventional sour water strippers, etc.
- New projects worth almost Rs. 32,000 crore were approved during the year. These included a state-of-the-art refinery at Paradip (Rs. 29,777 crore), Motor Spirit Quality Improvement projects at Barauni (Rs. 1492 crore), Guwahati (Rs. 372 crore) and Digboi (Rs. 356 crore) refineries.
- Two more Clean Development Mechanism (CDM) projects - AVU Energy Optimisation project at Digboi and Flare Gas Recovery Project at Haldia - were registered with UNFCCC (United National Framework Convention on Climate Change) during the year. CDM allows emission reduction projects in developing countries to earn certified emission reduction (CER) credits, each equivalent to one tonne of CO2. These CERs can be traded and sold, and are used by industrialised countries to meet a part of their emission reduction targets under the Kyoto Protocol. This was in addition to the energy audits and conservation initiatives undertaken at the refineries that yielded savings of 67,800 SRFT (Standard Refinery Fuel Tonne) per year (both long and short term) and a potential savings of 1,28,000 SRFT per year.
Pipelines
Marketing
- IndianOil clocked sales of over 61.4 million tonnes of products during the year 2008-09, registering a growth of 5.5% over the previous year. The overall product market share stood at 49.6%, reflecting a 0.7% increase over the previous year.
- During the year, availability of branded fuels was expanded for customer convenience. Currently, XTRAPREMIUM is available at 6446 retail outlets and XTRAMILE at 9256 retail outlets. The reach of AutoGas was extended to 107 cities.
- The usage of XTRAPOWER in value terms grew by 24% during the year to Rs.12,152 crore as against Rs. 9,814 crore registered in 2007-08. At present, 5,849 retail outlets have XTRAPOWER fleet card transactions.
- In a pioneering initiative to reach out to customers, a web-based Customer Grievance Redressal system – eCFS - was launched to ensure speedy redressal of customer complaints and queries. An all-India toll free number - 1800 2333 555 - was also introduced for use of the customer.
Marketing Infrastructure
| Parameter |
Parameter
during the year |
Total network
as on 31.03.09 |
| Retail Outlets (Regular+KSKs) |
743 |
18277 |
| KSKs |
495 |
2545 |
| ROs with CNG dispensers |
11 |
89 |
| Automated ROs |
182 |
1220 |
| XTRACARE ROs |
101 |
2101 |
| LPG connections |
26 lakh |
530 lakh |
| LPG Distributorships |
18 |
4998 |
| AutoLPG Dispensing Stations |
66 |
223 |
| Crumb Rubber Modified |
1 |
4 |
| Bitumen (CRMB) plant |
(at Koyali and Haldia) |
(incl. at Panipat, Mathura) |
- In consumer sales, IndianOil maintained its market dominance with an overall volume growth of 2.1%. Sales volume of over 20 million tonnes translated into growth in market share by 0.5%.
- During the year, IndianOil continued to consolidate marketing infrastructure across the country. 183 Consumer Pumps were commissioned. A new terminal was commissioned at Hyderabad (Cherlapally) and three LPG Pipelines were commissioned, viz. Panipat-Nabha-Jalandhar (700 TMTPA), Vijaipur–Guna (65 TMTPA) and Gandhar (45TMTPA).
- During the year, SERVO lube network was also expanded to 210 auto stockists, 72 industrial stockists, nine marine stockists and 26 CFAs. IndianOil’s market share in the finished lubes segment grew by 2.3%.
- SERVO lubricants were formally launched in Oman and exports commenced to IOC Middle East FZE and Toyota, Oman.
- In an innovative breakthrough, manufacturing and blending of a multifunctional additive for XTRAMILE commenced as an import substitute at Taloja resulting in savings of about Rs. 6.4 crore.
- Despite a drop in overall ATF volumes due to the downturn in the aviation business during the year, IndianOil continued to be the market leader with growth in market share from 62.5% in the previous year to 63.3% in the year 2008-09. Several new businesses of international airlines were garnered during the year.
- IndianOil partnered Indian Railways in commissioning a new railway diesel installation at Budgam, Srinagar with 540 kl tankage and allied facilities to serve the first rail route in the Kashmir valley between Baramulla and Budgam.
Research & Development
- The year marked IndianOil’s forays into new areas of research such as Petrochemicals, Polymers and Nanotechnology, while at the same time consolidating R&D strengths in core areas of lubricant and refining technologies and catalyst development. Out of the 10 patents filed during the year, nine received approvals.
- Emphasis on developing and deploying cost-effective green technologies continued during the year with the development of a Co-solvent technology to improve yield while processing LOBS feedstock for extraction of aromatics, and a technology based on hydrotreatment for production of ATF.
- Research resulted in annual savings of Rs. 2 crore due to reduction in catalyst loss from 640 kg to 225 kg/day in the Indmax Unit at Guwahati Refinery. During the year, FCCMOD simulator was licenced to M/s. Intercat, yielding a revenue of USD 14590. The in-house developed Ultra iMax additive for enhancement of LPG yield was selected by CPCL for deployment and generated a royalty of Rs. 20 lakh.
- Continuing the tradition of leadership in lubricants formulation, 186 formulations were developed during the year, of which 153 were commercialised. 47 approvals were also received from Original Equipment Manufacturers.
- As part of continuing efforts to roll out Hydrogen economy in the country, IndianOil set up the nation’s first commercial Hydrogen-CNG dispensing station at Dwarka, Delhi. Further trials on H-CNG blends with different compositions are on.
- In order to explore sources of production of bio-fuels, research programmes were taken up on bio-Hydrogen, algal fuels and lignocellulosic ethanol.
- In a bid to provide effective R&D support to IndianOil’s growing petrochemicals business, exploratory studies were conducted on polymeric film blends and nano-composites.
- IndianOil’s R&D subsidiary – IndianOil Technologies Ltd. (ITL) – signed an MoU with the Kuwait Institute of Scientific Research for collaborative R&D.
International Trade & Shipping
- During the year, IndianOil entered into term contracts with Angola and Brunei for import of low sulphur crude oil. Over 95% of the LPG imports were finalised through term contracts.
- During the year, a record quantity of 47.8 million tonnes of imported crude oil was lifted for processing as against 46.11 million tonnes imported last year. Nine new grades of crude oil were processed during 2008-09: Plutonio (Origin: Angola), Kikeh (Malaysia), Rabi Light (Gabon), N’Kossa (Congo), Saxi (Angola), Yoho (Nigera), Hungo (Angola), Mesla (Libya) and Ras Gharib (Egypt).
- In a major breakthrough, approval of the Reserve Bank of India was obtained for hedging of anticipated import of crude oil, indigenous crude oil and hedging of domestic product sales.
- IndianOil also exported 1849 TMT of products such as Naphtha, Motor Spirit, Furnace Oil, Bitumen and Paraxylene during the year.
- Two Suez Max vessels were taken on time charter basis for tonnage security after ensuring that market fluctuations do not have much impact on shipping cost. Through planning and effective coordination with suppliers & ports and suppliers & disports, TC Suez Max vessels are being efficiently utilised while ensuring that there is no waiting for these vessels either at load port or disport.
HR Initiatives
- During the year, a massive organisationwide exercise was undertaken to revisit IndianOil’s vision.
50 workshops involving about 1500 IndianOilPeople of all levels took part in evolving a new ‘shared vision’, rather than a vision shared. The revised vision statement was cleared in principle by the Board in its meeting of 27th March, 2009.
- IndianOil recruited 952 engineering & management graduates and CAs through open and campus recruitment in 2008-09.
- To meet the requirement of new businesses such as Petrochemicals and Bio-fuels, some mid-level recruitments were also done during the year.
- In pursuance of the best practices of Corporate Governance and to ensure greater transparency in the Corporation’s functioning, a ‘Whistle Blower Policy’ was framed and a procedure formulated for persons to bring to the attention of the Corporation incidents of improper activities without fear of victimisation.
- In a string of employee welfare measures, the sum assured admissible under the Employees Deposit Linked Insurance Scheme (EDLI) from LIC has been revised w.e.f. 1st April 2008, from the previous sum assured of Rs. 62,000 to Rs. 1,25,000. In addition, the Management has approved ‘Child Adoption Leave’ of 135 days for women employees who adopt a child in order to facilitate them to take care of the adopted child.
- An MOU was signed with the recognised unions in July ’08 on revision of their work-related allowances.
- A Corporate Sustainability Report 2007-08 was prepared conforming to the Global Reporting Initiatives (GRI) – G3 guidelines covering Economic (Profit), Social (People) & Environment (Planet) parameters in a triple bottom line approach.
- The ceiling on annual expenditure for various CSR activities has been enhanced from 0.75% of the net profit of the previous year to 2% of the retained profit of the previous year.
- During the year, IiPM conducted 81 training programmes, recording the highest ever 24,151 training mandays. For the first time, IiPM also conducted 10 Corporate Induction modules for 656 newly recruited executives.
- In line with the theme of 2008-09 programmes, ‘Developing Leaders for Global Competencies’, IiPM conducted 6 long duration programmes (4 Cutting Edge and 2 Threshold programmes) in addition to two hybrid certificate programmes on Project Management, rolling out 101 certified Project Managers during the year.
IS and OPTIMISATION
- During the year, the Transport Scheduling (Tx) Package developed by the Optimisation Group was successfully implemented at Marketing Division. The software automatically generates rail indents keeping in view product availability at the refineries, pumping plan through the various pipelines, current sales trend, etc., and ensures cost reduction through maintenance of minimal inventory levels.
- Optimisation models continued to be utilised during the year to facilitate decision making, e.g., evaluation of major investments in refineries, pipelines & infrastructure, purchases of optimal crude-oils, finalisation of term contracts for imports and exports, demand forecasting, supply chain planning & scheduling and refinery fence feedback systems, etc. Today, SAP R/3 (ERP solution) offers an integrated environment for transaction processing across all business functional areas.
- In a noteworthy achievement, the centralised computing and communication infrastructure at Gurgaon designed to provide high availability non-interruptive access to the business across India resulted in 100% uptime of business applications.
- In an important recognition of the adoption and practice of efficient and effective processes and procedures for SAP software support and services, the Business Continuity Centre at Jaipur has been certified to BS-25999 for Business Continuity Management services for SAP application and data network operations.
- In an endorsement of IndianOil’s domain expertise in SAP applications, several SAP implementation / consultancy projects came through during the year, such as CPCL and Sri Lanka oil industry consisting of Ceylon Petroleum Corporation Limited, Ceylon Petroleum Storage Terminals Ltd. and LIOC Ltd. This was in addition to the prestigious B2B Oil Exchanges, an initiative pioneered by IndianOil to leverage the expertise of India’s three largest SAP software using organisations – IndianOil, BPCL and ONGC.
Safety, Health & Environment
- To curb safety-related incidents and enhance awareness levels, audio-visual films were produced on various topics such as working at height, use of respiratory equipment and use & maintenance of fire fighting equipment & appliances as well as learnings from incidents in LPG bottling plants.
- Training was conducted during the year on personal protection equipment, scaffold safety, job safety analysis, etc.
- The Corporate Occupational Health Manual was updated in December 2008.
- In a major greening initiative, about 15,500 tonnes of oily sludge was liquidated during the year from refineries. Over 40 marketing locations set up rainwater harvesting systems.
Business Development
A. Integration Initiatives
- Exploration & Production
- IndianOil was awarded 100% participating interest and operatorship of two Type-S blocks in Cambay Basin in the seventh round of NELP. This was in addition to the deepwater block in the KG basin with 20% participating interest awarded to the consortium of IndianOil, ONGC and GSPC.
- Production Sharing Agreements were signed for Blocks 82 & 83 in Yemen (awarded earlier) and approved by the Yemeni Parliament. IndianOil holds 15% participating interest in each block along with other partners, viz., Medco Energi, Kuwait Energy and OIL.
- An Exploration & Production Sharing Agreement was signed for onland exploration of Areas 95-96 in Libya (awarded earlier) and ratified by the General People’s Committee of Libya. IndianOil holds 25% participating interest in the block along with other partners, viz., Sonatrach and OIL.
- During the year, the National Iranian Oil Company conveyed its acceptance of commerciality of the gas discovery in Farsi block (awarded earlier) in which IndianOil holds 40% participating interest along with other partners, viz., OVL and OIL.
- IndianOil entered into a farm-in agreement with Reliance E&P DMCC for 12.5% participating interest in the deepwater Block-K in Timor-Leste, and obtained approval of the assignment from the Government of Timor-Leste. OIL also farmed-in for 12.5% participating interest.
- Petrochemicals
- During the year, IndianOil consolidated its LAB business as a major supplier to key national and international players in the detergent industry. IOCLAB sale (domestic and exports) during the year is likely to exceed 1,26,000 tonnes despite market downturn and shortage of raw material.
- The PTA business was also expanded to cater to all major domestic customers and is expected to surpass 4,05,000 tonnes. For the year 2008-09, revenue from the petrochemicals business is likely to cross Rs. 2,900 crore.
- Work on IndianOil’s biggest petrochemicals investment – the Rs. 14000 crore Naphtha Cracker and downstream polymer units – is underway at Panipat for commissioning by the year end. The Naphtha Cracker has a capacity of 8,57,000 tonnes per annum (TPA) of Ethylene and 6,00,000 TPA of Propylene. In addition to 3,25,000 TPA of Mono Ethylene Glycol and 1,40,000 TPA of Butadiene, the unit can also produce 6,50,000 TPA of Polyethylene and 6,00,000 TPA of Polypropylene. Intensive preparations are underway for these products.
- The IndianOil Board has given its in-principle approval for setting up a Styrene Butadiene Rubber plant as a joint venture at Panipat based on butadiene availability from the Panipat Naphtha Cracker complex.
- Under the aegis of MOP&NG, the India Di-Methyl Ether (DME) Chapter has been formed as part of the International DME Association (IDA). The India chapter is being chaired by Director (P&BD), IndianOil, who is also on the Board of IDA.
B. Diversification Initiatives
- Gas
- Out of its share of 30% regassified LNG from Petronet LNG Ltd. (PLL), IndianOil sold 1.85 million tonnes of gas and clocked a turnover of Rs. 2800 crore during the year. PLL has tied up a 2-year term contract with RasGas of Qatar for supply of 1.5 MMTPA of additional LNG. Of this, IndianOil’s share is 0.5 MMTPA and is pledged to Ratnagiri Gas and Power Project Ltd. till September 2009. To consolidate gas supplies, IndianOil has signed another contract with PLL for sourcing an additional 0.75 MMTPA of R-LNG from the third quarter of 2009.
- Most of the gas sale agreements with existing customers of R-LNG have been renewed for a periodicity of five, 10 and 20 years on the basis of pooled pricing that will vary on a monthly basis.
- Green Gas Ltd. – a JV of IndianOil and GAIL for city gas distribution (CGD) – has commissioned one mother station each in Agra and Lucknow and three daughter booster stations in Lucknow and two in Agra. During the period Apr-Dec. ’08, gas sales in Lucknow and Agra were 19,809 tonnes and 14,018 tonnes respectively.
- To consolidate the CGD business, the Corporation has signed MoUs with several players, which include:
- Adani Energy Ltd. for setting up a joint venture to undertake CGD in select markets of Haryana, Punjab, Rajasthan and Uttar Pradesh.
- Reliance Gas Corporation Ltd. to jointly undertake CGD in Maharashtra, Karnataka, Kerala, Pondicherry and Tamil Nadu.
- OIL to pursue activities such as purchase of gas for Guwahati Refinery, marketing in the Northeast region, CGD projects in various parts of the country and joint development of pipelines from OIL’s gas assets in the KG Basin.
- ONGC for tying up gas from marginal fields / Coal Bed Methane blocks to set up small liquefaction plants and jointly market gas from these fields.
- IndianOil has entered into franchise agreements with CGD players such as Indraprastha Gas Ltd., Mahanagar Gas Ltd., Adani Energy Limited, GEECL, SITI Energy and GSPC Gas Ltd. to sell CNG through its retail outlets.
LNG at the Doorstep
- IndianOil’s “LNG at the Doorstep” initiative gained further ground during the second year. Two customers - H&R Johnson located at Pen, Maharashtra and Schott Glass at Jambusar, Koyali – were supplied over 15,000 tonnes of R-LNG through cryogenic road tankers and regassification done on-site.
- In view of better demand for this proposition, IndianOil has signed a contract with PLL for increasing LNG loading at Dahej from the existing 12,000 tonnes to 20,540 tonnes.
- Bio-fuels
- The year marked IndianOil going full throttle into the total bio-diesel value chain with the formation of a joint venture with the Chhattisgarh Renewable Development Authority (CREDA). IndianOil and CREDA hold 74% and 26% equity in IndianOil CREDA Biofuels Ltd. formed for carrying out farming, cultivating, manufacturing, production and sale of biomass, bio-fuels and allied products and services.
- A pilot project of jatropha plantation on 600 hectares of revenue wasteland is on in Jhabua district in Madhya Pradesh to ascertain the feasibility of revenue land-based commercial biodiesel units and to develop benchmarks for plantation costs and output. Plantation of eight lakh saplings will commence in the month of June 2009.
- An MoU has been signed with M/s Ruchi Soya Industries Ltd. to take up contract farming on 1 lakh hectare of private and panchayat wasteland in the state of Uttar Pradesh. A detailed project report is under preparation by M/s Ernst & Young to assess the sustainability of the project.
- Other Diversification Initiatives
- IndianOil has entered into a joint venture with Tata Power to set up a coal-based captive power plant at Naraj Marthapur in Orissa. The JV – Paradip Power Co. Ltd. – will supply up to 51% of the power generated to IndianOil’s upcoming Paradip Refinery and the balance would be available for sale to other customers. IndianOil has already applied to the Ministry of Coal seeking coal linkage for the project, which is currently being examined by the Central Electricity Authority.
- IndianOiI also made forays into wind energy business with the commissioning of a 21 MW wind power project in the Kutch district of Gujarat. The cumulative power generation from the 14 wind turbine generators has touched 74 lakh units during the year.
- IndianOil commissioned pilot solar lantern charging stations at its Kisan Seva Kendra at Sathla near Meerut and Chokoni near Bareilly. Plans have also been drawn to sell solar appliances and set up solar lantern charging stations in other States as part of non-fuel retail business.
C. Globalisation Initiatives
- Consultancy
- As part of overseas consultancy, the technical services agreement and manpower secondment agreement with the Emirates National Oil Company (ENOC), Dubai, were extended for the 12th and 11th consecutive years respectively.
- Four IndianOil engineers were deputed to Kenya through Petroleum India International for consultancy jobs at the Kenya Pipeline Company. Two engineers of Aden Refinery were trained on RFCC Unit at Haldia Refinery.
- Overseas Business
- IndianOil (Mauritius) Ltd. (IOML)
- During the year 2008-09, IOML’s market share went up to 21.5% from around 19% in the previous fiscal. Sales grew by almost 12% - to 218,000 kl from 195,000 kl in the previous year.
- IOML continued to maintain its numero uno position in the aviation sector with about 33% market share. Air France Jet 1 supply contract for 100% volume was successfully renewed for another one year.
- Amongst the business segments, the maximum growth has been recorded by bunkering. While fuel oil bunkering grew by 60%, gas oil bunkering recorded a growth of 59% during the period. Sale of lubricants grew by 47% clocking a volume of 219 kl in comparison to 149 kl in the last fiscal.
- Exclusive pipelines were laid from IOML’s terminal to the Mauritius Container Terminal at a cost of approx. Mauritian Rs. 20 Million to facilitate bunkering.
- With the commissioning of four filling stations this year, the total number of ROs has gone up to 17. Out of these, 4 filling stations are located on the island’s prestigious motorway (M2) and are considered as landmarks.
- Lanka IOC Plc (LIOC)
- In a thumping recognition of its growing footprint in Sri Lanka, LIOC has been ranked No. 1 among Sri Lanka’s leading listed companies for the financial year 2007-08 by the nation’s leading business magazine - Lanka Monthly Digest .
- LIOC achieved a market share of about 25% in a highly competitive bunker market, catering to all types of bunker fuels and lubricants at all ports of Sri Lanka, viz., Colombo, Trincomalee & Galle.
- LIOC has recently signed an agreement with Sri Lanka Air Force for supply of various grades of lubricants and greases for the year 2009-10. With this agreement, it has become the major supplier of lubricants and greases to the three arms of the Defence services of Sri Lanka.
- LIOC’s market share of petrol increased from 20.2% in the year 2007 to 24.8% in 2008. The overall market share too marginally increased from 9.8% to 9.9%.
- For synergy in corporate branding with that of IndianOil, LIOC has replaced the old rainbow fascia at its retail outlets with a brand new fascia in corporate colours. The branded fuels have also been rechristened as in India.
- Sri Lanka’s newest bowling sensation Ajantha Mendis has been signed as the Brand Ambassador for LIOC’s brand promotions.
- To tide over liquidity issues in times of recession, LIOC successfully negotiated long-term overseas funding facility from ICICI Bank, Singapore (US$ 50 million) and Citibank, Bahrain (US$ 20 million).
- IndianOil Middle-East FZE (IOME)
- IOME achieved financial break-even in the year 2007-08 and is likely to record a profit after tax of Rs. 2.11 crore on a turnover of Rs. 50 crore.
- SERVO lubricants were formally launched in Oman during the year.
- During 2008-09, 107 flexi tanks of base oil were supplied as compared to 25 in the previous year. Finished lubes were exported to Oman, Qatar, Yemen, Bahrain, UAE and Nepal.
- 80 drums each of engine oil and gear oil were supplied for the service network of TOYOTA vehicles in Oman.
- During the year, various business possibilities were explored such as marketing of marine lubricants from the port of Fujairah, setting up of bulk tankages at the distributor’s / consumers’ end, setting up of lube blending facilities in UAE on partnership basis, etc.
Awards & Recognitions
- IndianOil yet again clinched the top slot among the seven Indian companies featured in the ‘Global 500’ listing of the world’s largest companies for 2008 released by the US business magazine, Fortune, improving its ranking to 116.
- IndianOil was the only petroleum company among 100 other industrial giants to emerge as ‘The Most Trusted Fuel Pump Brand’ in ET’s Brand Equity annual survey for the year 2008. Among the ‘Top 50 Service Brands’ of the country, it bagged the 7th position.
- IndianOil received the coveted World Petroleum Congress Excellence Award 2008 at Madrid, Spain, in the technical development category for its path-breaking R&D work in hydroprocessing technology for Green Fuels.
- IndianOil won the SCOPE Gold Trophy for Environmental Excellence & Sustainable Development and Commendation Certificate for Good Corporate Governance for the year 2007-08.
- IndianOil continued to top the annual corporate listings of leading business publications such as the Economic Times, Business India and BusinessWorld in addition to topping the Oil & Gas category in the Financial Express-500 listing.
- IndianOil has been ranked as one of Best Employers in a survey conducted by Hewitt Associates in association with Outlook Business magazine.
- IndianOil bagged the prestigious BML Munjal Award for Excellence in Learning and Development for the year 2009 and was the only award winner in the public sector category.
- In recognition of its operational excellence and business solutions, IndianOil received a string of prestigious awards - SAP ACE AWARD (for Customer Excellence) for the year 2008 from SAP AG for B2B application for oil Exchanges between IndianOil and BPCL SAP systems, Economics Times Smart Workplace Award for Corporate Business Technology Centre (that recognises companies using technology to enhance productivity at the work place) and CIO 100 Award for Innovations in Implementing Business Continuity for SAP R/3 Environment (for the third consecutive year).
- IndianOil received the ‘Oil & Gas Supply Chain Excellence’ award at the Second Express, Logistics & Supply Chain Conclave (Asia-Pacific) organised by India Times Mindscape with Business India group.
- Indian Express Uptime Champion Award 2008 was conferred on IndianOil’s Corporate Business Technology Centre in recognition of its well designed IT infrastructure uptime strategy.
- In recognition of its Kisan Seva Kendra initiative in rural markets, IndianOil received the prestigious ‘Most Admired Retailer of the Year - Rural Retailing’ award at the India Retail Forum held in Mumbai.
- For the fourth consecutive year, IndianOil was conferred the Safety Innovation Award instituted by the Safety & Quality Forum of the Institution of Engineers (India).
- IndianOil has been conferred the ‘Business Superbrand 2008’ status by the Superbrands Council of India.
- IiPM won the ISTD Training Award 2007-08 for innovative training practices.
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