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| Performance Highlights (Marketing Division) |
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| Last Updated: June 17, 2010 |
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The financial year 2009-10 was yet another eventful and challenging year for IndianOil’s Marketing Division. As in the past, the 16,000-strong team turned in an excellent performance on all fronts, following it up with several customer-centric expansion and enhancement programmes. The Golden Jubilee celebrations, spread across all units, had large-scale participation of the Corporation’s valued customers, reseller fraternity, vendors, suppliers and other stakeholders.
The Marketing Division sold over 63.7 million tonnes of products during 2009-10.
IndianOil maintained its lead in the highly competitive bulk consumers segment, while the retail segment too registered a robust growth, with large increase in MS and HSD volumes. There was a similar, encouraging trend in the Kisan Seva Kendra outlets, which are now making handsome contribution to overall sales of the two major products.
Among the many customer-centric initiatives launched during the year, the ‘check-and-fill’ campaign at IndianOil retail outlets drew excellent response and appreciation from customers. As also introduction of an all-India toll-free number for customer feedback and SMS/IVRS facility for booking LPG refills.
Indane earned the coveted status of ‘Superbrand’ in 2009 and continued to grow in terms of volumes, reach and services. On the lines of KSK, Rajiv Gandhi Gramin LPG Vitarak Yojana was launched to penetrate rural markets. SERVO, IndianOil’s other Superbrand, retained its pre-eminence as the #1 lubricant in the country, backed by the best technical services expertise in the industry.
In spite of the continuing turbulence in the aviation industry for the second year, IndianOil Aviation consolidated its # 1 position, with gains in sales volumes and new business.
With infrastructure as the backbone of the countrywide marketing operations, the year 2009-10 saw large investments in new facilities and expansion of existing ones, despite financial constraints. The emphasis was on covering the extra mile, to reach products and services closer to customers.
Changeover to quality-upgraded BS-III and BS-IV transportation fuels was a major logistics challenge and several teams have been working overtime to meet the stipulated deadline. The Central Laboratory at Sewree was adjudged as among the leading international laboratories in Europe, Asia and Africa, under the AFLS Correlation Programme conducted by Air BP, UK.
Retail sales
The following network expansion was undertaken during the year:
| Parameter |
Numbers added during 2009-10
|
Cumulative numbers as on 31st March, 2010 |
| Regular retail outlets |
200 |
15795 |
| Kisan Seva Kendra (KSK) |
375 |
2920 |
|
Total |
575 |
18715 |
|
ROs with Autogas (LPG) dispensing stations |
41 |
264 |
|
ROs with CNG dispensing stations |
6 |
95 |
|
Automated ROs |
243 |
1476 |
|
XTRACARE ROs |
3 |
2024 |
- Over 65% of retail outlet commissionings were of Kisan Seva Kendra (KSK) in rural areas; sales through KSK registered a growth of 62% in MS (Retail) and 40% in HSD; their contribution to overall sales rose to 5.1% in MS and 6.8% in HSD
- Maintained lead in market share of branded fuels; XTRAPREMIUM market share reached 56% & XTRAMILE 63%
- XTRAPOWER fleet card usage grew by 21.2%; new XTRAPOWER Easy Fuel card launched as a pre-paid gift card, with added advantages, especially for corporate customers
- MoU signed with major tele-infra companies, viz., Bharti Infratel, IndusTower & Aircel, for supply of HSD through XTRAPOWER card
- Database marketing commenced for the first time, with TATA AIG Life Insurance Ltd., whereby IndianOil would earn revenue from sending partner’s messages to XTRAREWARDS customers
- Non-fuel revenue grew by 78% over the previous year; a record 120 ATMs were commissioned during the year
- First ‘Top-Up’ C-Store (convenience store) inaugurated at M/s. Nineteenth Hole Service Station, New Delhi, in association with M/s. Godfrey Phillip India Pvt. Ltd. under non-fuel retail initiatives
- Over seven lakh customers participated in the all-India ‘check & fill’ campaign launched in Nov. 2009
- Insurance scheme launched for petrol pump attendants on all-India basis through MoU with United India Insurance Co. Ltd.; over a lakh pump attendants from 11,000 retail outlets enrolled in the scheme
- All-India ‘Car-in-a-tank’ sales promotion campaign for branded fuels – XTRAPREMIUM, XTRAMILE and Autogas – with mega prizes attracted a record number of 15.3 lakh entries through SMS over a three-month span
The various retail initiatives bagged the following awards:
- Reader's Digest Trusted Brand Gold Award – Petrol Station category for the third year in a row
- ‘Most Admired Rural Retailer’ at the India Retail Forum and ‘Retailer of the Year - Rural Impact’ at Asia Retail Congress for Kisan Seva Kendra rural initiative, both for the third consecutive year
- Customer & Brand Loyalty Award in the Oil & Gas category at the 3rd Loyalty Summit, scoring a hat-trick
Consumer sales
- Rate contract secured from Indian Navy and Coast Guard for 100% supply of primary fuels for a period of three years from Nov. 2009
- Proactive efforts for business expansion resulted in commissioning of 209 new consumer pumps
- All-India MoUs signed with major business groups, viz., Tatas, Aditya Birla, Vedanta, Jaypee, etc., for their annual requirement of furnace oil
- Entered into long-term agreement/understanding with major customers for new road projects: Soma Enterprises, GMR infra, DSC Ltd., Progressive Constructions, Shell India Marketing, Pink City Express, Isolux Corsam, etc.
- Introduced viscosity-grade bitumen from July 2009 ex-all IndianOil refineries
LPG
- About 40.5 lakh new LPG customers enrolled during the year, raising the total customer strength to 568 lakhs
- About 27 lakh double-bottle connections (DBC) released to existing as well as new customers, thereby taking the DBC customer strength to 287 lakhs (50.5% of Indane customers)
- A 44 TMTPA capacity LPG bottling plant commissioned at Baroda; with this, the number of LPG plants has gone up to 87, besides two terminals. Ten more locations have been identified for setting up new plants
- Bottling capacities augmented at Devanagonthi, Kochi and Sarpara (Guwahati) plants during the year
- 103 mechanical carousels at 87 LPG plants replaced/converted to electronic carousels for improved efficiency and accuracy in filling operations
- 90 new LPG distributorships commissioned, raising their total to 5,076; Rajiv Gandhi Gramin LPG Vitarak Yojana launched to extend the reach of LPG down to the level of villages
- New customer convenience for refill booking through SMS launched at Delhi and Kochi, to be extended to 10 more cities soon
- Improvements in hospitality materialisation and bulk logistics resulted in savings of about Rs. 10 crore
- Market leadership maintained in Auto LPG; over 40 auto-LPG dispensing stations were commissioned, taking their total to 263 and reach to 141 cities
- Exclusive channel partners/ retailers being appointed to further improve NDNE (non-domestic, non-essential) packed LPG sale
|
|
Sales
|
Growth
|
|
|
2008-09 |
2009-10 |
% |
| Bulk LPG sales (TMT) |
56.5 |
74.5 |
35.0 |
|
NDNE packed LPG (MT) |
254.7 |
328 |
28.8 |
|
|
|
|
|
- Non-fuel revenue of Rs. 49 crore generated as against Rs. 31.7 crore in the previous year; a dedicated portal was launched to facilitate placement of indents for non-fuel products by the distributors
- First in-house plant for statutory testing and painting of LPG cylinders commissioned at Ujjain bottling plant
Lubes
- Sales growth of 9.8% achieved in finished lubes and 18.4% in finished lubes+LOBS
- Futura P and Futura D introduced as high-performance motor oils for high-end petrol and diesel cars and SUVs
- After-sales tie-ups for diverse types of lubricants, greases and coolants firmed up with major automobile manufacturers such as Maruti Suzuki, Volvo Eicher, Ashok Leyland, etc., and L&T Komatsu
- Approvals for different grades of SERVO lubricants obtained from Cummins (USA), Mahindra & Mahindra, Maruti Suzuki, Mahindra Navistar Automotives Ltd, SEEPCO, Eaton (USA), etc.
- Agreements signed with Essar Oil for marketing of SERVO lubricants through their retail outlets and also for their plant-fill requirements
- New business gained from SWR (Hubli), VOLTA Impex (South Africa unit), International Tractors (Hoshiarpur), Bajaj Auto (Pune), Arcvac Forgecast Ltd. (Hooghly), and a 600 MW thermal power plant in Orissa
- MOUs signed with ONGC, GE Shipping, NTPC (Kaniha), Vishweshvaraya Vidyut Nigam Ltd. etc., for supply of lubricants
- Achieved 29.8% growth in finished lubes export sales; SERVO launched in Qatar with the commissioning of a distributor, raising the tally of overseas distributors to 11
- Commenced bulk supplies to Toyota-Oman from Dubai blending arrangement; obtained lube business from Oman (Galfar Infrastructure Company) and Georgia; introduced Servo lubricants in Myanmar and Uganda markets, extending its presence to 17 countries
- Servo Ecofin J – a bio-degradable jute finishing oil – received the Golden Peacock award under Eco-Innovation category
- ‘Car-in-a-can’ sales promotion campaign for SERVO 4T and SERVO 4T Zoom engine oils, commenced recently and slated to run till June, has an assured cash-back component with every purchase and mega gifts of Hyundai cars
Aviation
- IndianOil Aviation Service maintained its leadership in all segments of the aviation fuel supply business, viz., national carriers, defence services, scheduled private airlines and international airlines
- Sales volume increased from 3,252 tkl in 2008-09 to 3,311 tkl in 2009-10; gained new business of 12 airlines, including Air France, Delta Airlines, South African Airways, Kenya Airways, Aeroflot Cargo, Turkish Airways, Air China, etc., at different airports
- 16 state-of-the-art hydrant dispensers and six 45-kl capacity refuellers inducted into the fleet, taking the total tally to 416;
- Continued to be the only oil company entrusted with 100% of sensitive VVIP refuellings all over India
- QC, safety and M&I indices at locations continue to be above benchmark levels; 18 locations had QC index of 100
- Mumbai AFS received the National Safety Council (Maharashtra Chapter) Award for 2008
- A new branding exercise launched for IndianOil's Aviation Service, which encompasses storage tanks, building signage, hydrant dispensers, filling sheds, etc; a comprehensive Look Book is already in use by AFSs across the country in migrating to the new branding.
|
Sales performance in major products
|
|
PRODUCT |
2008-09 |
2009-10 |
|
Vol. (TMT) |
Vol. (TMT) |
Gr. (%) |
|
HSD-R |
19754.2 |
21556.1 |
9.1 |
|
HSD-D |
8276.0 |
8507.3 |
2.8 |
|
MS-R |
4958.8 |
5647.4 |
13.9 |
|
LPG |
5665.0 |
6113.2 |
7.9 |
|
AVGAS/JP4&5/ATF |
2767.9 |
2827.2 |
2.1 |
|
FO |
4338.3 |
4502.6 |
3.8 |
|
LUBE |
460.8 |
544.2 |
18.1 |
Engineering & Projects
- A grassroots depot commissioned at Zewan in Srinagar, and a new bulk petroleum installation completed at Thoise in Ladakh, located 140 km from Leh across the Khardungla Pass, to cater to the requirements of the Indian Air Force base overseeing Siachen operations. Additionally, 140 kl storage tanks have also been set up at the Siachen base camp.
- Additional buffer tankage of 1350 kl has been completed at Rangpo in Sikkim to address disruption of supplies in monsoon
- A pipeline receipt terminal commissioned at Devanagonthi terminal of the Chennai-Bangalore product pipeline; Siliguri terminal has been revamped with a new automated TLF shed, a two-spur BG tank-wagon loading gantry, and a new administrative and S&D block
- Over 5,000 kl additional MS tankage completed at Bharatpur depot, along with pipeline receipt facilities
- Automation of terminals completed at Mathura (bitumen), Coimbatore, Sankari, Gwalior, Jabalpur and Korukkupet; additional tank-lorry filling bays have come up at Mughalsarai, Gonda, Bijapur and Kochi installations
- Over 1,400 retail outlets automated on a cumulative basis
- Access for vehicle tracking via internet enabled for retail and consumer outlet dealers
- Surplus capital stores of Rs. 400 lakh value liquidated during 2009-10
Supplies
- New depot commissioned at Lalkuan (Uttarakhand), besides tank-truck loading at the Tap-off Point (ToP) in Ratlam (Madhya Pradesh) on the Koyali-Ratlam pipeline
- Operations closed at 15 locations on considerations of safety, security, economy and integration with erstwhile IBP and AOD locations
- Tankage upgraded at locations supplying fuels to 13 notified cities where MS and HSD are being converted from BS-III to BS-IV norms, as per road map of Auto fuel Policy. Plan firmed up for upgradation from BS-II to BS-III grades in the rest of the country from 1st April to 1st October, 2010
- Realignment of secondary markets in eight State Offices resulted in estimated annual savings of Rs. 31.5 crore
- Vehicle tracking system implemented in all States
- Advance winter stocking in Leh, Kargil and the Valley sector of Jammu & Kashmir completed ahead of schedule
- POL supply lines to Barak Valley, Tripura & Mizoram maintained by 100% road bridging during April-June 2009 in the backdrop of grave law & order situation
- Bagged the 3rd Express, Logistic & Supply Chain Excellence Award of APL Logistic India Ltd. in the Oil & Gas category
Information Systems
- E-ledger portal enhanced to provide on-line PAD balances, pricing information and PAD statements to customers
- At DOLGs, COLDs, OMC hospitality, AFSs, etc., where SAP is not available, an interfacing module named Webdoc developed for generating documents in SAP
- An SMS-based indent monitoring system developed for customers to enable them book indents through SMS and receive loading status at each stage
- On-line inspection module developed for various departments like M&I, Operations, LPG, Aviation and QC to enable them capture inspection details at the location itself for automatic generation of reports
- Daily activity monitoring system developed for S&D, whereby the location can directly enter the status of loading/unloading of tank-wagons and tankers and pipeline transfers
Human Resources
- Marketing Division inducted 173 newly-recruited officers in the year 2009-10
- Over 300 workmen redeployed in five new locations and for manning additional shifts at eight locations
- SAP HR camps conducted in all four Regions to ensure 100% availability of data in mandatory fields; on-line leave process made fully operational through Guruji in all administrative offices
- On-line intranet-based e-suggestion module implemented across the Division; number of suggestions almost doubled this year, from 979 to 1752
- As part of community development plan, a sum of Rs. 1.22 crore was spent on Special Component Plan/Tribal Sub Plan
- Badminton ace P Gopichand was presented the Dronacharya Award by the President of India in August 2009
Finance
- e-collections rose to 72% while 93% of e-payments are being routed thru the electronic mode
- Received Rs. 120 crore as interest on tax refund from IT Dept. during 2009-10
- Launched on-line viewing of employees' PF balances as well as facility for on-line nomination to PF members on intranet site
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