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IOCL

Indian Oil Corporation Limited (IOCL) is India's largest integrated energy company, holding a significant share in the petroleum market with over 37,500 fuel stations and 11 refineries. The company aims for net-zero emissions by 2046 and is expanding into renewable energy and petrochemicals, while facing challenges from emerging energy trends and dependency on oil imports. IOCL's strengths include a strong brand image and extensive distribution network, but it must innovate to remain competitive in the evolving energy landscape.

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11 views

IOCL

Indian Oil Corporation Limited (IOCL) is India's largest integrated energy company, holding a significant share in the petroleum market with over 37,500 fuel stations and 11 refineries. The company aims for net-zero emissions by 2046 and is expanding into renewable energy and petrochemicals, while facing challenges from emerging energy trends and dependency on oil imports. IOCL's strengths include a strong brand image and extensive distribution network, but it must innovate to remain competitive in the evolving energy landscape.

Uploaded by

Shina katyal
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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INDIAN OIL CORPORATION LIMITED

Yana Jain
COMMERCE DEPT. | 24/491
SUBMITTED ON 15TH OCTOBER, 2024
Indian Oil Corpora on Limited is the largest integrated energy company of the
country. It's engaged in the business of petrochemicals, gas, oil and other energy
sources. It holds the largest share in the petroleum products market of the country
with over 37,500 fuel sta ons present across India. IOCL at present owns 11 out of
23 refineries in India with installed refining capacity of 70.25 million metric tons per
annum (MMTPA) which is the maximum share among all the refining company in
India and has permission to further raise that capacity to 87.9 MMTPA. IndianOil
accounts for around 31% of the total refining capacity in the country. It has a
capacity to process over 1.6 million barrels of crude oil daily and reach out to more
than 30 crore Indians via a customer base of over 61,000 handled orders along with a
connec ng network of cross-country pipelines of almost 20,000 kms.
It has also shown an encouraging growth with a CAGR of 15.3% in the last four years.
It’s ranked at 116th on Fortune ‘Global 500’. For the third year in a row, the company
has been included in the ‘BW Top 500’ and is ranked the best oil and gas company in
India by Business World.
IOCL has a goal to achieve the Net-Zero emission by the year 2046 where the
government aims for the same challenge by 2070. It is even taking its first steps
towards a transforma on trying to be ‘One Trillion Dollar Giant By 2047’.
The flagship brand of IndianOil, Indane has changed the face of the domes c
cylinder market in India for more than six decades. It has also extended its reach to
countries like Nepal, Sri Lanka, The Maldives and The Middle East.

1
STRENGTHS:

 Strong Brand Image- The Company has built a strong and posi ve reputa on making
it a household name across India. IOCL’s un ring services, even in the hour of crisis
and calami es, have upheld its brand image of being a reliable energy supplier which
aids in customer loyalty and market penetra on. This innate strength will con nue to
empower it, as it navigates through energy transi on.

 Ability To Scale Up- The company’s well proven ability in gathering large-scale
investments, exper se in opera ng world-scale installa ons and its track record in
mee ng s ff deadlines further increase its confidence to effec vely enter and grow
in the new energy areas. Backed up with these, the Company envisages tapping new
opportuni es to emerge as a global, low cost, low carbon holis c energy solu ons
provider. IOCL is planning to scale not just in size but also in scale:

 Petrochemicals: The company has been rapidly expanding its petrochemical


produc on capabili es.
 Alterna ve energy: IOCL is scaling up its investments in renewable energy, including
solar, wind, and biofuels.
 New business lines: The company has shown the ability to enter and scale in new
areas like natural gas distribu on and electric vehicle charging.

World's highest petrol pump of IndianOil situated at an al tude of 3,740 metres (12,270 ) above mean sea level in Kaza, HP.

 Extensive Pan India Presence-IOCL has a large distribu on market which enables it
to cater to even the most remote parts of India, it operates the world's highest
petrol pump and retail outlet at an al tude of 12,270 in Kaza in Himachal
Pradesh. It has the greatest number of Petrol pumps in India at over 37,000. This
enables a con nuous business flow, helping it tap into both rural and urban areas.

2
WEAKNESSES:

 Limited Exper se in Emerging Energy Areas- Upcoming trends towards sustainable


energy and introduc on of low-cost EV’s like OLA, Tata Nexon, Mg Windsor renders
the company´s established oil and gas exper se insufficient to guarantee long term
sustenance. Since IOCL currently focuses only on petroleum products it might miss
the boat in transi on to renewable energy just like Nokia became obsolete due to its
unwillingness to innovate. It may end up losing a substan al chunk of its market
share to other players who will have first mover’s advantage. Therefore, it has to
build capabili es in new energy domains by re-orien ng itself with respect to R&D
and be ahead of the curve.

OPPORTUNITIES:
 Avenues for high growth in emerging energy areas- With the global energy market
changing, there is an increasing interest in renewable alterna ves like solar energy,
wind energy and nuclear energy. IOCL could poten ally diversify its por olio by
inves ng in renewable sources. As the adop on of Electric Vehicle (EV) sees an
upward trend owing to the government incen ves and customer interest, IOCL has
an opportunity to establish itself as a key player in the EV infrastructure ecosystem.
By installing EV charging points at every sta on across its vast network, IOCL can
u lize its exis ng infrastructure and capitalize on the rapidly growing EV market.
.

 Petrochemical Industry- IndianOil is the second largest player in India’s


petrochemicals market, ac vely leveraging the abundant growth opportuni es in this
sector. The Petrochemicals business is a pivotal value creator for the refineries and a
vital driver of the Company’s future growth and profitability. During the year, the
Company increased its Petrochemical capacity from 3.7 MMTPA to 4.1 MMTPA and
have set a target to achieve 8.2 MMTPA of petrochemical manufacturing volume by
2026-27. Realising the immense growth poten al of the petrochemicals market,
there is immense opportuni es for future expansion in this segment.

3
 Support for Net-Zero Emissions Goals- The ongoing efforts of the government to
reach ‘NET-ZERO carbon emissions’ opens up opportuni es for IOCL to contribute to
na onal goals. By suppor ng government policies and inves ng in sustainable energy
prac ces, IOCL can posi on itself as a leader in the energy transi on

THREATS:
 Dependency on Oil Imports- IndianOil relies heavily on oil imports to meet its
produc on requirements. This dependency makes the company suscep ble to
interna onal oil price fluctua ons, geopoli cal tension and foreign exchange risks.
Any disrup on in the global supply chains could have a severe impact on the
company’s opera ons and profitability.

 Disrup ve Force of EV’s- As consumers shi towards more environmentally friendly


and sustainable modes of transporta on, demand for petrol and diesel is projected
to decline over a few years. This poses as a major threat for IOCL which is heavily
reliant on the sale of such fuels. With the Indian government promo ng EV’s through
incen ves and policies, the company could face declining revenues if it is not quick to
react.

 Government Interven on- As a Maharatna PSU, IOCL has very li le flexibility to


make rapid decisions compared to private companies and must balance commercial
interests with government direc ves. This makes adap ng to the changing energy
landscape harder and can affect IOCL's ability to remain ahead of the market.

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