SUMMER TRAINING REPORT ON INDANE LPG, FACTORS AFFECTING ITS CUSTOMERS AND SALES AND ITS COMPARATIVE ANALYSIS

WITH PNG

(Submitted in partial fulfilment for Post Graduate Diploma in Management, from IMS NOIDA, NOIDA)

Institute of Management Studies, Noida

SUBMITTED TO RITU SHARMA SUBMITTED BY ANKIT KUMAR JHA PGD-11013

Company Certificate

ACKNOWLEDGEMENT
The satiation and euphoria that accompany the successful completion of the project would be incomplete without the mention of the people who made it possible. I would like to take the opportunity to thank and express my deep sense of gratitude to my corporate mentor Mr. Naresh Gera, Chief Area Manager, Noida AO. I am greatly indebted to him for providing his valuable guidance at all stages of the study, his advice, constructive suggestions, positive and supportive attitude and continuous encouragement, without which it would have not been possible to complete the project. I would also like to thank MrAvinash Gupta, Manager, (LPG Consumer Sales) who in spite of busy schedule has co-operated with me continuously and indeed, his valuable contribution and guidance have been certainly indispensable for my project work. I am thankful to Mr. S. G.Bhagwat(Ch. T&D-Manager,NR) for giving me the opportunity to work with Indian Oil and learn. I owe my wholehearted thanks and appreciation to the entire staff of the company for their cooperation and assistance during the course of my project.I hope that I can build upon the experience and knowledge that I have gained and make a valuable contribution towards this industry in coming future. I would like to express my gratitude to Ms. Ritu Sharma(Faculty guide) for her suggestions & innovative methods to carry out the survey. Lastly, I want to show my gratefulness to all the respondents who spared their precious time in answering my questionnaires. Should you have any questions concerning this report, I will be happy to discuss it during viva.

Ankit Kumar Jha IMS NOIDA(PGDM-2011-13

EXECUTIVE SUMMARY

1. The Title Of The Project 2. Name Of The Organization 3. Institutional Guide 4. Organizational Guide

COMMERCIAL LPG, FACTORS AFFECTING ITS CUSTOMERS AND SALES AND ITS COMPARATIVE ANALYSIS WITH PNG INDIAN OIL CORPORATION LTD Ms. Ritu Sharma , Professor , IMS NOIDA Mr. Naresh Gera Chief Area Manager , IOCL, Noida 6 Weeks from 09.05.2012 Primary To identify the issues related to Indane Gas customers Secondary
-

Project Duration 5. Objectives

6.

Research procedure

7. 8.

Major Finding Recommendation

To find out short term problem in every sub-region so to provide solution to the identified problems to improve upon Corporations image and sales. Sample Size-30 Sampling Technique- Convenient Sampling Sources of data- Commercial Customers of LPG in NCR Type of data- Primary and Secondary Data collection tool- Structured Questionnaire Most of the Customers are planningto shift to PNG OF IGL. Setting up of Effective Grievance Handling System

TABLE OF CONTENTS

Topic Executive Summary Overview of the Industry Company Profile Products Services

Page Nos. 4 6 12 19 26 28 29 31-32

Indane (special mention) Introduction to research topic Review the Literature Research methodology Define a problem Purpose or objectives Target population Sampling method Data collection method Limitations of the study

Data analysis Findings &Suggestions Conclusion References Appendix

33-40 41 41 42 43-44

Questionnaires (for PNG & Commercial LPG customers)

OBJECTIVES OF THE STUDY

For any research study there has to be some objectives which can highlight the purpose of doing the research work. PRIMARY OBJECTIVES To study the advantages and disadvantages of PNG. To study the market penetration of PNG. To finds the consumer preference of PNG. To study the comparative analysis of PNG and LPG. To find out the impact on profitability through shift of customers from LPG to PNG.
GENERAL OBJECTIVES

To get a flavor of Teamwork, Organizational culture, Team dynamics, result orientation, organizational pressure, complexities in achieving desire result.

To check my theoretical knowledge with comparison to the practical market demands.

And at last but not the least for sharpen my career goals for a bright career

Introduction Overview of the Industry:

The Indian oil and gas sector is one of the six core industries in India and has very significant forward linkages with the entire economy. India has been growing at 8-9 per cent annually and is committed to accelerate the growth momentum in the years to come. This would translate into India's energy needs growing many times in the years to come. Hence, there is an emphasized need for wider and more intensive exploration for new finds, more efficient and effective recovery, a more rational and optimally balanced global price regime - as against the rather wide upward fluctuations of recent times, and a spirit of equitable common benefit in global energy cooperation. Oil & Gas - Key Developments and Investments Energy giant Reliance Industries Ltd (RIL) is in full force to strengthen its global leadership position through its ambitious US$ 11 billion-Jamnagar phase three expansion project (popularly known as J-3 mega petrochemicals project). The company has approached international markets to raise funds for the same. Recently, RIL officials have signed a US$ 400 million-loan agreement with Italian finance group SACE Spa.

State-run Indian Oil Corporation (IOC) plans to expand its pipeline network (from 10,900 km to 15,000 km) by investing Rs 7,700 crore (US$ 1.55 billion) by 2015. The company would lay more than 20 new pipelines to materialize its expansion plan. Oil & Natural Gas Corporation (ONGC) and IOC are eyeing exploration and refining opportunities in Sri Lanka as the island's Government would call for bids for seven oil and gas blocks in Mannar Basin by June 2012. Both the companies are reported to have visited Sri Lanka to review the opportunities and discuss the prospect with concerned authorities

After setting up two terminals on the western coast, Petronet LNG Ltd is planning to set up its third terminal in the east coast of India. The terminal, with a 5 million tonne capacity, is projected to cost around Rs 4, 500 crore (US$ 902.9 million).

OIL & GAS INDUSTRY STRUCTURE IN INDIA

INTRODUCTION TO THE PROJECT

ABOUT LPG Liquefied petroleum gas is one of the most common and an alternative fuels used in the world today. Liquefied petroleum gas is also called as LPG, LP Gas, or Auto gas. The gas is a mixture of hydrocarbon gases used as a fuel for various purposes. This is mainly used in heating appliances and vehicles and is replacing chlorofluorocarbons as an aerosol propellant. It is also used as a refrigerant mainly to reduce damage to the ozone layer. LP gas is a mainstay for cooking and heating in some areas of India and rural areas of the United States and the other parts of the world. LPG is also used as alternate for petroleum and Diesel. The main reason behind this being the soaring in the prices of the oil, LPG has emerged as much preferred choice. LPG is a fossil fuel and can be refined from oil and natural gas. LPG is basically a hydrocarbon with propane and butane as main constituent Properties of LPG LPG is twice as heavy as air and half as heavy as water. LPG is colourless and odourless; hence an odorant is used to detect leaks.

LPG can be compressed at a ratio of 1:250, which enables it to be marked in portable containers in liquid form.

LPG is safe fuel and ignites only within the specified LPG- Air ratio of 2% to 9%. A high calorific value of 11,900 Kcal/Kg results in high efficiency heat output LPG As Cooking Fuel LPG is a gas at normal temperature and pressure. The gas is compressed into a liquid by application of moderate pressure. This action of applying pressure reduces the volume by approximately 240 times. When the pressure is released, which is done by opening the cylinder valve, the liquid immediately becomes gas. The appliances that run on LPG are highly efficient. LPG is very clean gas and is also quick, convenient and safe. It is cheaper than most other fuels except perhaps kerosene but it does greatly outweigh the marginal extra cost. It is delivered by gas agency directly at home ADVANTAGES OF LPG

LPG has numerous advantages when compared to the other fuels available. With its high energy output, instantly available heat, flexibility in use and environment friendliness has become an important alternative energy source. It offers the following advantages Clean Burning No soot, burners have a longer life - so maintenance is low No spillage as it vaporizes at atmospheric temperature and pressure. Effects of corrosion are greatly reduced Instantly controllable flame temperature Avoids scaling and decarburizing of parts Environmentally friendly fuel, with minimal sulphur content and sulphurfree emissions Very high efficiency with direct firing system Instant heat for faster warm-up and cool-down

ABOUT PNG
PNG is mainly methane CH4 with a small percentage of other higher hydrocarbons. The ratio of carbon to hydrogen is least in methane and hence it burns almost completely making it the cleanest fuel. It is procured from the oil / gas wells and transported through a network of pipelines across the country.

PNG BENEFITS With PNG you don't need to make any choices, for its characteristics make it the best option for domestic and commercial purposes.

Uninterrupted supply PNG offers the convenience of ensuring continuous and adequate supply of PNG at all times, without any problem of storing gas in cylinders. Unmatched convenience The domestic consumers have to take upon themselves the trying task of booking an LPG cylinder refill, time and again. Then starts the wait for the deliveryman to deliver the cylinder. Switching over to PNG renders this entire exercise unnecessary. PNG also eliminates the tedious routine of checking LPG refill cylinder for any suspected leakage, or it being underweight, at the time of delivery. Safety The combustible mixture of natural gas and air does not ignite if the mixture is leaner than 5% and richer than 15% of the air-fuel ratio required for ignition. This narrow inflammability range makes PNG one of the safest fuels in the world. Billing The user is charged only for the amount of PNG used, and no pilferage is possible with PNG as the billing is done according to the meter. A unique feature is that the user gets to pay only after consumption of gas. The domestic consumer pays the PNG bill only once in four months. A versatile fuel Natural gas is being used predominantly as a versatile fuel in many major cities catering to domestic and commercial applications, as a cooking fuel, for water heating, space heating, air conditioning, etc. Environment friendly Natural gas is one of the cleanest burning fossil fuels, and helps improve the quality of air, especially when used in place of other more polluting energy sources. No daily liasioning The consumer is spared the task of liasioning with oil companies and coordinating with them for ensuring the daily supply of fuel, because PNG is supplied directly through pipes. The daily bills, settlements and reconciliation are also avoided as the consumer is billed once a month, and that too as per the meter reading.

No spillage and pilferage In case of fuels like LPG, there are considerable chances of spillage and pilferage. In case of PNG these losses are invariably done away with, for PNG is supplied through pipes. Billing - No up-front payment The user is charged only for the amount of PNG used, and no pilferage is possible with PNG as the billing is done according to the meter. The commercial consumer pays on a monthly basis. Lower maintenance cost With PNG, soot or ash accumulation and greasy spillages are absent from your appliance. Maintenance costs are, thus, driven down.

Company Profile
INDIAN OIL CORPORATION LTD.

HISTORY OF INDIAN OIL CORPORATION LTD.

The Indian Oil Corporation Ltd. operates as the largest company in India in terms of turnover and is the only Indian company to rank in the Fortune "Global 500" listing. The oil concern is administratively controlled by India's Ministry of Petroleum and Natural Gas, a government entity that owns just over 90 percent of the firm. Since 1959, this refining, marketing, and international trading company served the Indian state with the important task of reducing India's dependence on foreign oil and thus conserving valuable foreign exchange. That changed in April 2002, however, when the Indian government deregulated its petroleum industry and ended Indian Oil's monopoly on crude oil imports. The firm owns and operates seven of the 17 refineries in India, controlling nearly 40 percent of the country's refining capacity.

1958 Indian Refineries Ltd. formed in August with Mr Feroze Gandhi as the Chairman. 1959
Indian Oil Company Ltd. established on 30th June 1959 with Mr S. Nijalingappa

as the Chairman. 1960 Agreement for supply of Kerosene and Diesel signed with the then USSR.
MV Uzhgorod carrying the first parcel of 11,390 tonnes of Diesel for

IndianOil docked at Pir Pau Jetty in Mumbai on 17th August 1960.

1962

 Guwahati Refinery inaugurated by Pt. Jawaharlal Nehru, Honble Prime Minister of India.
Construction of Barauni Refinery commenced.

1963
Foundation laid for Gujarat Refinery Indian Oil Blending Ltd. (a 50:50 Joint Venture with Mobil) formed.

1964
Indian Refineries Ltd. merged with Indian Oil Company with effect from 1st

September, Ltd.

1964, and Indian Oil Company renamed as Indian Oil Corporation

Barauni Refinery commissioned. The first petroleum product pipeline from Guwahati to Siliguri commissioned. 1965 Gujarat Refinery inaugurated by HE Dr. S.Radhakrishnan, President of India. Barauni-Kanpur product pipeline and Koyali- Ahmedabad product pipeline commissioned.
IndianOil People maintained the vital supply of Petroleum products to

Defence Services during Indo-Pak war. 1967

Haldia Barauni product pipeline commissioned. Bitumen and marine

bunkering businesses commenced. 1968 Techno-economic studies for Haldia-Calcutta, Bombay-Pune and BombayManmad Pipelines submitted to Government.

1969

 Marketing of Madras Refineries Ltd. products commences.

1970
Acquired 60% majority shares of IBP Co. Ltd. The same was offloaded in

favor of the President of India in 1972. 1971

Dealership/reservation extended to war widows, disabled Defence personnel,

freedom fighters, etc. for the first time after the Indo-Pak war. 1972 R&D Centre established at Faridabad.
SERVO, the first indigenous lubricant, launched.

1973
Foundation-stone of Mathura Refinery laid by Mrs. Indira Gandhi, Honble

Prime Minister of India. 1974 Indian Oil Blending Ltd. became the wholly-owned subsidiary. Marketing Division attained a new watershed with market participation of 64.2%.

1975 Haldia Refinery commissioned. Multipurpose Distribution Centres introduced at 132 Retail Outlets pioneering rural convenience.

1977

 Nutan wick stove launched by R&D Centre. 1978 Phase-wise commissioning of Salaya-Mathura crude oil pipeline begins. 1981 Digboi Refinery and Assam Oil Company's (AOC) marketing operations vested in IndianOil and it became Assam Oil Division (AOD) of IndianOil. 1982
Mathura Refinery and Mathura-Jalandhar Pipeline commissioned.

1983 Massive augmentation of LPG storage and distribution facilities undertaken. Proposal for the 6 MMTPA Refinery at Karnal submitted. 1984 Taluka Kerosene Depots (TKDs) commissioned for improved availability of kerosene in rural and hilly areas in addition to Multipurpose DistributionCentres. Foreshore Terminal at Kandla Port commissioned.
Integrated Corporate Planning a 10-year Perspective Plan and 5-year Long

Range Plan initiated. 1985 New office complex for Registered Office of the Corporation and HeadOffice of Marketing Division in Mumbai completed. 1986

 A new Foreshore Terminal at Madras commissioned.

1987
Test marketing of 5 kg LPG cylinders begins in 1986-87 in Garo Hills and

Kumaon. 1989
Salaya-Mathura crude oil pipeline suitably modified for handling Bombay

High Crude during winter. 1990 Kandla-Bhatinda product pipeline project approv
First LPG Bottling Plant of Assam Oil Division (AOD) commissioned at

Silchar. 1991 Digboi Refinery modernisation project initiated.

Bunkering facility at Paradip commissioned.

1993
New era Micro-processor based Distributed Digital Control Systems

replacing the pneumatic instrumentations began in refineries. 1994 India's first Hydrocracker commissioned at Gujarat Refinery.
Vision-2000, the Retail Visual Identity programme launched to upgrade retail

outlets. 1995 1,443 km. long Kandla-Bhatinda product pipeline commissioned. First lndane Home Shoppe launched.

1996 State-of-the-art LPG Import Terminal at Kandla (capacity of 6,00,000 tonnes per annum) commissioned.
First batch of one-year International MBA (iMBA) programme passes out of

IndianOil Institute of Petroleum Management (IIPM). 1997 Business Development received renewed thrust with new functional group. Indian Oil enters into LNG business through Petronet LNG -a JV company. 1998 Panipat Refinery was commissioned. Haldia, Barauni Crude Oil Pipeline (HBCPL) was completed. The Administrative Pricing Mechanism (APM) was withdrawn from the Refining Sector effective 1" April 1998. Phase-wise dismantling of APM began. 1999 Indian Hydrocarbon Vision -2025" was announced at PETROTECH-99, organised by Indian Oil on behalf of the oil Industry. Diesel Hydro-desulphurisation Units commissioned at Gujarat, Panipat, Mathura and Haldia Refineries. Manthan -- the IT re-engineering project was launched. 2000 Indian Oil crossed the turnover of the magical mark of Rs l ,00,000 Crore -the first Corporate in India to do so. Indian Oil entered into Exploration & Production (E&P) with the award of two exploration blocks to Indian Oil and ONGC consortium under NELP-1 Y2K compatibility achieved. JNPT Terminal was commissioned.

2001 Digboi Refinery completed 100 years of continuous operation. Chennai Petroleum Corporation Ltd. (CPCL) and Bongaigaon Refinery and Petrochemicals Ltd. (BRPL) were acquired. Fluidised Catalytic Cracker Unit at Haldia Refinery was commissioned. Augmentation of Kandla-Bhatinda Pipeline (KBPL) to 8.8 MMTPA completed. Eight Exploration blocks awarded to the Indian Oilled consortium under NELP-II. 2002 APM dismantled. Pricing of Petroleum products decontrolled. IBP Co. Ltd. was acquired with management control. Barauni Refinery expansion project completed. New generation auto fuels IOC Premium and Diesel Super introduced. 2003 Lanka IOC Pvt. Ltd. (LIOC) launched in Sri Lanka. Retail operations began in Sri Lanka. Indian Oil became the first Indian Petroleum Company to begin downstream marketing operations in overseas market. Lanka IOC became an independent oil company in Sri Lanka Gasahol, 5% ethanol blended petrol, was introduced in select states. 2004 Indian Oil turned a Gas marketer by sale of regasified LNG. Lanka IOC Pvt. Ltd. (LIOC) launched in Sri Lanka. Gasahol, 5% ethanol blended petrol, was introduced in select states. INDMAX unit at Guwahati Refinery commissioned. Maiden LPG supplies to Port Blair.

2005 E&P. Indian Oil's Mathura Refinerywas the first refinery in India to attain the capability of producing entire quantity of Euro-III compliant diesel by commissioning the Rs 1046 crore DHDT (Diesel hydrotreating unit). Indian Oil breached the Rs 150, 000 crore mark in sales turnover by clocking Rs 150, 677 in turnover in fiscal 2004. Indian Oil signed a JV agreement with GAIL to enter the city gas distribution projects in Agra and Lucknow. Indian Oil allowed by Government of India to charter crude oil ships on its own instead of going through Transchart, the chartering wing of the Ministry of Shipping. 2006 Panipat Refinery capacity enhanced from 9 to 12 MMTPA World-scale Paraxylene/Purified Terephthalic Acid (PX/PTA) plant commissioned at Panipat as mother plant for polyester industry Chennai-Trichy-Madurai product pipeline dedicated to the nation. The year marked Indian Oil's big ticket entry into the high stakes business of

2007 Marketing subsidiary IBP Co. Ltd. merged with parent company.

Concept of SERVOXpress Centres as one-stop shops for autocare services

launched. Lanka IOC commissions Lube Blending Plant and laboratory for testing fuels and lubricants at Trincomalee

 Concept of LNG at the doorstep launched for customers located away from gas pipelines 2008 SERVO lubricants launched in Oman. IndianOil Chairman elected as President of World LP Gas Association.

Introduction to the Organization

IndianOil is India's flagship national oil company with business interest straddling the entire hydrocarbon value chain from refining, pipeline transportation and marketing of petroleum products to natural gas and petrochemicals. It is the leading Indian corporate in the Fortune 'Global 500' listing, ranked at 83 by sales turnover for the year 2011. IndianOil and its subsidiaries have a dominant share of the petroleum products Market, national refining capacity and downstream sector pipelines capacity in India. With over a 34,000-strong workforce, IndianOil has been helping meet Indias energy demands for over five decades now. At IndianOil, operations are Strategically structured along business verticals - Refineries, Pipelines,Marketing, R&D and Business Development - E&P, Petrochemicals and NaturalGas. IndianOil controls 10 of Indias 20 refineries with a group refining capacity of 65.7MMTPA. Its cross-country network of crude oil, product and gas pipelines, Spanning 10,899 km with a capacity of 75.2 MMTPA, is the largest in the country. With a throughput of 68.5 million tonnes, it meets the vital energy needs of theconsumers in an efficient and environment-friendly manner. IndianOil has a formidable network of customer touch-points dotting theLandscape across urban and rural India. With a countrywide network of salesPoints, backed for supplies by bulk storage terminals and depots, aviation fuelStations and LPGas bottling plants, IndianOil services every nook and corner of thecountry, every hour of the day. Indane LPGas is present in almost all marketsthrough a vast network of distributors. A large network of consumer pumps is alsoin operation for the convenience of bulk consumers, ensuring products andinventory at their doorstep. IndianOil has a portfolio of powerful and much-loved energy brands that include Indane LPG, SERVO lubricants, XtraPremium petrol, XtraMile diesel, Propelpetrochemicals etc. Validating the trust of millions of motorists, IndianOil

hasbeen voted the Most Trusted petrol station brand in the country for the year 2010-11.IndianOil's ISO-9002 certified Aviation Service commands the largest marketshare in the aviation fuel business, successfully servicing the demands ofdomestic and international flag carriers, private airlines and the Indian DefenseServices. The Corporation also enjoys a dominant share of the bulk consumer,industrial, agricultural and marine sectors. With a steady aim of maintaining its position as a market leader and providing bestquality products and services, IndianOil is investing over ` 47,000 crore in a hostof projects for augmentation of refining and pipeline capacities, expansion ofmarketing infrastructure and product quality up gradation.

IndianOil has a world-class R&D Centre that is the finest in Asia. It conducts Pioneering work in lubricants formulation, refinery processes, pipelineTransportation and alternative fuels. The Centre holds 212 active patents, with over100 international patents. Having set up subsidiaries in Sri Lanka, Mauritius and theUnited Arab Emirates (UAE), IndianOil is simultaneouslyscouting for new business opportunities in the energymarkets of Asia and Africa. Indian Oils businessDevelopment initiatives continue to be guided by itscorporate vision of becoming a diversified, transnationaland integrated energy company. Its business strategyfocuses primarily on expansion across the hydrocarbon value chain, both withinand outside the country. Over the years, natural gas has emerged as the 'fuel of choice' across the world. Naturalgas marketing is another thrust area for IndianOil with special focus on City GasDistribution (CGD) business. The Corporation has entered into franchise agreementswith several CGD players to market Compressed Natural Gas through its retail outlets.Green Gas Ltd., IndianOil's joint venture with GAIL (India) Ltd., is already operational inAgra and Lucknow in the state of Uttar Pradesh and is furtherexpanding to cater to the increased demand in various sectors. IndianOil has a concerted social responsibility programme to partner communitiesfor health, family welfare, education, environment protection, providing potablewater, sanitation, and empowerment of women and other marginalized groups.IndianOil has always been at the forefront in times of national emergencies.IndianOilPeople have time and again rallied to help victims of natural calamities, maintaining uninterrupted supply of petroleum products and contributing to reliefand rehabilitation measures. IndianOil has successfully combined its corporatesocial responsibility agenda with its business offerings, meeting the energy needsof millions of people every day, across the length and breadth of the country.

Mission, Vision & Values of Indian Oil

ORGANIZATIONAL STRUCTURE OF IOCL:

LIST OF KEY MANAGEMENT PERSONNEL

R S Butola DR R K MALHOTRA SUDHIR BHALLA A M K Sinha P K Goyal R K Ghosh Makrand Nene V S Okhde Sudhir Bhargava Anees Noorani Michael Bastian Dr.(Mrs.) Indu Shahani CHAIRMAN Director ( Research & Development) Director (Human Resources) Director (Planning & Business Development) Director (Finance) Director (Refineries) Director (Marketing) Director (Pipelines) Additional Secretary Ministry of Petroleum & Natural Gas Managing Director Zodiac Clothing Company Ltd. Former Chairman & Managing Director, Syndicate Bank Principal, HR College of Commerce & Economics, Mumbai and Sheriff of Mumbai Director, Indian Institute of Technology, Guwahati Senior Advocate, Kolkata

Prof. Gautam Barua

N K Poddar

 CURRENT SALES
Indian Oil Corporation Ltd. is Indias 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.

PRODUCTS MIX/ PROFILE OF IOCL

The Products produced by IOCL are broadly classified into the following cases: Class A: 1. Liquid Petroleum Gas (L.P.G) Class B: 2. Motor Spirit (M.S.)/Gasoline 3. Super Kerosene Oil (S.K.O) 4. High Speed Diesel Oil (H.S.D) Class C : 5. High Speed Diesel Oil (H.S.D) 6. Furnace Oil (F.O.) 7. Bitumen 8. Naphtha 9. Aviation Turbine Fuel (A.T.F) Class D : 10.Mineral Turpentine Oil (M.T.O) 11.Jute Batching Oil (J.B.O) 12.Light Diesel Oil (L.D.O) 13.Unleaded petroleum

14.Lubes & Greases 15.Fuel & Feedstock 16.Super Kerosene Oil

DIRECT COMPETITORS
Indian Oil Corporation has two major domestic competitors, Bharat Petroleum and Hindustan Petroleum. Both are state-controlled, like Indian Oil Corporation. There are private competitors, IndraprasthaGas Ltd. HINDUSTAN PETROLEUM

BHARAT PETROLEUM

Indraprastha Gas Ltd.

SWOT ANALYSIS OF INDIAN OIL

STRENGTHS HIGH FOREIGN EXCHANGE DEBT. IOCL has managed to significantly cut its borrowing cost due to high share of foreign exchange debt. Its share of foreign exchange borrowings is increasing with foreign exchange loans crossing 50% of its total debt compared to 42% at the end of the last financial year. HIGHEST MARKET SHARE As India's flagship national oil company, Indian Oil accounts for 56% petroleum products market share, 42% national refining capacity and 67% downstream pipeline throughput capacity. EXPERTISE IN OIL & GAS INDUSTRY Indian Oil is one of the leaders in providing engineering, construction and consultancy services to the pipeline industry. Highly qualified professionals with

vast experience execute pipeline projects from concept to commissioning and provide services for construction supervision and project management. FOREIGN SUBSIDIARIES AND JOINT VENTURES Indian Oil is strengthening its existing overseas marketing ventures and simultaneously scouting new opportunities for marketing and export of petroleum products in foreign markets. Two wholly owned subsidiaries are already operational in Sri Lanka and Mauritius, and regional offices at Dubai and Kuala Lumpur are coordinating expansion of business activities in Middle East and South East Asia regions.

WEAKNESS STRINGENT CORPORATE POLICIES The decisions relating to administration are taken at the corporate level. Even minor proposals are to be referred to the top management. This leads to a delay in decision-making. LACK OF MARKETING EFFORTS Among the public sector oil companies, Indian Oil Corporation is the only one to follow a weak marketing strategy. It in only in the recent years that the company has started to market its products. However, still the efforts seem to be weak when compared with the competitors like BPCL and HPCL. PROMOTION POLICY Most of the public sector companies seem to suffer from these lacunae. The employees are promoted mainly on the basis of experience and not on the efforts and initiatives displayed by the employee in his work. This results in demotivation

and lack of interest for their work on the part of the hardworking employees, who then tend to shift jobs to satisfy their need for self-esteem. TENDER PROCESS The policy of selection of the lowest bidder tends to affect the quality of the products/services on some occasions. A more simplistic procedure is also likely to generate some savings for the company, since tendering process leads to expenses on account of advertisement.

OPPORTUNITIES Exploration and Production Indian Oil is metamorphosing from a pure sector company with dominance in downstream in India to a vertically integrated, transnational energy behemoth. The Corporation is making investments in E&P and import/marketing ventures for oil and gas in India and abroad, and is implementing a master plan to emerge as a major player in petrochemicals by integrating its core refining business with petrochemical activities. THREATS Entry of Big Private players The opening up of the oil sector for private players poses a threat even for this wellestablished company. With Indian players like Reliance and Essar and foreign

players like Shell planning their entry into the Indian scenario, the road seems to be tough for Indian Oil.

RESEARCH METHODOLOGY

RESEARCH OBJECTIVES : Competitive presence and customer preference. Customer spending patterns, budget cycles, and intent. Channel trends, preferences.

1. Market Attractiveness Evaluation:

o o o

2. Customer Insight: Specific customer needs, aspirations, buying behaviors,

usage patterns, decision models, preferences, favorability, intentions, etc. 3. Competitive Forces: Current and potential basis of competition in a market. 4. Communications Planning: What information sources do prospective customers pay attention to, how to reach them, opportunities / vehicles for influencing target customers and which are most effective.

RESEARCH DESIGN Exploratory experimental Research. The research is primarily both exploratory in nature. The sources of information are both primary & secondary. Sample Unit

The respondents who were asked to fill out Questionnaires Survey are the sampling units. EXTENT The Sample was carried on the Residents of NOIDA& GHAZIABAD only. SAMPLING TECHNIQUE Systematic Sampling

SAMPLING METHOD Structured Questionnaire Survey

Sampling Size: 200 customers have been taken as sampling size. DATA COLLECTION: This research was conducted in two phases. In the first phase the study was based on the results of a wide survey, that is, personal interview with the aid of printed questionnaires. The second phase of study was conducted by Secondary Research using Google and other Databases. The internet basically serves the purpose for the same. Primary Data: For our research we have used only the questionnaire survey method to conduct our analysis. Questionnaires are of three categories such as structured, un-structured, disguised and undisguised. But we have used structured questionnaire for our survey. Structured question is the one which has specified number of responses. Such questions restricted the interviewee from giving his own answers and required them to choose from among the alternatives given. This saves a considerable

amount of time as the respondents is quick enough to choose from among the options given to him. Secondary data: Different published and unpublished (only online) materials basically articles from the internet have been focused on. Companys annual reports Companys journal and magazines Companys website Companys leaflets Companys pamphlets Products and sales report

Data Analysis: The following graphs and table are basically a representation of the respondents in the form of questionnaire being filled by them. The number and percentage wise distribution is shown below and also separate analysis of the graphs has been shown therewith.

DATA ANALYSIS AND INTERPRETATION

Q1.Showing the response of respondents regarding the preference for a particular OilMarketing Company for fuel purchase

SL. NO.
1. 2.

Response
Yes No

NO. Of Responden ts
174 26

Percentage (%)
87% 13%

INTERPRETATION: From the above analysis it is found that 87% of the respondents prefer fuel From Indian Oil whereas 13% respondents purchase fuel from different companies.

2. Showing the response of respondents regarding the preference Of INDIAN OIL in comparison to others

SL. NO.
1 2 3 4

Response
IOCL BPCL HPCL IGL, Others

NO. Of Responden ts
98 66 24 12

Percentage (%)
49% 33% 12% 6%

INTERPRETATION: According to the survey conducted, it has been observed that 49% of the respondents prefer INDIAN OIL for the purpose of purchasing fuel which is followed by BPCL (33%) and HPCL (12%). Even 6% of the respondents prefer companies like IGL.

3. Showing the response of respondents about the convenience of PNG

ascompared to LPG.

SL. NO.
1 2 3

Response

AGREE DISGARE NEUTRAL

INTERPRETATION: According to survey conducted 62% of the respondents agree that PNG is more convenientthan LPG as they do not find risky and saves their time in booking a cylinder. Whereas 27%of the respondents say that LPG is more convenient and 11% respondents find both LPG and PNG convenient.

4. Showing the response of respondents that whether PNG is moreeconomical than LPG.

SL. NO.
1. 2.

Response
AGREE DISAGREE

No. Of Respondents
152 48

Percentage (%)
74% 26%

INTERPRETATION

From the above analysisit has been observed that 74% of the respondents say that it is moreeconomical to use PNG as it is less costlier than LPG whereas 26% of the respondents saythat LPG is more economical for them.

5. Showing the response of respondents that whether they are satisfied withthe working of PNG.

SL.NO
1. 2. 3.

Response
SATISFIED NEUTRAL DISSATISFIED

No. Of Respondents
152 42 6

Percentage (%)
76% 21% 3%

INTERPRETATION: The above analysis shows that 76% of the respondents are satisfied with the working of PNG and 3% of the respondents do not agree with it. Whereas 21% of the respondents said that they do not find any difference between the two.

6. Showing the response of respondents regarding the problem of leakage.

SL.NO
1. 2.

Response
PNG LPG

No. Of Respondents
12 188

Percentage (%)
6% 94%

INTERPRETATION: According to the survey conducted 94% of the respondents say that the problem of leakagemostly occurs with LPG due to several reasons like defective cylinder which creates risk andalso injures people.

7. Showing the response of respondents that whether PNG reduces thechances of accidents.

SL.NO
1. 2. 3.

Response
AGREE DISAGREE NEUTRAL

No. Of Respondents
174 22 4

Percentage (%)
87% 11% 2%

INTERPRETATION:

The above analysis shows that 87% of the respondents agree that PNG reduces the chances of accidents as compared to LPG whereas 11% of the respondents do not agree with the same

8. Showing the response of respondents that whether PNG reduces thetedious task of booking an LPG cylinder.

SL.NO
1. 2.

Response
AGREE DISAGREE

No. Of Respondents
178 22

Percentage (%)
89% 11%

INTERPRETATION: According to the above analysis 89% of the respondents say that PNG reduces the tedious task of booking a cylinder whereas 11% of the respondents do not find booking a cylinder as a tedious task.

9. Showing the response of respondents that whether there exists any kindof pilferage as far as billing is concerned.

SL.NO
1. 2.

Response
AGREE DISAGREE

No. Of Respondents
108 92

Percentage (%)
54% 46%

INTERPRETATION:

The above analysis shows that 54% of the respondents say that there exists problem in the case of PNG while billing is done whereas 46% of the respondents say that there does not exist any kind of pilferage as far as billing is concerned. .

10. Showing the response of respondents regarding uninterrupted supply of gas without inconvenience

SL.NO
1. 2.

Response
YES NO

No. Of Respondents
136 64

Percentage (%)
68% 32%

INTERPRETATION: According to the above analysis 68% of the respondents say that there is an uninterrupted supply of gas when they use PNG whereas 32% do not agree with the same.

FINDINGS OF THE STUDY

On the basis of Primary data analysis:

I surveyed 200 respondents as in total and on the basis of the questionnaires being filled by them, I can say that: Around 87% of the respondents prefer a particular Oil Marketing Company i.e Indian Oil for purchasing fuel. Amongst all the competitors BPCL is the biggest threat for IOCL followed by HPCL. It has been observed that majority of the respondents (62%) find PNG more convenient than LPG. Around 74% of the respondents find PNG more economical as compared to LPG. More than 3/4th of the people that is 76% people are satisfied with the working of PNG. Maximum respondents i.e. 94% people say that the problem of leakage occurs mostly in the case of LPG. 87% of the people surveyed agreed that PNG reduces the chances of accidents. Around 89% people feel that PNG reduces the tedious task of booking an LPG cylinder. Almost half of the people disagree that there exists any kind of pilferage as far as billing is concerned. 68% of the respondents said that there is uninterrupted supply of gas without inconvenience in case of PNG.

50

50

51

51

52

PROBLEMS/LIMITATIONS OF RESEARCH
a. Lack of Training: The lack of scientific training in the methodology of research is a great handicap during research. b.Repetition: Research studies overlapping one another are undertaken quite often for want of adequate information. c. Lack of Resources: For conducting a quality researchAdequate funds are not provided. g. Lack of Coordination: There exists lack of coordination among various agencies responsible for conducting research.

52

53

APPENDIX
53

54

Questionnaires for Customers Basic Details

Name ContactsAddress-

1) Till when you used LPG?

2)What is your consumption in kg/month?

3)Which type of cylinders you used? a) LOT b) VOT

4) What was the capacity? a) 14.2kg b) 19 kg c) 47.5kg

5)What was your consumption of total cylinders per month?

6) What were the reasons for shifting to PNG from LPG?

7)Advantages & disadvantages w.r.t to LPG?

8)Who are your service providers?

9)What is the price you pay and discount you get?

10) Is customer aware of setting of Pipelines in his/her Area?

10)Problems faced (if any) & suggestions?

54

55

BIBLIOGRAPHY

Books:

Kothari, C.R.,Research Methodology Sultan Chand Publication, New Delhi, 2004.

T.N. Chhabra, Marketing Management

Philip Kotler, Marketing Management -Kevin Lane Keller.

Web Pages:

http://www.iocl.com/aboutus.aspx http://www.lpg.in/index.html http://en.wikipedia.org/wiki/Pipeline_transport http://www.iglonline.net/BenefitsPNG.aspx http://www.iglonline.net/AboutPNG.aspx

55