Summer Training Project Report

Submitted in Partial Fulfillment of the Requirement for the Award of the Degree of

INDIAN OIL CORPORATION LIMITED

Undertaken at

Master of Business Administration By RAHUL KUMAR RANJAN

06/30/11

Centre foroil corporation Limited Studies Indian Management Jamia Millia Islamia, New Delhi-110025

COMPANY PROFILE
Started in 1959. Type: PSU

90% Owned by Government.

105th position in Fortune 500 list.

Punch Line : Bringing Energy to Life.

Group refining capacity is 60.2MMTPA.

06/30/11

Indian oil corporation Limited

 Indian Oil controls 10 of Indias 20 refineries. Refining, Marketing, International Trading. Indane LPG, SERVO Lubricants, Auto gas LPG, XtraPremium Branded Petrol, XtraMile Investing over 30,000 crore to raise group refining capacity.

Sales turnover of Rs. 2, 85,337 crore a net profit of Rs. 2, 950 crore Regulatory Body: Ministry of Petroleum & Natural Gas

06/30/11

Indian oil corporation Limited

Competitors
Domestic competitors
Bharat Petroleum Hindustan Petroleum

Private competitors
Reliance Petroleum Essar Oil

06/30/11

Indian oil corporation Limited

SWOT Analysis
Strength
PSU Unit Vast refining & distribution network Diversified out look

Weakness
Poor R&D
Petrochemical product development technology

Technological drawback

Opportunity
To expand in south east Asia Can become a independent player
Expansion easily possible due to huge distribution

Threat
Volatility of crude oil price Increased competition from private & foreign players

06/30/11

Indian oil corporation Limited

Indane Gas And Its Supply Chain

Supply chain management deals with the management of materials, information and financial flows in a network consisting of suppliers, manufacturers, distributors, and customers. A supply chain consists of all stages involved, directly and indirectly, in fulfilling a customer request. Launched in 1970s. Safe ,Reliable, Convenient. Blend of Butane and Propane Indane brand is being backed by RFID technology .

06/30/11

Indian oil corporation Limited

The Supply Chain of Indane

06/30/11

Indian oil corporation Limited

OBJECTIVES
To understand the supply chain of the Indane Gas in New Delhi beginning from source to supply of the fuel. To determine the demand forecasting of the Indane Gas at distributors level.

06/30/11

Indian oil corporation Limited

RESEARCH METHODOLOGY
Descriptive and Analytical Research
Primary data was collected with the help of a Observation , Interview , and Questionnaire. Secondary data was collected from books, web portals, newspaper articles and different companies brochure. Data analysis by using SPSS software. All the graphs has been made by the use of SPSS. MS excel is also used to make code book.

Sample Design
Sample Space - Delhi. Sample Indane Gas Distributors, Customers. Sampling Technique - Random Sampling Contact method - Direct Interview and Observation Sample Size 120

06/30/11

Indian oil corporation Limited

Sample question (Customer side)

1. Which Quality enforces a customer to stick to that Brand? Price Delivery Time Services qulaity enforces to stick to that brand Provided By Agency 30 Brand Loyalty All of the Above 25
20

15

t n c r e P
10 5 0 Price Services Provided By Agency Delivery Time Brand Loyalty All of the Above

qulaity enforces to stick to that brand

06/30/11

Indian oil corporation Limited

10

2.

No. of people Satisfied with the way of booking the Cylinders? Yes No
8 0

s tis dw th w yo b o in th c lin e a fie ith e a f o k g e y d rs

6 0

t n c r e P

4 0

2 0

0 N o Ys e

s tis dw th w y o b o in th c lin e a fie ith e a f o k g e y d rs

06/30/11

Indian oil corporation Limited

11

Sample Questions (Distributor Side)

1. Number of supplies of LPG cylinders last year by various agencies?
T ta D m s s p lyla t y a P c lin e ) o l o e tic u p s e r(L G y d rs

1 0 0 to 5 0 0 000 100 1 1 0 to2 0 0 500 000 M reth n2 0 0 o a 500

06/30/11

Indian oil corporation Limited

12

2. No. of agency satisfied by the time taken by the truck to deliver a cylinder? Yes S atisfie b th tim take b th tru to d d y e e n y e ck eliver a c lin er y d NO
1 00

80

60

t n c r e P
40 20 0 N o Ys e

S fied b th tim taken b th tru k to d atis y e e y e c elive a cylin er r d

06/30/11

Indian oil corporation Limited

13

FINDINGS
For Customers the findings are as follows
Under Indian Oil Corporation limited, the Agencies are working properly, efficiently and effectively and only taking 2 days to deliver cylinders.

IOCL Customer doesnt want to switch over to other brands. Many People are satisfied with the way of booking of the cylinders at IOCL.
Indian Oil Gas Customers switch to this brand because of the services provided by the Agency as compared to the other brand i.e. BPCL for Brand Loyalty and services provided by the Agency and HPCL for Brand Loyalty. Hence it could be said that IOCL is the most leading brand because of all the services provided by the company and the trust they have build up in the minds of the people from the date of its establishment.
06/30/11 Indian oil corporation Limited 14

For Distributors the findings are as follows

The IOCL is reaching its heights in selling up of the LPG cylinders and they are having 27 lakhs plus customers which is tremendous in itself. The minimum demand of the LPG cylinders is mainly in the months of April to June and the maximum demand of the LPG cylinders is mainly in the months of January to March and October to December. The IOCL Distributors sold more than 400 cylinders per day and are adding more then 20 customers in a month in their list of customers.
Indian oil corporation Limited 15

06/30/11

Recommendations
Government should encourage more private companies so that the combined efforts would bring early results. Policy reforms are needed to support growth opportunities for private investment. Both the fuels i.e. LPG and PNG should be encouraged so as to have balanced demand and supply scenario and it does not happen that one fuel is pressurized under demand and creates rise in its prices. Proper awareness should be promoted amongst the citizens so as to clear their misconception regarding use of these fuels. Strict action should be taken on sale in branded and cheap kit providers. Citizens using gas cylinders in their vehicles illegally should be penalized severely. To encourage people, prices of these fuels should not go up drastically. Review meetings should be held periodically to discus the effectiveness of the system and suggestion to make the system more efficient. There should be no Backlog. Better response time from plant with respect to tracking the delivery of trucks from their end. Quality of the cylinders to be best so that time and labor wasted to check the same may be utilized in more productive work. There should be separate panel for the customer so that they can receive confirmation about their booking of cylinders via sms or emails.

06/30/11

Indian oil corporation Limited

16

06/30/11

Indian oil corporation Limited

17