OREANDA-NEWS. Indian Oil Corporation Limited (IndianOil), a Maharatna Company, is the nation's largest enterprise. At 83rd, it is also the highest ranked Indian company in the Fortune 'Global 500' list.

During the year 2012-13, IndianOil maintained its leadership position in the industry on the basis of unparalleled performance on all operational parameters. The overall sale of petroleum products grew by 1.66 % over the previous year. Capacity utilization of 100.8 % was achieved. For the sixth year in a row, the overall capacity utilization was over 100%. The year also witnessed the successful commissioning of 1910 Retail Outlets , including 1050 Kisan Sewa Kendras (KSKs) and 564 LPG Distributors including 422 RGGLV Distributors.

CORE PERFORMANCE

Marketing

IndianOil's dominance in the domestic market continued, with the Corporation clocking the highest ever sales at 71.248 MMT in the domestic market during the year 2012-13, registering a volume growth of 1.164 MMT ( 1.66%) over the previous year. IndianOil remained the market leader, with an overall share of (53.1%) among the PSUs.

For over a decade now, our retail network is expanding at a rapid rate and this year too, we remained true to the trend. During 2012-13, the highest number of ROs - 1910- were commissioned, out of which over 1050 were Kisan Seva Kendras (KSK) outlets, whose number have now reached 5256. Rural market penetration continued to remain one of the prime focus for the Corporation with the commissioning of 422 RGGLV Distributorships and 33 Grameen SERVO Stockist that boosted the sales of lubricants in the rural market.

The LPG bottling capacity at existing plants was augmented by 615 TMT during the year. A record 68.85225 lakh new Indane LPG connections were released during the year, raising the strength of Indane customers to actual 734.2466 lakhs. With the release of about 31.75287 DBC connections to existing as well as new customers, the total number of DBC customers increased to 371.6971 lakh.

BS-IV grade fuels were introduced in 10 more cities in 2012-13. Several IT initiatives such as web and mobile based data access applications for field officer and centralised Indsoft software package for LPG distributors, helped further improve business processes during the year.

Refineries

IndianOil Refineries achieved the crude throughput of 54.65 MMT, surpassing the MoU target of 54.25 MMT. Recording the overall capacity utilizaton of 100.8%, our Refineries have achieved over 100% capacity utilization for the sixth year in a row. The highest ever combined distillate yield of all IndianOil Refineries was recorded at 78.1 wt%, surpassing the previous best of 77.8wt% last year.

Barauni Refinery achieved highest -ever crude throughputs of 6344.7 TMT, surpassing the previous best 6207.4 TMT in 2010-11. Gujarat & Panipat Refineries achieved highest ever DCU throughput of 2992 TMT & 2900 TMT, surpassing previous best of 2233 TMT and 2278 TMT in 2011-12. High sulphur crude processing was maximized and highest ever HS crude processing of 29112.7 TMT was achieved in 2012-13.

Energy conservation schemes implemented during the year saw overall specific energy consumption to the lowest ever level

Pipelines

IndianOil product pipelines achieved the highest-ever throughput of 28.09 MMT and crude oil pipelines achieved a throughput of 47.40 MMT. Product pipelines surpassed the MoU target by 6.1% The total pipeline length now spans across 11,214 km including Gas Pipelines of 134 km .

To ensure uninterrupted supply of crude oil to refineries in the eastern and north-eastern states, two additional Single Point Mooring (SPM) systems were commissioned at Paradip.

Projects

IndianOil is currently implementing major projects worth Rs 40,000/- crore. About 92.7 % of overall physical progress has been achieved at Paradip Refinery Project. Capacity Revamp of FCCU at Mathura, INDAdeptG Technology at Guwahati Refinery, Indmax Unit at Bongaigaon Refinery, Paradip -Haldia-Durgapur LPG pipeline, ATF pipeline to Kolkata and Guwahati Airport, terminal and retail automation are some of the major projects under implementation.

Research and Development

The R&D Centre of IndianOil continued to add value to different facets of the Company's operations. A record number of 52 patents were filed during the year, which included 23 Indian and 29 foreign patents. 8 patents were granted during the year. IndianOil's R&D Centre developed 120 lubricant formulations and received 43 Original Equipment Manufacturer (OEM/Customer/Defense approvals and re-certification)

An MoU under National Mission on Clean Coal Technology was signed for the development of Multi-feed gasification systems. The Bio-Energy Research Centre commissioned the first integrated lignocellulosic Biomass to ethanol pilot plant in India for conversion of biomass to ethanol with technology support from National Renewable Energy Laboratory, USA.

The R&D Centre and IIP, Dehradun, signed an MoU to engage PhD scholars for pursuing research programmes on topic of mutual interest. An MoU was also signed with IIT, Delhi for promotion of education, research and innovation as well as to provide a model for academia - industry partnership.

NEW BUSINESS

Besides consolidation in core areas, IndianOil took big strides in new businesses during the year 2012-13.

Integration Initiatives

Exploration & Production (E&P)

IndianOil has 13 domestic blocks, including two Type-S blocks awarded to IndianOil in NELP-VII round where it is the operator. It also has ten oversees assets in seven countries. The Corporation has 3.5% participating interest in the Carabobo development project in Venezuela. The production of first oil from the Carabobo project in Venezuela started in December 2012 and as per the recent development , a peak production of 18,500 BOPD is to be achieved by the end of December '2013. IndianOil has a share of up to 105 million barrels and the projected recoverable reserve is about 3 billion barrels.

Petrochemicals

During the year 2012-13, the highest ever sales of petrochemicals , 1.9333 MMT , was achieved against 1.550 MMT, during the previous year, registering a growth of about 24.76%. IndianOil achieved its highest ever Naptha processing of 2 MMT in Naptha Cracker Unit during the period.

9 polymer grades obtained food contact approval from CFTRI , Mysore and 5 new grades were successfully developed in-house for niche application segments.

IndianOil and BP are jointly exploring the viability of 1.0 MMTPA of Acetic Acid project, using pet coke of Gujarat Refinery as feedstock.

Diversification Initiatives

Gas

IndianOil recorded 8.75% growth in gas sales during the financial year with sales of 3.155 MMT against last year sales of 2.901 MMT. The total gas sales revenue saw a growth of 47.10% over last year.

Two joint venture companies comprising GSPL, IndianOil, BPCL and HPCL has been set up laying 3 cross country gas pipelines

Beyond Business

As a responsible corporate citizen, IndianOil spends upto 2% of its retained profit of the previous year on community development activities through a multi-faceted approach. In the last five decades, IndianOil has supported innumerable social and community initiatives in India, ranging from environmental and healthcare projects to social, cultural and educational programmes.

Under the IndianOil Mobile Healthcare scheme, a total of 12 and 40 MMUs have been launched in Uttar Pradesh and Andhra Pradesh. An MoC was signed between IndianOil and Tata Institute of Social Science to conduct Baseline Survey in about 280 villages in the vicinity of 40 units/locations across 21 states, as well as impact assessment of CSR projects.

150 scholarships, under IndianOil Sports Scholarship Scheme, were awarded, or a period of 3 years in 19 games/sports to upcoming junior players. 2600 educational scholarships were granted to meritorious students.