IndianOil Performance: 2011-12 New Delhi, May 28 th, 2012: Indian Oil Corporation Ltd. (IndianOil) is a Maharatna Company and the nation s largest commercial enterprise. Ranked at 98, it is also the highest ranked Fortune Global 500 company. During the year 2011-12, IndianOil maintained its leadership position in the industry on the basis of superlative performance on all operational indices. The overall sale of petroleum products grew by 5% over the previous year. Capacity utilization of 102.6% was achieved. The overall capacity utilization was 100% for the fifth year in a row, while pipelines throughput of crude oil & petroleum products grew by 10.2%. The year also witnessed the successful commissioning of some of the Corporation s ambitious projects such as Delayed Coker Unit at Gujarat Refinery, Diesel Hydro Treatment unit at Bongaigaon Refinery and Sulphur unit at Mathura Refinery. Core Performance Marketing IndianOil continued to maintain its dominance in the market, clocking the highest ever level of sales at 70.1 million tonnes in the domestic market during the year 2011-12, recording a volume growth of 5% over the previous year. IndianOil remained the market leader, with an overall share of 49.7% in the industry. Our retail outlets network have now crossed the 20,000 mark with the commissioning of 1205 more ROs during the year, out of which 708 were Kisan Seva Kendras. Rural market penetration continues to be a prime focus for the Corporation. IndianOil has reached out to more rural customers with the commissioning of over 377 Rajiv Gandhi Gramin LPG Vitrak distributorships during the year and also 50 Gramin SERVO stockists were commissioned to give fillip to the sales of lubricants in the rural markets. LPG bottling capacity was augmented by 674 TMTPA and the net addition to the LPG connections during the year was 50 lakhs, raising the Indane customer strength to 668 lakh. Over 7000 connections, with access subsidization, were released to Below Poverty Line Families. IndianOil has also commenced Aadhaar based LPG pilot on industry basis in Mysore. BS-IV compliant auto fuels were rolled to additional seven cities in 2011-12, taking the tally to twenty cities, pan India. SERVO has been launched in Bahrain. The brand now has a presence in over twenty countries worldwide. 1
Refineries During the year, IndianOil refineries recorded the highest ever crude processing of 55.6 MMT, surpassing the previous best of 53 MMT achieved last year. Recording an overall capacity utilization of 102.6%, our Refineries have achieved over 100% capacity utilization for the fifth year in a row despite planned M&I shut downs. Highest ever combined distillate yield of all the IndianOil Refineries is recorded 77.8 wt% which is the highest, surpassing the previous best of 75.4 wt% last year. Panipat, Gujarat and Haldia Refineries recorded the highest ever distillate yield of 82.3 wt%, 77.8% and 66.5% surpassing previous best of 81.2wt% (2009-10), 72.4% (1998-99) and 64.4 % (2010-11). Energy conservation schemes implemented during the year saw overall specific energy consumption come down to the lowest ever level of 57 MBTU/BBL/NRGF (MBN) during the year against 59 MBN in 2010-2011. Major facilities commissioned during the year include Delayed Coker Unit at Gujarat Refinery, Diesel Hydro Treatment (DHDT) unit and MS Quality upgradation at Bongaigaon Refinery and Sulphur Recovery Unit at Mathura Refinery. Pipelines During the year, IndianOil's Pipelines recorded excellent operational performance with over 10.2% growth in throughput of crude and petroleum products at 75.5 MMT. The total pipelines length now spans across approximately 10,909 kms. Crude oil pipelines and product pipelines achieved throughputs of 47.58 MMT and 27.95 MMT respectively, surpassing the MoU target by 8.2%. Capacity utilization of crude oil pipelines was the highest ever at 117.8%. Rajasthan crude was introduced for the first time in IndianOil pipelines. Projects IndianOil is currently implementing major projects worth Rs. 46, 000 crore viz. Paradip Grassroots Refinery Project (15 MMT), capacity revamp of FCCU at Mathura, Butadiene Extraction Unit at Panipat, the Styrene Butadiene Rubber plant at Panipat, Paradip- Raipur- Ranchi Pipeline, De-bottlenecking of Salaya-Mathura Pipeline, Paradip-Haldia-Durgapur LPG Pipeline and many more. Research & Development The R&D Centre of IndianOil continued to add value to different facets of the Company s activities. 154 product formulations were developed during the year. The Centre also received 63 original equipment/customer/defence approvals and re-certifications. 15 patents were filed during the year which included 13 Indian patents, one in USA and one in others. Six patents were granted during the year. Two indegeniously developed synthetic aviation 2
lubricants were granted provisional clearance by Center for Military Airworthiness and Certification (CEMILAC). The R&D Centre along with EIL, licensed and commercialized a grass-root 1.2 MMTPA DHDT (Diesel Hydrotreating) unit to Bongaigaon Refinery for producing diesel meeting the Bharat Stage IV specifications. The unit was commissioned, stabilized and is presently running successfully. IndianOil s R&D jointly with EIL provided technical know-how for Retrofitting existing Xylene Isomerization Unit of Bongaigaon Refinery to Light Naptha Isomerization Unit (0.154 MMTPA) for producing Euro-III and Euro- IV MS. IndianOil s R&D Centre has also signed an MoU with the Department of Bio- Technology (DBT) for the setting up an Advanced Bio- Energy Research Centre to carry out research in second and third generation bio-fuels. IndianOil, BHEL & IIT-Rajasthan signed a tripartite Memorandum of Collaboration (MoC) to undertake solar energy research especially in the solar thermal and solar hydrogen areas (5 MW PV). New Businesses Besides consolidation in core areas, IndianOil took big strides in new businesses during the year 2011-12. Integration Initiatives Exploration & Production (E&P) IndianOil has 14 domestic blocks, including two Type-S blocks awarded to IndianOil in NELP-VII round where it is the operator. It also has nine oversees assets in six countries. The Corporation has 3.5% participating interest in the Carbobo development project in Venezuela. The production target of the project is 30,000 bpd in the first year. IndianOil has a share of up to 105 million barrels and the projected recoverable reserve is about 3 billion barrels. Petrochemicals During the year 2011-12, the sale of PROPEL petrochemicals grew by 66% over last year and clocked the highest ever level at 1.55 million tonnes. The highest ever total petrochemical exports was recorded at 70 TMT in 20 markets. The Polymer export to Pakistan via road was 16 MT of PP Raffia was sent from Panipat via Wagah border. 27 Polymer grades were stabilized in the market during the year that included four new High performance Polymer grades and three import substitution grades for large blow moldings. 3
Diversification Initiatives Gas Gas sales grew by an impressive 27% to 2.93 million tones, during the year. IndianOil and TamilNadu Industrial Development Corporation Limited (TIDCO) recently signed the Heads of Agreement for the setting up of LNG regassification terminal at Ennore. The terminal will have a proposed capacity of 5 MMTPA. The Corporation has also signed a MoU with The Dhamra Port Company Limited (DPCL) to undertake a techno-feasibility study for setting up a LNG terminal at Dhamra Port. Beyond Business As a responsible corporate citizen, IndianOil spends upto 2% of its retained profit of the previous year on CSR activities through a multi-faceted approach. In the past four decades, IndianOil has supported innumerable social and community initiatives in India ranging from environmental and health-care projects to social, cultural and educational programmes. As part of the Corporation s Social Responsibility (CSR) programme, there is an IndianOil Scholarship scheme, which provides scholarships to 2600 bright students selected on 'meritcum-means' basis.. The amount of scholarships given to students pursuing professional courses has also been increased. For promotion of sports and games, IndianOil provides sports scholarships to 150 upcoming junior players. IndianOil launched its Rural Mobile HealthCare scheme, Sachal Swasthya Sewa, in association with Wockhardt Foundation in Andhra Pradesh and Uttar Pradesh. The health scheme is centered around Kisan Sewa Kendra and aims to provide free primary healthcare to residents. IndianOil Care Centre has also committed Rs. 66 crores to TATA Medical Centre at Kolkata. Snapshot of Physical Performance ( 2011-12) a) Marketing Domestic Sales 70.1 MMT (growth by 5%) No. of new ROs commissioned 1205 including 708 KSKs, taking the tally to 20, 575 ROs and 4225 KSKs Net addition to LPG connections 50 lakh (total no. of Indane customers: 668 lakh) Indane Distributorships under RGGLVY 377 b) Refineries Group Capacity - 65.7 MMTPA Crude Throughput 55.6 MMT (5% jump) Distillate yield 77.8% Specific Energy Consumption 57 MBN 4
c) Pipelines Total Length 10,909 km Capacity 75.76 MMTPA (+ 10 MMSCMD for R-LNG Pipeline) Throughput 75.5 million tonnes (Products = 27.95 MMT and Crude Oil = 47.58 MMT) d) R&D New patents in the year - 6 Active Patents 215 Total no. of formulations developed - 154 e) Petrochemicals Sales 1.55 million tonnes (66% growth) f) Gas Sales 2.93 million tonnes (27% jump) g) E&P No. of blocks Domestic 14 Overseas 9 Snapshot of Marketing Infrastructure With 37005 touch points, IndianOil owns 52% of the country s marketing infrastructure. LPG Bottling Plants - 89 (48.9%) Petrol / Diesel Outlets 20575 (45.6%) including 4225 KSKs LPG Distributorships 5934 (51.6%) Aviation Fuel Stations 96 (50.5%) SKO/LDO Distributorships 3954 (59.9%) Terminals / Depots 139 (41.6%) Bulk Consumer Pumps 6218 (86%) (Figures in brackets indicate % share in industry) Capital Plan Expenditure Planned expenditure during XI plan Rs. 45,430.3 crore Actual expenditure during XI plan Rs. 48655 crore 5