COMPANY PROFILE -Indian Oil Corporation (IOC)
Business Sector :Oil and Gas – Public Sector
Operating Geography :India, Asia, Global
About Indian Oil Corporation (IOC) :
Indian Oil Corporation (IOC) Limited is an Indian public sector oil and gas company. It is headquartered in New Delhi. The company's business interests spans the entire hydrocarbon value-chain, comprising refining, pipeline transportation, marketing of petroleum products, exploration and production of crude oil, natural gas and petrochemicals. Indian Oil has seven major business divisions that include Refineries Division, Pipelines Division, Marketing Division, R&D Division, Petrochemicals Division, Exploration & Production (E&P) Division, Explosives and Cryogenics Division. The firm's equity shares are listed on the Bombay Stock Exchange and National Stock Exchange of India. In February 2021, PM Narendra Modi inaugurated Indian Oil's BongaiGoan Refinery in Assam and laid the foundation stone of key projects of the oil and gas sector in Tamil Nadu. In January 2021, Indian Oil received the 15th Edition of the BML Munjal Awards under the Sustained Excellence Category for the year 2020.
Indian Oil's Unique Selling Proposition or USP lies in it being the largest commercial oil company in India and being ranked 117th in the Fortune 500 list of the world's largest companies. Indian Oil's mission statement reads, " To help enrich the quality of life of the community and preserve ecological balance and heritage through a strong environment conscience ".
Indian Oil Corporation (IOC) Revenue :
INR 5,79,379.22 Crore - FY ending 31st March 2020 (y-o-y growth -6.46%)
INR 6,19,965.69 Crore - FY ending 31st March 2019
Competitive Analysis of Indian Oil Corporation (IOC)
The SWOT analysis for Indian Oil Corporation is presented below in a matrix followed by the detailed analysis report
Strengths | Weaknesses |
1. Largest downstream oil pipeline network in India
2. ExxonMobil’s deal expanded delivery channel
3. Brand value is higher than competitors
4. Future ready: BS-VI grade fuel capability and electric fuel stations
5. First in industry and the only supplier of 100 Octane petrol in India
| 1. Unable to meet under-recoveries for LPG business |
Opportunities | Threats |
1. Saudi Aramco’s $44M refinery project in India
2. GOI’s initiatives to promote OMCs with investments & attractive subsidies
3. Petrol consumption has risen by 4.5% in 2020 in India
| 1. Competition in the OMC sector
2. Oil and gas sectors’ extreme sensitivity to economic and global political volatility
3. Energy transition in sector is happening faster & countries declared ICE cars ban by 2030
|
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Detailed SWOT Analysis of Indian Oil Corporation (IOC)
Strength
1. Largest downstream oil pipeline network in India: IndianOil is equipped with complete BS-VI fuel capabilities; with its 80.2 million metric tons per year downstream oil through 14,670 km country wide pipeline, it has secured first position in being the largest downstream oil provider in India. It can reach customers in every corner of India with 50 thousand customer touchpoints and more than 29 thousand fuel stations. For the rural areas, the Indian oil and gas major, has automated the entire process of quality assurance and provides service through 8,515 Kisan Seva Kendra. IndianOil through its Indane LPG reaches out to about 13.11 crore households in India with the help of 12,450 distributors. It has a capacity of up to 118 storage facilities, 4 LPG bottling plants, besides 119 aviation fuel stations and 13 lube blending plants. All these together make IndianOil the largest Oil supplier in India.
2. ExxonMobil’s deal expanded delivery channel: IndianOil’s MoU with ExxonMobil, is an important milestone for the Indian conglomerate, as it will allow it to expand its delivery channel beyond the regular pipeline structure. ExxonMobil will provide help with containerized gas transportation; this will help deliver gas outside its reach network and as well promote clean fuel through the country. Further, this deal will increase gas’ share in energy availability in India to 15% from the current 6.2% in a decade. Though this is significantly lower than current global shares of 24%, but this will accelerate gas consumption for the industry as well as household usage. This move will give IndianOil a competitive advantage and market power for being the only oil marketing company to go beyond pipelined route to transport gas in containerized and liquefied form to downstream channel in unreachable areas.
The remaining section under "Strength"is available only in the 'Complete Report' on purchase.
Weakness
This section is available only in the 'Complete Report' on purchase.
Opportunity
This section is available only in the 'Complete Report' on purchase.
Threats
This section is available only in the 'Complete Report' on purchase.
The PESTLE analysis for Indian Oil Corporation is presented below in a table followed by the detailed analysis report
Political | Economical |
1. Global trade disputes have put oil business in uncertainty.
2. Sanctions on two major suppliers has created supply-demand constraints.
| 1. Investors high expectations even with the economic slowdown puts pressure on OMCs.
2. IndianOil has announced biggest ever buyback of shares worth of INR 4,400 crores.
|
Social | Technological |
1. Mega Privatization of OMCs can decommission GOI initiatives for poor. | 1. Leveraging digital technology to optimize operations
2. Fast paced R&D for BS-VI and 100 Octane petrol is introducing next generation oil industry to world.
|
Legal | Environmental |
1. Being a government entity IOC is obliged to provide subsidy to cooking gas customers. | 1. IOC has heavy focus on sustainability with pollution control, water management.
2. Adding value to environment with Initiatives such as “Green belts and ecological parks.”
|
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Detailed Pestle Analysis of Indian Oil Corporation (IOC)
Political
This section is available only in the 'Complete Report' on purchase.
Economic
This section is available only in the 'Complete Report' on purchase.
Social
This section is available only in the 'Complete Report' on purchase.
Technological
1. Leveraging digital technology to optimize operations: Being the largest OMC in India, IndianOil has very complex IT needs like ERP operations, software development, procurement of hardware, network, etc. It provides automated gas services to almost 55 cities in India with 9400 gas fuel stations; the seamless authentication is provided with Aadhar card’s Unique Identification Authority of India (UIDAI). IOCL is also looking to integrate COTS service, a cloud-based services, AI, IoT etc. where they will host CRM services to benefit from agility. Recently, IOCL has announced a partnership with IBM to digitalize its 12,400 distribution centers that cover 130 million customers. The IndianOil One mobile app and portal are part of Indian Oil's Project ePIC, an integrated platform for Customer Relationship Management (CRM) and Distribution Management System (DMS).
The remaining section under "Technological"is available only in the 'Complete Report' on purchase.
Legal
This section is available only in the 'Complete Report' on purchase.
Environmental
This section is available only in the 'Complete Report' on purchase.
Major Competitors :
- ONGC
- BPCL
- HPCL
- Total S.A
- HPCL
- Gail
- Adani Gas
- Oil India Ltd
- Gujarat gas
- Mahanagar Gas
Major Brands :
- Indane (LPG)
- IndianOil (Mauritius) Ltd.
- CPCL
- Lanka IOC PLC
- IOC Middle East FZE
- SERVO lubricants
- XTRAPREMIUM petrol
- XTRAMILE diesel
- PROPEL petrochemicals
On purchase the Indian Oil Corporation SWOT and PESTLE Analysis PDF report will reach you within minutes. At rare times, a slight delay not exceeding 1 hour might be caused.
TABLE OF CONTENTS
DELIVERY AND FORMAT
WHY CHOOSE US?
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Check Out Analysis of Other Relevant Companies
References used in Indian Oil Corporation (IOC) SWOT & PESTLE Analysis Report
1. 2021 oil and gas industry outlook - https://www2.deloitte.com/us/en/pages/energy-and-resources/articles/oil-and-gas-industry-outlook.html
2. Indian Oil retains the top spot as India’s highest ranked PSU in Fortune ‘Global 500’ listing for 2020
3. IndianOil Financial Performance FY 2019-20 (Standalone) - https://iocl.com/Financial_Performance_20/
4. Integrated Annual Report 2019-20 - https://iocl.com/download/IndianOil-Annual-Report-2019-20.pdf
5. Fostering a future full of green energy - https://iocl.com/download/IndianOil_Corporate_brochure-2018.pdf
The detailed complete set of references are available on request in the 'Complete report' on purchase.
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Indian Oil Corporation SWOT and PESTLE Analysis has been conducted by Rakesh Shewale and reviewed by senior analysts from Barakaat Consulting.
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