Indian Oil

By: EconomyWatch   Date: 17 July 2010

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Indian Oil Corporation Limited is an oil extraction and refining major established in 1964. IOL ranked #303 in Forbes Global 2000 list is among top twenty petroleum producers internationally.
Indian Oil and its group companies operate 10 refineries having combined capacity of 60.2 million metric tons per annum (MMTPA). Nationwide, IOL has oil pipeline extending nearly 9300 km which caters to oil requirements of billions of customers across India.

Brief history
Indian Oil Corporation was initiated as Indian Oil Company Limited in 1959. Subsequently in 1964, with merger of Indian Refineries Limited, Indian Oil Corporation was formed. Indian Oil together with its associates holds 40.4% share of total refining capacity, 49% market share of petroleum products, and 69% share of total pipelines in India. IOL group out of 19 refineries in India operates 10 of these. Aggregate refining capacity of these refineries is 1.2 million barrels per day or 60.2 MMTPA (million metric tons per annum).Bongaigaon Refinery and Petrochemicals Limited and Chennai Petroleum Corporation Limited are two subsidiaries of IOL.

Products and services
Indian Oil's primary business is refining and distribution of petroleum products. Production and distribution of liquefied petroleum gas (LPG) is another important business of IOL. With a nationwide network of 17,000 refilling stations and nearly 34,000 selling points, Indian Oil supplies petroleum and diesel to millions of Indian consumers. Among refilling stations there are 7100 pumps catering to needs of consumers consuming in bulk. For effective distribution IOL has set up 101 aviation fuel stations, 166 bulk storage depots, and nearly 90 LPG bottling plants.

IOL meets LPG demand of more than 50 million consumers through a network of 5000 distributors located in almost 2700 markets. Indian Oil also caters to nearly 62% of aviation fuel market.

Financials
Indian Oil's total sales during April 2007 to March 2008 amounted to US $42.68 billion, and net profit amounted to US $ 1.82 billion. Total asset was worth US $25.39 million during that same period.

Awards and recognition
Indian Oil topped Businessworld's 'BW Real 500' list of companies for 2008. Economic Times awarded 1st position to IOL in its prestigious list of companies for 2008.


Current financial crisis
Triggered by plummeting global oil prices and depreciation of Indian rupee, IOL had its profits reduced by more than 286 percent in 2008 as compared to figures of corresponding period in 2007. During July 2007, oil prices had risen to US $147, and current price stands at around US $60 per barrel.


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