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Author of the report: Amit Roy

Company name: Indian Oil Corporation Limited (MD)


34A, Nirmal Chandra Street,
Kolkata – 700013
Phone: 2236-8841/8857
Fax: (033)2234-8350
Website: www.iocl.com

Contact Details

Amit Roy
E-Mail: the_cloud69@yahoo.com
MBA – 2nd year (2009-2011)
Registration No – 092310710003
Camellia School of Business Management
Digberia (Babu Road), Madhyamgram, Kolkata – 700129
Tel: +91 33 6455 1145 / 1146 / 1660
Mobile: +91 9830883107
E-mail: csbm@vsnl.net

Submitted by: Amit Roy


DECLARATION

I, Amit Roy, hereby declare that the facts and findings presented in this report
entitled “SURVEY ON USES OF JUTE BATCHING OIL (JBO) AND ASSESSING
FUTURE POTENTIAL OF THE PRODUCT” is prepared by me. The training is done in
Indian Oil Corporation Limited (Marketing Division), Kolkata Divisional Office
and submitted to Camellia School of Business Management, Kolkata in
fulfillment of MBA course curriculum is true to the best of my knowledge and
belief. It has not been submitted to any other University or published in any
magazine or journals. It is purely based on research study.

PLACE: KOLKATA

DATE: 10.08.2010

AMIT ROY

Submitted by: Amit Roy


ACKNOWLEDGEMENT
The summer project gave me a wonderful opportunity to attain the industrial
knowledge and to venture into the world of the first hand information from the
pages of MBA course. I hereby take the opportunity to express my deepest and
heartiest gratitude to all of them without whose help and co-operation this
project would have been incomplete.

I would like to express my gratitude to my project guide Mrs. Rina Ghosh, Sr.
Manage (CS), Indian Oil Corporation Limited, Kolkata, who guided me
throughout the project and whose constant co-operation, experience and
knowledge was an inspiration for me.

I express my heartiest thanks to Mr. Debasish Bhattacharya (chief T & D


Manager) Indian Oil Corporation Limited, Kolkata for giving me an opportunity to
undertake my marketing research project as a part of my MBA degree.

Last but not the least I would like to thank Prof. Debabrata Chattopadhyay and
Prof. Soumitra Banarjee of Camellia School of Business Management, Kolkata,
for their guidance and encouragement in completing the project.

Amit Roy

Camellia School of Business Management

Submitted by: Amit Roy

PREFACE
A project is planned undertaking especially by a student for presentation of result
of specific time. The course of MBA being an out professional one is incomplete
without the practical knowledge. Therefore I undertook two month summer
training at Indian Oil Corporation Limited, (Marketing Division), Kolkata. In due
course I prepared my project report entitled, “SURVEY ON USES OF JUTE
BATCHING OIL (JBO) AND ASSESSING FUTURE POTENTIAL OF THE PRODUCTS”.

Thus this training is essential to get acquainted with appreciation of core concepts
underlying the disciplines of MARKETING. Even company needs to know its
market positions and accordingly chalk out strategies for better performance. It
has to have adequate knowledge of fact about its market performance, so I have
prepared this project for Indian Oil Corporation Limited.

One of the main objectives of this type of project is to give an opportunity in


identifying the management’s business challenges, their strength, weakness,
opportunities and threats, analyse them with their recommendation which must
be relevant to problem. It was a great experience having undergone training
process in Indian Oil Corporation Limited, Kolkata through which I gather a wide
variety of knowledge and information.

I tried my best to do justice and be honest in analyzing the topic but “do error is
human” and I am not an exception to it. Hence any weakness and shortcomings
are unintentional.

Submitted by: Amit Roy

CONTENTS
INTODUCTION TO INDIAN OIL SECTOR------------------------------ 1
Likely Strategic Initiatives
The Indian Scenario
The Indian Upstream Sector
The Indian Downstream Sector
The Indian Gas Sub-Sector
The Global Scenario
WHAT DOES PETROLEUM MEAN? ----------------------------------- 5
Petroleum is a fossil fuel
Petroleum is non-renewable
We drill oil wells
We use petroleum every day
Petroleum can pollute
ORIGIN OF PETROLEUM
PHYSICAL PROPERTIES OF PETROLEUM BASED OIL
NATURAL GAS AND TECHNOLOGY
ADVANCES IN THE EXPLORATION AND PRODUCTION SECTOR
3-D and 4-D Seismic Imaging
CO2-Sand Fracturing
Coiled Tubing
Measurement While Drilling
Slim hole Drilling
Offshore Drilling Technology
Offshore Production - NASA of the Sea
LIQUIFIED NATURAL GAS
NATURAL GAS FUEL CELLS
INTRODUCTION TO IOCL ------------------------------------------- 19
IOCL- An Important Pillar in Indian Economy
ORGANISATIONAL STRUCTURE
IOCL’s dominance in Downstream Oil Sector
VISSION
MISSION
VALUES
OBJECTIVES
SWOT ANALYSIS ---------------------------------------------------- 28
STRENGTHS
WEAKNESSES
OPPORTUNITIES
THREATS
OBLIGATIONS ------------------------------------------------------- 30
INDIAN OIL MAJOR UNIT------------------------------------------------ 31
DISTINCTIONS ---------------------------------------------------------- 33
AWARDS & ACCREDITATION ---------------------------------------- 35
SERVICES --------------------------------------------------------------- 38
PPIPELINE
REFINING
MARKETING
TRAINING
RESEARCH & DEVELOPMENT
LUBRICANT RESEARCH

BRANDS ------------------------------------------------------------------- 46
PRODUCTS ------------------------------------------------------------- 47
Industrial lubricating oil
Spindle Oil
Machinery Oil
Textile Oil (Biodegradable & Eco-Friendly)
Refrigeration Compressor Oil
Heat Transfer Fluids
Rust preventives
Rubber Extender Oil
Industrial Greases
Complex Greases
Chain Grease
Graphite Grease
Cement Plant Greases
Indane Gas
AutoGas
Natural Gas
Petrol/Gasoline
Diesel/Gas oil
Kerosene
Bitumen
Benzene
Carbon Black Feed Stock (CBFS)
Food Grade Hexane
Micro Crystalline Wax
Mineral Turpentine Oil
Paraffin Wax
Propylene
Raw Petroleum Coke
Crude oil

A BRIEF OVERVIEW ON USES OF JBO IN JUTE MILLS------------------- 71


Jute Batching Oil
SPECIFICATION
INTRODUCTION ON JUTE MILL
FLOWCHART ON PROCESSING OF JUTE IN JUTE MILL
Jute Manufacturing in Jute Mills
Jute Batching Oil is used to Softening Jute Fibre

RESEARCH DESIGN --------------------------------------------------------------- 84

FACT FROM JUTE MILLS VISITED


USES OF JBO / MONTH (SAMPLE SIZE 25)
HOW DOES JBO SERVE THE INDUSTRY
ANY ALTERNATIVE PRODUCT USED IN PLACE OF JBO
IN FUTURE JBO CONSUMTION INCREASE
WASTAGE % OF JBO ON DELIVERY & USES
IF JBO’S/UNIT PRICE INCREASE IT IS AFFORDABLE
CONCLUSION ---------------------------------------------------------------------- 89
RECOMMENDATION ------------------------------------------------------------- 90
BIBLIOGRAPHY -------------------------------------------------------------------- 90
ORGINAL SURVEY QUESTIONNAIRE ----------------------------------------- 91
INTRODUCTION TO INDIAN OIL SECTOR
The Global Scenario:-
Globally, the oil & gas sector is dominated by certain large private companies who
have a presence in almost all segments of the oil & gas value chain. Historically,
oil price has been the single most important challenge facing the global oil
industry. The problem is all the more acute as the large private companies
account for only a small share of world oil production even as oil prices remain
unpredictable and prone to wide fluctuations. Given this backdrop, global oil
majors are now increasingly benchmarking their production costs against the oil
production costs of the OPEC (Organization of Petroleum Exporting Countries),
and increasingly relying on technological innovations and other cost cutting
measures to lower their own production costs. The other factors influencing their
decisions are the likely fall in oil prices after March 2000, rising demand for gas
and lighter petroleum products, and the volatile and unpredictable nature of
refining margins.
The Indian Scenario:-
Unlike their global counterparts, Indian oil & gas companies have so far been
operating in specific segments of the value chain. Oil & gas exploration, crude oil
refining, distribution and marketing of petroleum products, and natural gas
distribution are the key sub-sectors of the Indian oil & gas sector. The total sales
turnover of this sector as a whole was around Rs. 1,500 billion as on March 31,
1999. The Indian oil & gas sector has historically been a regulated sector,
dominated by Government undertakings. The regulation took the form of the
Administered Pricing Mechanism (APM) under which the returns on investment
were guaranteed. But now, with the APM being dismantled in phases and private
players gaining a presence in the Indian oil & gas sector, the existing public sector
oil companies are getting exposed to market forces and competition.

Submitted by: Amit Roy 1


The Indian Upstream Sector:-
For the upstream players (the crude oil producers), the linkage to international
crude oil prices implies volatility in earnings. While a rise in international crude oil
prices would translate into a positive contribution to the bottom-line, a decline in
the international prices, on the other hand, would exert pressure on the margins
of all upstream companies. The national oil companies would, however, is
protected from the downside risk by the floor price fixed by the government. But
if the floor price is removed and the international oil prices drop to levels lower
than the cost of production, even the national oil companies would require
government intervention to protect their bottom-line. What aggravates the risk
further is the fact that declining oil production and stagnating reserves dictate
that the upstream companies venture into exploration areas that have a high-risk-
high-return profile (like deep water blocks). And this has implications for future
exploration & production (E&P) costs. Given the emerging scenario, expects the
strategies of the upstream players to focus on: use of better recovery techniques;
employment of cost cutting measures; entry into high-risk-high-return areas (with
the assumption that oil prices will not fall below the cost of production);
integration into downstream areas; partnering; venturing into other geographical
regions; and, undertaking organizational restructuring.
The Indian Downstream Sector:-
The phased dismantling of the APM has exposed the Indian downstream players
(refiners and marketers of petroleum products) to market forces. The refining
margins of the Indian refineries are now linked to the international refining
margins. A fluctuation in the international prices of crude oil/ product translates
into a variation in the domestic margins (although they are, to a large extent,

Submitted by: Amit Roy 2


protected by the positive net duty protection). In the first 18 months of decontrol
(fiscal year 1999 and first half of fiscal year 2000), the profitability of Indian
refineries has increased (and is expected to increase further) as their margins
have increased following higher duty protection and linkage of crude and product
prices with international prices. However, on the flip side, the expected surplus in
the domestic market may limit this margin expansion. The other factors
influencing the profitability of Indian refineries in the deregulated scenario would
be refinery configuration, operating costs, and refinery location. The ownership of
marketing and distribution infrastructure would be of strategic importance and
would enhance profitability as the marketing sector is decontrolled. While the
profitability of the integrated players would be higher and more resilient to
economic troughs, the pure refining companies would find it difficult to sustain
profitability in a decontrolled scenario. Accordingly, the pure refining and
marketing companies are expected to be merged with the oil majors. A full
decontrol of the marketing sector is likely to lead to severe competition among
the various players in the industry, and a greater focus on branding and product
differentiation. Given the changes taking place, expects the strategies of
downstream players to focus on: strengthening import infrastructure; enhancing
scale of operations; upgrading processing facilities; implementing environmental
projects; strengthening marketing and distribution infrastructure and promoting
brands; entering into strategic alliances; venturing into other areas of the energy
value chain for optimizing the risk- return profile; and restructuring the
organization.

The Indian Gas Sub-Sector:-


The share of natural gas in India's energy mix has increased more than three
times since the early 1980s. Energy efficiency, multiplicity of applications, and

Submitted by: Amit Roy 3


Environment neutrality is the key factors that are likely to propel further rise in
demand for gas in India. The increase in demand could come both from the
existing uses of natural gas and from newer applications. A rising demand for gas
has implications on the supply level. An increased thrust on liquefied natural gas
imports would signal positive developments on the supply front. Also expects the
decontrol of the oil sector to enable the existing oil companies to pursue gas E&P
activities more actively. The Gas Authority of India Limited, with a monopoly in
natural gas distribution, is likely to benefit from the expected rise in natural gas
supplies. Besides, its exposure to price risks would be minimal because of the
fixed nature of natural gas transportation tariffs.

Likely Strategic Initiatives: - Response to the phased deregulation, the strategic


initiatives of
The various players in the energy value chain would focus on the following
factors. Product mix. This will have to be in line with market demand. Technology
would play a major role in influencing the product mix. Strategic initiatives would
also impact product mix. Cost competitiveness. Technological advancements and
scale of operations would have an impact on operating costs. Infrastructure/
Logistics. The ownership of infrastructure for sourcing crude oil and the logistics
for distributing finished products would have a considerable impact on operating
costs. Integration into different elements of the value chain would be imperative
for bringing synergetic benefits, reducing volatility in earnings, and enhancing
value addition. Brand building, pricing, and packaging. These would be used as
tools to deliver greater value to customers.

Submitted by: Amit Roy 4


WHAT DOES PETROLEUM MEAN?
Petroleum is a liquid that is found underground. Sometimes we call it oil. Oil can
be as thick and black as tar or as thin as water. Petroleum has a lot of energy. We
can turn it into different fuels- like gasoline, kerosene, and heating oil. Most
plastics and inks are made from petroleum, too.
People have burn oil for a long time. Long ago, they didn’t dig for it. They
gathered that seeped from under the ground into ponds. It floated on the water.

Petroleum is a fossil fuel:

Long before the dinosaurs, oceans covered most of the earth. They were filled
with tiny sea animals and plants. As the plants and animals died they sank to the
ocean floor. Sand and sediment covered them and turn into sedimentary rock.
Millions of years passed. The weight of the rock and heat from the earth turned
them into petroleum.
Petroleum is called a fossil fuel because it was made from the remains of plants
and animals. The energy in petroleum came from the energy in the plants and
animals. That energy came from the sun.

Petroleum is non-renewable:

The petroleum we use today was made millions of years ago. It took millions of
years to form. We can’t make more in a short time. That’s why we call petroleum
non-renewable. We import more than half the oil we use from other countries

Submitted by: Amit Roy 5


We drill oil wells.
Petroleum is buried underground in tiny pockets in rocks. We drill oil wells in to
the rocks to pump out the oil. A few wells are more than two miles deep. A lot of
oil is under the oceans along our shores. Oil rigs that can float are used to reach
this oil. After the oil is pumped to the surface, it is send to refineries. At the
refineries, it is separated into different types of oil and made into fuels. Most of
the oil is made into gasoline. The oil is moved from one place to another through
pipelines and by ships and trucks.

Submitted by: Amit Roy 6


We use petroleum every day.

What would we do without petroleum? Our country would come to a stop! Most
of our cars, trucks, planes are powered by fuel made from oil.
Our factories use oil to make plastics and paints, medicines and soaps. We even
burn oil to make electricity. We use more petroleum than any other energy
source.

Petroleum can pollute. Petroleum keeps us going, but it can damage our
environment. Burning fuels made from oil can pollute the air. Pollution from cars
is a big problem in many parts of the country. Oil companies are making cleaner
gasoline and other fuels every year. Oil can pollute soil and water injuring the
animals that live in the area. Oil companies work hard to drill and ship oil as safely
as possible. They try to clean up any oil that spills.

Submitted by: Amit Roy 7


ORIGIN OF PETROLEUM
During the past 600 million years incompletely decayed plant and animal remains
have become buried under thick layers of rock. It is believed that petroleum
consists of the remains of these organisms but it is the small microscopic plankton
organism remains that are largely responsible for the relatively high organic
carbon content of fine-grained sediments like the Chattanooga shale which are
the principle source rocks for petroleum. Among the leading producers of
petroleum are Saudi Arabia, Russia, the United States (chiefly Texas, California,
Louisiana, Alaska, Oklahoma, and Kansas), Iran, India, China, Norway, Mexico,
Venezuela, Iraq, Great Britain, the United Arab Emirates, Nigeria, and Kuwait. The
largest known reserves are in the Middle East

PHYSICAL PROPERTIES OF PETROLEUM BASED OIL


Petroleum-based oil describes a broad range of natural hydrocarbon-based
substances and refined petroleum products, each having a different chemical
composition. As a result, each type of crude oil and refined product has distinct
physical properties that affect the way oil spreads and breaks down, the hazard it
may pose to marine and human life, and the likelihood that it will pose a threat to
natural and man-made resources. For example, light refined products, such as
gasoline and kerosene, spread on water surfaces and penetrate porous soils
quickly. Fire and toxic hazards are high, but the products evaporate quickly and
leave little residue. Alternatively, heavier refined oil products may pose a lesser
fire and toxic hazard and do not spread on water as readily. Heavier oils are more
persistent, however, and may present a greater remediation challenge.
The rate at which an oil spill spreads will determine its effect on the environment.
Most oils tend to spread horizontally into a smooth and slippery surface, called a
slick, on top of the water. Factors which affect the ability of an oil spill to spread
include surface tension, specific gravity, and viscosity.

Submitted by: Amit Roy 8


NATURAL GAS AND TECHNOLOGY
Over the past thirty years, the oil and natural gas industry has transformed into
one of the most technologically advanced industries in the United States. New
innovations have reshaped the industry into a technology leader, in all segments
of the industry. This section will discuss the role of technology in the evolution of
the natural gas industry, focusing on technologies in the exploration and
production sector, as well as a few select innovations that have had a profound
effect on the potential for natural gas.

In recent years, demand for natural gas has grown substantially. However, as the
natural gas industry in INDIA becomes more mature, domestically available
resources become harder to find and produce. As large, conventional natural gas
deposits are extracted, the natural gas left in the ground is commonly found in
less conventional deposits, which are harder to discover and produce than has
historically been the case. However, the natural gas industry has been able to
keep pace with demand, and produce greater amounts of natural gas despite the
increasingly unconventional and elusive nature. The ability of the industry to
increase production in this manner has been a direct result of technological
innovations. Below is a brief list of some of the major technological advancements
that have been made recently:

Submitted by: Amit Roy 9


ADVANCES IN THE EXPLORATION AND PRODUCTION SECTOR

Technological innovation in the exploration and production (E&P) sector has


equipped the industry with the equipment and practices necessary to continually
increase the production of natural gas to meet rising demand. These technologies
serve to make the exploration and production of natural gas more efficient, safe,
and environmentally friendly. Despite the fact that natural gas deposits are
continually being found deeper in the ground, in remote, inhospitable areas that
provide a challenging environment in which to produce natural gas, the
exploration and production industry has not only kept up its production pace, but
in fact has improved the general nature of its operations. Some highlights of
technological development in the exploration and production sector include:

• 22,000 fewer wells are needed on an annual basis to develop the same amount
of oil and gas reserves as were developed in 1985.
• Had technology remained constant since 1985, it would take two wells to
produce the same amount of oil and natural gas as one 1985 well. However,
advances in technology mean that one well today can produce two times as much
as a single 1985 well.
• Drilling wastes have decreased by as much as 148 million barrels due to
increased well productivity and fewer wells.
• The drilling footprint of well pads has decreased by as much as 70 percent dueto
advanced drilling technology, which is extremely useful for drilling I sensitive
areas.
• By using modular drilling rigs and slim hole drilling, the size and weight of
drilling rigs can be reduced by up to 75 percent over traditional drilling rigs,
reducing their surface impact.
• Had technology, and thus drilling footprints, remained at 1985 levels, today's
drilling footprints would take up an additional 17,000 acres of land.
• New exploration techniques and vibration sources mean less reliance on
explosives, reducing the impact of exploration on the environment.
Some of the major recent technological innovations in the exploration and
production sector include:

Submitted by: Amit Roy 10


Advanced 3-D Seismic Imaging

•3-D and 4-D Seismic Imaging - The development of seismic imaging in three
dimensions greatly changed the nature of natural gas exploration. This technology
uses traditional seismic imaging techniques, combined with powerful computers
and processors, to create a three-dimensional model of the subsurface layers. 4-D
seismology expands on this, by adding time as a dimension, allowing exploration
teams to observe how subsurface characteristics change over time. Exploration
teams can now identify natural gas prospects more easily; place wells more
effectively, reduce the number of dry holes drilled, reduce drilling costs, and cut
exploration time. This leads to both economic and environmental benefits.

• CO2-Sand Fracturing - Fracturing techniques have been used since the 1970s to
help increase the flow rate of natural gas and oil from underground formations.
CO2-Sand fracturing involves using a mixture of sand propants and liquid CO2 to
fracture formations, creating and enlarging cracks through which oil and natural
gas may flow more freely. The CO2 then vaporizes, leaving only sand in the
formation, holding the newly enlarged cracks open. Because there are no other
substances used in this type of fracturing, there are no 'leftovers' from the
fracturing process that must be removed. This means that, while this type of
fracturing effectively opens the formation and allows for increased recovery of oil
and natural gas, it does not damage the deposit, generates no below ground
wastes, and protects groundwater resources.

Submitted by: Amit Roy 11


• Coiled Tubing - Coiled tubing technologies replace the traditional rigid, jointed
drill pipe with a long, flexible coiled pipe string. This greatly reduces the cost of
drilling, as well as providing a smaller drilling footprint, requiring less drilling mud,
faster rig set up, and reducing the time normally needed to make drill pipe
connections. Coiled tubing can also be used in combination with slim hole drilling
to provide very economic drilling conditions, and less impact on the environment.

• Measurement While Drilling - Measurement-While-Drilling (MWD) systems


allow for the collection of data from the bottom of a well as it is being drilled. This
allows engineers and drilling team’s access to up to the second information on
the exact nature of the rock formations being encountered by the drill bit. This
improves drilling efficiency and accuracy in the drilling process, allows better
formation evaluation as the drill bit encounters the underground formation, and
reduces the chance of formation damage and blowouts.

• Slim hole Drilling - Slim hole drilling is exactly as it sounds; drilling a slimmer
hole in the ground to get to natural gas and oil deposits. In order to be considered
slim hole drilling, at least 90 percent of a well must be drilled with a drill bit less
than six inches in diameter (whereas conventional wells typically use drill bits as
large as 12.25 inches in diameter). Slim hole drilling can significantly improve the
efficiency of drilling operations, as well as decrease its environmental impact. In
fact, shorter drilling times and smaller drilling crews can translate into a 50
percent reduction in drilling costs, while reducing the drilling footprint by as much
as 75 percent. Because of its low cost profile and reduced environmental impact,
slim hole drilling provides a method of economically drilling exploratory wells in
new areas, drilling deeper wells in existing fields, and providing an efficient means
for extracting more natural gas and oil from undeleted fields.

• Offshore Drilling Technology - The offshore oil and gas production sector is
sometimes referred to as 'NASA of the Sea', due to the monumental
achievements in deepwater drilling that have been facilitated by state of the art
technology. Natural gas and oil deposits are being found at locations that are
deeper and deeper underwater. Whereas offshore drilling operations used to be
some of the most risky and dangerous undertakings, new technology, including
improved offshore drilling rigs, dynamic positioning devices and sophisticated

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navigation systems are allowing safe, efficient offshore drilling in waters more
than 10,000 feet deep.

Offshore Production - NASA of the Sea


Offshore Drilling Technology - The offshore oil and gas production sector is
sometimes referred to as 'NASA of the Sea', due to the monumental
achievements in deepwater drilling that have been facilitated by state of the art
technology. Natural gas and oil deposits are being found at locations that are
deeper and deeper underwater. Whereas offshore drilling operations used to be
some of the most risky and dangerous undertakings, new technology, including
improved offshore drilling rigs, dynamic positioning devices and sophisticated
navigation systems are allowing safe, efficient offshore drilling in waters more
than 10,000 feet deep. The above technological advancements provide only a
snapshot of the increasingly sophisticated technology being developed and put
into practice in the exploration and production of natural gas and oil. New
technologies and applications are being developed constantly, and serve to
improve the economics of producing natural gas, allow for the production of
deposits formerly considered too unconventional or uneconomic to develop, and
ensure that the supply of natural gas keeps up with steadily increasing demand.
Sufficient domestic natural gas resources exist to help fuel the U.S. for a
significant period of time, and technology is playing a huge role in providing low-
cost, environmentally sound methods of extracting these resources. Two other
technologies that are revolutionizing the natural gas industry include the
increased use of liquefied natural gas, and natural gas fuel cells. These
technologies are discussed below.
Submitted by: Amit Roy 13
LIQUIFIED NATURAL GAS

Cooling natural gas to about -260°F at normal pressure results in the


condensation of the gas into liquid form, known as Liquefied Natural Gas (LNG).

LNG Delivery Facility with Tanker.

LNG can be very useful, particularly for the transportation of natural gas, since
LNG takes up about one six hundredth the volume of gaseous natural gas. While
LNG is reasonably costly to produce, advances in technology are reducing the
costs associated with the liquefaction and re-gasification of LNG. Because it is
easy to transport, LNG can serve to make economical those stranded natural gas
deposits for which the construction of pipelines is uneconomical LNG, when
vaporized to gaseous form, will only burn in concentrations of between 5 and 15
percent mixed with air. In addition, LNG, or any vapor associated with LNG, will
not explode in an unconfined environment. Thus, in the unlikely event of an LNG
spill, the natural gas has little chance of igniting an explosion. Liquefaction also
has the advantage of removing oxygen, carbon dioxide, sulfur, and water from the
natural gas, resulting in LNG that is almost pure methane. LNG is typically
transported by specialized tanker with insulated walls, and is kept in liquid form

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by auto refrigeration, a process in which the LNG is kept at its boiling point, so
that any heat additions are countered by the energy lost from LNG vapor that is
vented out of storage and used to power the vessel. The increased use of LNG is
allowing for the production and marketing of natural gas deposits that were
previously economically unrecoverable. Although it currently accounts for only
about 1 percent of natural gas used in the United States, it is expected that LNG
imports will provide a steady, dependable source of natural gas for U.S.
consumption.

NATURAL GAS FUEL CELLS

Fuel cells powered by natural gas are an extremely exciting and promising new
technology for the clean and efficient generation of electricity. Fuel cells have the
ability to generate electricity using electrochemical reactions as opposed to
combustion of fossil fuels to generate electricity. Essentially, a fuel cell works by
passing streams of fuel (usually hydrogen) and oxidants over electrodes that are
separated by an electrolyte. This produces a chemical reaction that generates
electricity without requiring the combustion of fuel, or the addition of heat as is
common in the traditional generation of electricity. When pure hydrogen is used
as fuel, and pure oxygen is used as the oxidant, the reaction that takes place
within a fuel cell produces only water, heat, and electricity. In practice, fuel cells
result in very low emission of harmful pollutants, and the generation of high-
quality, reliable electricity. The use of natural gas powered fuel cells has a number
of benefits, including:

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Clean Electricity - Fuel cells provide the cleanest method of producing
electricity from fossil fuels. While a pure hydrogen, pure oxygen fuel cell
produces only water, electricity, and heat, fuel cells in practice emit only
trace amounts of sulfur compounds, and very low levels of carbon dioxide.
However, the carbon dioxide produced by fuel cell use is concentrated and
can be readily recaptured, as opposed to being emitted into the
atmosphere.

Distributed Generation - Fuel cells can come in extremely compact sizes,


allowing for their placement wherever electricity is needed. This includes
residential, commercial, industrial, and even transportation settings.

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Dependability - Fuel cells are completely enclosed units, with no moving
parts or complicated machinery. This translates into a dependable source
of electricity, capable of operating for thousands of hours. In addition, they
are very quiet and safe sources of electricity. Fuel cells also do not have
electricity surges, meaning they can be used where a constant, dependably
source of electricity is needed.

Efficiency - Fuel cells convert the energy stored within fossil fuels into
electricity much more efficiently than traditional generation of electricity
using combustion. This means that less fuel is required to produce the
same amount of electricity. The National Energy Technology Laboratory
estimates that, used in combination with natural gas turbines, fuel cell
generation facilities can be produced that will operate in the 1 to 20
Megawatt range at 70 percent efficiency, which is much higher than the
efficiencies that can be reached by traditional generation methods within
that output range.

The generation of electricity has traditionally been a very polluting, inefficient


process. However, with new fuel cell technology, the future of electricity
generation is expected to change dramatically in the next ten to twenty years.
Research and development into fuel cell technology is ongoing, to ensure that the
technology is refined to a level where it is cost effective for all varieties of electric
generation requirements.

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Types of extracted natural gas

Based on its composition, extracted (biological) natural gas belongs to one of four
basic groups:

1. Dry (weak) natural gas contains a high percentage of methane (95-98%) and
very small amount higher hydrocarbons,

2. Wet (rich) natural gas contains higher hydrocarbons in addition to methane,

3. Acidic natural gas has a high content of sulfane (H2S), which must be removed
in processing plants before natural gas is supplied to the distribution system,

4. Natural gas with a high content of inert gases, i.e. mainly carbon dioxide and
nitrogen. As to higher hydrocarbons, natural gas contains mainly saturated
hydrocarbons, which under normal conditions exist in gaseous form – ethane,
propane, and butane. Natural gas from some deposits also contains hydrocarbons
that are in a liquid state under normal conditions (pentane and higher) and are
separated as a gaseous condensate during processing. Their mixture is called
gasoline or biological petrol. At present, the most widely used natural gas is the
so-called oil-based natural gas, which formed together with crude oil. In most
cases, oil-based natural gas extracted together with crude oil is wet natural gas.
Some deposits contain no crude oil, but only dry natural gas.

Besides oil-based gas, carbon-based natural gas is used, which is removed from
coal during the mining process for safety reasons. This natural gas is always dry.
Carbon-based natural gas is used in areas with anthracite mining. Although the
deposits of oil-based natural gas are sufficient, research is underway into ways of
producing energy when all gas deposits will have been exhausted. One possibility
is producing substitute natural gas through coal gasification.

Submitted by: Amit Roy 18


INTRODUCTION TO IOCL

IndianOil began operation in 1959 as Indian Oil Company Ltd. The Indian Oil
Corporation was formed in 1964, with the merger of Indian Refineries Ltd. Indian
Oil Corporation, or IndianOil, (BSE: 530965) is an Indian state-owned oil and gas
company. It is India’s largest commercial enterprise, ranking 105th on the Fortune
Global 500 list in 2009. IndianOil and its subsidiaries account for a 47% share in
the petroleum products market, 40% share in refining capacity and 67%
downstream sector pipelines capacity in India. The Indian Oil Group of Companies
owns and operates 10 of India's 19 refineries with a combined refining capacity of
60.2 million metric tons per year.

IndianOil operates the largest and the widest network of fuel stations in the
country, numbering about 17606 (15557 regular ROs & 2049 Kissan Sewa Kendra).
It has also started Auto LPG Dispensing Stations (ALDS). It supplies Indane cooking
gas to over 47.5 million households through a network of 4,990 Indian
distributors. In addition, IndianOil's Research and Development Center (R&D) at
Faridabad supports, develops and provides the necessary technology solutions to
the operating divisions of the corporation and its customers within the country
and abroad. Subsequently, IndianOil Technologies Limited - a wholly owned
subsidiary, was set up in 2003, with a vision to market the technologies developed
at IndianOil's Research and Development Center. It has been modeled on the R&D
marketing arms of Royal Dutch Shell and British Petroleum. IndianOil's product
range covers petrol, diesel, LPG, auto LPG, aviation turbine fuel, lubricants,
naphtha, bitumen, paraffin, kerosene etc. Xtra Premium petrol, Xtra Mile diesel,
Servo lubricants, Indane LPG, Autogas LPG, Indian Oil Aviation are some of its
prominent brands. Recently Indian Oil has also introduced a new business line of
supplying LNG (liquefied natural gas) by cryogenic transportation. This is called
"LNG at Doorstep". LNG headquarters are located at the Scope Complex, Lodhi
Road, Delhi.

Submitted by: Amit Roy 19


IOCL- An Important Pillar in Indian Economy

India’s largest commercial enterprise and flagship national oil company and
downstream petroleum major
First Rank Indian corporate in Fortune Global 500 –ranked 105 in 2009
Revenues of Rs285,000 crore(approx. USD 62 Billion)
Major supplier to core sector-Supplier of fuel (more than 80% of
requirement) to Government organizations i.e. army, railways, state road
transport, air force & navy, Key sectors like fertilizer, power & aviation are
largely supplied by iocl
Credit Profile-International: ,Baa3 Stable : by Moody’s ,BBB-Negative : by
Fitch
Domestic-Long Term: AAA/Negative; Short Term P1+ : by CRISIL, Long
Term: AAA/Negative : by Fitch

Submitted by: Amit Roy 20


ORGANISATIONAL STRUCTURE

IOCL (Registered Office at Mumbai)

(Corporate Office at New Delhi)

REFINERIES DIVISION PIPELINE MARKETING ASSAM OIL R&D


DIVISION

DIGBOI
EASTERN
REGION WESTERN NORTHERN SOUTHERN
GUAHATI REGION REGION REGION

BARAUNI

GUJRAT

HALDIA WEST BENGAL BIHAR STATE ORISSA STATE NORTHEAST STATE OFFICE
STATE OFFICE OFFICCE OFFICE
MATHURA
DIVISIONAL AREA
PANIPAT DIVISIONAL
OFFICE OFFICE OFFICE

AREA DIVISIONAL LPG BOTTLING


AREA OFFICE
OFFICE OFFICE PLANT

LPG BOTTLING
PLANT INSTALLATIO INSTALLAT LPG BOTTLING
NS IONS PLANT
DIVISIONAL AREA
OFFICE OFFICE DEPOT
TERMINAL DEPOT

TERMINAL

TERMINAL
INSTALLATIONS TERMINAL DEPOT INSTALLATIO
NS
DEPOT 

IOCL’s dominance in Downstream Oil Sector


Submitted by: Amit Roy 23

VISSION

Ethics

People
Customers
MISSION

To achieve international standard of excellence in all expects of energy and


diversified business with focus on customer delight through value of
products and service, and cost reduction.

To maximize creation of wealth, value and satisfaction for the stakeholders.

To attain leadership in developing, adopting and assimilating state of the


art technology for competitive advantage.

To provide technology and service through sustained Research and


development.

To foster a culture of participation and innovation for employee growth and


contribution.

To cultivate high standard of business ethics and Total Quality Management


for strong corporate identity and brand equity.

To help enrich the quality of life of the community and preserve ecological
balance and heritage through a strong environment conscience.

Submitted by: Amit Roy 25


VALUES

Care stands for

Concern
Empathy
Understanding
Cooperation
Empowerment

Innovation stands for

Creativity
Ability to learn
Flexibility
Change

Passion stands for

Commitment
Dedication
Pride
Inspiration
Ownership
Zeal & Zest

Trust stands for

Delivered Promises
Reliability
Dependability
Integrity
Truthfulness
Transparency

Submitted by: Amit Roy 26


OBJECTIVES

 To serve the national interests in oil and related sectors in accordance and
consistent with Government policies.
 To ensure maintenance of continuous and smooth supplies of petroleum
products by way of crude oil refining, transportation and marketing
activities and to provide appropriate assistance to consumers to conserve
and use petroleum products efficiently.
 To enhance the country's self-sufficiency in crude oil refining and build
expertise in laying of crude oil and petroleum product pipelines.
 To further enhance marketing infrastructure and reseller network for
providing assured service to customers throughout the country.
 To create a strong research & development base in refinery processes,
product formulations, pipeline transportation and alternative fuels with a
view to minimizing/eliminating imports and to have next generation
products.
 To optimize utilization of refining capacity and maximize distillate yield and
gross refining margin.
 To maximize utilization of the existing facilities for improving efficiency and
increasing productivity.
 To minimize fuel consumption and hydrocarbon loss in refineries and stock
loss in marketing operations to effect energy conservation.
 To earn a reasonable rate of return on investment.
 To avail of all viable opportunities, both national and global, arising out of
the Government of India’s policy of liberalization and reforms.
 To achieve higher growth through mergers, acquisitions, integration and
diversification by harnessing new business opportunities in oil exploration
& production, petrochemicals, natural gas and downstream opportunities
overseas.
 To inculcate strong ‘core values’ among the employees and continuously
update skill sets for full exploitation of the new business opportunities.
 To develop operational synergies with subsidiaries and joint ventures and
continuously engage across the hydrocarbon value chain for the benefit of
society at large.

Submitted by: Amit Roy 27


SWOT ANALYSIS

STRENGTHS

Strong brand image – one of the representatives in fortune 500 listing and a
market leader with 56% share of petroleum products.
Has the largest number of refineries in Eastern and Northern region, so
earn maximum profit. Controls 10 of 18 refineries in the country.
Its flexible designed refineries give more 100% efficiency, competitive cost
and cater for variety of crude.
Owns the largest pipeline network (9000 km) which gives it a vital
competitive edge in transportation cost (than rail, road or water transport)
and help access deficit market.
IOCL’s Research and Development centre, with ISO-9001 certification and
around 75 national and international patents, has contributed to lubricants
formulations, refinery processes etc.
Pioneer in the quality management with its Mathura Refinery as the 1 st in
Asia and 3rd in the world to earn ISO-14001 certification.
Excellent credibility and international corporate image to raise funds.
Has most extensive network of almost 24000 sales points covering the
entire country. The distribution network further strengthened on
acquisition of IBP.
Largest pool of technical and managerial manpower in the petroleum
industry.
There is globalization of its core activities.

Submitted by: Amit Roy 28


WEAKNESSES

Slow decision making process.


IOCL cannot fix up selling price for MS, HSD, SKO and LPG.
Presence of Govt. regulatory body, which delays or hinders the process of
the company.
Maintaining the continuity of suppliers to remote and rural areas and
subsides for such supplies extended to all petroleum products.

OPPORTUNITIES

The petroleum industry is a growth industry, it has a continuous growth.


Myriad opportunities in expanding the existing customer base, by
customizing products for specific market segments, and streamlining
distribution infrastructure.
Supply chain optimization which includes integrating and synergizing
operations with subsidiaries has led to a nation-wide distribution network.
Hindustan Petroleum Corporation Limited (HPCL) and Bharat Petroleum
Corporation Limited (BPCL) do not have any refinery in Northern India.
Immense scope for Overseas Expansion.
Distribution or sales of alternative products through existing retail network.
Improvement of customer management services at retail end (recent
customer satisfaction survey shows only 65% customer satisfaction level).
Energized in petrochemical sector through commissioning of panipat
refinery, also ensuring paradeep refinery.
Other opportunities in Gas and Gas-to-Liquid, Training and Consultancy,
Shipping, Export, Collaboration R & D, Infotech and Communications.

Submitted by: Amit Roy 29


THREATS

Products from overseas competing with the domestic production.

Competition between national and international players put pressure on


refining and marketing margins

Middle-East turmoil causes a hike in the oil prices to a very grate extent.

Pipelines are declare as “common carriers”

Entrance of strong private players like Reliance Industries Limited/Essar Oil


Limited

OBLIGATIONS

 Towards customers and dealers:- To provide prompt, courteous and


efficient service and quality products at competitive prices.

 Towards suppliers:-To ensure prompt dealings with integrity, impartiality


and courtesy and help promote ancillary industries.

 Towards employees:-To develop their capabilities and facilitate their


advancement through appropriate training and career planning. To have
fair dealings with recognized representatives of employees in pursuance of
healthy industrial relations practices and sound personnel policies.

Submitted by: Amit Roy 30


 Towards community:-To develop techno-economically viable and
environment-friendly products. To maintain the highest standards in
respect of safety, environment protection and occupational health at all
production units.
 Towards Defence Services:-To maintain adequate supplies to Defence and
other para-military services during normal as well as emergency situations.

INDIAN OIL MAJOR UNITS

Registered Office IndianOil Bhavan,


G-9, Ali Yavar Jung Marg,
Bandra (East), Mumbai –
400051

Corporate Office 3079/3. Sadiq Nagar


J B Tito Marg,
New Delhi
110049

Refinery
Division

Head Office ---------- SCOPE Complex, Core-2 – 7 Institutional Area, Lodhi Road New Delhi
Barauni Refinery---------- P.O. Barauni Oil Refinery, Dist. Begusarai 861114 (Bihar)
Gujrat Refinery------------ P.O. Jawahar Nagar, Dist. Vadodara-391320 (Gujrat)
Guwahati Refinery-------- P.O. Noonmati, Guwahati-781020 (Assam)
Haldia Refinery ----------- P.O. Haldia Refinery Dist. Midnapur-721606 (West Bengal)
Mathura Refinery-------- P.O. Mathura Refinery, Mathura-281005 (Uttar Pradesh)
Panipat Refinery---------- P.O. Panipat Refinery, Panipat-132140 (Haryana)

Submitted by: Amit Roy 31


Marketing
Division

Head Office------------ G-9, Ali Yavar Jung Marg, Bandra (East), Mumbai – 400051
Northern Region----- IndianOil Bhavan, 1 Aurobinda Marg, Yusuf Sarani New Delhi-110016
Eastern Region------- IndianOil Bhavan, 2 Gariahat Road, South (Dhakuria) Kolkata-700068
Western Region----- 254-C, Dr. Annie Besant Road, Worli Colony, Mumbai-400025
Southern Region----- IndianOil Bhavan 139, Nungambakkam High Road
R&D Centre----------- Sector 13 Faridabad-121007 (Haryana)

 
Submitted by: Amit Roy 32
Distinctions
 

Distinctions Date

IndianOil leads the pack of Indian companies in Fortune’s ‘Global 500’ list 12.07.2010

IndianOil in ‘Top 50’ Best Companies To Work For 21.06.2010

Reigning on the pinnacle of success 25.02.2010

IndianOil among 'Best Companies To Work For' 25.01.2010

IndianOil in top five in Business India’s Super 100 ranking 07.12.2009

IndianOil tops ET 500 ranking 25.11.2009

IndianOil in Platts ranking 2009 19.11.2009

IndianOil No.1 in BW 500 Ranking 27.10.2009

IndianOil leads India Inc. in Fortune's 'Global 500' listing for 2009 10.07.2009

IndianOil — the only PSU among India’s 25 best employers 16.04.2009

IndianOil frontrunner in Oil & Gas category in FE-500 listing of India's top corporates 31.03.2009

IndianOil tops Business Standard’s 'BS 1000' again 13.03.2009

IndianOil among India's 'Top 10' in Business India's Super 100 Listing 19.12.2008

Lanka IOC ranked No. 1 Company in Sri Lanka 12.12.2008

IndianOil tops 'ET 500' rankings once again 21.10.2008

IndianOil tops Businessworld's ‘BW Real 500’ rankings again 20.10.2008

IndianOil third most valuable (company) brand in India: ET-brand finance survey 02.09.2008

IndianOil leads India Inc. in Fortune's 'Global 500' listing for 2008 11.07.2008

Submitted by: Amit Roy 33

'The Most Trusted Brand' in ET's Brand Equity annual survey-2008 12.06.2008

IndianOil the 'Top Oil & Gas Company' in Financial Express's 'FE 500' listing 23.05.2008
IndianOil Tops Business Standard's 'BS 1000' listing 15.02.2008

'Top Ten' in Business India's Super 100 Listing 13.12.2007

IndianOil among India's 'Top Valuable Companies in BT 500 Listing' 30.11.2007

IndianOil ranked 2nd amongst India’s Top 50 Most Valuable Brands 31.07.2007

IndianOil gets a top slot in ET500 listing 22.03.2007

IndianOil tops 'BS 1000' companies in Sales again 03.01.2007

Submitted by: Amit Roy 34

Awards & Accreditations


 

Awards & Accreditations Date


IndianOil adjudged as Best Employer Brand in Asia 29.07.2010

Director (Marketing) honoured with ‘Asian Marketing Professional of the Year’ award 29.07.2010

Reader's Digest ‘Trusted Brand Gold Award’ to IndianOil 01.07.2010

Barauni Refinery bags 'Best Kaizen Award' 29.06.2010

IndianOil wins Dun & Bradstreet Awards 17.06.2010

Mathura Refinery bags “International Safety Award” 15.06.2010

Greentech Foundation honours IndianOil 14.06.2010

Director Marketing felicitates Ranchi DO 07.06.2010

Golden Peacock Innovative Award to R&D Centre 29.05.2010

Greentech Safety Award to Bongaigaon Refinery 24.05.2010

Greentech Safety Award 2010 for Guwahati Refinery 24.05.2010

Greentech Safety Award to Haldia Refinery 24.05.2010

Gold Award to Mathura Refinery for Safety Management 24.05.2010

R&D Centre wins Technology Day Award 2010 11.05.2010

Chairman conferred IIT Delhi Alumni Award 24.04.2010

Lifetime Achievement Award for Director (R&D) 20.04.2010

Director (Finance) wins India’s Best CFO Award 14.04.2010

OCEANTEX 2010 Award to Director (Refineries) for Outstanding Achievement 04.03.2010

IndianOil tops Business Standard’s 'BS 1000' ranking 16.02.2010

Submitted by: Amit Roy 35


IndianOil bags four OISD Awards 20.10.2009

Chairman receives ‘SCOPE Award for Excellence’ 15.10.2009

IndianOil receives the MoU Excellence Award 2007-08 15.10.2009

IndianOil receives ‘Award for Global Impact by an Indian PSU’ 10.10.2009

Best Executive’ Honour on Director (Refineries) 30.09.2009


Most Innovative Company’ Honour to IndianOil 30.09.2009

IndianOil wins Oil & Gas Supply Chain Excellence Award 21.09.2009

IndianOil bags Safety Innovation Award 2009 21.09.2009

IndianOil’s Director (HR) receives 'Pride of HR Profession Award’ 19.09.2009

Lanka IndianOil bags Business Today Top 10 Award for 2007-08 21.08.2009

Bongaigaon Refinery bestowed Indira Gandhi Paryavaran Puraskar 2006 05.06.2009

IndianOil wins Reader's Digest Award for most trusted petrol station brand 01.06.2009

IndianOil sweeps five PetroFed Oil & Gas Industry Awards (For the year 2008) 16.04.2009

IndianOil wins Retailer of the Year - 'Rural Impact Award' 17.02.2009

IndianOil Conferred BML Munjal Award 2009 for Excellence in Learning & Development 14.02.2009

Golden Peacock Award for IndianOil-R&D for the fourth time 02.01.2009

IndianOil wins six awards at PRSI annual meet 16.12.2008

IndianOil wins SCOPE Meritorious Awards for Environmental Excellence & Sustainable Development and Good Corporate 24.11.2008
Governance

IndianOil presented the 'Indian Express Uptime Champion Award' 08.10.2008

Submitted by: Amit Roy 36


IndianOil conferred SAP ACE Award 2008 for B2B process Integration 24.09.2008

'Oil & Gas Supply Chain Excellence' Award for IndianOil 22.09.2008

IndianOil bags 'Most Admired Retailer – Rural' Award 2007 22.09.2008

Safety Innovation Award for IndianOil for fourth consecutive year 11.09.2008

‘CIO-100’ award for IndianOil for the third time 09.09.2008

IndianOil conferred ‘Business Super brand 2008’ 05.09.2008

IndianOil's "Car in a Tank" sales promotion scheme wins Stevie Award 07.07.2008

IndianOil wins the World Petroleum Congress Excellence Award 2008 for technical development 01.07.2008

IndianOil's XtraPower wins Loyalty Summit Award 25.01.2008

IndianOil Finance Director S.V. Narasimhan bags Excellence in Finance Award 22.01.2008

IndianOil wins Retailer of the Year - Rural Impact Award 15.01.2008

IndianOil- R&D Centre Awarded the coveted WIPO GOLD MEDAL 18.10.2007

IndianOil wins Oil Industry Safety Directorate Awards 04.10.2007

SERVO acquires prestigious MAN Global approvals 24.09.2007

IndianOil bags the 'Most Admired Retailer of the Year' award 10.09.2007

IndianOil honored with `CIO 100 Award 2007' 10.09.2007

IndianOil bags SCOPE Gold Trophy for Best Practices in Human Resources Management 2005-06 06.09.2007

SAP ACE – Awards for Customer Excellence for IndianOil 24.08.2007

IndianOil’s R&D Centre gets special recognition for Bioremediation 24.08.2007

SERVO secures entry into NSF White Book - H1 Category 23.08.2007

IndianOil, the only petroleum company as `The Most Trusted Brand' in ET's Brand Equity's annual survey 01.06.2007

Submitted by: Amit Roy 37


PPIPELINE

In India’s infrastructure, the petroleum pipelines form a crucial part enabling


sustained availability of petroleum products in all parts of the country for
economic growth. The pipelines transport petroleum products from refineries to
demand areas and crude oil from import terminals as well as domestic sources to
the inland refineries. India being a vast country, a wide network of pipelines
becomes the paramount requirement of transporting petroleum products to
interiors from refineries and crude oil to the land locked refineries.
It is an established fact that pipelines are preferred as a cost effective, energy
efficient, safe and environment friendly method of transportation for petroleum
products and crude oil and are playing a leading role in meeting the demand for
petroleum products in India. Economic growth and expansion of infrastructure in
India offer opportunities to better utilize the existing pipeline network in addition
to expand by constructing new pipelines.

IndianOil, the pioneer in cross-country petroleum product pipeline in the Indian


sub-continent constructed and commissioned its first petroleum product pipeline,
Guwahati-Siliguri Pipeline in the year 1964. Since then IndianOil has mastered the
art and technology of pipeline engineering. Over the last four decades the
pipeline network of IndianOil has grown to 10,899 km .

IndianOil’s sustained pursuit and implementation of proven safety and


environmental management systems have brought rich results. All operating
pipeline units have been accredited with ISO 9000 and ISO 14001 certificates.

Various initiatives in the field of project management, operations and


maintenance including training in countries like Oman, Ethiopia, Kuwait and
Sudan have been undertaken.

Submitted by: Amit Roy 38


Today IndianOil is well placed to provide seamless services in the entire spectrum
of petroleum pipelines covering techno-economic feasibility studies, design and
detailed engineering, project execution, operations and maintenance, consultancy
services in augmentation and modernization, etc.

Supervisory Control and Data Acquisition (SCADA) and application software


expertise are available from project implementation to commissioning including
field services, maintenance and operational support. Tanker handling, petroleum
product and crude oil accounting, quality control, ocean loss control, pigging
procedure development and analysis of pigging data, selection, testing and
evaluation of drag reducers, operations and maintenance of tank farm and pump
stations are other areas of expertise available with IndianOil’s Pipelines Division.

REFINING

Born from the vision of achieving self-reliance in oil refining and marketing for the
nation, IndianOil has gathered a luminous legacy of more than 100 years of
accumulated experiences in all areas of petroleum refining by taking into its fold,
the Digboi Refinery commissioned in 1901. At present, IndianOil controls 10 of
India’s 20 refineries.

The strength of IndianOil springs from its experience of operating the largest
number of refineries in India and adapting to a variety of refining processes along
the way.Having absorbed state-of-the-art technologies of leading process
licensors like UOP, Chevron, IFP, Stone & Webster, Mobil, Haldor Topsoe,
KTI/Technip, Linde, CD-Tech, Stork Comprimo, etc., IndianOil in an excellent
position to offer O&M services for latest technologies such as distillate FCCUs,
Resid FCCUs, hydrocrackers, reformers (both semi-regenerative and continuous

Submitted by: Amit Roy 39


catalytic regeneration types), lube processing units, catalytic de-waxing units,
cokers, coke calciners, visbreakers, merox, hydro-treaters for kero and gasoil
streams, etc. IndianOil refineries also have units for producing specialty products
such as bitumen, LPG, MTBE, Butene-1, Propylene, Xylenes, Di-Methyl
Terephthalate (DMT), polyester staple fibre (PSF) and other petrochemicals like
Linear Alkyl Benzene, Paraxylene (PX), Purified Terepthalic Acid (PTA), etc.

The Corporation has commissioned several grassroot refineries and modern


process units. Procedures for commissioning and start-up of individual units and
the refinery have been well laid-out and enshrined in various customised
operating manuals, which are continually updated. IndianOil also offers the
specialised services of its experts for commissioning/start-up assistance
depending on the client’s need. Its team is also well-equipped to prepare
operation manuals with clear instructions for plant start-up, operation, shutdown,
emergency handling, etc.

On the environment front, all IndianOil refineries fully comply with the statutory
requirements. Several Clean Development Mechanism projects have also been
initiated.

With its vast experience in successfully implementing SH&E policy and practices at
various units, IndianOil offers its services in ensuring that the clients’ work
environment is safe, healthy and clean.

IndianOil also offers faculty assistance for ‘tailor-made’ training programmes that
suit the requirement of refinery or pipelines personnel or a selection of
programmes from the clients’ training calendar.

Innovative strategies and knowledge-sharing are the tools available for converting
challenges into opportunities for sustained organisational growth.

Submitted by: Amit Roy 40


IndianOil’s Refineries team have a deep understanding of the complexities of all
the process units of modern refineries and can offer comprehensive services of a
highly professional nature on different facets given in details in this segment.

With strategies and plans for several value-added projects in place, IndianOil
refineries will continue to play a leading role in the downstream hydrocarbon
sector for meeting the rising energy needs of our country.

MARKETING

IndianOil provides a wide range of marketing services and consultancy in fuel


handling, distribution, storage and fuel/lube technical services. With a formidable
bank of technical and engineering talent, IndianOil is fully equipped to handle
small to large-scale infrastructural projects in the petroleum downstream sector
anywhere in the country. Our project teams have independently or jointly as a
consortium, have set up depots, terminals, pipelines, aviation fuel stations, filling
plants, LPG bottling plants, amongst others. IndianOil's fuel management system
to bulk customers offer customized solutions that deliver least cost supplies
keeping in mind usage patterns and inventory levels. A wide network of lubricant
and fuel testing laboratories are available at major installations which is further
backed by sector-wise expertise in the core sectors of power, steel, fertiliser, gas
plants, textile mills, etc. Cutting edge systems and processes are designed around
one simple belief-to provide valuable customers with an unbeatable edge in their
business. IndianOil's supply and distribution network is strategically located
across the country linked through a customized supply chain system backed by
front offices located in conceivably every single town of consequence.

The wide network of services offered by IndianOil, Marketing Division is


illustrated in this section, which includes; commercial/reticulated LPG; total fuel
management/ consumer pumps; IndianOil Aviation Service; LPG Business (non-
fuel alliances); loyalty programs; retail business (non-fuel alliances) and SERVO
technical services.

Submitted by: Amit Roy 41


TRAINING

Success is people driven

Success is people driven. Building competencies through training is one of the


core strengths of IndianOil.

The IndianOil Institute of Petroleum Management- a centre of excellence for


nurturing future leadership, situated on the outskirts of New Delhi, conducts
advanced management education programmes in collaboration with premier
business schools and topline professionals. IndianOil operates 18 training centres
across the country for up-skilling, re-skilling and mult-skilling of employees in its
pursuit of corporate excellence.

IndianOil has been serving as a source of technical support and expertise to


petroleum companies of carious countries across the globe. Some of these
countries, which have partnered for excellence, include Sri Lanka, Kuwait, Bahrain
Iraq, Abu Dhabi, Tanzania, Ethiopia, Algeria, Nigeria, Nepal, Bhutan, Maldives,
Malaysia and Zambia.

RESEARCH & DEVELOPMENT

In today's dynamic business environment, innovation through a sustained process


of Research & Development (R&D) is the only cutting edge tool for organisations
to thrive. With emphasis on development and speedy commercialisation of
globally competitive products, processes and technologies, the focus has now
shifted from R&D to RD&D (Research, Development & Deployment).

Submitted by: Amit Roy 42


INDMAX, a hallmark technology developed by the Centre for maximisation of LPG
and light distillates from refinery residue, has been selected by IndianOil for
setting up a 4 million metric tonnes per annum (MMTPA) INDMAX unit as a part
of the 15 MMTPA integrated refinery-cum-petrochemicals complex at Paradip, as
well as at Bongaigaon Refinery & Petrochemicals Ltd. (BRPL). The Centre has also
licenced its Diesel Hydrotreating technology to these two refineries. These
successes have catapulted IndianOil R&D into the elite league of multinational
technology licensors.

Standing in the company of six worldwide technology holders for Marine Oils,
with the second global OEM (original equipment manufacturer) approval by
Wartsila, Switzerland, IndianOil's SERVO Marine Oils are now technically qualified
to cater to the lubrication requirements of more than 90% of the world's marine
engine population. In the power-generation segment, the newly developed
SERVO Marine K-Series was approved by Yanmar Co. Ltd. of Japan for use in their
engines operating on distillate fuels.

The R&D Centre continues to provide significant support to the IndianOil Group
refineries in product quality improvement, evaluation of catalysts and additives,
health assessment of catalysts, material failure analysis, troubleshooting and in
improving overall efficiency of operations. In-house developed FCC models are
not only being used in IndianOil refineries for process optimisation but a similar
model has also been sold to a multinational company. IndianOil has formed a joint
venture company, Indo Cat Pvt. Ltd., with Intercat, USA, for manufacturing 15,000
tonnes per annum of FCC (fluidised catalytic cracking) catalysts & additives in
India, for catering to rising global demand

Submitted by: Amit Roy 43


As a step towards ensuring energy security for the nation, IndianOil has launched
several initiatives to exploit alternative sources of energy such as Hydrogen and
Bio-fuels. Subsequent to commissioning India's first experimental H-CNG
(Hydrogen-Compressed Natural Gas) dispensing unit at the R&D Centre campus at
Faridabad, demonstration projects are underway on use of H-CNG blends in heavy
and light vehicles. IndianOil is also setting up India's first commercial H-CNG
dispensing station at one of its retail outlets in Delhi in the year 2008 for fuelling
experimental vehicles running on H-CNG blends as well as on pure Hydrogen.
IndianOil R&D is also working on production, storage, transportation, distribution
and commercialisation of Hydrogen as an alternative fuel.

In Bio-fuels, besides spearheading commercialisation of Ethanol-Blended Petrol in


the country, IndianOil has been in the forefront of technology development for
Bio-diesel production from various edible and non-edible oils and its application
in vehicles. Pioneering studies by IndiaOil's R&D Centre established that Bio-diesel
produced from Jatropha seeds were at par with that produced from vegetable
oils. In the past few years, the R&D Centre has studied the entire value chain of
Bio-diesel, starting from Jatropha plantation to field trials on passenger cars, light
commercial vehicles and railway locos in collaboration with several vehicle
manufacturers, railways and state transport undertakings.

IndianOil, along with its subsidiary IndianOil Technologies Ltd., has been engaged
in successful marketing of in-house developed technologies, technical services
and training not only in India but abroad too.

IndianOil has, till date, invested close to Rs. 1,000 crore in setting up world-class
facilities at its R&D Centre for building world-class capabilities in analytical
services, engines, test rigs and pilot plants for all major refinery processes,
catalyst characterisation & development, etc. It plans to invest about Rs. 500
crore during the period 2007-12 to maintain its leadership in downstream R&D
activities in the hydrocarbon sector. While continuing with cutting edge R&D in

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the core areas of lubricants formulations, refinery process technologies and
pipeline transportation, the thrust would now be on commercialising the
developed technologies and initiating research in new frontier areas such as
petrochemicals, residue gassification, coal-to-liquid, gas-to-liquid, alternative
fuels, synthetic lubricants, nano-technology, etc. Through these R&D initiatives,
IndianOil will continuously enhance value for all its stakeholders.

LUBRICANT RESEARCH

With over 3500 formulations of lubricating oil and greases, the SERVO product
line developed by the R&D Centre enjoys the largest market share in India. While
meeting the diverse needs of the Indian Industry as well as the Defence services,
Railways, public utilities and transportation sectors, the R&D Centre developed
and introduced many multigrade rail road oils and marine oils, making the
Corporation the sixth global player and the sole Indian presence in the select
league of marine oil technology developers the world over. SERVO Marine Oil
series for DG sets has been approved by Wartsila of Finland and Switzerland for
their entire series of Wartsila-Sulzur engines. Another accomplishment is the
global approval from MAN B&W of Denmark for IndianOil's marine oils

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BRANDS

Indian Oil’s Retail Brand Template of Etra Care (urban), Swagat (Highway) and
kishan Seva Kendras (Rural are widely recognized as pioneering brands in the
petroleum retail segment. Indian Oil’s leadership extends to its energy brands
indane LPG, Wervo Lubricants, Autogas LPG, Xtra Premium, Branded Petrol, Xtra
Mile Branded Diesel, Xtra Power Fleet Card, Indian Oil Aviation and Xtra Rewards
cash customer loyalty programme.

Retaining Leadership

Indian Oil has one of the largest petroleum-retailing networks in Asia, From Kutch
in the western tip of the Indian subcontinent to kohima in the North East, Indian
Oil is truly in every heart and every part. The Marketing Division comprises of
Retail Outlets, bulk consumer depots, Kerosene Dealers, Indane LPG Distributors,
Aviation Fuel Stations backed by bulk storage Terminals and Depot, LPG Bottling
Plants all of which is controlled by State Offices and LPG Area Offices.

Several landmark surveys continue to rate Indian Oil as the dominant energy
brand in the country. Customers perceive Indian Oil as a reliable symbol for high
quality products and services. The prestigious Economic Times Brand has placed
Indian Oil as the “Most Trusted Brand” and “Top Service Brand” which was
further enhanced by the award of a Gold Medal for the Most Trusted Petrol
station by Reader Digest-AC Nielson Survey conducted by research agency AC
Neilson ORG-MARG, the survey is the largest of its kind in India, with a sample
distributed across socio-economic class, age, income and geography.

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PRODUCTS
Indian Oil is not only the largest commercial enterprise in the country it is the
flagship corporate of the Indian Nation. Besides having a dominant market share,

Indian Oil is widely recognized as India’s dominant energy brand and customers
perceive Indian Oil as a reliable symbol for high quality products and services.

Benchmarking Quality, Quantity and Service to world-class standards is a


philosophy that Indian Oil adheres to so as to ensure that customers get a truly
global experience in India. Our continued emphasis is on providing fuel
management solution to customers who can then benefit from our expertise in
efficient sourcing and least cost supplies keeping in mind their usage patterns and
inventory management.

Indian Oil is a heritage and iconic brand at one level and a contemporary, global
brand at another level. While quality, reliability and service remains the core
benefits to our customers, our stringent checks are built into operating systems,
at every level ensuring the trust of over a billion Indians over the last four
decades.

Our Retial Brand template of Xtra Care (Urban), Swagat (Highway) and Kisan Seva
Kendras (Rural) are widely recognized a pioneering brands in the petroleum retail
segment. Indian Oil’s leadership extends to its energy brands – Indane LPG,
SERVO Lubricants, Autogas LPG, Xtra Premium Branded Petrol Xtra Mile Branded
Diesel, Xtra Power Fleet Card, Indian Oil Aviation and Extra Rewards case
customer loyalty programme.

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Submitted by: Amit Roy

Industrial lubricating oil


Turbine Oil Servo prime oil are premium turbine oils exhibiting oxidation stability
of the highest order, excellent remissibility and resistance to foaming combined
with the ability to release entrained air quickly

Control Valve Hydraulic-Fluid

It is a premium quality hydraulic fluid manufactured from highly refined base


stock having excellent lubrication characteristics and has carefully selected
additives.

Circulating & Hydraulic oil-Anti Wear Type

Servo system oil is blended from highly refined base stock having excellent
lubrication characteristics and has carefully selected additives to get the best
possible lubrication characteristics.

Special Purpose Hydraulic Oil-Anti Wear Type

Servo system HLP oil are premium hydraulic oil having outstanding lubrication
characteristics with anti-wear properties, excellent thermal/oxidation stability
and high FZG rating.

Spindle Oil

Servo spin oil are blended from highly refined low velocity base stock having
inherent oxidation and chemical stability. These oil are further fortified with
special additives.

Machinery Oil

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Servo line oil contain additive to provide good oiliness for general lubrication of
machinery even under boundary lubrication condition and provide protection

against corrosion and rest even during idle periods.Textile oil (scourable
Type)Servo textile oil is Scourable type of textile oil designed for lubrication of
textile machinery particularly, the looms.

Textile Oil (Biodegradable & Eco-Friendly)

Servo textile oil are blended with non-staining light colored oil of non mineral
type possessing inherent detergent qualities.These oil are further additive treated
to impart oxidation residence, anti rust, anti-foam and ant-wear characteristics.

Industrial Gear Oil

Servomesh SP oil are extreme pressure type industrial gear oil, which contain
salphur phosphorus compounds and have better thermal stability and higher
oxidation resistance compared to conventional lead-naphthanate gear oils. These
oils have good dimulsibility, low foaming tendency, provide rest and corrosion
protection to metal surfaces.

Morgan Bearing Oil

Servo steel oil is premium quality, high velocity index oil film bearing oils,
possessing superior oxidation and thermal oxidation and thermal stability. These
oil get separated from water quickly and have excellent film strength property to
minimize wear in roll-neck bearing of steel mills.

Compressor Oil

Servo press oil are specially develop compressor oils to provide satisfactory
lubrication stable and are fortified with special additive.

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Refrigeration Compressor Oil

Servo freeze oil posses high fluidity at very low temperature, resist deposit
formation and have reduced tendency to foam, have long service life due to good
oxidation and thermal stability and ensure high condenser efficiency and reduced
compressor valve maintenance due to less deposit.

Synthetic Compressor Oil


Servosynco 270 is synthetic compressor oil having high velocity index and natural
anti-wear properties. Servosynco oil are synthetic long drain compressor oil.
These have excellent oxidation and thermal stability with high velocity index
coupled with there higher higher flash point, auto ignition temperature, low oil
consumption rate and easy storability.

Industrial Speciality Oils

Quenching Oils

Servoquench 11
Servoquench 11 quenching oil blended from high velocity index base stocks
having good oxidation stability, good fluidity low volatility. This oil is used for
normal quenching operation on a wide variety of steel parts such as nuts and
bolts, ball bearings, certain types of brake drums and meets IS: 2664-1980 straight
mineral type, grade medium specification.

Heat Transfer Fluids

Submitted by: Amit Roy 50


Servotherm/Medium
Servotherm oils are specially developed mineral oil for use in heat transfer
industrial application. These oils posses excellent thermal and oxidation stability,
low volatility and low vapor pressure to give long and trouble free service life in
heat transfer system up to 3000C.

Servotherm Special

Servotherm Special is a premium heat transfer fluid manufactured from carefully


selected base stock a contains selected additives. This oil with its low sulphur
contain and low CCR value would provide superior performance. It is
recommended for well designed heat transfer system operating upto 3150C.

Servotherm Super

Servotherm Super is a superior heat transfer fluid containing selected additives.


This oil possesses improved thermal and oxidation stability, low volatility and low
vapor pressure to give long and trouble free service life in well designed heat
transfer system. It is recommended for bulk oil temperature upto 3150C.

Rust preventives

Servo Rp 150

Servo Rp 150 is superior light bodies rust preventive inhibited with special
additives. The oil forms a soft oily film over metal surface when applied by
spraying/brushing/dipping and is recommended for protection for work piece
against rusting during in between operations and short term indoor and outdoor
storage. It is ideally suited for the rust protection of steel sheets during storage
and transportation. The oil film can be removed easily by wiping or with the help
of petroleum solvent.

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Rubber Extender Oil

IOC Process Oil Medium/Heavy IOC Process Oil Medium is a high aromatic heavy
bodied rubber process oil. The oil is blended from selected aromatic streams
produced during furfural extraction of lube oil and are in used manufacturing of
automobile tyres, treat rubber and other dark coloured rubber goods such as
battery castings, rubber bushes etc.

Industrial Greases

General Equipment and Machinery Greases

Servogem 2/3/EP Greases

Servogem 2 and 3 lithium soap multipurpose greases. These greases have


excellent water resistance properties, high oxidation stability and maximum
structural stability with superior anti rust and anti corrosion properties. These
greases resist water wash out and enjoy all round acceptance for both anti
friction and plain bearing lubrication. This meets the British Timken ALG 1/57,
IS:7623-1993, IPSS:1-09-006 specifications and US Steel 374 requirements. These
greases are widely used in steel plants, heavy engineering units, textile mills,
petrochemical and chemical units.

Servogem EP Greases are lithium-base greases having extreme pressure


properties. These possess excellent shear stability, high load carrying capacity,
high oxidation stability and anti rust/anti corrosion properties. These greases
prevent welding and seizure of moving parts often caused by shock loading and
resist water washout. These greases meet IPSS:1-09-005 specification and
recommended for both plain and anti friction bearing in a wide variety of
application such as automotive, earth moving equipment and general industrial
machinery.

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Servogem HT/HTXX

Servogem HT and HTXX are non soap based smooth structure greases having
excellent ability to withstand high temperature and severe shock loading
condition. These have excellent resistance to water washout and do not get
affected by mild acids and alkalies. Servogem HTXX contain MoS2 and has high
load bearing ability. These greases meet US Steel 372,IPSS:1-09-008 specification
and are recommended for lubrication of machine elements, plain bearing and anti
friction bearing operating at high temperature (1200C – 2500C). These greases
meet IS: 12790-1989.

Submitted by: Amit Roy

Complex Greases

Servorex L0/L1/L2

Servorex Greases are calcium lead base, short fibrous structure greases with
appropriate EP and anti rust properties.

These greases are recommended for both anti friction and plain bearing operating
at medium speed under heavy and severe shock load. Due to the excellent water
repellent characteristic, these greases are successfully used for bearing
lubrication of steel mills, cane crashers and mill rolls of sugar factories. These
greases are used by various steel plants in centralized grease lubrication system
and are also recommended for grease lubricated gear couplings.

Servoplex LC is a unique lithium complex greases manufactured from highly


refined, high velocity index base oil. These greases have high water tolerance and
mechanical stability, combined with excellent high temperature performance.
These are ideally suited for application by centralized grease system due to good
resistance to oil separation under pressure and mechanical stability. These are
widely in using in steel plants, mining and engineering industries.

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Servogem Super HT

It is smooth, homogeneous high temperature grease, brown color. It is suitable


for lubrication over a wide temperature range of (-) 100C to 1800C and has
excellent pumpability characteristic, making it especially suitable for centralized
lubrication systems of large industrial units. It is recommended for wide range of
industrial application where high temperatures are encountered. It is an ideal
choice for plant applications such as continuous casters, coupling, oscillators, run
out rolls, blowers and suitable for mining industries for such applications as rock
crushers, conveyor, drilling machinery, etc. It is having excellent resistance though
structural changes over a wide temperature range and water washout action. Due
to its excellent flow properties it is most suitable grease for centralized lubrication
system.

Servoplex 2/3

These greases are premium quality lithium complex soap base grease with very
high structural and oxidation stability. Due to higher mechanical stability, in high
temperature applications, they provide excellent performance in anti friction
bearings. These greases provide much longer life compared to sodium or lithium
soap base greases.

These greases have excellent resistance to water washout and posses anti rust
and anticorrosion properties. These are recommended for wheel bearing, earth
moving equipment, gear couplings, electric motors and industrial machinery.
These greases pass Emcor antirust test for zero rating and possess very high Weld
Load characteristics. They meet NLGI GC/LV specification.

Chain Grease

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Servo Chain Compound

Servo chain compound is a highly specialized compound. These product is


recommended for lubrication of chains and is applied by dipping the chain in the
molten compound so that it penetrates well in between the narrow clearance of
the pin-bush and bush roller. It provides resistance to formation of tight links,
thereby reducing wear and elongating of chains and also protects the sprocket
and transmission compound against rust, corrosion and wear.

Graphite Grease

Servogrease Graphited 5081/5082/5083

These are calcium base greases containing graphite as filter. Theses greases are
used for general lubrication under comparatively high load and low relative
displacement of interacting surfaces. These grease meet IS: 508-1987
specifications for grade 1, grade 2, grade 3 respectively. These greases
recommended for leaf springs, hydraulic rams, plungers, slides, elevator cables,

photograph pans, as protective for steel wear ropes and certain anti-seize
purpose.

Cement Plant Greases

Servogrease CG 10

Servogrease CG 10 is a sprayable addisive lubricant with a high quality colloidal


graphite. These greases has been developed for very severe lubrication conditions
encountered in very low speed, large open gear drives. The lubrication films
adhere strongly to the gear surface and are unaffected by temperature changes. It
is recommended for lubrication for open gear drives of rotary kilns, cement mills,
sintering plants, ball mills etc. It passes FZG 12 th stage. It possess high weld load of
650 Kg.

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Servogrease RN

Servogrease RN is an excellent open gear running in compound containing


especially selected additives. The grease is recommended for running in and for
filling tooth flanks of large open gear drives of rotary kilns, cement mills, sintering
plants, ball mills etc. It possess high weld load of 800 Kg. and passes FZG 12 th
stage.

Indane Gas
 
Indane is today one of the largest packed-LPG brands in the world and has been
conferred the coveted ‘Consumer Superbrand’ status by the Superbrands Council
of India Having launched LPG marketing in the mid-60s, IndianOil has been
credited with bringing about a ‘kitchen revolution,’ spreading warmth and cheer
in millions of households with the introduction of the clean and efficient cooking
fuel. It has led to a substantial improvement in the health of women, especially in
rural areas by replacing smoky and unhealthy chulha. Indane is today an ideal fuel
for modern kitchens, synonymous with safety, reliability and convenience. With
the status of an exclusive business vertical within the Corporation, the Indane
network delivers 1.2 million cylinders a day to the doorsteps of over 53 million
households, making IndianOil the second largest marketer of LPG globally, after
SHV Gas of The Netherlands. Indane is available in compact 5 kg cylinders for
rural, hilly and inaccessible areas, 14.2 kg cylinders for domestic use, and 19 kg
and 47.5 kg for commercial and industrial use.

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AutoGas
 
AutoGas (LPG) is a clean, high octane, abundant and eco-friendly fuel. It is
obtained from natural gas through fractionation and from crude oil through
refining. It is a mixture of petroleum gases like propane and butane. The higher
energy content in this fuel results in a 10% reduction of CO2 emission as
compared to MS.

AutoGas is a gas at atmospheric pressure and normal temperatures, but it can be


liquefied when moderate pressure is applied or when the temperature is
sufficiently reduced. This property makes the fuel an ideal energy source for a
wide range of applications, as it can be easily condensed, packaged, stored and
utilised. When the pressure is released, the liquid makes up about 250 times its
volume as gas, so large amounts of energy can be stored and transported
compactly.

Natural Gas
 
Over the years, Natural Gas has emerged as the 'fuel of choice' across the world.
It is slowly but steadily replacing traditional fossil fuels due to its environmentally
friendly characteristics which help greatly in meeting the stipulated automobile
emission norms. When compared with coal and oil, natural gas has a low carbon
footprint due to its clean combustion features. Natural Gas has significant cost
advantages too over crude oil and fuels such as Naphtha and commercial LPG.

In the year 2008, it constituted only around 9% of India's energy basket compared
with 24% globally. This is expected to rise to around 13% in the year 2010. India's
hydrocarbon vision statement envisages the share of natural gas in the country’s
energy basket to be 20% by the year 2025.

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Demand for Natural Gas in India is primarily driven by the fertiliser and power
sectors, which account for almost two-third of the country’s gas consumption.
Gas-based power plants are quicker to build and incur lesser initial capital
expenditure and are better suited to meet peak power demand.The use of LPG as
an automotive fuel has become legal in India with effect from April 24, 2000,
albeit within the prescribed safety terms and conditions. Hitherto, the thousands
of LPG vehicles running in various cities have been doing so illegally by using
domestic LPG cylinders, a very unsafe practice. Using domestic LPG cylinders in
automobiles is still illegal.

Petrol/Gasoline
 
Automotive gasoline and gasoline-oxygenate blends are used in internal
 combustion spark-ignition engines. These spark ignition engine fuels are primarily
used for passenger cars. They are also used in off-highway utility vans, farm
machinery and in other spark ignition engines employed in a variety of service
applications.
Gasoline is a complex mixture of relatively volatile hydrocarbons that vary widely
in chemical & physical properties and are derived from fractional distillation of
crude petroleum with a further treatment mainly in terms of improvement of its
octane rating. The hundreds of individual hydrocarbons in gasoline range from c 4
to c11.

XTRAPREMIUM

IndianOil’s XTRAPREMIUM is India’s leading branded petrol boosted with new-


generation multifunctional additives known as friction busters that prevent
deposition in the combustion chamber. XTRAPREMIUM is custom-designed to
deliver higher mileage, more power, better pick-up, faster acceleration, enhanced
engine cleanliness and lower emissions.

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XTRAPREMIUM is a sought-after fuel among discerning motorists, and owners of
new-generation, high-performance cars have endorsed its unmatched
performance.

Diesel/Gas oil
 
Petroleum derived diesel (called as petrodiesel) is a mixture of straight run
product (150 °C and 350 °C) with varying amount of selected cracked distillates
and is composed of saturated hydrocarbons (primarily paraffins including n , iso ,
and cycloparaffins), and aromatic hydrocarbons (including napthalenes and
alkylbenzenes).

Diesel is used in diesel engines, a type of internal combustion engine. Rudolf


Diesel originally designed the diesel engine to use coal dust as a fuel, but oil
proved more effective. Diesel engines are used in cars, motorcycles, boats and
locomotives. Automotive diesel fuel serves to power trains, buses, trucks, and
automobiles, to run construction, petroleum drilling and other off-road
equipment and to be the prime mover in a wide range of power generation &
pumping applications. The diesel engine is high compression, self-ignition engine.
Fuel is ignited by the heat of high compression and no spark plug is used.

XTRAMILE

IndianOil’s XTRAMILE Super Diesel, the leader in the branded diesel segment, is
blended with world-class multi-functional fuel additives. Commercial vehicle
owners choose XTRAMILE because they see a clear value benefit in terms of
superior mileage, lower maintenance costs and improved engine protection. A
growing section of customers who own diesel automobiles, both in the ‘lifestyle’
and ‘passenger’ category, prefer XTRAMILE as a fuel for its added and enhanced
performance. XTRAMILE has brought in a huge savings in the high mileage

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Kerosene

 
Kerosenes are distillate fractions of crude oil in the boiling range of 150-250°C.
They are treated mainly for reducing aromatic content to increase their smoke
point (height of a smokeless flame) and hydrofining to reduce sulphur content
and to improve odour, colour & burning qualities (char value).
commercial vehicles segment. Transport fleets that operate a large number of
trucks crisscrossing the country are using XTRAMILE to benefit from higher
mileage and reduced maintenance costs.

Kerosene is used as a domestic fuel for heating / lighting and also for manufacture
of insecticides/herbicides/fungicides to control pest, weeds and fungi. Since
kerosene is less volatile than gasoline, increase in its evaporation rate in domestic
burners is achieved by increasing surface area of the oil to be burned and by
increasing its temperature. The two types of burners which achieve this fall into
two categories namely vaporisers & atomisers.

The Indian Standard governing the properties of kerosene is IS 1459:1974 (2nd


Rev).

Bitumen

 
Bitumen is a common binder used in road construction. It is principally obtained
as a residual product in petroleum refineries after higher fractions like gas,
petrol, kerosene and diesel, etc., are removed. Indian Standard Institution
defines Bitumen as a black or dark brown non-crystalline soil or viscous material
having adhesive properties derived from petroleum crude either by natural or by
refinery processes.
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IndianOil produces bitumen from its refineries at Panipat, Mathura, Koyali,


Haldia and Chennai and markets it in bulk as well as packed in steel drums.
IndianOil also markets modified Bitumen CRMB and Emulsion. CRMB is
produced at Panipat, Mathura, Koyali, Haldia and CPCL refineries. IndianOil
markets Bitumen Emulsion by the brand name Indemul and it is produced from
emulsion plants located in Haldia and Panipat refineries. CRMB and Emulsion are
available both in bulk as well as in packed drums.

General uses of Bitumen:

For civil engineering works

 Constructions of roads, runways and platforms.


 Water proofing to prevent water seepage.
 Mastic floorings for factories and godowns.
 Canal lining to prevent erosion.
 Dump-proof courses for masonry.
 Tank foundation.
 Joint filling material for mason

Industries

 Electrical cables and junction boxes


 In battery manufacture as sealing compound.
 Paint industries for manufacturing black paints and anti corrosive paints.
 Ceramics.
 Printing inks.
 Water proof papers.
 Electrical capacitors.
 Bituminous felts
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Benzene
 
Benzene is a basic Aromatic chemical produced by Petroleum Refineries,
Petrochemical & Steel Plants and used for production of various downstream
petrochemicals like detergents, insecticides, resins and nylon tyres. Benzene is a
by-product from PX/PTA plant at Panipat Refinery
Steel plants produce Benzene in the aromatic recovery units from the coke oven
gas. Besides, Petrochemical units also produce Benzene.

Carbon Black Feed Stock (CBFS)


 
CBFS in the raw material for manufacture of carbon black, which is used by the
tyre industry. A small portion of this product is also used by processors to make
various downstream chemicals like Agarbatti Oil, White Oil etc. This is also used
for manufacture of Rubber Process Oils. There are two types of CBFS viz. High
BMCI type and General type. “BMCI” (Bureau of Mines Co-relation Index)
effectively measures the degree yield of Carbon Black. The higher the number, the
better the yield of Carbon Black. Sulphur content in CBFS reduces the effect of
BMCI value.

Food Grade Hexane


 
FG Hexane is a light distillate produced at various refineries. FG Hexane is
produced in the refineries from special cut Naphtha where the Hexane rich
stream is extracted and purified to meet the required specification.

Micro Crystalline Wax


 

The MC Waxes are produced usually from distillate residues and are of following
two types based on the melting point :

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Flexible MCW : Low molecular weight, low melting point wax produced from
heavy Petroleum residues of either Paraffinic or mixed base crude oils and also by
refining bright slack waxes from the propane deasphalted (PDA) stocks. They can
be further classified into two groups viz. Food Grade & Non-food Grade based on
UV absorption test.

 Hard MCW : High molecular weight, high melting point wax is produced from
crude oil tank bottom or fractionation of residual MCWs.
Several blends with intermediate properties are also possible and marketed.
They differ from refined P. Waxes in size and structure of crystals due to
difference in molecular weight. MCWs are more tougher, flexible and have high
melting point & tensile strength. They are more adhesive and less lustrous and
greasy. The binding properties are much better to P. Waxes thereby preventing
the sweating out of the liquid.

Mineral Turpentine Oil


 
There are two grades of MTO viz. 145-2050C grade and 125-2400C grade. The
numbers denote the boiling range
Production
MTO is produced at Haldia, Koyali and Panipat Refineries of IOC.
End Use
MTO is mainly used as Raw Material for paints / varnishes. MTO is also used for
dry cleaning and other industrial cleaning purposes.
Marketing arrangement
MTO is sold ex refineries on ex MI basis. Besides the refineries storage points,
MTO is also sold from following storage points:

Jalandhar, Punjab

1. Mourigram, West Bengal


2. Vashi, Maharashtra
3. Vizag, Andhra Pradesh

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Paraffin Wax
 
Paraffin Wax is produced only from refineries, which have wax production units.
There are three types of Paraffin Wax namely Type-1, Type-2 and Type-3. These
categories are based on the oil content.
Production
Paraffin Wax is produced only at Digboi and CPCL Refineries of IndianOil.

End uses
The major use of Paraffin Wax is for candle manufacture. The other uses are for
manufacture of Tarpaulin and wax papers..

Marketing arrangement
Paraffin Wax is sold ex Digboi refinery as well as other upcountry storage points –
Bassein (Maharashtra), Bijwasan (Delhi), Chennai (Tamil Nadu), Jalandhar
(Punjab), Sambalpur (Orissa) and Sanathnagar (Andhra Pradesh), on ex MI basis. It
is also sold through Distributors.

Propylene
 
Propylene is a light distillate product produced by IOC Mathura & Panipat.
Cracked LPG ex LPG Merox unit is fed to the De-Propaniser where Butane and
heavier components are removed from the bottom. The De-Propaniser overhead
containing Propylene & Propane is fed to the C3+ Splitter where Propylene and
Propane are separated. The splitter overhead containing Propylene is treated with
Mono Ethanol Amine & Caustic for removing impurities like H2S & COS. This
treated Propylene is water washed and passed through a Coalescer, for removal
of free water, before routed as finished product
Submitted by: Amit Roy 64

Production :
Refinery Capacity (TMTPA)
Mathura 24
Panipat 24

Raw Petroleum Coke


 
Raw Petroleum Coke (RPC) is “bottom of the barrel” product of refinery. This is a
solid product. The recent trend of coker units is with view on resid upgradation
and maximization of middle distillates. There are two distinctive grades of RPC viz.
Calcination or Green RPC and Fuel Grade or Petcoke.
Production
Calcination grade RPC is produced at Barauni, BRPL, Digboi and Guwahati
refineries of IOC. Fuel Grade Petcoke is product at Panipat refinery of IOC.
End Use
Calcination Grade RPC is used for production of Anodes for the Aluminium
Industry. Fuel Grade Petcoke is used primarily by Cement Plants.

Marketing arrangement
RPC and Petcoke are sold only ex refineries on ex MI basis. There are no other
storage / sales points for these products.

Crude oil
 
Crude oil - as petroleum directly out of the ground is called - is a remarkably
varied substance, both in its use and composition. Crude oil is formed from the
preserved remains of prehistoric zooplankton and algae, which have been settled
to the sea (or lake) bottom in large quantities under anoxic conditions. It was
formed over millions of years from the remains of tiny aquatic plants and animals
that lived in ancient seas due to compression and heating of ancient organic
materials over geological time. The oldest oil-bearing rocks date back to more
than 600 million years, the youngest being as old as about 1 million years.
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Although various types of hydrocarbons - molecules made of hydrogen and


carbon atoms - form the basis of all crude oils, they differ in their configurations.
The chemical structure of petroleum is composed of hydrocarbon chains of
different lengths. Because of this, petroleum may be taken to oil refineries and
the hydrocarbon chemicals separated by distillation and treated by other
chemical processes, to be used for a variety of purposes. It can be a straw-colored
liquid or tar-black solid. Red, green and brown hues are not uncommon.

Crude oil is classified by the location of its origin (e.g. West Texas Intermediate,
WT, Brent, Dubai or Minas) and often by its relative weight or viscosity (light,
intermediate or heavy); refiners may also refer to it as `sweet’, which means it
contains relatively little sulphur, or as `sour’, which means it contains substantial
amounts of sulphur and requires more refining in order to meet current product
specifications. The number of carbon atoms determines the oil's relative `weight’
or density. Gases generally have one to four carbon atoms, while heavy oils and
waxes may have 50, and asphalts, hundreds.

Crude oil from an area in which the crude oil's molecular characteristics have
been determined and the oil has been classified are used as pricing references
throughout the world. These references are known as Crude oil benchmarks

After considering availability of indigenous crude oil, balance crude oil is required
to be imported. IndianOil sources its crude oil requirement from Far East, Gulf
region, Mediterranean, West Africa and Latin American sources.
Submitted by: Amit Roy 66
Pricing

Pricing is an importance component of marketing mix of the firm. Determining


the price of different product of the firm is very difficult task of marketing
manager. Price denotes monetary value of a product. It represents the amount of
money for which a product can be exchanged. In other words, prices represent
the exchange value of goods and services in terms and money, price is all around.

The price strategy of company is very set. They price their product according to
the cost of production and also be kept an eye on the price of the competitors of
that segments and demand of the product in the market. Indian Oil group ensures
and easily affordable price through excellent transportation to common man.

Distribution Network

The products blended at Lube Blending Plants are distributed to the various end
customers through the following distribution channels:

 Lube Blending Plants


 Central Inventory Points
 CFAs
 SSAs
 SSIs
 Retail Outlets

Submitted by: Amit Roy 67


Lube Blending Plants

Themselves double up as storage point and serve directly for major customers like
Defense, Railways, and major industries like Steel , power Plants etc.

Central Inventory Point (CIP)

It is stocking point for small volume grades. It is also the main stock point for LBPs
and the product blended and filled at LBPs are moved to this point. One CIP is
situated in each region. Basically the CIP reduces the inventory at the
manufacturing plants whose core activity is manufacturing and not warehousing.

Carrying & Forwarding Agent

IOCL’s Lubrication business is undergoing a complete re-engineering and as part


of this exercise, the rationalization of stocking points and appointment of parties
to discharge the carrying and forwarding function, called as CFAs to streamline
lubes distribution is being done.

The CFAs will be handling very high volumes- on an average each CFAs will
handles volumes of 500-1000 KL per month based on current sales.

Servo Stockiest (SSAs)

The retail auto segment sized at 6,82,000 KL per annum Is a large market
opportunity. This segment comprises different customer segment like like
commercial vehicles, cars 4-wheelers, tracktors.

Servo Stockiest Industries (SSIs)

The retail industrial segment is sized at 600000 KL per annum. This segment
comprises small and medium scale companies in following industries-light,
medium engineering, construction, agro and food products, spinning snd textile,
flour mills, chemicals, plantation etc.

Submitted by: Amit Roy 68


Retail Outlets

The core activity of Retail Outlets is marketing of MS and HSD. The automobile
owners buy their requirement of auto Lubes from the outlets with the fuel.

Group Companies and Joint Ventures

 Indian Oil Technologies Ltd : Indian Oil Technologies Ltd. Is the marketing
arm for the entire range of technologies developed at the R&D Centre of
Indian Oil Corporation Limited.
 These technologies are tailor made and meant to provide competitive
advantages. Indian Oil Technologies is built on strength of its credibility
proven in its sister division.

Indian Oil Technologies Ltd. Headquarters are located at Indian Oil R&D Centre,
Faridabad.

 Indianoil (Mauritius) Ltd


 Lanka IOC PLC – Group company for Lanka retail and storage operations
which is listed on Colombo’s stock exchange.
 It was locked into a bitter subsidy payment dispute with Sri Lanka’s
government which has since been resolved.
 IOC Middle East FZE
 Bongaigoan Refinery and Petrochemicals Ltd
 Green Gas Ltd.-Joint venture with Gas Authority of India for city-wide gas
distribution networks.
 Indo cat Pvt Ltd., with intercat, USA for manufacturing 15,000 tonnes per
annum of FCC (fluidized catalytic cracking) catalysts & additives in India, for
catering to rising global demand.

Numerous exploration and production ventures with Oil India Ltd, Oil and Natural
Gas Corporation.

Submitted by: Amit Roy 69


Training Institutes

Indian oil is an academy company with 21 training centers for mid career skill-sets
up-gradation. People will get to rub shoulders with a peer group drawn from the
best technical and B-school in India. People will have a deep personal and job
satisfaction when they get the wonderful opportunity to use cutting-edge
technology in refinery and pipeline operations, projects, automation, reward
management etc.

Indian Oil encourages employee participation in management and suitable


rewards innovative suggestions schemes etc. enrich its work culture. Indian Oil
today has one of the best records in the industry for accident-free man-hours.

Indian Oil’s apex learning institute – Indian Oil Institute Of Petroleum


Management (IIPM) at Gurgaon near Delhi conducts Management Development
Programmes round the year on organizational goal and strategies, diversification
and globalization plans. IIPM has established with objectives for imparting
management education. In a dynamic business environment, manager needs to
constantly upgrade competencies and strengthen individual capacities for
organizational effectiveness. The institute offers unique learning opportunities
around contemporary management practices and application through a wide
range of learning strategies, including management development programmes in
all major areas.

Submitted by: Amit Roy 70


A BRIEF OVERVIEW ON USES OF JBO IN JUTE MILLS

Jute Batching Oil


 
JBO is a middle distillate produced by petroleum refineries. There are two grades of JBO available viz. JBO(C) and
JBO(P). JBO(C) is a lighter product whereas JBO(P) is heavier. (C) indicates “Clear” and (P) indicates “Pale”. JBO is
obtained as a straight run product by distillation of crude oil in the petroleum refineries. Based on market
requirements, JBO(C) or JBO(P) are produced

Production
Production of JBO by refinery is regulated based on the offtake. Currently, following refineries are producing JBO :

Refineries Grade
IOC Haldia JBO(C) & JBO(P)
 
End Use
JBO is mainly used as Jute Batching Oil in the jute industry to make the jute fibres
pliable. JBO is also used by processors to produce various industrial oils.
Since Jute materials are used in packaging of food material, presence of heavier
Oil (which may contain carcinogenic compounds) are not desirable. Similarly,
presence of lighter material may give Kerosene like odour and hence not desired
in JBO.

JBO is also used as Wash Oil by the Steel Plants for recovering aromatic products
from the coke oven gas. JBO(C) & JBO(P) can be used for this purpose.

Marketing arrangement
JBO/Wash Oil is sold ex Haldia Refinery on ex MI basis through customers tank
trucks. Besides, we have upcountry storage at Vizag from where product is loaded
in tank trucks.

Submitted by: Amit Roy 71


JUTE BATCHING OIL/WASH OIL

SPECIFICATION

1.0 General Description:

JBO is a middle distillate produced by Petroleum refineries. There are two grades of
JBO available viz. JBO(C) and JBO (P). JBO(C) is a lighter product whereas JBO (P) is
heavier. (C) indicates “Clear” and (P) indicates “Pale”. JBO is obtained as a straight run
product by distillation of crude oil in the petroleum refineries. Based on market
requirements, JBO(C) or JBO (P) are produced

2.0 Production:

Production of JBO by refinery is regulated based on the off take. Currently, following
refineries are producing JBO:

Refineries Grade

IOC Haldia JBO(C) & JBO (P)

3.0 Specification of JBO:

IS: 1758 – 1986


Submitted by: Amit Roy 72
Characteristic Requirement Method
of test
Type-1 Type-2

Colour, ASTM, Max. L 7.0 L 7.0 P : 12

ii) Flash Point, closed (Pensky Martens), C. 100 130 P : 21


Min.

iii) Density at 15 C g/ml, min 0.850 0.850 P : 32

iv) Kinematic, viscosity at 37.8 C. cst, max 15 15 P : 25

v) Pour point, C. Max 21 for summer P : 10

& 9 for winter (Nov to Feb)

vi) Emulsification test Shall pass the test -

vii) Iodine value Not limited but to be -


reported

viii Distillation P : 18
)
a) IBP, min 240 C 285 C

b) FBP, 760 mmHg, 371 C --

max

c) Residue, % by vol., max 2 --

ix) UV absorbance test --

a) Pyrene content, ppm, Max 25 --

b) UV Absorbance per cm optical path


length

280-299 nm

300-319 nm

320-359 nm 2.3 --
360-400 nm 1.2 --

0.8 --

0.3 --

4.0 End Use:

JBO is mainly used as Jute Batching Oil in the jute industry to make the jute fibres
pliable. JBO is also used by processors to produce various industrial oils.

Since Jute materials are used in packaging of food material, presence of heavier Oil
(which may contain carcinogenic compounds) are not desirable. Similarly, presence of
lighter material may give Kerosene like odour and hence not desired in JBO.

JBO is also used as Wash Oil by the Steel Plants for recovering aromatic products from
the coke oven gas. JBO(C) & JBO(P) can be used for this purpose.

5.0 Marketing arrangement:

JBO/Wash Oil is sold ex Haldia Refinery on ex MI basis through customer’s tank trucks.
Besides, we have upcountry storage at Vizag from where product is loaded in tank
trucks.

Submitted by: Amit Roy 74


INTRODUCTION ON JUTE MILL

Industrial development in West Bengal dates back to the latter part of 19 th


century when jute mills were set up along the side of the river hoogly. These were
followed by engineering, iron and steel, cotton textile, chemicals and other
industries. At present, important large scale industries in West Bengal include (1)
Jute & Textile (2)Iron & Steel (3)Engineering (4) Petroleum Refining (5) Chemicals
(6)Paper (7)Tea (8) Cotton Textile & (10)Leather. West Bengal is the pioneer and
till now most important state in the country for the manufacturing of jute textile.
At present there are 81 jute mills in West Bengal (including now operating jute
mills). In 2000-2001, total production in jute textile in W.B was 1.39 million tones.

The jute sector occupies an important place in Indian economy in general and
eastern region in particular. The jute industry provides direct employment to
about 0.26 million farm families. Keeping in view its growing contribution to the
economy, the Government of India has started the “Jute Technology Misson”.
This will benefit jute growers, the worker engaged in jute industry, jute
entrepreneurs and other employed in associated activities in the jute sector. It
will help modernize the jute industry and enables the country to reap the benefits
of enhanced levels of jute diversification.

Submitted by: Amit Roy 75


FLOWCHART ON PROCESSING OF JUTE IN JUTE MILL

JUTE BALLS IN
GODOWN

SELECTION
Jute Manufacturing in Jute Mills
SOFTNING
Selection:
In the selection process, raw jute bales are opened to find out any defect and to
PILING/CONDITIONI
remove the defective portion from the mora by experienced workers. Raw jute bales
NG and 180 kg weight with or without top portion
are of two types i.e. 150 kg weight
cutting. The bales are assorted according to end use like Hessiean weft, Sacking
wrap, Sacking weft etc. After selection, jute bales are carried to softning section by
CARDIHG
workers called Gariwala and Bajawala

DRAWING AND DOUBLING

SPINNING

WINDING
SACKING
Softning :
InHESSIAN
softening process jute morahs are made soft and pileable. Two methods are used
BEAMING/DRESSING
for softning; use of softening machine and use of jute good spreader. Generally an
CUTTING
emulsion plant with jute softner machine is used to lubricate and soften the bark and
gummy raw jute. The emulsion plant consists of gear pump, motor, vat, jet sprayer,
LAPPING
nozzles, emulsion tank and the jacket.WEAVING
In this softening process jute becomes soft and pileable and
suitable for carding. SEWING

DAMPING
BUNDLING

CALENDERING

PACKING(HYDROLC
Submitted by: Amit Roy
PRESS)
77

Piling and pile Breaking :


The main function of pile breaker is to break the pile and serve it to the carding
machines. The softner machine out put material carried by pilemen through a bile to
the pile place for pilling. During piling a superficial moisture penetrates inside fibre
and "Thermo fillic" action take place which softner the hard portion of the root. After
piling for nearly 24 hours the pile breakers carry the material to the carding
machine.
Generally root cutting is done after piling near the hand feed breaker carding
machine. The root weight varies from 5 to 7% of the total weight of jute.

Carding :
Carding is a combining operation where jute reeds are splitted and extraneous
matters are removed. Jute fibres are formed into ribbon called "sliver". There are
three different carding sections: (i) breaker carding (ii) inner carding (iii) and finisher
carding

Breaker Carding :
In different jute mills the carding operations has been carried out in two ways:
a. Hand feed breaker carding
b. Rool feed breaker carding
The material after piling more than 24 hours is used in hand feed breaker where the
material after piling for 12 hours used in the rool feed carding.
In the Breaker carding machine soften jute after piling is feed by hand in suitable
weight. The machine by action with different rollers turns out raw jute in the form of
jute sliver for finisher carding. In this process root cutting is necessary before
feeding the material to the hand feed breaker carding machine.

Submitted by: Amit Roy 78


Finisher Carding :
Finisher carding machine make the sliver more uniform and regular in length and
weight obtained from the Breaker carding machine. Finisher carding machine is
identical to the Breaker carding machine, having more pair of rollers, staves, pinning
arrangement and speed. Nearly 4 to 12 slivers obtained from Breaker carding
machine is fed on this machine. The material thus obtained is send to drawing
section.
Drawing
Drawing is a process for reducing sliver width and thickness by simultaneously
mixing 4 to 6 sliver together. There are three types of Drawing Frame machine. In
most mills 3 Drawing passages are used in Hessian and 2 Drawing passages are used
in Sacking.

First Drawing:
The slivers obtained from finisher carding machine is fed with four slivers on to the
first drawing frame machine. The first drawing frame machines makes blending,
equalising the sliver and doubling two or more slivers, level and provide quality and
colour. This machines includes delivery roller, pressing roller, retaining roller, faller
screw sliders, check spring, back spring, crimpling box etc..

Second Drawing :
In second drawing, the Second Drawing Frame machine obtain the sliver from the
First drawing machine and use six slivers and deliveries per head. The Second
Drawing machine makes more uniform sliver and reduce the jute into a suitable size
for third drawing.

Third Drawing :
In the third drawing, the Third Drawing frame machine uses the sliver from second
drawing. The Third Drawing machine is of high speed makes the sliver more crimpled
and suitable for spinning. The comparison of the three drawing process:

Submitted by: Amit Roy 79


Spinning :
Spinning is the process for producing yarn from sliver obtained from Third drawing.
In the spinning process slivers are elongated and fibres are twisted into yarn to
impart strength. spun yarns in the spinning process are wound onto Bobbins. after
to fill the empty bobbins with yarn machine is stopped, replace these bobbins by
empty bobbins. The entire time is called an average cycle time. The time for
replacing the bobbins full of yarn by empty bobbins is called softing time.
The jute spinning frame machine is fitted with slip draft zone and capable of
producing quality yarns at high efficiency with auto-dofting arrangements also. A 4',
pithch slip-draft sliver frames available of 20 spindles 100 spindles, having a
production range 8 uls to 28 uls with a flyer speed of 3200 to 4000 RPM. Spinning of
several types of yarn is processed by spinning frame machine using different kinds of
bobbins, such as: Food Grade HCF, Sacking Wrap, Hessian Wrap, Hessian Weft.

Winding :
Winding is a process which provides yarn as spools and cops for the requirement of
beaming and weaving operations. There are two types of winding :
(i) Spool Winding
(ii) and Cope Winding

Submitted by: Amit Roy 80


Beaming :
Beaming process is follows after spool winding. In Beaming operation yarn from
spool is wounded over a beam of proper width and correct number of ends to weave
jute cloth. To increase the quality of woven cloth and weaving efficiency, the wrap
yarns are coated with starch paste. Adequate moisture is essential in this process.
Quality characteristic of a beam is width of beam - number of ends and weight of
stand and there is a continuous passage of yarn through starch solution from spools
to the beam.
Strach solution in water contains tamerine kernel powder (TKP), antiseptic - sodium
silica fluride(NaSiF4) and its concentration varies with the quality of yarn.

Weaving :
Weaving is a process of interlacement of two series of threads called "wrap" and
"weft" yarns to produce the fabric of desired quality. There are separate looms for
hessian and sacking in weaving section. The Hessian looms, shuttle which contents
cops (weft yarn) is manually changed. The sacking looms are equipped with eco-
loader to load a cop automatically into the shuttle.

Dumping :
Dumping is the process in which the rolled woven cloth is unrolled and water is
sprinkled on it continuously to provide desired moisture. Each roll is generally104
yards or 95.976 meters. Damping is done manually.

Calendering :
Calendering is a process similar to ironing of fabric. After damping the damped
fabric passes through pairs of heavy rollers rendering threads in fabric flattened and
improve the quality and appearance.

Submitted by: Amit Roy 81

Lapping :
Lapping is the process in which Hessian fabrics are folded into the required size used
in "Bale press" operation on the lapping machine.

Cutting:
Cutting is the process where the sacking cloth is cut to the required length for
making bags for different size such as A-Twill bags and B-twill bags of 100 kg
capacity.

Hemming :
In Hemming process, the raw edges of sacking cloth cut pieces are shown by folding
it with sewing machine.

Herackele Sewing :
In Herackele sewing the sides of sacking cloth cut pieces are shown to make a
complete bag.

Bailing :
Bags or Bale processing cloths are pressed compactly according to buyers need.

Submitted by: Amit Roy 82


Jute Batching Oil is Used to Softening Jute Fibre

Traditional method of softening jute fibre was to make it spinnable through


application of petroleum based Jute Batching Oil (JBO). This method is almost on
the verge of extinction. The present day health conscious world is not ready to
accept even the minimal presence of Hydrocarbon residues in jute bags to
migrate into the food grade items packed therein. International Jute Organisation
in conjunction with IOCCC, CMA and CAOBISCO have determined in 1998 the
international criteria for Foodgrade Jute Bags.

India being the largest producer of jute goods in the world was very much aware
of this changed world phenomenon. IJIRA (the Indian Jute Industries Research
Association) accepted the challenge of inventing an alternate Jute Batching Oil
which would prevent presence of Hydrocarbon in jute bags. Through sustained
and intensive research, IJIRA developed a suitable non-toxic alternative Batching
Oil, based on Rice Bran Oil. When jute fibres are treated in this process, they not
only meet the criteria determined by the IJO and others but also remain free from
any undesirable odour or odours unlikely of jute. This alternate JBO from IJIRA
also received international recognition and being patented.

With the invention of Jute Batching Oil (Rice Bran Oil based), a Hydro Carbon Free
process, IJIRA selected a few Mills including Hastings Jute Mill, who installed a
new process line, completely different from the petroleum based JBO process. It
received license from IJIRA which carries out continuous monitoring and
inspection at the Mill to maintain quality parameters.

Hastings Jute Mill produces HydroCarbon Free Food Grade Quality Jute Cloths
and Bags which may be plain, laminated and polylined strictly as per the laid
down International Analytical and Organoleptic criteria under rigid quality control
of the IJIRA.

Food Grade items like Cocoa, Coffee Beans and Shelled Nuts need natural,  non-
toxic material to retain their  freshness,  natural  aroma and taste Thus
HydroCarbon free jute bags manufactured, by Hastings Jute Mill are the ideal
packaging medium for them.

Submitted by: Amit Roy 83

RESEARCH DESIGN

During the MBA programme at the institute we are given the theoretical
knowledge of the basic concept of management, the functional area being
Personnel, Finance, Production and Marketing. Though these concepts are based
on analysis and experience, yet without any exposure to the actual occurrence of
business situations trade practices all this taught seems meaningless and vague.
This to discover the difference between theory and practices, I underwent 2
months training programme in Indian Oil Corporation Limited.

A study without objectives will end with no conclusion and merely be wastage of
resources. So every study is done to achieve certain objectives and the objectives
must be fixed and clear through the study.

The research objectives are:

To ascertain the awareness level about JBO.

To ascertain market potential form Jute Mills.

To find major market player and their present market share.

To analyzing the buying behavior of consumer, that is, from where, when,
how do they buy JBO.

To examine the factors influencing the buying decision of consumer.

To analyze the areas in which IOCL is perceived to be weak.

To analyze the customer preferences.

To assess the satisfaction level of customer.

Submitted by: Amit Roy 84


FACT FROM JUTE MILLS VISITED

NO NAME OF JUTE MILLS CONSUMSION


CAPACITY
KL/MONTH
1 KELVIN JUTE MILL 60
2 BAWREA JUTE MILLS PVT. LTD 60
3 NEW CENTRAL JUTE MILL CO. LTD 60
4 GABGES JUTE PVT.LTD 41
5 DALHOUSIE JUTE MILL 100
6 LOOMTEX ENG. PVT LTD 60
7 CHEVIOT CO. LTD 150
8 EMPIRE JUTE MILL 100
9 KAMARHATI CO. LTD 60
10 HAWRAH JUTE CO. LTD nil
11 1. CALEDONIAN JUTE & INDUSTRIES LTD. 72

12 BHARAT JUTE MILL 12


13 THE HOOGLY 36
14 THE CALCUTTA JUTE MFG. CO. LTD 12
15 CRESCENT JUTE CO. LTD 5
16 KANKINARRHA CO. LTD 48
17 AMBIKA JUTE MILL LTD 60
18 BALLY JUTE MILLS 60
19 GLOSTER JUTE MILLS LTD 100
20 JAYSREE FIBRE PRODUCT LTD 12
21 ALLIANCE MILLS MRS. LTD 60
22 SREE DURGA FIBRE PRODUCTS(P) LTD 10
23 MAHADEO JUTE & INDUSTRY LTD 36
24 TIRUPATI JUTE INDUSTRIES LTD 16
25 JAGATDAL JUTE & INDUSTRIES LTD 60

Submitted by: Amit Roy 85


USES OF JBO / MONTH (SAMPLE SIZE 25)

consumption of JBO
60 kl
1.00 1.00 1.00 1.00 12 kl
1.00 1.00 1.00 100 kl
2.00 36 kl
72 kl
41 kl
16 kl
3.00 5 kl
9.00 150 kl
48 kl
4.00 nil

HOW DOES JBO SERVE THE INDUSTRY

16 ---- MILLS

AGE
S
GOOD
COM ME N T 8 ---- MILLS
AVER
NO
1 ---- MILL
Submitted by: Amit Roy 86

ANY ALTERNATIVE PRODUCT USED IN PLACE OF JBO

2 MILLS
23 MILLS

IN FUTURE JBO CONSUMTION INCREASE

10 MILLS 5 MILLS

10 MILLS
E
O
N
2
3
%
5
Submitted by: Amit Roy

13 MILLS

NO
1
2
3
4
5
6
7
8
9
WASTAGE % OF JBO ON DELIVERY & USES

2 MILLS

NEW CENTRAL JUTE MILL CO. LTD


GABGES JUTE PVT.LTD
DALHOUSIE JUTE MILL
LOOMTEX ENG. PVT LTD
CHEVIOT CO. LTD
EMPIRE JUTE MILL
KAMARHATI CO. LTD
7 MILLS

IF JBO’S/UNIT PRICE INCREASE IT IS AFFORDABLE

KELVIN JUTE MILL


NAME OF JUTE MILLS

BAWREA JUTE MILLS PVT. LTD


3 MILLS

DEPENDS
YES
YES
YES
DEPENDS
NO
NO
YES
YES
87
Submitted by: Amit Roy 88

10 HAWRAH JUTE CO. LTD NIL


11 2. CALEDONIAN JUTE & INDUSTRIES LTD. NO

12 BHARAT JUTE MILL DEPENDS


13 THE HOOGLY YES
14 THE CALCUTTA JUTE MFG. CO. LTD DEPENDS
15 CRESCENT JUTE CO. LTD YES
16 KANKINARRHA CO. LTD YES
17 AMBIKA JUTE MILL LTD YES
18 BALLY JUTE MILLS YES
19 GLOSTER JUTE MILLS LTD DEPENDS
20 JAYSREE FIBRE PRODUCT LTD NO
21 ALLIANCE MILLS MRS. LTD YES
22 SREE DURGA FIBRE PRODUCTS(P) LTD DEPENDS
23 MAHADEO JUTE & INDUSTRY LTD YES
24 TIRUPATI JUTE INDUSTRIES LTD NO
25 JAGATDAL JUTE & INDUSTRIES LTD NIL
Submitted by: Amit Roy 89

CONCLUSION

The project named “survey on uses of JBO and assessing future potential of the
product” by Indian Oil Corporation Limited, gives an overview of present
scenario of market potentiality and market demand of various Jute Mills in West
Bengal, Howrah and Hooghly .

Based on the above report the conclusion can be drawn that as the Jute Industries
are sick industry consumption of oil product in general decline, but the survey
show a very positive result as the financial year’s consumption increased.

The market research conducted can solve the management problem if errors not
occur. Finally we enjoyed the project and we proud to work for Indian Oil
Corporation Limited. We would look forward to a better opportunity from IOCL if
we get it.
Submitted by: Amit Roy 90

RECOMMENDATION

Seminars at regular intervals may be conducted to carry out a direct


interface between the buyer and the management to get all feedback or
provide up to date information as well.
Subsidies to be given by the Government of India or IOCL as these are sick
industry.
Prior notice to be given in case of fluctuation of Oil prices with relation to
International market.
The dis-satisfied customer should be dealt properly.
The container should be checked properly weather it is containing the
required quantity or not.
Free technical service to be given.
Customer redressal department should be developed.
Communication gap should be reduced
Economic order quantity of customer should be determined.

BIBLIOGRAPHY

www.iocl.com

www.jute-industry.com

www.google.co.in

en.wikipedia.org
Submitted by: Amit Roy 91

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