NIT GRADUATE SCHOOL OF MANAGEMENT

PROJECT REPORT
ON

“A details study on operation management of Indian Oil

Corporation Limited”
Submitted to
Rashtrasant Tukadoji Maharaj Nagpur University, Nagpur
for the award of degree of
Master of Business Administration
course specialization in

Operation
Management Prepared
by:
Akshay Ramesh Kohad
Guide:
Ast./Prof. Vaibhav Bhalerao

2019-2021

“A details study on operation management of Indian Oil Corporation Limited”

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NIT Graduate School of Management

Survey No. 13/2, Mahurzari, Katol Road, Nagpur – 441 501

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CHAPTER 1

INTRODUCTION

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INTRODUCTION OF THE COMPANY

Asian Paints Limited was established way back on February 1, 1942 and today stands as India’s largest
paint company and Asia’s third largest paint company with an annual turnover of Rs 5,463 crore. Presently
the company is having its presence in 22 countries with 28manufacturing locations, over 2500 SKU’s,
Integrated SAP - ERP & i2 – SCM solution. Besides Asian Paints, the group operates around the world
through its subsidiaries Berger International, Apco Coatings, SCIB Paints and Tubman. The company
manufactures paints in the category of Decorative, Automotive and Industrial segment. Apart from these
the company also manufactures various Accessories like, Wall Primer, Wood Primer, Putty and Strainers
etc. Asian Paints along with its subsidiaries has operations in 20 countries across the world and 28 paint
manufacturing facilities, servicing consumers in 65countries through Berger International, SCIB Paints-
Egypt, Asian Paints, Apco Coatings and Tubman. Asian Paints operates in 5 regions across the world viz.
South Asia, South East Asia, South Pacific, Middle East and Caribbean region through the five corporate
brands viz. Asian Paints, Berger International, SCIB Paints, Apco Coatings and Tubman. In 10 markets, it
operates through its subsidiary, Berger International Limited; in Egypt through SCIB Paints; in 5 markets
in the South Pacific it operates through Apco Coatings and in Fiji and Samoa it also operates through
Tubman. The company is having state-of-the-art supply chain system using cutting edge technology to
integrate all its plants, regional distribution centers, outside processing centers and branches in India. All
the company’s plants in India, two chemical plants, 18 processing centers, 350 raw material and
intermediate goods suppliers, 140 packing material vendors, 6 regional distribution centers, 72 depots are
integrated. The company is having a big and experienced R&D team which has successfully managed to
develop High-end exterior finished and wood finishes in-house, which was earlier imported into the
country. These products are currently marketed under Asian Paints Elastomeric Hi-Stretch Exterior paint
and Asian Paints PU wood finish respectively. The company is having three subsidiaries viz, Apco
Coatings - it is a subsidiary of Asian Paints in the South Pacific islands. The company operates in
Australia, Fiji, Tonga, Solomon Islands and Vanuatu under the brand name of Apco Coatings. On the
recommendations of Booz, Allen and Hamilton, Asian Paints restructured itself into Growth, Decorative
and International business units and has adopted SCM and ERP technology. Asian Paints aims to become
the5th largest decorative paint company in the world Product range of the company includes:

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 Automotive Paints
 Decorative Paints
 Industrial Paints
Ancillaries - Range of ancillaries like primers, fillers strainers, and a lot more.
Milestones
:1957 – 66 - The family-owned company makes the transition to a professionally managed organization.
British company Balmer Lawrie rejects the products of a giant British paint company in favor of Asian
Paints. Asian Paints embarks on an ambitious grassroots marketing campaign, partnering with thousands of
dealers in small towns all over India.1945 - Asian Paints touches a turnover of Rs. 3,50,000, with an
innovative marketing strategy 'to reach consumers in the remotest corners of the country with small packs.'
1954 - Asian Paints mascot, Gattu, the mischievous kid, isborn.1st February, 1942 - Armed with little
knowledge and great determination ,Champaklal H. Choksey, Chimanlal N. Choksi, Suryakant C. Dani and
Arvind R.Vakil get together to manufacture paint in a garage on Foras Road, Bombay. They name their
company 'The Asian Oil & Paint Company', a name that they picked randomly from a telephone directory.

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ECONOMIC ANALYSIS

We believe Asian Paints is a direct play on the growing India Consumption story. Analysis of the past data
trends suggest strong correlation between paints volume growth and India GDP growth. Volume growth of
paints is typically 1.5-2x of GDP growth. Paints industry suffered in the second half of FY09 on account of
a slowdown in the domestic economy. Paints being a discretionary item, purchases tend to get postponed in
an environment of income uncertainty as well as weak consumer sentiment. FY09 also witnessed a spurt in
the raw material prices; thus, aggravating the impact. Paints volume growth for FY09 slowed down
to13.4% in FY09 compared to 17.8% and 17.5% in FY07 and FY08, respectively. Given expectations of
strong GDP growth, we expect paints demand to continue to witness robust demand momentum. We
forecast volume growth of 15% and 14%, on the back of improving consumed sentiments and pick-up in
urban discretionary demand.70% of the decorative paints demand is on account of re-painting, while
30%comes from fresh painting; thus, dependent on the health and buoyancy of the property sector. Given
the expectations of revival in residential property markets after the weakness, we expect construction of
new homes to provide an additional catalyst for paint demand. In the absence of any authentic data on
construction of new homes, we take housing loan disbursement from HDFC, India’s largest mortgage
lender, as a proxy for demand from new construction.

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International division

International division of Asian Paints contributes nearly 17-18% of consolidated revenues. Asian Paints is
primarily present in 17 countries spread over following 5 key regions:

1) Middle East

2) Caribbean

3) South Asia

4) South East Asia

5) South Pacific

Interestingly, despite the global economy facing a major slowdown in FY09, international division of
Asian Paints has posted 28.5% revenue growth, higher than the 24.4% witnessed in domestic decorative
business. Middle East and South Asia contribute nearly 93% of International EBIT. Profitability of South
East Asia continues to remain a drag. Management has intermittently reviewed the viability of certain
international units and exited from some of the South East Asian markets like Hong Kong, Thailand,
Malaysia etc. Asian Paints strategy in international markets is divided into two parts:

Leadership regions (Caribbean, South Pacific):

a) Focus on improving cash flows
b) Increase market share by 100bps each year.

Growth regions (Middle East, South Asia, South East Asia):

a) Focus on top- line growth
b) Aims to be amongst the top three players in every market where it is present.

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INDUSTRY ANALYSIS
 The Fast Moving Consumer Goods (FMCG) industry primarily deals with the production, distribution and
marketing of consumer packaged goods, i.e. those categories of products that are consumed at regular
intervals. Examples include food & beverage, personal care, pharmaceuticals, plastic goods, paper&
stationery and household products etc. The industry is vast and offers a wide range of job opportunities in
functions such as sales, supply chain, finance, marketing, operations, purchasing, human resources, product
development and general management. Global leaders in the FMCG segment are Sara Lee, Nestlé, Reckitt
Benckiser, Unilever, Procter & Gamble, Coca-Cola, Carlsberg, Kleenex, General Mills, Pepsi and Mars
etc.
Performance
 In India, the FMCG industry is the fourth largest sector with a total (organized) market size of over
US$15 billion in 2007, as per ASSOCHAM, and can be classified under the premium and popular
segments. The premium segment (~25%) caters mostly to the higher/upper middle income
consumers while the price sensitive popular or mass segment (~75%) consists of consumers
belonging mainly to the semi-urban or rural areas who are not, and cannot afford to be, brand
conscious.

 The market growth over the past 5 years has been phenomenal, primarily due to consumers’
growing disposable income which is directly linked to an increased demand for FMCG goods and
services. Indeed, itis widely acknowledged that the large young population in the rural and semi-
urban regions is driving demand growth, with the continuous rise in their disposable income, life
style, food habits etc. On the supply side, the wide availability of raw materials, vast agricultural
produce, low cost of labor and increased organized retail have helped the competitiveness of
players.

 At a time when the economy and other large industrial sectors such as automobiles, aviation and
financial services are reeling from the global slowdown, the consumer goods sector in India has
managed to defy the trend. According to the recent reports by Zeus Consulting, India's FMCG
industry has so far been resilient to the slowdown in the economy and a dip in consumer sentiment,
with most companies posting double-digit growth in net profits in the first half of fiscal 2009,
backed by healthy sales. As very categorically said by the Amway India Enterprises managing
director and chief executive, Mr. William Pinckney, “I am not saying that our company [sector] is
recession-proof but it is recession-resilient.” This statement on the whole stands strong for most the
leading players in the FMCG sector.

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 While a price hike and cost-cutting were the first lines of defense in a bid to protect margins, Indian
manufacturers were able to let logic rather than bottom lines dictate measures, with increased
marketing efforts, a well-thought product mix and new launches helping them emerge unscathed
from the turmoil. The prospects going forward also remain promising. Adi Godrej, Chairman and
MD of Godrej Consumer Products Limited (GCPL) and Chairman of Godrej Industries feels that
the best policy would be to provide tremendous fiscal and monetary stimuli to the economy, “…
[stimuli is needed] especially in industries connected with consumer finance. Once that is done, the
economic growth will come through and that will generally create multiplier factors. FMCG already
seems to be doing quite well and FMCG sector will have its best year ever in 2009-10,” he said.

 
 

RATIO ANALYSIS
Ratio analysis is a widely used tool of financial analysis. It can be used to compare the risk and return
relationships of firms of different sizes. It is defined as the systematic use of ratio to interpret the financial
statements so that the strengths and weaknesses of a firm as well as its historical performance and current
financial condition can be determined. 
CLASSIFICATION OF RATIOS:
Different ratios are used for different purposes. These ratios can be grouped into various classes according
to financial activities. Ratios are classified into four broad categories:
 Liquidity ratios
 Leverage ratios
 Profitability ratios
 Activity ratios

1.
GROSS PROFIT RATIO
: It measures the percentage of each sales rupee remaining after the firm has paid for its goods. And it is also known
as gross margin ratio.
Gross profit
Formula:- ∗100
Net sale

Table :-
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Table 5.1.1
(RS IN CRORE )

Particulars 2009-2010 2008-2009 2007-2008

Gross profit 2501.27 2599.19 1475.97
Net sales 5125.08 4270.05 3416.16
Ratio 48.8% 60.87% 43.2%
Chart:-

Gross Profi t Rati o

0.7

0.6

0.5

0.4

0.3

0.2

0.1

0
2009-2010 2008-2009 2007-2008

INTERPRETATION:

A high ratio of gross profit to sales is a good sign of a good management as it implies that the cost of
production of the firm is relatively low. While a relatively low gross margin is definitely a danger signal,
warranting a careful and detailed analysis of the factors responsible for it. Here in 2008-2009 the ratio is
the highest where as it has decreased from 60.87% to 48.80% in 2009-2010 which means the company’s
cost of production has increased which is not good for the company.

 
2.
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Net Profit Margin:

It measures the percentage of each sales rupee remaining after all costs and expenses including interest and
taxes have been deducted.
Earnings before taxes
Formula:- ∗100
Net sales

Table :-
Table 5.1.1
(RS IN CRORE )

Particulars 2009-2010 2008-2009 2007-2008

Net Profit Before
1153.85 621.33 616.59
Taxes
Net sales 5125.08 4270.05 3419.06

Ratio 22.51% 14.55% 18.03%

Chart:-
Net Profi r Rati o
0.25

0.2

0.15

0.1
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1

0
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Interpretation: The net profit margin is indicative of management’sability to operate the business with
sufficient success. A high net profitmargin would ensure adequate return to the owners as well as enable
afirm to withstand adverse economic conditions when selling price isdeclining. Here it has increased in
2010 which is good for the company.

3.
Current ratio
: This ratio establishes a relationship between currentassets and current liabilities. The objective of
calculating this ratio is tomeasure the ability of the firm to meet its short term obligation.
Current assets
Formula :-
Current liabilities

Table :-
Table 5.1.1
(RS IN CRORE )
Particulars 2009-2010 2008-2009 2007-2008
Current assets 1342.28 1228.42 1043.67
Current liabilities 1460.44 957.74 951.05

Current “A
ratio (time) 0.92 1.28 1.09
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Chart:-

Current Rati o (Time)

1.40%
1.28%

1.20%
1.09%

1.00%
0.92%

0.80%

0.60%

0.40%

0.20%

0.00%
2009-2010 2008-2009 2007-2008

 
Interpretation: The higher the turnover ratio, the more efficient is the management and utilization of the
assets while low turnover ratios are indicative of underutilization of available resources and presence of
idle capacity. Here in 2009 it was higher while in 2010 it has decreased again.

4.
Quick ratio
: It is the ratio between quick current assets and current liabilities and is calculated by dividing the quick
assets by the current liabilities.
Quick assets
Formula :-
Current liabilities

Table :-
Table 5.1.1
(RS IN CRORE )
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Particulars 2009-2010 2008-2009 2007-2008

Quick assets 579.14 681.71 791.77
Current liabilities 1460.44 957.74 951.05

Quick ratio (time) 0.40 0.71 0.83

Chart:-

Current Rati o (Time)

0.90%
0.83%
0.80%
0.71%
0.70%

0.60%

0.50%

0.40%
0.40%

0.30%

0.20%

0.10%

0.00%
2009-2010 2008-2009 2007-2008

Interpretation: A Quick ratio of 1:1 is considered satisfactory as a firm can easily meet all current claims. It
provides in a sense a check on liquidity position of a firm. Here it has shown a decreasing trend from which
can say that the company is having more assets which has tied up in slow moving and unsalable inventories
and slow paying debts.

 
5.
Book value per share:
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It represents the equity of the equity shareholder on a per share basis. It is computed dividing net worth by
the number of equity shares outstanding.
Net worth
Formula:
Number of equity shares outstanding
 Table: 
Particulars 2009-2010 2008-2009 2007-2008
Net worth 1557.22 1094.47 928.50
No.of shares 9.592 9.592 9.592

Book value pershare 162.35 114.10 96.8

Chart:

Book value per share

180
162.35
160

140

120 114.1

100 96.8

80

60

40

20

0
2009-2010 2008-2009 2007-2008

Interpretation: it is used as a benchmark for comparisons with the market price per share. However it has a
serious limitation as a valuation tool as it is based on the historical costs of the assets of a firm. Here it is
highest in the year 2009-2010.

 
 
6.
Earnings per share:
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It measures the profit available to the equity share holders on a per share basis. It is calculated by dividing
the profits available to the equity shareholders by the number of shares outstanding. Formula:
Net profit
Number of ordinary shares outstanding
Table:
Particulars 2009-2010 2008-2009 2007-2008
Net profit 1004.50 562.36 525.20
No.of eq. shares 9.592 9.592 9.592

Earnings pershare 104.72 58.63 54.75

Table 5.1.6
(RS IN CRORE)
Chart:

Earning per share

120
104.72
100

80

58.63
60 54.75

40

20

0
2009-2010 2008-2009 2007-2008

Interpretation: It is a widely used ratio. As a measure of profitability of a firm from the owner’s point of
view, should be used cautiously as it does not recognize the effect of increase in equity capital as a result
of retention of earnings. Here it has increased in three years.

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ROLE OF OPERATION MANAGEMENT

Operations is one of the three strategic functions of any organization. This means that it is a vital
part of accomplishing the organization’s strategy and ensuring its long-term survival. The other
two areas of strategic importance to the organization are marketing and finance. The operations
strategy should support the overall organization strategy. Many companies prepare a 5-year pro-
forma to assist in their operation planning. The pro forma uses information from past and current
financial statements in an effort to predict future events such as sales, and capital investments.

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GOAL OF OPERATION MANAGEMENT

The goal of operations management is to maximize efficiency while producing goods and
services that effectively fulfill customer needs.Countless operating decisions must be made that
have both long- and short-term impacts on the organization’s ability to produce goods and
services that provide added value to customers. If the organization has made mostly good
operating decisions in designing and executing its transformation system to meet the needs of
customers, its prospects for long-term survival are greatly enhanced.

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MAIN COMPONENTS OF OPERATIONS MANAGEMENT

● Forecasting - Component that caters to historical data, facts, figures, and statistics within the
organization.

● Location strategies - Oversees product base, market base, and vertically differentiated locations.

● Maintenance - Locates methods to reduce frequency of failures within the production facility.

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● Purchasing - Could be either centralized, decentralized, or combined.

● Scheduling - Pertains to scheduling of equipment or labor.

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● Total Quality Management (TQM) - Enables the organization to work toward zero defects
within the organization.

● Quality - The overall ability to meet consumer expectations in terms of product quality.

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● Just In Time - System that will match stock availability with demand; can also have stock
arriving exactly when needed.

● Materials Requirements Planning - Effectively manages inventory levels to ensure for cost
reduction.
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● Process and System Performance - Measured through examination, capacity utilization, or

production.

● Layout of Facilities - Ensure for a smooth workflow.

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● Inventory Management - Adequately controlling stock within an organization.

Advanced Planning and Scheduling Software (APS) is a key software that can benefit
manufacturing operations around the globe. It offers thorough insight within operations
management and can take your manufacturing operation to the next level in terms of efficiency
and optimization.

COMPANY PROFILE:-

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Indian Oil Corporation (Indian Oil) is India's largest commercial enterprise, with a sales turnover
of Rs. 4,50,756 crore (US$ 73.7 billion) and profits of Rs. 5,273 crore for the year 2014-15. It is
also the leading Indian corporate in Fortune's prestigious 'Global 500' listing of the world's
largest corporate, ranked at the 75th position for the year 2020.

As India's flagship national oil company, with a 33,000-strong work-force currently, Indian Oil
has been meeting India’s energy demands for over half a century. With a corporate vision to be
'The Energy of India' and to become 'A globally admired company,' Indian Oil's business
interests straddle the entire hydrocarbon value-chain – from refining, pipeline transportation and
marketing of petroleum products to exploration & production of crude oil & gas, marketing of
natural gas and petrochemicals, besides forays into alternative energy and globalization of
downstream operations.

Indian Oil began operations in 1958 as Indian Oil Company Ltd. The Indian Oil Corporation was
formed in 1964, with the merger of Indian Refineries Ltd. Recently Indian Oil Corp (IOC) has
raised $500 million by selling 10-year dollar-denominated bonds, its fourth such issue overseas
in
.
the last three and a half years In 2018, its Nagpur Refinery was awarded the "Best of all" Rajiv

Gandhi National Quality Award.

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Mr. Sanjiv Singh (Chairman, Indian Oil)

Sanjiv Singh was appointed as the Chairman of Indian Oil Corporation (IOCL), the country’s
largest commercial enterprise and the biggest state-run fuel retailer.

The Appointments Committee of Cabinet approved his appointment to the post of Chairman and
Managing Director (CMD) for a period of five years, an order issued by the Ministry of
Personnel & Training said. He will be assuming the charge on or after
June 1.

Singh is currently Director (Refiners) at IOC. Prior to this, he worked as Executive Director (In-
Charge) at the Paradip Refinery Project in Odisha. He had earlier held the post of Executive
Director (In-Charge) at the Panipat Refinery where he was responsible for setting up Naphtha
Cracker and other downstream polymer units.

A graduate in Chemical Engineering from Indian Institute of Technology (IIT) at Roorkee,

Singh also holds a Diploma in Management. He had joined IOC in 1981 and has worked in
various positions at Mathura, Barauni and Panipat Refineries. 56 year-old Singh has also
worked on Deputation for Nigeria's National Petroleum Company. He is also known for
leading an expert team from the Indian Oil to KNPC (Al-Ahmadi Refinery) in Kuwait to
assist in reducing their turnaround time in the Fluid Catalytic Cracker (FCC) unit. The first-
of-its- kind assignment is understood to have brought praise for Indian Oil.

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Petroleum
Type Public Sector Undertaking Products
Natural gas
Petrochemicals
BSE: 530965 Revenue ₹605,924 crore (US$85
Traded as
NSE: IOC billion) (2019)
NSE NIFTY 50 Constituent

ISIN INE242A01010 Operating ₹36,952 crore (US$5.2

income billion) (2019)

Industry Oil and Gas Net income ₹16,894 crore (US$2.4

billion) (2019)

Predecessor Indian Refineries Total assets ₹335,155 crore (US$47

Ltd. (1958) billion) (2019)
Indian Oil Company (1959)
Founded 30 June 1959; 61 years ago Total equity ₹1,555 crore (US$220
million) (2019)

Headquarters New Delhi (headquarters) Owner Government of India (52.1%)

Mumbai (registered
office)
Area served India, Sri Lanka, Number of 33,498 (2019)
Middle East, Mauritius employees

Key people Sanjay Singh (Chairman) Subsidiaries IndianOil (Mauritius) Ltd.

CPCL
Lanka IOC PLC
IOC Middle East FZE
Indane (LPG)
Website www.iocl.com

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OPERATIONS

World's highest retail outlet, Kaza, Himachal

Pradesh

IOCL Petrol Pump under construction in

Khammam

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A typical IOCL petrol pump in cities of India - Chembur, Mumbai

An IOCL refinery in Bihar at night

An Indian Oil tanker in front of terminal 1C of Chhatrapati Shivaji Maharaj International Airport

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BUSINESS DIVISIONS

There are seven major Business Divisions in the organisation:

● Refineries Division
● Pipelines Division
● Marketing Division
● R&D Division
● Petrochemicals Division
● Exploration & Production (E&P) Division
● Explosives and Cryogenics Division

REFINERY LOCATIONS

● Barauni Refinery
● Bongaigaon Refinery
● CPCL, Chennai
● CPCL, Narimanam
● Digboi Refinery
● Guwahati Refinery
● Haldia Refinery
● Koyali Refinery
● Mathura Refinery
● Panipat Refinery
● Paradip Refinery

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PIPELINES

● Salaya - Mathura crude oil pipeline

● Mundra - Panipat crude oil pipeline
● Paradip-Haldia-Barauni crude oil pipeline
● Koyali - Mohanpura product pipeline
● Koyali - Ahmedabad product pipeline
● Guwahati - Siliguri product pipeline
● Barauni - Kanpur product pipeline
● Haldia - Mourigram - Rajbandh product pipeline
● Haldia - Barauni product pipeline
● Panipat - Jalandhar LPG pipeline
● Dadri - Panipat R-LNG pipeline
● Koyali - Ratlam product pipeline
● Koyali - Dahej/ Hazira product pipeline
● Panipat - Bhatinda product pipeline
● Panipat - Rewari product pipeline
● Panipat - Ambala - Jalandhar product pipeline
● Mathura - Delhi product pipeline
● Mathura - Bharatpur product pipeline
● Mathura - Tundla product pipeline
● Chennai - Trichy - Madurai product pipeline
● Chennai - Bangalore product pipeline
● Chennai ATF pipeline
● Bangalore ATF pipeline
● Kolkata ATF pipeline
● Paradip - Raipur - Ranchi product pipeline

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CHAPTER 2

SURVEY OF LITERATURE

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SURVEY OF LITERATURE

The review of literature guides the researchers for getting better understanding of methodology
used, limitation of various available estimation procedures and database, and lucid interpretation
and reconciliation of the conflicting results. Besides this, the review of empirical studies explores
the avenues for future and present research efforts related to the subject matter. In case of
conflicting and unexpected results, the research can take the advantage of knowledge of their
researchers simply through the medium of their published works. A number of research studies
have been carried out on different aspects of performance appraisal by the researchers,
economists and academicians in India and abroad. Different authors have analyzed performance
in different perspectives. A review of these analyses is important in order to develop an approach
that can be employed in the context of the study of Indian automobile industry. Therefore, the
present chapter reviews the empirical studies related with different aspects of Financial
Efficiency.
It has long been argued that efficient working capital management should contribute to the
creation of shareholder value. This study investigates the relationship between working capital
management and firm profitability for a sample containing both listed and delisted South African
industrial firms. The results obtained from the full sample revealed statistically significant
negative relationships between a firm’s profitability (as quantified by the return on assets in the
narrower sense) and its net trade cycle (NTC), debt ratio and liquidity ratio. Similar results are
onserved if the listed firms are investigated separately. In the case of firms that delisted during
the period under review, however, the liquidity and debt ratios appear to play a more important
role than the NTC. Based on the results of this study, it would appear that management could
attempt to improve firm profitability by decreasing the overall investment in net working capital.
Survey of the existing literature indicates that so far no specific study has been carried on to
examine the profitability analysis of Indian Oil industry after liberalization in the manufacturing
sector. The present study is an attempt in this direction and therefore, aims to enrich the literature
of financial performance relation to Indian Oil industry.

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OBJECTIVES OF
STUDY

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OBJECTIVES OF THE STUDY

The main objective of this study is to understand the project of operation

management in Indian Oil Corporation.
To know about the financials as well as other operational process.

To understand the setup of petrol pump and other channels in the multiple locations.

To understand the manufacturing and distribution project of Indian oil corporation.

To understand the pricing method of Indian Oil corporation.

To understand the marketing process of Indian oil corporation.

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CHAPTER 3

RESEARCH METHODO

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Research Methodology

A research process consists of stages or steps that guide the project from its conception through
the final analysis, recommendation and ultimate actions. The research process provides a
systematic, planned approach to the research project and ensures that all research project and
ensures that all aspects of the research project are consistent with each other.

Research studies evolve through a series of steps, each representing the answer to a key question.

INTRODUCTION

This chapter aims to understand the research methodology establishing a framework of

evaluation and revaluation of primary and secondary research. The techniques and concepts used
during primary research in order to arrive at findings; which are also dealt with and lead to a
logical deduction towards the analysis and results.

RESEARCH DESIGN

I propose to first conduct an intensive secondary research to understand the full impact and
implication of the industry, to review and critique the industry norms and reports, on which
certain issues shall be selected, which I feel remain unanswered or liable to change, this shall be
further taken up in the next stage of exploratory research. This stage shall help me to restrict and
select only the important question and issue, which inhabit growth and segmentation in the
industry.

The various tasks that I have undertaken in the research design process are:

● Defining the information need

● Design the exploratory, descriptive and causal research.

Research Process
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The research process has four distinct yet interrelated steps for research analysis

It has a logical and hierarchical ordering:

● Determination of information research problem.

● Development of appropriate research design.
● Execution of research design.
● Communication of results.

Each step is viewed as a separate process that includes a combination of task, step and specific
procedure. The steps undertake are logical, objective systematic, reliable, valid, impersonal and
ongoing.

Exploration Research

The method I used for exploratory research was

● Primary Data
● Secondary Data

PRIMARY DATA

New data gathered to help solve the problem at hand. As compared to secondary data which is
previously gathered data. An example is information gathered by a questionnaire. Qualitative or
quantitative data that are newly collected in the course of research. Consists of original
information that comes from people and includes information gathered from surveys, focus
groups, independent observations and let results.Data gathered by the researcher in the act of
conducting research. This is contrasted to secondary data, which entails the use of data gathered
by someone other than the researcher information that is obtained directly from first-hand
sources by means of surveys, observations or experimentation. Primary data is basically
collected by getting questionnaire filled by the respondents.

SECONDARY DATA

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Information that already exists somewhere, having collected for another purpose. Sources
include census reports, trade publications and subscription services. There are two types of
secondary data: internal and external secondary data. Information compiled inside or outside the
organization for some purpose other than the current investigation Researching information,
which has already been published? Market information compiled for purposes other than the
current research effort; it can be internal data, such as existing sales- tracking information, or it
can be research conducted by someone else, such as a market research company or the U.S
government.

Secondary source of data used consists of books and websites

My proposal is to first conduct a intensive secondary research to understand the full impact and
implication of the industry, to review and critique the industry norms and reports, on which
certain issues shall be selected, which I feel remain unanswered or liable to change, this shall be
further taken up in the next stage of exploratory research.

DESCRIPTIVE RESEARCH

STEPS in the descriptive research:

Statement of the problem

● Identification of information needed to solve the problem

● Selection or development of instruments for gathering the information
● Identification of target population and determination of sampling plan.
● Design of procedure for information collection
● Collection of information
● Analysis of information
● Generalizations and/or predictions

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DATA
COLLECTION

Data Collection
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Data collection took place with the help of questionnaires. The questionnaire method has come
to the more widely used and economical means of data collection. The common factor in all
varieties of the questionnaire method is this reliance on verbal responses to questions, written or
oral. I found it essential to make sure the questionnaire was easy to read and understand to all
spectrums of people in the sample. It was also important as researcher to respect the samples
time and energy hence the questionnaire was designed in such a way, that its administration
would not exceed 4-5 mins. These questionnaires were personally administered.

The first-hand information was collected by making the people fill the questionnaires. The
primary data collected by directly interacting with the people. The respondents were contacted at
shopping malls, markets, places that were near to showroom of the consumer durable products
etc. The data was collected by interacting with 200 respondents who filled the questionnaires and
gave me the required necessary information. The respondents consisted of housewives, students,
businessmen, professionals etc. the required information was collected by directly interacting
with these respondents.

DETERMINATION THE SAMPLE PLAN AND SAMPLE SIZE

TARGET POPULATION

It is a description of the characteristics of that group of people from whom a course is intended.
It attempts to describe them as they are rather than as they are rather than as the describer would
like them to be. Also called the audience to be served by our project includes key demographic
information (i.e.; age, sex etc.). The specific population intended as beneficiaries of a program.
This will be either all or a subset of potential users, such as adolescents, women, rural residents,
or the residents of a particular geographic area. Topic areas: Governance, Accountability and
Evaluation, Operations Management and leadership. A specific resource set that is the object or
target of investigation. The audience defined in age, background, ability, and preferences, among
other things, for which a given course of instruction is intended.

Sample Size
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This involves figuring out how many samples one need.

The numbers of samples you need are affected by the following factors:

Project goals

How you plan to analyze your data

How variable your data are or are likely to be

How precisely you want to measure change or trend

The number of years over which you want to detect a

trend How many times a year you will sample each point

How much money and manpower you have

Sample size

I have targeted 150 people in the age group above 21 years for the purpose of the research. The
target population influences the sample size. The target population represents the Delhi regions.
The people were different professional backgrounds.The details of our sample are explained in
chapter named primary research where the divisions are explained in demographic section.

Research design

Research design is a conceptual structure within which research was conducted. A research
design is the detailed blueprint used to guide a research study towards its objective. It is a series
of advanced decision taken together comprising a master plan or a model for conducting the
research in consonance with the research objectives. Research design is needed because it
facilitates the smooth sailing of the various research operations, thereby making research as
efficient as possible yielding maximum information with the minimum effort, time & money.

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CHAPTER 4
DATA
INTERPRETATION

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CHAPTER 5

SUGGESTIONS

SUGGESTIONS

1. Recruitment and Selection policy is explaining the negative variance on Perceived

Organizational Performance, which means that the organizations recruitment and
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selection

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policy is not effective and it is required for the corporation to make some changes in
recruitment and selection policy which should suit the employees of the organization and
thereby improve perception of all stakeholders towards the organization.
2. Indian Oil Corporation training & development policy is not effective. This means that
the organization’s training & development policy is not up to the mark and it may require
making some modifications in terms of training development programs. Organization’s
training & development programs should be based on the objectivity.
3. The need-based analysis should be done before every training, and decisions be made as
to what content should be included in the training course so as to improve employees’
performance and the organizational performance.
4. Organization’s job definition policy is not clearly defined. There is a flaw in the job
description. The corporation should give special attention in the area of inappropriateness
while defining the job for each employee in order to improve organizational performance
of the firm.
5. Impact of recruitment & selection, job definition, and training & development practices
on perceived market performance in case of Indian Oil Corporation Limited (IOCL) are
not effective. Hence, the organization should pay special attention in the area of
incongruity in order to improve market performance of the organization.

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CHAPTER 6
CONCLUSION

CONCLUSION

Indian Oil Corporation Limited Company has a very good market share in the state of Maharashtra
(Nagpur).
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The Oil & Gas Industry is among six core industries in India and plays a major role in the growth
of the Indian economy. India is the 6th largest consumer of crude oil. Around 70% of the
demand is fed by the imports of oil and natural gas. Oil Industry is considered to be the backbone
of any economy. Due to rapid globalization, fast-changing technological era and drastic change
in ways and means of doing business, there have emerged tremendous opportunities and
challenges for the petroleum companies in India to expand their business operation to the global
market. Human resource is essential for the effective & efficient functioning of these
organizations. Organizations are made up of people. Best brain on the board is very important for
existence & survival of any organization.

The present research titled “An appraisal of human resource policies and practices in Oil
Industry- a comparative study of Indian Oil Corporation and Essar Oil Limited” is aimed to
provide a clear picture of the impact of existing human resource policies and practices on
perceived organizational performance and employees’ satisfaction in Indian Oil Corporation and
Essar Oil Limited. The study has empirically examined the impact of select human resource
practices that influence organizational performance and employees’ satisfaction in both the
Corporations.

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CHAPTER 7

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REFERENCES

REFERENCES

SOURCES FROM INTERNET:

https://www.iocl.com/
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ttps://en.wikipedia.org/wiki/Indian_Oil_Corporation

BOOKS:

Operations Strategy by Michael Lewis

Operations Management by William J. Stevenson

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