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    Case Study-Entring International Market

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    Indian Oil Corporation (IOC) has expanded into global markets through various entry strategies including exporting, turnkey projects, strategic alliances, joint ventures, and wholly owned subsidiaries. IOC set up a subsidiary in Mauritius called Indian Oil Mauritius Ltd to build a bulk storage terminal and gas stations. It also formed a wholly owned subsidiary in Sri Lanka called Lanka IOC Pvt Ltd, which acquired retail outlets and receives tax exemptions from the Sri Lankan government. IOC uses different entry methods based on factors like control, resource commitment, and risk.

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    Case Study-Entring International Market

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    feelfreetodropin
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    Indian Oil Corporation (IOC) has expanded into global markets through various entry strategies including exporting, turnkey projects, strategic alliances, joint ventures, and wholly owned subsidiaries. IOC set up a subsidiary in Mauritius called Indian Oil Mauritius Ltd to build a bulk storage terminal and gas stations. It also formed a wholly owned subsidiary in Sri Lanka called Lanka IOC Pvt Ltd, which acquired retail outlets and receives tax exemptions from the Sri Lankan government. IOC uses different entry methods based on factors like control, resource commitment, and risk.

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    Indian Oil Corporation (IOC) has expanded into global markets through various entry strategies including exporting, turnkey projects, strategic alliances, joint ventures, and wholly owned subsidiaries. IOC set up a subsidiary in Mauritius called Indian Oil Mauritius Ltd to build a bulk storage terminal and gas stations. It also formed a wholly owned subsidiary in Sri Lanka called Lanka IOC Pvt Ltd, which acquired retail outlets and receives tax exemptions from the Sri Lankan government. IOC uses different entry methods based on factors like control, resource commitment, and risk.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    629 views6 pages

    Case Study-Entring International Market

    Uploaded by

    feelfreetodropin
    Indian Oil Corporation (IOC) has expanded into global markets through various entry strategies including exporting, turnkey projects, strategic alliances, joint ventures, and wholly owned subsidiaries. IOC set up a subsidiary in Mauritius called Indian Oil Mauritius Ltd to build a bulk storage terminal and gas stations. It also formed a wholly owned subsidiary in Sri Lanka called Lanka IOC Pvt Ltd, which acquired retail outlets and receives tax exemptions from the Sri Lankan government. IOC uses different entry methods based on factors like control, resource commitment, and risk.

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    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
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    CASE STUDY- ENTRING INTERNATIONAL MARKET

    Indian Oil Corporation (IOC) is the largest commercial undertaking in India and the only Indian company in Fortune magazine s Global 500 Listing . As a part of its internationalization strategy, it has entered foreign market by using the following entry methods.

    Exporting
    IOC exports Servo Lubricant and other petroleum Products to a number of overseas markets including Bangladesh and Sri Lanka.

    Turnkey Projects
    In October 2002, IOC set up a wholly owned subsidiary- M/s Indian Oil Tanking Ltd, Mauritius, to construct a port oil terminal on a turnkey basis at Mer Rouge.

    Strategic Alliance
    For providing aviation fuel and refueling facilities at SSR international airport in Mauritius, Indian Oil Mauritius Ltd (IOML) has forged a strategic alliance with existing players, such as Shell, Caltex, and ESSO.

    Joint Venture
    IOC is also negotiating with Caltex to enter into a joint venture for installing a bottling plan and also for marketing LPG under a common brand name Mauri Gas in Mauritius.

    Wholly Owned Subsidiaries


    IOC has set up a wholly Owned Subsidiary in Mauritius- Indian Oil Mauritius Ltd (IOML)- with a huge projected investment. The company is setting up a state-of-thye-art bulk storage terminal at Mer Rouge to stock 24 thousand metric tons of vital petroleum products, auxiliary and bunkering facilities, and 25modern petrol (and gas) stations. IOML is also in a process of building infrastructure for storage, bottling and distribution of Indane and LPG . It is also planning to market its Servo lubricant in Mauritius. Besides, IOC has also formed a wholly owned subsidiary in Sri Lanka- known as Lanka IOC Pvt Ltd (LIOC). LIOC acquired 100 retail outlets owned by the Ceylon Petroleum Corporation in February 2003. It is the only private company besides state owned Ceylon Petroleum Corporation(CPC), to

    To operate retail petrol stations in Sri Lanka. Besides building and operating storage facilities at Trincomalee Tank Farm, LIOC is also involved in bulk supply to industrial consumers. In order to facilitate the operations of LIOC, the government of Sri Lanka has extended the following concessions. a. A tripartite agreement signed between the Sri Lankan Government, CPC, and LIOC guarantees that only three retail players (including CPC and LIOC) will operate in the Sri Lankan market for the next 5 years. b. LIOC has also been allowed income tax exemption for 10 years from the date of commencement of operations and a concessional tax of 15% thereafter against the prevailing rate of 35%.

    c. LIOC has also been granted customs duty exemption for import of project related plant, machinery and equipment during the project implementation period of five years, besides free transfer of dividend/income to India. As a strategic perspective, Indian Oil Corporation is moving towards globalizing its market.

    1. Identify the main reasons behind IOC s expansion into global markets. 2. IOC has adapted a mix of entry modes for approaching international markets. Critically evaluate the factors affecting IOC s selection of these entry modes. 3. In view of the emerging economic and political scenario, evaluate IOC s entry into Sri Lanka as a wholly owned subsidiary.

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