IndianOil's new SBU to tap global opportunities
New Delhi   18-Mar-2008
IndianOil, the country's energy major, has set up a separate strategic business unit (SBU) to market its petrochemical products and capture a major portion of the global market. According to sources dose to the development, "The SBU has five exclusive sub-groups, classified product wise (Linear Alkyl Benzene (LAB), PTA, polymers) and function-wise (logistics and exports)." The SBU has already established Indian Oil's LAB business both in India and abroad. At present, IndianOil is a major supplier to key players in the detergent industry, both nationally and internationally. Similarly, in the PTA business, IndianOil caters to all major customers. "A robust logistics model has been the key to lndia Oil's success and facilities have been put in place for seamless product dispatches by using' rail, road and sea transport", said IndianOil officials. It is learnt that the petro major is continuously striving for growth through integration of its core business with opportunities available in the petrochemicals sector. The IndianOil group of companies owns and operates 10 of the 19 refineries in the country with a combined capacity of 60.20 mtpa (1.2 million barrels per day). According to company sources, the LAB unit, used in the manufacture of detergents in the Gujarat refinery, achieved 93.3% capacity utilisation in its first full year of operation. The product has been successfully marketed within India, attaining a significant market share and has also been exported. Similarly, an integrated PX/PTA plant in Panipat refinery has commenced commercial production since June 2006. Moreover, Indian Oil has initiated various activities for setting up a world scale Naphtha cracker project along with downstream polymer units in Panipat. According to a Mumbai-based analyst, the world is now focusing on plasticulture, packaging for processed foods and consumer non-durables, automobiles and consumer durables, infrastructure development and innovative products for telecommunications and information technology services sector, among others. He added that IndianOil's growth strategy will help the SBU enrich the company in future. At present, IndianOil and its subsidiaries account for 47% petroleum products market share, 40.4% refining capacity and67%downstreamsectorpipelines capacity in India.