"IndianOil has grown over 2400 times" says Mr. Bankapur, Director (Refineries) in an interview at DNA Mumbai
Mumbai   05-Dec-2008
"IndianOil has fulfilled the most significant role of providing the energy needed for economic development and thereby fuelling the dreams and aspirations of the people of India", says Mr. Bankapur, Director (Refineries) in an interview at DNA Mumbai. <b>What are the parallels between the evolution of IndianOil and India's oil industry?</b> On the eve of Independence, India's oil industry was fully controlled by international oil giants. The Industrial Policy Resolution of 1956 laid the foundation for a national oil industry. Indian Refineries Limited was set up in 1958 and Indian Oil Company was formed in 1959. When the two were merged to form Indian Oil Corporation Limited in 1964, it was a major policy decision taken by the Government. For over three decades, IndianOil dominated the petroleum landscape and even today has half the market share in the business. In the face of innumerable hurdles, it was the crusading zeal of the early pioneers that was responsible for putting India's petroleum refining arid marketing industry on a firm footing. How we managed to break free from the stronghold of a handful of global multinational petroleum conglomerates and built up oil infrastructure of our own on this impressive and world-class scale is a fascinating legend. <b>How has IndianOil multiplied growth?</b> From a fledging company with a net worth of just Rs. 45 crore and sales value at Rs. 78 crore in the year 1965, to a turnover of over Rs two lakh crore, IndianOil has grown over 2400 times. IndianOil is India's largest commercial enterprise with a sales turnover of Rs. 2,47,479 crore (US $ 61.70 billion). IndianOil is also the highest ranked Indian company in the prestigious Fortune 500 listing moving up 19 places from last years' 135th position to the 116th position in 2008: Today, IndianOil is ranked among India's "Top Valuable" Companies in the Business Today 500 listing and is ranked 2nd amongst India's Top 50 Most Valuable Brands by Brand Finance. <b>What has been the specific transformation?</b> When IndianOil set up its first refinery at Guwahati in 1962, it was totally dependent on foreign technology and expertise. By 1982, when Mathura Refinery was commissioned, the foreign component was reduced to a mere 14%. Today IndianOil offers its expertise to other developing countries. At independence, in 1947 the country had just one refinery in Digboi to process crude oil into petroleum products. Today as the nation's flagship company IndianOil Group owns and operates 10 of India's 19 refineries with a combined refining capacity of 60.2 million metric tonnes per annum (MMTPA, or 1.2 million barrels per day), hi 1947, the country had only one crude oil pipeline from the Digboi field to the Digboi refinery Today IndianOil's cross-country pipelines network is nearly 9,300 km in length and 61.72 million metric tonnes per annum (MMTPA) in capacity. <b>How has IndianOil maintained its leadership position?</b> IndianOil's bouquet of brands - SERVO Lubricants, Indane LPG, XtraPremium and XtraMile branded fuels, XtraPower Loyalty programs are all leadership brands. Indane - IndianOil's brand of Liquefied Petroleum Gas (LPG) has revolutionized the kitchens of India. In Research & Development, we have risen to the status of a global technology provider, and are also focusing on commercializing green fuels such as bio-diesel and alternative fuels such as Hydrogen. IndianOil has already taken a number of initiatives for expanding its hydrocarbon value chain. Our overseas subsidiaries are doing well at Sri Lanka, Mauritius and UAE. IndianOil is steadily strengthening its global market. To enhance upstream integration IndianOil has been pursuing exploration and production activities of Oil & Gas both within and outside the country in collaboration with consortium partners. IndianOil already has a portfolio of 12 oil and gas blocks in India and 8 blocks in other 5 countries. <b>How is IndianOil gearing up to deal with new norms?</b> As per the Auto Fuel Policy of the Government of India, Petrol and diesel quality for 13 major cities will be as per BSIV norms from 1st April, 2010 as compared to the present level of BS- HI quality and rest of the country will switch over to BS - HI quality from the present level of BS - II. For diesel quality upgradation, projects like Once Through Hydrocracker at Haldia Refinery and Diesel Hydrotreater under Resid Upgradation Project at Gujarat Refinery are scheduled to-be commissioned by December, 2009. Additional reactors of DHDT at Panipat and Barauni are also being installed to improve diesel quality standards and the projects are expected to he completed by December 2009- MS [Petrol] Quality Up gradation Project at all the refineries have been initiated and are also expected to be completed by December, 2009. <b>What are your plans for driving future growth?</b> As part of IndianOil's initiatives for integration and diversification, the Corporation is implementing projects of over Rs. 50,000 crore currently. IndianOil as India's prime energy provider has fulfilled the most significant role of providing the energy needed for economic development and thereby fuelling the dreams and aspirations of the people of India. As a leading public sector enterprise of India, IndianOil has successfully combined its corporate social responsibility agenda with its business offerings, meeting the energy needs of millions of people everyday across the length and breadth of the country, traversing a diversity of cultures, difficult terrains and harsh climatic conditions. The Corporation takes pride in its continuous investments in innovative technologies and solutions for sustainable energy flow and economic growth and in developing techno-economically viable and environment-friendly products and services for the benefit of its consumers.