Indian Oil Corporation Ltd.
The Indian Oil Corporation Ltd. operates as the largest company in India in terms of turnover and is the only Indian company to rank in the Fortune “Global 500″ listing. The oil concern is administratively controlled by India’s Ministry of Petroleum and Natural Gas, a government entity that owns just over 90 percent of the firm. Since 1959, this refining, marketing, and international trading company served the Indian state with the important task of reducing India’s dependence on foreign oil and thus conserving valuable foreign exchange. That changed in April 2002, however, when the Indian government deregulated its petroleum industry and ended Indian Oil’s monopoly on crude oil imports. The firm owns and operates seven of the 17 refineries in India, controlling nearly 40 percent of the country’s refining capacity.
Indian Oil owes its origins to the Indian government’s conflicts with foreign-owned oil companies in the period immediately following India’s independence in 1947. The leaders of the newly independent state found that much of the country’s oil industry was effectively in the hands of a private monopoly led by a combination of British-owned oil companies Burmah and Shell and U.S. companies Standard-Vacuum and Caltex.
The oil industry in India changed dramatically throughout the 1990s and into the new millennium. Reform in the downstream hydrocarbon sector–the sector in which Indian Oil was the market leader–began as early in 1991 and continued throughout the decade. In 1997, the government announced that the Administered Pricing Mechanism (APM) would be dismantled by 2002.
Principal Subsidiaries: Indo Mobil Ltd. (50%); Avi-Oil Ltd. (25%); Indian Oiltanking Ltd. (25%); Petronet India Ltd. (16%); Petronet VK Ltd. (26%); Petronet CTM Ltd. (26%); Petronet CIPL Ltd. (12.5%); IndianOil Petronas Ltd. (50%); IndianOil Panipat Power Consortium Ltd. (26%); IndianOil TCG Petrochem Ltd. (50%); Librizol India Pvt. Ltd. (50%).
Principal Competitors: Bharat Petroleum Corporation Ltd.; Hindustand Petroleum Corporation Ltd.; Royal Dutch/Shell Group of Companies.
Indian Oil Corporation (IOC), established in 1959, is engaged in exploration and production and marketing of oil. It is India’s largest company saleswise with a turnover of Rs 2,47,479 crore ($ 59.22 billion).
IOC has subdiaries namely Indian oil Technologies, Chennai Petroleum Corporation, Bongaigaon Refinery & Petrochemicals, IndianOil (Mauritius) and Lanka IOC.
It provides spectrum of petroleum products through its retail outlets like XtraCare (Urban), Swagat (Highway) and Kisan Seva Kendras (Rural).
IOC provides auto gas, aviation turbine fuel, bitumen-a binder used for road construction, high speed diesel, bulk industrial fuels like furnance oil, Indane gas, Servo Lubricants and greases and special products like benzene and surplur.
It has created brands like Indane LPG, Servo Lubricants, Autogas LPG, XtraPremium Branded Petrol, XtraMile Branded Diesel, XtraPower Fleet Card.