Oil Company Limited: Case Study Of The Indian Oil Corporation Limited

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Indian Oil Corporation Limited, or Iocl, is an oil and gas corporation in India, with its headquarters in New Delhi. It is the world's 119th largest public corporation in India.
With 49% share in the petroleum products market and 31% share in the refining capacity and 67% downstream sector pipelines capacity the Indian Oil Group of companies owns and operates 10 out of 22 refineries in India with a combined refining capacity of 65.7 million metric tons per year. In 2012 IOCL sold 75.66 million tons of petroleum products and reported a turnover of ₹37.54 billion, and the Government of India earned an excise duty of ₹200 billion and tax of ₹10.5 billion.
The company is mainly controlled by the Government of Indi owning approximately 58.57% …show more content…

Since the major supplier is ONGC which supplies approximately 42% of the total oil production combined in all over the world. Along with the top oil importing countries India is at 9th position with a requirement for one year around 1.5 million barrels from OPEC. So, assessing the dependence we can conclude that the supplier in oil industry enjoys more power and also have more power with regard to fixation of prices. But comparatively, the bargaining power of these suppliers has is becoming low as the purchase is happening from number suppliers. For instance Indian oil uses a method for purchasing which again is copied by other companies and vice …show more content…

Buyers need to be in the loop and should understand the market, here byers are of two types individual and also the industrial who buys from the upstream buyer like the Indian oil who tends create an artificial scarcity when the price is high so they can sell it when the price is high . This is due to the higher completion.
Existing players like the chemicals industries who can act as a substitute for the oil is also a threat for Indian oil. And the solar industry, nuclear power projects, bio gas power, coal etc. would be considered as the threats to Indian Oil. Since Oil industry requires a huge financial background and many environmental regulations to follow threat of new entrants in not an issue for Indian oil as they are already a big

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