IOCL SWOT Analysis – SWOT Analysis of IOCL: Indian Oil Corporation Limited is often referred to by the name Indian Oil. It is an oil and gas company owned by the state. company. It is the largest commercial oil company in India and in the year 2016, it was placed 1st on the Fortune India 500 list. It employs more than 33,000 and is a major player in distribution and marketing as well as refinery capabilities.
The company has an expanding network of 47,800 contact points. Indian Oil has played an important role in the social and economic growth in India and has continuously offered energy services for millions of people in the country. It is regarded as one of the nation’s most successful companies, with an annual turnover of approximately Rs. 5,06,428 crores, and an annual net profit of Rs. 21,346 crores for 2017-2018.
IOCL fun facts: In July 2021, Indian Oil Corporation Ltd. (IOCL) announced its plan to establish a green hydrogen plant at its Mathura refinery.
About IOCL – SWOT analysis of IOCL
Company: Indian Oil Corporation Limited
CEO: Shrikant Madhav Vaidya
Founder: Government of India | Ministry of Petroleum and Natural Gas
Year founded: 30 June 1959
Headquarters: New Delhi
Annual Revenue: INR3.83 lakh crore
Profit | Net income: INR21,762 crore
Number of employees: 33,498
Products & Services: LNG Lubricants Natural gas | Petrochemicals Petroleum
Competitors: Petronas | HPCL | Reliance Industries
SWOT analysis of IOCL – IOCL SWOT analysis
SWOT Analysis Of IOCL is brand-based. SWOT Analysis of IOCL evaluates the brand’s strengths, weaknesses, opportunities, and threats. Advantages and disadvantages can be attributed to internal factors while opportunities and threats can be attributed to external factors. We will be discussing IOCL’s SWOT Analysis. Below is the detailed SWOT Analysis of IOCL.
Let’s talk about IOCL’s SWOT assessment.
Strengths of IOCL – IOCL SWOT analysis
1.) Brand name with a strong brand
IndianOil offers a trademark of cooking gas LPG known as Indane which is sold to 12 crore people with a robust supply chain that includes 10,000 distributors. It is an industry market leading company in the field of lubricants by launching the brand name Servo. Their 107 fueling systems for aviation support 1750 flights per day. The company has been ranked as one of the top brands in India by UK-based Brand Finance. Reader’s Digest AC Nielsen Survey has named the company as one of the country’s “Most Trusted Brands” in the “Gasoline” category. The company has been able to live up to the concept that the company has set promising to improve customer relations and innovation, leverage technological advancements, and take care of the environment and the community.
2) Research and Development
The firm claims to be the world’s best and most prestigious R&D center. It has carried out cutting-edge research in the fields of pipeline, lubricant refinery alternative fuels, engine testing, and environmental sciences. The company holds 554 patents filed in India and other countries. Its R&D center is situated on the sprawling campus of 65 acres located in Faridabad, India. The center has succeeded in generating economically ecologically, socially, and environmentally sustainable technological solutions. The center is focused on cutting-edge research within the areas of nanotechnology, coal gasification and polymers, and Petrochemicals.
3) Strong Pipelines
The company is home to 13,400 km of pipelines that cross-country transport crude oil and refined petroleum products as well as natural gas. The company recently completed 543 km of pipeline sections. The company is the owner and operator of two Single-Point Mooring (SPM) terminals situated in the high-seas of Vadinnar as well as three other SPMs located at Paradip that serve as anchoring pipeline systems for transferring crude oil off ocean tanks and to tank farms located on the shore. The company runs crude oil tank farms which have the capacity to be huge and assures smooth transport back to refineries via pipelines.
4) Focus on Sustainability
This company has been a believer in sustainability. It is among the first investors in renewable energy sources. It has created a 200-MW portfolio of wind and solar power capacities that are expanding quickly. IOCL is exploring different options for converting waste into energy as part of the federal government’s Swachh Bharat Abhiyan. IOCL is also a market-leading company in the conversion of the distribution network of its retail stores to operate on solar power and has over one-third of its stations running using solar energy. The company has most of its focus on making its operations greener and aims to reduce water and carbon footprint by 20% and 18% respectively. Weakness In The SWOT Analysis of IOCL
Weaknesses of IOCL – SWOT Analysis Of IOCL
The major opponents of IOCL include Reliance Industries, ONGC, Hindustan Petroleum, and Bharat Petroleum. Tata Petrodyne It is very successful in the market and has earned an annual turnover of $35 billion dollars. Bharat Petroleum, a principal competitor of IOCL has invested in various R&D projects. It also has refineries situated in Mumbai in India and Cochin and was listed among the Fortune 500 companies. The company requires to make smart decisions and invest to stay ahead of rivals and to prevent losing its market part.
IOCL has suffered massive losses because of the government’s handling of the fuel price policy, as the majority of times, the central agency fails to keep its pledges to maintain the price of fuel at artificially low rates. The company continues to go through cycles of taking on more debt money and spending more money to ensure a continuous supply of fuel delivery to its customers, but the increasing cost of interest eats away at the company’s profit, which impacts its ability to move forward with the project forward to improve its efficiency.
Opportunities of IOCL – IOCL SWOT analysis
1) Industry Growth
The primary business of IOCL has been transportation, distribution, refining, etc. of petroleum products. This corresponds to the increasing demand for fuel in India. The company has increased its activities throughout the entire hydrocarbon price chain into gas and oil exploration as well as diversification into renewable and natural energy sources.
2) Market Expansion
IOCL is constantly expanding its international operations through its overseas presence located in UAE, Singapore, Mauritius as well as the USA. In 2017-18, the firm also established offices in Bangladesh as well as Myanmar. The company has also expanded its operations through joint ventures with trusted partners from overseas as well as India and India. Ratnagiri Refinery and Petrochemicals Ltd. It was founded by the joint partnership that was formed with BPCL as well as HPCL. The company is doing exceptionally well in the international market and has managed to create enormous potential for its business.
3.) A rising natural gas market
Natural gas is being viewed as a green alternative to fossil fuels and in conjunction in line with India’s government’s focus on the gas-based economy, initiatives are being made by government officials to make use of gas across all sectors. IOCL procures liquefied natural gas (LNG) via internationally-based suppliers and has signed a long-term agreement with them. IOCL currently provides LNG to 58 customers of institutional clients from power, fertilizer, industries, and steel.
Threats of IOCL – SWOT analysis of IOCL
1) Government Regulation
The government’s decision to offer relief from the rising cost of fuel to people caused huge losses to the company. The net profits of companies such as IOCL BPCL (Bharat Petroleum Corp. Ltd)and HPCL (Hindustan Petroleum Corp. Ltd.) were predicted to reach at least Rs. 9000 crore loss. Certain government decisions to lower diesel and petrol prices drastically impact the profits of the business.
2) Macroeconomic Condition
The company has a number of challenges due to rising oil prices fluctuation in foreign currency rates and growing concerns about air pollution. The company’s vision and primary strategy are to address the opportunities and challenges presented by the changing environmental conditions, as well as the integration and diversification of activities across its global business. With such a volatile environment it is the company’s goal to achieve cost-effectiveness across its supply chain which is a daunting job.
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Overview Template of IOCL SWOT analysis
Indian Oil is India’s flagship national oil company with business interests straddling the entire hydrocarbon value chain. The company is amongst the leading Indian corporates. The brand has leveraged its strengths such as its accessibility and widespread presence to continue to capture the interests of new customers and retain the old ones, especially with its loyalty programs that we discussed. Overall, Indian Oil has done well for itself in all the expected areas of marketing in its industry.
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