ONGC SWOT Analysis – SWOT Analysis of ONGC: ONGC which is an acronym for Oil and Natural Gas Corporation is a multinational Oil and Gas company and has its registered office in Vasant Kunj in New Delhi and was established on the 14th of August, 1956. It is a Private Sector enterprise of the Government of India and is India’s largest gas producer in addition to the largest Exploration Company.
It’s responsible for 70% manufacturing of India’s oil crude oils and contributes 62% to the production of natural gas. ONGC has discovered six of the seven producing Indian Basins that are commercially available. It has been a major contributor and has achieved many milestones in India’s energy ambitions. It has since developed into one of the biggest E&P companies globally by production as well as reserves.
ONGC fun facts: ONGC is the only fully–integrated petroleum company in India, operating along the entire hydrocarbon value chain.
About ONGC – SWOT analysis of ONGC
Company: The Oil and Natural Gas Corporation
CEO: Subhash Kumar
Founder: The government of India
Year founded: 14 August 1956
Headquarters: Vasant Kunj, New Delhi
Annual Revenue: INR18,347 crore
Profit | Net income: INR11,246 crore
Number of employees: 30,105
Products & Services: Petroleum | Natural gas | LNG | Lubricants | Petrochemicals | Electricity
Competitors: Petronas | IndianOil | HPCL | Oil India | Reliance Industries
SWOT analysis of ONGC – ONGC SWOT analysis
SWOT Analysis Of ONGC is brand-based. SWOT Analysis of ONGC 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 ONGC’s SWOT Analysis. Below is the detailed SWOT Analysis of ONGC.
Let’s talk about ONGC’s SWOT assessment.
Strengths of ONGC – ONGC SWOT analysis
Equity Brand Equity
ONGC has invested in developing an outstanding branding portfolio and has taken steps that it has created an atmosphere that supports the development of India’s Indian economy. It has played a leading part in the country’s growth procedure and also has CSR programs that have focused on several areas that are not developed in the country. It was also the recipient of the best employer award and has earned a good reputation within the Indian and also the international markets.
ONGC assures the quality of its products by automating its operations which has allowed the company to scale up or down its capabilities based on need circumstances. The company has established EPINET which is a live E&P Information network. ONGC also owns 3D reality centers, referred to”as the “Third Eye” for real-time information transformation for offshore and onshore applications. The company also has a Memorandum of Collaboration (MOC)with seven IITs for undertaking the most advanced R&D initiatives.
A Focus on Sustainability
ONGC has taken steps to ensure that it takes care of the environment. It also includes an integral Health, Safety & Environment (HSE) program that has proactively taken care of the environment. The company is committed to reducing the environmental harm it can result from activities like drilling exploration, production, and drilling by investing inefficient and efficient disposal and monitoring of environmental impacts, reporting, as well as environmental management processes.
The company also runs the ONGC Natural Gas STAR Program to help promote the implementation and reporting on profitable and non-powdered methane emission reduction initiatives.
Strong Dealer Community
ONGC has an established dealer community that is developing a positive culture among distributors and distributors, asking them not just to market the company’s products, but also to invest in education and training their sales staff to communicate and build the connection with customers and assist them in gaining the maximum benefit from the products.
Weaknesses of ONGC – SWOT Analysis Of ONGC
Tata Petrodyne, which happens to be a sister company under TATA. TATA brand is believed to be among the top Oil and Gas companies with a turnover of about $200 billion. Oil India Limited (OIL) is also regarded as the second-highest hydrocarbon E&P (Exploration and Production) company with more than 11,000 employees and a turnover of around 35 billion dollars.
Bharat Petroleum has refineries of major size located in Cochin as well as Mumbai and was listed among the Fortune 500 companies. The companies have invested in a variety of R&D initiatives and ONGC is required to take strategic choices so that it can stay ahead of competitors.
In the year-end fiscal year, which was completed on the 31st of March in 2018, ONGC reported a loss of 4000 million in natural gas production because the government mandated that the price for gas was lower than the price of production. The company claims there isn’t any more profitable venture than natural gas as the price of the production is high compared to gas costs.
The investment in R&D
The investment of the company in Research and Development is said to be lower than the top players in the market. While ONGC has a substantial amount of money on its R&D aspect, it hasn’t been capable of competing with the most prominent players in terms of innovations. The company has been portrayed as a business that prefers to release products based on tested and proven features.
Opportunities of ONGC – ONGC SWOT analysis
Rising Fuel Prices
If oil prices increase, that means the price of crude oil rises. for companies such as ONGC which are large upstream firms crude oil will be the end product and therefore crude oil is able to be sold at a higher price.
The government has announced a 10% rise in the cost of natural gas, at 3.36 dollars 3.36 for a million British thermal units for 6 months of this year. This has allowed the company to earn significant profits, which helped the business achieve its goal of breaking into the black following the increase in gas prices.
The company set up the Gas Hydrate Research and Technology Centre (GHRTC). This center supports India’s government’s plans for the commercialization of Gas Hydrates as an energy resource. This center run by ONGC has succeeded in identifying gas hydrate resources in the deep sea off India’s coasts. India and its fresh reserves are estimated at approximately 134 trillion cubic feet. These kinds of research activities will assist the company in identifying more lucrative possibilities.
Threats of ONGC – SWOT analysis of ONGC
Regulations of the government
There are always risks to the profits of the business from the ever-changing regulations of the government. There are instances when the government has requested ONGC to cut down on prices for diesel and petrol. There have been instances where it was said that the government demanded that the company absorb the rising cost of crude at a rate of Rs. 1 per Liter. The government’s regulations directly impact the profit of ONGC.
According to the International Energy Agency, the advanced technology for fuel along with electric vehicle technology is predicted to decrease the demand for oil in 2040 but it’s stated that the world will confront a supply problem if we don’t invest in the development of new products. The effectiveness of electric vehicles, as well as riding sharing technologies, is expected to decrease oil consumption and oil demand will slow down over the next decade.
Price fluctuations for crude oil
The decline in the rupee’s value, however, even though it’s a small amount is believed to contribute to the price of oil. International crude prices rose by 45% in relation to the dollar, and then the increase was 49% for the rupee. The increase in oil prices could cause inflationary pressures and make it necessary for the RBI to raise the rate of interest.
Overview Template of ONGC SWOT analysis
There is no doubt that ONGC is the most popular company responsible for energy and natural gas distribution. It has a robust business model and due to this, it is going strong in the competitive market. It is still a market leader even in the presence of heavyweights. They are bringing operational excellence to their business by keeping environmental factors in mind.
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