Indian Oil Corporation, the leading oil marketing company in the country, is bullish on its growth. The company registered its highest-ever crude oil throughput of 56.69 million tonnes during 2015-16, achieving capacity utilisation of 102.2 percent as against 98.9 percent in 2014-15. It also notched highest-ever profit of Rs 10,399 crore for 2015-16 and record profit of Rs 8,269 crore in the first quarter of 2016-17.

In 2015, the corporation sold a total of 72.65 million tonnes of petrol, diesel and LPG, which marks a 6 percent year-on-year growth.

IOC is also targeting massive growth in the coming years. Speaking at the company’s 57^th annual general meeting in Mumbai today, chairman B Ashok said Indian Oil Corporation is projecting a Rs 1.76 lakh crore investment to set up a mega refinery in Maharashtra. “We are evaluating land options for an integrated refinery and petrochemical complex in Maharashtra,” he said.

“At 14%, India sees one of the best growth in MS (motor spirit) worldwide. As per projections, India continues to be a growth centre. After the decontrol (of fuel prices), there are no under-recoveries, therefore bettering the marketing margins,” he added.

File photograph of B Ashok, chairman, Indian Oil Corporation.

India’s oil demand is projected to grow from 176 million tonnes in 2013 to about 458 million tonnes by the year 2040, which calls for a 3.7 percent compounded annual growth rate over the next 25 years. This would necessitate a corresponding increase in domestic refining capacity by way of major capacity expansion and new greenfield refineries.

To meet this demand, chairman B Ashok said the company plans to add about 24 million tonnes per annum refining capacity through brownfield expansions over the next five to six years. These will be concurrent to the projects being undertaken for the production of BS VI-grade auto fuels by April 2020.

Furthermore, it plans to extend its pipeline network across the country by 6,375 kilometres, taking its nodes to all major States. By the year 2022, its pipeline length is projected to surpass 17,500km with a combined throughput capacity of over 100 million tonnes per annum. Indian Oil also plans to build more sophisticated or ‘smart’ bulk storage terminals in high-consumption areas across the country to enhance the reliability of supplies.

Given the rapid pace of urbanisation and the growth of the automobile sector, Indian Oil is also considering major expansion of its fuel station network which currently numbers over 25,000 (which cater to over 15 million vehicles every day!). While the network is being modernised and automated on a massive scale, value-added services and non-fuel businesses at the fuel stations are also emerging as attractive propositions.