The Refinery industry comes under Energy group. It’s a commodity type industry.

Industry Strengths

Hugh refinery capacities in India and now India is an exporter of petroleum products
No substitute and customers have to pay the mandated prices
Huge and growing demand for crude and gas from industrial sector where it is used for power generation
Hugh and growing demand for gas like LPG and fuel like kerosene from domestic sector

Industry Weakness

Raw materials, crude oil and gas are largely imported and subjected to fluctuating prices
Crude oil supply is controlled by OPEC which influences the price
High level of government involvement
Heavily dependent on subsidies from government
Capital intensive, long gestation periods and high risk
Impacted negatively by weak rupee

Growth Drivers

Global economic growth which leads to increasing demand for crude oil and gas
Government proactive policies aimed towards India’s energy security
Government incentives to promote the sector especially to foreign and Indian private players.
High demand from aviation, power generation, fertilizer and road transportation sector
Growing industrial and domestic consumption

Indian Oil Corporation is the largest oil marketing company in India with a ~47% market share. It also has the largest network of retail outlets across the country (more than 25,000 outlets). It also has the largest refining capacity in the country at 80.7mtpa. It has commissioned its 15mtpa refinery at Paradip which is the most complex PSU refinery. IOCL also has a large presence in pipelines and chemicals.

Its business interests span the entire hydrocarbon value-chain ranging from refining, pipeline transportation and marketing of petroleum products to exploration and production of crude oil and gas, marketing of natural gas and petrochemicals.

Segments and Products

The Company's segments include
1.Sale of Petroleum Products,
2.Sale of Petrochemicals and
3.Other businesses.

Its Other businesses segment includes sale of gas, explosives and cryogenics, wind mill and solar power generation, and oil and gas exploration activities.

It has a portfolio of energy brands that include Indane liquefied petroleum gas (LPG) cooking gas, SERVO lubricants, XTRAPREMIUM petrol, XTRAMILE diesel and PROPEL petrochemicals.

It operates approximately 25,000 petrol and diesel stations, including over 6,200 Kisan Seva Kendra outlets in the rural markets. It owns and operates over 10 refineries with a combined refining capacity of over 80.7 million metric tons per annum.