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‘To Study the Customer Outlook towards Supporting (NON FUEL REVENUE) Services at Petrol Pumps In Ranchi”<br />A Summer Project Submitted in Partial Fulfilment for Masters in Business Administration (MBA) In OIL & GAS Management<br />                                                            <br />                                              <br />                                     <br />                                                  By-<br />                                             Md Riz Zama<br />                Integrated BBA+MBA (Oil & Gas Management),<br />                    University of Petroleum & Energy Studies,<br />                                     Dehradun-248007.<br />      <br />  Department of Management & Business Administration<br />University of Petroleum & Energy Studies,<br />Bidholi, Dehradun-248007<br />Guide’s Certificate<br />To whom it may concern<br /> This is to certify that Md. Riz Zama, Roll no R250208013 of Integrated BBA+MBA (oil & gas management) IV semester, session-2008-2012 has prepared the project report titled ‘To Study the Customer Outlook towards Supporting (NON FUEL REVENUE) Services at Petrol Pumps in Ranchi”<br />This project is an outcome extensive study on the above subject. It is recommended that the report may be accepted for the evaluation.<br />Date: 7/08/2010                       Mr. Chandramani<br />Place:Ranchi                              ( Sr.Sales Officer, Retail Sales)<br />                                  Acknowledgement <br />I hereby thank my parents, my religion, & saints who have always inspired me to be honest and work in diligence. I would also like to thank my friends and batch mates who have always stood beside me during testing time and it is their belief in me that I’ve been successful in academics and now a part of University of Petroleum & Energy studies.<br />I extend my sincere thanks to Indian Oil Corporation Limited for giving me this wonderful opportunity to do summer internship. I acknowledge the give and take relation where I could hard on project assigned to me and contribute to organization with my efforts and get essential credits for my profile before I enter the corporate world.<br />I thank my project guide, Mr. Chandramani (Sales Officer, Retail Sales; Marketing Division, at Ranchi) at Indian Oil Corporation Limited for giving me the opportunity to work on a live project that hols strategic importance to the organization. I am really grateful to him for the trust he had in my abilities. I appreciate the fact that he connects very well with the people of my generation, understands them well and is like a mentor who teaches one to worship work and prioritize thing effectively. I sincerely thank you Sir for the wonderful learning experience provided by you.<br />I would also like to thank all the Indian Oil Retail Outlet Dealers and Owner at Ranchi, who cooperated and helped me to carry on my project work smoothly by providing all required assistance and help.<br />Date- 7/08/2010                                                                                          Name- Md Riz Zama<br />Place- Ranchi<br />                                                          Table of Contents <br />S.NO                                      TOPICPAGEi.Title Page1ii.Certificate2iii.Acknowledgement3iv.Letter of Transmittal 5v.Executive Summary6vi.Objective8vii.Introduction to Organization9viii.Background of Petroleum Retailing11ix.Non Fuel Revenue15x.Need For Non Fuel Revenue16xi.List of Non Fuel Revenue Services18xii.Research Methodology20xiii.Importance of Non Fuel Revenue21xiv.Strategic Comparison26xv.Customer Outlook Survey46xvi.Findings A & B : Customer Perception48xvii.Recommendations 66xviii.Conclusion67xix.Limitations68xx.Summary69xxi.Appendix-A70xxii.Appendix-B71xxiii.Bibliography81<br />Letter of Transmittal <br />To:     Mr. Chandramani<br />Date:  7th August 2010<br />From:  Md Riz Zama<br />Sub:  Summer Internship<br />I was assigned the following project during the course of my summer internship in the Marketing Divisional Office at Indian Oil Corporation Limited at Ranchi during the period of 7th June 2010 to 7th August 2010.<br />‘To Study the Customer Outlook towards Supporting (NON FUEL REVENUE) Services at Petrol Pumps In Ranchi”<br />The project was carried out with motive to find and analyse customer outlook towards the additional/supporting services to be provided at petrol pumps. A brief questionnaire was prepared for purpose of getting the right and quality feedback using ordinal and nominal scaling techniques. Depending upon the priorities given by the customer for different services appropriate conclusion has been drawn keeping the validity of the service and non fuel generating from that particular service.<br />All Indian Oil Retail Outlets operating in Ranchi were taken into considerations and a random sample of 352 customers has been taken. The collected data has been categorized in five different categories depending upon the age group of customers. Age has been taken as the dividing parameter because it would help to design and cater in a much better way to different kinds of customers.<br />List of recommendations has been given with the request to implement supporting services as fast as possible as customers are willing and eager to avail them. Thus I hope this report serves the purpose and helps in generating Non Fuel Revenue.<br />At the end I would like to thank Sir Chandramani once again for giving me this project that had dimensions of practical experience. I would also like to thank you for your guidance and support throughout the completion of project. <br />                                               Executive Summary<br />The report is the compilation of work done at Indian Oil Corporation Limited as an Intern Trainee wherein I undertook the project: ‘To Study the Customer Outlook towards Supporting (NON FUEL REVENUE) Services at Petrol Pumps In Ranchi”.<br />The study based project was completed using primary and secondary data. A complete analysis of finding is compiled and classified into appropriate sub-modules. Various interesting finding from the survey with a sample size of 352 are presented in this section.<br />A brief description of every service to be provided at retail outlet is given with its importance for the customers. Thereafter various ideas were generated after a deep analysis and certain valuable recommendations like SAGE are given.<br />                                             <br />                                                          PROJECT:<br />‘To Study the Customer Outlook towards Supporting (NON FUEL REVENUE) Services at Petrol Pumps In Ranchi”<br />Objective – <br />To Study the Customer Outlook towards Supporting (NON FUEL REVENUE) Services at Petrol Pumps In Ranchi.<br />Parameters of Study:<br />,[object Object]
Non Fuel Revenue- Introduction; Need; Benefits
Importance of Non Fuel Revenue
List of Non Fuel Revenue Services
Current Non Fuel Revenue Services By Indian Oil at Ranchi
Future Non Fuel Revenue Services By Indian Oil at Ranchi
Competitors Analysis
Customer Outlook- Analysis and Assessment
Introduction to Organization: INDIAN OIL CORPORATION LTD.An energy self-sufficient India can alter the economic, political and manufacturing landscape of the region. Its quest for energy will create new economic and strategic challenges, right from mobilising capital to engaging in subtle diplomacy. Indian Oil’s own performance in the financial year 2006-07 was a case of 'exceeding expectations' with both turnover and profits reaching new highs, product sales registering a quantum jump, and the refineries as well as pipelines network enhancing their capacities beyond 60 MMTPA and registering record throughputs. New projects worth Rs. 10,000 crore were put on stream during the year. Among new businesses, the petrochemicals and natural gas verticals and participating interests in a clutch of oil & gas assets in India and abroad has ensured expansion of the upstream portfolio. Indian Oil has ambitious investment plans of Rs. 43,250 crore in the next five years. By 2011-12, the Indian Oil Group, with 80 MMTPA refining capacity in its fold, would be playing a key role in realising India’s bid to emerge as an export-oriented hub for finished products. The pipelines network, which provides strategic logistics advantage to the marketing operations, is also set to cross the 10,000 km mark in the next two years.In marketing, Indian Oil is set to leverage the combined strength of over 32,000 marketing touch points, with focus on hitherto untapped rural markets, non-fuel revenues and pure retailing business. Indian Oil aspires to be Asia’s leading commercial R&D organisation in the downstream hydrocarbon sector by building on its capabilities in developing innovative technologies, products and processes, and nodal research in alternative fuels. Beyond core businesses, Indian Oil is working to emerge as a major player in the petrochemicals business by the year 2011-12, with two petrochemical hubs shaping up at Panipat and Paradip. In natural gas business, it is attempting quantum growth in LNG imports, infrastructure and marketing, besides city gas distribution. In the high-risk business of oil exploration & production, Indian Oil’s consortium approach with established players is paying off well in terms of exceptional Government support and successful forays in India and abroad. Its current interests are focussed on oil equity and sourcing of natural gas, predominantly from African and CIS countries, by leveraging its downstream capabilities to form joint venture partnerships with reputed enterprises overseas.With India’s energy needs projected to grow by 40% in the next five years, the future is indeed full of promise for Indian Oil; a future the 31,700 strong Indian Oil team shall build as they fuel the dreams of over a billion of their countrymen.<br />Indian Oil has one of the largest petroleum marketing and distribution networks in Asia, with over 35,000 marketing touch points. Its ubiquitous petrol/diesel stations are located across different terrains and regions of the Indian sub-continent. From the icy heights of the Himalayas to the sun-soaked shores of Kerala, from Kutch on India's western tip to Kohima in the verdant North East, Indian Oil is truly 'in every heart, in every part'. Indian Oil's vast marketing infrastructure of petrol/diesel stations, Indane (LPG) distributorships, SERVO lubricants & greases outlets and large volume consumer pumps are backed by bulk storage terminals and installations, inland depots, aviation fuel stations, LPG bottling plants and lube blending plants amongst others. The countrywide marketing operations are coordinated by 16 State Offices and over 100 decentralised administrative offices.Several landmark surveys continue to rate Indian Oil as the dominant energy brand in the country and an enduring symbol for high quality petroleum products and services. The heritage and iconic association that the brand invokes has been built over four decades of commitment to uninterrupted supply line of petroleum products to every part of the country, and unique products that cater not only to the functional requirements but also the aspirational needs of millions of customers. Indian Oil has been adjudged India's No. 1 brand by UK-based Brand Finance, an independent consultancy that deals with valuation of brands. It was also listed as India's 'Most Trusted Brand' in the 'Gasoline' category in a Readers' Digest - AC Nielsen survey. In addition, Indian Oil topped The Hindu Business line’s quot;
India's Most Valuable Brandsquot;
 list. However, the value of the Indian Oil brand is not just limited to its commercial role as an energy provider but straddles the entire value chain of gamut of exploration & production, refining, transportation & marketing, petrochemicals & natural gas and downstream marketing operations abroad. Indian Oil is a national brand owned by over a billion Indians and that is a priceless value.<br />,[object Object]
The downstream sector is regulated mainly by the Indian Petroleum Act and a number of control orders passed by the government under the Essential Commodities Act. The OCC, under the administrative control of the MoPNG, currently performs the function of planner, coordinator, adviser, and regulator in the downstream petroleum sector. During and after the dismantling of the APM, there will be a need for a statutory regulator to undertake these functions for both the public and private sector oil companies till the market becomes fully competitive. The government has assigned to TERI the task of drafting a legal framework for the regulation of the downstream petroleum sector after decontrol by the government. A draft prepared by TERI is now under consideration at the MoPNG.
The transition to a fully deregulated and competitive oil industry cannot be made in a day. Though a short transition period would help in mobilizing investments quickly, the sharp rise in prices will reduce the political acceptability of the reforms. The R Group recommended a transition period. Of six years. The government, however, opted for a four-year transition period (1998–2002).
Another issue is the sequencing of reforms. The Government of India has thrown open refining while keeping substantial control over marketing. Only those who have invested 20 billion rupees in refineries or are producing at least 3 MT of crude oil annually are eligible to have marketing outlets for controlled products (motor spirit and high speed diesel). A greater deregulation in the marketing sector is essential for a fully competitive market to operate. Besides, a simultaneous opening up of the two sectors could stimulate investment in refineries.
While designing a regulatory system consistent with decontrol, the country’s level of poverty, its large geographical expanse, and ecological diversity have to be considered. A reform that is seen to be pro-rich or anti-poor will not be acceptable. The economically deprived sections and people living in far-flung regions may continue to need subsidies on essential products like kerosene and diesel. If cross-subsidies are to be removed, alternatives must be found.
The Government, with its aim of insulating the Indian consumer from volatility of crude oil prices in the international markets, has been subsidizing end-user prices, as mentioned before. Very often, this has translated into a large subsidy being given to the domestic consumer, with the burden of this subsidy being shared between the oil marketing firms, the Government (which has been issuing oil bonds to the PSU marketers to compensate them for their under-recoveries) and the upstream PSU firms of ONGC and OIL. For example, in May 2008, the oil marketing companies were forced to take daily losses of around USD 120 million on the retail sales of diesel, petrol, LPG and kerosene.
Due to indirect control of the Government over end-user fuel prices, the fuel retail market in India continues to be dominated by PSU firms with Indian Oil boasting of an approximately 50 percent market share, while the other public sector fuel marketers HPCL and BPCL have  an approximately 25 percent market share each (refer to the chart). Although the private sector firms of RIL, Essar and Shell have entered the market, they could not sustain their operations. In fact, RIL's nearly 1,450 fuel pumps have been lying idle for many months.
A removal of controls in today’s regulatory environment would imply free sourcing of crude oil, independent determination of the crude slate and product pattern, removal of marketing and distribution controls, dismantling of sales plan entitlements, decontrolling of refining and marketing margins, and resellers’ commissions. In such a scenario, the downstream hydrocarbon sector would be largely shaped by market forces. The role of a regulatory body would be quite limited and restricted to enabling provisions allowing the regulator to-
Monitor the movement of prices and prevent the formation of cartels.
Facilitate the supply of petroleum products to all areas of the country, including remote and disadvantaged areas.
Ensure compliance with strategic obligations and safety, health, and environmental concerns.
Provide a quasi-judicial dispute settlement mechanism.
Facilitate the operationalization of government policy, as required.
Intervene in times of national and international emergencies.
Be fully informed about the state of the oil industry through the collection of complete data.Globally first oil wells were drilled by Col Drake in Pennsylvania in 1859 & in India 1st oil refinery was built in Digboi in 1901. So oil industry is globally 150 yrs old & in India 100 yrs old. <br />Brief retail history in India is as under –<br />,[object Object]
1890 first oil was struck in India in Digboi. 1901 India’s first refinery was built at Digboi.<br />1950-55 refineries were set up by Burma Shell, ESSO & Caltex.<br />1956. Government of India passed the Industrial policy resolution placing Petroleum sector under public sector.<br />1958, 1st Public sector co was registered as Indian Refineries Ltd, on downstream side & ONGC was established thru’ act of Parliament.   <br />1959, 1st Marketing co was registered as Indian Oil Co Ltd.<br />1964, IRL & IOC were merged as Indian Oil Corporation.<br />1970, all foreign co’s were Nationalized & entire Petroleum sector came under Government control.<br />,[object Object]
During past 6 decades size of industry has grown from 1950-51 ,at 3.5 million tons to 2008-09 to 134 million tonnes ,an increase of 40 times on account of enormous growth in transport, industrial power & agriculture sectors.
1992-93, Government initiated imp phase of deregulation & de liberalization, with removal of controls on lubricants & import of bulk Gases.
2001-02, process of liberalization to be completed by allowing foreign & Indian co’s to invest in India in upstream & downstream sectors; they were allowed to enter the Marketing operations, provided they have an investment of minimum Rs 2000 crores in infrastructure.
1.4. 2002 APM (Administrative Price Mechanism) was notionally dismantled to allow free hand to oil co’s to import & market petroleum products in the country.
Violent fluctuations in crude prices in international market & to maintain socio economic stability, Government during  last 7 years kept control thru’ public sector co’s to regulate the prices of HSD, MS, Kerosene & LPG & allowed to alter prices of lubricants, ATF & heavy oils to overcome the loss of subsidies.Non Fuel Revenue <br />Introduction-<br />The Indian fuel market does hold some promise, more so if market forces are allowed free reign. The number of vehicles on Indian roads is expected to increase substantially, in line with projections of economic growth.<br />Meanwhile, falling crude prices have re-awakened the interest of private sector players. Recent news items indicate that RIL is looking for a strategic partner for its fuel retailing businesses.<br />Another opportunity lies in exploiting the potential of non-fuel retail at the existing fuel outlets, particularly given the prime location of fuel outlets at metros. Convenience shopping and the establishment of ATMs provide an opportunity. Fuel retailing outlets with such additional facilities are also likely to invest in modernization and branding initiatives, with 'XTRA CARE' of IOCL being one such initiative.<br />Non Fuel Retailing is basically the retailing of value added services and products which would cater to the customer needs and want while his/her stay at petrol pump and help company to earn extra revenue apart from selling fuel.<br />India as a Non Fuel Retailing Destination-<br />,[object Object]
 4th Largest economy after USA, China & Japan.
 2nd Fastest growing economy in the world.
 Would be 3rd largest economy in next 15 years.
 5th among the 30 emerging markets for retailers.
 300+ million middle class - the Real consumers.
 Increased disposable Income.
 Among top 10 FDI destinations.
 Massive investment planned in infrastructure development in next 5 year.
 Exponential growth is taking place in Retailing in India.
 Organized Retail Only 3% but growing at 30%.
Need For Non Fuel Retailing/Revenue Services
Petroleum prices have tremendous effect on socio economic & political environment in the country. Government  have been going slow in allowing free market mechanism in pricing the vital products like MS, HSD, Kerosene & LPG, which nearly constitutes 70% of the market value & have tremendous effect on inflation & cost of living. The control is being exercised by setting up a planning & analysis wing under the control of Ministry of Petroleum. However other products like lubricants, ATF & heavy oils bulk import &sale of Gases made free.At present, the total petroleum subsidy bill is close to USD 20 billion   comprising USD 11.8 billion for diesel, USD 1.3 billion for petrol, USD 3.2 billion for LPG and USD 5 billion of kerosene. Since the Government does not compensate the private marketing firms for their losses, their operations turn unviable at the time of high global crude oil prices.
In order to make up their losses oil co’s have been steeply increasing prices of above products causing lot of turbulence in industry specially impact of ATF prices on aviation sector, which this yr has recorded a loss of over 10,000 crores As a nation, we have to find a opt immolation to our Energy Needs .Overall this makes a challenging case study for management students to make a thorough analysis of available options & suggest a workable plan for the nation.
Recent trends in retailing business in India & abroad is to identify customer needs of consumer products based on location factors & provide a basket of fuel & non fuel products & services so as to increase volume of business / foot falls in business premises & thus improve overall profitability of operations by providing a basket of services.
Earlier PSU co’s were selling products thru’ RO as commodities without emphasizing on quality aspects & customer satisfaction. Foreign as well as Indian co’s have quickly responded to the market needs & redesigned their products into special brands to suit high tech auto segment with emphasis on better mileage thus offering value for money, in turn they have improved their margins by 5-6% as mark of innovative marketing by effective non fuel retailing.
Retail Outlet  in Metro & major Urban towns are being upgraded to meet wider customer needs to encourage more frequent visits thus increase foot fall which is the basic need of any activity following facilities-ATM<br />Convenience store with chemist facilities. <br />Fast food, Indian food, tea, coffee & soft drink vending machines.<br />Loyalty programs & bonus schemes for long time regular customers. <br />Fleet owner’s schemes.<br />,[object Object]
The companies operating in the downstream sector in order to increase their revenue generation from a particular retail outlet and to compensate the loss caused by huge subsidies Non Fuel Retailing services are been given importance. This would make the customer refueling stay more pleasant and worthwhile adding non fuel revenue to the company.
Due to low margins of profits major problem industry faces, dealers playing with Quality & Quantity thru' adulteration & short supply to improve the margins the quantum is estimated around 4-5% on a modest scale, and thus here Non Fuel Retailing Services plays an important role.List of Non Fuel Retailing/Revenue Services<br />ATM<br />An automated teller machine (ATM), also known as automatic banking machine (ABM), Cash Machine, or Cash point, is a computerised telecommunications device that provides the clients of a financial institution with access to financial transactions in a public space without the need for a cashier, human clerk or bank teller. On most modern ATMs, the customer is identified by inserting a plastic ATM card with a magnetic stripe or a plastic smart card with a chip, which contains a unique card number and some security information such as an expiration date or CVVC (CVV). Authentication is provided by the customer entering a personal identification number (PIN).<br />ATM service as a non fuel revenue service can be beneficial as people in today busy world don’t have time to wait for long hours in queue. Thus by providing ATM service company can get handsome revenue in form of rents. <br />Medical Store<br />The concept to provide medical store facility at retail outlet could turn to be a profitable one because of the recent trend of health awareness among the young as well as old generation. People are been enforced and driven with the concept of routine medical check up which is conducted on a regular cycle of every month and is forwarded by purchase of required medicines. Thus the medical store would cater to the need and would help the customer to avail its service while their stay at the retail outlet. People have become cautious and have developed the habit of taking precautions and thus many medicines and related products are purchased before hand which adds to the sale of medical store.<br />A Medical Store to cater all different kinds of medicinal requirement could help a lot and add a great deal in the non fuel revenue of the company. On an average out of hundred customers visiting thirty are likely to purchase and this could be highly profitable. <br />Convenient Store <br />It is a very broad concept and can be used in many ways to serve the customer needs and want. Types of convenience stores found in India are:<br />Specialty Stores                                                                                                                       <br />Supermarkets                                                                                                                        <br />Franchisee Outlets                                                                                                     <br />Hypermarkets               <br />  The key advantages of convenience stores in India are:<br />India ranks 5th on global retail development index.<br />India is the 2nd fastest growing economy of the world.<br />India is poised to become the 3rd largest economy in terms of GDP in next few years.<br />India ranks high among the top 10 FDI destinations of the world.<br />India is the fastest growing tourist market in Asia.<br />World Bank states that India will become the world's 2nd largest economy after China by 2050.<br />India has a stable and investor-friendly central government at the helm of affairs.<br />It has introduced Value Added Tax (VAT) and tax reforms.<br />It has a high degree of professionalism and corporate ethics.<br />It has excellent investment opportunities in the retail sector and allied markets.<br />India is to invest US$ 130 billion for the development of infrastructure by 2010.<br />It has bullish stock markets.<br />Hordes of foreign investors are thronging in to invest in Indian retail markets.<br />Highly educated, English speaking, young workforce.<br />Vibrant and multi-cultured cities.<br />Huge opportunity exists in semi-rural and rural areas.<br />Till date, India is the 2nd largest employer for the huge semi-skilled Indian population.<br />Offers highest shop density in the whole world - has almost 1, 20,000 shops across the length and breadth of the country.<br />In a nascent stage of development as an organized industry.<br />,[object Object]
                                                                               <br />                                                                                                                   <br /> <br />                                                                      <br />                                                                                                                                                                                     <br />                                                                                                                             <br />     <br />REFRESHMENTS<br />,[object Object]
Fast Food Centres
Branded Outlets(Pizza Hut; Mc Donald’s)The concept of Refreshment can be classified under above mentioned three broad concepts and different services can be offered in different retail outlets depending upon the location viability. With the entry of all branded fast food centres in India, people have changed their food habit. The traditional concept has been changed and the trend of consuming readymade food products has been adopted. <br />These outlets can donate a large amount of revenue in form of rents and could help company get huge non fuel revenue. As India is one of youngest populated country where average age is 20 – 30, hence it can work a lot to attract those customers. People have become work oriented, prefer saving time by getting healthy readymade food. Families have also adopted the habit of having a weekend outing for children, who prefer these branded outlets because of attractive offers and gifts for children. So overall opening of refreshments centres can be highly profitable in terms of non fuel revenue generation.<br />                                                                                                                                                                                                                                                                                                                                                    <br />VEHICLE SERVICES<br />The Indian automobile industry has received positive response in the current market scenario. The car sales in the domestic market have grown 32.28% touching 145,905 units in the month of January 2010 as against 110,300 units in the corresponding month last year. The competition is getting tougher for all the small and big players in market. Thus with the increasing number of automobiles on Indian road signifies requirement greater number of service stations for their routine servicing. Usually Automobile companies open their service station in the outskirts of city and town. Going for servicing to an authorized service station kills lots of time and money. If retail outlets can offer the vehicle servicing facilities in the retail outlets it would be highly encouraged by consumers as it would save a lot of time and energy for them. <br />The Vehicle Services would be of following kinds-<br />,[object Object]
Automobile Accessories: It can cater to a wide variety requirement of all kinds both two and four wheeler consumers. Accessories for which customers have to run everywhere could be provided under one roof ranging from spare parts, helmets, seat belts, lights etc.
Vehicle Check up Camps; Battery; Lubricants: These are the facilities which are provided for better performance of an automobile and it has been in practice by Indian Oil under XTRA CARE. The response has been highly appreciable and if their service offering line can be made more broad by introducing car wash and battery check up it would be highly profitable.Vehicle Services are such non fuel revenue generation services which are likely to make high profit because the Automobile Sector is on a continuous rise, which signifies the need of more and more vehicle services.<br />EXTENDED SERVICES<br />These are the services which are planned with the motive to cater customers other social requirements and needs. These are low revenue generating but have a high viability in terms of usage rate. <br />These services are:<br />,[object Object]
Ticketing Services
PCO/FAX/XEROX
BOOKS/MAGZINE/NEWS Paper stalls
Advt. At Petrol Pump
Fore Court Promotion of Various Products
Entertainment Zone  These are some of the extended services to name. Customers who have to      waste many of their time in availing these services could avail it during their stay at the retail outlet and fulfil their requirement.<br />                                                                          <br />                              <br />Research Methodology  <br />,[object Object]
Strategic Comparison of Indian Oil with its Competitors
Customer Outlook Survey
Findings: Customer Perception
Importance & Benefits of Each Non Fuel Revenue Service
Non Fuel Revenue Services Classified on basis of location:A Hypothetical Case for offering Non Fuel Services at an Outlet-<br />Following are the Financials considered for the hypothetical case:<br />,[object Object]
Fuel operations: 0.65 acres (includes space for dispensers, tanks, office buildings, electricity and generator rooms, etc)
Retail operations: 0.35 acres (vacant space or unutilized space which can be used for non fuel operations such as ATM , convenience store or restaurants, etc)
Assumed FSI for retail development: 1.0
(FSI stands for Floor Space Index- ratio of total floor space to total plot size. FSI indicates that total plot area is being used for retail operations)
Built-up area for retail development: 15, 246 sq. ft.
 Land cost: NIL (included in cost of fuel outlet i.e. while setting up fuel operations)
 Construction cost: INR 1,200 per sq. ft.
 Total Construction Cost: INR 18,295,200Achievable Pricing By Means Of Non Fuel Offerings<br /> Guidelines for Establishment of better Non Fuel Retailing:<br />International level technologies have been brought in service to achieve this objective ER,-for foolproof Supply chain.To ensure reliable Q&Q, important technology inputs  has been built into the retailing system to make customer service a world class experience. <br />Traditional dispensing systems  replaced with automated & visible recording system.  <br />Automated premix pumps for mixing lube oil & petrol for 2 wheelers.<br />New generation electronic pumps have digital display & pre set arrangement for quantity, rate, value making transactions speedy & reliable multiple hoses with automatic cut off nozzles make tank filling fast & safe.                                                                                           <br />Air gauges with pressure pre set & auto cut off  make tyre inflation convenient & accurate. <br />,[object Object]
Dispensing units are equipped with card readers to handle payments by cash card, smart card, debit card & credit card, to create better customer convenience.Technology has made it possible to provide value added service like ATM, auto car washing, automatic car gauging & fuel replenishment thru’ online replenishment system .<br />From economics point of view,experience of western countries indicate that contibution of margin on account of non fuel,vailue added services is to the tune of 40%to45%of gross earing, substantially improves its viability as well as customer service.<br />Thus we have moved into a new era of customer delight thru’ reliability convenience & speed of service thru’ modern technology at par with international standards.<br />,[object Object]
The companies are still struggling to grasp the changing dynamics of the retail sector.
The industry is still being designed. Mergers, entry of private players, issues on branding and consolidation in the upstream and downstream sectors have pushed non-fuel to the back-seat.
The key to success lies in identifying and meeting customer behaviour patterns and changing demographics.
New and emerging retail formats will drive the diversity of the fast changing retail backdrop.
Retailers need to invest heavily in capturing specific market.
It is important for retailers to create a unique position in the marketplace based on value, relationships or experience.                                                     <br />                                                                                                                                                      <br />                                                                                                                                                           <br />,[object Object]
           In Terms of NON FUEL RETAILINGIndia Oil Corporation Limited                                       <br />,[object Object]
Innovative, plans to start fuel services at shopping malls.
Convenience stores (they sell a wide range of packaged foods, hot and cold drinks)  the company has tied up with major retailers and set up convenience stores, super markets and other formats.
In urban areas, the stores are in two sizes, 300 to 700 sq feet and 700 to 1,000 sq feet. They are between 1,000 sq feet and 1,500 sq feet on highways.

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Non Fuel Revenue

  • 1.
  • 2. Non Fuel Revenue- Introduction; Need; Benefits
  • 3. Importance of Non Fuel Revenue
  • 4. List of Non Fuel Revenue Services
  • 5. Current Non Fuel Revenue Services By Indian Oil at Ranchi
  • 6. Future Non Fuel Revenue Services By Indian Oil at Ranchi
  • 9.
  • 10. The downstream sector is regulated mainly by the Indian Petroleum Act and a number of control orders passed by the government under the Essential Commodities Act. The OCC, under the administrative control of the MoPNG, currently performs the function of planner, coordinator, adviser, and regulator in the downstream petroleum sector. During and after the dismantling of the APM, there will be a need for a statutory regulator to undertake these functions for both the public and private sector oil companies till the market becomes fully competitive. The government has assigned to TERI the task of drafting a legal framework for the regulation of the downstream petroleum sector after decontrol by the government. A draft prepared by TERI is now under consideration at the MoPNG.
  • 11. The transition to a fully deregulated and competitive oil industry cannot be made in a day. Though a short transition period would help in mobilizing investments quickly, the sharp rise in prices will reduce the political acceptability of the reforms. The R Group recommended a transition period. Of six years. The government, however, opted for a four-year transition period (1998–2002).
  • 12. Another issue is the sequencing of reforms. The Government of India has thrown open refining while keeping substantial control over marketing. Only those who have invested 20 billion rupees in refineries or are producing at least 3 MT of crude oil annually are eligible to have marketing outlets for controlled products (motor spirit and high speed diesel). A greater deregulation in the marketing sector is essential for a fully competitive market to operate. Besides, a simultaneous opening up of the two sectors could stimulate investment in refineries.
  • 13. While designing a regulatory system consistent with decontrol, the country’s level of poverty, its large geographical expanse, and ecological diversity have to be considered. A reform that is seen to be pro-rich or anti-poor will not be acceptable. The economically deprived sections and people living in far-flung regions may continue to need subsidies on essential products like kerosene and diesel. If cross-subsidies are to be removed, alternatives must be found.
  • 14. The Government, with its aim of insulating the Indian consumer from volatility of crude oil prices in the international markets, has been subsidizing end-user prices, as mentioned before. Very often, this has translated into a large subsidy being given to the domestic consumer, with the burden of this subsidy being shared between the oil marketing firms, the Government (which has been issuing oil bonds to the PSU marketers to compensate them for their under-recoveries) and the upstream PSU firms of ONGC and OIL. For example, in May 2008, the oil marketing companies were forced to take daily losses of around USD 120 million on the retail sales of diesel, petrol, LPG and kerosene.
  • 15. Due to indirect control of the Government over end-user fuel prices, the fuel retail market in India continues to be dominated by PSU firms with Indian Oil boasting of an approximately 50 percent market share, while the other public sector fuel marketers HPCL and BPCL have an approximately 25 percent market share each (refer to the chart). Although the private sector firms of RIL, Essar and Shell have entered the market, they could not sustain their operations. In fact, RIL's nearly 1,450 fuel pumps have been lying idle for many months.
  • 16. A removal of controls in today’s regulatory environment would imply free sourcing of crude oil, independent determination of the crude slate and product pattern, removal of marketing and distribution controls, dismantling of sales plan entitlements, decontrolling of refining and marketing margins, and resellers’ commissions. In such a scenario, the downstream hydrocarbon sector would be largely shaped by market forces. The role of a regulatory body would be quite limited and restricted to enabling provisions allowing the regulator to-
  • 17. Monitor the movement of prices and prevent the formation of cartels.
  • 18. Facilitate the supply of petroleum products to all areas of the country, including remote and disadvantaged areas.
  • 19. Ensure compliance with strategic obligations and safety, health, and environmental concerns.
  • 20. Provide a quasi-judicial dispute settlement mechanism.
  • 21. Facilitate the operationalization of government policy, as required.
  • 22. Intervene in times of national and international emergencies.
  • 23.
  • 24.
  • 25. During past 6 decades size of industry has grown from 1950-51 ,at 3.5 million tons to 2008-09 to 134 million tonnes ,an increase of 40 times on account of enormous growth in transport, industrial power & agriculture sectors.
  • 26. 1992-93, Government initiated imp phase of deregulation & de liberalization, with removal of controls on lubricants & import of bulk Gases.
  • 27. 2001-02, process of liberalization to be completed by allowing foreign & Indian co’s to invest in India in upstream & downstream sectors; they were allowed to enter the Marketing operations, provided they have an investment of minimum Rs 2000 crores in infrastructure.
  • 28. 1.4. 2002 APM (Administrative Price Mechanism) was notionally dismantled to allow free hand to oil co’s to import & market petroleum products in the country.
  • 29.
  • 30. 4th Largest economy after USA, China & Japan.
  • 31. 2nd Fastest growing economy in the world.
  • 32. Would be 3rd largest economy in next 15 years.
  • 33. 5th among the 30 emerging markets for retailers.
  • 34. 300+ million middle class - the Real consumers.
  • 36. Among top 10 FDI destinations.
  • 37. Massive investment planned in infrastructure development in next 5 year.
  • 38. Exponential growth is taking place in Retailing in India.
  • 39. Organized Retail Only 3% but growing at 30%.
  • 40.
  • 41. Need For Non Fuel Retailing/Revenue Services
  • 42. Petroleum prices have tremendous effect on socio economic & political environment in the country. Government have been going slow in allowing free market mechanism in pricing the vital products like MS, HSD, Kerosene & LPG, which nearly constitutes 70% of the market value & have tremendous effect on inflation & cost of living. The control is being exercised by setting up a planning & analysis wing under the control of Ministry of Petroleum. However other products like lubricants, ATF & heavy oils bulk import &sale of Gases made free.At present, the total petroleum subsidy bill is close to USD 20 billion comprising USD 11.8 billion for diesel, USD 1.3 billion for petrol, USD 3.2 billion for LPG and USD 5 billion of kerosene. Since the Government does not compensate the private marketing firms for their losses, their operations turn unviable at the time of high global crude oil prices.
  • 43. In order to make up their losses oil co’s have been steeply increasing prices of above products causing lot of turbulence in industry specially impact of ATF prices on aviation sector, which this yr has recorded a loss of over 10,000 crores As a nation, we have to find a opt immolation to our Energy Needs .Overall this makes a challenging case study for management students to make a thorough analysis of available options & suggest a workable plan for the nation.
  • 44. Recent trends in retailing business in India & abroad is to identify customer needs of consumer products based on location factors & provide a basket of fuel & non fuel products & services so as to increase volume of business / foot falls in business premises & thus improve overall profitability of operations by providing a basket of services.
  • 45. Earlier PSU co’s were selling products thru’ RO as commodities without emphasizing on quality aspects & customer satisfaction. Foreign as well as Indian co’s have quickly responded to the market needs & redesigned their products into special brands to suit high tech auto segment with emphasis on better mileage thus offering value for money, in turn they have improved their margins by 5-6% as mark of innovative marketing by effective non fuel retailing.
  • 46.
  • 47. The companies operating in the downstream sector in order to increase their revenue generation from a particular retail outlet and to compensate the loss caused by huge subsidies Non Fuel Retailing services are been given importance. This would make the customer refueling stay more pleasant and worthwhile adding non fuel revenue to the company.
  • 48.
  • 49.
  • 51.
  • 52. Automobile Accessories: It can cater to a wide variety requirement of all kinds both two and four wheeler consumers. Accessories for which customers have to run everywhere could be provided under one roof ranging from spare parts, helmets, seat belts, lights etc.
  • 53.
  • 58. Fore Court Promotion of Various Products
  • 59.
  • 60. Strategic Comparison of Indian Oil with its Competitors
  • 63. Importance & Benefits of Each Non Fuel Revenue Service
  • 64.
  • 65. Fuel operations: 0.65 acres (includes space for dispensers, tanks, office buildings, electricity and generator rooms, etc)
  • 66. Retail operations: 0.35 acres (vacant space or unutilized space which can be used for non fuel operations such as ATM , convenience store or restaurants, etc)
  • 67. Assumed FSI for retail development: 1.0
  • 68. (FSI stands for Floor Space Index- ratio of total floor space to total plot size. FSI indicates that total plot area is being used for retail operations)
  • 69. Built-up area for retail development: 15, 246 sq. ft.
  • 70. Land cost: NIL (included in cost of fuel outlet i.e. while setting up fuel operations)
  • 71. Construction cost: INR 1,200 per sq. ft.
  • 72.
  • 73.
  • 74. The companies are still struggling to grasp the changing dynamics of the retail sector.
  • 75. The industry is still being designed. Mergers, entry of private players, issues on branding and consolidation in the upstream and downstream sectors have pushed non-fuel to the back-seat.
  • 76. The key to success lies in identifying and meeting customer behaviour patterns and changing demographics.
  • 77. New and emerging retail formats will drive the diversity of the fast changing retail backdrop.
  • 78. Retailers need to invest heavily in capturing specific market.
  • 79.
  • 80.
  • 81. Innovative, plans to start fuel services at shopping malls.
  • 82. Convenience stores (they sell a wide range of packaged foods, hot and cold drinks) the company has tied up with major retailers and set up convenience stores, super markets and other formats.
  • 83. In urban areas, the stores are in two sizes, 300 to 700 sq feet and 700 to 1,000 sq feet. They are between 1,000 sq feet and 1,500 sq feet on highways.
  • 84. IOCL has 108 Kisan Seva Kendras (KSKs), its low-cost petrol pumps that sell agriculture inputs, equipment and daily essentials in rural areas.
  • 85. Indian Oil Corporation (Indian Oil) is launching unique convenience stores under the new brand name 'Top-Up-Twenty Four Seven' at its various petrol pumps to augment customer service and expand its non-fuel retail business in a big way. Targeting the urban consumers in the first phase, Indian Oil's first 'Top-Up Twenty Four Seven' C-Store was jointly launched by the Chairman, Sarthak Behuria, and K. K. Modi, President, Godfrey Phillips India at the 19th Hole Service Station adjacent to the Delhi Golf Club in the capital.
  • 86.
  • 87. In & Out stores have a wide range of services which include ATMs of leading Banks, Music stores from Planet M and Music World, Beverages from Pepsi, Coffee and snacks from Café Coffee Day and Coffee Day Xpress, and a variety of impulse buys including confectionery, snacks, convenience foods, toiletries and select range of branded groceries and other FMCG products through exclusive tie-ups with such FMCG majors like ITC, Cadbury and Frito-Lay.
  • 88. The In &Out stores offer Western Union Money Transfer facilities in Mumbai. They also offer prepaid mobile recharge cards and e charging of mobiles. It also has music stores by the name of
  • 89. Satellites and Unplugged from Planet M and Music World respectively at select outlets for music cassettes and CDs.
  • 90. Air Deccan, India’s largest and fastest growing airline and BPCL, India’s second largest oil marketing company have joined hands for sale of Air Deccan tickets at BPCL In & Out convenience stores across India.
  • 91. State-owned Bharat Petroleum Corporation (BPCL's) Allied Retail Business (ARB) grew by 52.1 per cent, making it the largest non-fuel revenue generator in the oil industry, a top company official said. 
  • 92. BPCL also ranks amongst the leading retail networks in the country, offering a basket of services ranging from quick service restaurants to financial and travel-related services during FY 2007, he said. 
  • 93. The network of 383 In & Out stores saw the turnover grow by 28 per cent to Rs 77.4 crore. During FY 2007, 8 In & Out convenience stores made up the "millionaire club" by clocking average sales of Rs 1 million per month. 
  • 94. The food & beverages brands, while bringing in their customer base to the retail outlets, also increase the overall level of customer engagement at the sites. The 40 ARB restaurants achieved a turnover of Rs 18 crore FY 2007, a growth of 49 per cent over the last year, he said. 
  • 95. During FY 2007, BPCL achieved a major breakthrough by getting into agreements with both joint venture partners of McDonalds operating in India - Hardcastle Restaurants and Connaught Plaza Restaurants. 
  • 96. Subsequent to the pact, three retail outlet sites were signed up in Bangalore for setting up McDonalds restaurants. 
  • 97. In FY2007, BPCL also signed pacts with Nirulas Corner House for setting up Nirulas restaurants in the network. 
  • 98. These QSR alliances, while enhancing the image of the retail network, will serve as a differentiating customer value proposition, Sinha added.
  • 99. With a view to increasing its non-fuel revenue-stream, BPCL has tied up with Cinemata, a film distribution unit of Sony Entertainment Television, to set up cinema halls at its 300 fuel outlets on highways across the country by FY 2010.
  • 100. "Cinema halls will help us boost our non-fuel revenues. We are undertaking two pilot projects at our retail outlets in Gujarat. If successful, the same will be replicated in other outlets across the country," BPCL Chairman Ashok Sinha said here. 
  • 101. The movies will be shown to neighbouring villages and highway travellers via satellites. The company has transponders and ready infrastructure in place, Sinha said. 
  • 102. Each cinema hall will have seating capacity of 150 to 200 and the films in digital format would be beamed at the fuel stations. 
  • 103. "Bharat Petroleum is consciously working towards providing added value to its customers, both in fuel and non-fuel areas," Sinha said. 
  • 104. During FY 2007, 480 retail outlets were commissioned by BPCL out of a total of 2,500 retail outlets commissioned by the public sector marketing companies. 
  • 105. The initial feedback to "Ghar Dhaba" has been encouraging, with both the trucker and motorist dining areas witnessing good footfalls. "Ghar Dhaba" represents BPCL's foray into food. 
  • 106.
  • 108.
  • 109.
  • 117. Branded Outlets(Pizza Hut; Mc Donald ‘s)
  • 124. c) Vehicle Check up; Lubricants; Battery, etc
  • 126.
  • 127. 6) EXTENDED SERVICES
  • 132.
  • 133. Under Refreshment more importance is given to fast food centres where branded outlet and cold drink/tea wending is give preference. A proper designed fast food outlet which can provide healthy and fast food to customers can be highly profitable.
  • 134. In Vehicle Services, Automobile Accessories are given more preference over pollution and vehicle check up camps.
  • 135. Extended Services has book/magazine/news paper segmented more importance where ticketing and courier services also hold a good profitable business. Outlets providing Career Related Books/ Application Form for which customers have to run to various banks can be provided to cater the huge segment of young customers.
  • 136. The Non Fuel Retailing Services holds a good and profitable potential in Ranchi. A proper planned format should be decided for efficient implementation of Non Fuel Retailing Services.
  • 137. The viability of each Non Fuel Retailing service should be scanned depending on location potential of the retail outlet.
  • 138. Non Fuel Retailing as a market potential is ready to be launched in Ranchi, depending upon population, spending behaviour and changing life style.
  • 139. CONCLUSION
  • 140. The concept of Non Fuel Revenue has been an innovative revenue generation step taken by petroleum retailing companies operating in India.
  • 141. The concept of Non Fuel Retailing would turn out to be profitable and high revenue generating one if operated skilfully in Ranchi.
  • 142.
  • 143.
  • 144. LIMITATIONS
  • 145. Single Researcher, made it a little hectic and time taking job.
  • 146. The Research has to be restricted for a limited period of given number of days.
  • 147. The actual information regarding the financial data and ventures of competitors firm was not achievable because of confidentiality purpose.
  • 148. Several factors like customer motive while giving the feedback and external environment factors which governed the feedback process also acted as limitations for the project.
  • 149. SUMMARY
  • 150. The Project was designed to find out customer perception towards Non Fuel Retailing services. The project mainly aimed to gather effective feedback for implementation of Non Fuel Retailing services.
  • 151. A survey of random sampling from all twelve retail outlets of Indian Oil was done. The survey was based on questionnaire and face to face interview from customers to get their feedback regarding Non Fuel Retailing.
  • 152. Certain constrain and guidelines by IOCL were followed while conducting the survey.
  • 153. Motive of the survey was also to make customer understand and realize the importance and benefits which they can derive by Non Fuel Retailing and explanation of each service with regards to its viability was to be explained to the customer before taking feedback.
  • 154. The overall summation from the project has a positive output. Customers actively participated in surveying and suggesting their point of view. The potential of Non Fuel Retailing in Ranchi is a profitable one.
  • 155. A well managed and designed Non Fuel Retailing with help of a consultancy can turn out to be a high revenue generating and increase a outlet profit margin by 50 %.
  • 156. APPENDIX –A
  • 157. Abbreviations
  • 158. IOCL- INDIAN OIL CORPORATION LIMITED
  • 160. MMTPA- MILLION METRIC TONNES PER ANNUM
  • 163. MoPNG- MINISTRY OF PETROLEUM AND NATURAL GAS
  • 164. ONGC- OIL & NATURAL GAS CORPORATION
  • 167. BPCL- BHARAT PETROLEUM CORPORATION LIMITED
  • 168. HPCL- HINDUSTAN PETROLEUM CORPORATION LIMITED
  • 171. HSD- HIGH SPEED DIESEL
  • 174. FDI- FOREIGN DIRECT INVESTMENT
  • 180. TERI-THE ENERGY & RESEARCH INSTITUTE
  • 181. APPENDIX- B
  • 182. TERMS AND EXPLANATIONS
  • 184. Industrial Policy Revolution: Industrial Policy Revolution Industrial Policy Resolution of 1948 Industrial Policy Resolution of 1956 Industrial Policy Resolution of 1973 Industrial Policy Resolution of 1977 Industrial Policy Resolution of 1980 New Economic Policy of 1991 Why NEP 1991?????? To overcome Reservation of Industries To overcome Entry & Growth Restrictions To overcome Restriction on Foreign Capital & Tech. New Economic Policy - 1991 :New Economic Policy - 1991 Announced by Narasimha Rao in July, 1991 Aim of New Industrial Policy (NIP) of 1991: Unshackling the Indian Industrial Economy from the cobwebs of unnecessary bureaucratic control, Introducing liberalization with a view to integrate the Indian Economy with the world economy, Removing restriction on direct foreign investment as also to free the domestic entrepreneur from the restriction of MRTP Act, and Shedding the load of Public Enterprises, which have shown a very low rate of return or were incurring losses over the years. Initiatives Taken in New Economic Policy :Initiatives Taken in New Economic Policy New Economic Policy (1991) Industrial Sector Reforms Public Sector Policy Industrial Licensing Policy MRTP Act External Trade Reforms Foreign Investment Foreign Technology Agreements Public Sector Policy :Public Sector Policy Public enterprises producing a very low rate of return on the capital invested resulting in a burden rather than being an asset to the government NIP 1991 adopted a new approach to public enterprises, with a priority in following areas: Essential infrastructure goods and services Exploration and exploitation of oil and mineral resources Technology development and building of manufacturing capabilities in areas, which are crucial in the long term development of the economy and where private sector investment is inadequate Manufacture of the products where strategic considerations predominate such as defence equipment Public Sector Policy……..CONTD :Public Sector Policy……..CONTD Existence of large number of chronically sick public enterprises incurring heavy losses, operating in a competitive market and serving little or no public purpose Measures: Portfolio of public sector investments reviewed with a view to focus the public sector on strategic, high tech and essential infrastructure Public Enterprises which are chronically sick and which are unlikely to be turned around referred to the Board for Industrial and Financial Reconstruction (BIFR) for revival/rehabilitation schemes Part of the government’s shareholdings in the public sector would be offered to mutual funds, financial institutions, the general public and workers to raise resources and encourage wider public participation Instilling professionalism in board of public sector companies Greater thrust on performance improvement and greater autonomy to management Industrial Licensing Policy :Industrial Licensing Policy Role of the government changed from that of only exercising control to one of providing help and guidance by making essential procedures fully transparent and by eliminating delays Industrial licensing to be abolished for all projects except for a short list of industries related to securities and strategic concerns Areas where security and strategic concerns predominate will continue to be reserved for the public sector In projects where imported capital goods are required, automatic clearance will be given in cases where foreign exchange availability is ensured through foreign equity Location other than cities of more than 1 million population, there will be no requirement of obtaining industrial approvals from the central Government except for industries subject to compulsory licensing List of Industries :List of Industries Reserved for the Public Sector Compulsory Industrial Licensing MRTP ACT :MRTP ACT Need for achieving economies of scale for ensuring higher productivity and competitive advantage in the international market, the interference of the government through the MRTP Act has to be restricted: Removal of pre-entry scrutiny of investment decisions by so-called MRTP companies Emphasis to be on controlling and regulating monopolistic, restrictive and unfair trade practices Thrust of policy to be on controlling unfair or restrictive business practices Foreign Investment :Foreign Investment Aimed at encouraging foreign trading companies to assist Indian exporters in export activities: Approval would be given for direct foreign investment upto 51% foreign equity in high priority industries Import of the components, raw materials and intermediate goods, and payment of know how fees and royalties would be governed by the general policy applicable to other domestic units, the payment of dividends would be monitored through the Reserve Bank of India Majority foreign equity holding upto 51% equity would be allowed for trading companies primarily engaged in export activities Foreign Technology Agreements :Foreign Technology Agreements In order to inject the desired level of technological dynamism in Indian industry Automatic permission will be given for foreign technology agreements in high priority industries (list attached) upto a lumpsum payment of Rs. 1 crore, 5% royalty for domestic sales and 8% for exports, subject to total payment of 8% of sales over a 10 year period from date of agreement or 7 years from commencement of production. In respect of industries other than those in below list, automatic permission will be given subject to the same guidelines as above if no free foreign exchange is required for any payments. No permission will be necessary for hiring of foreign technicians, foreign testing of indigenously developed technologies. Industrial Policy Changes :Industrial Policy Changes Evaluation of New Economic Policy - 1991 :Evaluation of New Economic Policy - 1991 Positive Aspects: Fulfilled a long-felt demand of the corporate sector for declaring in very clear terms that licensing was abolished for all industries except 18 industries which included coal, petroleum, sugar, motor cars, cigarettes, hazardous, chemicals, pharmaceuticals and some luxury items Business houses intending to float new companies or undertake substantial expansion were not required to seek clearance from the MRTP Commission Bottlenecks created by the bureaucracy were struck down by this singular decision of the Government NIP unshackled many of the provisions, which acted as brakes on the growth of large private corporate sector Overall relief in the dismantling of industrial licensing and regime of controls Evaluation of New Economic Policy - 1991 :Evaluation of New Economic Policy - 1991 Negative Aspects: Policy regarding Foreign Capital: Assertions by critics assert that the welcome foreign capital may lead us to selling of our sovereignty to multinationals Prudence demanded that utmost care to be taken to invite foreign capital in high priority industries only Monitoring of payment of dividends by RBI Public Sector Policy: The govt. should concentrate on improving the performance of the redeemable and surplus generating public sector enterprises which constitute 85% of the investment Evaluation of New Economic Policy - 1991 :Evaluation of New Economic Policy - 1991 Social Security Policy Industrial Policy sidetracked issues and generated a fear in the mind of the workers that the govt. was not sincere in protecting the interests of the workers Govt. of India could successfully go in for shedding its load of loss-making enterprises and help the working class to assume the ownership role and nurse these enterprises to health MRTP Policy Failure of MRTP to break the monopolistic or Oligopolistic character of the Indian market.
  • 185.
  • 186. Kisan Seva Kendra is a unique award-winning retail outlet model pioneered by IndianOil to cater to the needs of the customers' in the rural segment. Today IndianOil's KSKs have emerged as a dominant player in the rural markets, riding on the rapid growth of upcoming second and third tier roads in the rural areas. The KSKs come with a fresh perspective enabling dealers to tap the huge demand driven in by consumers there. In addition, non-fuel retail facilities like convenio stores have been added to the KSKs selling pesticides, vegetables, banking products and stationery items. IndianOil has also tied up with Indo Gulf for fertilizers, National Seeds Corporation for marketing seeds and agricultural inputs as well as alliances with Nabard, Oriental Bank of Commerce and Bank of Baroda for banking products. At some KSKs even internet kiosks, communication facilities, etc. have been installed. Business alliances have been signed to market products from Dabur, Airtel, Tata Chemicals, Godavari Fertilisers, Gokulam Fertilisers, Hindustan Unilever and Godrej Agrovet. Other alliance partners are Emami for personal care products, Money Gram for money transfer, MILMA and OMFED for milk products and Supplyco for convenience stores. 
  • 187.
  • 191. Directorate General of Hydrocarbons, FIFTH ANNUAL CONFERENCE ON “GAS In INDIA”
  • 193. List of petroleum companies
  • 196. Trends in Consumption and Production: Household Energy Consumption
  • 201. Retailing in India: A nation of shopkeepers
  • 205. Exchequer earns 3.5-4% of GDP by taxing oil
  • 207. Ten years of economic liberalization
  • 209. Globalization and the Indian Petroleum Industry
  • 213. Effects of Globalization on Indian Industry
  • 219. Indian Oil eyes US$ 496.27 million from non-fuel retail
  • 221. IOC launches XTRACARE retail plan
  • 223. IOC to seek franchises at 2,000 fuel outlets
  • 225. The New Non-Fuel Push
  • 227. Inside In & Out (Flash)
  • 229. THE ‘In & Out’ CONCEPT
  • 231. Club HP - High - quality personalized "Vehicle and Consumer Care"
  • 233. Real Estate Opportunities in Fuel Retailing
  • 235. Fuelling Growth in Petro-Retailing: New Business Opportunities
  • 237. From Market Research to Consumer Insights
  • 239. Building a Strong Brand by Dave Dolak
  • 241. The New Rules of Branding: Building Strong Brands Faster
  • 243. Indian Retail Industry: Current Scenario
  • 249. New strategies for non fuel business <br /> <br />