Market Presence

In case of refining capacity, IOCL and its group companies have a share of almost 31% with a combined refining capacity of 65.7 MMTPA of units spread over the country. In contrast RIL has a market share of 28% with a combined refining capacity of 60 MMTPA of both its units at Jamnagar. Reliance offers a range of petroleum products for exports as well as supply in the Indian market. On the other hand, as per the current regulations of the Government of India, Reliance is allowed to sell a limited range of products (referred to as "decontrolled" products) in the Indian market. It also imports some petroleum products for feedstock purposes as well as trading. Reliance has market presence in India, where it has reopened its Fuel retail outlets in 2012. It is also focussing on NonFuel retail activities through its service offerings of highway hospitality services, vehicle care services, etc. Reliance also is present in domestic and industrial LPG market through its offering, Reliance Gas. It also serves the aviation sector through its Reliance Aviation division and supplies Aviation Turbine Fuel (ATF) at different airports and airfields across India. Reliance also owns the lubricant brand Relstar and also sells this and Castrol through its retail outlets and distribution channels. These are some of the initiatives by Reliance in the B2C (Business to Consumer) segment, many of which are still in the nascent stages. Reliance is a dominant player in the B2B (Business to Business) segment, and exports much of its refinery output and sells some part of it to Oil Marketing Companies (OMCs). Reliance also uses the refinery output in its petrochemicals complex to manufacture other intermediates like LAB, PTA, paraxylene, MEG, PFY, Butadiene, etc. These are either sold in the domestic market or are exported. Reliance also has a major presence in Oil & Gas exploration and production space with its KG-D6 and Panna Mukta-Tapti producing asset and assets in Peru, Colombia, Yemen and Australia. .It also owns shale gas acreges in the United States. Indian Oil has one the largest petroleum marketing and distribution networks in Asia, with over 35,000 marketing touch points. The countrywide marketing operations are coordinated by 16 State Offices and over 100 decentralised administrative offices. It also focusses on Non-Fuel Retail activities through its initiatives like XtraCare, Kisan Seva Kendra and Swagat. It markets lubes under the brand name of SERVO, which is the largest selling lube brand in India. It also services domestic LPG market through its offering INDANE. Indian Oil is a dominant player in the B2C segment and the largest Oil Marketing Company in India. It also has a significant presence in B2B segment with primary focus on Bulk Industrial Fuels, Marine Fuels. It supplies Aviation Fuels through its Indian Oil Aviation Service. Indian Oil also has a significant presence in petrochemicals space with its

production of intermediates like LAB, PTA, etc. Indian Oil also has a presence in Oil & Gas exploration and production space with assets in Libya, Iran, Nigeria, Yemen, and Venezuela. Both Indian Oil and Reliance have International Oil Marketing presence through their respective subsidiaries, IOC Lanka (Sri Lanka) and GAPCO (East Africa).

Competitive Advantage
First proposed by Micheal Porter, internationally renowned Management Guru, Competitive advantage is defined as the strategic advantage one business entity has over its rival entities within its competitive industry. Achieving competitive advantage strengthens and positions a business better within the business environment. Internationally, sources of competitive advantage for refineries are Gross Refining Margin, Nelson Complexity, Scale of Operations (in terms of output), Location, Pipeline Network, and Presence in shipping business Point of Comparison Reliance Industries Ltd. (RIL) Indian Oil Corporation Ltd. (IOCL) Gross Refining Margin Nelson Complexity Index 8.4 (March 2012) 4.0 (March 2012)

14+ (This implies that the refinery is Ranges from 6 to 9 capable of handling a wide variety of Crude Oil from different sources)

Scale (Output)

60 MMTPA in single location

65.7 MMTPA spread over 10 locations

Location

Coastal Location

3 out of 10 refineries are located on Sea Coast

Pipeline Network Presence Business Presence in Fuel Retailing in

No Shipping Yes

Yes No

Small Presence

Hugely Significant Negligible

Exports to International Large Exports Markets

Presence in downstream Large Presence and Global Scale with Significant Petrochemical Business International Market leadership in some Presence product categories

Domestic