SWOT Analysis of Indian Oil Corporation Limited. Indian Oil Corporation Limited (IOCL) is an oil and gas Indian multinational company operating its business under the Ministry of Petroleum and Natural Gas. It came into existence on 30 June 1959. The headquarter of the company is in New Delhi, India.
Some of the main products and services of Indian Oil Corporation are as follows;
- Natural Gas
Key statistical facts and figures about Indian Oil Corporation are as follows;
- The annual revenue of IOCL in 2023 was 120 billion US dollars
- Out of which, the net income of the company was 1.2 billion US dollars
- Approximately 33,498 employees are working for the company to manage its operations
Some of the main business divisions of Indian Oil Corporation are as follows;
- Cryogenics and Explosive Divisions
- Production & Explosion Division
- Petrochemical Division
- R&D Division
- Marketing Division
- Pipeline Division
- Refineries Division
Key subsidiaries of Indian Oil Corporation are as follows;
- Petronet LNG
- Corporation Limited
- Chennai Petroleum
- Indane LPG
Some of the top competitors of Indian Oil Corporation are as follows;
- Hindustan Petroleum Corp Ltd
- Bharat Petroleum Corp Ltd
- Oil & Natural Gas Corp Ltd
- Reliance Industries Ltd
- Chennai Petro
Today, we’ll discuss the swot analysis of Indian Oil Corporation Limited. It is going to focus on the internal strengths and weaknesses; external opportunities and threats to the Indian oil and Gas Company. Here’s the swot analysis of Indian Oil Corporation Limited as follows;
Strengths of Indian Oil Corporation
Some of the main strengths in the SWOT Analysis of Indian Oil Corporation are as follows;
IOCL is the country’s largest government-owned producer of oil and gas companies both in terms of revenue and production capacity. It is the Indian largest commercial enterprise with a strong brand name, recognition, and reputation.
IOCL has got a diversified product portfolio and business portfolio. For instance, the company has got many refineries across the country and offers a wide range of products like petrochemicals, lubricants, fuel, and other petroleum products.
OICL has got a huge distribution network spread across the country with strong brand recognition. In fact, the company has the world’s largest pipeline comprising 11000 KM. It allows the company to distribute its products across the country.
Share in petroleum
IOCL holds a majority share of petroleum products in the Indian market; along with a significant share in the downstream sector pipeline capacity, and refining capacity in the Indian consumer and commercial market.
In order to attract and retain the attention of customers and stakeholders, IOCL launches various types of loyalty programs. XTRAPOWER Fleet Card Program is among one them, and its objective is to develop large fleet operators.
IOCL launches various types of marketing and promotional campaigns in order to maintain its influence in the consumer market. Some of them are online ads, print, sponsorships, and TVC; they help the company to become a top Indian brand.
Weaknesses of Indian Oil Corporation
Some of the main weaknesses in the SWOT Analysis of Indian Oil Corporation are as follows;
IOCL is a government-controlled organization, and it helps the company in many ways including regulations and approvals. But a lot of bureaucratic involvement slows down the growth of the company.
The competition is very high in the oil and gas and petroleum products industry. Various brands are offering more or less similar types of products and services. It has become very difficult for IOCL to maintain its position in the market.
Opportunities for Indian Oil Corporation
Some of the main available opportunities in the SWOT Analysis of Indian Oil Corporation are as follows;
Merger & Acquisition
There are various small petroleum companies operating their business in the Indian market. IOCL should consider merging or acquiring them, it would help the company to strengthen its market position and expand its business portfolio.
IOCL should consider expanding its business in the global market by making alliances with international brands. There are various developing markets that IOCL could serve, and increase its revenue and profitability.
Natural Gas Market
The LPG gas market is increasing and there are automotive companies developing vehicles powered by LPG. It presents a great opportunity for the company to focus on the growth and development of LPG.
Fuel prices and market demand are increasing across the world. The growing trend and increased prices would increase the revenue and profitability of the company in the long term.
Threats to Indian Oil Corporation
Some of the main potential threats in the SWOT Analysis of Indian Oil Corporation are as follows;
Negative Impact on Environment
Consumption of oil and gas has a very bad and negative influence on the environment and the ozone layer. Various NGOs and environmental organizations are protesting to reduce the consumption and production of petroleum products. Governments are facing a lot of pressure to decrease them, and it puts the OICL business in great jeopardy.
Government and bureaucratic involvement put a lot of pressure on the company negatively. In fact, it is slowing down the growth and productivity of the company, and the private competitive companies are performing very well.
Conclusion: India Oil Corporation SWOT Analysis
After an in-depth study of the swot analysis of Indian Oil Corporation Limited; we have realized that OICL is the world’s leading company in the oil and gas industry. If you are learning about the business of OICL Petroleum company, then you should keep in mind the abovementioned internal and external factors.
Ahsan Ali Shaw is an accomplished Business Writer, Analyst, and Public Speaker. Other than that, he’s a fun loving person.