Premium Essay

Indian Oil Case Study

In: Business and Management

Submitted By sirsendu
Words 3379
Pages 14
M
World Economy

anagement’s discussion & analysis

(Forming part of the Directors’ Report for the year ended 31st March 2010) INDUSTRY STRUCTURE & DEVELOPMENTS

During the course of the year, international economic conditions exhibited a marked improvement with the global economy getting into an early recovery mode. The vital statistics of the engine of the world economy entered the positive territory. After June 2009, world trade flows entered into an expansionary mode after declining for several months and GDP growth turned positive. A corrective policy action on both fiscal & monetary fronts has been at the very core of the recovery witnessed. However, the recovery process has not been uniform and has varied in speed & strength across countries and regions, with emerging economies leading the way. While the recovery has been early, it is still nascent and fragile and the key risks and destabilising factors continue to exist. This calls for further reforms in the financial markets and controlling fiscal deficits in the light of rising commodity prices & high unemployment rates. The recent debt crisis in Greece has only highlighted the fragility of the recovery process and raised questions on the credibility of the economic recovery and the stability of financial markets. Indian Economy Indian economy has been amongst the first economies to emerge out of the grips of recessionary forces in a incredible recovery led by the industrial and services sectors. The acceleration in the growth of the manufacturing sector from 3.2% recorded in 2008-09 to 10.8% during 2009-10 has been particularly remarkable, especially in the automobiles, plastics & chemicals

sub-sectors. Besides, the turnaround witnessed in the infrastructure sectors such as electricity, telecom, coal, roads etc. has also been particularly encouraging. Trade flows, which had been one of the...

Similar Documents

Free Essay

Oil and Exchange Rate

...IMPACT OF OIL TRADE ON EXCHANGE RATE OF INDIA Introduction India in the 21st century is one of the fastest growing countries of the world. Oil being the bloodline of the growing economy, is a necessary commodity and has a very inelastic demand, steadily growing with time. In 2011, India was the fourth largest energy consumer in the world after the United States, China, and Russia. India's economy grew at an annual rate of approximately 7 percent since 2000 and proved relatively resilient to the 2008 global financial crisis. India was the 10th largest economy in the world in 2011, as measured by nominal gross domestic product (GDP). In the International Energy Outlook 2011, EIA projects India and China to account for the biggest share of Asian energy demand growth through 2035. India is heavily dependent on crude oil imported from the Middle East and imports more than 70% of its domestic demand. Due to a stagnation of domestic production, the import of crude has gone up from 11.68 million tons (mt) in 1970–1971 to 196 mt in 2007–2008. Oil import bill for India in 2007–2008 was $144.93 billion. With the high demand of oil and other petroleum, and their fluctuating price in the global markets, we are at a very high risk of foreign exchange risk. With so much purchase of energy imports, it might lead to exchange rate movements. And the volatility in the exchange rates (caused by the oil price volatility) may have severe effects on the economy, especially on infrastructural......

Words: 2227 - Pages: 9

Premium Essay

Training and Development

...Training and Development- IndianOil _______________________________________________________________________ _ TRAINING AND DEVELOPMENT Introduction Every organization needs to have well trained and experienced people to perform the activities that have to be done. Training is a process of learning a sequence of programmed behaviour. It is application of knowledge. It gives people an awareness of the rules and procedures their current job and prepare them for an intended job. Development is a related process. It covers not only those activities which improve job performance, but also which bring about the growth of the personality; their potential capabilities so that they become not only good employees but better men and women. In organizational terms, it is intended to equip person to earn promotions and hold greater responsibility. to guide their behaviour. It attempts to improve their performance on Training a person for a bigger and higher job is development. And this may well include not only imparting specific skills and knowledge but also inculcating certain personality and mental attitudes. As the jobs become more complex, the importance of employee development also increases. In a rapidly changing society, employee training and development are not only an activity that is desirable but also an activity that an organization must commit resources to if it is to maintain a viable and knowledgeable work force. © A 1 help individuals in the progress......

Words: 15227 - Pages: 61

Premium Essay

Financial Analysis

...“Ratio Analysis and Comparative Study of Financials of IOCL with its Competitors” Submitted for partial fulfilment of the Award Of Master of Business Administration DEGREE (2011-2013) Submitted By ArushiBhutani 1103270034 UNDER THE GUIDANCE OF Internal Guide:JayaPandey School of Management ABES ENGINEERING COLLEGE, GHAZIABAD (ISO 9001:2000 certified) AFFILIATED TO MAHAMAYA TECHNICAL UNIVERSITY, NOIDA Candidate’s Declaration/Certificate I “ARUSHI BHUTANI” hereby declare that the work which is being presented in this report entitled “Ratio Analysis and Comparative Study of Financials of IOCL with its Competitors” is an authentic record of my own work carried out under the supervision of Ms. “JAYA PANDEY”. The matter embodied in this report has not been submitted by me for the award of any other degree. Dated: ARUSHI BHUTANI MBA Department This is to certify that the above statements made by the candidate are correct to the best of my knowledge. Prof. Rakesh Passi JAYA PANDEY Head of Department Designation: Date: Department: Date: ACKNOWLEDGEMENT “Interdependence is a higher value than independence” Some says “Managers are born and some says managers are made”. I was also in some dilemma before commencing my Summer Internship Project. But after the successful completion of my summer internship project, I came to know that managers are made if they are......

Words: 17043 - Pages: 69

Free Essay

Impact of Csr on Employee Motivation

...Case Study: Impact of CSR on employee motivation Abstract: The workforce is a unique and irreplaceable possession of an Organization and it is absolutely necessary to keep them motivated at all times for continuous development and growth. The purpose behind this research is to help modern day companies realize the importance of CSR and how it can help to enhance the economic prosperity of an organization while motivating the workforce at the same time. Data collection is carried out with the aid of two questionnaires. Each questionnaire consists of 20 questions in the context of CSR and Employee Motivation. Data Analysis is completed with the assistance of IBM SPSS. The result of this research gives us understanding about the roles of CSR and the characteristics responsible behind employee motivation. Apparently the employees find it utterly encouraged whenever the Top Management involves them in decision making, concerning issues of the organization. The employees are fairly satisfied with their salary, the system of leaves they are provided with and their responsibilities. INTRODUCTION: Indian Oil is known to be the national oil flagship company of India with interests in business straddling the whole value chain of hydrocarbon – from refining, transportation of pipeline and marketing of products of petroleum to exploration and production of crude oil and gas, marketing of natural gas and petrochemicals. It is the leading Indian corporate, according to the Fortune “Global......

Words: 2526 - Pages: 11

Premium Essay

Case Study of the Economic Problem

...Case study of the Economic Problem The basic economic problem Economists distinguish between wants and needs; needs are those things which people require to survive. These comprise food, water and protection from the elements in the form of shelter and clothing. Nestlé products fall into two of these categories (food and water). However they can only be described as wants because it is possible to survive without consuming any Nestlé products at all. All resources are considered scarce because the wants for them (the demand) outstrip the various uses for them (the supply). This means that they have to be shared out (distributed) by a mechanism such as price. There are numerous ways in which a resource may be used, an opportunity cost is therefore created whenever one use is preferred over another. If water is used for industrial production, it is not available for agriculture or domestic consumption. Water is a classic example of the distribution problem of scarce resources. There is actually enough water in the world for everyone's needs, and it is not a resource that is ever 'used up' in the way that other resources can be consumed. The amount of water in the earth's water cycle - evaporating from the sea, then falling as precipitation over land - is constant, the problem is one of distribution - it is not always located where it is needed. Read more:......

Words: 6384 - Pages: 26

Premium Essay

Opec

...OPEC and the economics of cartel Presented by Sanjay Gupta Lakshmi Varma Lakshmi Nair Shibin T Renjith Outlines  What is OPEC? 1. 2. 3. Oil – A basic necessity OPEC (Information on OPEC) OPEC Side Line Objectives  Our main premise of this Presentation is to derive economics concepts from OPEC and the economics of cartel.  We will also cover briefly micro economics concepts – Demand and Supply, market structure & pricing decisions and related concepts. 2. OPEC is an epitome of Oligopoly 1. Oil – Life Blood of Indian Economy  OIL - One of the life bloods of our Indian economy is oil.  The impact of oil in today’s Indian economy has been witness by consumers many times.  We have seen how human spending and travel got affected as the price of oil fluctuates. In contrast almost all energies are generated using oil, to mention few; Cars, Trucks, Indian railways, Plane, use oil in order to run their engine.  Therefore if oil supply disturbed for one day we can imagine how the Indian economy can be affected greatly. OPEC - Introduction  About OPEC (pronounced oh-peck)- Organization of the Petroleum Exporting Countries - Organization of the Petroleum Exporting Countries, established in Bagdad, Iraq in 1960. OPEC as a cartel, manipulate supply of oil in the market, in hopes of keeping prices, and profits, high.  It is comprised of 12 members –Algeria, Angola, Ecuador, Islamic Republic of Iran, Iraq, Kuwait, Socialist People’s Liberian Arab...

Words: 1650 - Pages: 7

Premium Essay

Management

...Journal of Political Studies, Vol. 19, Issue - 2, 2012, 57:69 Strategic Importance of Gwadar Port Hasan Yaser Malik ♣ Abstract The pragmatic facets like geography and history have always imprinted the demographical mosaic and development of a civilisation. The civilisations have always developed along the waters. The waters have been used as trade route since long and the modern trade has further enhanced the need of trade through waters. Pakistan being a gateway to the strategically important 'Strait Of Hurmoz' in the Indian Ocean, blessed with hidden treasures and bordering two Islamic Republics, Afghanistan and Iran, has always been a centre piece for Regional Politics. The emergence of Gwadar Port as a vibrant regional economic hub has caused the regional and extra regional powers to develop strategic and infra structural development with Gwadar Port to reach the energy rich Central Asian Republics (CARs). Iran and Dubai Port World (UAE) have interests to keep Gwadar Port out of competition as it serves as a gateway to Strait of Hurmoz. Pakistan needs to be addressing all the concerns to make Gwadar as a regional energy corridor. Key Words: Strategic, Gwadar, Sea lines of communications, Caspian region, Indian ocean Geo Strategic Importance “If we see this whole region, it is like a funnel. The top of the funnel is this wide area of Central Asia and also China's western region. And this funnel gets narrowed on through Afghanistan and Pakistan and the end of this......

Words: 5237 - Pages: 21

Premium Essay

Effect of Oil Prices in Indian Stock Market

...10 Research Methodology 10 FINDINGS 11 CONTRIBUTION TO LITERATURE 23 CONCLUSIONS 23 References 25 UNDERSTANDING ON RESEARCH PROBLEM IDENTIFICATION & DEFINITION Relationship between macroeconomic variables and broad market index: A causal relationship between Nifty CNX and macroeconomic variables in India ABSTRACT The relationship between macroeconomic variables and broad market index by now are well documented in the literature. However a void in the literature relates to examining the causal relationship between Nifty CNX and macroeconomic variables such as FDI, FPI, weighted average lending rate (WALR), GDP and oil import in India and correlation among the macro variables. INTRODUCTION Globalization of Indian economy post liberalization has been spurred by capital and stock investment in terms of FDI & FPI. Indian stock market both securities and commodities are among the favourite hunting spots for foreign investor betting on India’s growth story. Over the last two decades the fast space of economic growth and progressive policy liberalization has made India an attractive destination for World’s investors. FDI and FPI thus have become instruments of international economic integration and stimulation. Fast growing economies...

Words: 6806 - Pages: 28

Premium Essay

Preface

...the course curriculum, the second year MBA students are required to undertake a study on macro analysis of a particular industry and thereby, prepare a project report on the chosen industry. The objective behind preparing this project report is to relate the management subjects taught in the classroom to their practical application and to get insight into practical situation. Petroleum Industry is considered to be the back bone of an economy because this is the main source of energy till date. Any economy around the world would fail to advance a single step in the absence of Petroleum Industry. The Petroleum Industry is divided into two segments namely Upstream Sector consisting of Exploration and Production of crude oil while the Downstream Sector consists of Refining, Processing, Storing, Marketing and Distribution of petroleum products. The most important part of the Petroleum Industry is the Petroleum Refining Industry which refines the crude oil to convert it to the usable fuel. It also derives many derivative products out of the crude petroleum like natural gas, naphtha, etc which can be used in various ways. Hence, for these reasons, we have chosen the Downstream Sector of the Indian Petroleum Industry for our Macro Analysis project. As this is a Macro Analysis project, we have concentrated on the Indian Petroleum Industry and that too focusing on the Downstream Sector for our study and not gone into the in depth analysis of the various players and their......

Words: 2100 - Pages: 9

Premium Essay

E-Payments Proceeds and Improvements

...A PROJECT REPORT ON E-Payments: Proceeds and Improvements Project Submitted in partial fulfilment of MBA Submitted by: Devashree Nadkarni Batch 2014-2016 Under the guidance of Mrs. Dipika Malpekar Institute of Management Christ University, Bangalore March 2015 Declaration I, Devashree Nadkarni solemnly declare that the project work entitled “E-payments: Proceeds and Improvements”, is my original work, it is neither copied from any earlier submitted work elsewhere or not merely copied, this is specifically prepared as a part of MBA curriculum, to be conducted in Year 2015. Signature of the student: ________________________ Name of the Student: Devashree Nadkarni ACKNOWLEDGEMENT It gives me immense pleasure to present the report of Summer Internship Project which is integral part of MBA program at Institute of Management, Christ University, Bangalore. I consider it an honored privilege to have undergone this Internship in Hindustan Petroleum Corporation Limited. This Training period has enriched me with valuable experience & the practical knowledge of Industry with special emphasis on knowledge building and people management skills. This training period has provided me with the best opportunity to put my theoretical management knowledge to its practical use. During my training I worked with some highly knowledgeable and enthusiastic people, without mentioning their names I could not conclude this report. First, I would like to express my sincere gratitude......

Words: 8509 - Pages: 35

Premium Essay

Credit Appraisal of Sbi

...APJEM  Arth Praband : A  Journal of Economics and Management    Vol.2 Issue 1, January 2013, ISSN 2278‐0629     CREDIT APPRAISAL PROCESS OF SBI: A CASE STUDY OF BRANCH OF SBI IN HISAR NANCY ARORA*; DR. ARTI GAUR**; MS. BABITA*** *Student, Department of Business Administration, CDLU, Sirsa. **Assistant Professor, Department of Business Administration, CDLU, Sirsa. **Teaching Associate, Department of Business Administration, CDLU, Sirsa. ABSTRACT             Pinnacle Research Journals                   10       http://www.pinnaclejournals.com                                                                                        Credit risk is a risk related to non repayment of the credit obtained by the customer of a bank. Thus it is necessary to appraise the credibility of the customer in order to mitigate the credit risk. Proper evaluation of the customer is performed this measures the financial condition and the ability of the customer to repay back the loan in future. Credit Appraisal is a process to ascertain the risks associated with the extension of the credit facility. It is generally carried by the financial institutions which are involved in providing financial funding to its customers. In this paper, we study the Credit Risk Assessment Model of SBI Bank and to check the commercial, financial & technical viability of the project proposed & its funding pattern. Also to observe the movements to reduce various risk parameters which are broadly categorized into......

Words: 5018 - Pages: 21

Premium Essay

Emerging Economic and Political Conflicts as Threat to Prosperity

...University of Petroleum and Energy Studies, Dehradun. (Uttarakhand), INDIA __________________________________________________________________________ Abstract India’s rapid economic growth has made it the second fastest growing energy market in the world. Its domestic and international strategies has produced foreign policy differences with the United States that will require careful management on both sides. India’s basic approach to energy diplomacy has been to develop its supply potential and neutralize its potential competitors, principally China. India’s strategic interest in Iran as its energy partner and then the Iraq crisis are having a negative consequence on its economic prosperity, placing it on crossroads with the US. There is a divide between US and EU about the wisdom and desirability of imposing harsh economic sanctions on Russia. In any such confrontation, EU stands to lose much more than the US, though it can be argued that Russia will be the worst loser. In future, Russia may try to find new potential market for its gas and that could be India. So it is important for India to take its stand on Ukraine crisis carefully without tarnishing its relation with USA. India’s long-term prosperity hinges to some degree on a conflict free neighborhood; that an economically integrated region is in India’s overall security interests. Keywords: oil crisis, energy diplomacy, Ukraine Crisis, trade agreement, SAARC Nations Literature Review Indian foreign policy has......

Words: 8568 - Pages: 35

Premium Essay

World Trade Organisation

...WTO AND INDIAN ECONOMY (AGRICULTURAL IMPLICATIONS) BY: RAYNAH FERNANDES 13 SRUSHTI GANGAN 14 NEHA GAONKAR 15 INDEX 1. WORLD TRADE ORGANISATION  GATT  Principles of WTO  Objectives & Function 2. INDIA & WTO 3. INDIAN ECONOMY 4. INDIAN AGRICULTURE  Agricultural Trade  Agricultural Support Policies  Importance Of Indian Agriculture 5. AGREEMENT ON AGRICULTURE  The Three Boxes: Green, Amber and Blue  Trend In Pattern Of Consumption  Implication Of Agreement : Short Term and Long Term 6. WTO & INDIAN AGRICULTURE  India’s Commitment  India’s Agricultural Trade Under WTO Regime 7. A STUDY & ITS FINDINGS 8. SUGGESTIONS 9. BIBLIOGRPHY ACKNOWLEGEMENT We would like to acknowledge and express our sincerest gratitude for the efforts and timely guidance of our professor Mrs. Neelam Shetty of Managerial Economics for providing us the opportunity to study the impact of WTO agreements on the Indian economy especially focused on the agricultural sector. We would also like to thanks and express our gratitude towards professor Mr. Agnelo Menezes of economics from the Bachelors of Arts faculty and his student from XRCVC Master Prashant Lindayat. Each and every team member gave in his best to make sure that this report has all the necessary inputs and is completed on time. We definitely had a knowledgeful and enriching experience. WORLD TRADE...

Words: 12777 - Pages: 52

Free Essay

Foreign Direct Investment

...invest in developed countries as well as in developing countries. Shanghai Automobile Industry Corp. bought over 50 percent stake in Korean Ssangyong Motor Co. in 2004, and TCL acquired the colour TV manufacturing from French Thomson in 2004 in order to expand their markets and achieve economies of scale. CDC Software, a wholly owned subsidiary of Chinese CDC Corporation, acquired American Catalyst International to seek global supply chain execution solutions services. In the same year, China Mobile Communications Corp. purchased 88.9 percent stake in Pakistani wireless operator Paktel from Millicom International cellular in 2007 for the local market and as a trial for further internationalization (Rasiah, Gammeltoft, & Yang, 2010). In Indian OFDI, the market...

Words: 2497 - Pages: 10

Premium Essay

Deprication of Indian Rupee

...The Indian Rupee Crisis Economics Essay-1 In this paper we are going to examine the cause and the impact of rupee depreciation on the Indian economy. Since last few months Indian rupee came under great stress as overseas investors are paring their exposure to Asia’s third-largest economy amid international uncertainty and mounting worries over the domestic economy. In 2009 – 2010 the exchange rate was hovering around the 43 – 45 rupees per US Dollar level. And now it is around 55 – 56 levels, the main reasons to examine are increase in import bill, higher inflation, fiscal mismanagement and all resulting in higher cost of borrowing. The rupee has lost more than 15% of its value this year, making it one of the worst performing currencies in Asia. This paper reviews the probable reasons for this depreciation of the rupee and the outlook for the same. It also reflects on the policy options to help prevent the depreciation of the Rupee. This paper will firstly discuss about the economy of currency to give an overview of the problem and the factors related to it. Afterwards it will be examining the causes of the Indian rupee depreciation with respect to the Indian economy and the global economy. And after that it will analyse the impact of the same on trade and business. Finally, recommending the policy actions in response of the falling currency. II. LITERATURE REVIEW: These papers include the work which have been used as a basis or reference for formulating the policies......

Words: 3340 - Pages: 14