Indian Oil Corporation Limited is planning to spend Rs 1.8 trillion over the next 5 to 7 years to expand refining capacity and build its new businesses. The company's annual general meeting was held on 29 August, 2017.
Indian Oil is expanding its Barauni and Gujarat refineries to boost savings and improve energy efficiency.
Chairman of the company said the following,
"Apart from capacity expansion, a new large-size single crude unit will be incorporated in place of several existing small units for efficient operations. Expansions of Panipat and Paradip refineries are also under consideration along with various petrochemical options."
Indian Oil, which is expanding in petrochemicals and gas marketing, is acquiring equity in gas imports at Ennore and on the east and west coasts at Dhamra and Mundra respectively, as a joint venture partner.
Over the years, Indian Oil has been expanding into new areas. While in the pre-1999 era, Indian Oil was only a refining and marketing company, post 1999 it has expanded into petrochemicals and natural gas. From 2009 onward, the company has expanded in the upstream or exploration and production sector as well as alternative energy.
Indian Oil has a 20% market share in the petrochemicals segment with the business contributing to almost a quarter of the company’s profitability. The company has so far implemented petrochemicals projects worth Rs. 20,800 crore. In addition, a polypropylene unit is being set up at Paradip at an investment of Rs.3,150 crore.
During the last financial year, Indian Oil has acquired participating interest in two oil and gas assets in Russia as part of an Indian consortium which would bring in 104 million tonnes of oil and 1.5 trillion cubic feet of gas reserves to India.