Have
a look at top 5 biggest companies in India for 2012, you will find a trend. 4
of these are in refinery industry. If you slip an year back, these still remain
4. That entails a big fact about Indian economy. The power is the need of
time.
Indian
economy is in a growing state and everything from day today life needs to
government policy making are dependent on functions such as transportation and
power. Having a close look at the financials of these companies give insights
into our economy. Look at their revenues it is huge, then have a look at their
profit after taxes- you will find another trend. The PAT (Profit after taxes)
is quite small as compared to their annual revenues. Here is a screenshot of
The Economic Times ET500 list for the year 2012.
Out of these 4 companies, 3 are states
run. Except Reliance Industries Ltd. All have a very low PAT and huge revenues.
Just by their financial numbers, it looks like they are toiling the burden of
Indian economy by making a sacrifice on profitability (These all are states
run, so we can’t expect them to be in the race of profitability. So a positive
profit is good as well) and providing the nation with energy resources to
prosper and grow.
- Indian Oil Corporation Limited (IOCL)
Indian Oil Company Limited began
operations in 1959 and when it merged with Indian Refineries Limited in 1964 it
became Indian Oil Corporation Limited. It is India’s biggest oil producer and
marketer. By sheer size of it, IOCL boasts as world’s 83 largest public
corporation (2012 Fortune Global listing). Indian Oil Group of companies own 10
out of 22 refineries with a combined capacity of 65.7 million metric tons per
year. With a whopping 49% market share for Indian petroleum products and 31%
refining capacity its presence can be found in 66.8 million households in India
as Indane- the commercial and domestic LPG cylinders (Indane Superbrand, 2009).
- Relinace Industries Limited (RIL)
Reliance is India’s largest
private sector company. With annual revenues more than USD 74 billion (Fortune
500, 2013, Rank 107) it is 2nd Indian company to make it to Fortune
500 list. Reliance is into a very diverse foray of offering including
petrochemicals, refineries, retail, textiles, infotel and many more. Company
was founded by Late Dhirubhai Ambani. It started off as a textile company back
then but then vertically integrated itself by proceeding backwards to
polyester, plastics, petrochemicals, refining and oil and gas exploration.
Reliance offered its first IPO in year 1977 and since then it has been a
trusted and profitable brand for its stakeholders.
- Bharat Petrolium Corporation Limited (BPCL)
With a Fortune 500 rank of 229 (year
2013, Revenue USD 44.8 Bn) it is India’s 3rd biggest government
corporation. The roots of BPCL go as behind as In 1928, when Asiatic Petroleum
(India) joined hands with Burmah Oil Company - an active producer, refiner and
distributor of petroleum products, particularly in Indian and Burmese markets.
This alliance led to the formation of Burmah-Shell Oil Storage and Distributing
Company of India Limited. Which later on 24th January 1976, was taken over by the
Government of India to form Bharat Refineries Limited. On 1st August 1977, it
was renamed Bharat Petroleum Corporation Limited. It was also the first
refinery to process newly found indigenous crude (Bombay High), in the country.
On 15th October 1932, when civil aviation arrived in India, Burmah-Shell Oil
had the honour of fuelling J.R.D. Tata's historic solo flight in a single
engined de Havillian Puss Moth from Karachi to Bombay (Juhu) via Ahmedabad.
- Hindustan Petroleum Corporation Limited (HPCL)
HPCL has a Fortune 500 ranking of 260
(year 2013) with annual revenues of USD 40 bn. It has a market share of 20% in
India. It was incorporated in 1974 by merger of Esso Standard and Lube India
Limited to form Caltex Oil Refining India Limited which was taken over by
government and merged with HPCL in 1978 by CORIL-HPCL amalgamation order. HPCL
operates 2 major refineries producing a wide variety of petroleum fuels &
specialties, one in Mumbai (West Coast) of 6.5 Million Metric
Tonnes Per Annum (MMTPA) capacity and the other in Vishakapatnam,
(East Coast) with a capacity of 8.3 MMTPA. Some other refineries include
Mangalore and Bhatinda. HPCL also operates the largest Lube refinery in India
with a capacity of 335 MMT (million metric tons). It is headquartered in
Mumbai.
- State Bank of India (SBI)
SBI is a multinational banking and
financial services company. It is India’s largest bank with Forbes ranking of
298 for 2013. SBI’s total revenues are USD 37 Bn. Its headquarter is in Mumbai.
SBI’s roots go as far as 1806 to Bank of Calcutta (see full history at http://www.sbi.co.in/user.htm).
Employee strength of SBI as of 2012 was close to 300,000. It is also by far the
biggest bank and financial company in India with whopping assets of USD 501 Bn.
SBI has more than 15000 branches including close to 150+ branches in foreign
countries. SBI has 20%+ market share in deposits and loans among Indian
commercial banks. SBI has 5 associate banks headquartered in Mysore, Patiala, Travancore,
Hyderabad, Bikaner & Jaipur.
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