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- 1. INTRODUCTION ABOUT INDIAN OIL. IndianOil is India's flagship national oil company with business interests straddling the entire hydrocarbon value chain – from refining, pipeline transportation and marketing of petroleum products to exploration & production of crude oil & gas, marketing of natural gas and petrochemicals. It is the leading Indian corporate in the Fortune 'Global 500' listing, ranked at the 98th position in the year 2011. . With over 34,000-strong workforce, IndianOil has been helping to meet India’s energy demands for over half a century. With a corporate vision to be the Energy of India, IndianOil closed the year 2010-11 with a sales turnover of Rs. 3,28,744 crore ($ 72,125 million)andprofitsof Rs. 7445 crore. At IndianOil, operations are strategically structured along business verticals - Refineries, Pipelines, Marketing, R&D Centre and Business Development – E&P, Petrochemicals and Natural Gas. With facilities at multiple locations and ever-expanding market opportunities, IndianOil is poised to become an integrated energy company. As the flagship public sector enterprise of India, IndianOil has also successfully combined its corporate social responsibility agenda with its business offerings, meeting the energy needs of millions of people every day, across the country. DIVERSIFICATION-BEGINNING OF PROBLEM Until 1991, IndianOil was purely a downstream company. And it was not into any other businesses. It was only after liberalisation that IndianOil decided to diversify and the Board took the lead by creating a business development group in 1994 that ventured into different businesses both upstream and downstream. From 1994 onwards, these internal teams have been focusing on diversifying into non core businesses. First it ventured into petrochemicals, then natural gas, LNG, and globalization of marketing operations. Today, IndianOil is poised to become the second major petrochemical company in India. In the last few years, IOCL consolidated in core areas of refining and marketing and have also grown very fast in strategic initiatives across the hydrocarbon value chain. With a consortium approach, It has also grown in upstream integration into oil and gas exploration and production, downstream integration into petrochemicals, and diversification into natural gas business, as well as globalization of marketing operations. Major challenges faced in the HR function in the past years IOCL today is India’s largest commercial enterprise with a turnover of Rs. 271,074 crore for the year 2009-10 and it is believed that in a growing economy like India, the future is indeed full of excitement. IOCL sees itself as an ‘Energy Company‘ and are also venturing now into renewable energy sources like solar, hydrogen and bio-fuels and other sources of energy like nuclear as well. 1
- 2. In the last few years, IOCL has grown extensively in new business areas where it had no presence before and that was a challenge to have the internal talent available to run those businesses. Since it has grown in upstream and downstream, especially into petrochemicals and diversified into natural gas. And considering the core business that is refining and marketing, it has been a huge change in terms of the talent that it needed to attract and groom internally to run these diversified businesses.. IOCL faced a major challenge in terms of talent shortage, especially in areas of new businesses for it. But the challenge was overcome by equipping people with new skill sets as well as hiring new talent at various levels. And hence it has been able to build internal capabilities too over a period of time. Today, IOCL has the confidence that it has those required capabilities in it selves. 2