GAS AUTHORITY OF INDIA LTD

1. RAJAT SINGLA

2. 
 GAS AUTHORITY
OF INDIA LTD.
GAIL ???

3.  Contribute one – fourth of total GDP
 Make in India Initiative
 target of increasing the contribution of manufacturing
output to 25 per cent of Gross Domestic Product (GDP)
by 2025, from 16 per cent currently.
 India has become one of the most attractive destinations
for investments in the manufacturing sector
Manufacturing sector

4. 
 GAIL (India) Ltd was incorporated in August 1984 as a
Central Public Sector Undertaking (PSU).
 Largest state-owned natural gas processing and
distribution company in India.
 Business segments: Natural Gas, Liquid
Hydrocarbon, Liquefied petroleum
gas Transmission, Petrochemical, City Gas Distribution,
Exploration and Production, GAILTEL and Electricity
Generation
Introduction

5. 
 Conferred with the Maharatna status on 1 Feb 2013.
 The 131st position among India's Most Trusted
brands according to the Brand Trust Report 2014.
 GAIL is a pioneer in City Gas Distribution (CGD)
business in India.
Introduction

6. 
 LNG : liquefied natural gas.
 Petrochemicals
 City gas distribution
 Gail tel
 Power
Operations of GAIL

7. 
 B.C. Tripathy- Chairman & Managing Director
 M ravindran - Director - Human Resources
 Ashutosh karnatak - director projects
 Subir purkayastha – director finance
 Anuradha sharma chagti – part time director
Management of GAIL

8. 
 ‘Best Performing Company’ (Maharatna category) at the
India Today PSU Awards 2014
 Top Indian company in the ‘Gas-Processing,
Distribution and Marketing’ Sector for the Dun &
Bradstreet Corporate Awards 2014
 GAIL C&MD, Shri B C Tripathi, conferred the prestigious
‘Best LNG Executive Global Award’ for 2013 at CWC’s
14th World LNG Summit being held at Paris
AWARDS

9. 
 GAIL has allocated an annual budget of 2% of the previous
year's profit after tax for CSR activities.
 ₹575 million (US$8.7 million) for implementation under the
seven thrust areas, which include Community Development,
Infrastructure, Healthcare/Medical, Skill
Development/Empowerment, Educational Aids, Environment
Protection, Drinking Water/Sanitation.
 GAIL is also supporting integrated livelihood programs in
villages especially for small and Marginal farmers
 GAIL is providing vehicles for distribution of Mid-Day Meal for
underprivileged children .
Corporate social
responsibility

10.  To achieve international standards of excellence in all aspects of
energy and diversified business with focus on customer delight
through value of products and services, and cost reduction.
 To maximize creation of wealth, value and satisfaction for the
stakeholders.
 To provide technology and services through sustained Research
and Development.
 To foster a culture of participation and innovation for employee
growth and contribution.
 To cultivate high standards of business ethics and Total Quality
Management for a strong corporate identity and brand equity.
Mission

11. 
Be the leading company in Natural Gas and Beyond,
with Global Focus, Committed to Customer Care, Value
Creation for all Stakeholders and Environmental
Responsibility .
Vision

12. 
 To serve the national interests in Gas and related sectors in
accordance and consistent with Government policies.
 To further enhance marketing infrastructure and reseller
network for providing assured service to customers
throughout the country.
 To earn a reasonable rate of return on investment.
 To inculcate strong 'core values' among the employees and
continuously update skill sets for full exploitation of the
new business opportunities.
OBJECTIVE

13. 
Strength:
1) India's consumption of energy has risen faster in the
recent years and is expected to grow further.
2) Top company in india in this sector.
3) Strong holding on existing as well as new customer.
4) Gas transmission : 78%
Gas marketing : 70%
SWOT Analysis

14. 
Weakness:
1) GAIL should run a “Natural Awareness program” to
make aware about different uses of natural gas.
2) Indian Government having ownership control may
have an adverse effect on GAIL's operations and may
further impact its growth.
SWOT Analysis

15. 
Opportunity:
1) India's consumption of energy has risen faster in the
recent years and is expected to grow further.
2) More & more new customer & major private players are
joining hands with GAIL
3) GAIL laying more new pipeline.
.
4)Presence in Polymer sector
SWOT Analysis

16. 
Threats:
1.Company faces stiff competition across different
market segments it serves
2.Drilling natural gas wells, including development
wells, involves numerous risks.
SWOT analysis

17. 
PEST analysis helps is the analysis of external factors .
 Political factor.
An effective way in which government believe would
encourage the industry to limit the amount of pollution
they create is the carbon tax charge.
PEST Analysis

18. 
 Economic factor:
 If oil and gas price continue to increase this could
change the balance of trade between countries and
exchange rate.
 decline in the balance payment :
of net oil-importing countries thereby putting
import become more expensive and export less
valuable which leads to a drop in national income
PEST Analysis

19. 
 Social factor:
1) More and more people are moving to solar energies
instead of using fuel or gas, this is called the
"GREEN CULTURE".
2) The burning of oil as fuel creates destruction,
whereby it contributes to such problems as global
warming and acid rain.
PEST analysis

20. 
 Environmental factor :
 Projects related to Rain water harvesting, water
recharging, Ground water reuse systems, Provision
of Bio-Gas Stoves have been widely supported by
GAIL.
 Innovative Waste Management and Livelihood
Generation Program in GAIL .
PEST Analysis

21. 
Porter’s diamond

22. 
 Oil and gas is the dominan source of energy and in
some sectors like transportation even irreplaceable.
 Coal is already well established in the Indian market
place but other alternative technologies are still far
too inefficient to compete over the next decade
 the threat of other source of energy will remain low.
Threat of substitute

23. 
 In oil and gas sector since the entry barrier are very high,
as a result of which only few players are present in the
market.
 they form huge cartels which results in low Industry
rivalry
 Entry of international companies like Hardy Oil & Gas,
Santo, and players like Newbury, Cairn Energy, Petronas
& Niko Resources into India is a welcome change to break
monopoly.
Industry rivalry

24. 
 . Though oil industry is expected to grow in the
future, however, there is going to be an oversupply
of rigs as the number of rigs is likely to increase to
811.
 This gives the buyers high bargaining power.
Power of buyers

25. 
 Oil & Gas sector have small suppliers from various
industries as a result of which the power in hands of
supplier is medium.
 If the demand for oil is strong then so is the demand
for rigs which leads to increased power of suppliers.
 If the demand is low then it gives the drillers a better
bargaining power.
Power of suppliers

26. 
 The government today granted Maharatna
status GAIL, a development which will provide
them greater financial and functional autonomy and
also ensure better valuation for share.
 A Maharatna firm can take investment decision of
up to Rs 5,000 crore .
Government

27. 
0
5000
10000
15000
20000
ONGC GAIL OIL india IGL
NET PROFIT
NET PROFIT
Comparison with
competitor

28. 
0
1000
2000
3000
4000
5000
Mar'15 Mar'14 Mar'13 Mar'12 Mar'11
Net Profit
Net Profit
PROFIT & LOSS

29. 
0.00
5,000.00
10,000.00
15,000.00
20,000.00
25,000.00
30,000.00
35,000.00
40,000.00
NET Assets and liabilities
NET Assets and
liabilities
BALANCE SHEET