ONGC case study.

S.R.LUTHRA INSTITUTE OF MANAGEMENT-SURAT(750) 1
Introduction and Overview of the ONGC:
The state‐owned company Oil and Natural Gas Corporation Limited (ONGC) is India’s
largest company devoted to exploration and production (E&P). Founded in 1956, ONGC has
seen a remarkable growth in the last five decades.
In 2007‐08, ONGC group’s total production of oil and oil‐equivalent gas (o+oeg) was
about 60 million metric tonnes per annum (MMTPA) or 1.2 million barrels per day, thus
accounting for nearly 80% of India’s oil and gas (O&G) production. In 2007 Energy
Intelligence Top 100 ranked ONGC at 31 among global oil and gas companies.
ONGC’s evolution is a remarkable story of how state‐owned firms respond and adapt to
shifts in owner (government) priorities, which in turn are strongly influenced by
macroeconomic and political conditions.
Historically, ONGC has been the Government of India’s (GoI’s) trusted custodian of India’s
oil and gas reserves. As such, ONGC enjoyed a near monopoly in this sector for nearly four
decades (1955‐1995), during which good luck and easy oil elevated ONGC to stardom.
During those years ONGC also functioned as the de facto regulator of the oil and gas sector.
The oil ministry (the government ministry in charge of the sector) depended heavily on
ONGC for coordinating activities in the sector. But changing economic priorities and soaring
domestic demand for oil and gas in India have significantly changed the dynamic of ONGC’s
relationship with the government in many ways. Through a series of reforms since the mid

1990s, the Government of India has increasingly tried to maintain an arm’s length
relationship with ONGC.
ONGC is exposed to more competition in the sector than ever before and it has also lost its
regulator status, which is now a separate arm within the government. This paper attempts to
unpack the dynamic of the government‐ONGC relationship. Focusing specifically on how
government ownership and control has influenced ONGC’s performance and strategy, this
paper makes four main arguments.
Case Summary:
Oil and Natural Gas Corporation Limited (ONGC) is establish on June 23, 1993 an Indian
public sector petroleum company. It is a fortune global 500 company ranked 335th and
contributes 77% of India’s crude oil production and 81% of India’s natural gas production. It
is the highest profit making corporation of india. It was set up as a commission on August 14,
1956. Indian government holds 74.14% equity stake in this company. ONGC is the flagship
company of india; and making this possible is a dedicated team of nearly 40000 professionals
who oil round the clock.
History, Growth and Development of the ONGC:
ONGC was set up under the visionary leadership of Pandit Jawahar Lal Nehru, going against
the wisdom of the then multinational oil companies operating in the country, who had almost
written India off as a “Hydrocarbon Barren” country. Pandit Nehru reposed faith in Shri
Keshav Dev Malviya who laid the foundation of ONGC in the form of Oil and Gas division,
under Geological Survey of India, in 1955.
Over 50 years of its existence ONGC has crossed many a milestones to realize the energy
dreams of India. The journey of ONGC, over these years, has been a tale of conviction,
courage and commitment. ONGCs’ superlative efforts have resulted in converting earlier
frontier areas into new hydrocarbon provinces. From a modest beginning, ONGC has grown
to be one of the largest E&P companies in the world in terms of reserves and production.
Today, Oil and Natural Gas Corporation Ltd. (ONGC) is, the leader in Exploration &

Production (E&P) activities in India having 72% contribution to India’s total production of
crude oil and 48% of natural gas.
Oil and Natural Gas Corporation Limited was largest oil exploration and production (E & P)
company of India with market share of 84% of crude oil and gas production, with license of
57% petroleum exploration. ONGC was first to achieve Rs.100 billion net profit in corporate
history of India.
Petroleum, crude natural gas, liquefied petroleum gas (LPG), Kerosene and Petrochemical
Feedstock’s are major products of ONGC. ONGC Was Ranked 260 in Business Week’s
Global 1000 list of the World’s top companies by market value in 2003-2004.
ONGC faced decline of crude oil and gas production in mid-1990s which it tried to cover up
by acquiring foreign oil equity through its subsidiary ONGC Videsh Limited (OVL).
Acquisition of Mangalore Refinery and Petrochemicals Limited (MRPL) made ONGC First
integrated Oil Company in India.
To avoid stagnation of core business ONGC planned related diversification and unrelated
diversification which was vanished by government of India (GoI).
Phase – I (Till 1990)
Before independence there were two companies that are Assam Oil Company and Attock Oil
Company, which were doing oil exploration in northwest and northeast in India. After
independence government of India felt importance of oil industry for industrialization and in
1950s private companies entered into industry but they haven’t explored offshore region.
In mid-1950s government decided to explore oil and natural gas and at the end of 1955 Oil
and Natural Gas Directorate was formed under Ministry of Natural Resources and Scientific
Research. Soon body provided new status and power to handle exploration but it was under
GoI.
ONGC began work and established new oil province in Cambay of Gujarat. In 1970s ONGC
discovered rich oil source in Bombay High, over five billion metrics tons.

Phase II – (1990 - 2000)
Government of India adopted a policy of economic liberalization in early 1990s, with core
sector and petroleum sector also gets deregulated. As a result ONGC reorganized as company
under Companies Act, 1956 in 1994 and all businesses transferred to Oil and Natural Gas
Corporation Limited.
In year 2000 ONGC’s oil production reduced substantially and it realized that they relying on
their core business heavily, to overcome this they have to diversify in other new businesses.
In year 2000 production of ONGC was noted as 25.05 million metric tons.
ONGC found that reason for their failure in 1990s is their dependency on outdated and
obsolete technology. It also weighed down by corporate tax and interest on them using 1990s.
At that time they are having huge cash reserves and they paying substantial amount as
interest on foreign loans.
Phase III – (2001 onwards)
From year 2001 onwards significant developments starts in ONGC, in year 2002 ONGC was
granted to market transportation fuel on condition and to do this, ONGC acquired 37.39%
equity share in Mangalore Refineries and Petrochemicals Limited (MRPL) from the AV Birla
(AVB) Group. It also diversified in refining and retaining business. In these phase they
focuses on vertical integration and future growth plan As well as human resource
development and financing restructuring.
 Vertical integration
 The Growth plan
ONGC adopted some technologies namely Increased Oil Recovery (IOR), Enhanced Oil
Recovery (EOR) and SCADA (Supervisory Control and Data Acquisition).
ONGC also implemented Enterprise Resource Planning (ERP) system which covered all
aspects of management information system. It also redeveloped in 2001 under name
‘Promise’.
 Human Resource Development:

To create highly motivated, enthusiastic and self-driven work force ONGC developed
many result oriented incentive and reward schemes, some of them are Productivity
Honorarium, Quarterly Incentive Scheme, group incentives recognition, etc.
 Financial Restructuring:
ONGC prepaid their foreign loan from reserves and become zero debt firm and
remain cash is used to acquire technology. These resulted at same time they face
global competition.
 Deregulation:
Deregulation helped industry but ONGC’s fields were aging and their production is
becoming flat compared to previous years and their revenue also declined in that year.
 Future Plans:
ONGC had planned for forward integration in gas petrochemicals and in power sector.
ONGC announced new plants set up in Dahej, Gujarat and Mangalore, Karnataka.
Major decision of government affected ONG must is of no diversification in unrelated
sector and continuing with their core business by ONGC.

Case Analysis
ONGC is having core competency in oil exploration and production and they enjoys 84%
market share in India crude oil gas production.
ONGC invested in MRPL and became first integrated oil company in India. But in 1990s and
onwards company faces many problems and to overcome different problems they have used
different strategies.
In early 1990s GoI’s policy of liberalization reorganized company and family distribution in
company changes from to fall government holding to public sector investment.
Table 1 ONGC’s Equity Distribution (April 2004)
Major Stakeholder Share %
Government 74.1
Public 13.9
IOC 9.6
GAIL 2.4
Source: www.ongcindia.com
Table 1 shows equity distribution of ONGC which helped government to raise fund and
disinvestment their fund from ONGC.
In late 1990s, ONGC felt problem of obsolete technology and due to this their sales has
declining in that time overcome this problem that have adopted two strategies on different
time.
Firstly they started investing into MRPL in different proportion but when MRPL failed to
performed they acquired MRPL for their advance technology so that they can achieve Euro II
standards.
Second strategy was in early 2000s they employed Increased Oil Recovery (IOR), Enhances
Oil Recovery (EOR) an SCADA. They also adopted modern technology like virtual reality
Interpretation centers and ERP system which covered all aspects of MIS.

They also acquired bets possible system for data exploration, compilation, monitoring, and
processing. Analysts claimed that ONGC was over-exploiting reserves and from suggestion
of consultants ONGC cut down sales by 25% of Bombay High Oil Wells.
ONGC’s strategy of vertical integration by acquiring MRPL has given them advantage of
technological development MRPL has given several advantages like retail business, tax
concessions, savings in investment, etc.
After technological upgrades vertical integration ONGC plans for growth through new
domestic production enhancement programme. For year 2004-2005 approximately Rs.100
billion were planned to invest in capital expenditure and they also planned to redevelop north
and south projects of Bombay High.
ONGC invested in Capital Vietnam, Sachalin (Russia) and in Sudan to expand its global
operations through OVL.
In growth plan ONGC Considered development of Human Resource and for that they have
planned several incentive schemes and for skill development they have established institute
called ONGC Academy.
ONGC considered financial restructuring for cost reduction and operation efficiency. They
paid their foreign loans through idle reserves and invested in better technology which reduced
their tax burden. These measures resulted into efficient operations and increase in production
in year 2001.
Table 2 ONGC Production
ONGC Crude Oil Production
2001-2003 (millions of barrels)
Year
Type 2001 2002 2003
Onshore 137 132 36
Offshore 63 65 144
Overseas - - 1
Total 200 197 208

ONGC Natural Gas Production
2001-2003 (billions of cubic meters)
Year
Type 2001 2002 2003
Onshore 20 20 20
Offshore 6 6 6
Overseas - - 0.1
Total 26 26 26.1
Decision of government of deregulating oil industry in 2002 has given independency of price
decision making to ONGC, but simultaneously it increased competition as the international
players are entering into the market.
ONGC has planned to establish new plants at Dahej, Gujarat and Mangalore, Karnataka and
agreement of establishing Special Economic Zone was entered by ONGC With respective
State Governments.
ONGC has planned relative diversification into areas such as LNG marketing, diesel, naphtha
and kerosene. And they have also planned unrelated diversification by investing in Insurance
and shipping industry.
Petroleum Ministry had formerly draft order that ONGC should focus on its core that is
Exploration and Production business. These decision of Petroleum Ministry vanished
ONGC’s decision of diversification in to unrelated sectors to reduce dependency on one
business.

Issues:
» Examine the growth strategy of a public sectoroil exploration and production
company.
First, ONGC exists, just as with NOCs in many other countries, because of a legacy of
suspicion about outsiders. It performed well when it was tasked with things that were not that
difficult and when it had help for the more difficult ventures, such as frontier E&P and
development.
Two factors were critical in the Indian government’s decision to put a state‐owned company
(ONGC) in charge of India’s O&G exploration and production (E&P) efforts: the
government’s socialist bent; and fears of opportunism of the international oil companies
(IOCs). In the years following India’s independence in 1947 a large fraction of India’s
production was under government ownership, reflecting the strong bias of the GoI for a
Socialist‐like development of India.
Additionally, by the mid 1960s GoI’s fears of possible opportunistic behavior of the IOCs
seemed to be justified, as there was increasing evidence of unfair products pricing
internationally by the IOCs. The past baggage of imperial control and fears of opportunistic
behavior of the IOCs convinced GoI to have government ownership of oil and gas E&P.
The subsequent years, from 1975 and 1990, were ONGC’s golden era. Production went up
from 4.5 MMT (O+OEG) in 1974‐75 to nearly 48 MMT (O+OEG) in 1989‐90. Starting
barely from 450 employees at formation in 1956, ONGC swelled to over 47,000 employees
by 1990.
Second, ONGC has run into trouble as it matured, and the roots of its troubles are mainly in
its interactions with the goal and secondarily in its management. The years of expanding
production masked severe and growing performance problems emerged at ONGC.
Among other problems, financial profligacy, organizational and planning difficulties,
declining reserves, and the deteriorating health of producing fields brought much flak and
negative attention to ONGC in the 1990.

Third, a slew of reforms instituted since the mid 1990s have fundamentally changed the
landscape of the E&P sector in India and the dynamic of government‐ONGC relationship.
Targeted at improving corporate governance, enhancing competition in E&P, and eliminating
price controls, those reforms have had a mixed impact on ONGC’s performance and strategy.
They also highlight the difficulties the GoI has had in encouraging higher efficiencies in
ONGC and the oil and gas sector..
ONGC’s production:
Figure shows that, ONGC’s major exploration areas (basins) and producing areas (assets). In
2007‐08, about 70% of ONGC’s crude oil and 75% of natural gas production came from
offshore areas, mostly off the western coast of India.
The GoI set up ONGC in 1956 to lead India’s indigenous E&P efforts, but the breakthrough
for India’s indigenous oil plans and ONGC came from Russia. Russia transferred technology
and equipment to kick start ONGC’s exploration work. In the 1970s ONGC and its Russian
partners began exploration in offshore areas and soon found the giant Mumbai High field in
February 1974.

» Study the internal and external factors that contributed to the growth of ONGC.
The main three internal factors contributing to the growth of ONGC are
1. Technology Upgrades
2. Human Resources Development
3. Financial restructuring
1. Technology Upgrades:
ONGC realized during the late 1990s that outdated and obsolete technologies were not only
leading to high operation and maintenance costs but also was acting as an impediment to its
high growth plans. To enhance the recovery quantities from basins which were near their
maturity phase, they employed technology-enabled measures such as Increased Oil Recovery
(IOR) and Enhanced Oil Recovery (EOR). Enhanced Oil Recovery is a generic term for
techniques for increasing the amount of oil that can be extracted from an oil field. Using
EOR, 30-60 %, or more, of the reservoir's original oil can be extracted compared with 20-
40% using primary and secondary recovery.
Another modern technology used was SCADA (Supervisory Control & data Acquisition),
which facilitated around-the-clock monitoring and an automated sensory system for each oil
well.
ONGC also invested in developing Virtual Reality Interpretation Centers with applications in
exploration, drilling and engineering. Other measures included horizontal drilling, side-
tracks, in-fill drilling, water injection, chemical & thermal methods to enhance oil recovery.
Extensive investments were also made in IT, covering Enterprise Resource Planning (ERP),
Control Systems and Communication Networks.
2. Human Resources Development:
As part of ONGC’s Vision & Mission statement, the HR policy was aimed to “Foster a
culture of trust, openness and mutual concern to make working a stimulating and challenging
experience for our people”. To overcome the problem of overstaffing and procedural delays,
ONGC revamped all internal processes to facilitate faster file processing. It also redesigned
its appraisal system by introducing a new result oriented incentive and reward scheme like

the Productivity Honorarium Scheme, Quarterly Incentive Scheme, Group incentives for
Cohesive team working and reward and recognition scheme.
ONGC also established the Institute of Management Development (IMD), later named
ONGC academy. It had an ISO 9001 certification for designing parameters to measure the
performance of human resources, succession planning, work climate and work culture
analysis, managing change and other areas of research related to management development.
Seminars, Conventions, Workshops, interactive brain-storming sessions were introduced to
involve all the employees at regular intervals. In 2001, ONGC launched the SHRAMIK
Project (Integrated System of Human Resource Automated management Information). This
was an integrated, online HR system where all transactions were done through computers.
This new system was expected to help streamline systems and procedures, minimizing
processing time and administrative costs, improving level of employee satisfaction and
enhancing the quality of decision making.
3. Financial Restructuring:
Here again, ONGC strived to improve its operational efficiencies and reduce costs. ONGC
had huge cash reserves on the one hand and huge interest outgo due to foreign debt on the
other hand. ONGC thus took steps to make itself a zero-debt company. The excess cash was
then employed to acquire better technology which would support its growth momentum.
ONGC was also entitled to huge tax-concessions after its takeover of loss making MRPL,
which was a strategic move to acquire assets which would not only have taken years for
ONGC to develop otherwise but also reduce the overall cost for acquisition of such assets.
Related functions such as Treasury management, Budget Control, Expenditure Monitoring
and Reporting were also streamlined. As a result of all these steps by ONGC and the resultant
streamlined operations, production output increased from 24.7 million tons in 2001 to 26
million metric tons in 2003.
The main external factor that contributed to growth of ONGC was Deregulation of the
Indian oil industry.
1. Deregulation:
After the Government of India (GoI) deregulated the Indian Oil industry from April 1, 2002
by doing away with APM, ONGC was in a very strategic position where it could leverage on

its strong investment base, superior infrastructure and extended distribution network. As a
result of tyhis deregulation, ONGC reported a 70% jump in net profits over the previous year
and an increase in revenue by 53.4% in 2002-03 over the previous year.
2. Strengths and Opportunities.
The company is cash rich, and has very low levels of debt. It has more than Rs 22000 crores
in cash, as per its latest Balance Sheet. This means that it can go on an acquisition spree. Its
foreign arm, ONGC Videsh (OVL) is acquiring energy assets in foreign countries in the
Middle East, Latin America, Asia and Africa. This cash is a significant asset; it means that it
can obtain cheap financing from lenders to fund its acquisitions.
Having financial resources also means that it can foray into renewable sources of energy such
as solar and wind. The company obviously does not want to put all its eggs in the exhaustible
fuel basket, and wishes to diversify and thus ensure long term relevance.
The company is a financial behemoth and can afford to throw its weight around. Witness the
recent acquisition of UK based Imperial Energy Ltd. ONGC outbid companies from many
other countries, including China.
The case under analysis mentions that ONGC has implemented a slew of technological
improvements, adding high technology assets and processes to increase productivity. A
marked improvement in the financial situation of the company has enabled it to invest wisely
in improving and streamlining processes and enhancing capability.
The company also needs to manage its talent effectively and stem attrition to private
companies. Towards this end the company has instituted several measures to increase
employee satisfaction and improve talent (as detailed in the case). The company is also
providing perks and other benefits to the employees in an attempt to curb attrition.
In the wake of the finalization of the nuclear deal between India and the US, ONGC has
announced that it will start surveying for uranium deposits in India, to fuel the nuclear energy
boom that is surely to come in the near future.
ONGC also is the country’s biggest Oil (77%) and Natural gas (81%) producer. The company
has licenses to explore huge swathes of India’s surface for oil and gas deposits. It also owns
and operates more than 19,000 kms of pipelines in the country (both offshore and sub-sea).
Until recently the company was the largest corporation in India, in terms of market cap. The
company controls Bombay High oilfields, which produce more than 38% of all domestic
crude.

Having acquired MRPL, the company is in a good position to diversify into downstream
activities. In fact ONGC has set up a test retail outlet in Mangalore under its Retail arm
OVaL (ONGC Values). The company will sell finished petroleum products under the brand
name RelaxTop. This means that the company is secure from the cyclical nature of oil prices.
3. Weaknesses and Threats:
ONGC is owned by the Indian government. The government decides where the company can
diversify and controls its sphere of influence and control. Witness the government vetoing
ONGC’s intention to venture into shipping and insurance. The government is the owner and
the decision maker in most matters. The company has tried its best to professionalize and has
succeeded to a large extent. However, the government has placed restrictions as to what areas
the company can operate in. ONGC is pretty much dependant on one industry, and its oil
fields are giving declining yields of oil. The company needs more flexibility in terms of its
areas of operations and needs to diversify.
ONGC is affected by the ups and downs of the international prices of oil. Indian oil
companies like HPCL and BPCL have to sell finished petroleum products at subsidized rates,
i.e. they have to bear losses (under recovery). ONGC has to compensate them for the under
recoveries. (ONGC gives these companies discounts in the purchase of crude oil, LPG etc). If
international prices of oil rise, then under recoveries are high. The price of crude oil touched
nearly USD 150 per barrel in the past few months, and the under recoveries hit the roof.
Because of increase under recoveries, ONGC had to put its retail venture OVaL on the back
burner for the time being.
ONGC is also prone to having its employees being poached by private companies.

» Critically analyze the vertical integrationstrategyof ONGC by entering
into refining and retailing businesses
One cannot be against "core competence", especially during periods when crude oil prices are
skyrocketing. For, it's during this time that upstream oil companies can make huge profits by
doing what they know and do best, that is, exploring and prospecting for oil and gas, and
producing them.
But that, at best, is a short-term approach. In the long run, it is better for an oil company to
vertically integrate upstream, midstream and downstream sectors — i.e., oil and gas
exploration, refining of crude to derive various petroleum products, and marketing them.
And for success stories, one needn't look too far. The world's seven largest oil companies
known as the Seven Sisters were vertically integrated. This made corporate sense and
provided sustained profits over a long-term period. The strength of vertical integration lies in
sustained profitability of the company.
For example, when crude prices are high, the upstream wing makes the highest profit, while
the refining wing has more or less fixed margins on which they operate. The other profit
centre is, of course, constituted by the retail marketing outlets.
When crude prices are low, then the growth of the upstream wing is stunted, the refineries
make the usual margins of profit, but the retail outlets become the most important profit
centres. This kind of flexibility is available only in a vertically-integrated company.
In my view, companies should concentrate and develop expertise in all three of the above
areas. The reason being that the oil and gas produced by a company can only be used after it
undergoes value-addition through refining. Subsequent value-addition to refined products can
be made through an efficient marketing network. Thus, there is a natural synergy between
these three activities.
However, it may not be possible to support vertical integration to the extent that an oil
company decides to diversify into power generation, civil aviation, shipping, etc. One oil
company in Indonesia tried this and failed miserably.

» Examine the latestdiversification plans of ONGC to enter insurance,
powergenerationand shipping businesses andidentify synergies, if any,
with its core businesses
The case describes the growth strategy and diversification plans of the Government owned Oil
and Natural Gas Corporation Limited (ONGC), the largest oil exploration and production
(E&P) company in India. ONGC has near monopoly in India's oil E&P industry producing
nearly 90 percent of the country's crude oil and natural gas.
Till the late 1990s, the company was mainly confined to upstream activities of E&P. In order
to reduce risks inherent in confining to one activity and to achieve financial stability and
steady growth, ONGC acquired a major equity stake in Mangalore Refinery and
Petrochemicals Limited so as to enter the down stream activities of refining. With this, ONGC
became the first integrated oil company in India.
The case examines the benefits and drawbacks of oil E&P Company entering into refining
and retailing businesses. The case also discusses the possible benefits and disadvantages of
ONGC's plans in 2004 to enter insurance, power generation and shipping businesses as part
of its diversification program.

» Chalk out a future growth strategyfor ONGC
 To improve productivity and financial performance ONGC focused on Human
Resource Development and financial restructuring.
 ONGC had planned for forward integration in gas petrochemicals and in power
sector. ONGC announced new plants set up in Dahej, Gujarat and Mangalore,
Karnataka.
 ONGC planned to enter into areas like LNG marketing, diesel, naphtha and key
resources. They also announced entering into insurance and shipping business.
 Government of India plans to merge with HPCL and BPCL and IOC with oil
India, but because of refusal of HPCL and BPCL plan were gets delayed.
 Major decision of government affected ONG must is of no diversification in
unrelated sector and continuing with their core business by ONGC.
 ONGC adopted some technologies namely Increased Oil Recovery (IOR),
Enhanced Oil Recovery (EOR) and SCADA (Supervisory Control and Data
Acquisition).
 ONGC also implemented Enterprise Resource Planning (ERP) system which
covered all aspects of management information system. It also redeveloped in
2001 under name ‘Promise’.

» Gain insights into the oil and energyindustry in India
ONGC – Oil & Natural Gas Corporation of India; IOCL – Indian Oil Corporation Ltd
India is the world’s fourth-largest energy consumer The country has 5.6 billion barrels of
proven oil reserves, with an average oil production of 0.8 mbpd (2012) India has 1,330
bcm of gas reserves and produced 47.6 bcm of gas in 2012 Indian oil and gas sector
Midstream segment – Storage and transportation Downstream segment – Refining,
processing and marketing.
• IOCL operates a 11,163 km network of crude, gas and product pipelines, with a
capacity of 1.6 mbpd
• This is around 30 per cent of the nation’s total pipeline network
• IOCL is the largest company, operating 10 out of 22 Indian refineries
• Reliance launched India’s first privately owned refinery in 1999 and has gained a
considerable market share (28 per cent) Upstream segment - Exploration and production
• The upstream segment is dominated by the state-owned ONGC
• It is the largest upstream company in the exploration and production (E&P) segment,
accounting for approximately 62 per cent of the country’s total oil output.
Conclusion:
 The Oil and Natural Gas Corporation Limited (ONGC) was the largest oil exploration
and production (E&P) company in India. The company enjoyed a dominant position
in the country's hydrocarbon sector with 84 per cent market
share of crude oil & gas production. Around 57 per cent petroleum exploration
licenses in India for over 588 thousand sq. km belonged to ONGC.
 ONGC's major products included petroleum, crude natural gas, liquefied petroleum
gas (LPG), kerosene and petrochemical feedstock.

 The company was the first to achieve Rs 100 bn net profits in the Indian corporate
history. For the fiscal year ended 2002-03, the company reported gross revenues of Rs
353.872 bn and net profit of Rs 105.293 bn. With market capitalization of US$ 15 bn
 ONGC was ranked 260 in Business Week's Global 1000 list of the world's top
companies by market value, for 2003-04.
 Since the mid 1990s, ONGC had faced the problem of declining crude oil and gas
production.
 The company made efforts to consolidate its position in the business by acquiring
foreign oil equity through its wholly owned subsidiary, ONGC Videsh Limited
(OVL).
 OVL was formed to help ONGC secure a strong foothold in the international oil
market. With the acquisition of Mangalore Refinery and Petrochemicals Limited
(MRPL), ONGC became the first integrated oil company in India.
 ONGC Also plan to go into downstream activities such as LNG marketing, diesel,
naphtha and kerosene.
 O.N.G.C LTD is perceived to be the leader in oil production industry. O.N.G.C has a
very efficient and professional management team. O.N.G.C being an international
company has sufficient resources and capital to invest. O.N.G.C has ISO-9001 & ISO
14001 registration.
 O.N.G.C facing difficulties to produce oil from aging reservoirs.
 Concludes that O.N.G.C has achieved its entire desire goal with its hard work and
unique idea. O.N.G.C is having a good manpower and provides good facilities to their
employees. The majority of the company's profitability ratios show an increasing
trend.
 The performance of the company can be considered as satisfactory. As per my
opinion that O.N.G.C LTD has a wide scope to develop in coming years.

ONGC case study.

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