Indian Oil Corporation Ltd (IndianOil), India’s largest oil marketing company, is accelerating investments in digital technologies, natural gas, petrochemicals and core refining infrastructure as it prepares for the next phase of growth.
“The road ahead will undoubtedly present new challenges, but it will also create new possibilities,” said IndianOil Chairman A.S. Sahney in a letter to shareholders.
IndianOil is leveraging digital technologies, artificial intelligence, advanced analytics and automation across its value chain to transform decision-making, improve operational efficiency, enhance productivity and deliver superior customer experiences.
Digital business emerges as growth engine
IndianOil has identified digital businesses, including data centres, sovereign cloud and allied digital services, as a key future growth area.
The company is exploring collaborations with leading players in AI, cloud computing and digital infrastructure to drive innovation and create new business opportunities.
“We are building the growth engines that will define the next phase of IndianOil’s evolution,” he said.
Gas infrastructure expansion gathers pace
The company has set a target of increasing natural gas sales by 1.5 times by 2030, backed by investments across the gas value chain.
“To support this growth, we will continue to expand our natural gas infrastructure, including pipelines, City Gas Distribution networks, LNG import and handling facilities, and LNG fuelling stations, strengthening our position across the gas value chain,” he said.
Focus shifts to petrochemicals
IndianOil is also expanding its petrochemicals portfolio to diversify revenue streams and support India’s manufacturing ecosystem.
“As mobility patterns evolve globally, value-added petrochemicals will play an increasingly important role. We are expanding our portfolio with a focus on import substitution, specialty chemicals and recycled products to maximise value from every hydrocarbon molecule,” he said.
Refinery projects near completion
The company’s long-term strategy is anchored in expanding capacity across its core businesses while building future energy platforms.
“Our refinery expansion projects at Gujarat, Panipat and Barauni are in the final stages of completion and are expected to be commissioned during the current financial year. Significant investments are also being made in pipeline infrastructure to support these expanded capacities,” he said.
Pipeline network strengthens
The New Mundra–Panipat Crude Oil Pipeline is nearing completion. Through its joint venture IHB Ltd., IndianOil is also developing the 2,805-km Kandla–Gorakhpur LPG Pipeline, expected to be the world’s longest LPG pipeline.
The company is also expanding its presence in bitumen, aviation fuels, lubricants, bunkering fuels and non-fuel retail to capitalise on India’s infrastructure and mobility growth.
“As the automotive lubricants market moves towards premiumisation, we are expanding our portfolio of premium lubricants to meet evolving customer needs and further strengthen our market leadership,” he said.