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IOC works out to stay agile

Mumbai, March 10: Indian Oil Corporation (IOC) is restructuring its marketing set-up in order to speed up the decision making process in the company.

The petroleum major, which currently has a three-tier structure, is pruning it to two by phasing out regional offices in the four metros.

Now Indian Oil will have a two-tier set-up with the headquarters in the national capital and 17 state offices which will report to the head office.

Senior Indian Oil officials pointed out that the change follows McKinsey’s recommendations. IOC had appointed the leading consultants last year to dish out a comprehensive business process restructuring plan across the corporation.

The corporation has begun implementing McKinsey’s suggestions in stages and the entire exercise is expected to be completed by the middle of this year, officials said.

It is anticipated that Indian Oil will be acting on other critical suggestions to respond swiftly to customers’ needs in the fast changing business environment.

IOC sources divulged that as part of the initial restructuring around four executive directors from the regional offices will be assuming responsibilities at the headquarters.

“This is the first part of the changes in IOC. The whole objective is to speed up decision making. It will also enhance the response within the organisation,” sources said.

The corporation embarked upon this exercise at a time when retail marketing of petro products is poised to become extremely competitive, particularly with the entry of private sector majors like Reliance in this area.

This apart, several international majors could also set foot in the retail arena following the government’s decision to offload 34 per cent stake in Hindustan Petroleum Corporation to a strategic partner. The deadline for submission of expression of interest is March 17. It is expected that oil majors like Shell, Exxon Mobil, Kuwait Petroleum, Chevron, TotalFinaElf would be among others who would be interested.

On the retail front, IOC has already started the process of giving a face-lift to its outlets and plans are on the anvil to market value-added products from these.

With a 53 per cent market share, Indian Oil has a vast distribution network of over 21,000 outlets in the country. It had earlier laid a vision of being an integrated and diversified transnational, integrated energy company.

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