PREPARED BY: RAJAT MAINI SHYSTA GOYAL BHUVNESH GAUTAM AASHISH KAPOOR RAJ YADAV MOHIT KUMAR

Oil Industry In India

• World’s fourth-largest energy consumer.• Fourth-largest consumer of oil and petroleum products.• Sixth-largest LNG importer.• Total crude oil production was 38.0 mmt during FY12

Upstream Segment -

Exploration And

Production

Downstream Segment – Refining,

Processing AndMarketing

• 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%).

Midstream Segment –

Storage And Transportatio

n

• IOCL operates a 11,653 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

• The upstream segment is dominated by the state-owned ONGC

• It is the largest upstream company in the exploration and production (E&P) accounting for approximately 62% of the countries total oil output.

Oil Industry In India

Major Players In Indian MarketCOMPANY

Ownership(per cent)

FY13 Turnover(USD Billion)

IOCL 78.9 % state owned 84.7

RELIANCE INDUSTRIES

Public Listed 73.0

BPCL 54.9 per cent state- owned 44.5

HPCL 51.1 per cent state- owned 39.7

ONGC 69.2 per cent state- owned 29.7

OIL INDIA LIMITED

68.4 per cent state- owned 1.8

GAIL INDIA LIMITED

57.3 per cent state- owned 9.4

Products of Essar Oil

Product• LPG• Superior Kerosene Oil• Aviation Turbine Fuel• Furnace Oil• Bitumen Grade VG30• Petcoke• Sulphur• Petrol• Diesel

ApplicationDomestic FuelDomestic FuelCommercial Airlines, DefenseDG set, boiler, Furnace, marineProcess industrialIndustrial fuelChemicals industryAutomotive FuelAutomotive Fuel

Places

• Essar pioneered franchisee-owned, franchisee-operated model.

• Pan-India network of 1,600 retail stations • Tie-ups with oil marketing companies has provided more

than 30 supply stations.• 22 CNG facilities at its retail outlets in Gujarat• 4 Auto LPG facilities in its retail outlets in Maharashtra• Refineries at Vadinar, Stanlow and Kenya

Major Competitors

• RELIANCE PETROLEUM LIMITED (RPL)• INDIAN OIL CORPORATION(IOC)• INDIAN PETRO CHEMICALS LIMITED (IPCL)• GUJARAT STATE PETROLEUM CORPORATION(GSPC)• CHENNAI PETROLEUM CORPORATION

LIMITED(CPCL)

Major Alliances• In Non- Fuel RetailExide, SERVO, CASTROL, ELF, J K Tyres, Bosch, SBI , Western Union Money Transfer, Amul, Café Coffee Day, Dinshaws, Heritage Foods, Pepsi, Biryani House, National Seeds Corporation.

• Infrastructure sharing allianceBharat Petroleum Corporation Ltd (BPCL), Hindustan Petroleum Corporation Ltd (HPCL) and Indian Oil Corporation (IOCL)

• Tie-ups to add multi fuel optionsGSPC, GAIL GAS, Sabarmati Gas, Adani Gas and Gujarat Gas Corporation for selling CNG, besides tie-ups with MGL and Aegis Logistics for selling Auto LPG in its outlets.

SWOT Analysis

Strength

1. Strong backing by Essar 2. Network of 1400 retail outlets and more than 250 retail outlets 3. State of art technologies at refinery4. First Indian private sector company to enter petro retailing5. Very active in CSR activities6. Strong and dedicated workforce

Weakness

1. Company operations are bound by government regulations and fluctuations2. increasing cost

Opportunity

1. Demand-Supply gap in India2.Increasing natural gas market globally3. An increase in demand for fuel

Threats

1.Competitors2. Competitors receiving subsidies on taxes by central and state government3.Economic instability and fluctuations in India's policies

ESSAR OILS LTD.

HRD MISSION

TO TRANSFORM HUMAN RESOURCES FROM EMPLOYEE, TO MANAGEMENT PARTNER IN ACHIEVING BUSINESS

GOAL. PROACTIVELY CREATE ENVIRONMENT

ESSAR LEADERSHIP VALUES1.INTEGRITY OF ALL TIMES.2.SATISFACTION TO INTERNAL & EXTERNAL CUSTOMERS.3.FACILITATE ALL ROUND EXCELLENCE.4.PROMOTE QUALITY.5.CONTINUOUSLY INNOVATE AND CREATE.6.EXPLORE GROWTH OPPORTUNITIES IN NEW TECHNOLOGIES.7.CONSTANTLY FOCUS ON COST REDUCTION.8.WORK WITH “POSITIVE ATTITUDE”.

ORGANISATION STRUCTURE• TECHNICAL SERVICES & PROCESS

• K BALASUBRAMANIAN-SENIOR VICE PRESIDENT• TECHNICAL SERVICES• MR S S DAS-SENIOR VICE PRESIDENT• COMMISSIONING IN CHARGE• EION TURNBULL• OPERATION• MR N VENKATRAMANI• HSE & FIRE FIGHTINING• MR PRAKASH PAI-VICE PRESIDENTACCOUNTS• MR P R ASHOK-VICE PRESIDENT• COMMERCIAL• MR S L RAVI-VICE PRESIDENT• PUBLIC RELATION & CDC• MR PRASHANT PANDYA-VICE PRESIDENT

LEVELS OF MANAGEMENT

LEVEL DESIGNATIONM – 01DIRECTOR M – 02SENIOR VICE PRESIDENTM – 03VICE PRESIDENTM – 04GENERAL MANAGER M – 05JOINT GENERALMANAGER M – 06DEPUTY GENERALMANAGER M – 07 MANAGER M – 08DEPUTY MANAGERM – 09SENIOR OFFICER M – 10OFFICER M – 11JUNIOR OFFICER T – 1MANAGEMENT TRAINEET -2GRADUATE ENGINEER TRAINEE

ORGANISATION CHARTCHAIRMANVICE CHAIRMANDIRECTORSRESIDENT DIRECTORSCHENNAI NEW DELHI GUJARAT NEW YORKPRESIDENTCORPORATE AFFAIRSHEADCORPORATE COMMUNICATIONHEADLEGALHEADFOREX & TREASURYHEADCORP RISK & INSURANCE MANAGEMENT

RECRUITMENT

INTERNAL RECRUITMENT TRANSFER PROMOTION PRESENT EMPLOYEE EMPLOYEE REFFERALS FORMAR EMPLOYEES PREVIOUS APPLICANTS

EXTERNAL SOURCE ADVERTISEMENT EMPLOYMENT EXCHANGES CAMPUS RECRUITMENT CONSULTANTS CONTRACTORS COMPETITORS MERGERS &

ACQUISITIONS

SELECTION PROCESS

• PRELIMINARY INTERVIEW• EMPLOYMENT INTERVIEW• REFERENCE & BACKGROUND• SELECTION DECISION• JOB OFFER • PHYSICAL EXAMINATION• EVALUATION

Financial Status

BSE Trading symbol 500134

NSE Trading symbol ESSAROIL

ISIN

Market Cap

INE011A01019

: [Rs.Cr.] 8,615.22

Listing And Stock Codes

The shares of the company are listed at Bombay Stock Exchange Ltd. (BSE) and National Stock Exchange of India Ltd. (NSE).

http://www.moneycontrol.com/india/stockpricequote/refineries/essaroil/EO01

Share holding pattern as on :09/12/201

330/09/201

330/06/201

3

Face value 10.00 10.00 10.00

No. Of Shares % Holding

No. Of Shares % Holding

No. Of Shares % Holding

Promoter's holding

Indian Promoters 6215026 0.43 6215026 0.46 6215026 0.46

Foreign Promoters 354714647 24.47 270864833 19.83 211805915 15.51

Sub total 360929673 24.90 277079859 20.29 218020941 15.96

Share Holding

http://www.essar.com/upload/pdf/EOL_Q2Fy2013-14_results.pdf

Financial Statements

Mar ' 13 Mar ' 12 Mar ' 11 Mar ' 10 Mar ' 09

Sales 88,578.00 58,336.00 46,988.00 36,628.00 41,414.00

Operating profit 3,042.00 1,676.00 4,483.00 1,848.00 1,154.00

Interest 3,424.00 1,411.00 1,220.00 1,179.00 1,091.00

Gross profit 227.00 695.00 1,559.00 756.00 111.00

EPS (Rs) -8.64 -30.74 4.79 0.24 -4.28

Annual Results

http://www.moneycontrol.com/stocks/company_info/print_main.php

Mar’13 Mar’12Liquidity And Solvency RatiosCurrent Ratio Quick RatioDebt Equity RatioLong Term Debt Equity RatioDebt Coverage RatiosInterest CoverTotal Debt to Owner Fund RatioFinancial Charges Coverage RatioManagement Efficiency RatiosInventory Turnover RatioDebtors Turnover RatioInvestments Turnover RatioFixed Assets Turnover RatioTotal Assets Turnover RatioAsset Turnover Ratio

0.610.57

21.4314.35

0.6921.430.69

8.3720.338.373.473.573.99

0.820.454.554.55

0.974.551.51

8.2618.778.262.803.062.94

Financial Ratios Of Essar Oil

Mar’13 Mar’12 Mar’11 Mar’10

Earnings Per Share -8.64 -9.30 4.79 0.25

Book Value 8.10 25.47 47.87 29.10

http://www.moneycontrol.com/financials/essaroil/ratios/EO01#EO01

•Essar Oil not declared any dividend since1998

Sources Of Funds

Total Share Capital 1,382.27 1,382.27 1,382.27 1,218.13 1,218.13

Equity Share Capital 1,382.27 1,382.27 1,382.27 1,218.13 1,218.13

Share Application Money 0.00 0.00 0.00 1,153.21 91.03

Preference Share Capital 0.00 0.00 0.00 0.00 0.00

Reserves -275.44 2,138.47 5,155.63 2,302.31 2,272.85

Revaluation Reserves 0.00 0.00 0.00 0.00 0.00

Networth 1,106.83 3,520.74 6,537.90 4,673.65 3,582.01

Secured Loans 23,652.75 0.00 12,274.42 9,470.59 9,419.15

Unsecured Loans 66.19 16,021.17 2,272.51 883.14 612.56

Total Debt 23,718.94 16,021.17 14,546.93 10,353.73 10,031.71

Total Liabilities 24,825.77 19,541.91 21,084.83 15,027.38 13,613.72

Mar’13 Mar’12 Mar’11 Mar’10 Mar’09------------------- in Rs. Cr. -------------

Structure Of Capital

http://www.moneycontrol.com/financials/essaroil/balance-sheet/EO01#EO01

Quarterly And Annual Highlights

http://www.moneycontrol.com/financials/essaroil/financial-graphs/ebidta-pbt-pat/EO01

For further information, download: Analyst presentation Q4 FY 2012-13 results Financial results 31 March 2013

Legal Issues Faced On The Run

• Oil minister Veerappa Moily slammed bureaucrats for recommending termination of the 17-year old contract.

• Moily admonished bureaucrats for damaging investor sentiment, risking the credibility of the ministry.

• Essar won the discovered field in an auction in 2000, but could not sign the contract because of some technical issues.

.

Legal issues contd.

• The government demanded the revised rate of cess and royalty, but Essar demanded the lower rates that were prevailing when it was auctioned, the company eventually agreed to the new rates but also demanded that the capital expenditure should also be revised.

• The government of Gujarat seized Essar Oil's three bank accounts for the early recovery of its dues.

Corporate Social Responsibility

• The Foundation works within the the framework of the 3E model — Entrepreneurship, Education and Environment.

• It is a matter of great pride for Essar to have achieved the highest rating of A+ on its first Sustainability Report (2009-10). Ernst & Young provided Independent Assurance on the report as per ISAE 3000 and AA 1000AS.

• The community service program is one way that Essar ensures it remains a people-driven and people-centric organization

Thank you…