IOC Aims for $1 Trillion Revenue by 2047: Chairman.

Indian Oil Corporation (IOC), the nation's largest oil firm, has set an ambitious target to become a $1 trillion company by 2047. The strategy involves growth in traditional oil refining and fuel marketing alongside significant investments in clean energy, including green hydrogen and EV charging, according to the company's chairman.

In the 2023-24 fiscal year, IOC posted a record net profit of ₹39,619 crore ($4.7 billion) on revenue of ₹8.66 lakh crore ($104.6 billion). The company plans to continue investing in both fossil fuels and new energy sources to achieve a balanced portfolio and reach net-zero carbon emissions by 2046, stated Shrikant Madhav Vaidya, the chairman, in the latest annual report.

IOC intends to expand its oil refining capacity and invest in petrochemical units to convert crude oil into value-added chemicals, while also increasing its focus on gas, biofuels, and clean mobility. “With India's economy on the rise, the energy needs of the country are growing exponentially. As 'The Energy of India,' we aim to fulfill 12.5 percent of India's energy needs by 2050,” Vaidya said.

The company is on an "aspirational journey to become a 'One Trillion Dollar Giant' by 2047," aligned with India's vision to transform into a $30 trillion economy by 2047. Significant capital investments in brownfield and greenfield expansions will ensure uninterrupted energy supply, and petrochemical integration will be a key focus area, enhancing the value chain.

With completed expansions at Panipat in Haryana and Paradip in Odisha, and upcoming projects at the Gujarat refinery, IOC aims to scale up capacity to 13 million tonnes and achieve a petrochemical intensity index of 15 percent by 2030. The company is also diversifying into niche products like specialty chemicals and biopolymers.

IOC's green initiatives include hydrogen mobility, biofuels, electric mobility, solar cooktops, and minimizing water footprint. To consolidate these efforts, a wholly-owned subsidiary, Terra Clean Limited, has been established to focus on low carbon, new, clean, and green energy businesses. The company plans to establish 1 GW of renewable energy capacity with an investment of over ₹5,000 crore, and aims to enhance its renewable energy capacity to 31 GW by 2030, primarily through solar and wind projects.

The firm has also entered into joint ventures with Phinergy for aluminium-air batteries and Panasonic Energy for advanced lithium-ion battery manufacturing in India. A joint venture with Sun Mobility Pte Ltd aims to establish one of the largest battery-swapping networks in India by 2030. Additionally, IOC plans to set up 30 compressed bioGas (CBG) plants nationwide this year and convert half of its hydrogen consumption to green hydrogen by 2030.

India's oil demand is projected to rise from 5.4 million barrels per day (bpd) in 2023 to 9.3 million bpd by 2040. To meet this demand, the country's refining capacity needs to increase from the current 256.8 million tonnes per annum to 450 million tonnes. Additionally, the nation aims to add 50 GW of renewable energy capacity annually, targeting 500 GW of installed renewable capacity by 2030.

Every day, IOC processes over 1.6 million barrels of crude oil, operates over 37,500 petrol pumps, delivers more than 26 lakh LPG cylinders, and fuels over 2,300 flights. It runs 9 refineries with a cumulative capacity of 70.25 million tonnes per annum and operates 19,700 km of cross-country pipelines. In 2023-24, IOC added 1,260 petrol pumps, taking the total to 37,472, along with 2,110 CNG stations and 9,059 EV charging stations (including 91 battery swapping stations).

"As 'The Energy of India,' your company is fully prepared to ramp up both conventional and non-conventional energy options to cater to this increasing demand," Vaidya concluded.

HBL