Just when I was penning the thoughts for this issue, came the news of the long awaited hike in the prices of Petrol, Diesel, LPG and Kerosene. Hopefully, the hike will only be a precursor to a full deregulation. It was certainly a proud moment for all IOCians, when positive investor sentiments took the IndianOil stock price to a record high in terms of market capitalisation. On 28^th June 2010, the share price rose by more than 20% in two trading sessions touching Rs. 418.10 on the BSE. At this price, the market capitalisation of IndianOil shares was over Rs.1,00,000 crore for the first time in history! For a company that has been focused on creating long term shareholder value, this was indeed a jubilant moment. Unlike popular myths of the negative impact of the price rise, the truth is - market determined prices are beneficial in the long term. If the price of automotive fuels follows international crude oil prices, the consumer will be more sensitive to the discipline of market forces and actually curb wastages. The challenge will now be to stay the course when the global oil prices move up.

With the present hike, the estimated losses will reduce by over Rs 12,000 crore in the current year. Market determined prices for fuels make a huge difference to the efficiency of the economy as well. With India poised to emerge as a global economic giant, the need is to ensure that we can actually be competitive at the international level.

With the strong possibility of deregulation around the corner, we can expect competition to come back in the market. As a Corporation, we should be prepared to face new challenges. In the past, private oil companies have shown that they are capable of swiftly grabbing market share in places where we are vulnerable. This is bound to be repeated. The last time around, we managed to stave off the fall in market share through a combination of strategies. And this time, we would need twice the effort. While we strive hard in the market place to retain the patronage of our customers, we also should work backwards and look at innovative ways to reduce the cost of production. We need to roll up our sleeves and work more efficiently and cost effectively.

Our maiden despatch of polymers to a foreign market was made when a consignment was sent to Jagdamba Synthetics, Nepal. With this first shipment, we have added Polypropylene to the basket of petrochemical products being offered by IndianOil. We are logistically well placed in northern India and best suited to cater to the Nepal market with minimal lead time. There are more opportunities for further shipments to Pakistan and other neighboring countries.

IndianOil has been ranked among the 'Top 50' companies to work for in India in a recent study conducted by the Economic Times and the Great Places to Work Institute. In the annual survey - 'India's Best Companies to Work For' conducted from a human resource perspective, IndianOil has been selected for its perfect blend of the 'corporate style meeting the public sector'. The report also calls IndianOil as "the face of new-age India....Modern in its ideas, with a dynamic approach but stubbornly Indian in its vision and values...' and ranks us at 31^st in the overall list and 5^th in the Manufacturing & Production industry category.  

Besides delighting customers with innovative products and services, we continue to make a difference to the lives of needy customers too. An insurance scheme which is a part of our flagship loyalty programme, XTRAPower, has been making waves right from the time of its launch. The uniqueness of the scheme is that it provides both fleet owners and their crew an insurance cover after they sign up for the loyalty programme. Recently, the surviving spouse of a truck owner was handed over a cheque of Rs. One lakh. A gesture that has been widely lauded by our customers in the area. The insurance cover by Oriental Insurance is for members of the programme in case of an accidental death or permanent injury.

Recently, I had the opportunity of participating in an 'Art of Living' programme on 'Lifestyle Management'. The comprehensive programme included an insightful recipe for self-development for managing life, healthy relationships and interpersonal interactions. It is very important to have a health-work balance. On a personal note, let me emphasise the importance of good health. Nowadays, an increasing number of young people are being diagnosed with high blood pressure and diabetes in India and the cause is stress. In fact, stress has been identified as one of the major causes of decreasing employee productivity. Two out of every three employees in India is a victim of stress. Long hours, work-life imbalances, high expectations and competitiveness are some of the reasons that lead to stress. It is important to 'respond' to stress and not 'react' to it." Good health is an investment and I urge all my colleagues to relook at all aspects of their lifestyle. The true wealth of IndianOil is the wellbeing of the IndianOilPeople. Let me reiterate that our families depend on us and we owe it to them. Send your thoughts on my email bansalbm@iocl.co.in. Wish you all the best.

B M Bansal
Chairman