Presentation IOCL

Indian Oil Corporation Ltd. - Business Associate

M/s Mosaic Enterprises Ltd.

Journey towards the success of

N. D. Business

To create value for

customers through Innovation

Concept of Business Associate is to leverage the strength of both partners

to offer best value to customerIOCL Business

Associates

State of Art Infrastructure

Respected Brand

Reliability of a Government Co.

Product Quality

Multiple Supply Points

Focused Outlook on Commercial Business

Experienced Technical Professionals

Service Orientation

Proactive Approach

Local Market Penetration

BENEFITS TO CUSTOMER (BUSINESS ASSOCIATES)

Inventory Management

Logistics Control

RelationshipManager

Technical Assistance

Special Discounts Accounts Reconciliation

SERVICES OFFERED BY(BUSINESS ASSOCIATES)

Prospecting in industrial customers and clusters of various industries

Developing expertise in fuel applications, and offering application support to customers

Inventory Management through local godown, providing ex-stock availability of product at all times

Provide credit, logistics, C-form collection and cylinder management

Installing Manifolds and LOT Systems

COMPARISON BETWEEN BUSINESS ASSOCIATES AND DISTRIBUTOR

BUSINESS ASSOCIATE DISTRIBUTOR

Supply LPG at competitive rates against market price

Institutional and Industrial Sales

Technical Expertise required

Focus is on maximising ND Sales

Commercial Negotiation skills required

Flexible logistics models to be used with Ex-MI pricing

Credit sales and after sales recovery

Distribution of subsidised domestic LPG to individual household

Retail sales

Retail management skills required

Focus is to minimise diversion of domestic LPG

Fixed price sales, no negotiations, large retail customer management

Fixed logistics model, delivered price

Cash and carry business

OMC DISTRIBUTORPrimary Objective of the distributor is to safely

deliver the subsidised product to rightful recipient. To fulfill this objectives, following tasks takes up his entire time:◦ Enrollment of new customers◦ Verification and completion of forms◦ Verification of kitchen safety◦ Linking / delinking of Adhar numbers◦ Individual customer complaints (large individual customer base)◦ Checking diversion at various levels during the course of delivery

His job is more of policing and guarding the high in demand subsidised LPG and not marketing the product through competition.

PROTECT AND PREVENT HIGHLY SUBSIDISED DOMESTIC LPG FROM MIS-USE

Fake UserRefiller

Black MarketDiversion

PRODUCT & SERVICES19 Kg/47.5 Kg LPG

Commercial cylinders (Vapour

off-take)

47.5 Kg LPG Cylinders (LOT)

5 Kg ND LPG cylinders for mobile / migrant populations

Bulk LPG/Propane in 12 MT & 18 MT

TankersCylinder Manifold

InstallationsLiquid Off-Take (LOT) Manifold

Installations

Consultation on conversion from

liquid fuel to gases fuel

CONVERSION FROM HSD TO LPG

WHAT IS LPG AND WHAT IS LPG CONVERSION?

Liquefied petroleum gas (LPG) is a different chemical compound to natural gas even though they are both hydrocarbons. LPG consists of propane and/or butane. Although gaseous under normal atmospheric conditions, LPG (propane) is stored under modest pressures in liquid form. In this way LPG can be transported and stored in a concentrated form to provide a source of high-energy fuel.

Of course LPG cannot be simply used in any industry that is accustomed to take HSD or Furnace Oil (FO). LPG conversion is seen as a straight forward and cost effective way of altering an HSD or FO based industry to run on LPG.

ENERGY EFFICIENCY HSD V/S LPG

The calorific Value of LPG is equal to 11,800K cals per Kg.

The calorific value of HSD is only 10,500K cals per Kg.

The calorific value of LDO is only 10,100K cals per Kg.

APPLICATIONS HSD V/S LPG

HSD Fuel - Burner operates on fully automated air control technology – resulting in firing efficiency of 82% – 92%.

HSD Fuel - Burner operates on North American Burners with manual control air technology – resulting in firing efficiency of 70% – 80% because of high excess air.

LPG Fuel – Low excess air fully automated burner results in high firing efficiency. Firing efficiency of LPG burner is 96% – 98 %.

COST COMPARISON HSD V/S LPG (PUNJAB)

Net Calorific value of 1 Kg LPG on a Fully automatic Burner with 98% fuel efficiency = 11560 Kcal/kg @ 73.50 per kg.

Net Calorific value of 1 Kg HSD on a Fully automatic Burner with 92% fuel efficiency = 9660 Kcal/kg @ 69.51 per kg. ( HSD Rate – Rs 57 per litre)

Hence in order to buy 9660 Kcal, expenses on HSD Rs 69.50/- & expenses on LPG Rs 61.50/-

Net Savings Rs 8.00 per Kg or 12 % and it will decrease/increase on monthly basis with the increase in price of HSD and variation in the price of LPG.

COST COMPARISON HSD V/S LPG (UTTAR PRADESH)


Net Calorific value of 1 Kg HSD on a Fully automatic Burner with 92% fuel efficiency = 9660 Kcal/kg @ 76.80 per kg. ( HSD rate = Rs 63 per litre )



COST COMPARISONHSD V/S LPG (RAJASTHAN)


Net Calorific value of 1 Kg HSD on a Fully automatic Burner with 92% fuel efficiency = 9660 Kcal/kg @ 73.80 per kg. ( HSD rate = Rs 60.50 per litre )



COST COMPARISON HSD V/S LPG (MUMBAI)


Net Calorific value of 1 Kg HSD on a Fully automatic Burner with 92% fuel efficiency = 9660 Kcal/kg @ 80.50 per kg. ( HSD rate = Rs 66.00 per litre )



DIFFERENCES

HSD FUEL LPG FUELHigher maintenance cost of firing equipments

Break down in production

Temperature achieves Slowly

Indirect Firing in ovens

Higher furnace maintenance( Brick/Pot ) life

Lesser maintenance cost of firing equipments

No Break down in production

Temperature achieves Faster

Direct Firing in ovens

Lower furnace maintenance ( Brick/Pot ) life approx two times

AREA OF CONVERSION FROM HSD TO LPG

Baby Boilers In Hotel Industry/ Hospitals/ Laundries

Biscuits and Bakery Units

Milk Processing Units

Wafers/Namkeen Manufacturing Units

Powder Coating Ovens

Liquid Paint Shop

Diesel Burner

Gas Burner

V/S

FULLY AUTOMATIC HSD / LPG BURNERS

BURNERSDIESEL BURNER V/S LPG BURNER

DIESEL BURNER LPG BURNER

Fuel Pump life 4 – 5 months

Nozzle life 1 – 2 months

Photo sensors life 3 – 4 months

Pump Coupling life 3 – 4 months

Fuel filter life 1 months

No Fuel Pump

Nozzle less

No photo sensors

No Pump coupling

No fuel filter

BURNERSDIESEL BURNER V/S LPG BURNER

Fuel Pump life4 – 5 months

Nozzle life1 – 2 months

CONTINUATIONDIESEL BURNER V/S LPG BURNER

Photo sensors life3 – 4 months

Pump Coupling life3 – 4 months

Fuel Filter Life1 month

BABY BOILER

BABY BOILER SPECS – BY THERMAX

CASE STUDY FOR 600 Kg BOILER ( Uttar Pradesh )

PARAMETERS UNIT RXA - 06

Steam Output ( F&A 100 deg Celcius ) Kg/hr 600

Fuel Consumption - -

HSD/LDO Kg/hr 36 Kg or 43.90 ltr

LPG Nm3/hr 16.4

Total Kilo calories required - -

HSD 36*10500 378000 Kcal

LPG 16.4*22390 367196 Kcal ( 31.02 kg )

Price Per kg Total Expenses ( INR )

HSD U.P. @ Rs 76.82 Rs 76.82 * 36 = 2765

LPG U.P. @Rs 73.00 Rs 73.00 * 31.02 = 2264

NET SAVINGS - 2764 - 2264 = Rs 499/ Hr

CASE STUDY FOR 600KG BOILER AND SAVINGS

FORGING FURNACE FURNACE OIL V/S LPG

FURNACE OIL (FO) LPG FUELFurnace oil based furnaces have large furnace volume which means more fuel is required to heat the furnace

High Excess air results to more fuel consumption

Flame pattern is such that the burning loss is 5% to 7%

No flexibility in the shape of the flame

Maintenance of the furnace is required at least 2 or 3 times in one year

Average consumption of fuel is around 100 Kg per Ton

LPG – Very Compact flame size

Negligible excess air is required. Hence low fuel consumption

Burning loss is only 1% to 2 %

We can have the flame shape of our own choice

LPG based furnace can run smoothly for about 2 years

Average consumption of LPG is around 70 Kg per Ton

Burn Metal Particles (Kara)

Burn Metal Particles (Kara)

Pit on the Surface

COST COMPARISON FO AND LPGFurnace Oil = Rs 47.00 per Kg.

LPG = Rs 73.00 Per Kg.

Running cost of Furnace oil per Ton = 47 x 100 = Rs 4,700.

Running cost of LPG per Ton = 73 x 70 = 5,110

Burning Loss difference between FO and LPG is around 3% which is equivalent to 30 Kg @ Rs. 42/Kg = Rs. 1,260/-

Extra running cost due to burning loss in case of FO = Rs 2,000/-

Extra running cost due to burning loss in case of LPG = Rs 740/-

Extra Electric consumption in case of FO is = Rs 800/-A) Electric Heater In Service Tank B) Heating Pumping Unit C) Heavy Duty Blower

SAVINGS FO V/S LPG

Overall running Cost on FO

Overall running Cost on LPG

Net Savings in running Cost with LPG

Amount In ( )7,500.00/Mt. Ton

5,910.00/Mt. Ton

1,590.00/Mt. Ton

HEAT TREATMENT FURNACE ON LPG WITH NORTH AMERICAN BURNERS

NORTH AMERICAN BURNERS

OIL BURNERS GAS BURNER

BLOWER

OTHER AREAS OF CONVERSION FROM LIQUID FUEL TO LPG

Hot Dip/Galvanising

Aluminum Melting

Brass/Copper Melting

Paint Industry (Kettle Heating

with Coil Burner)

Auto Black Industry with

Coil Burner

Phosphate, Zinc/Nickle

Plating

COMPARISON OF LIQUID VS GASEOUS FUELS

COMPARISON OF VARIOUS FUELSProduct LPG Electricity HSD LDO FO

Unit 1 KG 1 KWH 1 LTR 1 LTR 1 KG

Calorific Value in kcal/unit 11840 860 10500 10000 9500

Fuel efficiency % 80 100 62 60 50

Effective CV PER UNIT 9472 860 6510 6000 4750

(NEW DELHI) 73 7 58 62 47

Costing for 10000 kcal 77.00 81.00 89.00 103.00 99.00

Savings % by using LPG - 5.00 16.00 34.00 29.00

The following table gives an idea of various advantages and savings of gas firing over liquid firing.

THE DIFFERENCE OF FUEL EFFICIENCY SHOWN IN ABOVE TABLE COMPRISES OF FOLLOWING PARAMETERS:

Fuel Atomization

Latent heat of

vaporizationExcess air Burning

speed

Fuel atomization: Atomization of fuel needs external energy (by pump or compressor) to atomize before injecting the fuel in to the combustion chamber. Heavier the fuel higher is the atomization cost. In case of gaseous fuel the same is absent, giving gaseous fuels an advantage of 2-3%. Latent heat of vaporization: During combustion process liquid fuel gets converted to vapour and the vaporization process takes away the latent heat of vaporization from the combustion heat. The latent heat of various liquid fuels varies from 90-110 Kcal/ Kg. Gaseous fuels does not require any vaporization hence no such heat loss from the combustion process.

Excess Air: All fuels except gases are burnt 100% only at slightly positive pressure. This characteristic of liquids and solids require combustion air being fed at more pressure than in case of gaseous fuels. Gaseous fuels are the only fuel which can be burnt 100% at atmospheric pressure, requires less combustion air pressure hence less stack losses. This characteristic of gaseous fuels gives an advantage of more than 10% over liquids in terms of less exhaust losses.

Burning Speed: The ability of gaseous fuels to burn faster than liquid and solid fuels ensure no un-burnt fuel going in the exhaust. This further improves the efficiency of gaseous fuels especially in case of high consumption applications. Apart from above mentioned direct advantages the use of gas entails indirect advantages as well, which can be summarized as below·Gas is the fuel of future·Low maintenance of equipments·Higher equipment life·Enhanced end product quality·Direct heating is possible·Environmentally very friendly·No spillage·No theft losses·No adulteration possible·No vaporization losses from the storage tank as in case of liquid fuels

Note:The data provided in this chart is for information only and does not form part of any contract .Due to our continued commitment to research and development, we reserve the right to modify data in accordance with changing prices of products alternative fuels without any notice. The improper use of combustion equipment can result in high consumption. Users are urged to comply with national and local standards .

THANK YOU

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Presentation IOCL