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IOC: Failing to adjust
Jun 30:
Like GAIL another company which seems to be slow to adjust to adverse ground realities is Indian Oil Corporation (IOC).
8The market share loss has become significant, with private players achieving 3% share in petrol and 8% in diesel.
8Over the next two years, free cash flow would be good.
8However, with the company is committed to a Rs 1,75,000 crore of investments in the next seven years, so the balance sheet is likely to be strained.
8IOC still hasn't listed out the medium term risks, within the next five to 10 years, when disruptive technology, like the advent of a competitive electric car, begins to bite the company.
8That is likely to hit the company as hard as nimble competitors are likely to do by eating into existing market share in petroleum products.
8An alternative strategy is lacking
8For reference purposes, the website carries here a detailed outline of IOC's future plans, risk perception and its existing infrastructure.
Click on Reports for more
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8The market share loss has become significant, with private players achieving 3% share in petrol and 8% in diesel.
8Over the next two years, free cash flow would be good.
8However, with the company is committed to a Rs 1,75,000 crore of investments in the next seven years, so the balance sheet is likely to be strained.
8IOC still hasn't listed out the medium term risks, within the next five to 10 years, when disruptive technology, like the advent of a competitive electric car, begins to bite the company.
8That is likely to hit the company as hard as nimble competitors are likely to do by eating into existing market share in petroleum products.
8An alternative strategy is lacking
8For reference purposes, the website carries here a detailed outline of IOC's future plans, risk perception and its existing infrastructure.
Click on Reports for more
