Indian Oil Corporation Ltd (IOCL) is set to leverage Project Sprint 2.0 to strengthen its retail network, improve operational efficiency and build a more customer-focused brand image. The initiative will go beyond cost reduction by targeting market share growth, operational optimisation and stronger brand visibility across the company’s retail outlets (ROs).
Sprint 2.0 Targets Growth Beyond Cost Savings
IOCL Chairman A. S. Sahney said Project Sprint is not limited to controlling costs. Instead, the initiative focuses on expanding market share, improving operational efficiency and driving greater optimisation across the business. The first phase of Project Sprint delivered significant savings for IOCL. According to the company, the initiative helped generate savings of around ₹2,200 crore last year. Moreover, IOCL has continued to improve its fuel and loss performance. The company’s Fuel & Loss stood at 8% in Q1 FY27, compared with 8.5% in Q1 FY26 and FY26. Sahney described the latest performance as a strong margin for further savings.
Operational Efficiency Supports IOCL During Market Disruptions
The company also credited the operational efficiency measures introduced under Project Sprint with helping it navigate a challenging first quarter. According to Sahney, Q1 FY27 was among the most difficult quarters faced by oil and gas companies, particularly amid the West Asia conflict. However, IOCL’s optimisation measures and operational efficiency initiatives helped the company manage the challenging operating environment. The company had started implementing these measures a year earlier under Project Sprint. Consequently, the initiative is now becoming an important part of IOCL’s strategy for improving resilience and profitability.
Higher Refining Capacity to Drive Retail Expansion
A key reason behind Sprint 2.0 is IOCL’s expected increase in refining capacity. The company is targeting cumulative refining capacity of around 27 million tonnes per annum (MTPA) by the end of FY27. IOCL has already added approximately 9 MTPA, while another 17.3 MTPA is expected to come online, likely by December 2026. The additional capacity is expected to significantly increase the company’s fuel production. IOCL estimates that its expanded refining operations could produce around 10–12 million tonnes of diesel.
Stronger Retail Network to Support Diesel Sales
The anticipated increase in diesel production presents a new sales challenge because diesel demand is growing more slowly than petrol demand. Therefore, IOCL plans to strengthen its retail outlets and use its extensive retail network to support fuel sales. Sahney emphasised that the company will focus on improving the quality and customer experience of its retail outlets, while simultaneously increasing IOCL’s overall brand presence. This approach will allow the company to use its retail network not only as a fuel distribution channel but also as a platform for strengthening customer engagement and market share.
IOCL Raises Refinery Throughput Targets
IOCL also expects refinery throughput to increase steadily over the coming years. The company has projected throughput of FY27: 77 MTPA, FY28: 85 MTPA and FY29: 90 MTPA. As refining capacity and throughput rise, the company will need to optimise production, distribution and sales across its network.
Profitability Improvement Group Established
To further improve refinery performance, IOCL has established a Profitability Improvement Group within its refinery division under Project Sprint. The group will focus on identifying opportunities to improve refinery profitability, optimise operations and maximise value from the company’s growing refining capacity. As reported by thehindubusinessline.com, overall, Project Sprint 2.0 marks a broader shift in IOCL’s strategy—from cost optimisation alone towards a combination of retail expansion, stronger branding, operational efficiency, market-share growth and profitability improvement.
