About Cairn India and Strategy Management Of Cairn India

1. PRESENTATION BY :
DHEERAJ MEHTA

2. CAIRN ENERGY
Cairn Energy plc is an independent
Scottish oil and gas exploration and
production company headquartered
in Edinburgh. The company was
founded in 1981 by Sir Bill Gammell,
formerinternational Rugby player.
It has operational interests in
Albania, Bangladesh, Greenland,
Nepal and Tunisia and produces
around 33,000 barrels of oil
equivalent per day. It previously had
major activities in India, where it
made more than 20 discoveries
in Rajasthan, including a major oil
discovery at Mangala; these were
sold through the spin-off of its Indian
subsidiary Cairn India to Vedanta
Resources in December 2010.

3. CAIRN INDIA
In 2006, Cairn spun off its production
interests in Western and Eastern
India into a separate company
called Cairn India Limited. Acreage
held by its subsidiary Cairn India
included the Mangla area in
Rajasthan, which is thought to
contain up to 1 billion barrels
(160×106 m3) of recoverable reserves
and came on stream in 2009.
In September 2010, Vedanta
Resources said that it was interested
in buying a controlling stake in Cairn
India. Vedanta Resources acquired a
58.5% stake in Cairn India on 8
December 2011, for $8.67 billion.
Navin Agarwal is the new chairman of
Cairn India.

4. Cairn India limited vision
“To be a best-in-class E&P Company
with a balanced portfolio delivering
value through superior business
performance and partnerships”

5. Cairn India limited mission
• To become a global, world-class
E&P company.
• To establish a diversified and
sustainable portfolio.
• To deliver long-term value to host
Governments, Local Communities
and all Stakeholders.

6. CAIRN STRATEGY
Believe that building strong, open and
lasting Relationships with stakeholders
is essential for improving transparency,
enhancing trust, maintaining ‘social
license to operate’: relationships with
employees, communities, joint
venture partners, governments
or regulators. Seeking win-win
relationships with all
stakeholders is one of cairn guiding
principles. Understanding
stakeholders’ needs and concerns
is vital for cairn. We regularly interact
with district administration
officials, as well as the general
public and community leaders,
to plan and implement
long-term socio-economic
development measures.

8. Unlocking RJ
Potential
Execution
Focus
Accelerating
Exploration
Production
Growth
Top Quartile
HSE Standards
• Largest ever Capex Program
• Reduce Discovery to Delivery Cycle Time
• Expand Infrastructure
• RJ, Ravva & Others
• International Activity
• Sustained Volume Growth
• Top Quartile Cost
• Leveraging technology to improve recovery
Among Top 10 E&P Companies World-wide
in HSE Performance

18. Level of strategies
• Corporate level strategies (CLS)-
Cairn India board of directors.
• Strategies business unit(SBU)-
management committees in cairn
India
• Functional level strategies (FLS)

19. Corporate level strategies (CLS)-
Cairn India board of directors
1. Mr. Navin Agarwal Chairman, Non-
Executive Director
2. Mr. Tarun Jain N on-Executive
Director
3. Ms. Priya Agarwal N on-Executive
Director
4. Mr. Aman Mehta N on-Executive
Independent Director
5. Mr. Naresh Chandra N on-Executive
Independent Director
6. Dr. Omkar Goswami N on-
Executive Independent Director
7. Mr. Edward Story N on-Executive
Independent Director
8. Mr. P Elango Interim CEO & Whole
Time Director

20. Management Committees at
Cairn India
• Executive Committee
• Central Committee for Stakeholder
Relations
• Contracts Committee
• Risk Management Committee
• Ethics Committee
• Grievance Committee
• People Panel
• Operating Unit Steering Committee
• Sustainability Steering Committee

22. 1. Excellent operations from Rajasthan and
Mangala Processing terminal, Mangala field is
considered to be largest onshore hydrocarbon
find in India
2. Robust system and very innovative
technologies in place
3. Ranked as world's fastest growing energy
company
4. Strong focus on CSR activities
5. Strong brand name and
reputation
1. Increasing cost
due of raw materials
2. Strong government
regulations and
policies means slow
operational efficiency
S W
O T
1. India's growing energy requirements
2. Buyout of Cairn India by Vedanta
resources
3. Heavy industrialization causing an increase
in demand for fuel
4.Demand-Supply gap in India
1.Possibilities of reduction in subsidies on
natural gas by government of India causing a
fall in demand
2.Economic instability and fluctuations in
India's policies

23. Pestel
analysis
P
• Govt. production
sharing agreement.
• Subjected to risky
geopolitical violence.
E
• Cairn enjoy tax
breaks and favourable
corporate conditions.
• Inability to
determine prices
S
• The change in
lifestyle indirectly
affects Cairn.
• Not as effective in
their CSR policies and
pollution control
T
• Innovative
exploratory and
drilling technology.
• Shifting attitude
Towards Renewable
energy.
E
• Oil discovery in
previously unexploited
territories.
• Activities result in
carbon emissions.
L
• legal limitations and
embargoes on their
activities.
• Policy uncertainties
and government
breach of contract.

24. PORTAL FIVE FORCES

25. Main competitors for cairn India
limited
• Adani Welspun Exploration
Limited
• Dolphin Offshore Enterprises
(India) Limited
• Great Eastern Energy Corporation
Ltd.
• GVK Oil & Gas Ltd.
• Oil and Natural Gas Corporation
Limited
• Oil India Limited
• Reliance India limited
• BG Group
• Asian Oilfield Services Ltd.
• Aban Offshore Ltd.
• Alpha Geo (India) Ltd

26. Bargaining power of suppliers
In case of Cairn Energy Plc. the suppliers
consists of countries where the oil wells
are located
as well as other organizations that
develop various machinery that are used
by the company in oil and gas
explorations. The bargaining power of
suppliers in Cairn Energy Plc. case can be
said to b every high
since oil and gas is only available in
selected country. In addition, the bidding
system that is usually adopted by most of
countries that have oil and gas reserves is
a good indicator of the high bargaining
power that the suppliers have as the
countries have the power to decide
which company to award the exploration
tender to.

27. Bargaining power of Buyers
Mumbai: State-owned Bharat Petroleum
Corp. Ltd (BPCL) and Hindustan
Petroleum Corp. Ltd (HPCL) have shown
interest in buying crude oil from Cairn
India Ltd . Cairn sells crude only to two
Gujarat-based private refiners —Reliance
Industries Ltd in Jamnagar and Essar Oil
Ltd in Vadinar. A 590km pipeline moves
crude oil from Cairn’s Barmer fields in
Rajasthan to Salaya in Jamnagar district.
With a new 79km pipeline connecting
Salaya to a terminal in the Arabian Sea
close to commissioning, Cairn is seeking
new customers to supply crude through
the sea route. Once the pipeline from
Cairn’s Barmer field in Rajasthan reaches
the coastal terminal in Gujarat, these
state-owned firms could source crude
from it. Selling to the state-run marketers
could help Cairn potentially improve its
earnings over time.

28. Substitutes of oil and natural gas
a)Unconventional resources such as
shale gas and CBM,
b)Renewable energy Resources such
as-
1) Wind energy
2) Hydroelectric power
3) Solar energy
4) Tidal energy
5) Geo-Thermal energy
c)Nuclear energy

29. New entrants in oil and gas industry
Low, Despite the attractiveness of oil
and gas industry in India, the threat
of new entrant is very low mainly
because of two reasons High capital
investment requirement and
Economies of scale. Capital
investment requirement in oil & gas
industry is substantial as the
investment requirement for setting
up the production facilities,
development of oil field requires
specific technology and skilled
labour. As a result of specific labour
and resources requirement the entry
barriers are high. Also the cost of
drilling, services on the oil field and
requirement of scientific research
and material is also substantial