Public sector organization of India

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1. Executive Summary:

Public sector is purely assets that remain in state that its ownership is purely and transparently public and it is process of outsourcing. The public sector comprises that organisation which provides service to the public and for which a charge may or may not be made and funded from public expenditure and which are subject at some level to political control. Public sector reorganising in India has been a big topic of debate for a number of years and it has come under scrutiny of expert committees for reason. Public sector undertakings are the major drivers of growth of Indian economy. Apart from financial benefits, these organizations have contributed a lot to the development of Indian society. For the analysis of management of the public sector, I have selected a leading public sector organization in oil and gas sector. This organization is a leading organization in the field of natural gas transportation and marketing in India. It also has a dominant presence in petrochemical business and one of the top three players in India. This report analysis deals with the current organizational structure of the organization, its strengths and weaknesses, global industry landscape, evaluation of industry in India, the critical issues faced by the management and management’s strategy for the future. At last I am trying to explore the response of the top management regarding these critical issues and trying to draw my own conclusion and recommendation on the management of that public sector organization.


For the analysis of Public Sector Management, I have selected a leading public sector organization of India. This public sector undertaking (PSU) is in the oil and gas sector and is one of the leading organizations in the transportation and marketing of natural gas in India. This organization was set up by government of India to create gas sector infrastructure for sustained development of natural gas sector in India. The organization called itself as an integrated gas company and has presence in the entire value of natural gas including exploration and production, processing of natural gas, transmission, distribution and marketing. Today, the organization has reached new milestones with its strategic diversification into Petrochemicals, Telecom and Liquid Hydrocarbons besides gas infrastructure through equity and joint ventures participations. The organization has a dominant position in natural gas business in India and has 78% market share in natural gas transmission and 70% market share in natural gas marketing in India. It also processes the natural gas and markets the C2, C3, C4 products (Ethane, Propane, and Butane etc). Ethan is used in its own petrochemical plant. Propane, Butane and other high carbon compounds are marketed to other Indian oil companies and are used to produce LPG for domestic and industrial consumption. It is also a leading player in the Indian petrochemical sector thanks to its gas based petrochemical plant which has a capacity of 410000 TPA (Tones per annum). It has an ambitious plan to expand capacity of its petrochemical to 1.5 MMTPA in next five years by expanding the existing operation and setting up new petrochemical plants in different parts of India and abroad.

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