Indian Oil Corporation Ltd is redefining Project Sprint 2.0 to prioritise expanding refining capacity, enhancing retail brand presence, and targeting increased exports, signalling a strategic shift from cost-cutting to market dominance.
Indian Oil Corporation Ltd is recasting Project Sprint 2.0 as more than a belt-tightening exercise, with chairman A. S. Sahney saying the initiative is meant to lift market share, sharpen operations and give the state-run fuel retailer a stronger public profile. The move comes as Indian Oil prepares for a much larger downstream footprint and looks to turn its network of filling stations into a more visible brand asset. The company says the first phase of Sprint already delivered savings of about ₹2,200 crore last year.
Sahney said the scheme helped Indian Oil cope with a difficult first quarter, when oil and gas markets were unsettled by the conflict in West Asia. He said the company’s fuel and loss ratio stood at 8% in the June quarter of FY27, down from 8.5% in the same period a year earlier, and argued that the improvement leaves room for further gains. Indian Oil has since set up a Profitability Improvement Group in its refinery division to hunt for extra efficiencies and better returns.
The strategic backdrop is a major expansion in refining. According to The Economic Times, Indian Oil is investing ₹75,000 crore to add 17.3 million metric tonnes a year of capacity across three units by the end of this year, while other reports say some of that new capacity is expected to come on stream by December 2026. The company is aiming for cumulative refining capacity of around 27 million tonnes a year by FY27, with throughput projected to rise further in the following years.
That additional output is expected to create a sales challenge as much as a production opportunity. Diesel demand is growing more slowly than petrol demand, so Indian Oil is leaning more heavily on its retail network to move product and improve the customer experience at its outlets. Sahney said the group wants better-presented, more customer-focused petrol stations that can also reinforce the company’s brand and help defend and grow market share.
The bigger picture is that Indian Oil wants to use refining strength to support wider commercial ambitions, including exports. Business Standard has reported that the company is targeting Africa and Europe for petrochemical sales, while other industry coverage has pointed to a possible 25% rise in India’s petroleum product exports as new capacity comes online. Project Sprint 2.0 therefore appears to mark a shift from internal savings alone towards a broader bid for scale, resilience and visibility.
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