Nayara Energy (earlier known as Essar Oil) is an integrated downstream company of international scale with strong presence across the hydrocarbon value chain from refining to retail. Nayara Energy owns India’s second largest single site refinery at Vadinar, Gujarat with a capacity of 20MMTPA.
It is one of the world’s most modern and complex refineries with a complexity of 11.8, which is amongst the highest globally. The company has over 6,000 operational retail outlets spread across India.
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It can process wide variety of crude oil ranging from ultra-heavy, high sulphur, sour crude (i.e. low API) to low sulphur light crude (i.e. high API) and has the flexibility to achieve the product slate based on expected demand. The refinery processes more than 90% of heavy and ultra-heavy crude with API ranging from 15-60 API with an average API of 24. The company also owns a port and a captive power plant in Vadinar, Gujarat.
Business Operations
Refinery – The Refinery has an annual capacity of 20 million metric tonnes (MMT) or 405,000 barrels per day (bpd). It is capable of processing some of the toughest crudes and yet produce high quality Euro IV and Euro VI grade products. It can now produce high quality Bharat Stage (BS VI) compliant fuels that meet international standards.
Nayara Energy refinery is located at Vadinar, Gujarat, which is strategically located to cater the demand of domestic and export markets. The company operates a captive power plant within refinery premises which is equipped with oil, gas, liquid and coal fired boilers and turbines capable of generating a total of 1010 MWe of co-generative thermal power.
The Vadinar refinery (in Gujarat) is India’s second largest single-site, state of the art refinery, which constitutes approximately 8% of India’s refining capacity.
Retail – Nayara also has a presence in retailing of oil with more than 5,750 operational retail outlets in various parts of India as on June 30, 2020. Furthermore, it plans to expand the number of operational retail outlets to 7,300 by December 2022.
The company is also building and hiring depots to store its own products for increasing supply chain efficiency, reducing logistic costs and its dependency on PSUs. Owing to outlets being operated primarily through Dealer Owned and Dealer Operated (DODO) model, the capex requirement of the company is minimal. The company has generated retail margin of around Rs.2,000 crore during FY20. Retail margin for Q1FY21 was healthy at around Rs.1,200 crore. The margins were higher as the retail prices in the country did not decline in proportion to the decline in crude prices. The margins have however bounced back to normal levels at present.
Nayara Energy Unlisted Shares Details
ISIN No – INE011A01019
CIN: U11100GJ1989PLC032116
PAN No. – AAACE0890P
Face Value – Rs 10 per equity share
Total Available Shares: 100-5000 (Min lot size 100 shares)
Nayara Energy Limited
Khambhalia Post, P O Box 24, District Devbhumi
Dwarka – 361 305,
Gujarat, India
Nayara Energy is a new-age downstream & petrochemicals company of international scale. It owns India’s second-largest single-site, state-of-the-art refinery, and one of the most modern and complex refineries in the country having businesses across the hydrocarbon value chain, from refining to retail, and is geared up to drive the vision of delivering crude to chemicals.
As the fastest growing Pan-India fuel retail network, Nayara Energy is powering India’s growing energy demands by expanding its retail network at an extensive scale.
Nayara Energy operates the fastest growing network of petrol pumps to retail quality petroleum products to its customers across the country.
As the fastest growing private fuel station network in India, Nayara Energy has 6000+ petrol pumps spread across the length and breadth of the country and over 1200 petrol pumps in various stages of commissioning.
The company plans to have a solid network of 8200+ petrol pumps by 2024, covering national and state highways as well as rural areas.
In its endeavour towards becoming a future-ready organisation, Nayara Energy also started automation of the majority of it’s petrol pumps. Nayara Energy’s fleet program FleetPlus is India’s first digital fleet program providing over 30000+ Transporters and 569000+ Drivers with value-added benefits and rewards on their mobile phones.
At current price of around Rs 230 per share, shares of Nayara Energy (Essar Oil) are available at market capitalisation of about Rs 35,000 crore.
Latest Book Value per share of Nayara Energy is about Rs 145
In August 2017, Russian oil giant Rosneft acquired Essar Oil’s assets, including its fuel retail outlets for $12.9 billion from the Ruia’s. More than two years on, Nayara has transformed Essar’s entire debt profile, bringing down the count of long-term lenders from 25 to eight, besides cutting interest and finance charges by more than Rs 1200 crore.
Rosneft is the leader of Russia’s petroleum industry and one of the world’s largest public oil and gas companies in terms of reserves and production of the liquid hydrocarbons. Rosneft Oil Company is focused on exploration and appraisal of hydrocarbon fields, production of oil, gas and gas condensate, offshore field development projects, feedstock processing, sales of oil, gas and refined products in the territory of Russia and abroad. The Company is included in the list of Russia’s strategic companies.
Rosneft is the leader in the Russian oil refining sector, owning 13 major refineries in key regions of Russia and ownership stakes in a number of refineries outside Russia, as well as wide range of retail sites in 66 regions of Russia, Abkhazia, Belarus and Kirghizia.
Nayara’s refinery has one of the highest complexities across refineries in India, a Nelson Complexity Index (NCI) of 11.8. Due to high complexity of refinery, Nayara is easily able to process heavier grades of crude oil resulting in higher margins when compared with low complexity refineries. The company during past three years has processed around 64% of ultra-heavy, 30% of heavy and remaining light crude. The refinery has a capacity of 20 MMTPA which constitutes around 8% of India’s refining capacity. It can process crude oil with a blend of 15-60 API (API/American Petroleum Institute gravity is a measure of how heavy or light petroleum liquid is compared with water). Since its commencement, the refinery has consistently achieved a crude throughput more than its rated capacity of 20 MMT, except in the years where company had planned shutdown.
| Details | FY18 | FY19 | FY20 | FY21 | FY22 |
| Net Sales | 85511.5 | 98659.4 | 99868.3 | 87500.6 | 119690.2 |
| Total Income | 86692.7 | 100313.2 | 100549.9 | 88565.6 | 120004.8 |
| Net Profit | 669.3 | 688.5 | 2500 | 458.2 | 921 |
| EPS | 4.49 | 4.62 | 16.77 | 3.07 | 6.18 |
Nayara Energy Ltd consolidated Cash Flow Statement (Rs cr).