Last time we discussed the Marketing Strategies of Cairn India. Let’s now go through the SWOT analysis of Cairn India.
Cairn Oil & Gas is India’s largest crude oil producer, currently producing goods in Rajasthan, Andhra Pradesh and Gujarat. Cairn India has its headquarters in Gurgaon, India. In 2017 it was combined with Vedanta Limited.
Cairn India has a unique marketing strategy. Today every other company is using digital marketing, hence it has become a very important and essential skill to learn. You can check our Free MasterClass on Digital Marketing 101 by Karan Shah, the founder and CEO of IIDE.
Before we begin further with the SWOT analysis of Cairn India, let us discuss the company, what products it has to offer, its financials and its competitors.
About Cairn India
(Cairn Energy, Source: Scottish Business Insider)
Cairn India is one of the largest oil and gas exploration and production companies in India. Cairn India is a leader in exploration and production, and its testing strategy is based on a portfolio of high reward prospects across the risk sector. It believes in investing in advanced geological and geophysical technologies to improve the chances of successful exploration, and monetization with its hydrocarbon resources.
In a statement issued by the BSE, Vedanta said, “The consolidated company will have a large market of $ 15.6 billion. Vedanta will have one of the strongest balance sheets in the field of India’s flexible companies to balance the budget for high-yield projects while providing a strong and sustainable profit”.
| Founder | Bill Gammell |
|---|---|
| Key People | Prachur Shah & Navin Agarwal |
| Year Founded | 2006 |
| Origin | United Kingdom |
| No. of Employees | 1000-5000 |
| Company Type | Private |
| Market Cap | Rs. 53,529 Crore |
| Annual Revenue | Rs. 4,649.43 Crore |
| Net Income/ Profit | Rs. 2,149 Crore |
Products & Services of Cairn India
Cairn India is an Oil and Gas Company, It provides all kinds of petroleum products and other related services such as:
- Crude Oil
- Gases
- Oil And Gas Exploration And Production.
- Domestic Crude Oil Production.
- Other Services
Competitors of Cairn India
- Oil and Natural Gas Corporation Limited
- Harbour Energy
- COSL
- Focus Energy
Now that we understand the company, let’s dig into the SWOT analysis of Cairn India.
SWOT Analysis of Cairn India
SWOT can tell the areas that are holding you back, or about the loss if you don’t protect them. SWOT analysis is a tool that helps you analyze your company’s strengths, weaknesses, opportunities and threats.
Let’s start by discussing the strengths of Cairn India from the SWOT analysis of Cairn India.
Strengths of Cairn India
The strength of a company is a competitive advantage that allows a company to win, generate value and gain efficiency. The strengths of Cairn India are as follows:
- Strong Market Position: Excellent performance from Rajasthan and Mangala processing terminal, Mangala field is considered to be the largest available onshore hydrocarbon in India.
- Robust System & Innovative Technology: Cairn India with Vedanta has invested heavily in Industry 4.0 and digitalisation. The technology transformation helps the organization to acquire and trade new oil, gas & energy resources more efficiently but also to bring back additional resources to existing sectors.
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(Digital Transformation is Empowering Vedanta & Cairn, Source: LinkedIn)
- High Growth Rate: According to Platts, Cairn India has taken first place as a fast-growing company not only in Asia but globally. Cairn India with a combined three-year growth rate (CAGR) of 119.8 per cent was very far from this sector.
- Focus on CSR: Cairn has adopted a scientific approach and strategy to address local needs communities by implementing CSR programs in partnership with government and trusted organizations in all areas with different topics such as agriculture and animal husbandry, skills development, education, health care, community infrastructure development, sports promotion, etc.
- Brand Name & Reputation: Cairn India & Vedanta Limited are big companies with years of experience and expertise. They have a stronghold over the market and have maintained a high reputation over the years.
Weaknesses of Cairn India
Weaknesses are hurdles to a company’s success in some areas of strategy – in other words, what a company does not do well. Cairn India’s weaknesses are as follow:
- Shortage of Technical & Financial Resources: The business has experienced a shortage of technical and financial resources, which has reduced its ability to grow its service locally and globally.
- Strong Government Regulations and Policies: There are strong government rules and regulations that make operational efficiency low and create a hindrance in the working of a company.
Opportunities for Cairn India
Opportunities are focused on positive external factors that can give an organization a competitive advantage. Opportunities for Cairn India are as follow:
- India’s Growing Energy Requirements: The nation accounts for about one-third of the world’s growing global energy demand by 2040. The oil demand of India is rising by 74 per cent to 8.7 million barrels per day by 2040 under the current policy framework.
- Increase in Fuel Demand Because of Industrialization: Economic growth policies designed to increase revenue and industry will increase energy consumption. As most of the energy needs of developing countries meet mineral burning, economic growth and industrial development policies will clash with sustainable development.
- The Demand-Supply Gap in India: The gap between demand and supply is widening in India. And it’s a great opportunity for Cairn India to take advantage of the excess demand in the market. By grabbing this opportunity Cairn India can increase its market hold.
Threats to Cairn India
Threats include anything that could disrupt your business externally. Cairn India’s threats are as follow:
- Reduction in Subsidies: Possibilities of reduction in subsidies on natural gas by the government of India causing a fall in demand.
- Policy Changes: Certain policy changes can create economic instability and volatility in the company which has always been a threat to the company.
- Rapid Changes in Technology: Now is the time of the Electronic Vehicles (EV) or Electric goods which can significantly affect the market of the oil & gas industry.
This ends our powerful SWOT analysis of Cairn India. let us conclude our learning below.
To Conclude
Cairn India is one of the largest companies in oil exploration and production in India. In the SWOT Analysis of Cairn India, we realised that it has a strong market position and with a robust system and advanced technology, they focus on CSR as well.
But they still face a shortage of technical and financial resources which is a matter of concern for the company. The company also faces a threat of changing government policies which could disturb its operational efficiency.
Cairn India still has a chance to grab a massive opportunity to take advantage of the growing energy requirement of India. India’s energy requirements are growing daily and companies like Cairn India can take part in resolving that gap and also grow themselves.
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