Introduction:

Cairn India is public limited company, one of the largest oil and gas production and exploration companies all around India. It was founded in 1981 by Sir Bill Gammell. Through the standards of the company to adhere to corporate social responsibility,cairn is highly and extensively committed to the importance of investments whichare supposed to be a risk mitigation function through building a strong and positive relationship with stakeholders. The key served areas of company are Sri Lanka and India. It is part of Vedanta group which is globally, a natural resourcesdiversified group with wide range of interest in copper, zinc, aluminum, iron ore, lead, silver, etc.

As on 30^th September 2011, it has issued nearly 1,902,582,377 equity shares of Rs.10 each. In addition to this, the financial statement of Cairn India shows INR 175.2 billion in 2012-2013. It has been operating in India for 15 years, also, it has played an active role in exploring and developing oil and gas resources(Cairn_India, 2017).

Question # 01:

The oil and gas sector in Indiais supposedly impacting the decision-making of other sectors established in thecountry. There is high association between energy demand and economic growth of India.Thus, the need for energy or oil and gas is projected to grow more, thereby making this industry very conductive and favorable for investment related purposes.

Opportunities:

India is known for its rich experience in offshoring business services and there is an inevitable pool of talent to boot. As the international companies are seeking for lowering cost,there has been a flow of offshoring.

Cairn India Harvard Case Solution & Analysis

The market size is large, India is the largest contributor to non-OECD petroleum consumption growth. The consumption of oil rose in India by 8.3% year-on-year to nearly 212.7 million tons in the calendar year 2016, thereby making it the third largest country consuming oil all around the world.
India is one of the importers of liquefied natural gas and it is ranked on six number after South Korea, China and Japan, it accounts for approximately 5.8% of total trades globally. The domestic demand for liquefied natural gas is projected to be increased at a compound annual growth rate of 16.89%. Since the demand for natural gas is supposed to be increased in the forthcoming year, it might create opportunities for the offshore drilling business in India.
Saudi Aramco is contemplating to invest in petrochemical refineries in India, it is the largestoil exporter and intended to become a strategic partner with the country. The foreign investors supposedly have opportunities to make investment in several projects worth $300 billion in India as well.
The gap between demand and supply might also create opportunity for companies in the future (oil-gas-india, 2018).

Threats:

The largest exporter of petroleum to India is Iran, which can push the prices of oil, thereby resulting in increasing import oil bill on India and could affect the offshoring drilling business severely.
Subsidy burden which the industry could face due to policies made and imposed by the government of India (GOI), it could negatively affect its cash flows................
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