The economic and environmental strategies of India are underpinned by the constant concept of energy security.
The country is firmly focused on producing local sources of energy so as to avoid energy poverty, and in a year when India has become the fourth-largest global economy, the need for such security is stronger than ever.
This has put India’s energy producers on notice: step up or else. Indian Oil subsidiary Chennai Petroleum Corporation Limited (CPCL) has chosen the former, elevating H Shankar from the role of Director (Technical) to Managing Director.
“Now everything we do, we have to see through the lens of how it impacts the return to the stakeholders.”
The mechanical engineering graduate brings three decades of industry experience to the role, as well as a total and absolute dedication to the cause.
“I’ve had the advantage of working in all facets of the mechanical engineer’s role,” he tells The CEO Magazine. “And since joining Indian Oil many years ago, my personal journey has mirrored the growth of the company.
“I’ve been able to cover all the areas that matter and I’ve gained a 360-degree view of the business.”
From maintenance to project management and health, safety and environmental responsibilities, Shankar says he’s done it all, and it’s given him a very good head start in his new role, which took effect in April 2025.
“Because now, as leader, I need to focus on ensuring that the health, safety and environment is at the highest order,” he adds.
Changing times
Having spent so many years in the industry, Shankar says things have shifted since his early days.
“There was a time when you were expected to produce for a fixed return. We came from that place, but when the administered pricing mechanism was dismantled, things changed,” he explains.
Today, he adds, there’s much more emphasis on cost control and ensuring the reliability of a petroleum plant is high.
“It was a phenomenal shift and now everything we do, we have to see through the lens of how it impacts the return to the stakeholders,” he says.
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Experience in both disciplines has left Shankar with an eye for paradigm shifts, one of which has prompted a fundamental change in the fuel mixtures used.
“The area where we are working is to move into the region where a certain mix can be converted into value-added petrochemicals rather than fuel,” he says.
Demand for such niche products has grown and as it has, CPCL has developed more of them.
“We’re the only refinery in India that produces both wax and lubes, so we have a tremendous potential to make a good margin from these products,” he confirms.
Weathering volatility
Standing in the way of such a result is the volatility of crude and product prices.
“It has never been stable, but trying to value a project is tricky,” Shankar points out. “If there are major disruptors, the risk the project could expose us to is high. That affects a standalone refinery like ours; we need to be careful when innovating.”
Part of the solution is market analysis and knowledge, but even then, some things are beyond control.
“The Russia–Ukraine war actually had a positive effect in that crude oil was available at a discounted price,” he says. “But then the cost of raw materials went very high. There are many variables.”
“Over the next 18 months, we’ll be focusing on our core competency and bringing in more operational discipline.”
As a leader amid so much uncertainty, Shankar focuses on controlling what he can.
“Over the next 18 months, we’ll be focusing on our core competency and bringing in more operational discipline,” he reveals. “Once we’ve attained cost leadership across our portfolio, we can look to improve the existing product basket.”
There’s also the net zero target set for 2046, which Shankar says is factored into his various goals.
“Cost leadership comes first, then collaborative approaches for building up capacity and ramping up efficiency, after which we roll our path forward to net zero,” he says. “It’s going to be a busy time.”
Collaboration and trust
Aiding in the achievement of these goals is CPCL’s suite of key partners and allies.
“We have never been an ‘I will do everything’ company. We have to develop an ecosystem that means we don’t end up doing everything ourselves,” he explains.
Though much peripheral work is done internally – the company has its own desalination plant, for instance – there is a strong network of suppliers and stakeholders waiting in the wings, including Detect Technologies, which serves as a third-party pillar for workplace safety at CPCL, and vendors like L&T and Lummus Technologies.
“This network has been built over a long period of time across different platforms, and the level of satisfaction is quite high because there is a foundation of trust,” Shankar says.
“Fire in the belly is very important in a leadership position.”
Trust is a commodity throughout the industry these days, predominantly of the sustainable variety.
“As a fossil fuel industry, we need to be responsible to the extent that the environment is taken care of, but at the same time, we’re able to support the growth of the company and the country,” Shankar reflects.
“It’s a delicate balance and although there’s a long way to go before fossil fuels are displaced in a large way, my feeling of responsibility is that sustainability should be the major area in which we operate.”
With sustainability and safety so high on his list of responsibilities, it’s a good thing that Shankar is still so enthusiastic about doing his job to the fullest extent of his abilities.
“Fire in the belly is very important in a leadership position,” he says. “If it dies, you shouldn’t be in the position any longer. So I’m fortunate that mine is still burning.”
