“Brand loyalty of BPCL and IOC”

Under the supervision of: - Submitted by:-

S.L.D.Pandey, Navneet Kumar

Lect. In SMS, Varanasi. PG/14/061

 DECLARATION

I am Navneet kumar an student of PGDM-2nd Sem. in School Of

Management Sciences, Varanasi hereby declare that the Industrial Analysis
entitle “Brand loyalty of BPCL and IOC” is the result of my own effort
and is raised on information collected and guidance given by my mentor &
faculty members.

The industrial analysis is correct to the best of my knowledge & this report
so far has not been published anywhere else.

Signatu
re (Navneet
Kumar)
 Preface

It is a great privilege for me to place this report before the reader. The report is
concern about “Brand loyalty of BPCL and IOC”. This report is presented in
very simple and understandable language on the basis of primary data.

Lastly I would like to state that although every possible care has been taken to
make the report error free but still the possibility of some error keeping
inadvertently cannot be ruled out. I shall be feeling highly obliged to all reader if
some are brought to my notice. Critical evaluation welcome and shall be grateful
acknowledge.

I sincerely express my gratefulness to all those who directly or indirectly, helped

me in this project. I firmly believe that there is always scope for improving and
accordingly I shall look forward for welcome suggestion in this direction from all
the reader and subject spiel, which shall be thankfully acknowledged.
 Acknowledgement

I am extremely grateful to Prof. P.N. Jha (Director General of SMS, Varanasi)

for given me this opportunity to carry out this project work.

I would like to thanks Mr. Alok Kumar (co-coordinator of PGDM) and my

supervisor Mr. S.L.D.Pandey for helping me in this project.

I also thanks to the respondent and my friends, without whose co-operation this
would not have been possible.
 Objectives

• Compare the services provided by BPCL and IOC.

• Study of the profit and income of the BPCL and IOC.

• To study the behavior of people towards the products of

BPCL and IOC.

• Study of the production capacity of the BPCL and IOC

products.

• Study of the production capacity of the individual refineries

of BPCL and IOC.
 Methodology

• Research is a careful investigation or enquiry through search

for the facts in any branch of Knowledge. Research
methodology refers to the method and techniques that are
used for activities involved in performing the research
operations such as making observation, recording data etc.

Sample size
• Sample size refers to the number to be selected from the
universe to constitute the sample for conducting the survey.
The sample size of this project is 100.

Data collection method

• This survey has been done through primary data collection.

For primary data questionnaire method has been adopted
for consumer. The questionnaire has close ended and open
ended.

Data analysis technique

• The data analysis technique used in statistical and

quantitative in nature and the data analysis and the
instrument used for conducting the research are tabulation,
bar chart and pie chart.

Benefits of the project

• This survey report help us to compare the services provided

by BPCL and IOC
• By this report one will come to know the financial condition
of BPCL and IOC.

• Form this report we will come to know about the consumer

satisfaction to the services provided by BPCL and IOC.

• This report will help us to know the production capacity of

BPCL and IOC and their refineries respectively.
 Contents

1. Introduction of the IOC.

2. Introduction of the BPCL.

3. Analysis of Question on the basis of the survey.

4. Findings

5. Limitations

6. Bibliography

7. Questionnaire
 INTRODUCTION

Background

India boosts a growing economy, and is increasingly a significant

consumer of oil and natural gas.

The Indian economy continues to show impressive economic growth. The

country’s real gross domestic product (GDP) grew at an impressive rate of
9.1 percent during the first half of fiscal2006 (April – September 2006), after
growing by 8.7 percent in fiscal 2005. Together with the country’s
impressive growth, India has also become a significant consumer of energy
resources. According to EIA estimates, India was the fifth largest consumer
of oil in the world during 2006. Energy Consumption in India is growing at a
steady rate of 6 per cent per annum, from 649 million tones of oil equivalent
(MTOE) in 1973 to 2019 MTOE in 1993, compared with a World average
growth rate of only 1.5 per cent per annum during the same period. Even at
this rate, the per capita consumption of energy is projected to increase by
145 per cent by the year 2010 from 226 Kg to 554 Kg of oil equivalent. Oil
consumption is likely to grow by 5.25 per cent per annum to 149 MMT by
the year 2010 from 62.4 MMT in 1993-94, assuming a modest GDP growth
rate of 5 per cent. The share of oil and gas in primary energy consumption in
India would be in the range of 38 to 40 per cent compared with the world's
average of 60 to 61 per cent. To meet the projected oil demand of the early
21st century, the estimated magnitude of investment is between 100 and 150
billion US dollars during the next 10 to 15 years. India will need over 700
million barrels of petroleum products per year by the turn of century.
Additional refining capacity of 70 to 80 Million Tonnes per annum will be
required by the year 2010 for domestic consumption alone. Distribution
infrastructure such as cross-country pipelines, port terminals, tank ages and
strategic reserves build up, will have to be developed during next 5 to 7
years to meet the projected oil requirements. Under the economic
liberalisation policy, the most of petroleum sector has been opened up to the
private 70 sector for investments through joint ventures and strategic
alliances, and the policy offers competitive terms under international
standards for the world's petroleum industry to participate in the
development of India's Petroleum Sector. The Government is committed to
providing a level playing field for all operators in the entire Petroleum
Sector.
 INTRODUCTION OF IOC

Indian Oil Corporation

Limited

PSU (Trading on
Type
BSE & NSE)
Founded 1964
Headquart
New Delhi, India
ers
Sarthak Behuria,
Key people
Chairman
Petroleum
products = Petrol,
Industry Diesel, Kerosene,
LPG,
Petrochemicals
▲ र. 2474.79

Revenue billion or $61.7

Billion [1] (2007-
2008)
US$ 1.96 billion
Net
(2007) ▲ 12.9%
income
from 2006

Indian Oil is currently metamorphosing from a pure sect oral company with
dominance in downstream in India to a vertically integrated, transnational
energy behemoth. The Corporation is already on the way to becoming a
major player in petrochemicals by integrating its core refining business with
petrochemical activities, besides making large investments in E&P and
import/marketing ventures for oil & gas in India and abroad.

Vision

A major diversified, transnational, integrated energy company, with national

leadership and a strong environment conscience, playing a national role in
oil security & public distribution.

Distinctions

Indian Oil Corporation Ltd. (Indian Oil) is India's largest commercial

enterprise, with a sales turnover of Rs. 2,47,479 crore (US $ 61.70 billion)
and profits of Rs. 6,963 crore (US $ 1.74 billion) for the year 2007-08.
Indian Oil is also the highest ranked Indian company in the prestigious
Fortune 'Global 500' listing, having moved up 19 places to the 116th position
in 2008. It is also the 18th largest petroleum company in the world.

India’s Downstream Major

Beginning in 1959 as Indian Oil Company Ltd., Indian Oil Corporation Ltd.
was formed in 1964 with the merger of Indian Refineries Ltd. (established
1958). Indian Oil and its subsidiaries account for 49% petroleum products
market share, 40.4% refining capacity and 69% downstream sector pipelines
capacity in India. For the year 2007-08, the Indian Oil group sold 59.29
million tonnes of petroleum products, including 1.74 million tonnes of
natural gas, and exported 3.33 million tonnes of petroleum products. The
Indian Oil Group of companies owns and operates 10 of India's 19 refineries
with a combined refining capacity of 60.2 million metric tonnes per annum
(MMTPA, .i.e. 1.2 million barrels per day). These include two refineries of
subsidiary Chennai Petroleum Corporation Ltd. (CPCL) and one of
Bongaigaon Refinery and Petrochemicals Limited (BRPL).The
Corporation's cross-country network of crude oil and product pipelines,
spanning about 9,300 km and the largest in the country, meets the vital
energy needs of the consumers in an efficient, economical and environment-
friendly manner.
Indian Oil is investing Rs. 43,393 crore (US $10.8 billion) during the period
2007-12 in augmentation of refining and pipeline capacities, expansion of
marketing infrastructure and product quality up gradation as well as in
integration and diversification projects.

Network Beyond Compare

As the flagship national oil company in the

downstream sector, Indian Oil reaches precious
petroleum products to millions of people every day
through a countrywide network of about 34,000 sales points. They are
backed for supplies by 166 bulk storage terminals and depots, 101 aviation
fuel stations and 89 Indane (LPG gas) bottling plants. About 7,100 bulk
consumer pumps are also in operation for the convenience of large
consumers, ensuring products and inventory at their doorstep.IndianOil
operates the largest and the widest network of petrol & diesel stations in the
country, numbering over 17,600. It reaches Indane cooking gas to the
doorsteps of over 50 million households in nearly 2,700 markets through a
network of about 5,000 Indane distributors. Indian Oil’s ISO-9002 certified
Aviation Service commands over 62% market share in aviation fuel
business, meeting the fuel needs of domestic and international flag carriers,
private airlines and the Indian Defence Services. The Corporation also
enjoys a dominant share of the bulk consumer business, including that of
railways, state transport undertakings, and industrial, agricultural and marine
sectors.

Technology Solutions

Indian Oil’s world-class R&D Centre is perhaps Asia's finest. Besides

pioneering work in lubricants formulation, refinery processes, pipeline
transportation and alternative fuels, the Centre is also the nodal agency of
the Indian hydrocarbon sector for ushering in Hydrogen fuel economy in the
country. It is in the process of setting up a commercial Hydrogen-CNG
station at an Indian Oil retail outlet in New Delhi this year. It has
commissioned a bio-gas plant and bio-mass gasifier plant during the year
2007-08 for conducting research into energy-efficient bio-gas business
Indian Oil joined the league of global technology providers last year with the
selection of its in-house developed INDMAX technology (for maximising
LPG as yield) for the 4 MMTPA Fluidised Catalytic Cracking (FCC) unit at
the Corporation's upcoming 15 MMTPA refinery-cum-petrochemicals
complex at Paradip in Orissa, as well as for the FCC unit coming up at
BRPL.
A wholly-owned subsidiary, Indian Oil Technologies Ltd., is engaged in
commercialising the innovations and technologies developed by Indian Oil’s
R&D Centre.
Different refineries and production capacity of IOC

S Locatio Capacity(MMTP
.NO. n of the A)*
Refiner
y

1. Guwahati 1.00

2. Barauni 6.00
3. Koyali 13.70
4. Haldia 6.00
5. Mathura 8.00
6. Digboi 0.65
7. Panipat 6.00

*Million Metric tonne per annum.

Note:- the capacity of different year in 1/7/2007.

Analysis: - according the above table in Guwahati the production was 1.00 mmtpa,
in Guwahati it was 6.00 mmtpa, in Koyali it was 13.70 mmpta, in Haldia it was
again 6.00mmpta, in Mathura it was 8.00 mmpta, in Digboiit was 0.67mmpta and
in Panipat it was 6.00 mmpta.

Product from different refineries

1. Motor spirit

2. LPG Propylene

3. ATF (Air Turbine Fuel)

4. Naphtha

5. Sulphur

6. Heavy petroleum stock

ENERGY POLICY
To be a World Class Performer in Energy Management by

• Adopting energy efficient and environment friendly technologies.

• Benchmarking our performance with the best in the world and endeavoring
to be ahead.

• Promoting use of renewable sources of energy.

• Fostering a culture of participation and innovation amongst stake holders

for continual improvement in energy conservation.

• Propagating the message of avoiding wastage of energy to the community.

BPCL (Bharat Petroleum Corporation Limited)

Bharat Petroleum Corporation Limited

 Type PSU (Trading on BSE)
1976 (After nationalisation
Founded
of Burmah Shell Company)
Headquarters Mumbai, India
Ashok Sinha, Chairman &
Key people
MD
Industry Petroleum
Products Oil , LPG
USD $27.873 Billion (2007-
Revenue 2008) ▲ 27.5% from
(2006-2007)
Employees 14,729 (2007)
Website www.bharatpetroleum.com

Overview

Bharat Petroleum Corporation Limited (BPCL) is one of India's largest PSU

companies, with Global Fortune 500 rank of 287 (2008). It's corporate office is
located at Ballard Estate, Mumbai. As the name suggests, its interests are in
petroleum sector. It is involved in the refining and retailing of petroleum products.

Bharat Petroleum is considered to be a pioneer in Indian petroleum industry with

various path-breaking initiatives such as Pure for Sure campaign, Petro card, Fleet
card etc.

BPCL's growth post-nationalization (in 1976) has been phenomenal. One of the
single digit Indian representatives in the Fortune 500 & Forbes 2000 listings,
BPCL is often referred to as an “MNC in PSU garb”. It is considered a pioneer in
marketing initiatives, and employs “Best in Class” practices.

History

The 1860s saw vast industrial development. A lot of petroleum refineries came up.
An important player in the South Asian market then was the Burmah Oil Company
Ltd. Though incorporated in Scotland in 1886, the company grew out of the
enterprises of the Rangoon Oil Company, which had been formed in 1871 to refine
crude oil produced from primitive hand dug wells in Upper Burma.

The search for oil in India began in 1886, when Mr. Good enough of McKillop
Stewart Company drilled a well near Jaypore in upper Assam and struck oil. In
1889, the Assam Railway and Trading Company (ARTC) struck oil at Digboi
marking the beginning of oil production in India.

While discoveries were made and industries expanded, John D Rockefeller

together with his business associates acquired control of numerous refineries and
pipelines to later form the giant Standard Oil Trust. The largest rivals of Standard
Oil - Royal Dutch, Shell, Rothschild’s - came together to form a single
organization: Asiatic Petroleum Company to market petroleum products in South
Asia.

In 1928, Asiatic Petroleum (India) joined hands with Burmah Oil Company - an
active producer, refiner and distributor of petroleum products, particularly in
Indian and Burmese markets. This alliance led to the formation of Burmah-Shell
Oil Storage and Distributing Company of India Limited. A pioneer in more ways
than one, Burmah Shell began its operations with import and marketing of
Kerosene. This was imported in bulk and transported in 4 gallon and 1 gallon tins
through rail, road and country craft all over India. With motor cars, came canned
Petrol, followed by service stations. In the 1930s, retail sales points were built with
driveways set back from the road; service stations began to appear and became
accepted as a part of road development. After the war Burmah Shell established
efficient and up-to-date service and filling stations to give the customers the
highest possible standard of service facilities.

Specific areas in which Research & Development is been carried out by the
company.
 • Catalytic Process

• Clean Fuel Technology

• Residue Up gradation

• Energy Efficiency Improvements.

• New Product Development

• Detailed Crude Evaluation and crude compatibility studies

• Value added products

• Modeling and simulation of refinery processes

• Corrosion and Fouling

• Analytical methods development

• Alternate fuels

• High performance diesel engine oil

• Coal / Residue Technologies

• Effluent Treatment Technology

• Rolling oil for steel Industry

• Metal working oil for Aluminum

• Heat Treatment Oil

• Defense Specific grades of Lube oil

The following are the benefits derived as a result of the above R&D

• Improved yield of distillates.

 • Cost effective LPG additive for cutting gas applications developed.

• Simulation and Modeling resulted in improved prediction and plant

optimization.

• Crude evaluation resulted in enlargement of crude basket and processing

opportunity crudes.

• Improved heat recovery due to usage of optimum anti foul ants for Crude
and Vacuum residue.

• Advanced Technical support to Refinery and Marketing.

• Production of High performance Group II Lube oil base stock.

Future Plans
• Residue up gradation for value addition

• Development of new process Technologies.

• Enlargement of crude basket and processing of crude blends and opportunity

crude

• Value added products and solvents from refinery streams.

• Bio technological processes

• Alternate fuels I.e. Bio Diesel, Ethanol & Hydrogen

• Extended R&D services to other group refineries.

• Coal / Residue Technologies

• Customer specific Metal working Fuel

• Passenger car engine oil for major OEM

• Fully synthetic gear oil (75W-90)

• Defense Specific grades of Lube oil

• High performance grease.

BPCL Refineries
Numaligarh Refinery Ltd

Consequent to acquisition of IBP's stake in NRL, by BPCL on 31.03.01, BPC has

the controlling stake in NRL standing presently at 62.9% of paid up equity
aggregating to Rs 4632 million out of Rs 7356 million The Numaligarh refinery at
Assam has started commercial production during the year with the last unit i.e.
Hydrocracker commissioning in June 2000. A total of 1451 TMT of crude was
processed in this 3 MMTPA refinery in the very first year of operation. The crude
oil is being received through a pipeline from the oil fields of Oil India Ltd. and Oil
& Natural Gas Corporation in Assam. The products are being dispatched by road
and rail from its marketing terminal to the consumption centers. NRL has been
declared a Mini Ratna Company.

In order to meet the demand of domestic LPG in the region, a 10000 MTPA
capacity LPG bottling plant is being set up within the marketing terminal premises
of Numaligarh Refinery. The plant estimated to cost Rs.80 million,. The
Government of India in its commitment to provide expeditious development in the
North Eastern region has extended various incentive packages for the benefit of
this project. Some of the incentives include the Excise exemption benefit for a
period 10 years, freight subsidy scheme till March 2002, income tax holiday for a
period of 7 years and reduced interest rate of 10% for initial 3 years by OIDB.
These incentives would go a long way in improving the profitability of the
Numaligarh Refinery under the de-regulated scenario and the refinery is expected
to earn a reasonable rate of return on investment from the very beginning.
International Safety Rating System (ISRS) audit for level award was conducted by
DNV in Mumbai and NRL has achieved excellent rating of “Level 9”. The
Greentech Foundation Silver award in Petroleum Refining Sector for Outstanding
Achievement in Environmental Management for year 2003-04 was also received
by NRL.

The Company has achieved a turnover of Rs.42.90 billion for the period ending
31.3. 03 was and PAT Rs.4092 million. The company has declared a dividend of
.Rs 1.70 per share.
 Analysis of
Questionnaire

1.Q which LPG cylinder you are using?

Response
LPG brand No. of
Respondents

Bharat gas 48

Indane gas 52

Any other 0

Graphical
representation
Analysis: - According to my survey out of 100 I found that there are 48 users of the
Bharat gas and 52 users of the Indane gas, and because of non availability of any
other LPG service provider there is 0 number of response towards the third option
that is any other (asking about the any other LPG brand). If we analyze the
response of people towards the exists LPG gas there is not very much difference in
the choice of people. There is difference of just four people.

2.Q you choose this cylinder because……………..?

Response

Options No. of respondents

The service station is 75 Graphical representation

near to your house is given on the next page

They are providing good 20

services

Any other reasons 5

Analysis:-

If we do the analysis of the above graph then we can say that most of the people
uses the any brand of LPG because of easy excess. They are not very much
concerned about the brand. Only some of the people go with the brand. 5 people
among the sample of 100 have some other reasons like it is recommended by
anyone.

3.Q Are you satisfied with the service provided by the LPG company?

Response:-

Options No. of
respondents

Yes 63
No 37

Graphical representation

Analysis:- according to the above graph and table there are 63 people who are
satisfied with the service provided by the LPG company but there are 37 people are
also there who are not satisfied to the service provide by the company. People give
their different suggestion why they are not satisfied with the services provided by
the companies even the person who is satisfied the also give their suggestion in
order to make it better.

Suggestions and reasons for dissatisfaction

1.The duration to get filled the exhaust cylinder is 30 days, according to

people it should be reduced.
2.People says many time they get an less amount of gas in the cylinder so it
should be according to the norms.

3.Some time people got an cylinder which they latter found leak, so there
should be solution for that.

4.People have to stand in the long ques to get the cylinder filled.

5.Sometimes people don’t get the delivery on time and they have to face the
difficulties.

6.People found sometime the cylinder is sold by the authorities illegally so

there should be solution for that.
 4.Q who recommend you to use this LPG?

Response

options No. of
responses
Friends/neighbors/relatives 72
Etc.
company 25

Any other resources 03

Graphical representation:-

Analysis:- according to response of people 72 out of 100 people was

recommended to use the LPG by their friends, relatives, neighbors etc . 23 people
says they were recommended by the company and 3 people says that they choose
this LPG by another reasons like by their own they choose this LPG.
 5.Q Have you use any other any LPG brand?

Response

Options No. of
responses
Yes 34

no 66

Graphical representation

Analysis:- 34 out of the 100 uses the other LPG brand and 64 are stuck with the
same brand.
6.Q what is the difference you observed in between two?

Response

options No. of responses

Difference of 05
quality
Difference of 00
price
Any other 07
difference

Graphical representation

Analysis :- above given graph shows that the 5 people thinks that there is
difference of qualities in different brand of LPG there is no difference of price is
observed in different brands of LPG 7 people give response observed the other
difference in the different brands.

8Q. which company’s petrol you are using?

Response

Options No. of
responses
Bharat 32
petroleum
Indane 35
petroleum
Any other 33

Graphical representation
Analysis:- according to the above graph there are 32 people who prefer the petrol
of Bharat petroleum and 35 people prefer to get filled the petrol of Indane
petroleum and 33 people are still there who prefer the other petroleum like HP,
Reliance etc.

9. Q you choose this brand petrol because…………….?

Response

options No. of
responses

Petrol pump 48
is near to
your house
Good quality 36

Other 16
reasons

Graphical representation
Analysis:- if we see the above graph then it can be easily observed that most of the
people have an excess of brand because of the easy accessibility and after that 36
people go with the quality of the petrol and 16 people go with the other reasons
like price of the petrol

10. Q Are you satisfied with the quality of petrol?

Response

options No of
responses

Yes 83

No 17

Graphical representation
Analysis:- if see the graph then it is clearly observed that most of the people
satisfied with the quality of petrol and only few are not satisfied on the next page
some suggestion and reasons for dissatisfaction is given.

Suggestions:-

1. According to people there is difference of quality is there they said that

vehicle give a different mileage by getting filled petrol to the different petrol
pumps.

2. Some of the thinks says that petrol pump owner mixing the kerosene oil in
the petrol.

3. People says that the sometimes they get the less amount of petrol.
11.Q Who recommend you to use this brand’s petrol?

Response

Options No. of responses

Friends/neighbors/relatives 62
etc.
Any vehicle company 03

Any other resources 35

Graphical representation
Analysis:- as it is shown it the above graph most of the people are advised by the
other people and some get awareness by their own, only three people says they are
advised by the any vehicle company.

12.Q Have you used any other brand’s petrol?

Response

options No. of
responses

Yes 80

no 20
 Graphical representation

Analysis:- above graph shows that 80 people out 100 used different brand’s petrol
and only 20 people is stuck to only one.

13.Q What is the difference observed in between these two?

Response

Options No. of
responses
difference of 52
quality
Difference 48
of price
Any other 00
difference

Graphical representation
Analysis: - the person who uses different brand’s petrol observed that there is
difference of quality and as well as price in the different brand’s petrol.

14.Q Have you recommend this petrol to anyone?

Response

Option No. of
responses’
Yes 53

No 47

Graphical representation
Analysis:- according the above graph 53 people recommend this petrol to any one
and 47 people give response they haven’t recommend it .
FINDINGS

TOTAL INCOME OF IOC & BPCL

 Graphical representation

Rs(In Mar 02 Mar 03 Mar 04 Mar 05 Mar 06 Mar 07

crores)
IOC 116304.9 125990.6 137586.3 158139.4 201908. 256164.55
8 3 2 8
BPCL 42557.03 49049.93 54575.53 65607.19 85668.0 108226.27
4

Interpretation:-

According to the above graph it is clearly shown that there is

continuous growth in the income of the both IPC and BPCL and the one more
thing is that the income of IOC is greater than BPCl in all the year.
 TOTAL SALES OF IOC & BPCL

Rs(In Mar 02 Mar 03 Mar 04 Mar 05 Mar 06 Mar 07

crores)
IOC 115182.42 124378.83 135908.93 156768.6 199430.91 250380.17

BPCL 42274.04 48578.49 54084.41 63857.01 85149.62 107452.27

Graphical Representation

Interpretation:-

Form the above graph there is continuous growth in the sales of

BPCL and IOC and again the sales of IOC is more than the BPCL in the respective
years.
 TOTAL EXPENSES OF IOC & BPCL

Rs(In Mar 02 Mar 03 Mar 04 Mar 05 Mar 06 Mar 07

crores)
IOC 113059.1 122288.01 131310.98 154902.69 199593.77 248485.26

BPCL 41370.21 49266.57 52596.94 66227.64 86130.83 106626.33

Graphical representation

Interpretation:-

Again in the expenses there is continuous growth BPCl and IOC and
the expenses of IOC is more than the BPCL.

PROFIT BEFORE TAX OF IOC & BPCL

 Rs(In Mar Mar Mar Mar 05 Mar 06 Mar 07
crores) 02 03 04
IOC 4598.66 8413.09 9729.71 5954.43 6704.74 10448.02

BPCL 1340.89 1978.19 2623 1392.94 432.16 2760.71

Graphical Representation

Interpretation:-

According the above graph there is increase in the PBT of IOC

from 2002 to 2004 then there is decrease in PBT in 2005 again the PBT starts
increasing and it increase till 2005, the BPCL also follows the same trend in the
PBT, and throughout the PBT of IOC is more than the BPCL.
 Rs(In Mar 02 Mar 03 Mar 04 Mar 05 Mar 06 Mar 07
crores)
IOC 2883.92 6113.98 7004.07 4890.63 4914.36 7498.56

BPCL 849.83 1250.03 1694.56 965.8 291.61 1805.38

PROFIT AFTER TAX OF IOC & BPCL

Graphical Representation

Interpretation:-

The PAT also follow the same trend which the PBT follows according
the above graph there is continuous increase in the PAT of IOC from 2002 to 2004
but after that there fall in the PAT in 2005 an it got stable for the year 2006 then
after that again there is growth in the year 2007.

NET WORTH OF IOC & BPCL

Rs(In
crores) Mar 02 Mar 03 Mar 04 Mar 05 Mar 06 Mar 07

IOC 15311.02 18927.99 23047.41 25984.36 29302.67 34857.29

BPCL 3997.38 4747.43 5849.72 6388.42 9139.42 10273.53

Graphical representation

Interpretation:-

There is continuous growth in the net worth of the BPCL and

IOC but if we have to compare these net worth if IOC is more than the BPCL.
 IOC & BPCL REFINERY THROUGHPUT

UNIT(Lakh
Tonnes) Mar-02 Mar-03 Mar-04 Mar-05 Mar-06 Mar-07

Indian Oil 337.61 352.88 376.59 366.28 385.22 440.01

Bharat Petroleum 155.41 162.91 166.11 170.62 102.98 139.58

Graphical representation

IOCL & BPCL REFINERY THROUGHPUT

500
UNIT(In Lakh Tonnes)

400

300 Indian Oil

200 Bharat Petroleum

100

0
Mar-02 Mar-03 Mar-04 Mar-05 Mar-06 Mar-07
YEAR

Interpretation:-

According to the above graph and table there is no continues trend in

the production output in the BPCL and IOC if we are talking about the production
of IOC initially in the 2002 to 2004 it increases and after that there is bit
decrement in 2005 then after that it again increases and keep increases till 2007,
In the BPCL the trend is more or less same but the production of the IOC is much
greater than the BPCL in all the years.
 IOCL REFINERIES THROUGHPUT

UNIT(Lakh
Tonnes)
Mar-02
Mar-03
Mar-04
Mar-05
Mar-06
Mar-07

IOCLGuwahati
Refinery
6.56
4.58
8.91
10.02
8.64
8.39

IOCLBarauni
Refinery
28.76
29.94
43.04
50.82
55.53
54.69

IOCLKoyali
Refinery
116.97
124.34
127.58
116.98
115.43
129.53

IOCLHaldia
Refinery
40.26
45.13
45.18
54.18
55.02
58.36
IOCLMathura
Refinery
80.31
82.07
82.48
63.87 Graphical representation
79.38
88.83
IOCL REFINERIES THROUGHPUT

IOCLDigboi
140
IOCLGuwahati Refinery
Refinery
120
UNIT(Lakh Tonnes)

IOCLBarauni Refinery
100 6.53 IOCLKoyali Refinery
80 5.81 IOCLHaldia Refinery
60 6.02 IOCLMathura Refinery
40 6.51 IOCLDigboi Refinery
20 6.15 IOCLPanipat Refinery
0 5.86
2002 2003 2004 2005 2006 2007
YEAR
IOCLPanipat
Refinery
58.22
61.01
63.38
63.9
65.07BPCL REFINERIES THROUGHPUT
94.35
UNIT(Lakh
Tonnes) Mar-02 Mar-03 Mar-04 Mar-05 Mar-06 Mar-07
Mumbai
Refineries 87.44 87.11 87.57 91.38 102.82 120.3

Kochi Refineries 67.97 75.8 78.54 79.24 69.39 19.28

Numaligarh
Refinery 23.07 18.79 22 20.42 21.33 25.04

Graphical Representation
 BPCL REFINERIES THROUGHPUT

140
120
UNIT(Lakh Tonnes)

100
Mumbai Refineries
80
Kochi Refineries
60
Numaligarh Refinery
40
20
0
2002 2003 2004 2005 2006 2007
YEAR

INTERPRETATION:-

We can see all BPCL refineries throughput in the above

graph after saw above graph we can say that Mumbai refinery throughput is
more than BPCL other refineries from mar- 2002 to mar- 2007.Numaligarh
refinery throughput is lesser than other refinery because of low capacity. In
mar-2007 there was an emergency shut down for the expansion of Kochi
refinery capacity.

GROWTH IN IOCL & BPCL REFINERY THROUGHPUT

UNIT(Lakh
Tonnes) Mar-02 Mar-03 Mar-04 Mar-05 Mar-06 Mar-07
Indian Oil 337.61 352.88 376.59 366.28 385.22 440.01
Bharat Petroleum 155.41 162.91 166.11 170.62 102.98 139.58

Graphical Representation
 GROWTH IN IOCL & BPCL REFINERY THROUGHPUT

500
UNIT(LAKH TONNES)

400

300 Indian Oil

200 Bharat Petroleum

100

0
Mar-02 Mar-03 Mar-04 Mar-05 Mar-06 Mar-07
YEAR

Interpretation

We can see from above graph IOCL grows better than

BPCL in refinery throughput. But BPCL growth line from mar-2002 to mar-
2005 shows better Performance than IOCL in respect capacity. In 2006 there
was great fall in BPCL growth due to emergency shutdown in Kochi
refinery.

IOCL PRODUCTS PRODUCTION

 Mar Mar Mar Mar Mar
Products(in tonnes) 2003 2004 2005 2006 2007
Industrial Explosives (Cartridge) 6
Lab Plant 0.46 1.12 1.22
Lubricants & Greases [Tonnes] 146 166 165 432 394
Mtbe Unit 0 0 0 2 24
Petroleum Products [LakhTonnes] 332.79 354.66 340.87 356.55 398.84
Propylene Recovery Unit 25 0 22 18 14
Px/Pta Plant 197
Site Mixed Slurry Explosives 42
Wax/Bitumen Asphalt/Lube Oil
Drums (In Nos.) 509 0 377 398 445

Graphical Representation

On the next page…

……………….
 IOCL PRODUCTS PRODUCTION

600

500

400
TONNES

300

200

100

0
Mar 2003 Mar 2004 Mar 2005 Mar 2006 Mar 2007
Industrial ExplosivesYEAR
(Cartridge)
Lab Plant
Lubricants & Greases [Tonnes]
Mtbe Unit
Petroleum Products [LakhTonnes]
Propylene Recovery Unit
Px/Pta Plant
Site Mixed Slurry Expolsives
Wax/Bitumen Asphalt/Lube Oil Drums(In Nos.)

INTERPRETATION:
we can see from above graph Wax/Bitumen Asphalt/Lube
drums and Lab Plant production is high during all years of production.

BPCL PRODUCTS(PRODUCTION CAPACITY OF REFINERY)

 Mar Mar Mar Mar Mar
Products(In Tonnes) 2003 2004 2005 2006 2007
Benzene 105700 105700 105700 192900 192900
Bitumen Emulsion (Single
Shift) 27600 27600
Cable Jelly (Single Shift) 2500 2500
Diesel Additive (Single Shift) 1500 1500
Fuel Refinery 69000 69000 69000 195000 195000
Lube Oil Base Stock (Lobs) 180000
Lubricants (Tonnes) 90 181 181 181 181
Mixed Aromatic Solvent 15000 15000
Mtbe 30000 30000
Natural Rubber Modified
Bitumen 65000 65000
Others (Poly Isobutene Unit) 1000 1000
Petroleum Hydrocarbon Solvent 8820 8820
Poly Isobutene 5000 5000
Poly Propylene Feedstock 60000 60000 60000
Polybutene Feedstock 6300
Propylene 15000
Solvent (Food Grade Hexane) 25000 25000 25000
Solvent (Sbp 55-115) 40000
Solvent (Spb-55-115) 40000 40000
Sulphur 30000 30000 30000 30000 117667
Toluene 23100 23100 23100 35100 73100

Graphical representation

On the next page………….

 BPCL PRODUCTS (PRODUCTION CAPACITY OF REFINERY)

250000

200000
TONNES

150000

100000

50000

0
Mar 2003 Mar 2004 Mar 2005 Mar 2006 Mar 2007
YEAR
Benzene Bitumen Emulsion (Single Shift)
Cable Jelly (Single Shift) Diesel Additive (Single Shift)
Fuel Refinery Lube Oil Base Stock (Lobs)
Lubricants (Tonnes) Mixed Aromatic Solvent
Mtbe Natural Rubber Modified Bitumen
Others (Poly Isobutene Unit) Petroleum Hydrocarbon Solvent
Poly Isobutene Poly Propylene Feedstock
Polybutene Feedstock Propylene
Solvent (Food Grade Hexane) Solvent (Sbp 55-115)
Solvent (Spb-55-115) Sulphur
Toluene

Interpretation:

we can see from above graph Benzene production is high

during all years of production.
Conclusions
 Conclusions

After analyzing the whole data we can conclude that IOCL is performing better
than BPCL in respect of total sales, total income, & even in the respect of profit
margin i.e. Profit after taxes & profit before taxes in India...

Now the matter arises that who has contributed the most in the refining process
towards the overall industry, in this case we can conclude by looking towards the
performance of contribution of Petroleum production by IOCL & BPCL towards
the Indian Petroleum industry that IOCL has contributed more than the BPCL in
India since 2002.
LIMITATIONS
 Limitation

Though the study give the deep exploration but still it have an some limitation:-

1. Because of the short duration of time I have to take the small sample size
that is 100, I think if I’d have an time then it could studied in more better
way.

2. Sometime people hesitate to give their opinion and personnel detail so that’s
why all the sample were not on the best of knowledge of them.
 Bibliography:-

• www.google.com (search engine)

• www.petroleum.nic.in

• www.iocl.com(IOCL Annual Report)

• www.bharatpetroleum.com (BPCL Annual Report)

• www.wikipedeia.com (Search engine)

 Questionnaire

Questionnaire for field survey

Dear Sir/Madam,

Kindly fill this questionnaire containing your profile. This is meant

for the study of “Brand loyalty of BPCL and IOC”. This field survey
is conducted by the student of School of Management Sciences,
Varanasi. Which is a part of curriculum and approved by AICTE? It
is assured that the information will be used for the said purpose
and will be kept confidential. Kindly give your response to the
best of your knowledge, experience and belief.

Thank you,

Navneet Kumar,

School of Management Sciences, Varanasi.

Personal Details

Name (Optional)…………………………………………………………………
………

Address & Contact Details ……………………………………………………

………………………………………………………………………………………
………………………………………………………………………………………
………………………………………………………………………………………
………………………………………………………………………………………
………………………………………………………………………………………
………………….

Questions
Q1. Which LPG cylinder you are using?

a. Bharat gas

b. Indane gas

c. Any other (write details)

Q2. You choose this cylinder because………………?

a. The service station is near to your house.

b. They are providing the good services.

c. Any other reason (give detail)

Q3. Are you satisfied to the service provided by the LPG

Company?

a. Yes b. No

If No

Give your suggestions

………………………………………………………………………………………
………………………………………………………………………………………
………………………………………………………………………………

Q4. Who recommend you to use this LPG service?

a. Friend/Neighbors/relatives etc.

b. Company

c. Any other resources (give details)

Q5. Have you use any other LPG Brand?

a. Yes b. No
Q6. What is the difference you observed in between these two?

a. Difference of quality

b. Difference of price

c. Any other difference (give details)

Q7. Have you recommend this LPG to anyone?

a. Yes b. No

Q8. Which company’s petrol you are using?

a. Bharat petroleum

b. Indian oil

c. Any other (write details)

Q9. You choose this petrol because………………?

a. The petrol pump is near to your house.

b. Good quality

c. Any other reason (give detail)

Q10. Are you satisfied to the quality of petrol?

a. Yes b. No

If No

Give your suggestions

………………………………………………………………………………………
………………………………………………………………………………………
………………………………………………………………………………

Q11. Who recommend you to use this brand’s petrol?

a. Friend/Neighbors/relatives etc.
 b. Any Vehicle Company

c. Any other resources (give details)

Q12. Have you used any other brand’s petrol?

a. Yes b. No

Q13. What is the difference you observed in between these two?

d. Difference of quality

e. Difference of price

f. Any other difference (give details)

Q14. Have you recommend this petrol to anyone?

b. Yes b. No