Professional Documents
Culture Documents
RESEARCH, BHOPAL
MANAGERIAL ECONOMICS
Report on
PETROLEUM SECTOR
Introduction
Indian Oil Corporation, or Indian Oil, is an Indian public-
sector petroleum company. It is India’s largest commercial enterprise, ranking
105th on the Fortune Global 500 list in 2009. Indian Oil and its subsidiaries
account for a 47% share in the petroleum products market, 40% share in refining
capacity and 67% downstream sector pipelines capacity in India. 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 tons per year.
State-owned oil company that owns 10 of India's 18 refineries and owns &
operates the country's largest network of crude & product pipelines; corporate
office is in New Delhi; Indian Oil is India's largest company by sales.
PRODUCTS:
AutoGas
Indian Oil Aviation Service
Bitumen
High Speed Diesel
Bulk/Industrial Fuels: Furnace Oil, Light Diesel Oil, LSHS.
Indane Gas
SERVO lubricants & greases : Agricultural Spray Oils, Automotive Greases,
Automotive Lubricating Oils, Automotive Speciality Oils, Industrial Greases,
Industrial Lubricating Oils, Industrial Speciality Oils, Metal Working Oils, Railroad
Greases.
Marine Fuels & Lubricants
MS/Gasoline
Petrochemicals: LAB – HMW, LAB – LMW, PTA, Polymers.
Special Products: Benzene, CBFS, Food Grade Hexane, Jute Batching Oil, Micro
Crystalline Wax.
Superior Kerosene Oil
Oil Crude
Ans: Satisfactory services are very important to retain customers and we retain
our customers by providing satisfactory services. We try to be Transparent in our
dealing with our customers. We provide better services like water, air pressure,
acid etc.
Introduction
HPCL operates 2 major refineries producing a wide variety of petroleum fuels &
specialties, one in Mumbai (West Coast) of 5.5 Million Metric Tonnes Per Annum
(MMTPA) capacity and the other in Vishakapatnam, (East Coast) with a capacity
of 7.5 MMTPA. HPCL holds an equity stake of 16.95% in Mangalore Refinery &
Petrochemicals Limited (MRPL), a state-of-the-art refinery at Mangalore with a
capacity of 9 MMTPA. Another Refinery of 9 MMTPA is under construction in
Bathinda, Punjab by HMEL, a Joint Venture with Mittal Energy Investments
Pte.Ltd.
HPCL also owns and operates the largest Lube Refinery in India producing Lube
Base Oils of international standards. With a capacity of 335 TMT. This Lube
Refinery accounts for over 40% of the India's total Lube Base Oil production.
Presently HPCL produces over 300+ grades of Lubes, Specialties and Greases.
The marketing network of HPCL consists of 13 Zonal offices in major cities and
90 Regional offices facilitated by a Supply & Distribution infrastructure comprising
Terminals, Aviation Service Facilities, LPG Bottling Plants, Lube filling plants,
Inland Relay Depots, Retail Outlets (Petrol Pumps) and LPG & Lube
Distributorships.
Crude Refining and Marketing of finished Petroleum products is the core area of
the Corporation. Opportunities are also being explored to access new revenue
streams, and augment downstream businesses. Accordingly, HPCL has ventured
in Upstream activities (Exploration and Production) and piped gas distribution in
major cities
JOINT VENTURES:
Retail Plans - Branding Prerequisite for Future Growth: Given the commodity
nature of petroleum products and their limited demand growth, players are
increasingly focusing on establishing a brand identity so as to capture the market
share. Consequently, they are consciously investing in refurbishing and
upgrading their retail networks besides offering a higher value-added service mix
by setting up automated teller machines (ATM) and convenience stores at petrol
pumps. Their marketing strategies are thus aimed at differentiating service,
improving visibility and enhancing customer satisfaction. HPCL too has launched
a series of initiatives to enhance customer service standards. It has branded its
outlets as "Club HP," thereby assuring customers of quality standards in terms of
product quality and additional services.
Dividend Policy - Key Determinant of Future Financial Profile: The GoI has
been tapping public sector undertakings for higher dividends. In some
disinvestment cases like Videsh Sanchar Nigam Limited, it has also dictated
special dividends prior to reducing its stake in the company. Indian Oil
Corporation (IOC), Bharat Petroleum Corporation Limited (BPCL), HPCL and Oil
India Limited (OIL) have paid dividends of Rs 15.26 billion in 2002-2003. Any
significantly higher outflows could adversely impact their cash flows and
consequently, their future capital expenditure funding requirements.