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A Summer Training Project Report

A Summer Training Project


On

Marketing Plan & Project Analysis

At

BHARAT PUMPS AND COMPRESSORS LIMITED


(A Government Of India Undertaking)
NAINI, ALLAHABAD – 211006
U.P. INDIA
Ph. 0532-2687412, 2687413; Fax. 0532-2687075 e-mail: bpclindia@sancharnet.in

Duration (10-06-2009 to 29-07-2009)

SUBMITTED TO:
Mr. R.B.Singh
Administrative Officer
Bharat Pumps And Compressors Ltd.
Naini, Allahabad
SUBMITTED BY:
Peush Prabhakar
M.B.A.
Reg. No. – VT/168/M.B.A./09
H.I.M.C.S.
Farah, Mathura
U.P.
e-mail: peush_prabhakar_2007@yahoo.co.in

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CONTENTS

• INTRODUCTION
• ACKNOWLEDGEMENT
• PREFACE
• OVERVIEW

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INTRODUCTION

Bharat pumps & compressors ltd. Incorporated 1970 was established at Naini,
the Trans yamuna area of Allahabad with objective to design, manufacture and supply
of capital goods in the fluid handling field including provision of services connected
therewith.

BPC which caters to the need of core sector of the economy such as oil
exploration, refineries, petrochemical, chemical and fertilizer, process industries
nuclear and thermal power plant had in its earlier phases entered into technical
collaboration with world renowned manufacturers of indigenously design and
manufacture heavy duty centrifugal and reciprocating pumps, reciprocating
compressors and high pressure gas cylinders and other hi-tech oil filed equipments
such as cementing units, suckers rod pumps etc.

In a very short span, the company absorbed the technology and established
itself as the world renowned manufactured of a wide range of hi-tech products. BPC
has supplied its products to the total satisfaction if the customers in almost all national
projects of companies like ONGC, OIL, BPCL, IOCL, HPC, RCF, Nuclear Power
Corporation, Deptt. Of Atomic Corporation, Deptt. Of Atomic Energy, IPCL etc.

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PREFACE

I did my summer training in BHARAT PUMPS AND COMPRESSORS


LIMITED, Allahabad. I completed my summer training for 50 days. I got training in
the study of Marketing Plan and Product Analysis, Financial department is also being
considered .

Hence I am presenting the training report of Marketing Plan and Product


Analysis. All the mistakes and problems had been carefully removed with the help of
all the managers.

So I am thankful to all the managers of BPCL

Peush Prabhakar
MBA (IInd Semester)
Hindustan Institute Of Management
And Computer Studies

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ACKNOWLEDGEMENT

After completing my IInd semester curriculum. I went for summer training for
6 weeks duration and it bears inspirit of several person.

I have achieve this training in one of the most esteemed organisation of the
country BHARAT PUMPS AND COMPRESSORS LIMITED, NAINI,
ALLAHABAD for their kind permission to undertaken its study I am grateful to my
respected Mr. R.B.Singh (Training Administrative Officer). For there moral support
and encouragement throughout my project work.

This list will go incomplete without the special reference of the contribution
and whole hearted support of manager’s and all other staff and department, which
truly reflect their deep insight into the project and the professional touch which is
their benchmark.

I express my sincere thanks to Mr. Yashvardhan Nagayach incharge (training n


placement department) Hindustan Institute of Management & Computer Studies, who
gave me professional advice from time to time.

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BPCL-NAINI (An Overview)

LOCATION- NAINI
Naini is a satellite township of the city of allahabad, located on the banks of river yamuna and
developed into an industrial centre. Some other manufacturing organizations located in Naini are ITI,
TSL, AREVA, SAIL, etc.
About:
Bharat pump & compressor ltd.,, Naini , allahabad is a certified integrated management systems
company having ISO 9001:2000, ISO 14001:2004, OHSAS 118001:1999 Includes Environment,
occupational health & safety Management systems, with the objective to design, manufacture and
supply capital goods in the fluid handling field including provision of services connected therewith.

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BPC caters to the need of core sector of the economy such as oil exploration and exploitation,
refineries, petro-chemical, chemicals and fertilizers, process industries and power plants and
indigenously designs and manufactures heavy duty centrifugal pumps, reciprocating pumps,
reciprocating compressors and high pressure seamless gas cylinders and other hi-tech oil field
equipments such as cementing units, sucker rod pumps etc.
BPC : VISION
• To become an Indian MNC in the field of fluid handling, gas compression, gas storage
equipment, services and project management.

BPC : MISSION
• To provide quality products and services to core sector industries with special thrust on oil and
natural gas, petro chemicals, refineries, nuclear and thermal power plants, fertilisers and
public transport services complying to health and safety requirements.

BPC : OBJECTIVES
• To increase market share of their products and services.
• To maximise customer’s satisfaction by providing quality product and services within
stipulated delivery.
• To increase the business of spares and rendering prompt after sales service including
refurbishment.
• Achieve export turnover of 15% by 20009-10.

BPC is the only company in Asia to manufacture a wide range of high tech products, heavy duty
pumps and compressors and high pressure seamless and welded gas cylinders, under one roof. Such
high valued hi-tech products are functioning to the total satisfaction of the customers with least
maintenance cost and optimum energy.
BPC is the exclusive manufacturer in the country of carbonate and ammonia pumps for fertilizer
plants, mud pumps, cement pumping units and high pressure reciprocating gas compressors for the oil
and gas industry.
The company’s important clients to name a few are the following : ONGC, IOC, IPC, GAIL, IOL and
the Department of atomic energy.

CAPABILITIES:

• Such high valued hi-tech products are functioning to the total satisfaction of the customers
with least maintenance cost and optimum energy conservation. BPC, the ISO 9001:2000,
ISO 14001:2004, OHSAS 18001 :1999 Company, manufactures highly technically
sophisticated and environmentally friendly products, equalling International Standards of
quality and performance with the support of a most modern and sophisticated machining
centre having latest CMC Machines, assembly, testing , heat treatment and fabrication
workshops.

• Test facilities. The factory is equipped for full load testing of various parameter for complete
product range up to 2000 KVA

• Quality Assurance. Quality Assurance Department ensures that the products-pumps and
compressors meet the specifications of international codes such as API and are fully
guaranteed for performance on the basis of proven and most updated designs. Gas cylinders
are manufactured as per specifications of international standards such as DOT, BS, BIS, ISO
etc. and usage approval from recognized national/international agencies.

COMPETENCY:

• Quality Assurance Programmes conform to International specifications and requirements.

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• Research and Development efforts are supported by test facilities for model testing in the
centrifugal pumps, reciprocating pumps and compressors area and also carry out live testing
of expendables etc.

• Fully groomed Installation, Commissioning and Spare Parts Division renders Product
Support, Technical Assistance and advice besides providing quick and effective after sales
service

• A strong Design Department has been established which houses Computer aided Design
Centre. Highly qualified, trained, experienced and competent engineers are involved in
application engineering, thermodynamic calculations, hydraulic calculations and systems
design in the area of piping, instrumentation, electrical, operational control etc.

• The company undertakes long term maintenance contract of the equipments installed and
commissioned at customers' plants, with the objective to maximise their profits and minimise
their risks.

CLIENTS

• Oil & Natural Gas Commission.


• Indian Oil Corporation.
• Hindustan Petroleum Corporation.
• Fertilizer Corporation of India Ltd.
• Indian Farmers Fertilizer Corporation.
• Gas Authority of India Ltd.
• Indian Petro-Chemicals Ltd.
• Madras Refineries Ltd.
• Oil India Ltd.
• Bharat Petroleum Corporation.
• Engineers India Ltd.
• National Fertilizer Corporation.
• Indo Gulf Fertilizers Corporation.
• Indraprastha Gas Limited.
• Bongaigaon Refineries & Petro-
Chemicals Ltd.
• Cochin Refineries Ltd.
• Tamil Nadu Petro-Chemicals Ltd.

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PRODUCTS
Centrifugal Pumps
Pumps for Application in Power Plants.
Pumps and Reciprocating Piston and Plunger Pumps.
Compressors Cementing Units.
Sucker Rod Pumping Unit.
Reciprocating Compressors.

High Pressure Seamless Industrial Gas Cylinders.


Welded Cylinders.
Gas Cylinders
Cylinders in Cascade for Storage of Compressed
Natural Gas (CNG)

Range of Products

Centrifugal Pumps Maximum


2500 KW
Power
Maximum
140 kg/cm2
Pressure
Maximum
12,000 M3/Hr
Capacity
Fluids Demineralised water, Sea water, Hydrocarbons,
Handled Neptha, LPG, Carbonate Solution, Boiler Feed
Water, Benefield solution, Alkaline and Acidic
Solution, Ammonia liquor and slurry
Reciprocating Pumps Maximum
1700 KW
Power
Maximum
675 kg/cm2
Pressure
Maximum
315 M3/Hr
Capacity
Fluids Drilling Mud, Cementing Slurry, Crude Oil steam,
Handled Condensate, Heavy Water, Fatty Acids, Ammonia
Carbonate, Liquid Ammonia, Water Injection
Reciprocating Compressors
Maximum Power 25,000 KW
Maximum Pressure 450 kg/cm2
Maximum Capacity 70,000 NM3/Hr
Fluids Handled Air, Nitrogen, Oxygen, Carbon Di-Oxide,
Hydrocarbons, Ammonia, Synthesis Gas, Hydrogen
Sulphate, Coal Gas etc.

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GAS CYLINDERS
Maximum Pressure 400 kg/cm2
Maximum Capacity 110 Litres.
Fluids Handled Oxygen, Nitrogen, Hydrogen, Argon, Air, Helium,
Carbon Di-Oxide, Nitrous Oxide, Acetylene,
Ammonia, Chlorine, Freon, LPG, Compressed
Natural Gas (CNG)

C.N.G.CYLINDER FOR VEHICLE USE


WORKING PRESSURE: 200 BAR (204 Kg/cm2)
TEST PRESSURE: 334 BAR (340Kg/cm2)
SPECIFICATION - IS: 7285-1988

WATER OUTER LENGHTH (L') (Approx) WEIGHT (APPROX)


CAPACITY IN DIA(D') in in mm in Kgs
LITRES mm TYPE-'A' TYPE-'B' TYPE-'A' TYPE-'B'
22 232 730 735 33.00 34.50
34 232 1045 1050 44.50 46.00
35 232 1070 1075 46.00 47.50
40 232 1200 1205 51.00 52.50
45 232 1335 1340 56.00 57.50
50 232 1465 1470 61.00 62.50
30 267 716 725 36.00 38.70
50 267 1115 1125 53.00 55.70
55 267 1215 1225 58.00 60.70
60 267 1315 1325 62.00 64.70
65 267 1415 1425 66.00 68.70
70 267 1515 1525 71.00 73.70

MANUFACTURING CAPABILITIES:

• Modern & sophisticated machine facilities having at least CNC machines, assembly, heat
treatment and fabrication workshop.

• In-house facilities of non destructive testing ultrasonic and chemical analysis, digital
balancing machine, most modern boring and honing machines.

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• CNC machines for manufacturing of high pressure industrial gas and CNC cylinders.

• Strong testing facilities for reciprocating compressors.

• Sophisticated standard room and modern tool room.

CUSTOMER SATISFACTION

In Time Delivery,
Installation
Commissioning of
Products

Common Long Term


Objective To Preventive
Maximise Profits Maintenance
And Minimise Contract - Low
Cost Of The Cost,
Customer Low Downtime

Just In Time Continuous


Spare Parts And Rapid
Management- Technological
Low Downtime Upgradation

On The Job Training Programme


For Customer Operational &
Maintenance Personnel

RIGHT TO INFORMATION ACT, 2005:


Right to information Act 2005(here-in-after called the act) provide for setting out the practical
regime of Right to information to secure access to information under the control of public authorities,
in order to promote transparency and accountability in the working of every public authority. Bharat
Pumps & Compressors Ltd., Naini, Allahabad - 211010(India) is a Public sector Enterprise.

POWER AND DUTIES OF OFFICER AND EMPLOYEES:

BPCL is a manufacturing unit and a commercial organisation. Power and duties of the
officials are well defined.

DECISION MAKING PROCESS:

The company is headed by Managing Director. Various functions of the organisation are
managed by product managers and departmental heads (listed below) who report to Managing
Director.

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Pump compressor design


DGM(PDD)

Pump compressor
Pumps and compressors Business unit CGM(W) production technology DGM(DESIGN-
TECH)

Pump & compressor


DGM(PCM)
manufacturing
Gas cylinder Business Unit DGM(GCD)
Spares part Business Unit SM (SPCD)
Marketing & EDP GM (Mktg )
Material management & stores GM (MM)
Quality Control & Quality Assurance DGM (QC & QA)
Engineering co-ordination & R & D. DGM (PDD & R&D)
Financial Services CGM (F S,ROs & CSR) & I/C- CS
Human Development , Welfare & PEX GM (PEX & HD)
Workshop services , Plant
GM (CS & PM)
Maintenance and Safety

As company in recent past was drowning so Government allotted some care takers for some
time so as to revive the company and make it a profitable venture, for that Government decided to set:

• E.I.L. – For Technology


• B.H.L. – For Management
• O.N.G.C. – For Funds.

NORMS FOR DISCHARGING FUNCTIONS:

• Conformance to systems ,procedures and Govt. guide-lines


• Efficiency and effectiveness in performance
• Good human relationship
• Integrity and fairness in all the matters
• Loyalty to company

RIGHT OF DISCHARGING FUNCTIONS:

BPCL has formulated the rules/guide-lines for conducting business in the company. Some major
guiding documents are listed below:

Articles and Memorandum of Association of the company

• Delegation of Powers
• Purchase Manual
• Works Manual
• Conduct, Discipline and Appeal rules
• Standing orders

Personnel policies and administrative orders


• Right To Information Act, 2005
• Power and Duties of Employees
• Decision Making Process

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• Norms for Discharge of Functions


• Rights of Discharging Functions
• Statement of Documentation
• Arrangements for Consultation
• Committees for Directions / Guidelines
• Directory of Company Employees
• Monthly Remuneration
• Information Facility for Public
• Public Information Officers
• Other Useful Information
STATEMENT OF THE CATEGORIES OF DOCUMENTATION:
BPCL holds the commercial and technical documents regarding business operation of the
company and data related to its employees.

ARRANGEMENTS FOR CONSULTATION:


BPCL has interfacing with various Govt. Departments and parliamentary committees.

COMMITTEES FOR DIRECTION/GUIDE-LINES:

BPCL has constituted committees to oversee its operation & provide directions/guidelines.
The meetings of these committees are neither open to public nor the minutes are accessible to the
public.

DIRECTORY OF COMPANY EMPLOYEES:


Details of all the employees are maintained by company.

MONTHLY REMUNERATION RECEIVED BY EACH OF THE COMPANY'S


OFFICERS AND EMPLOYEES (as on 01.07.09) ARE AS BELOW:-
Grade Designation Pay Scale (Rs.) Strength
E9 Managing Director 25750-650-30950 01
E8 Chief General Manager 20500-500-26500 02
E7 General Manager 18500-450-23900 04
E6 Deputy General Manager 17500-400-22300 10
E5 Senior Manager 16000-400-20800 19
E4 Manager 14500-350-18700 24
E3 Deputy Manager 13000-350-18250 77
E2 Senior Engineer 10750-300-16750 23
E1 Engineer 8600-250-14600 28
Total Executives 188
S3 Assistant Engineer 6400-180-10000 49
S2 Supervisor Grade-1 6000-160-9200 00
S1 Chargeman 5600-150-8600 09
Total Supervisors 58

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W10 Chief Foreman 8600-250-14600 37


W9 Senior Foreman 6400-180-10000 222
W8 Foreman(W) 6000-160-9680 269
W7 Senior Technician 5600-150-9350 143
W6 HSW 5270-145-8895 49
W5 SKW-I 4925-135-8300 26
W4 SKW-II 4725-125-7850 22
W3 SKW-III 4550-115-7425 12
W2 SSW 4350-100-6850 12
W1 USW 4150-90-6400 18
Total Non-Executives 810
GRAND TOTAL(Executives + Supervisors + Non Executives) = 1056

INFORMATION FACILITY FOR PUBLIC:


Nil. However company maintains a Library having technical books & specifications
for reference of employees

PUBLIC INFORMATION OFFICERS:


Names, Designations and particulars of Public Information Officer.
Mailing Address:
Bharat Pumps & Compressors Ltd
Naini, ALLAHABAD - 211010
Fax : 0532 - 2687075
E-mail : bpclindia@sancharnet.in

Public Information Officers Mr. M.Shahabuddin. 91-9935595359


DGM (MKTG)
Mr. Mohan Kumar 91-9935595377
DGM (GCD)

Senior Public Information Mr. A.K. Mathur, 91-532-2687417


Officer GM(Marketing) 91-9935595369

Public Grievance Redressal System:

A formal Complaint / Grievance handling procedure for all individuals except


(i) Employees
(ii) Vendors &
(iii) Customers
for whom a formal Grievance Redressal System already exists.

A "Grievance" for the purpose of this Scheme would mean, a cause of distress felt on account
of being wronged, to form a reason for complaint, relating to any Individual / Group (other than those
not covered under the Scheme), arising out of any decision taken by BPCL in relation to that

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Individual/Group.
A High-Powered Committee consisting of the following:
i) Head of Finance
ii) Head of P&A - Convenor
iii) Head of Department to which the Grievance is related,
decides on all the Grievances within 45 days of its receipt from the Personnel Grievance Officer(PGO)
and thereafter informs the aggrieved person about the decision of the Committee within 7 days
through the PGO. The decision given by the High-Powered Committee is final.

Grievances that will not be taken up include :


• Anonymous complaints / Frivolous cases / others in respect of which inadequate
supporting details are provided.
• Cases involving decisions/policy matters in which the aggrieved has not been affected
directly/indirectly.
• Cases where quasi judicial procedures are prescribed for deciding matters or cases that
are sub-judice.
• A grievance which has already been disposed of by the High-Powered Committee.
• Complaints of corruption. These are to be lodged separately with the Chief Vigilance
Officer.

Complaint should be registered to:


Mr. M. Shahabuddin
DGM (MKTG)
Bharat Pumps & Compressors Ltd.
Naini, Allahabad – 211010
E-Mail: ms@bharatpumps.co.in
Appellate Authority
Mr. A.K. Mathur
GM (Marketing)
Bharat Pumps & Compressors Ltd.
Naini, Allahabad – 211010
E-Mail: akmathur@bharatpumps.co.in

TENDER NOTIFICATION:

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Notification Date of Opening


BPT No. Description
Date of Bids
461- NON-RETURN VALVE 13.06.2009 04.07.2009
16720892-
264
461- FORGED BAR DIA 280X 15.06.2009 04.07.2009
16510791-
270
461- VANE CELL PUMP 15.06.2009 29.06.2009
2402019-
271
461- CONE. RED./ELBOW 15.06.2009 02.07.2009
16723691-
273
461- SMART LEVEL 15.06.2009 02.07.2009
1675279- TRANSMITTER
274
461- SHIMSET 18.06.2009 29.06.2009
16771343-
277
461- SET OF GASKET 19.06.2009 06.07.2009
16741991-
278
461- MACHINING OF 19.06.2009 06.07.2009
18020094- CONNECTING ROD
279
461- MACHINING OF 19.06.2009 06.07.2009
18020095- CONNECTING ROD
280
461- FLEXIBLE RUBBER HOSE 20.06.2009 06.07.2009
1677144- ASSLY
281
461- SET OF GASKET 20.06.2009 04.07.2009
16790391-
282
461- SET OF GASKET 20.06.2009 04.07.2009
16790392-
283
461- COMPLETE MECHANICAL 20.06.2009 06.07.2009
16790491- SEAL
284
461- 12 PAIR JUNCTION BOX 20.06.2009 09.07.2009
16736291-
285
461- SMART DIFF. PRESSURE 20.06.2009 06.07.2009
16753691- TEMP.
289
461- INCREMENTAL 21.06.2009 06.07.2009
2402028- SHAFTENCODER TYPE
291

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BOARD OF DIRECTORS

NAME DESIGNATION ADDRESS


PHONE EMAIL ID
NO
MANAGING
DIRECTOR,,
MANAGING
B.P.C.L. NAINI, 0532- akjain@bharatpumps.co.in
ABHAY KUMAR DIRECTOR
ALLAHABAD, 2687320
JAIN 211010, INDIA

DIRECTOR B 510 PRAGITI


VIHAR LODHI 011- r.manohar@nic.in
R. MANOHAR ROAD, NEW 23063707
(NOMINEE OF DELHI-110003,
GOVT OF INDIA) INDIA

DIRECTOR 690 ANNA SALAI 044- prshriram@bhelpssr.co.in


PALLESENA
NANDANAM, 24343382
RAJGOPAL
(NOMINEE OF CHENNAI-
SHRIRAM
BHEL) 600035, INDIA

DIRECTOR ONGC TEL


BHAWAN
S. DHANDAPANI
(NOMINEE OF DHERADUN – 0135- sdhandapani53@yahoo.co.in
ONGC) 248003 2793754

DIRECTOR 7045, SECTOR-B, 011- s.choubey@eil.co.in


POCKET-10,, 26101458
SHYAM
VASANT KUNJ,
CHOUBEY (NOMINEE OF NEW DELHI-
EIL) 110070, INDIA

HIGHLIGHT:

BPC marches ahead with turnover of Rs. 236.36 Crores (Growth 21.4% over last
year) and Profit before tax of Rs. 26.88 Crores for the Financial Year 2008-09

TSX [TECHNOLOGY] DEPARTMENT

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Motto:

To ensure the smooth flow of instruments to match that of material.

 Right M/C ~ Right Material ~ Right Tool ~ Right Job.

OBJECTIVES:

• To improve the quality of product.


• To increase the productivity.
• To reduce the cost.
• To optimize facilities and machine utilization.
• To enhance work culture, working conditions or environment.

5 M’s of Productivity:

• Money ~ Capital
• Man-Power ~ Workers(HR)
• Management ~ Planning
• Material ~ Direct / Indirect
• Methods ~ Technology

TECHNOLOGY FUNCTIONS:

1. To plan and specify methods and procedures for achieving special requirements.

2. Preparation of process sheets and procedures for specific processes and their qualification.

3. Designing jigs and fixtures, templates, special tools and gauges and initiate for the
manufacture or procurement.

4. Preparation of vendor process specifications for operations to be off-loaded.

5. to approve / amend / modify changes in the processes as per the requirements, if needed.

ORIGINATING DOCUMENTS FROM TSX

1. D.P.I. – For jigs and fixtures, thread rolls, gauges and special tools.

2. Drawings – For jigs and fixtures and special gauges.

3. Vendor process specifications – For operations to be off-loaded.

4. Process sheet (test estimates) – For manufacturing at fabrication and machine shop and
assembly / testing.

5. Machine load chart – For annual production programme..


Process Sheet Contains:

• Sequence of operation.
• Work area / cost centre.
• Machine tools used
• Special tools requirements
• Relevant technical specifications

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• Important inspection stages


• Witnesses / hold points
• Acceptance criteria
• Identification and protection
• Specific process specifications
• Raw material supply conditions

Jigs / fixtures / special tools (gauges)

1. Standard cutting tools

2. Special / form tools

3. Jigs / fixtures drill plates

4. Flanges for hydro test

5. Mandrill for DYN / STAT balancing.

Purpose Of Tooling:

1. paper machining – surface finish / tolerance

2. to obtain the form / profile

3. to hold the work – piece / tool

4. to guide the tool during machining

Manufacturing Processes:

• To define process control at various stages of manufacture to meet the specified requirements.

• Technology plans the manufacture processes in detail based on the drawing material
specifications and quality plan as indicated in BM / drawing.

Special Processes:
These procedures are carried out by qualified professionals under controlled conditions following the
documented procedures.

Special processes qualifications:

1. Results of these processes cannot be fully verified by subsequent testing.

2. Production / QC to ensure that the procedure and the personnel are skilled.
3. Proper and regular record has to be maintained for every particular or attributes.

4. Technology shall issue specifications or instructions for special process qualifications and
maintenance of records.
IMS (INTEGRATED MANAGEMENT SYSTEM)

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IMS has world class standards through continuous improvements, research and
developments. It comes under QMS (Quality Management System) and has been brought into
application by API (American Petroleum Institute).

Certifications:

IMS has following three certifications:

• ISO: 14001

• ISO: 9001:2000

• OHSAS: 18001

Note:
~ ISO: 14001 (environmental) management system standards to allow for easy integration of
management systems.

~ ISO: 9001 is related to design, development, production, installation, testing activities and
is following amendments of year 2000.

~OHSAS: 18001 has been designed to be compatible with ISO: 9001 and looking after
employee’s health working in and for the organisation.

~ ISO stands for International Organisation of Standards.

~ OHSAS stands for Occupational Health And Safety Assessment System.

APEX MANUAL:
It covers the following features as per the IMS standards:

1. Organisational Chart

2. Departmental Procedures

3. Controlled and Uncontrolled Documents

4. Working Standards and Instructions

5. Research and Developments

Note:
~ Business Quality = Product Quality + Product Service Quality

TQM (TOTAL QUALITY MANAGEMENT)

An integrated organisational approach in delighting customers (both internal and external) by


meeting their expectations on a continuous basis through every one involved with the organisation
working on continuous improvement of products, services and processes along with proper problem
solving methodologies.

Core Values Of TQM:

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S ~ Self Discipline

P ~ Patience

O ~ Openness

R ~ Result

T ~ Trust

Essential Elements Of TQM:

1. Total employee involvement

2. Just in time / waste elimination

3. Total quality control (TQC)

1. Total employee involvement:

SKILL ATTITUDE

a) Able a) Willing
b) Unable b) Unwilling

(TQP)Total Quality People

• Organisation is a tree(IMS)
• Organisational fruits(TQM)
• Organisational Stem(TQC)
• Organisational roots(TQP)
• Organisational resources(Cooperation, Communication and Commitment)

Note:
Total Quality People i.e. HR are the most important and integral elements of any Organisation.

2. Just in-time / Waste Elimination

Wastes are those hidden problems or defects within an organisation which result in
delay of production processes and also affect the cost of production. Hence, these
need to be detected and eliminated at the earliest in order to meet the need of the
customers just in-time.

Wastes may result due to any of the following Abnormalities within the organisation:

a) Inadequate System d) Sluggish Market


b) High Defect Rate e) Low Work Standards
c) Improper Work Method

3W Movement (WAGE WAR on WASTE)

Identify & Eliminate wastage arising from:

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• Over producing

• Time at hand

• Transporting

• Processing itself

• Unneeded motion

• Unnecessary stock at hand

• Producing defective goods

• Outdated instruments / machineries

• Insufficient scheduling / routine

• Congestive set-up / layout

TOTAL QUALITY CONTROL(TQC)


It means controlling:
• Quality of work

• Quality of service

• Quality of process

• Quality of people

• Quality of system

• Quality of objectives

• Quality of information (verbal / non-verbal)

• Quality of life

QUALITY CONTROL DEPARTMENT

Quality Control Department has control on all feeder sections. It checks the quality of raw
material and finished products as per standard prescribed. The department can be categorised as:

1. Machine shop inspection 5. Chemical lab


and ultrasonic testing 6. Mechanical lab
2. Non destructive testing 7. Gas cylinder quality control
(NDT) department
3. Standard room 8. Stores(QC)
4. Assembly testing

NDT (Non Destructive Testing):

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This section handles the following Tests:


• Ultrasonic Test (UT)
• Radiographic Test (RT)
• Magnetic Particle Test (MT)
• Dye / Liquid Penetration Test (PT)
• Eddy Current Test (ET)
• Helium Leakage Test
Above four tests are mostly used.

ULTRASONIC TEST:
This is the test for checking inside defect in the material. Sound of
frequency more than 20000 Hz (called Ultrasonic) is used for the test. A particular machine named
Ultrasonic Testing Machine is used for the purpose with different probes (viz normal probes, angle
probe of angle 30o, 45o, 60o, 75o).

RADIOGRAPHIC TEST:
This test is used for checking the internal defects of the material
specially welded joints. These tests are done by X-rays or Gamma rays.

TESTING FACILITIES IN RADDIOGRAPHIC LAB:

1) X-Ray Radiography:

a. X-Ray Machine:
Make: SEIFERT
Type: PARVORAMIC
Model: ERESCO 300/5 LRK
Capacity: 300 Kw, 5 mA

b. X-Ray Machine:
Make: ANDREX
Type: UNIDIRECTIONL
Model: CMA-16
Capacity: 160 Kw, 5Ma
This is used for steel thickness upto 10mm.

2) Gamma Ray Radiography:

By IR – 192 Source (t ½ = 75 days)

a. Tech – OPS Camera (Remote Operated)


Make: USA
Model: 660/664
Capacity: 100Ci
Working Capacity: 60Ci
Shielding Material: Uranium
This is used for steel thickness 19mm to 75 mm.
Along with test piece, pentameters are used for checking the standards of radiographs.
Pentameters have two types:
1. Wire Type
2. Hole Type

FORMULAE USED:
% Sensitivity = Minimum Thickness of wire X 100/Material Thickness

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% Sensitivity = 2\/(visible Hole /27)


% Sensitivity should lie 1% to 3%
** Servameter ( Radiation detector ) : This is used for detecting every type of radiation.

PRODUCT COLLABORATION

PRODUCT COLLABORATORS NAME PERIOD


Centrifugal Pump M/s Pumps Guinard France March 72 to March 82
Nuclear M/s Pumps Guinard France March 85 to December 95
Reciprocating Compressor M/s Nuovo Pig none, March 72 to March 82
Reciprocating Pumps M/s USS Oil Well, USA March 72 to March 82
Carhamete & Ammonia Pumps M/s Uraca Pumpenfabrik November 81 to November 91
Germany
Cementing Units M/s B.J. Highes, USA January 85 to January 95
Gas Cylinders M/s Showa Koatsu Kogyo Co. March 72 to March 82
Ltd. Japan
Porous Mass M/s Yokohama Chemical Japan March 72 to March 82
Porous Mass (Upgrade) M/s Coyne Cylinder Co. Ltd. July 85 to July 95
USA

BPCL BRANCH OFFICES

MUMBAI E – Mail : bpcldel@vsnl.net

Bharat Pumps & Compressors Ltd., DIBRUGARH


R&C Building, 4th floor,
Byculla Iron Works, Bharat Pumps & Compressors Ltd.,
Sir J.J. Road (Adjoining J.J. Hospital – Rupam Building, Minal Nagar,
Byculla) DIBRUGARH – 786 001
MUMBAI – 400 008 Tel. No. : 0373 – 2314324
Fax No. : 022 – 23750142 E – Mail : vcjaindib@sancharnet.in
Tel. No. : 022 – 23716268 / 23774577
E – Mail : bpcmumbai@vsnl.net
CHENNAI

VADODARA Bharat Pumps & Compressors Ltd.,


Gemni Parson Apartment,
Bharat Pumps & Compressors Ltd., “E” Block, 3rd Floor,
4 Manasmurti Flats, No. 3 Anna Salai,
14 J.P. Nagar, Opp. G.E.B. Colony, CHENNAI – 600 006
Old Paddara Road, Tel. / Fax No. : 044 – 28257107
VADODARA – 390 015 E – Mail : bpcchennai@vsnl.net
Tel. No. : 0265 – 2336193
E – Mail : bharatpump@sancharnet.in
KOLKATA

NEW DELHI Bharat Pumps & Compressors Ltd.,


Room No. 222,
Bharat Pumps & Compressors Ltd., 2nd Floor, Karnani Mansion,
C-115 Lajpat Nagar – 1, 21 Park Street,
Behind Gulshan Properties, KOLKATA – 700 016
NEW DELHI – 110 026 Tel. / Fax No. : 030 – 22269917
Tel. No. : 011 – 29815141 E – Mail : bpckol@sancharnet.in

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HUMAN RESOURCE DEVELOPMENT

OUR MUSCLES IS OUR MANPOWER …………………….. AND IT SHOULD BE GOOD.

BPC is engaged in a wide range of activities, which are design, manufacture, assembling
testing, inspection, dispatch, after sales, commissioning of Pumps & Compressor and after sale service.

A professional and progressive human resource development approach is what knits together
the BPC family together the BPC family of over 1200 employees.

The policies and practices have been formulated with well structured programme with
objective of developing an organisation that will fulfil, comply with and adopt all the statutory
requirement of Govt. Of India in terms of identifying including, training and development of Indian
Nationals. Strive for total quality management through human resource development based on their
strength and the organisation.

CORPRATE PHILOSOPHY AND OBJECTIVES

THINK BIG AND GROW BIG

Corporate Objectives:

• To increase the profitability through judicious productions.

• To maximise customer satisfaction through effective Redressal of customer queries


and complaints.

• To optimise the utilisation of available resources through comprehensive ERP


Techniques.

MANUFACTURING CAPABILITIES

EVEN PICASSO NEEDED A BRUSH AND A CANVAS

And so does our committed force need an excellent and latest technology manufacturing
infrastructure.

Our manufacturing highlights are:

• Modern and sophisticated machine facilities having latest CNC machines, assembly
testing heat treatment and fabrication workshops.
• In-house facilities of non-destructive testing, ultrasonic and chemical analysis,
digital balance machines, most modern boring & honing machines.
• CNG machines for manufacturing of high-pressure industrial and CNG
cylinders.

• Strong testing facilities for reciprocating compressors.

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• Sophisticated standard room and modern tool room.

MARKETING PHILOSOPHY

WORK SMART INSTEAD OF WORKING HARD

Marketing Objectives:

• To become a market leader in design manufacturer, testing, supply, creation and


commissioning of pumps and compressors.

• To be a leader in design, manufacturer, testing and supply of centrifugal and


Reciprocating Pumps to Nuclear Power Projects Atomic Power Project.

• To develop export market for BPCL products through target based pricing of
products.

• To improve upon market share for BPCL Products through target based pricing of
products.

• To increase the order booking for spare parts for BPCL supplied equipment through
extensive overhauling and refurbishment activities for the equipment supplied
earlier.

ASSUMPTION ABOUT THE MARKETING PLAN

What is marketing plan:

Marketing plan is systematic anticipation and analysis of future changes coupled with the
methodology for adapting to such changes. Methodology that will allow the industrial marketing
manager to capitalise on the changes in order to meet objective and goals of the company and to gain
an edge over competition.

It take care of all the lapses of a marketing manager and also highlight the weakness of the
company that should be removed for meeting the ultimate objective of the company i.e. profitability
through customer satisfaction.

Need for Marketing Planning:

The marketing planning seeks to ensure perpetuity growth and continued profitability to a
company through devising a suitable business portfolio and helping maintain a proper balance between
short and long range objectives. It augments the health and image of a company through proper
investment in business opportunities as well as in various resources. The absolute necessity of
marketing plan becomes more conspicuous in its absence than in its presence.

As without such a plan:

a. The marketing manager losses control over the future of the firm. He has no ability to react
in a logical and well-reasoned manner.

b. The manager inevitably ends up managing by crisis rather than by design.

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c. The marketing manager is forced to remain on the defence with marketing decisions to
counteract the well timed well offensive thrust of competition.

STRATEGIES / ACTION PLAN:

• BPCL have already initiated action for attainment of ISO 9000 certification.

• BPCL is already registered with process consultants and various exports houses. We
are receiving enquiries from EEPC, Mohan Exports and PEC etc.

• BPCL has initiated action to become a member of international Trade Council. Exp.

• As agents are the main contacts with the ultimate customers, we are also looking for
appointing some agents of repute in foreign countries.

• To participate in international trade fairs which are held in India & abroad.

• Contacting ultimate customers and mailing our product leaflet and brochures to them.

• Improve the level of customer satisfaction be mail questionnaires and personal


discussion. Organising camps at various sites for a limited period listening to
customer’s problems, resolving them and providing technical guidance.

• Presentation to customers / consultants before project sets date through audiovisual


presentation slides / films.

• Tie ups with turnkey contractors.

• Scanning and circulation of tender notices advertised in newspapers, Government


bulletin.

TYPES OF PLANS

Mission

The mission indicates primary beliefs and bedrock objectives, the central purpose of the
business. The mission indicates precise answers to certain basic.

Questions:

• What is our business?

• What will our business be?

• What should be our business?

• Who is our customer?

• What does he buy?

• What does he expect from the product?

• What does he look for when he buy our product?

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• Why should consumer citizen tolerate our existence? And so on.

If you have correct answers to these questions you can define your mission or line of business
justifying its very survival.

Objectives:

Objectives are the aims and goals to be achieved by the enterprise. They point out where we
want to go what is our end or destination. They provide direction for the enterprise efforts. They
become the bench marks or standards for evaluation of efforts. The facilitate control. Planning is most
successful when it is based upon clear-cut, attainable and verifiable objectives or goals. Please note
that objectives prescribe ends, whereas strategy prescribed means to accomplish desirable ends.

Strategy:

R. Anthony has defined strategic “the process to deciding on objectives of the organisation on
changes in these objectives and on the policies / strategies is a pattern of purposes and policies, which
are unique to the firm”.

Strategies are action – oriented programmes in order to give the organisation a unified
direction towards achieving the company mission, objective and goals. Strategic decision is planned
course of action to achieve clearly objectives, in the face of limited resources, a changing environment
and intelligent completion. The word strategy has competitive implication. Strategies are planned
response to external changes e.g. changes in customer tastes and preferences, changes in production do
distribution, changes are based upon basic mission and objectives, resources to be delayed and
changing marking opportunities. Strategies can establish favourable relation between the firm and its
environment.

Policies:

Policies are the principles and consequent rules of action of achieving specific organisation
objective or goal.

Procedure:

Procedures are a series of functions or steps performed to achieve a specific task or


understanding.

Programmes:

Programmes are a series of necessary activities and resources that are guided by the corporate
objectives, plans and strategies.

Project:

A project is a scheme for investing resources, resources which can be analysed and evaluated
separately. It is a work plan.

Schedule:

A schedule is a precise time table of a series of action. A vital part of a programme or project.

Budget:

A budget is a document indicating amount of resources to be committed to a specific purposes


of an organisation. Sales budget, production budget, capital budget and so on.

Standards:

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A standard is a selected criterion against which actual results can be measured to evaluate
performance. A standard is an integral part of control. There are four standards: quantity, quality, time
and cost.

Method:

A method describes how each step of a procedure is to be performed. One best way is a
standard method.

Rule:

A rule guides action but gives no discretion and demands strict obedience. Objectives indicate
our ends or destination, policies point out what is intended; programmes, procedures, etc. describe how
strategies and policies are being implemented. Standing plans ensure managerial efficiency, effective
control and co-ordination. Moving from policies to rules, the standing plans become increasingly
restrictive of management behaviour.

IMPORTANCE OF PLANNING

There are following importance of planning to Management of Business:

• Planning forces on the future direction, values and sense of purpose; basic objectives tell the
direction of growth.

• Planning provides a unifying decision making framework and facilities integration of efforts.

• Planning helps to identify potential market opportunities and threats.

• Planning offers standards of performance for comparison and evaluation of actual


performance.

• Planning enable the organisation to tune its business with environment and establish a
profitable relationship with environment.

• Precise plan can achieve a correct balance among:

o Corporate resources
o Corporate effort and
o The market potential

• Planning assures effective management of change and thereby survival and growth of the
enterprise. If there is anything constant, it is change. Change implies progress. Change is
manageable only through conscious planning. For instance, planning can reveal future threats
and uncertainties or probable changes in the national economy. Management can be prepared
to face the change convert difficulty into opportunity and meet the challenge of change
(resistance to change with reasonable success)

• We determine our goals, policies, procedures and time bound precise action plans in advance
and all activities are well coordinated and directed along predetermined channels on the target
markets. Hence there is no problem of confusion or chaos, no barriers of communication and

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no need to grope in the dark. Thus we have an orderly and smooth journey to arrive at our
destination as per plan.

PRODUCTS

Gas Cylinder:

• High pressure seamless industrial cylinders.

Pumps & Compressors

• Centrifugal pumps

• Reciprocating piston and plunger pumps

• Reciprocating compressors carbonate and ammonia pumps

• Sucker rod pumping units

• Pumps for nuclear power station application.

QUALITY ASSURANCE

Backed up by metallurgical and other laboratories including standard and calibration


room, the quality assurance programme confirm to international specification and requirements
and aims at achieving excellence by integration quality development, quality maintenance and
quality improvement effort of the various groups in the factory.

Quality assurance department ensures that the products (pumps and compressors) meet
the specifications of the international codes such as API and are fully guaranteed for performance
on the basis of proven and most updated design Gas cylinders are manufactured as per
specification of international standards as DOT, BS, BIS etc. and usage approval from recognised
national/ international agencies.

NEW HORIZONS
BPCL is operating in hi-tech area and has established a reputation of products on which
maintenance cost is least:

• In recent past the company has intensified its activity in a highly sophisticated and
specialised filed of nuclear pumps manufacturing order have already been executed to
supply emergency core cooling pumps, moderator pumps primary system feed pumps and
shut down cooling water pumps, to the country’s atomic power projects BPC ids fully
geared to design manufacture and supply these pumps to nuclear power plants in order to
achieve the generating capacity of 10000 MW by turn of the century.

• To expand the product base organisation has undertaken manufacturing of canned motor
pumps as a replacement of traditional moderator for nuclear power generation

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• Pursuing the policy of the government to give more thrust to agriculture areas the
company has planned to take up capacity irrigation pumps for manufacturing.

• Besides the company has achieved bread through to design and manufacture a high
pressure air injection compressor for the in site combustion plants for the extraction of
high viscosity crude for ONGC’s pilot plant at Balol. The other two worth mentioning
break through are PACOL service compressor and hydro service compressor for linear
alkyl benzene (LAB) revamp project at IPCL, Baroda and recirculation compressor for
Heavy Water Project at Tuticorin.

Visualising the oil crunch in coming years and unavoidable dependence on alternate resources
of energy BPC is also planning to manufacture compressors and kits to be used on automobiles.

A small package unit of high pressure low capacity compressors for starting aero jets and aero
engines has been planned for production to meet the demand of Indian Air Force respectively.

BROAD CUSTOMER PROFILE

(1) PRODUCT: centrifugal pump

(A) REFINERY AND PETROCHEMICAL

• Indian oil corporation ltd.


• Bharat petroleum corporation ltd
• Cochin refineries ltd.
• Indo Burma petroleum co ltd.
• Mangalore refinery & petrochemicals limited.
• Tamil Nadu Petri-product ltd, Bongaigaon.
• Reliance petroleum.
• Essar oil & refinery
• Haldia petrochemicals.

(B) FERTILIZERS

• Fertilizer corp. of India ltd.


• Hindustan fertilizer corp. ltd.
• Indian farmer’s corp. ltd.
• Nagarjuna fertilizer & chemicals lid, Hyderabad
• Gujarat Narmada valley fertilizers co. ltd., Baroda.
• Hindustan Lever ltd.
• Tata chemicals limited.
• National chemicals ltd.
• Indian explosive ltd., Kanpur
• Rashtriya chemicals& fertilizers ltd.
• Krishak bharti co-operative ltd., Hazaria
• Fact, cochin
• Bindal Agro
• Chambal fertilizers

(C) OILS & GAS

• Oil & natural gas corporation ltd.


• Gas authority of India ltd.

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• Oil India ltd.

(D) THERMAL POWER

• National thermal power corp.


• Harduaganj thermal power station
• Captive power plant
• Namrup thermal power station
• Neyveli lignite Corp. ltd.

(E) ATOMIC ENERGY

• atomic energy commission


• Nuclear power corp. ltd.
• Heavy water projects at : Talcher, Manu guru, Tuticorin.
• Bhabha atomic research centre.
• Indira Gandhi centre for atomic research

(F) OTHER INDUSTRIAL SECTOR

• National aluminium co, ltd.


• Steel authority lf India ltd, : Bokaro, Bhilai, Riurkela, Vizag
• Central coal fields led., Giddi
• Kerala news print & paper ltd.
• Bharat heavy plate & vessels ltd., Visakhapatnum.
• Rashtriya Ispat Nigam ltd., Vizag.
• Hindustan Zinc ltd. Vizag.

(2) PRODUCT: RECIPROCATING PUMPS:

(A) REFINERIES & PETROCHEMICALS

• India oil corp. ltd.


• Mangalore refinery & petrochemicals ltd.
• Madras refinery ltd., madras
• Indian petrochemicals ltd.

(B) FERTILIZERS

• Fertilizers corp. of India ltd.


• Hindustan fertilizers corp. of India ltd.
• National fertilizers ltd.
• Indian farmers fertilizers co-operative ltd.
• Fact-cochin
• Indian explosive ltd., Kanpur
• Krishak Bharti co-operative ltd., Hazira
• Rourkela steel plant Rourkela
• Indo- gulf fertilizers & chemical corp. ltd.
• Tata chemicals ltd. Bavaria

(C) OIL & GAS

• Oil & natural gas commission


• GAS authority of India ltd.

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• Oil India ltd.

(D) OTHER INDUSTRIAL PROJECTS

• Coal India ltd.


• Steel authority of India ltd. Bokaro, Bhilai, Rourkela, Vizag

CONSULTANTS

• Engineers India ltd.

• Uhde India ltd.

• Kellogg international ltd.

• MECON

• Humphreys & Glasgow, Mumbai

• Project & development (I) ltd.

• Snamprogetti-Italy

• Tata consultancy ltd.

• DCPL, Calcutta

• Kinetic technology India ltd., Delhi

PRODUCT ANALYSIS

(1) PRODUCT: CENTRIFUGAL PUMPS

RANGE : Capacity up to 12000 m4/hr 7 pressure up to 140 kg./cm2 with power


limited to 2500 KW.

FLUID HANDLED : Demineralised water, sea water, hydrocarbon, nitrogen, LPG. Carbonate
solution; border feed water, Benefied solution, ammonia, Ligour & slurry.

MAJOR COMPTITORS:

* KSB pumps ltd, Pune


* Kirloskar Ebara ltd. Pune
* Sulzer Pumps Pvt. Ltd. Mumbai

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* Best & Compton Engg. Ltd. New Delhi


* Worthington Pumps, Calcutta

FACTOR AFFACTING BUSINESS

* Prices
* Deliveries
* Adherence to customer’s requirements/ specialization
* After sales services & spare pates backup
* Government policies

PRESENT MARKET SIZE Rs. 500 Crores


SHARE IN CO. BUSINESS 45%
SWOT ANALISIS

STRENGTH Good engineering capabilities.


Good design backed by reputed foreign pump manufacturer.
Good manufacturing & testing facilities.
Good performance of equipments already supplied.
Good quality & high degree of reliability.
Stable industrial relations.
WEAKNESS High material & manufacturing cost.
Delays in deliveries.
Lack of planning & scientific monitoring of jobs.
Lack of reliable vendors for casting and other bought outs.
Inadequate after sales services & delays in resolving customer’s problems.

Higher fixed costs & administrative expended.


Lack of aggressive marketing
Inadequate technology up gradation.
Poor liquidity position 7 market credibility.
Reference to BIFR.
OPPORTUNITIES Large investment planned in oil & gas, petrochemical’s refineries, power 7 chemical industries etc
during 8th plan period.

Growing demand for pumps in all the core sectors.


THREATS Entry of foreign suppliers due to recession in world markets.
Increase competition from Pvt. Sector cost and entry of more & more roreign cos. into main.

Markets resulting in cut – throat competition


Dependence on world bank, other agencies for funds resulting large – scale import of equipments.

Project consultants/process licensors imposing preference on Indian customers leading to imports.

Foreign cost quoting dumping prices.


Reduction in customers duties has made offers from overseas
Cos. More competitive in comparison to Indian counterparts.
Due to financial constraints customers going in for turnkey package with credit package
manufacturers/suppliers.
Our own ex-collaborators are now Competing us.
Ability of foreign cos. To quote very competitive price.

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(2) PRODUCTS: RECIPROCATING PUMPS

RANGE: Maximum pressure – 675 kg/cm2 maximum capacity – 315 m3/hr

LIQUID HANDLED: Drilling mode, cementing slurry, crud oil steam, condensate, heavy water, fatty
aid, ammonium carbonate, liquid ammonia, water injection.

MAJOR COMPETITORS:

Plunger pumps Ongersoll Rand Ahmedabad


Matriplex, Coimbatore
Goma Engg. Mumbai
Larsen & turbo ltd. Mumbai
Mid pumps Bhel, Hyderabad
SRP units Simplex, Bhilai
New standard engg. Mumbai
Greaves cotton & co. ltd. Ahmedabad
Naveen engg. New Delhi
Cementing units Tractors India ltd. Calcutta

FACTORS AFFECTING BUSINESS:

• Prices
• Deliveries
• Technology
• After sales services & spares parts back up
• Govt. policy (e.g. hiring of chartered drilling rings)

PRESENT MARKET SIZE : Rs. 2200 lacks

SHARE IN CO. BUSINESS : 40%

Eliminating domestic bidders.


Prices preference available earlier may be dropped in publ co.
Increasing competition from pvt. Sector companies.

(3) PRODUCT: RECIPROCATING COMPRESSORS

RANGE Maximum pressure -450 kg./cm2


Maximum pressure -450 kg./cm2
Maximum power – 25,000 Kw
GASES II ANDLED Air nitrogen, oxygen, hydrogen, carbon Di- oxide, hydrocarbons,
ammonia, syntheses gas, hydrogen- sulphit coal gas etc.

MAJOR COMPTITORS:

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• Ingersoll rand, India/USA


• Atlas copaco, India/Belgium
• K.G. khosla, faridabad
• Novo pig none, Italy
• Worthington, USA
• Kirlosker pneumatics, pune
• Regal international, USA
• Hitachi, japan
• Cooper engineering USA

FACTOR AFFECTING BUSINESS

• Prices
• Deliveries
• Technology
• After sales services & spare parts back up
• Govt. policies

MARKET SHARE:
70%
PRESENT MARKER SIZE: Rs. 160
SHARE IN CO. BUSINESS:

SWOT ANALYSIS

STRENGTH Good design backed up by reputed foreign pump manufacture

Good performance of equipment already supplied


Good quality & high degree of reliability
Good reference as more than 200 compressors gad been already supplied

WEAKNESS High material & material manufacturing cost


delays in deliveries
Lack of sufficient design and engg. Expertise
Very low value addition.
Limited experience leading to lack of optimum selection.

Lack of planning & scientific monitoring of jobs.


Inadequate after sales services & delays in resolving customer’s problem

Lack of aggressive marketing


Lack to technology up gradation
Poor liquidity position & marker credibility
Reference to BIFR
Enhancement in no. of site problem.
OPPORTUNITIES Very good requirement of compressors exist from GAIL, ONGC, IOCL,
IBP, Hudrocraker Projects Fertilizers & petrochemicals project large
investment envisages in these sector during 8th plan period.
THREATS Entry if foreign suppliers due to recession in the world market.

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Competition from ex-collaboration.


Dependence on the world – bank, other agencies of fune result in large scale
import equipments
Project consultants/process licensers imposing
preference on Indian
customer.
Foreign cos. Quoting dumping prices
Reduction in customer duties has made offer from
Overseas cos.
More competitive in comparison on Indian
Customer.
Due to financial constraints customers are going in for turnkey package of
credit package thus altogether

(4) PRODUCT: GAS CYLINDERS

RANGE Maximum pressure 150 to 400 kg/cm2


GASES HANDELES O2, N2, H2, AIR, HE, CO2, N2O2, NH3, CL2, LPG, CNG.
LPG CPMPOSITION PROPANE & BUTANE
CNG COMPTESSED NATURAL GAS.
COMPOSITION – HYDRA CARBON CONDODT OF 80 TO
90% OF METHANE IN GAS FROM

MAJOR COMPETITORS:

• Everest kanto cylinder ltd.


• Maruti katsu cylinder pvt. Ltd.

MARKET SHATE : 10 TO 15%


PRESENT MARKET SIZE : RS 150 CRORE
SHRE IN CO. BUSINESS : 10%

SWOT ANALYSIS

STRENGTHS Good design backed by reputes foreign pump manufacture

Good manufacture & testing facilities.


Good quality & high degree of reliability.
WEAKNESS High material & manufacturing cost.
Lack of aggressive marketing.
OPPORTUNITIES Requirement of gas cylinder exist from BPCL, ONGC, NTPC, NPCIL,
TELCO, BHEL & for Delhi Transpost (CNG) Gas cylinders.

THREATS Entry of foreign suppliers due to recession in the world market.

Project consltants.
Preference on Indian customers.

7 ‘C’ IN BPCL:

1. Concepts of what I want.


2. Concentration of what it takes.

Prepared b y Peush Prabhakar M.B.A.- H.I.M.C.S. 37


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3. Commitment to achieve and see it through.


4. consistency in what I do.
5. commitment of emotions.
6. Character of high quality.
7. capacity to enjoy it.

ONE ‘N’ IN BPCL:

NEVER EVER GIVE UP.


NO ONE HAS FAILED TILL HE HAS GIVEN UP.

These marketing offices carry out all the pre & order activities which
BPCL’s main office dose.
Promotion

Although being a producer of industrial goods, promotional activities are not found necessary
in BPCL. One more reason for this attitude is that BPCL is pioneer in this industry and its
products are well known to its exiting potentia customers as of high quality.

Thus its promotional activities are confined to:

Frequent participation in trade fairs and exhibition all over world by holding company BYNL.

• Taking initiative through personal contacts.


• Sending catalogues to potential customers.
• Using consultants-main consultants are:
1. engineers India ltd.

ACCOUNTING POLICIES
FIXED ASSETS:

1. Capitalisation:

• Land given by the government of Uttar Pradesh is valued notionally at value


shown in the records of land Acquisition officer, allahabad and the
corresponding amount credited to Capital Reserve Account.
• Fixed Assets are valued at cost including allocation from expenditure during
construction wherever so applicable.
• Capitalisation out of inter plant transfer is made at factory cost including excisse
duty.

2. Depreciation:

• Depreciation on assets capitalised and put to use and / or sold / discarded during
the year is charged on monthly pro-rata basis.
• Pattern and dies with fabricators, suppliers / contractors and in stock are
depreciated @11.31%.

VALUATION OF INVESTMENT:

Investments are valued at cost.

VALUATION OF INVENTORY:

Raw materials, components and stores and spares:

Prepared b y Peush Prabhakar M.B.A.- H.I.M.C.S. 38


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The pricing of issues of raw


materials, components and stores and spares is done on periodical weighted average cost method.

Loose tools:
Loose tools valuing Rs.500/- or above are depreciated @ 20% on written
down value and below Rs.500/- are charged off revenue.

Work in progress:
Work in progress of the products manufactured by the company are
valued at absorption cost or estimated realizable value whichever is lower jobs done internally for use
in capital works are valued at factory cost.

Finished goods:
Finished goods are valued at absorption cost or realisable value
whichever is lower. Finished goods manufactured against stock orders are valued at absorption cost.

Advance from customers:


Advance from customers include those received with
letters of intent / sale contract and progressive payments received as per contracts during the tendency
of the order.

Miscellaneous expenditure to the extent not written off or adjusted:

Deferred Revenue Expenditure:

Techs know how / application engineering charges:


Deferred revenue
expenditure of technical know-how fees / application engineering charges are charged off to profit and
loss account as per technical estimates.

Payment under V.R.S.


The ex-grated payment made by the company
under V.R.S. (Voluntary Retirement Scheme) is treated as deferred revenue expenditure to be charged
off to profit and loss account in five equal yearly instalments. However, the same is charged to profit
and loss account in full, in case of receipt of grant of equivalent amount from Govt. Of India.

Income:

Sales:
The pumps and compressors, gas cylinders, shell forgings and other
products are billed at 100% sale value on dispatch and accounted for as sales.

Others:
Jobs executed including erection and other services and other revenues are
taken into account on actual on billing / accrual basis.

Claims:

By The Company:
Claims for the price escalation on sale contracts, export
incentives and other fiscal incentives etc. are accounted for on accrual basis.

Against The Company:


Liability arising as a result of final assessment in respect
of custom duty, central excise, income tax, sales tax etc. is set up in the books during the year in which
final assessments are made and / or decided.
Contingent liability is accounted for in the year in which
it becomes evidentially estimable and / or crystallised as payable.

Prepared b y Peush Prabhakar M.B.A.- H.I.M.C.S. 39


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Research & Development expenditure:


Research & Development expenditure is charged
to profit and loss account in the year of incurrence. However, R&D expenditure on fixed assets is
treated in same way as other fixed assets of the company.

Foreign Exchange:
Liability for foreign currency loan and / or deferred credit
payments is realigned at the year’s end exchange rates. Any loss or gain arising thereon is charged to
profit and loss account.

Provisions:

Gratuity:
The gratuity liability of the company has been taken into account based on
actuarial valuation got done through actuary, at the end of the year.

Leave Encashment:
The liability on account of leave encashment of the
company has been taken into account based on actuarial valuation got done through actuary, at the end
of the year.

WORKING OF MARKETING DEPARTMENT

Energy is a sector which is vastly flourishing around the world as all the vehicles and
machineries some where or around requires oil. Various companies are indulged in oil business so as to
provide service and furnish their business. Companies indulged in oil business relates to:

- Oil Exploration
- Oil Refining

The geological section of oil exploration companies search for oil in the block section. For
this purpose they require certain equipments for which they send an enquiry and pass the tender for the
same.
Also oil refining companies while refining oil to extract different forms of oil from crude oil
being provided by Oil Exploration Company, require certain equipment for which they also send an
enquiry and pass the tender for the same. Some of their requiring equipments are manufactured at
BPC, such as Reciprocating pumps, Centrifugal Pumps, Reciprocating Compressors, etc.
Enquiry is of two types:
- Budgetary
- Firm
In Budgetary enquiry the budget is estimated as to what is the competitive price and what is
the price company can bear and how can company can add a new feature into the product to create its
USP and still making it competitive in its market.
In firm enquiry the enquiry of firms are made that which are the companies who can provide
the equipments meeting the standards, lower price(L1) and other required specifications

TENDER:
A tender is a list of required materials in a specific format as intended by the
desired party. After the firm / company enquiry is being made by the company the tender is being
raised or opened so as to invite those companies capable of meeting the specifications required by the
company.
TYPES OF TENDER:

- Global
- National
- Limited
- Single
Note:

Prepared b y Peush Prabhakar M.B.A.- H.I.M.C.S. 40


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• BPC generally uses limited tender.

PARTS OF ENQUIRY:

• Commercial:
In this commercial terms are decided with the company

• Technical:
In this technical terms are decided with the company.

If all the terms are agreed between parties then supplier is being sent a letter of intent (L.O.I.).
Then for furnishing the objective the company distributes the sale order with help of marketing
department to all sections or department of company for furnishing their orders.

WORKING OF PRODUCTION PLANNING (PEX)

In production planning the decision is taken on what would be the procedure for preparing the
product and what would be the methods to be implemented on product layout is being prepared with
the help of list of specifications desired in the order placed by the customer.
All the production planning is being made so as to what process is to be performed at what
time period with specific time intervals.
Also production techniques are specified, so as to which production technique to be
implemented at what time. So that it can help product developed in a manner to meet out every
possible standard and international standards at the same time.

WORKING OF DESIGN DEPARTMENT


In design department the product’s design is being stipulated in the process. Design
department sends the list of items to production planning department and they send it to store to check
whether items exist or not from the list of items provided. If not they are being sent to purchase
department and from their again tender is being raised.
The vital decision product is being taken by design so as to decide whether company would
be able to produce or manufacture the product with the specifications as desired by the customer or
not.

WORKING OF QUALITY CONTROL DEPARTMENT

The quality control department is a very vital department for BPC as BPC is a company
engaged in producing equipments used in energy or power sector, where products are large in size and
bulky and also they require huge amount of investment, so quality is the most basic and unavoidable
segment.
The quality control department first inspects the quality control department checks the sample
of materials from supplier and if they pass it, then only the purchase is made.
Then again when product is produced then also quality check is made so as to satisfy the
company as well as the customer since product also carries company’s stakes or goodwill. Various tests
are performed in quality check they are:

HYDRO TEST:
To see or check whether material can bear the pressure

METAL TEST:
To check the metal used is of good quality or not.

WORKING OF ASSEMBLY DEPARTMENT

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After all the quality check is being done and material is purchased the production starts in
various stages; as products are bulky so various parts of the product is manufactured separately.
After it is being manufactured, there assembling takes place. And the product is assembled
tested and finalised.
After that inspection is done by an inspector i.e. a third party generally theey are member of a
statutory body, if product meets the desired standard a Letter Of Award( L.O.A.) is being issued by the
inspector. And he provides a release note after getting it packing is done and product is being
delivered.

Important Terms:

• Bank Guarantee:
If any supplier is contingent in supplying the product then
bank pays the loss.

• Performance Security:
If supplier fails to provide proper service then the bank
pays back the customer.

• Liquidated Damages:
If delivery is late on part of customer of payment then he
is liable to pay back the supplier the compensation and instead if supplier delays the
delivery of the product at a given time then customer is liable to receive the
compensation from supplier leading to deduction in product’s price.

• Deemed Order:
It is if Indian suppliers get excise free from government in
their product’s delivery with foreign parties so as to increase exports.

WORKING OF PURCHASE DEPARTMENT (M.P.X.)


The functioning of purchase department initiates from issuing of indent or requirement slip, in
the organisation the purchase is made of:

• Production Items:

- Metallic
- Non Metallic

It includes raw materials, semi finished goods prepared by


casting, finished product

• Non Production Items:

- Non Consumables
- Consumables

It includes office stationeries, electricity etc.

If indent budget is below 8 lacks then tender committee B takes decision regarding purchase
of items, it includes managers in the purchase department.
If indent budget is above 8 lacks then tender committee A takes decision regarding purchase
of items, it includes chiefs of marketing department.

Some of the items that are purchased are such as face milling cutters, cooling systems, oil
seal, moulds, wax seals, rubber materials, connectors for tube fittings etc.

Prepared b y Peush Prabhakar M.B.A.- H.I.M.C.S. 42


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Normally enquiry for intent preparation takes 21 days otherwise if urgent according to the
requirement.

WORKING OF SALES DEPARTMENT

STEPS TO PROCESS A SALES ORDER

1. Receipt of sales order from our marketing department and spare parts and component
division (SPCD) (SB).

2. Open a file corresponding to the sale order simultaneously control that file in file
control that file in file control register by sale order no.

3. After receiving the packing list from packing department. We are sending this packing
list after valuation to the market in the case of main product (RP, CP, & RC) and SPCD
in the case of spares of above main product for the rechecking of valuation.

4. After rechecking the valuation of above packing list, the packing list is sent to the
excise cell of our department for the calculation of excise duty.

5. Preparing excise invoice in five copies for clearing the material from factory gate, after
getting packing list from excise cell.

6. Sending this excise invoice to store department for dispatch of material and after
dispatching the material they send us dispatch documents (GR, Challan, Invoice Cum
Delivery Note first copy i.e. original for buyer.)

7. After getting dispatch documents we are preparing commercial invoice in ten copies
with six forwarding :

1. 3 copy for customer


2. 2 for marketing department
3. 1 for branch
4. 2 for office record
5. 1 for master record
6. 1 for consignee

8. After making final commercial invoice we send it our marketing department as well as
SPCD for taking actions to realise the payment.

STEPS TO RECORD COLLECTION AGAINST SALE ORDER

We are getting payment from our customers in following manner:

1. Received directly from the customers in our bank account through EFT (Electronic Fund
Transfer) or by way of CH / DD or

2. Payment collected by our branches and deposited in bank account of BPCL, Naini or bank
account of that branch also

3. If collection made by the bank in the case bank directly credited our account through EFT

In all the above cases we are preparing BCV (Bank Credit Voucher) for making book
adjustment for payment receive in head office, or received in the nature of Ch / DD and EFT in Naini
Branch after receiving collection advice from our MKTG. department.

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We are preparing JV (Journal Voucher) for payment collected and deposited in Bank account
of branches after receiving collection advice.

We are controlling collection advices in collection register and after controlling the collection
we are entering the collection details in to the computer for maintaining the debtor’s realisation and for
management reporting as and when required.
Our Products

1. Reciprocating Pump (RP) & Spares.


2. Centrifugal Pump (CP) & Spares.
3. Reciprocating Compressors (RC) & Spares.
4. Gas Cylinder (GC)

Working Of Sales Tax Section

Sales tax is a statutory due which is collected from the customers and paid to the government
on sales made by the company during financial year.

The sales tax section is an integral part of sales section.

Types of Sales Tax:

1. Central Sales Tax (CST) charged @ 2% against form “C” and 4% if form “C” is not collected
from the customers.

2. Value Added Tax (VAT) charged flat @ 4% without any form for any type of goods sold
whether it is RP, CP, RC or GC.

Deposit Of Tax:

The tax collected as above is to be deposited to thee government account as follows:

1. CST / VAT – Upto every 20th of the following next month if 20th is a holiday then the day
before the 20th. But for the month of march we have to deposit the tax for the period of 1 st
march to 0th march on 25th march and for the period from 21st to 31st march, the tax is to be
paid as usual on 20th of following month i.e. April.

2. Interest @ 14% per annum will be charged if the sales tax not deposited in the stipulated time
as mentioned above.

3. The tax is to be deposited on due date without fail ass mentioned above irrespective of
whether the same is collected from our customers or not.

Filing Of Return:

We are required to file the Sales Tax Return within the 20th of every next month in the
prescribed Form No. 24 with annexure ‘A’ & ‘B’ as per the VAT Rules 2008.

Forms required to be produced under CST:

1. ‘C’ – For any central sale.

2. ‘E’ – For transit sales, required to be produced when the goods dispatched to the other site of
the party.

3. ‘F’ – for the transfer of the stock from H.O. to the other branches of the company.

Prepared b y Peush Prabhakar M.B.A.- H.I.M.C.S. 44


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4. ‘H’ – Used in the course of export.

List Of Benefits provided by BPC to its Employees:

• Medical Benefits:

Medical benefits are provided on salary of employee over 10000 and gets 95% basic
DA and Personal Insurance to the salary under 10000. At the of year undertaking is taken from
employees getting medical benefits. If medical treatment is taken then receipt from doctor is submitted
to Personal Department and then Personal Department gives details to finance and further actions are
taken under Central Government Health Scheme. Company attach with some hospitals and prepare a
treatment procedure tariff which is a standard for treatment of employees in the process of curing
diseases such as Saraswati Heart Care and Research Centre. 60 years is the age limit for retirement of
employees from the BPC.

• Leave Benefits:

Earned leave is 24 days in first four years of service. Exceeds to 26 days in next four years
and exceeds to 28 days in next four years and in next four years it exceeds to 30 days.

- Medical Leave:

It is provided maximum of 20 days in a year and it provides half salary to the


employee for that period.

- Casual Leave:

It is provided maximum of 12 days in a year and it provides half salary to the


employee for that period.

• Promotion Policy:

4 years of entitlement for consideration:


- Annual confidential report.
- Present and absenteeism if absenteeism is exceeded over 240 days in 4 years
then candidate is not considered.
- Charge sheet
TAX RATES FOR ASSESSMENT OF MALE EMPLOYEES – (2009-10)

Income Level Income Tax Rate

i. Where the total income does not exceed NIL


Rs.1,60,000/-.

ii. Where the total income exceeds Rs.1,60,000/- 10% of amount by which the total income
but does not exceed Rs.3,00,000/-. exceeds Rs. 1,60,000/-

iii. Where the total income exceeds Rs.3,00,000/- Rs. 14,000/- + 20% of the amount by which the
but does not exceed Rs.5,00,000/-. total income exceeds Rs.3,00,000/-.

iv. Where the total income exceeds Rs.5,00,000/-. Rs. 54,000/- + 30% of the amount by which the
total income exceeds Rs.5,00,000/-.

Prepared b y Peush Prabhakar M.B.A.- H.I.M.C.S. 45


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TAX RATES FOR ASSESSMENT OF FEMALE EMPLOYEES – (2009-10)

Income Level Income Tax Rate

i. Where the total income does not exceed NIL


Rs.1,90,000/-.

ii. Where total income exceeds Rs.1,90,000/- but 10% of the amount by which the total income
does not exceed Rs.3,00,000/-. exceeds Rs.1,80,000/-.

iii. Where the total income exceeds Rs.3,00,000/- Rs. 11,000- + 20% of the amount by which the
but does not exceed Rs.5,00,000/-. total income exceeds Rs.3,00,000/-.

iv. Where the total income exceeds Rs.5,00,000/- Rs.51,000/- + 30% of the amount by which the
total income exceeds Rs.5,00,000/-.

NOTE:
*EDUCATION CESS IS 3% OF INCOME TAX FROM ALL ASSESSEE.

*THE SURCHARGE ON INCOME TAX FOR INDIVIDUALS FOR TOTAL INCOME


EXCEEDING RS.10 LACS STANDS REMOVED.

SPECIMEN OF TAX RETURN BEING FILED BY AN EMPLOYEE:

08-NOV-08
TAX RETURN FOR 2008-09

PSL NO: 0184 NAME: MUNNA LAL PH. NO.

DEPT. NO: 150 DESIG: SR ATTDT (W) SCALE CODE: 8 PAN NO: ACJPL3781C

BASIC (+) = 95654.26


DA (+) = 90562.80
HRA (+) = 14436.90
CCA (+) = 1845.00
SPL INCREMENT (+) = 1073.57
10% IR (+) = 1400.00

INCENTIVE (+) = 1383.52


ATTENDANCE AWARD (+) = 140.00
NIGHT SHIFT ALLOW (+) = 603.00
LEAVE ENCASHMENT (+) = 10027.85
OTHER INCOME (+) = 26250.00

TOTAL = 243376.90
HRA (REBATE) (-) = 0.00

TOTAL = 243376.90
HBLD. INTT (-) = 0.00
PROFESSIONAL TAX (-) = 0.00
MEDICLAIM (-) = 0.00
HANDICAPT (-) = 0.00

TOTAL = 243376.90

PF (+) = 22116.00
VPF (+) = 30000.00
GLIC (+) = 637.00

Prepared b y Peush Prabhakar M.B.A.- H.I.M.C.S. 46


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LIC PENSION (-) = 0.00


LIC (+) = 0.00
LIC PERSONAL (+) = 34300.00
EDUCATION (+) = 0.00
PPF (+) = 0.00
ULIP (+) = 0.00
HOUSE BUILD LOAN (+) = 0.00
NSC (+) = 0.00
NSC DEEMED (+) = 0.00
IDBI / ICICI (+) = 0.00

TOTAL (TAXABLE) = 156330.00


TOTAL SAVING FOR REBATE = 87053.56

TAX = 633.00
CESS / SURCHARGE = 19.00
NET TAX = 652.00
TAX ALREADY PAID = 0.00
NET PAYABLE TAX = 652.00

NOTE:
*IF ANY CHANGE PL. RETURN THE SIGNED FORM BY 20.11.08 IN FINANCE

(SIGN. OF EMPLOYEE)

SPECIMEN OF TAX RETURN BEING FILED BY ANOTHER EMPLOYEE:

08-NOV-08
TAX RETURN FOR 2008-09

PSL NO: 2497 NAME: SUDHAKAR PH. NO.

DEPT. NO: 131 DESIG: CGM (FS, ROs, CSR)&CO. SE I/C SCALE CODE: 58 PAN NO: ABLPS8330F

BASIC (+) = 238450.00


DA (+) = 211194.00
HRA (+) = 35550.00
CCA (+) = 1845.00
SPL INCREMENT (+) = 3000.00
10% IR (+) = 3240.00
INCENTIVE (+) = 0.00
ATTENDANCE AWARD (+) = 0.00
NIGHT SHIFT ALLOW (+) = 0.00
LEAVE ENCASHMENT (+) = 42412.00
OTHER INCOME (+) = 58927.04

TOTAL = 594618.04
HRA (REBATE) (-) = 35550.00

TOTAL = 559068.04
HBLD. INTT (-) = 0.00
PROFESSIONAL TAX (-) = 0.00
MEDICLAIM (-) = 0.00
HANDICAPT (-) = 0.00

TOTAL = 559070.00

PF (+) = 53553.00
VPF (+) = 58000.00
GLIC (+) = 0.00
LIC PENSION (-) = 6415.00
LIC (+) = 0.00
LIC PERSONAL (+) = 5342.70
EDUCATION (+) = 0.00
PPF (+) = 0.00
ULIP (+) = 0.00
HOUSE BUILD LOAN (+) = 0.00
NSC (+) = 0.00
NSC DEEMED (+) = 0.00

Prepared b y Peush Prabhakar M.B.A.- H.I.M.C.S. 47


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IDBI / ICICI (+) = 0.00

TOTAL (TAXABLE) = 100000.00


TOTAL SAVING FOR REBATE = 459070.00

TAX = 46814.00
CESS / SURCHARGE = 1404.00
NET TAX = 48218.00
TAX ALREADY PAID = 19500.00
NET PAYABLE TAX = 28718.00

NOTE:
*IF ANY CHANGE PL. RETURN THE SIGNED FORM BY 20.11.08 IN FINANCE

(SIGN. OF EMPLOYEE)

WORKING OF IMPORT AND EXPORT DEPARTMENT


The import and
export department helps in supplying products and retrieving materials from foreign parties. For any
importer IEC code is important for every one. Joint Director General IEC Kanpur issues IEC code
without IEC code custom clearance is not allowed for import forting tender enquiries are done. Only
technically accepted offers are only tendered for EPX:

• Floating of tender enquiry


• Receipt of quotation and technical scrutiny
• Placement of order are technical suitable vendor
• Payment terms in import case
- Payment through letter of credit
- Cash against document

After opening of Letter Of Credit shipments are made either by air or by sea through our
authorised forwarding appointed by Government Of India / BPC

In case of urgency material being accepted otherwise being shipped by Indian FAG

Documents required for custom clearance:


• Commercial Invoice
• Bill of lading in case of air and sea
• Packing list
• Country of Origin

After arrival of material at destination counting is done as per requirement. Authorised


clearing agent files, bill of entry with custom along with documents listed above. Process of clearance
of bill of entry.

• Classification of custom duty as per custom tariff, rate of fixed custom duties.
• License audit, passing of bill of entries, payment of custom duties delivery of
consignment of custom warehouse

WORKING OF STORE ( M.S.X.)


Store consists of three sections:
• Receiving Cell
• Transport Cell
• Custody Cell

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For which Daily Material Arrival Report is prepared i.e. DMA Report. After DMA, DR is
prepared i.e. Daily Receipt of stores in which location is specified after that SRV is prepared Store
Receipt Voucher and all the copies of SRV are distributed to all concerned departments.

After SRV is prepared material is being checked by quality control inspector if accepted then
it is undertaken otherwise rejected by rejection store. After undertaken custody department takes over.

SRV is maintained in group codes and is matched by material. The store keeper keeps a watch
on the procedure. The entries are made and material’s inventory is maintained. After all formalities the
details are sent to finance department and feedings are made.

PEX department issues Store Issue Voucher which is are forwarded to work in progress
department. After forwarding material ship the material’s code is matched and if found true then it is
transferred to W.I.P. Custody time to time issues material for production so that there cannot be any in
convenience while production.

In transport cell items are transported in and out of the organisation, if only few items are
there for transporting then BPC sends Their Truck. The terms of payment by the party in the process of
transport are:
• General Receipt (GR)
• Challan
• Excise Gate Pass

GR includes delivery office address, consignment note number, remarks if any, delivery party
or supplier, rates, delivery acknowledgement for facilitation. BPC informs the supplier through Challan
that such and ssuch product is being received with such and such specifications and all the details of
packing are mentioned with agreement by Senior Manager MSX.

MARKETING MIX

PRODUCT
• Product Variety

• Quality & Design

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• Feature & Brand Name

• Packing

PRICE
• Discount

• Payment Period

• Credit Terms

TARGET MARKETING

PROMOTION

• Advertising

• Personal Selling

• Sales Promotion

PLACE

• Channels

• Locations

• Transportation

• Logistics

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The 4 P’s Of Marketing Mix:

Price:
In the study of 4 Ps the price of the product comes second. In BPCL there are 4 major
considerations while deciding the price:

• General Overheads
• Machine Hours
• Competitors Price
• Size Of The Order.

As it happens in the area of the industrial goods products is negotiated order wise.

Now-a-days BPCL is lagging behind despite having qualitatively superior products because of
its high overheads and that too is skyrocketing due to some unviable government policy.

Place:
BPCL has one and only production unit in the whole country which is situated industrial area
Naini, Allahabad.

BPCL’s marketing cells are situated in:

• Varodara

• Mumbai

• Chennai

• Delhi

• Dibrugarh

• Kolkata

4 Ps of BPCL:

It has been a common convention that one should study marketing of a particular company
under the head of classic 4 Ps. So let us have a look of the situation of Ps in BPCL.

Product:

BPCL manufacturers mainly 4 types of products with their subtypes also:

• Centrifugal Pumps

• Reciprocating Pumps

• Reciprocating Compressors

• Gas Cylinders (Seamless & Welded)

BPCL have a complete team of design & development engineers and most of item have been trained at
collaboration works and have through experience of a wide.

Place:
BPCL factory is situated in Allahabad, a well knit team of quality control & quality,
throughout all phases of manufacturing third party inspecting by reputed inspection agencies such as

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Lloyds, Bureau Veritias, EIL, PDIL, UDHE and HIG are offered to all products at client’s direction.
BPCL makes high quality products to serve various purposes of different companies of diverse nature.
After discussing the 4 Ps we will have brief description of the prime customer of BPCL.

“ WHAT BUSINESS BPCL ARE IN”

To identify create and maintain and continued Dasis satisfied customers, who have a demand,
both present & future for.

(a) Design, manufacture and supply of centrifugal pumps, reciprocating pumps,


reciprocating compressors and gas cylinders for the core sectors of industry such as
refineries, petrochemicals, fertilisers, metallurgy, oil & natural gas etc and has
manufacturers.

(b) Design manufacture and supply of sucker rod pumping units, cementing units for oil
& natural gas commission and Oil India Ltd.

(c) Services to customers for equipments supplied by us as well as technical guidance to


customers for smooth operation of plants 7 performance upgradation.

QUALITY POLICY OF BPCL

“BPCL is committed to deliver pumps, compressors, gas cylinders, spares an services on


international quality with continual improvement in delivery performance to enhance customer
satisfaction.”

QUALITY OBJECTIVE:

To improve average delivery performance of our products by five percent, yearly. Target for
delivery performance of the year 2004-05 is seventy percent.

BPCL OBJECTIVES:

The main objectives of BPCL are as follows:

1. To design manufacture and supply of capital goods in the find handling field including
provision of services connected these with.

2. To provide a reasonable and adequate return of the invested capital.


3. To provide participative style of management

4. To built confidence for company’s product and services factor pumps and compressors and
gas cylinders.

5. To achieve a leading position in the engineering development and manufacture of pumps and
compressors and gas cylinders.

6. To ensure sound commercial policies, customer expenses satisfaction of BPCL products and
services.

7. To encourage rural development and growth accordance government policies.


8. To develop sound after sales services.

9. To provide reasonable and adequate return of the invested capital.

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VISION OF BPCL

Building Tomorrow’s World Today:

By providing quality engineering products and services through core competencies of our
human resources and assets with focus on health and safety of manpower, society and environment.

MISSION OF BPCL

Our Business Is Client’s Total Satisfaction:

Provide excellent quality and services to core sector industries with a special thrust
on oil and natural gas, petrochemicals, refinery, nuclear and thermal power, fertilisers and public
transport sectors.

PROFILE OF BPCL

Fuelled By A Commitment For Excellence

Incorporation:

• Till late 60s, the multinational companies dominated the petroleum sector in India. Since
these industries were operating in the core sector, it was strategically decided by the
government of India to nationalised these companies and bring them under government
control. This led to the formation of Hindustan Petroleum Corporation, Bharat Petroleum
Corporation and India Oil Corporation. For meeting the requirement of equipments as well as
spare parts for the imported equipments installed in these companies, the Government of India
decided to establish Bharat Pumps & Compressors Ltd. In 1970 under the Ministry of Heavy
Industries and Public Enterprises.
• The companies registered office / works is located in Naini, Allahabad , U.P. It has branch /
regional offices at Mumbai, Vadodara, Kolkata, Dibrugarh and New Delhi.

AREAS OF OPERATION

• Bharat pumps and compressors ltd. situated in trans-yamuna area of allahabad is basically
engaged in manufacturing of heavy duty pumps and compressors for oil exploration down
stream projects such as Refineries, Petrochemicals etc. Other sectors served by the company
are Fertiliser, Thermal Power, Hydro and Nuclear Power, Steel etc.
• The company has a high credibility for quality of its products and has acquired ISO 9001-
2000, 14001 and OHSAS 18001 certification.

PROFIT AND GROWTH STRATEGIES

Prior to liberalised economic policy, public sector enterprises has the benefits of prince &
purchase preference (with no limit) in case of domestic bids and deemed export benefits in case of ICG
bid with the increased competition from Private Sector cost into Indian Market. The following
measures have to be adopted counter external threats and offset our weaknesses:

Creation of marketing cell:

• Marketing cells are fully responsible


• Marketing survey
• Data bank maintenance for market demand, business share, competitors data / activities.
• To find market strategies of competitors, their strengths and weakness.
• Collection of site reports and offensive marketing, their strengths and weakness.
• Submission and follow up of offers
• Arrangement of technical seminars for new projects

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• Updating marketing plans


• Once the offer is matured into order, the file will be taken over by contract execution group.

Relooking into pricing policy:

• In view of very trough market conditions and world recession and low order book position.
• Order will be booked on marginal costing basis
• Review of pricing policy once order book position improves recovery overheads from spare
parts.

Separate costing centres for different products:

Since machining facility and labour requirement are different for different products, separate
costing centres shall be created so that to each product price is competitive to our competitors.

Preorder purchasing activities by marketing:

• To have competitive detailed offers for bought-outs & major casting / forging
• To have complete technical details of bought-outs before finalisation of order by the customer
• Sub-ordering time period will be reduced
• Sub vendors can offer discount as they will be a partner to out bids.
• Reduction in overall cost will be assured

Strengthening of branch office:

• For day to day dealings with customers and to have latest feedback on offers and competitor’s
activities.
• To improve upon business relationship with customers and consultants.

Aggressive marketing:

• Frequent interactions with end users and consultants.


• Impress upon customers to recommend to turnkey for buying BPC made equipments only.
• Marketing intelligence reports and takes immediate action on it.

Service and spare parts:

• Prompt after sales services and supply of spare parts.


• Posting of service personnel at major business centres.
Taking up turnkey projects:

• Will help improve in order book position as well as financial position.


• Will also help to have more orders for as now most of the customers are going for turnkey
jobs rather than having more vendors for different times.

NEW AREA DIVERSIFICATION

Technology of BPC for the next three to five years essential covers the following products,
which have been identified for the diversification and growth apart from technology upgradation of
existing facilities and products on which brief note is attached.

1. Sucker rod pumping unit

2. Ring section pump


3. CNG compressors (Daughter Station)

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(A) Sucker rod pumping unit

• Production description:
Sucker rod pumping unit (SRPU) excluding subsurface
items SRPU consists of Gear reducer, Counter balanced cranks, Walking beam, Semoson,
Post base plate etc.

• Application:
For pumping out crude oil from dead oil wells

• Customer:
Oil & Natural Gas Commission.

• Competition:

Indigenous: new standard engineering, simplex engineering, and naveen


engineering etc.

Foreign: CMEC, China; industrial export import, Romania; shaunxi machinery &
equipment, China etc.

• Market projection:
ONGC had project a market demand of 420 nos. valued at Rs. 42
crores for 8th plan period (1992-97). However inquiry for about 200 nos. had been already
float during one and half years considering the past inquiries and information from eastern
and western regions of ONGC, the total requirement may go up to 600 nos.

• Business projection:
BPC can expect a share approximately 20% i.e. orders worth Rs. 8
Crores out of Rs. 40 Crores provided we are able to quote competitive price. Italy, Chinese
have been literally quoting dumping prices for SRP unit and BPC has lost orders against 3-4
inquiries of ONGC in a row. Our prices have been almost double of these quoted Chinese
parties.

• Technology:

Present Status:
Technology collaboration was earlier made by BPC for SRO units
in 1984-85 with M/s. Industrial Export Import, Romania and design documents were obtained
for 3 models only based on recommendations of ONGC. Supplies were made to ONGC in
1986-87 and after that ONGC didn’t make any purchases. After a gap of about seven years
ONGC has again procurement of SRPU of different models for which BPC does not have a
design. Due to which BPC has not been able to secure orders as its prices were not very
competitive. In view of this lamination it would not be necessary to make some kind of tie up
with Chinese company. Whereby BPC might have to import the gear box unit, fabricate units
and supply depending upon the pricing strategy that followed by LGMP and other Chinese
manufacturers in future.

Action Plan:
An order to enter into some kind of tie-up or an understanding
BPC contacted various reputed manufacturers of SRP units all over the world. However, BPC
managed to get response from only three manufacturers:

o CMEC / LGMP, CHINA


o HPMIC / FPMMP, CHINA
o INDUSTRIAL EXPORT IMPORT, ROMANIA

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Know how has demanded by M/s Industrial export import, Romania was high and
not justified in relation to business expected proposals from China were comparatively
reasonable and detailed discussions were held with both the parties of APC during their visit
to India.
Subsequently, a delegation consisting of Mr. G.K. Balaava Ex-MD and Mr. S.N.
Dwivedi chief (design) visited China in September’ 93 for finalisation of technical know how
agreement. However, due to the insistence of CMEC / LGMP not to excusive sales right to
BPC even in India as also high fees demanded by them, an agreement could not be an
concluded. The other Chinese party visited only by the chief (Design) i.e. HPMIC / FPMMP
though having design and manufacturing set up cannot consider for the present as they expect
to receive the same by December’ 93 BPC in touch with them.
In view of the above, BPC shall continue its efforts for a suitable tie-up with M/s
HPMIC / FPMMP subject to their receiving. API certification, an effort will be made once
again once again to contact other potential manufacturers in this regard.
Recently a big success came across BPC an Iranian Company placed an order of 30
Reciprocating Pumps from BPC as International market boycotted to supply the energy
equipments to Iran, therefore Iran looked towards India and found BPC most appropriate
supplier, this opportunity will lead BPC to new heights and help it to become a Multinational
Company.

Additional Resources:
Existing manufacturing facilities are adequate; however
some balancing facilities shall be required in approximately Rs. 50 Lacks. Investment of Rs.
1.5 crores been proposed technical tie-up for know how.

(B) Ring section pump

• Product description:
Ring section boiler pump.

• Product specification:
Suitable for captive power plant upto 60 MW.

• Application:
Pumping of voiker feed water crude oil and dewatering application
in mines.

• Customer:
Power plant of state electricity boards, captive power plant pf refineries,
fertilisers plants and other process plants limited to 60 MW.

• Competitors:
KSB / KBL / KEBL / MATHER & PLANT

• Market projection:
Based on new captive power plants coming up a replacement of
existing units, there is a market of Rs. 20 to 30 Crores per year.

• Business projection:
BPC can expect a market share of 10% and this can give a business
of approx. Rs. 2-3 crores per year.

• Additional resources:
Existing manufacturing are adequate except some balancing
facilities. Investment proposal Rs. 2.5 Crores has been planned mainly for acquiring technical
know-ho and some balancing facilities.

(C) Compressed Natural Gas (CNG) Compressor (Daughter Station)

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• Product description:
CNG compressor for CNG refuelling daughter station

• Application:
Transfer of CNG from cascade to cubicle cylinders.

• Brief description:
High pressure multi-stage CNG compressor along with all
accessories such as drive instrumentation, and control inter collar’s separators piping and
cascade, etc. shall be installed in ISO container for supply as pack aged unit.

• Customer:
GAIL, MRL, IBP etc.

• Competitors:
Sulzer (India) Ltd. Nuova pig none Italy and Bauer Germans.

• Market and Business Projection:


Government is likely to give a lot of thrust to the
usage of Compressed Natural Gas (CNG) as an alternative fuel government has made GAIL,
MRL and IBP as nodal agencies to work out the projections were given by these agencies
there will be demand of 900 nos. daughter stations and 100 no. mother stations as also
corresponding no. of cylinders in the next 3 to 5 years. BPC is already in the field of
compressors manufacturing and it is therefore only appropriate that BPC enter this area also
in the good time. Based on the demand materialising as above, we could expect orders @ Rs.
5 Crores P.A. from 1996-97 onwards. We are only party to have supplied 3 nos. CNG
Compressors for mother station of GAIL and the same of working satisfactorily. This has been
achieved for the first time in the country with our in house R&D design and manufacturing.

• Additional Resources:
Present manufacturing facilities are adequate. Investment
of Rs. 3.50 Crores has been planted for acquiring technical know-how / tie-up etc.

EXPORTS

1. Objective:
Situation Government of India in its new industrial policy has great
emphasis on exports in all spheres including engineering goods. In view of this
BPCL should immediately explore possibilities for export and services.
The recent devaluation of rupees and the rupees convertibility will help
BPCL to be more competitive. It is true that immediate returns will not accrue, but
certainly it will help BPCL in the export business in the long run.
Once we enter into export market handling of foreign turnkey bidders, will
be easier and they will be attached towards BPCL automatically.

2. Scope for export:


Pumps and compressors are being manufactured with latest design
and technology. Once quality and delivery is maintained entry into export market will not be difficult
with little additional efforts. Export market exists for following products Centrifugal and Reciprocating
pumps, Reciprocating Compressors, Gas Cylinders finished castings, components for pumps and
compressors. Target market for above items exists in following countries Middle East and African
countries such as Arabia, UAF, Iraq, Uganda, Philippines, Nigeria, Sudan, South East Asian Countries
such as Romania, Russia etc. Neighbouring countries such as Bangladesh, Sri Lanka and Nepal etc.

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3. Past performance:

(a) 10 numbers centrifugal pumps to Romania during 1984-85 of value Rs. 17 lacs

(b) 1500 nos. gas cylinders to Oman and Kuwait during 1970-80

(c) BPCL has executed an order for 12000 oxygen and 11000 DA cylinders. Valuing Rs.
1000 lacks for Algeria through Mhan Exports India Ltd.

CONCLUSION

It is felt that the company is now better geared to manage its order execution cycle more
satisfactorily orbit this assessment is based on an analysis of its currents order book log position. A
security of its recent operational and financial performance a study of orientation related to order
execution also due consciences has been taken of the series of systematic improvement recently
implement by the company.

The systems are mostly in place though same process simplifications have to be carried out
and certain procedural redundancies need to be remained. The company also need to make the inter-
department co-ordination and effective in addition BPCL must up completely responsible for intenal
follow up as well as service as a single paint contact with the client.

SUGGESTION

In the report we have seen the graph of order booking targets and sales turnover. In the graph
of order booking we have seen that the order for our product is increasing year. It means that with the
increase of order to target. We have efficiency of the organisation, we have to improve on certain
points:

• Cost efficiency:
To get the achievement of cost efficiency we have to keep certain
points in our mind they are resale of scraps, inventory management, work distribution.

• Profit generation:
In the SWOT analysis we have seen there is a great opportunity
products, these can be turnkey for the company. The company should try to work on export.
They should lay more emphasis on export.

• Improving technology:
There is no doubt that the product of company is not
good.
But from time to time the regular improvement of the technology. It improves the quality of
the product as well as save the time.

• Becoming a global player:


With the last dealings we can conclude that the company
had satisfy there maximum customers. After those dealings the company should try to get a
good name in India as well as in international market.

• Employee handling:
Generally we have seen that in the maximum government
sectors there is lack of professionalism. It means that we have to make an environment of

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work in the company. The company should try to motivate the worker to become punctual and
loyal for the company.

• Product:

PRODUCTS MARKET SHARE

o Centrifugal Pumps 10%

o DA Cylinders 25%

o High Pressures Cylinders 10%

o Sucker Rod Pumping Unit 02%

o Reciprocating Compressors 25%

o Centrifugal Pumps 10%

In the given statistics we have seen the market share of the products. In the case of DA
Cylinders and Reciprocating Pumps there is largest market share of BPC. It means we should
concentrates on those products which have very low market shares.

BIBLIOGRAPHY
Bibliography refers to the sources through which information has been retrieved in my project
development:

• Marketing Management

By
( Philip Kotler )

• Marketing Management

By
( S. A. Sherlekar)

• Economic Times

• Annual Report of BPCL.

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