CONTENTS

 CERTIFICATE.
 DECLARATION.
 ACKNOWLEDGEMENT.
 PREFACE.

SECTION 1
INTRODUCTION
1.1 COMPANY PROFILE.
1.1. A. BRIEF AND HISTORY.
1.1. B. ORGANISATIONAL STURTURE.
1.1. C. MARKETING.
1.1. D. FINANCE & ECONOMY.
1.1. D. HUMAN RESOURCE.
1.1. E. OPERATIONS.
1.1. F. RESEARCH AND DEVELOPMENT.
1.2 INDUSTRY PROFILE.
1.2. A. L.P.G. INDUSTRY
1.2 L.P.G. INDUSTRIAL USES.
1.2. B. BRIEF ABOUT THE COMPETITORS.

SECTION 02
OBJECTIVES, SCOPES, RESEARCH METHODOLOGY, DATA ANALYSIS,
FINDINGS AND CONCLUSIONS.
2.1. OBJECTIVE OF THE STUDY.
2.2. SCOPES AND LIMITATION.
2.3. RESEARCH METHODOLOGY.
2.4. DATA ANALYSIS.
2.4. A. INDUSTRY (BUSINESS-TO-BUSINESS).
2.5. FINDINGS.
Recommendation
Conclusion

ANNEXURE.
INDUSTRY (BUSINESS TO BUSINESS).
RETAIL MARKET (BAZAAR).
QUESTIONNAIR THROUGH WHICH SURVEY WAS CONDUCTED

REFERENCES.

3
 INTRODUCTION

1.1 COMPANY PROFILE.

1.1. A. BRIEF and HISTORY.

BRIEF.

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

companies, with Global Fortune 500 rank of 287 (2008) and according to December
2010 FORTUNE 500 Indian’s largest corporation, BHARAT PETROLEUM has
achieve 4th rank out of 500. Its corporate office is located at Ballard Estate, Mumbai.
As the name suggests, its interests are in petroleum sector. It is involved in the
refining and retailing of petroleum products.
Bharat Petroleum is considered to be a pioneer in Indian petroleum industry with
various path-breaking initiatives such as Pure for Sure campaign, Petro card, Fleet
card etc.
BPCL's growth post-nationalization (in 1976) has been phenomenal. One of the
single digit Indian representatives in the Fortune 500 & Forbes 2000 listings, BPCL is
often referred to as an “MNC in PSU garb”. It is considered a pioneer in marketing
initiatives, and employs “Best in Class” practices.
Bharat Petroleum Corporation Limited (BPCL) specializes in refining, processing,
and distributing petroleum products. It offers petrol, diesel, aviation fuel, liquefied
petroleum gas (L.P.G.) and lubricants. The company primarily operates in India,
where it is headquartered in Mumbai and employs about13, 968 people.
The company recorded revenues of INR1, 112,431 million (approximately $27,632.8
million) in the fiscal year ended March 2008, an increase of 13% over 2007. Its net
profit was INR17, 696 million (approximately $439.6 million) in fiscal 2008, a
decrease of 17.5% compared to 2007.

BREL was incorporated on 17th June, 2008 for undertaking the

production,procurement, cultivation and plantation of horticulture crops such as
Karanj, Jatropha and Pongamia, trading, research and development and management
of all crops and plantation including Biofuels in the state of Uttar Pradesh, with an
authorized capital of Rs.30 crores. The company has been promoted by BPCL with
Nandan Biomatrix Limited, Hyderabad and Shapoorji Pallonji Company Limited
through their affiliate. Each of the partners will have an equal stakein the equity
capital of the joint venture. The project envisages plantation of Jatropha in 1 million
acres (404686.3 hectares) of marginal land which has the potential of generating
employment / self employment for 1 million people and producing 1 million tonnes of
Bio-diesel with an investment of Rs. 2,200 crores over the next 10-15
years.
The Government of Uttar Pradesh has approved the project under Jeevan Jyoti,’ a
scheme of the Government which has the benefit of release of funds under the
Mahatma Gandhi National Rural Employment Guarantee (MGNREG) scheme. BREL
has identified 60,438 acres (24,459 hectares) of wasteland for plantation. Efforts are
also being made to source saplings of Jatropha under the aegis of Bio Tech Park,
Lucknow through approved nurseries and franchisees. Work is on for getting
4
necessary approvals for the identified land and in preparing the land for plantation.
BREL has earned miscellaneous income of Rs.0.08 crores for the financial year
ending 31st March, 2010 and incurred loss of Rs.1.44 crores as against a
miscellaneous income of Rs.0.05 crores and a loss of Rs.0.24 crores in the previous
year.

HISTORY:-

The 1860s saw vast industrial development. A lot of petroleum refineries

came up. An important player in the South Asian market then was the Burmah Oil
Company Ltd. Though incorporated in Scotland in 1886, the company grew out of the
enterprises of the Rangoon Oil Company, which had been formed in 1871 to refine
crude oil produced from primitive hand dug wells in Upper Burma. The search for oil
in India began in 1886, when Mr. Goodenough of McKillop Stewart Company drilled
a well near Jaypore in upper Assam and struck oil. In 1889, the Assam Railway and
Trading Company (ARTC) struck oil at Digboi marking the beginning of oil
production in India.
While discoveries were made and industries expanded, John D Rockefeller together
with his business associates acquired control of numerous refineries and pipelines to
later form the giant Standard Oil Trust. The largest rivals of Standard Oil -
RoyalDutch, Shell, Rothschilds came together to form a single organization: Asiatic
Petroleum Company to market petroleum products in South Asia.
In 1928, Asiatic Petroleum (India) joined hands with Burmah Oil Company - an
active producer, refiner and distributor of petroleum products, particularly in Indian
and Burmese markets. This alliance led to the formation of Burmah-Shell Oil Storage
and Distributing Company of India Limited. A pioneer in more ways than one,
Burmah Shell began its operations with import and marketing of Kerosene. This was
imported in bulk and transported in 4 gallon and 1 gallon tins through rail, road and
country craft all over India. With motor cars, came canned Petrol, followed by service
stations. In the 1930s, retail sales points were built with driveways set back from the
road; service stations began to appear and became accepted as a part of road
development. After the war Burmah Shell established efficient and up-to-date service
and filling stations to give the customers the highest possible standard of service
facilities.

FROM BURMA SHELL TO BHARAT PETROLEUM.

Burmah Shell Refineries was incorporated as a company in 1952, and

established a refinery in Mahul .On 24 January 1976, the Burmah Shell Group of
Companies was taken over by the Government of India to form Bharat Refineries
Limited. On 1 August 1977, it was renamed Bharat Petroleum Corporation Limited. It
was also the first refinery to process newly found indigenous crude Bombay High, in
the country.

VISIONARY APPROACH

The core strength of Bharat Petroleum Corporation Limited has always been the
ardent pursuit of qualitative excellence for maximization of customer satisfaction.
Thus Bharat Petroleum, the erstwhile Burmah Shell, has today become one of the
most formidable names in the petroleum industry.

5
Bharat Petroleum produces a diverse range of products, from petrochemicals and
solvents to aircraft fuel and specialty lubricants and markets them through its wide
network of Petrol Stations, Kerosene Dealers, L.P.G. Distributors, Lube Shoppes,
besides supplying fuel directly to hundreds of industries, and several international and
domestic airlines.

BHARAT PETROLEUM “then and after”

The company installed microprocessor based digital integrated distributed control

systems in catalytic reformers and introduced a new solvent unit to replace the
pneumatic control system in 1993.The company also installed an advanced control
system for its catalytic control unit. The company then incorporated a joint venture
company, Bharat Oman Refineries, in 1994.There after BPCL signed a memorandum
of understanding (MOU) with Bank of Baroda in 1995 to launch the first co-branded
credit card in the country. In 1998, BPCL entered into a joint venture with Petronet
(India) for the construction of a 308 km pipeline from Kochi in Kerala to Karur in
Tamil Nadu. The following are a few achievement achieved by BHARAT
PETROLEUM CORPORATION LTD:

 McDonald's made an agreement with BPCL to open and run

restaurants at selected petrol pumps across the country in 2000.
Quicky's, the global coffee chain, followed suit in 2001, and began
ton offer its services at BPCL stores.

 BPCL launched Speed '93, its own brand of petrol, in 2003. In the
following year, BPCL diversified its operations. The company
entered into a business to business e-commerce arrangement with
IDBI Bank to provide an automated payment and purchase process
to BPCL's corporate and industrial clients. The company also tied
up with Tata Consultancy Services to provide medical advisory and
counselling services at Ghar, the highway retailing initiative of
BPCL.

 Bharat Petroleum Corporation Limited and GAIL formed another

joint venture company, Central UP Gas, for implementation of City
Gas Projects in Delhi and Kanpur in 2005.

 In 2006, the Government of the Sultanate of Oman signed an

Exploration and Production Sharing Agreement (EPSA) for the on
land exploration block 56 with the consortium comprising BPCL,
Oilex (Operator), Hindustan Petroleum Corporation Limited, GAIL
India and Videocon Industries. In the same year, the company
acquired a 20% interest in an exploration block in Australia.

 In September 2008, BPCL and Videocon Industries Ltd acquired

50% stake in Brazil's EnCana Brasil Petroleo Limeade.

 BPCL and GAIL (India) Limited announced to form a joint venture

company, God’s Own Gas Company, for marketing compressed
natural gas (CNG) and piped gas in Kerala and Karnataka, in March
2008.
6
  In April 2008, BPCL announced the formation of joint venture
Company in consortium with other companies, Shapoorji Pallonji
Co Ltd and Nandan Biomatrix Ltd for establishment of Bio Diesel
Value Chain in Uttar Pradesh, India. In the same month, BPCL and
GAIL (India) Limited signed an MOU for cooperation in
transmission and distribution of natural gas, L.P.G. pipelines and
city gas.

 In August 2008, Punjab Energy Development Agency (PEDA)

signed a MoU with BPCL to setup one M/W Solar Photovoltaic
Power Plants at Lalru in Punjab, India.

KEY EMPLOYEES:

Name Job Title Board

Shri. R. K. Singh Chairman& Managing Director Executive Board
Dr. S. Mohan Director, Human Resources Executive Board
Shri. K.K. Gupta Director, Marketing Executive Board
Shri. B.K. Datta Director, Refineries Executive Board
Shri. S.Varadarajan Director, Finance Executive Board
Prof. N. Venkiteswaran Director Non Executive Board
Shri. Haresh. M. Jagtiani Director Non Executive Board
Shri. I.P.S. Anand Director Non Executive Board
Shri P. K. Sinha Director Special Secretary & Financial
Advisor, Ministry of Petroleum
& Natural Gas

7
 MANAGEMENT IN JAIPUR BRABCH OF BPCL

SHISHIR KUMAR
(TERRITORY
MANAGER)

SANJAY CHOUBEY
TERRITORY CO-
ORDINATER.

KAMLESH KUMAR
SALES MANAGER

MAJOR PRODUCTS AND SERVICES:

Bharat Petroleum Corporation Limited (BPCL) refines, stores, markets and

distributes petroleum products. The company’s key products and services include the
following:

PRODUCTS:

I. Petrol
II. Diesel
III. L.P.G.
IV. Gasoline
V. Kerosene
VI. Lubricants
VII. Aviation fuel
VIII. Fuels and solvents

SERVICES:

I. Convenience stores
II. ATMs
III. Car washes
IV. Free air and water
V. Lubricant top-ups
8
 VI. Energy audits
VII. E-banking services
VIII. Consultancy and technical services
IX. Online ordering

Overview Of L.P.G. Sector

Vision
To become market leaders in Customer Service with the highest customer satisfaction
index, and the highest safety standards.

9
Mission
To make Bharat gas a dominant brand in the segments we market, by becoming
trendsetters in Customer Service, Safety and Quality.

History
L.P.G. as a household cooking fuel was introduced by erstwhile Burmah Shell under
the brand name “Burshane” in mid 1955. The journey of L.P.G. as a domestic fuel
continued with Burmah Shell until the Government nationalized the Company
Burmah Shell to become Bharat Petroleum.
“Bharatgas” from Bharat Petroleum has dominated the LP Gas market in India for
over three decades. It was indeed a great challenge for Bharatgas to replace
Burshane as a brand name since “Burshane” had become a generic name in the
country for L.P.G.. Bharat Petroleum's inspiration to meet every challenge drove
them to work towards establishing Bharatgas as a dominant brand.

Achievements:-
Market research helped in understanding the strength of
the brand and out lining the way forward. One of the
major changes was to create a Strategic Business Unit
to deal with Bharatgas. Soon programmes totally
focused on meeting customers’ need were drawn up.

A pioneer in more ways than one, Bharatgas has

brought many innovative offerings to the customers’.
The Corporation was quick to realize the need to look
at the needs of the ‘Urban’ and the ‘Rural’ customer
differently.
Over the years, the urban Market reach was very large, the customer more sensitive.
Whereas, it was a herculean task to reach the rural consumers primarily due to
inhabitation being spread over very far flung areas unlike the congested urban areas,
thereby creating a logistic challenge. Having understood the needs of the two
different segments, Bharatgas undertook various initiatives.

Urban
Customer initiatives included launch of an exclusive
website www.ebharatgas.com to provide convenience of booking Bharatgas ‘On
Line’ to customers. The website also provides a feedback system enabling the
consumers to directly speak to the Organisation. Other methods of booking through
IVR systems and drop boxes placed at busy locations in town were also introduced.
Booking of Bharatgas is also made available through SMS facility.

Rural
Areas are serviced by the Bharatgas Rural Marketing Vehicles (RMV), comprising
of tank truck and the mobile filling unit. These RMVs service rural areas, where the
traditional distributorship network was not present. The RMVs instill great
customer confidence as they can see their cylinders being filled in their presence and
checked for safety.
10
 The promise of reaching a sound cylinder with the right
Q&QPipedis indeed
L.P.G. fulfilled!
is another first from Bharatgas.
Wellmarketing
Rural accepted having
by major Realty momentum
gathered Developers,inBharatgas
India
hadpiped
manyL.P.G.
MNCs system
set upfor multi-storied
rural apartments
infrastructure to reach and
shopping
their malls isITC’s
own product. gaining popularity.
e-choupal initiatives and the
DCM group’s Hariyali Kisan Bazar, are such
initiatives. Bharatgas has leveraged the opportunity to
utilize their infrastructure to reach L.P.G. to deep
interior rural areas.

Industrial
Customers too have been our focus. Bharatgas has
demonstrated the various applications of the wonder
fuel L.P.G. for innovative uses in various Industries.

Bharatgas has also introduced various pack sizes to

suit the different types of customers.

Value – Added Service

This was in recognition of the need to provide the housewife relief from mundane
chores of household shopping for low involvement products; the “Beyond
L.P.G.” initiative was launched to provide value to the customers.

This involved the Organisation entering into corporate tie-ups with reputed brands
and making available through the distributorship network FMCG as well as home
appliances and kitchenware at attractive discounts - all home delivered to the
consumers.
The initiative soon gathered momentum and became a successful business model
providing value not only to the consumers but the network as well as the Partner
Companies. For Bharat Petroleum it was another successful business venture within
5 years with the involvement of over 25% of the distributors’ voluntarily
participating in the business and setting up ‘Bharatgas Shoppes’ with attractive
display of product creating a comfortable shopping environment – a far cry from the
typical showroom of an L.P.G. distributor.

Bharat Metal Cutting Gas (BMCG)

an innovative product is the result of continuous
research. An efficient and cost effective substitute for
Acetylene, it is indeed a revolutionary product for the
cutting and brazing industry. 11

The success of the product is not limited to the Indian

shores but has travelled to countries in the middle-east
 Leveraging Technology
Harnessing technology has always been on the
forefront for maximizing efficiency and achieving
greater customer satisfaction.

An exclusive website www.ebharatgas.com providing

the convenience of booking Bharatgas ‘On Line’
alongwith information about the product, its uses,
safety and conservation tips as well ashuge collection
of recipes is a popular site for women.

The website also provides a feedback system enabling the consumers to directly
speak to the Organisation. Booking of Bharatgas has also been made available
through SMS facility.

At the back end, over a decade back the distribution network operation was
completely computerized, streamlining operating practices and enhancing
efficiency at the distributorship level along with a professional outlook. Customer
focus being a very core objective of the brand, Bharat gas constantly explores
opportunities to relate to the customers.

Internally too, process the systems within the Organisation are continuously
reviewed and improved to get the best output for the customers. The state of the
art 49 modern filling plants demonstrate the use of technology to provide the
customers the best of products and services! Bharatgas undertook an exercise for
‘Bench Marking’ the best practices, within Bharat Petroleum, the Oil Industry and
global practices for adoption in the Organisation. This has certainly further
improved the performance of the brand.

Knowledge being a great strength with the employees, Bharatgas looked at the
opportunities of providing consultancy services in developing nations for L.P.G.
project covering setting up of the facility as well as training.

Continuous communications with the network and employees is recognized as an

important means to raise the bar. A bi-monthly publication ‘Bharatgas Times”- an
e-magazine promotes sharing of best practices and encourages people towards
healthy competition in business and in partnering social objective programmes, thus
creating a better society and upgrading the levels of the individual, both in terms of
thoughts and actions.

Recognition
In house training and involvement in recognizing creative and innovative challenges
is a major objective. Bharatgas continuously supports innovative ideas by
replicating the success story in one area to the rest of the areas. Similarly, the
network is continuously energized with recognition and rewards.
Accolades and Awards have come to Bharatgas in good measure. Recognition for
high Safety standards from Oil Industry Safety Directorate (OISD) has been
accorded along with a large number of Bottling plants receiving various awards for
environment and safety as well distributors receiving customer service awards from
institutions.

Environment & Society

12
 Initiatives like health checkup camps, eye camps, blood donation drives, providing
free spectacles as well as medicines for those who cannot afford is undertaken.
Greening initiatives, Global warming and other environmental issues to save the
planet form part of the brand’s regular initiatives.

Brand Values
Team Bharatgas believes that providing value added services to customers will be
the ultimate differentiator in the market place. Understanding customer behavior
and tracking their aspirations hold the key to success! This conviction drives us to
continuously innovate to provide offering that make a difference to the customers.
Customer convenience is at the core of every action.

www.ebharatgas.com

THINGS YOU DID’NT KNOW ABOUT "Bharatgas" :

» Present in over 30 million homes.

» Facilities to book your re-fill cylinders on-line and through SMS.
» FMCG and home appliances are available at attractive discounts from
your Bharatgas distributors.
» Bharat Metal Cutting Gas -a very cost effective efficient fuel for
cutting and brazing operations, a product from Bharatgas.
» www.ebharatgas.com the only exclusive website for L.P.G. consumers
offering a host of information.
» 49 modern filling plants to bottle Bharatgas cylinders.

INDISTRIAL USES OF LIQUED PETROLEUM GAS:-

13
L.P.G. touches our lives in so many ways although we are unaware of it. From Commercial
establishments to Chemical Industries, from housing to health, from garments to glass, from
livestock to hospitality, “Bharatgas” plays its role along the way in making your products
superior, durable and simply the best. A few industries using L.P.G. are listed below:

» Crispy Biscuits Confectionery

» Poultry
» Textile Industry
» Steel
» Pharmaceuticals
» Glass
» Hotel Industry
» Reticulated Piping
» Paint drying
» Dal mill
» Goldsmith’s favourite

Crispy Biscuits & Confectionery

L.P.G. is widely used to manufacture Crisp Biscuits, Soft

Bread, Fluffy Pastries, Light Khari, Spongy Cakes and all
types of cream and bakery products of super quality.

Precision control of temperature and low sulphur content in

L.P.G. makes the product palatable and passes all Statutory
tests for human consumption.

Poultry
Don’t count your chickens before they are hatched, but with Bharatgas you can.

With Bharatgas you get uniform and localized heating during the first five weeks both
during summer and winter. The advantages of L.P.G. in chicken brooding are :

» Better heat control.

» Rapid drying of litter.
» The power failures in rural areas is very high resulting in
heat failures, but with L.P.G. as the source of fuel this risk
is eliminated.
» Direct view of chicks; the heaters don’t take any floor area.
» Very low L.P.G. consumption of approx. 60 gms per hour
or 50 paise per bird in winter.
14
Textile Industry

Has it ever occurred to you that to produce the textiles you’re wearing, L.P.G. plays a
significant role? The four main steps in the production of textile fabric:

» Preparation of fabric Just what the doctor ordered “Bharatgas” from Bharat
» Spinning Petroleum.
» Weaving L.P.G. is used to join glass components to form a single
» Finishing which includes Singeing, Bleaching,
object. Bharatgas Dyeing, because a clean flame is
is preferred
Printing, Calendering etc. obtained which can be adjusted to the desired size and shape
useful in the production of ampoules.

Each of these processes requires a heating source. Steam though mostly used is not hot
enough for certain operations so L.P.G. or electricity is usually needed in the Finishing
process. L.P.G. is better because the heat is more concentrated. The reflectors do not have to
be polished and heaters do not burn out.

Steel
Bharatgas steals the show in the Steel Industry.
Heat treatment of metals normally refers to any process involving heating and cooling of
the solid metal with the aim of modifying its physical properties but without the intention of
changing its chemical composition.

Bharatgas easily meets these requirements so steel majors have stuck to Bharatgas over the
years for all their fuel needs.

Pharmaceuticals

Glass
In the summer heat when you reach for a thirst quencher,
remember Bharatgas has gone into making the bottles that
hold these great refreshers.

As seen here re-heating of melted glassware in a special

furnace is done before shaping operations. When making
complicated shapes the glassware may have to be reheated
several times to keep it malleable. L.P.G. is generally used 15
Glass Annealing:
Annealing glassware after manufacture. The cooling rate is very important because strains
will be set up in the glass if it cools at undesired rate. Annealing is done in normally long
ovens with the glass traveling through on a steel conveyor belt. Bharatgas is used for direct
firing and for finer temperature control.

Glass Melting:
The glass is passed through Bharatgas flames for one or more of the following reasons:

» Round off sharp edges

» Smooth off gob marks or grinding marks
» Seal cracks
» Increase surface luster
» Heating jobs to remove cutting marks

Oel Industry

The cup that cheers

The meal that satisfies
The mouth watering delicacies
Thanks to “Bharatgas”Bharatgas is associated with top brand
names in the hotel industry. Normally 90% of hotel use L.P.G.
for cooking, no matter what you serve, Continental,

Reticulated Piping

L.P.G. at the turn of a tap – so quick, so convenient. Cooking was never easier.
Thanks to the reticulated piped gas available in several homes today, Bharatgas is available
at the turn of a tap. It ensures increased safety and valuable space saving in the kitchen. It
eliminates cylinder refill booking and handling. Saving of time and no need to block money
for a 2nd cylinder.

Paint drying
L.P.G. application in paint drying has got distinct advantage
over conventional drying ovens.

The hot air is generated which is free from particulate matter,

leaves no ash and temperature control is precise. The final
quality of paint in the baking oven is uniform. The result is
excellent surface finish and gloss.

Dal mill

The conventional method of grain drying is process of sun -

drying or passing of flue gases through the bed of grain. The
modern method of grain drying is by L.P.G. Firing system
16
which improves the drying process and also gives no. 1
quality of the grain.

As the grains are of edible quality, L.P.G. does not leave

Goldsmith’s favourite
L.P.G. produces very powerful flame and can be as sharp as
needle. This type of flame is required for goldsmith to make
very fine gold / silver ornaments.

The working atmosphere remains free from obnoxious gases

and thus is conducive to the workmen.

Be it food, clothing or shelter, the basic need of human beings and more, L.P.G. plays a
part in the production process. In several industries today L.P.G. contributes to
generate a superior product.

Customer Service

Available Pack Sizes

To match the individual needs of customers, various pack sizes have been made
available.
 For Domestic kitchens – pack sizes of 14.2 kg. and 5 kg. cylinders
 For Industrial / Commercial – pack sizes of 19kg, 35 kg. and 47.5 kg. as well
as bulk L.P.G.

Customer First

At Bharatgas, we believe that the customer comes first and so to provide convenience
to the customers, various facilities are available:
 Endeavour to Home Deliver safe and sound refill cylinders within 24 hours of
booking in normal situations and on all 7 Days of the Week.
 Home Delivery of refill cylinders as per your convenience.
 Weighment of cylinders at the customer’s premises gives customer
confidence.
 Distributorships are open on Sundays to facilitate customers seeking new
connections as well as refills.
 Multiple cylinder booking channels like telephones, in person, through
Internet and unique telephone number.

Multiple Ordering Channels

24 hr. Bharatgas cylinder booking facilities on www.ebharatgas.com

The Online Customer Service permits the Bharatgas Customer, at registration, to
create his / her own Login ID and Password, which will enable him / her to interact
online and access information in a secure environment and avail of the following
facilities:
 Place an order for refill cylinder ONLINE
 Suggest the preferred day and / or time of refill delivery
 Avail of the Reminder Service

17
 Participate in Contests / Promotions as and when organized on the site

Unique telephone number 12664

Bharatgas Customers can also book a refill cylinder or log a leakage call by dialing
our telephone number 12664. This 5-digit number is unique for BHARAT
PETROLEUM. The system functions as under:
 The customer is given the choice of language
 On selecting the same, the customer is required to say the name of
the distributor
 On confirmation by the system, the customer will key in the consumer number
 The system will confirm the booking and provide a refill-booking number.

OTHER CUSTOMER CARE SERVICES

1. Value added services

2. Customer relations centres
3. Emergency service cells
4. Distributor locator
5. Distributor code locator

1.1. B.COMPANY STUCTURE.

The older structure was functionally organized. There were mainly four
functions (refineries, marketing, finance and personnel) each headed by an executive
director reporting to the (CMD). Other support departments like corporate affairs,
legal, audit, vigilance, coordination and company secretary were directly under the
CMD. See Appendix 1 for the organizational chart. The Director refinery was in
charge of refinery, corporate planning, JV refineries and special projects. Other than
corporate finance and marketing finance EDP was also under the Director finance. In
marketing, there were different departments for retail, industry, L.P.G., lubricants and
aviation segments. Corporate communication was also under Director marketing.

The whole of India was divided into four regions and further into 22
divisions. Each region was headed by a Regional Manager who was in charge of all
activities within the region and reported to the Director marketing. Each region had a
manager in charge of each of regional personnel, regional engineering, regional
industrial customers, regional retail, and regional finance. Regional L.P.G. was under
regional industrial customers. The division was the responsibility of the Divisional
Manager reporting to the Regional Manager. He had a manager each for sales,
operations and engineering. Each of these was responsible for sales, depots and
engineering respectively for all the customer segments.

Across the marketing function, except for the corporate departments

(L.P.G., industrial customer, etc.) specifically looking after a customer segment, every
18
individual and role is focused on multiple customer segments. For example any
strategy addressing the industrial customers originates from the Corporate Department
(Industrial Customer), goes via the Director Marketing, Regional Manager, Divisional
Manager to the Sales Officer. All of them are responsible for multiple customer
segments like retail, L.P.G., industrial, etc and deal with different classes of
customers. Hence there was very low customer awareness in terms of the unique
needs of the different customer segments, with no single individual at the operational
level having clarity on any single customer segment. Moreover, the marketing
strategy was formulated by people who were far from the customer with very low
understanding of the customer they were targeting. The implementers were
responsible for diverse customers with a low understanding of the logic of these
strategies meant for each customer segment. Thus the old structure had created a
bottleneck between the strategy formulators and implementers in terms of the regional
structure, and between the field staff and the corporate offices and refinery.

Activities of a business process are spread out across different functions and levels of
hierarchy, engaging many individuals. There was a long chain of non value adding
linkages between any two activities targeting a business / customer. For example,
when an industrial customer gives a special order of lubes to the sales officer, the
corporate lubes purchases the base oil, plant blends it, S&D packs it and the sales
officer sells it. The Sales Officer would communicate the order to the Divisional
Manager, who passes it on to the Regional Manager. Then the order would be routed
to the Corporate Lubes for processing. Everyone involved in the activities of this
process belong to different functions and hierarchy levels. This long chain of
communication had led to a lack of customer orientation, low awareness of customer
needs and expectations and slow response.

APPENDIX-1.ORGANISATIONAL STRUCTURE OLD AND NEW.

THE GIVEN DIAGRAM SHOWS THE STUCTURE OF BHARAT

PETROLEUM OF BOTH STRUCTURAL AND DIVISIONAL.

19
 DIVISIONAL STRUCTURE

REGIONAL
HEAD.

REGIONAL REGIONAL REGIONAL S REGIONAL REGIONAL

PERSONAL. ENGINEERING. & D. SALES. FINANCE.

REGIONAL
L.P.G.

REGIONAL STRUCTURE OLD. (ABOVE)DIVISIONAL STUCRTURE (BELOW).

20
 DIVISIONAL
HEAD.

HEAD SALES.

MANAGER MANAGER
MANAGER SALES. OPERATIONS. ENGINEERING.

SALES OFFICER. DEPOTS. ENGINEERING.

CORPORATE STRATEGY NEW.

BHARAT PETROLEUM-THE NEW “SBU”FORM STRUCTURE

The new structure was focused on the business processes and the customer.
The new structure at the top management level is the same. Five SBUs – Retail,
Lubes, Industry/Commercial, L.P.G. and Aviation are customer centered SBUs and
come under the director (marketing). The sixth SBU, Refinery along with two new
departments IT & Supply Chain and R&D are under the director (refineries). Each
SBU would have its own HR, IS, finance, logistics, sales, engineering, etc. The
number of layers in the organization was reduced to four from six or seven.
The major change is the introduction of the territories covering a smaller
geographical area and focusing on specific customer segments. In retail SBU the new
structure had 66 territories reporting to the four regional offices, where as in the
earlier structure there were only 22 divisions which catered to all segments. In other
SBUs the regional office was removed and territories were designed to directly report
to the SBU heads. Each territory team leader was responsible for sales in the territory
only for a specific product. The territory structure was designed to enable the field
staff to focus on specific customer segments. Authority was also delegated down the
hierarchy and decision making pushed to the lowest possible levels. Decisions earlier
taken at the regional level were taken now at the territory level. Further authority was
delegated to the role and not the hierarchy level. Administrative offices have been
moved to supply locations that consist of 125 terminals for main fuels and 35 L.P.G.
bottling ones. In L.P.G. SBU head office there are only nine personnel and across the
territories even managers at senior positions have been forced to get business.

The new design incorporated recalibration of roles and responsibilities and

redeployment of more than two thousand people (around one fifth of total employee

21
strength) across the organization. It created new roles at the front effectively using
redundant manpower to increase customer interface and interaction.

SOME SALIENT FEATURES OF THE NEW STRUCTURE ARE:

 Highly empowered work force

 Decentralized decision making
 De-linking of authority from hierarchical levels
 Orientation towards internal and external customers
 Regular market research and customer surveys
 Conscious brand building efforts

1.1. C. MARKETING.

Bharat petroleum understands people’s need as customers and relentlessly work

towards fulfilling them, working consciously towards providing added value in fuel
and non-fuel areas. The Corporation offers products and services that have been
designed to meet the need gaps of its customers. It is not easy as BPCL’s customer
base is a diverse one demanding of them to perform better and satisfy the needs of
some of their customers who fly in the air to the larger Indian populace who survive
on ‘Kerosene’ as their cooking fuel.

FUELLING AUTOMOTIVES.

Vehicle owner’s are always on the lookout for new offerings as well for tips &
pointers to keep their vehicles in top shape. BPCL understand their requirements and
have consistently tried to satisfy their needs. Information about all the high-class fuels
for vehicle as well as the lubricants is always updated to keep wheels running
smoothly.

OFFERING WORLD CLASS FUELS.

Since 2002, BPCL have introduced new generation branded fuels Speed, Hi Speed
Diesel and Speed 97, being the pioneers to introduce premium fuel brands in the
Country. These specialized products BPCL launched in line with global trends and
keeping pace with the technological advancements in the automobile industry leading
to introduction of new generation vehicles. Speed brand of petrol contains multi-
functional fuel additives that prevent formation of harmful deposits and help clean
existing deposits, thereby improving vehicle performance. SPEED has been the
market leader in the branded fuels category. BPCL has also introduced a high-end
Octane 97 variant Speed 97 catering to the requirement of vehicles at the upper end of
the tier. To meet the growing needs of the diesel passenger car segment, BPCL also
introduced Hi-Speed Diesel which is a blend of diesel and world-class multi-
functional additive which uses the internationally renowned Green Burn Combustion
Technology. This multi-functional additive enables the high performance vehicles to
deliver their designed outputs by removing harmful deposits from all fuel metering
systems and components. This also reduces particle level, black smoke and provides
longer engine life.

22
SERVICING THE CUSTOMER’S NEED.

BPCL recognized the customer need for pure quality and correct quantity of fuel for their
vehicles and launched the flagship initiative of Pure For Sure (PFS) offering the guarantee of
pure quality and correct quantity of fuel to our customers. The petrol pumps displaying a
prominent ‘Pure For Sure’ signage have become landmark destinations as the movement has
gained momentum across our Retail Network.BPCL now offer a robust and automated
network of retail outlets, which leverage technology to deliver the assurance of quality and
quantity promise, ensure integration of payment with fuelling and improves the service
efficiency at the forecourt of the petrol pump.

FOSTERING LOYALTY.

BPCL share rewarding relationships with their customers and building loyalty has
been a centre of focus with them. Recognizing the need of their customers to make
life more convenient and rewarding and introduced the first loyalty-cum-rewards
program, PetroBonus. Equipped with Smart Card Technology, the Petro Card program
combines convenience in payment along with an inbuilt rewards program that rewards
the customer with Petromiles every time he fuels. A similar program, Smart Fleet was
launched for Fleet Owners. The SmartFleet Programme offers the fleet owner an
unbeatable convenience, security and a host of privileges such as cashless
transactions, vehicle tracking, Credit Option for Fleet Owners and Cash Management
System.

CARING FOR CUSTOMER’S VEHICLE NEED.

BPCL also aim to provide service centre facilities through their V-CARE (Vehicle
Care) Centres across the urban network. The V-Care Centres provide customers with
reliable, transparent and value for money services for the basic vehicle care needs.
BPCL have tie ups with Hero Honda and General Motors for being their authorized
After Sales Service Centres apart from the other brands of cars and two-wheelers.
With BPCL’S reach to the nook & corner of the country they are always near to their
customers.

PARTNERING HIGHWAY JOURNEY.

On the highways, BPCL offer a home away from home to the truckers and the
tourists in the form of the GenerationNext OSTSs/OSTTSs (One Stop Truck cum
Tourist Shop) branded as GHAR. These outlets are built on a minimum of 3 to 5 acres
plot sizes and house dedicated and fully automated MS/HSD petrol/ diesel Fuelling
facilities to fuel all kinds and sizes of vehicles besides the specially designed offerings
for the highway travelers, that include a Food Court for Tourists and a Dhaba for
truckers, a dormitory with beds, a Safe, Secured and Spacious parking for trucks and
cars, a vehicle wash facility, Saloon, Laundry and Tailor shop, a Kirana shop, Bathing
facilities, dedicated toilets for Truckers and dedicated toilets for Tourists (Gents,
Ladies & Handicapped),Children’s Play area, Amphitheatre for entertainment, Health
care centre, Smartfleet Customer service centre ,Sanjha Chula for self cooking and
23
captive power generation. Assuring a network of outlets on the highway shows our
commitment to serve our highway customers with as much care as in the key cities.

AUTO L.P.G.-THE INTRODUCTION OF L.P.G. AS AUTO FUEL.

With the menace of rising vehicular pollution, use of L.P.G. as an auto fuel was proposed as a
pollution abatement measure. L.P.G. being a clean environmentally friendly fuel, will reduce
air pollution to a great extent if the vehicles are fuelled with L.P.G.. Bharat Petroleum was the
first Oil Company to take the initiative for setting up of an Auto L.P.G. Dispensing Station
(ALDS) and run vehicles on L.P.G. as a pilot project in Delhi in October 1999.BPCL today have
over 70 Auto L.P.G. Dispensing Stations (ALDS) in various cities (including metros) in the
country.

BRAND MANAGEMENT.

In the highly competitive scenario, it has become imperative to own

dominant brands. The Brand Management team at Bharat Petroleum endeavours to
build and manage a strong brand image reflecting Bharat Petroleum's core values of
being 'INCARE',viz. INnovative, CAring and REliable. Emphasis is laid on
continuously understanding customer behaviour, tracking their changing needs and
expectations, and meeting these needs in the most cost-effective manner.

STRATEGY DEVELOPMENT.

Bharat Petroleum recognises that all strategic initiatives must conform to the overall
vision of the Corporation and improve the economic value. The Strategy
Development effort at the corporate level achieves better focus in the new
organisational structure, besides facilitating the SBUs in developing their respective
strategies that lead to an integrated Corporate Strategy. A Business Planning process
has been put in place that not only provides opportunities for the SBUs to pursue their
visionary goals in consonance with the Corporate Vision, but also continuously
monitors trends and identifies strategic opportunities for the Corporation.

“ON 16TH APRIL, 2009 BPCL LIFTED MARKETING COMPANY OF THE

YEAR AWARD AGAIN AFTER 2008.”

1.1. D. FINANCE AND ECONOMIC.

24
 BPCL is primarily an energy processing and marketing company and a Public Sector
Undertaking (PSU). The central government of India holds a stake of 54.93% in the
company and the state government of Kerala has a shareholding of 0.86%. Although
BPCL export products to other countries, particularly those in the South Asian region,
BPCL’s focus on their principal and most important market, India, is unwavering. It is
projected that the energy needs and the demand of the country will increase
significantly in step with economic growth. The demand for oil and petroleum
products is also expected to increase simultaneously. The Planning Commission of
India has projected that demand for oil will increase by over approximately 20% from
2005-06 levels by 2012.To meet the challenge of an evolving and growing market,
BPCL have designed and deployed various strategies that will help us not only to
meet the energy needs but also fulfil their responsibility to shareholders and
contribute towards inclusive growth. BPCL’s revenues increased by about 12%
though Profit after Tax (PAT) decreased by 12.26% when compared to previous years.
Their total capital expenditure was Rs.20.66 Billion for the financial year 2007-08, as
compared to Rs.18.34 billion during the year 2006-07. During the year 2007-08, the
average cost of Indian crude basket was significantly higher than the corresponding
figure of the previous year. Due to volatility in crude prices, OMCs in India faced a
considerable strain in their liquidity. BPCL’s profits have suffered due to the rising
under-recoveries arising out of subsidies on SKO, domestic L.P.G., and also Motor
Spirit and High Speed Diesel under-recoveries due to price regulation by the
government. As a means to compensate this, Government of India set up a mechanism
for sharing this subsidy burden. Out of the total under recoveries, one-third was
shared by the PSUs in upstream sector through discounts on crude purchased, one-
third by Government’s Oil bonds and balance by OMCs. New ideas are also being
tested and tried in BPCL’s retail business, so as to maximize the advantage that they
possess by having established retail outlets spread across the country. As a result of
aggressive marketing, the retail business was able to achieve an impressive growth of
13% compared to the previous year.

1.1. E. HUMAN RESOURCE.

Sarting in August 2002, Bharat Petroleum, under the aegis of the Public Enterprises
Selection Board, in association with the Hay Group, conducted an empirical research
study, the first of its kind, to identify leadership competencies necessary for Indian
CEOs. The study was conducted under rigorous methods developed at the McClelland
Centre for Innovation and Research at Boston. These included criterion sampling,
Behavioural Event Interviews, expert panels, coding, concept formation, performance
outcome analysis and validation.

The outcome of that study is ‘The Indian CEO Competency Model’, wherein
Competencies for Success were drawn up, providing keys to outstanding Indian
Corporate Leadership in our time. The model comprised 11 competencies, that can be
arranged in four groups or clusters, which are:

 SOCIAL RESPONSIBLE BUSINESS EXECELLENCE.

1. Adaptive Thinking.
2. Entrepreneurial Drive.
3. Excellence in Execution.
25
  ENERGIZING THE TEAM
1. Driving Change.
2. Team Leadership.
3. Empowerment with Accountability
 MANAGING ENVIRONMENT
1. Networking.
2. Organizational Awareness.
3. Stakeholder Influence.
 INNER STRENGTH.
1. Executive Maturity.
2. Transcending Self.

Qualities such as change and team leadership, accountability, empowerment,

networking and executive maturity are some of the critical dimensions of leadership
highlighted in this book. It also charts a countrywide blueprint of how CEOs think,
act and feel and exhibit typical effective behaviours worthy of emulation. The
findings of this study would help in providing food for thought for existing leaders, as
well as developing future leaders and benchmarking their skill-sets, strategies and
successes. The few of other common human resource activities undertaken by BPCL
are as:

 Efficiently supervising a team of 150 members.

 Effective day-to-day office management.

 Ensuring complete logistics and administrative support for conducting meetings.

 In charge of office correspondence and mail management functions.

 Training need analysis Induction programmes Arrangement;

Manpower/Recruitment planning·

 Preparation of annual targets for personnel.

 Coordinating Staff appraisals.

 Good Interpersonal skills; Adept at Indenting and inventory of

office stationery.

 Manifested expertise in organizing social functions for staff members as a part

of boosting industrial relation.

1.1. E. OPERATIONS.

The core business operations of Bharat Petroleum are Petroleum Refining. It belongs
to the oil & gas operations industry. Although it carries the ancient Sanskrit name for
India (Bharat), Bharat Petroleum Corporation Limited (BPCL) is a modern refining
and distribution company. It vies with Hindustan Petroleum for the #2 slot behind
Indian Oil. The company processes petroleum and petroleum products; its refinery in
26
Mumbai processes 260,000 barrels of crude per day. It also controls refineries in
Kochi and Numaligarh. BPCL sells engine oils and gasolines, liquefied petroleum gas
(L.P.G.), and kerosene. It has more than 6,550 gas stations, more than 1,000 kerosene
dealers, and a national network of L.P.G. distributors. The Indian government owns
55% of the firm, although it plans to sell this stake as part of industry wide
deregulation. The various other operational functions of BPCL are as:

APRON FUEL MANAGEMENT SYSTEM & E-BIZ SOLUTION.

BPCL is the first and only oil company in India to implement “Apron Fuel
Management System” which is a powerful and comprehensive system that combines
the vehicle (Point of Sale) and office support functions into a single seamless
interface reducing human intervention and enhancing accuracy. BPCL also provides
E-Biz solution to their customers.

OVERSEAS PROJECTS.

BPCL Aviation SBU has entered into a contract with Larsen & Tourbo-ECC
Division and is rendering its expertise to M/s L & T - ECC Division for successful
completion of “New Aviation Fuel Depot at Kuwait for Kuwait Aviation Fuelling
Company (KAFCO)”.The scope of service includes Technical Consultancy by
Aviation/Engineering & Projects specialists having domain expertise, Preparation of
Pre-Commissioning and Commissioning procedures. BPCL is assisting in performing
Pre-Commissioning and Commissioning of entire facility at KAFCO project, training
of Owner's personnel in India (Class room training) and on job training at KAFCO
site, Kuwait, participation in HAZOP/SIL/ALARP study and assistance to evaluate
remedy on the findings as advised by HAZOP committee chairman (i.e.
recommendations by 3rd party from that study), assistance in Procurement related
activities and preparations of Operations& Maintenance and QC Manual.

HYDRANT OWNERS & OPERATOR AND EQUITY AT”CIAL”.

BPCL is the first oil company to participate in Greenfield airport in India. BPCL hold
equity stake in Cochin International Airport Ltd. which is the first airport built under
private-public participation and have state of art hydrant refuelling system at the
airport built by them.

1.1. F.RESEARCH AND DEVELOPMENT.

Over the years, Bharat Petroleum continues to meet the challenges of the rapidly
changing environment, leading to changes in the marketing of products and services.
In all these changes, only one factor has remained constant and has been the source of
Bharat Petroleum's strength and inspiration for any future innovations - Bharat
Petroleum's People. The feeling of ownership has facilitated all employees to

27
understand the complexity of the market and needs of the customers, and respond to
these needs with innovative initiatives and offerings.

Research and development Centre always on the forefront to innovate, Bharat

Petroleum is making distinct efforts towards Research and Development (R and D).
Besides the R and D facilities at the Refinery and the Product Application
Development Centre in Sewree in Mumbai, a new state-of-the-art RandD Centre is
being set up near Delhi. The R and D Centre is being organised around three core
groups – Process and Technology Development, Product Application Development
and Environmental Engineering. A total outlay of Rs.3,000 million has been planned
to be spent in three phases up to the year 2003-04 on this project.

BHARAT PETROLEUM- THE TECHNOLOGICAL EDGE.

Bharat Petroleum has always been on the forefront of harnessing technology

initiatives for BPCL has been on forefront in harnessing technology. Maximising
efficiency and achieving greater customer satisfaction.
Bharat Petroleum is the first Public Sector Oil Company to implement Enterprise
wide Resource Planning (ERP) solutions - SAP. The implementation project known as
ENTRANS (Enterprise wide Transformation) has been awarded the 'SAP Star
Implementation Award', with Bharat Petroleum having the distinction of executing the
largest and the most ambitious SAP project in India. The challenge of SAP
implementation was to ensure that all the integrated elements (of the complex multi-
modular integrated solutions that impact the entire workflow of the organisation)
work seamlessly across the length and breadth of the country, including the remote
locations. Providing online connectivity in these remote locations, given the full-
fledged IT network infrastructure, was in itself a daunting task.

Bharat Petroleum is reaping the benefits of the integrated system in many areas of its
operations. The early gains of implementation are in the areas of tracking customer-
receivables, monitoring credit-management, inventory management, besides easing
the operations in a large number of areas. Furthermore, Bharat Petroleum has also set
up one of the biggest 'Centres of Excellence' in Asia to provide online support to the
end users and also work towards continuous improvement in business processes and
handle product upgrades and new generation products.

With SAP as the IT backbone, Bharat Petroleum plans to take advantage of the
Internet based capabilities along the entire value chain with a Customer Relationship
Management solution. A large data warehouse project has also been implemented,
which facilitates access to real-time accurate information on key performance
indicators at all Bharat Petroleum locations. This enables the management to take
strategic and business decisions, thus ensuring value-added services, better customer
satisfaction and enhanced .

1.2. B.BRIEF ABOUT THE COMPETITORS.

THE FOLLOWING ARE THE TOP FIVE COMPETITORS OF BHARAT

PETROLEUM CORPORATTION LIMITED:

INDIAN OIL CORPORATION LIMITED.

28
 Indian Oil Corporation is an Indian public-sector petroleum company. It is India’s
largest commercial enterprise, ranking 116th on the Fortune Global 500 listing (2008).
It began operation in 1959 as Indian Oil Company Ltd. The Indian Oil Corporation
was formed in 1964, with the merger of Indian Refineries Ltd. Indian Oil and its
subsidiaries account for a 47% share in the petroleum products market, 40% share in
refining capacity and 67% downstream sector pipelines capacity in India. The Indian
Oil Group of Companies owns and operates 10 of India's 19 refineries with a
combined refining capacity of 60.2 million metric tons per year. On 30th June 2009
Indian Oil will complete 50 years of its existence and a series of events are being
planned to celebrate its Golden Jubilee Year.

Overview Indian Oil operates the largest and the widest network of fuel stations in
the country, numbering about 17606 (15557 regular ROs & 2049 Kissan Sewa
Kendra). It has also started Auto L.P.G. Dispensing Stations (ALDS). It reaches
Indane cooking gas to over 47.5 million households through a network of 4,990
Indian distributors. In addition, Indian Oil's Research and Development Centre
(R&D) at Faridabad supports, develops and provides the necessary technology
solutions to the operating divisions of the corporation and its customers within the
country and abroad. Subsequently, Indian Oil Technologies Limited - a wholly owned
subsidiary, was set up in 2003, with a vision to market the technologies developed at
Indian Oil’s Research and Development Centre. It has been modelled on the R&D
marketing arms of Royal Dutch Shell and British Petroleum.

HINDUSTAN PETROLEUM CORPORATION LIMITED.

HPCL (Hindustan Petroleum Corporation Limited) is a Fortune 500 company, with

an annual turnover of over Rs 1,03,837 Crores ($ 25,142 Millions) during FY 2007-
08, 16% Refining & Marketing share in India and a strong market infrastructure.
Corresponding figures for FY 2006-07 are: Rs 91,448 crores ($20,892 Million).

The Corporation operates 2 major refineries producing a wide variety of petroleum

fuels & specialties, one in Mumbai (West Coast) of 5.5 MMTPA capacity and the
other in Vishakhapatnam, (East Coast) with a capacity of 7.5 MMTPA. HPCL holds
an equity stake of 16.95% in Mangalore Refinery & Petrochemicals Limited, a state-
of-the-art refinery at Mangalore with a capacity of 9 MMTPA. In addition, HPCL is
progressing towards setting up of a refinery in the state of Punjab in the joint sector.

HPCL also owns and operates the largest Lube Refinery in the country producing
Lube Base Oils of international standards. With a capacity of 335 TMT. This Lube
Refinery accounts for over 40% of the India's total Lube Base Oil production.

The vast marketing network of the Corporation consists of Zonal offices in major
cities and over 91 Regional offices facilitated by a Supply & Distribution
infrastructure comprising Terminals, Aviation Service Stations, L.P.G. Bottling Plants,
and Inland Relay Depots & Retail Outlets. The Corporation over the years has moved
from strength to strength on all fronts. The refining capacity steadily increased from
5.5 million tonnes in 1984/85 to 13.70 million metric tonnes (MMT) presently. On the
financial front, the turnover grew from Rs. 2687 crores in 1984-85 to an impressive
Rs 1,03,837 Crores in FY 2007-08. HPCL also owns and operates the country’s
largest Lube Refinery, producing Lube Base Oils of international standards. With a
29
capacity of 335,000 Metric Tonnes. This refinery accounts for over 40% of the
country’s total Lube Base Oil production.

The vast marketing network of the Corporation consists of Zonal offices in the 4
metro cities and over 85 Regional offices facilitated by a Supply & Distribution
infrastructure comprising Terminals, Aviation Service Stations, L.P.G. Bottling Plants,
and Inland Relay Depots & Retail Outlets.

RELIANCE INDUSTRIES LIMITED.

Reliance Industries Limited (NSE: RELIANCE) is India's largest private sector

conglomerate (and second largest overall) with an annual turnover of US$ 35.9 billion
and profit of US$ 4.85 billion for the fiscal year ending in March 2008 making it one
of India's private sector Fortune Global 500 companies, being ranked at 206th
position (2008). It was founded by the Indian industrialist Dhirubhai Ambani in 1966.
Ambani has been a pioneer in introducing financial instruments like fully convertible
debentures to the Indian stock markets. Ambani was one of the first entrepreneurs to
draw retail investors to the stock markets. Critics allege that the rise of Reliance
Industries to the top slot in terms of market capitalization is largely due to Dhirubhai's
ability to manipulate the levers of a controlled economy to his advantage. Though the
company's oil-related operations form the core of its business, it has diversified its
operations in recent years. After severe differences between the founder's two sons,
Mukesh Ambani and Anil Ambani, the group was divided between them in 2006. In
September 2008, Reliance Industries was the only Indian firm featured in the Forbes's
list of "world's 100 most respected companies".

CHENNAI PETROLEUM CORPORATION LIMITED.

Chennai Petroleum Corporation Limited (CPCL), formerly known as Madras

Refineries Limited (MRL) was formed as a joint venture in 1965 between the
Government of India (GOI),AMOCO and National Iranian Oil Company (NIOC)
having a share holding in the ratio 74%: 13%: 13% respectively. From the grassroots
stage CPCL Refinery was set up with an installed capacity of 2.5 Million Tonnes Per
Annum (MMTPA) in a record time of 27 months at a cost of Rs. 43 crore without any
time or cost over run.

In 1985, AMOCO disinvested in favour of GOI and the shareholding percentage of

GOI and NIOC stood revised at 84.62% and 15.38% respectively. Later GOI
disinvested 16.92% of the paid up capital in favour of Unit Trust of India, Mutual
Funds, Insurance Companies and Banks on 19 May 1992, thereby reducing its holding
to 67.7 %. The public issue of CPCL shares at a premium of Rs. 70 (Rs. 90 to FIIs) in
1994 was over subscribed to an extent of 27 times and added a large shareholder base
of over 90000.As a part of the restructuring steps taken up by the Government of
India, Indian Oil Corporation Limited (IOCL) acquired equity from GOI in 2000-01
Currently IOC holds 51.88% while NIOC continued its holding at 15.40%. In view of
the CPCL become subsidiary of IOCL in 2001. The Manali Refinery has a capacity of
9.5 MMTPA and is one of the most complex refineries in India with Fuel, Lube, Wax
and Petrochemical feedstock production facilities. CPCL is also the company where
NRI businessman Mr.C.Sivasankaran worked as a fabrication contractor.

MANAGLORE REFINERY AND PETROCHEMICALS LIMITED.

30
 Mangalore Refinery and Petrochemicals Limited (MRPL), located at Katipalla, north
from centre of Mangalore city, is a state-of-the-art Grass root Refinery at Mangalore
and is a subsidiary of ONGC, set up in 1998.The refinery was established after
displacing five villages of Bala, Kalavar, Kuthetoor, Katipalla, and Adyapadi.

The refinery has a versatile design with high flexibility to process crudes of various
API and with high degree of automation. MRPL has a design capacity to process 9.69
million metric tonnes per annum and is the only refinery in India to have two
hydrocrackers producing premium diesel (high cetane). It is also the only refinery in
India to have two CCRs producing unleaded petrol of high octane. Currently, the
refinery is processing about 12.5 million tonnes of crude per year and had a turnover
of US$ 8 billion during last year.

MRPL, which was a joint sector company, become a PSU subsequent on acquisition
of its majority shares by ONGC. As on 1 April 2007, 71.62% shares are held by
ONGC, 16.95% shares are held by HPCL and remaining shares are with public and
financial institutions. MRPL has also been declared as Miniratna, a mini jewel, by
Government of India in 2007.

Before acquisition by ONGC in March 2003, MRPL was a joint venture oil refinery
promoted by M/s Hindustan Petroleum Corporation Limited (HPCL), a public sector
company and M/s IRIL & associates (AV Birla Group). MRPL was set up in 1988
with the initial processing capacity of 3.0 million metric tonnes per annum that was
later expanded to the present capacity of 9.69 million metric tonnes per annum.

The refinery was conceived to maximise middle distillates, with capability to process
light to heavy and sour to sweet crudes with 24 to 46 API gravity. On 28 March 2003,
ONGC acquired the total shareholding of A.V. Birla Group and further infused equity
capital of Rs.600 crores thus making MRPL a majority-held subsidiary of ONGC. The
lenders also agreed to the debt restructuring package (DRP) proposed by ONGC,
which included, inter alia, conversion up to Rs 365 core of their loans into equity.
Subsequently, ONGC has acquired equity allotted to the lenders pursuant to DRP
raising ONGC’s holding in MRPL to 71.62 percent.

2.1. Objective of the study.

the objective of the study for industries are to find out:

 The relevence of L.P.G. used in accordance with the product that is being
manufactured in respective industry.
 Marketing Industry of L.P.G. in industries based on preferences, priority and
individuality.
31
  Requirement on L.P.G. in jewellry, iron, steel and ancillary industries.

2.2. Scopes and limitations of the study.

Scopes of the study.

 The study covers all the industry of Bharat Petroleum products.

 This study covers the opportunity analysis of L.P.G. of bharat petroleum
in jewellry,auto mobile , steel and anciallary industries as well as in retail
market.

 The study also covers analysis of industries requirement and consumption

of L.P.G. in industries as well as awareness, perception and consumption
of L.P.G. by common endindustrial-users through bpcl

 The survey has provided the company with much new l.p.g gas related
information of industries and other business contacts who might be
potential customers of Bharat Petroleum Corporation Limited.

 This survey also provides an insight about the prioritization factors of the
industries and retailers for comsuming and selling decision respectively.

Limitations of the study

 lack of interest and enthusiastic responses may have allowed biases in this
report in the form of “non-responsive error”.

 Correctness of this report is restricted and limited by the degree of

authenticity of data collected and sincerity and honesty of respondents.

 Area of study is restricted to Sagar Region only which is a major

limitation. The national scenario may be totally different from the results
of the above mentioned areas.

2.3. Research methodology.

Methodology and approach.

The study was qualitative in nature based on industrial and retailer consumption and
stock keeping units decision respectively. Field research was carried out for the
survey both for the case of industries and retailers. For industries the study was
descriptive in nature where as for retailers it was exploratory.

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 Data source – primary data source as new facts and figures are being collected from
the project.

sampling plan.

The main target area for the purpose of collecting the sample for the study was
Sagar region where the main target population was jewellery, iron steel & ancillary
industries and retail shops selling L.P.G. to consumers and end-users. Finally
probablistic clustered sampling was done since every industry and retailers had an
equal chance of being selected.

Research instrument.

separate questionnaires were being prepared both for industry and retailers where
each consisted open-ended, close-ended, checklists and straight-forward type
questions. The mode of collecting the data was basically interview-administered and
face to face conversations for both industry and retailers.

2.4. DATA ANALYSIS.

2.4. A. INDUSRTY (BUSINESS TO BUSINESS)

The project perambulates round the requirements of liquid petroleum gas in textile,
iron steel, Textile and ancillary industries. The main purpose of the study was to find
out the requirements of various types of liquid petroleum gas such as mainly 14
kg.domestic,19 kg industrial smallest size as well as 35 and 47.5 kg gas and other
various types of gas. Through this analysis we were also able to find the priority of
parameters which helps in making an industry’s decision of buying L.P.G. from a
particular company, distributor or from any other source of supply. Other factors that
we were being measured through this study were like that of performance level
monitoring, average monthly consumption of industries for liquid petroleum gas.

The following are the analyzed parameters which are known to be significant for
industries in terms of consumption, requirement:

MONTHLY CONSUMPTION OF INDUSTRIES.

The monthly consumption of liquid petroleum gas varied from industry to industry
depending on the size of the industries i.e. large, medium and small scale industries.
The following graph shows the consumption rate of industries cumulative of both the
industrial area.

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The following graph shows the consumption of liquid petroleum gas in respective industries:

These are the major industry in which I have visited for the purpose of data collection in jeweller
well as sweets and others

THE MARKET SHARE OF ENTIRE SERVICE PROVIDER

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It is found that I.O.C.L is the number one gas industry in the sitapura as well as Pratap Nagar and
sanaganer and than comes B.P.C.L. in second possition than after HPCL , RELIANCE AND
SUPPER respectively.

MOST CONSUMED BRANDS IN INDUSTRIES.

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It is found that IOCL’s L.P.G. brand has the high frequency of consumption when
analysis is done on cumulative basis of both the area. BHARAT PETROLEUM comes
second but this is only due to the fact that it is being consumed only in small scale
industries like jewellery, sweet crushers and that too in a very small quantity (the
above graphs best gives the representation).Both BPCL and HPCL too have good
proportion of market share of L.P.G. in industries as per the frequency obtained from
the analysis.

FREQUENCY OF MOST CONSUMED BRANDS IN ALL THE AREA

The results were the same when individual area wise frequency analysis was done.
IOCL still topped the market of industries with BPCL and HPCL coming to second
and third position respectively.

THE FREQUENCY OF BRAND CONSUME IN INDUSTRY

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 PARAMETERS WHICH DECIDES TO BUY L.P.G..

From the research it was found that all industries(both small and large scale) buy their
required portion of L.P.G. on the basis of PRICE factor, similarly does the same on
SERVICE as well as RECOMMENDATION AND OTHERS. The parameter “OTHER”
includes sub-parameters like that of QUALITY, SATISFACTION, and WAIGHT etc.

The given graphical representation gives the best over view of the parameters on
which all the industries as well as general means domestic customers decide their
process of buying L.P.G. as for the purposes of consumptions and requirements:

2.5.FINDINGS .

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 FINDINGS FROM INDUSTRIES .

For industries, the requirements of liquid petroleum gas basically varied as per
the nature of the products that are being manufactured which is typically high for large
scale industries like JEWELLRY, BOTCH, SAWARIYA SWEETS,IRON STEEL
& ,MAHINDRA AND MAHINDRA etc.Similarly the rate consumption is low for
medium and small scale industries. From the analysis it was quite clear that
irrespective of the size of industries, PRICE always remained the major parameter
which helps them for the purpose of buying gas. The same was found out when
individual analysis was done on each area. It is also found from the analysis of both
the area in cumulative as well as individual form that a majority number of industries
are sourcing their lubricant requirements from distributors rather than directly from
company of the brand they are consuming. From the survey it can be concluded that
the average consumption of L.P.G in SITAPURA industrial area is nearly about 11500
cylinders whereas the consumption for industries in PRATAP NAGAR is nearly 2100
litres which is quite low when compared to that SITAPURA.

FINDINGS FROM RETAIL (BAZAAR) MARKET.

From the analysis it was found that INDIAN OIL is the market leader in of L.P.G. in
bazaar market. Similarly BHARAT PETROLEUM comes second and thereafter HPCL,
SUPPER, AS WELL AS RELIANCE are ranked respectively as third, fourth and fifth
respectively.

In retail market, for both the area taken together as well as on individual level, the
total sale of domestic L.P.G. products are quite dominant, after which industrial
product 19 kg L.P.G. products have the second majority. This is due to the fact that
both SITAPURA and PRATAP NAGAR are industrial area.

DEMAND has been one of the major parameter for retailers for which they keep
stocks of domestic selling it to the market. Hence it can be inter linked that domestic
cylinder has the maximum demand as it is the highest selling cylinder in both the area
individually. After demand, MARGIN is the second most important parameter for
retailers for keeping a cylinder. This is so because it is quite natural that margin is the
parameter that gives profit to the retailer.

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Recommendation

Bharat petroleum is performing well in its industry but the major changes that BPCL
needs to is following

 Company need to do competitor analysis through which the can understand the
new pricing strategy so that company can sustain in the market because
competitors are very hyper in the market through pricing as Supper as well as
Reliance gas

 Company need to take feedback from time to time so that company can deliver
better service to consumer so that consumer can get better after sale service

 BPCL need to penetrate retail market for industrial product as well as domestic
product so that company can increasing the market share because a lot of person
has no time to take connection and the company goes to them they take connection
from him

 Company should organize campaign for new connection so that industrial and
domestic customer can take easy connection , this is the easy way through which
company can easily increase market share

 Company need to appoint a person who can do direct marketing and customer can
easily send and solve their problems

 Company should be target oriented so that every staff can give hundred percent in
the company work and company can compete with private player

 BPCL should also initiate the loyalty program to the existing customer so that
existing customer can be loyal and new customer can be attract as many retail
marketer

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 Conclusion

Bharat Petroleum Corporation Limited is one of the leading in Indian petroleum

arena, the main competitor of BPCL were IOCL as well as HPCL but in the present
scenario Supper as well as Reliance private player came in to existing so company is
getting more and more competition from private player
Company has have good policy as well as good distribution but the only thing is
company need to be more transparent towards the customer. Customers have had a
lot of problem in taking connection so company need to organize campaign for
connection at list in metropolitan city because private players are taking good
response from the market and they are providing connection with ought any hurdle
and because of that customer are attracting towards private player
According to me and my project analysis I came to this point that BPCL need to be
more transparent towards the customer for domestic customer and for industrial
product company need to do direct marketing, in present scenario because
competition is going to be more hyper in the market because private players are
taking more market share because of service although their product is not good in
the comparison of BPCL and others PSU in this industry.

Bibliography:-

I have found secondary data from the following sites:

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 1. www.wikipedia.com
2. WWW.BHARATPETROLEUM.IN
3. www.bharatpetroleum.com/wheels
4. www.about.com
5. www.yahoo.com
6. www.google.co.in
7. WWW.CNNMONEY.COM
8. www.speedfuels.com

 Marketing Management – Philip Kotler

 Mak Industrial Fuel And Getit B2b Book.

Industrial Guide.

Field Survey Questionnaire

ContactPerson_______________________(M)________________

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 1. What fuel do you use?

L.P.G. Oil Coal Electricity Solar

Power

2. If L.P.G. user (Brand Used)

BP HP IOL Other

If other, please specify__________________________________________

3. What size of L.P.G. cylinder does your company use?

Please specify__________________________________________

4. What is the average consumption per month? What is the cost per month?

_____________________________________________________________________

What is the delivery period? (After placing order)

Same day Next day + 3days

5. Does the supplier offer discounts? Credit?

% days

6. What is L.P.G. used for in your factory?

_______________________________________________________________

7. Do you face supply problem?

_______________________________________________________________
_______________________________________________________________

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