A DISSERTATION REPORT

ON
“MARKETING ANALYSIS OF PETROLEUM
PRODUCTS (PETROL AND DIESEL) BY HPCL IN
UTTAR PRADESH”

Submitted in the partial fulfillment of

Master of Business Administration (MBA)

UNDER THE SUPERVISION OF SUBMITTED BY:

Dr. M.S. Khan Satish Kumar
Head of Department MBA MM 4th Sem.
Enrolment No. 968/19
Roll No.- 193606

DEPARTMENT OF RURAL MANAGEMENT

BABASAHEB BHIMRAO AMBEDKAR UNIVERSITY
(A CENTRAL UNIVERSITY)
Vidya Vihar Raibarely Road, Lucknow
 DECLARATION

I undersigned, hereby declare that the project titled “Marketing Analysis of Petroleum
Products (Petrol and Diesel) By HPCL in Uttar Pradesh” submitted in partial fulfillment for
the award of Degree of Master of Business Administration of Amity University Uttar Pradesh is
a bonafide record of work done by me under the guidance of Dr. M.S. Khan, Head of
department, DEPARTMENT OF RURAL MANAGEMENT BABASAHEB BHIMRAO
AMBEDKAR UNIVERSITY (A CENTRAL UNIVERSITY). This report has not previously
formed the basis for the award of any degree, diploma, or similar title of any University.

Date:__________ Satish Kumar

MBA MM 4th Sem.
Enrolment No. 968/19
Roll No.- 193606

ii
 PREFACE

Filed study is an important part of the Management studies. It bears immense important in the

field of Business Management. It provides the student to take a look at the valuable treasure of

experience and an exposure to real work culture followed by the industries and helping the

students to bridge the differences between the theories explained in the book and their practical

implementations.

Research plays an essential role in future building of an individual so that we can understand the

real world in which he has to work in time lies ahead. The theories greatly strengthen our

knowledge and provide opportunities to blend theoretical with the practical knowledge where

researcher gets familiar with certain aspect of research. I feel proud to get myself to do research

at topic “Marketing Analysis of Petroleum Products (Petrol and Diesel) By HPCL in Uttar

Pradesh”.

iii
 ACKNOWLEDGEMENT

In order to achieve a task, situations and persons combined together to form a background.

“Marketing Analysis of Petroleum Products (Petrol and Diesel) By HPCL in Uttar

Pradesh”. This research report is a result of contribution of definite personalities whose

guidance here made my effort a constructing one .

I would like to express my immense sense of gratitude to my respectable guide

distinguished personalities for their precious suggestions and encouragement

during the project. The experience which I earned during this project is

essential for me at this essential point of my career.

I express my gratitude to Dr. M. K. Rastogi (Head of Department of Management Studies) for

allowing me to participate in this research report program and project guide Dr. M.S. Khan for

her kind support and supervision under whose constant guidance I had the opportunity to

expand my horizons and view the various problems from different prospective. I am also

thanking him for sparing his valuable time to listen to my problems and difficulties faced by me

during the completion of this project report.

Satish Kumar
MBA MM 4th Sem.
Enrolment No. 968/19
Roll No.- 193606

iv
 EXECUTIVE SUMMARY

Hindustan Petroleum Corporation Limited, commonly known as

HPCL is an Indian State government owned oil and gas company. It is the second largest
commercial oil company in the country.

1. To get to know the various crude oil products of IOCL

2. To understand the procedures which takes place in this company that is from buting or
digging oil to refining of the oil products like petrol, diesel and so on.

Automobile runs on petrol and there are many varieties of automobiles like two wheeler
and four wheeler and more than four wheeler run on the road. The engines which needs
petrol as fuel engine,also needs oil for smooth
Running of the engine.

One of the major suppliers of such engine oils and other different types of oils in India is
HPCL. The study is
conducted to find out the perception of customers towards
engine oils offered by HPCL. Around 50 customers of 4 wheelers alone and 50 customer
of 2 wheelers were conducted to obtain their perception on different types of engine oils
available in the market.

v
 TABLE OF CONTENT

Sr. No. Particular Page No.

Declaration ii
Certificate iii
Acknowledgement iv
Preface v
Executive Summary vi
Approved copy of Synopsis vii
1. Introduction to the Topic 1
2. History 3
3. Statement of Problem 14
4. Company Profile 15
5. Literature Review 37
6. Objectives of the study 38
7. Research Methodology 40
8. Data Analysis & Interpretation 44
9. Findings 60
10. Suggestions & Recommendation 63
11. Conclusion 66
12. Limitations of Study 68
13. Bibliography 77

vi
INTRODUCTION
 INTRODUCTION

INDUSTRYPROFILE:

Hindustan Petroleum Corporation Limited is a holding company. The Company is

occupied in the business of refining of crude oil and petroleum products’ marketing. It

operates through two segments: Downstream, and Exploration and Production of

Hydrocarbons. The Downstream segment occupies in refining, marketing and

transportation of petroleum products. It offers motor spirit, diesel of high speed and

liquefied petroleum gas (LPG). It has products and services which comprises aviation

turbine fueland petroleum products that are marketed to consumers; LPG (HP Gas);

HP Lubes and product pipelines. It has refineries situated at Mumbai and

Vishakhapatnam, LPG bottling plants and Lube blending plants. Its refineries upgrade

the crude petroleum into various products and over various grades of lubricants,

specialties and greases. The Company's marketing infrastructure includes a network

of installations,terminals, depots, retail outlets, aviation service stations and LPG

distributors.

Major Achievements of Hindustan Petroleum Corporation Ltd.

 Currently India's 2 ndlargest company by sales.

 2ndHighest ranked Indian company in the prestigious Fortune 'Global 500'

listing, at 135th position.

 20th largest petroleum company in the world.

2
HISTORY:

1952

- The Company was integrated in the name of Standard Vacuum Refining Company
of India Limited under the Indian Companies Act, VII of 1913on July 5, 1952.

1962

- On 31st March, the name was amended to ESSO Standard Refining Company of
India Limited
1974

- The name of the company was changed to its present name Hindustan Petroleum
Corporation Limited On 31st March, when Lube India and ESSO Standard Refining
Company of India Limited. A certificate to this change was issued by the Registrar of
Companies, Mumbai on September 4th.

2010

- Dr. Gitesh K. Shah was appointed as Non-Official Director on the Board of HPCL
effective from December 07, 2009.

2011

- Oil and Gas Marketing Company of the Year award was won by HPCL

- Hindustan Petroleum Corp Ltd (HPCL) and Oil India Limited (OIL) have signed a
memorandum of understanding (MoU)

2012

- By taking a majority stake of 51 per cent in Rs 25,000-crore refinery,HPCL has now

become a promoter of the Rajasthan refinery.

2013

3
-HPCL has informed BSE that a Memorandum of Understanding (MOU) was signed
between M/s. Hindustan Petroleum Corporation Limited (HPCL) and Government of
Rajasthan (GOR) in Barmer District of Rajasthan.

-a 50:50 joint venture with Shapoorji Pallonji Group for LNG terminal for import of
liquid gas (LNG) was entered by HPCL

2014

-HPCLs Mumbai Refinery has bagged the coveted ''National Energy Conservation
Award (First prize)'' in the Refinery Sector for the year 2014.
- KSP on World s Highest Motorable Road was inaugurated by HPCL.

2015

-Hindustan Petroleum Corporation Ltd (HPCL) has approved the proposal for
implementation of capacity expansion of the company''s Mumbai refinery from 7.5
MMTPA to 9.5 MMTPA.

- a PLATINUM RATING was awarded to Hindustan Petroleum Corporation

Limited''s HP Nagar East Colony, Mumbai

- a new commercial scale unit developed based on HPCL R&D technology at Visakh
Refinery inauguration done which was named HPCL - HP-Hi GAS Unit,

- Marketing of Bio-Fuel blended High Speed Diesel (B-5 Diesel) in select retail
outlets of the country was done by HPCL - Oil Marketing Companies.

2016

- Shares of Petronet MHB Ltd. From Petronet India Ltd. was acquired by Hindustan
Petroleum Corporation Ltd

- Golden Peacock Award 2016 was received by Hindustan Petroleum Corporation

Ltd

4
GROWTH AND PROSPECTS

The company has been year on year displaying exceptional performance which has

qualified the Corporation for ‘Excellent’ ratings in terms of the MOU signed with the

Government of India. For the year 2012-13 the MOU score was 1.034 , which is the

best score amongst all the PSUs under MOP&NG for the second successive year. The

performance of the Corporation for the year 2013-14 also qualifies for “Excellent”

rating basis self-evaluation. HPCL enjoys about 21% market share among PSU in

India as of March 2014. HPCL also has the country's largest Lube Refinery with a

capacity of 450 Thousand Metric Tonnes which amounts to about 40% of the national

capacity of Lube Oil production.

HPCL has provided India, a strong ground inthis sector with it’s world class Lube

Base Oils. Presently HPCL produces over 350+ grades of Lubes, Specialities and

Greases and is the country’s largest lube marketer. HPCL's infrastructure is at par

with that of the best global standards in the hydrocarbons sector, it’s vast marketing

network consists of 13 Zonal offices in major cities and 100 Regional Offices

facilitated by a Supply and Distribution infrastructure comprising Terminals, 2459

kms of Pipeline networks, Aviation Stations, 46 LPG Bottling Plants, 68 Inland

Depots, 7 Lube blending plants. The corporation has a formidable network consisting

of 12869 Retail Outlets, 3506 LPG Distributorships, 1638 SKO/LDO dealerships

apart from well represented distributorship / CFA for Lubes and CNG and Auto LPG

stations.

HPCL has achieved growth of 4.1% compared to PSU Industry average of 0.6%

during 2013-14. In the retail segment , the Corporation continued to retain its 'Market

5
Leadership' in terms of growth and achieved record domestic sales of 21 MMT with

Market share growth in Total Motor Fuels (TMF) of 0.16% for the year making it ‘A

Decade of Excellence’ in Growth. HPCL has become India’s largest lube marketer

with Lubricant sales of 484 TMT during the year and continue to be the 2nd largest

LPG marketer in the country with sales of 4 MMT catering to about 43mn customers.

6
PART B:

ABOUT SUBJECT:

THEORETICAL BACKGROUND OF STUDY:

MARKETING CONCEPT:

Marketing has its origin in fact that humans are creatures of needs and wants. Many

products can satisfy a need and product choice is guided by the concepts of value,

price and satisfaction. These products are available in several ways, self-production,

coercion, and exchange. Marketing rises from the last approach of acquiring products.

The whole of marketing as based on the process of exchange for the purpose of

fulfilling human desires, needs and wants. According to “Philip Kotler”. “Marketing

is human activity directed as fulfilling needs and wants through exchange

process”.“According to American Marketing association (AMA)”, “Marketing is the

act of these business activities that gives direction to the flow of goods and services

from producers to consumers”

MODERN DEFINITION OF MARKETING

“Marketing is a social and management procedure by which individuals and

groups obtain what they need and want through making offering and exchange

products of values with others”

7
 THE CORE CONCEPT OF MARKETING

NEEDS

WANTS
MARKETING

DEMAND
TRANSACTION

PRODUCT
EXCHANGE

VALUE, COST
&
SATISFACTION

IMPORTANCE AND OTHER RELEVANT ASPECTS OF THE SUBJECT:

The marketing concept holds the key to accomplish organizational goals that

consists in determining the needs and wants of target market and delivering the

satisfaction more effectively than Co petitioners.

8
TARGET MARKET:

No company can operate in every market and fulfill it’s needs. No company can

do better without a broad perspective market. Companies can do their best when

they explain their market, customer needs with co-ordinate marketing efforts.

Actually the concept ease on four main pillars namely target, customer needs, co-

ordinate marketing and profitability.

STARTING POINT FOCUS MEANS ENDS

Target Customer Co-ordination Profit through

Market Needs Marketing Customer

Satisfaction

VALUE OF MARKETING CONCEPT:

1. PRODUCTION STAGE

The industrial revolution gave the various ability to producers in massive quantity.

New technologies, skilled men and scientific management, these all have help in

producing better and cheaper product, which the consumer can purchase without any

efforts made by the producers to induce the consumers to buy the product.

2. SALES STAGE

This is the stage where producer’s release the products that cannot be sold by itself.

The consumer must be influenced to purchase these so as to adopt publicity.

9
3. MARKETING STAGE

This is consumer stage in which the needs of the consumer are given the most

importance. These needs were determined through marketing research and then steps

were taken to manufacture only those goods that could satisfy the wants of potential

customer.

4. SOCIAL RESPONSIBILITY AND HUMAN ORIENTATION STAGE:

Business is no longer reaming limited to be object of earning profit but have become

stronger force for overall all welfare of mankind.

MARKET SEGMANTATION:

Market comprises buyers and buyers differ in one or more features. They may

differ in their needs, purchasing power geographical buying attitudes and buying

practices any of the variables must be used to segment a market. A marketer has

to try different segmentation variables for effective segmentation.

MARKET POTENTIAL:

Marketers talk about potential marketers, available markets served markets,

and penetrated market. To make clear these terms, let us start with the notation

that market is the set of all actual and potential purchasers would have three

characteristics: interest, income and access.

10
CONSUMER BEHAVIOUR:

The starting point understanding buyer behavior is the stimulus response model

shown in figure. Marketing and environmental stimuli enters the buyers

consciousness. The buyer’s characteristic and decision process lead to certain

purchase decisions. The marketer’s task is to understand what happens in the

buyers purchase decisions Customer’s behavior in aggregate is observable on the

bottom line. This aggregate is the market. However, individually who are those

buyers? If you know for certain (say because of extensive questionnaire filled out

at the cash register by buying of all products), then would know among other

things, if your products was properly positioned or marketed. You might even

clean market direction and be able to determine what would be putting on sales

well years hence.

MAJOR FACTORS INFLUENCING BUYING BEHAVIOUR:

 CULTURAL FACTORS

 Culture

 Sub Culture

 Social Class

 SOCIAL FACTORS

 Reference groups

 Family

 Roles and status

11
 BUYING ROLES

 Initiator : - Person who first suggest the idea of buying the

 Influences : - a person whose view or advice influences the

 Decider : - on any components of a buying decision.

 Buyers : - the person who makes the actual purchase.

 Users : - a person who consumes or uses the product.

 STAGES OF BUYING DECISION PROCESS:

 Problem recognition

 Information search

 Evaluation of alternatives

 Purchase decision

 Post purchase behavior

CONSUMERISM:

Consumerism is defined as a force prepared for protection of consumer interest

on the market location by organizing consumer pressure on business. The

balance of power in the market usually lies with the seller. Consumerism is

attempts in the society to redress the imbalances in the exchange transaction

between buyers and sellers. The Economic development process in an economy

has given rise to industrialization and urbanization. The growth of business’

economy was totally attributed for such phenomena. This has spiraled the effect

of heavy urbanization were each city has expanded from smaller dwelling to

mega cities. The distance between two boundaries running to 60 KMs and

maximum not defined this has given lift to the need of transportation to the

commuting public.

12
In addition to this tremendous growth of business economy necessitated the need

for movement of people and goods to various destinations. Government has

provided some of the transport facilities but it is inadequate for the growing

demand of the public. This gap was filled by people buying their own personal

vehicles which offered them high utility, greater convenience and efficient time

management. This helps the people to upgrade standard of living, improved

social class and contributed for greater economic sense to the society. Their

personal vehicles are four wheelers and two wheelers. In addition to these there

are commercial heavy vehicles like trucks, buses etc..., mainly used for

transportation of goods. All these vehicles including public and private vehicles

run on petroleum products like petrol or diesel, movements of the vehicles are

based on it’s engines, which induces movement of vehicle by utilizing petrol or

diesel as it’s fuel. But these engines are metallic and infected by various

environmental hazards while it is increasing its movement. This hazard corrodes

the metallic portion and changes of position due to climatic conditions. These

hazards will render engine as non-performer. This can be controlled by

providing sufficient oil to the engine of desired quality and quantity, which keeps

the engine in good condition. As long as there is higher demand and high

movement of vehicles there will be equally high demand for engine oils since

every vehicle has an engine and requires engine oil. There are various producers

of engine oils which are in the market selling different brands of engine oils with

different brand names to suit the different engine designs. HINDUSTAN

PETROLEUM CORPORTION LIMITED is one such seller of engine oil in

India with brand name of HP MILCY, HP RACER.

13
 STATEMENT
OF
PROBLEM

Hindustan Petroleum Corporation Limited ( H.P.C.L.) has made various strategies to

purchase and retail the oil products like petrol and diesel.

14
COMPANY
PROFILE

15
 COMPANYPROFILE

HPCL at a Glance:

Type Public

Traded as BSE: 500104

NSE: HINDPETRO

ISIN INE094A01015

Industry Oil and Gas

Founded 1974; 46 years ago

Headquarters Mumbai, Maharashtra, India

Key people M K Surana

(MD)

Products Petroleum
Natural gas
LNG
Lubricants
Petrochemicals

Revenue ₹ 298,618 crore (US$42 billion)

16
 (2019) [1]

Operating income ₹ 10,039 crore (US$1.4 billion)

(2019) [1]

Net income ₹ 6,690 crore (US$940 million)

(2019) [1]

Total assets ₹ 107,258 crore (US$15 billion)

(2019) [1]

Owner Oil and Natural Gas Corporation

Number of 10,352 (2018)[1]

employees

Website www.hindustanpetroleum.com

HPCL was integrated in the year 1974 when the takeover and merger of
erstwhile Esso Standard and Lube India Limited by the Acquisition of
Undertakings in India Act 1974 took place. Caltex Oil Refining (India) Ltd.
(CORIL) was acquired by the Government of India in 1976 and merged with
HPCL in 1978 by the CORIL-HPCL Amalgamation Order, 1978. Kosan Gas
Company was merged with HPCL in 1979 by Kosan Gas Company Acquisition
Act, 1979.

As advisor for the CPIL, Rajinder Sachar and Prashant Bhushan said that the
only way to disinvest in the companies would be to change or amend the Acts by
which they were nationalised in the 1970s. As a result, the government would
need a majority in both houses to change to any privatisation.

HPCL has been gradually growing over the years. The refining capacity
increased from 6 million metric tonnes (MMT) in 1984/85 to 14.80 million metric
tonnes as of March 2013. On the financial front, the net income from
sales/operations grew from ₹ 2700 crores in 1984–1985 to ₹ 2,06,600 crores in
financial year 2012–2013. During FY 2013-14, it’s net profit was ₹ 1800 crores.
.

17
EXPLORATION AND PRODUCTION:

With an upstream integration ratio of 5.5% and a balanced portfolio of producing,

discovered and exploration assets, the Corporation achieved significant progress in

terms of 2P reserves, production volumes, equity oil and revenues during the year.

IndianOil currently has participating interest (PI) in 10 domestic and 12 overseas E&P

assets spread across 10 countries, i.e., Canada, USA, Russia, Venezuela, Abu Dhabi,

Oman, Libya, Nigeria, Gabon and Israel.

The year 2018-19 was marked by acquisition of participating interest in E&P assets in

Oman, Abu Dhabi and Israel. Acquisition of 17% PI in Mukhaizna Oil Field, Oman,

signals IndianOil's entry into the highly prospective region, which is consistent with i

18
REFINERIES:

In absence of refining, prosperous resources of crude oil of nature would remain

latent. Worth products from petroleum like petrol, diesel, kerosene, liquefied
petroleum gas, naphtha and many more products would not be accessible to a
developed country.

HPCL refineries improves the crude petroleum into many value-added products
and around 300 grades of lubricants, specialties and greases. The Lubricating
Oil Refinery set up at Mumbai is the biggest lube refinery in India. It produces
superior quality lube base oils.

The product handling facilities at Mumbai and Vishakhapatnam refineries are

automated. Projects have been finalised and facilities improved to produce green
fuels like petrol with no Lead and low sulphur diesel and Euro III & Euro IV
works are in advance. The refineries have been standardised by an international
agency for various performance parameters.
Numerous awards have been bestowed on both the refineries in recognition of
the efforts in the field of energy conservation, environment and safety.

The Refinery at Mumbai is a Lube refinery with the highest lube production
capacity in India. The facilities at Mumbai and Visakhapatnam refineries is
advanced and facilities improved to manufacture green fuels like unleaded petrol
and low sulphur diesel. HPCL is committed to confirm India's position in the
global energy scenario as a useful contributor.

The Refineries are operated effectively to abide by international quality

standard. Both Refineries have been operated their capacity utilization above
100%. The maintenance has fetched the two refineries numerous awards. For

19
HPCL, success is never an end in itself. Thus, the Refineries will go through
further improvisation in future.

RESEARCH AND DEVELOPMENT:

HPCL has co-operated with various academic / research institutions for innovative
results improving the manufacturing capacity and other industrial parameters. The
details of the projects (particularly the partners in collaboration) are given below:
1. The Energy and Resource Institute (TERI) , New Delhi: The Project has
been named "Screening and selection of efficient microbial strains for bio
hydrogen production". An approximate time frame of 24 months has been set for
the completion of the project.
2. Gandhi Institute of Technology and Management (GITAM) ,
Visakhapatnam: The projects contemplated with GITAM are as follows:
o Effect of Nano-particle inclusion in the lubricating properties of lubricants
to be completed within 2 years

o Bioremediation: Bio desulphurization of petroleum oil by non- pathogenic

micro-organisms slated to be completed within one year

o Production of Bioremediation of petroleum oil by non pathogenic

microorganisms within a time frame of 1 year

3. Indian Institute of Science (IISc) , Bangalore: "Society for Innovation and

Development" (SID) is an innovation centre of IISc and will collaborate on
behalf of IISc with HPCL. The scope of MoU signed between the two parties
include the setting up of R&D centre and implementation of various
collaborative projects. Currently a project on nanoparticles is being undertaken.

4. Central Institute for Mining and Fuel Research (CIMFR, erstwhile CFRI) ,
Dhanbad: This project involves the characterization of 3 bottom streams viz.
VTB, FCC and PDA bottoms utilizing the pilot plant available at CIMFR. A
proposed 100 kg/hr plant is slated for installation. A fully self sufficient
Corporate R&D centre is going to be established with the integrated facilities of
designing, commissioning supervision, interpretation of data generated
development of protocols for operating and testing of the plants.

20
5. Research Triangle Institute (RTI) , USA: The project involves collaborative
R&D activities between RTI and HPCL, which would cover one or more of the
following areas:
o Advisory support for the establishment of a catalyst laboratory and its
associated development for synthesis and evaluation

o Diesel desulphurization including demonstration scale-up, protocols,

knowledge transfer and IP access to assist in achieving tight timelines for
2010 quality standards, and

o Resid gasification including characterization

6. Advanced Research Technologies (ART), Chevron & IIT Kanpur : HPCL

has collaborated into a Memorandum of Understanding with the following
organizations.
o Advance Refining Technologies LLC (ART)

o Chevron USA Inc. and

o Indian Institute of Technology (IIT) Kanpur

7. Optimization studies of food grade Hexane manufacturing unit and

feasibility study for producing polymer-grade Hexane (With IIP)
Study was initiated along with IIP during 2004-05 for optimizing the existing
Mumbai Refinery Hexane plant operating conditions to explore the possibility of
producing WHO and Polymer grade Hexane, which have more stringent quality
specifications w.r.t sulfur & benzene content and has got marketing demand.
Test run was conducted jointly with IIP Dehradun , which has confirmed the
feasibility to produce WHO grade Hexane of less than 500 ppm aromatics on
sustained basis with certain improvement in the scheme.
However meeting of other specifications like PAH (Polycyclic Aromatic
Hydrocarbon) & NVM (Non Volatile Matter) of WHO grade Hexane are still
being studied by M/s IIP.

21
8. Optimization studies of NMP Lube Extraction Unit (With IIP)
Study was initiated along with IIP during 2004-05 to optimize Mumbai Refinery
NMP Lube Extraction Unit operating parameters to obtain specific product
quality & thruput maximization. Improvement in colour, sulfur and saturates is
also expected by increasing the severity of hydrofining and selection of suitable
catalyst. A substantial energy saving is also expected by pinch analysis of heat
exchangers in the unit.
Determination of lube potential of 150 N & 500 N is completed. Critical
Solution Temperature, LLE single stage studies & Preliminary Glass Packed
Column (GPC) runs are also completed. Pinch and Simulation studies were also
done. Final report was prepared & submitted. Modifications suggested heat
recovery by Pinch analysis will accordingly be implemented through NPCB
projects.
Controlled test run was conducted jointly by IIP-HPCL personnel. The test run
samples were analyzed by IIP for Physico Chemical Characterization.
Determination of Lube potential, Critical Solution Temperature, LLE single
stage studies, and Preliminary Glass Packed Columns & Pinch Simulation
studies has been completed and final report has been prepared. The modification
suggested will be implemented accordingly.

22
PIPELINES:
Pipelines in Operation:
Pipeline is cost effective, energised, safe mode of transportation of all kinds of
petroleum products. They ease the overburdened Rail &Road infrastructure and
reduce the overall effectsrising out of Rail & Road transportation. Pipelines has
a important part in meeting the demand of petroleum products in India.
HPCL has laid pipelines for Petroleum Products to ensure product obtainable to
its Consumers and the Public at large.

MARKETING:-

Keeping all parts of the vast nation well supplied with essential petroleum
products is a 24/7 commitment from HPCL People. HPCL continued its
dominance in the domestic market, covering the varieties of petroleum products
from LPG, Petrol, Diesel, CNG, aviation fuels, lubricants, naphtha, speciality
products and so on. The marketing and distribution network was expanded to
over 50,000 customer.

HPCL completed automation of its 27,700-strong fuel stations network during

the year to enhance Q&Q (quality & quantity) assurance to its customers. The
Corporation took the lead in launching door delivery of products through mobile
dispensers during the year.

ALTERNATIVE ENERGY AND SUSTAINABLE DEVELOPMENT:

HPCL is the forefront in experimenting with alternate sources for production of
renewable energy resources. It has an installed capacity of 50 MW of Wind
Power as of 31st. March 2011.

Wind power

23
Maharastra: HPCL's first renewable & alternate energy Wind Energy
Generator was ordered at Dhule in Maharashtra State in May 2007. The 3.75
MW pilot turnkey project, consisted of Three Wind Turbine Generator (WTG)
units, where each had an installed capacity of 1.25 MW. This was executed by
M/s Suzlon Energy Limited.
Power produced from this, is being sold to the Maharashtra State Electricity
Board (MSEB).

24
Rajasthan: HPCL ordered another Wind power project in Jaisalmer in
Rajasthan State on 1st January 2009. The 21 MW project, carried out at Rs 110
Crore by M/s Suzlon Energy Limited, comprises of a 18 unit-farm, each WTG
unit which had installed capacity of 1.3 MW.
The second Wind Power Project was in Jaisalmer, Rajasthan which was ordered
on 18th December 2010. The 26 MW capacity turnkey project, carried out at the
cost of Rs. 154.57 Crore by M/s Suzlon Energy Limited, comprises of a 17 unit
wind farm, each WTG unit which had installed capacity of 1.50 MW.
In the FY 2013-14, production of 600 lakh kilowatt-hour (KWH) of wind energy
was attained.
Solar Lighting has been applied at twenty Cathodic Protection (CP)/
sectionalizing valve (SV) Stations of VVSPL & Talegaon of Mumbai’s Solapur
Pipeline (MPSPL). This means usage of green and clean power which is not only
environment friendly but has reduced consumption of diesel in DG sets.
Commitment
HPCL want to improvisethe usage of renewable energy resources and more
survey of alternate sources of energy.

25
HPCL IN INDIA

26
PRODUCTS OF HPCL :-

 COOKING GAS

 PETROL / GASOLINE

 DIESEL / GAS OIL

 ATF / JET FUEL

 LUBRICANTS AND GREASE

 KEROSENE

 BITUMEN

 BULK / INDUSTRIAL FUELS

 PETROCHEMICALS

27
PETROL/GASOLINE:

Automotive petrol and petrol-oxygenate mixes are used in internal combustion spark-

ignition engines. These engine fuels are used for passenger cars only. They are used in

utility vans, in other spark ignition engines employed in a variety of service

applications.

Petrol is a mixture of relatively volatile hydrocarbons that varies in chemical &

physical properties and are derived from fractional distillation of crude petroleum

with a further treatment mainly in terms of improvement.

The individual hydrocarbons in petrol range from c4 to c11 an oxygenate is an

oxygen-containing, organic compound (such as an alcohol or ether) which can be

used as fossil fuel or fuel supplement. Motor petrol is sold at retail outlets where it is

directly delivered into the vehicle’s tank. The Indian Standard governing the

properties of motor petrol & petrol-oxygenate mixes is IS 2796 : 2000 (3rd Rev).

The auto fuel policy issued by Govt of India, where more& more rigid specifications

(equivalent to Euro II, Euro III, Euro IV) are being made applicable for the petrol

being marketed in India. This has led to decrease in polluting factors in petrol.

Branded petrol named as poWeris a much sought-after fuel among discerning

motorists who are in many ways emotionally attached to their wheels.

28
DIESEL/GASOIL:

Petroleum derived diesel is a mixture of product (150 'C and 350 'C) with varying

amount of selected distillates and is made up ofhydrocarbons and aromatic

hydrocarbons (including napthalenes and alkylbenzenes).

Diesel is used in diesel engines, an internal combustion engine. Rudolf Diesel had

originally designed the diesel engine which utilised coal dust as a fuel but oil proved

more efficient. Diesel engines are used in cars, motorcycles, boats and locomotives.

Automotive diesel was used in buses, trucks and automobiles, to petroleum drilling

and other equipments and to be the prime mover in a wide range of power generation

& pumping applications. The diesel engine is high compression, self-ignition engine.

Fuel is ignited by the heat of high compression.

The Indian Standard governing the properties of diesel fuels is IS 1460:2005

Important characteristics are ignition characteristics, handling at low temperature,

flash point.

29
Diesel fuel often contains higher quantities of sulphur. In India , emission standards

(equivalent to Euro II, Euro III, Euro IV) have made oil refineries dramatically

decrease the sulphur’s level in diesel. HPCL’s Diesel named as TURBOJET, the

leader in the branded diesel segment, is blended with world-class multi-functional fuel

additives.

Vehicle owners choose TURBOJET because they see value advantage in terms of

superior mileage, lower maintenance costs and engine protection. A growing section

of customers who own diesel automobiles, prefer TURBOJETas a fuel for its

efficient and effective performance.

TURBOJET has brought in a huge savings in the high mileage commercial vehicles

segment. Transport fleets that operate a large number of trucks crisscrossing the

country are using TURBOJETto benefit from higher mileage and reduced

maintenance costs.

30
HPCL IN UTTARPRADESH

There is a North Central Zone Regional Office whose headquarters are at

Lucknow.

 DISTRICTS COVERED BY NORTH CENTRAL ZONE REGIONAL

OFFICE

1. ALLAHABAD

2. AMBEDKAR NAGAR

3. AZAMGARH

4. BALRAMPUR

5. BASTI

6. BARABANKI

7. BEHRAICH

8. BANDA

9. BHADOHI

10. BALLIA

11. CHITRAKOOT

12. CHANDAULI

13. DEORIA

14. FATEHPUR

15. FAIZABAD

16. GHAZIPUR

17. GORAKHPUR

18. GONDA

31
19. HAMIRPUR

20. HARDOI

21. JHANSI

22. JALAUN

23. JAUNPUR

24. KAUSAMBI

25. KUSHINAGAR

26. KANPUR DEHAT

27. KANPUR CITY

28. LUCKNOW

29. LALITPUR

30. MAHARAJGANJ

31. MAHOBA

32. MIRZAPUR

33. MAU

34. PRATAPGARH

35. RAEBAREILLY

36. SONEBHADRA

37. SULTANPUR

38. SHRAWASTI

39. SITAPUR

40. SANT KABIR NAGAR

41. SIDDHARTH NAGAR

42. UNNAO

43. VARANASI

32
 HPCL

STORAGE DISTRIBUTION RETAILING

TERMINALS DEPOTS TANK LORRY

RETAIL OUTLET UNDERGROUND TANK DISPENSING UNIT CUSTOMER

33
 1) STORAGE

 TERMINALS

 DEPOTS

2) DISTRIBUTION

 TANK LORRY

3) RETAILING

 RETAIL OUTLETS

 UNDERGROUNDTANKS

 DISPENSING UNIT

 CUSTOMER

STORAGE

TERMINALS AND DEPOTS:

 DEFINITION AND PURPOSE:

An oil terminal is a large industrial complex where oil is stored and from which oil

is transported elsewhere.

An oil depot is an industrial facility for the storage of oil products and from which

these products are usually transported to consumers or facilities to store. An oil depot

typically has facilities to store, either above ground or below ground, and gantries

(framework) for the discharge of products into road tankers or other vehicles (such as

barges) or pipelines.

34
Oil depots are located close to oil refineries or in locations where marine tankers

consisting of products which can discharge their cargo. Some depots are attached

to pipelines from which they supply oil and depots can also be transported by rail, by

barge and by road tanker.

Most depots of oil have road tankers working from their grounds and these vehicles

transport products to petrol stations or other users.

An oil depot is a facility in that (in most cases) there is no processing or other

transformation on site. The products which reach the depot (from a refinery) are in

their final form which can be delivered to consumers. Sometimes additives may be

used along with products in tanks, but there is no on site manufacturing plant. Depots

consists of the similar types of pipelines, tankagewhich were usedin the past and there

is a greater degree of automation, there have been few essential amendments in depot

operational activities over time.

35
DISTRIBUTION:

The petroleum products which are stored at the various terminals/depots of HPCL, are

then distributed to the various retail outlets/petrol pumps all over India (Uttarpradesh).

36
RETAILING:

The petrol/diesel which have been distributed to the various retail outlets from the

terminals or depots are stored in the tanks of the petrol pumps which are then further

distributed through dispensing units to the consumers who fuel their vehicles from

various petrol pumps of HPCL.

37
 LITERATURE REVIEW

HPCL mainly refines the crude oil in the form of oil products like petrol, diesel,

kerosene, cooking gas and so on and these are then transported or stored in the

terminals/depots which are further taken to the retail outlets or petrol pumps of HPCL

for distribution of the various crude oil products like petrol and diesel.

38
OBJECTIVES OF THE
STUDY

39
 OBJECTIVES OF THE STUDY

1.To understand the procedures which takes place in this company that is from buying

or digging oil to refining to retailing of the oil products like petrol,diesel and so on

2.The study is confined to to finding various strategies to be adapted by HPCL to

increase its sales in Uttar Pradesh

3. Launch new products and services and enhance customer relationships.

4. Improve internal communications and increase profits.

40
 RESEARCH
METHODOLOGY

41
 RESEARCH METHODOLOGY

Research is a common language which refers to search for knowledge. It is a process

of logical and systematic application of the fundamentals of science to the general and

overall questions of a study, which uses accurate tools, specific process and technical

rather philosophical means for getting and ordering the data prior to their logical

analysis and influencing different type of research designs is available depending

upon the nature of research project, availability of manpower and circumstances.

RESEARCH DESIGN

A research design is the positioning for data collection and data analysis in a process

that seeks to combine relevance to the research purpose with economy in procedure.

In fact, the research design is the structure within which research is to be carried out.

This research was descriptive in nature.

DESCRIPTIVE RESEARCH:

The research undertaken was a descriptive research as it was concerned with specific

predictions, with narration of facts and characteristics concerning Marketing of

Petroleum Products (Petrol and Diesel) By HPCL in Uttar Pradesh.

a. Methods of Data Collection. There are variousmethods of collecting primary

data, particularly in surveys and descriptive researches. We collect primary data

either through observation or through interaction with the respondents or through

personal interviews in a descriptive research. I have used questionnaires(Primary)

and Internet source (Secondary) for data Collection.

42
b. DATA SOURCE

There were two types of data sources used in this research. These were

PRIMARY DATA

Primary data is the data that is collected from the source for very first time and

never have been used before. The data can be collected through interviews,

observations and questionnaires.

SECONDARY DATA

Secondary data is the data collected from already been use or published

information like journals, diaries, books, and so on.In this research project,

secondary data collection methods used were diverse journals and website of

various online journals.

c. Research DESIGN

A sample design consists of 2components. Sampling method. Sampling method

means the rules and processes by which some components of the population are

included in the sample. Common methods of sampling are simple random

sampling, cluster sampling andstratified sampling.

I have used Descriptive Research Design for study.

d. UNIVERSE OF STUDY: Universe of the study means all the Customers

ofHPCL in Lucknow.

Sample Area: Lucknow

43
e. SAMPLE Technique
I have used random sampling for study.

f. SAMPLE SIZE: A sample of minimum respondents will be selected from

customers of HPCL in Lucknow. An effort was made to select respondents

evenly. The survey was carried out on100 respondents.

g. SAMPLE UNIT: customers of HPCLin Lucknow

h. STATISTICAL TOOLS TO BE USED: A structured questionnaires is used to

collect the data and data will be analyzed with the help of percentage table,

respective graph, bar graph and pie charts.

i. TOOLS OF PRESENTATION:
It means what all tools are used to present the data in a meaningful way so that it

becomes easily understandable. In this research tables and graphs were used for

presenting the data.

44
 DATA ANALYSIS
&
INTERPRETATION

45
 DATA ANALYSIS& INTERPRETATION
FOR 10 CUSTOMERS OF 10 RETAIL OUTLETS OF HPCL:-

QUESTION 1) ARE YOU A REGULAR CUSTOMER OF THIS RETAIL

OUTLET?

Yes
No

INFERENCE:-

90% of the people answered yes while 10% said no.

46
Question 2) Why do you prefer to take fuel from this Retail Outlet ?

PARAMETERS OUT OF 100%

Convenient location 80

Fuel Quality & Quantity 15

Service 5

INFERENCE :-

80 percent of the people preferred a petrol pump due to convenient location.

15 percent chose due to fuel quantity and quality.
5 percent chose due to service.

47
QUESTION 3) Why do you not prefer to take fuel from this RO ?

Parameters Out of 100

Not on way 90%
Poor service 1%
Not right quantity 0%
Not right quality 0%
Any other 9%

Out of 100
Any other

Not right quality

Not right quantity

Poor service Out of 100

Not on way

0 0.2 0.4 0.6 0.8 1

INFERENCE:-

90%of the people did not prefer to fuel from a particular petrol pump because it was
not on the way.
9%of the people did not prefer to fuel from a particular petrol pump because of any
other reason.
1%of the people did not prefer to fuel from a particular petrol pump because of any
other reason.

48
QUESTION 4) Since when are you taking fuel from this retail outlet ?

PARAMETERS OUT OF 100

Last month 10%

Last six months 20%
One year 30%
More than a year 40%

More than a year

One year

Series1
Last six months

Last month

0% 10% 20% 30% 40% 50%

INFERENCE:-

40% of the people answered they fuelled from a particular petrol pump for
more than a year.
30% of the people answered they fuelled from a particular petrol pump for one
year.
20% of the people answered they fuelled from a particular petrol pump since
last six months.
10% of the people answered they fuelled from a particular petrol pump since
last month.

49
QUESTION 5) How frequently do you visit this retailoutlet to refuel your
vehicle ?
PARAMETERS OUT OF 100 %

Daily 10%
Once a week 15%
Twice a week 25%
Once a fortnight 50%

Once a fortnight

Twice a week

Series1
Once a week

Daily

0% 10% 20% 30% 40% 50% 60%

INFERENCE:-

50% of the people answered that they visited a particular petrol pump once in a
fortnight.
25% of the people answered that they visited a particular petrol pump twice a
week.
15% of the people answered that they visited a particular petrol pump once a
week.
10% of the people answered that they visited a particular petrol pump daily.

50
QUESTION 6) What matters the most for you when you purchase fuel?

PARAMETERS OUT OF 100%

Quality and Quantity 95

Service 5

INFERENCE :-

95 percent of people preffered due to quality and quantity while 5 percent preffered
due to service.

51
QUESTION 7 (a) :- Which vehicle do you own?

A) TWO WHEELER

B) FOUR WHEELER

INFERENCE :-

60 percent of people has two-wheeler while 40 percent of people has four-

wheeler.

52
QUESTION 7 (b):- If four wheeler, then what type of vehicle?

VEHICLES OUT OF 100%

A) S.U.V. 28%
B) SEDAN 21%
C) OTHERS 51%

INFERENCE:-

28 percent of people has S.U.V.

21 percent of people has Sedan.
51 percent of people has Other type of vehicles.

53
QUESTION 8 (a):- Which fuel do you purchase?
i) PETROL

 NORMAL PETROL -- 90%

 BRANDED PETROL -- 10%

INFERENCE:-

90 percent of the people purchased normal petrol while 10 percent bought

Branded petrol.

54
QUESTION 8 (a) (ii): DIESEL OUT OF 100%

 NORMAL 98%

 TURBOJET 2%

INFERENCE:-

98 percent of the people prefer normal diesel while 2 percent prefer turbojet
diesel.

55
QUESTION 8 (b):- Incase you purchase normal fuel, do you add any additive?

A ) Petrol’s add on P OUT OF 100%

i) ADD 2
ii) DON’T ADD 98

INFERENCE :-

98 percent of the people doesnt add petrol add-on while 2 percent adds.

56
 B)Diesel’s add on D OUT OF 100%
i) ADD 2
ii) DON’T ADD 98

INFERENCE:-

98 percent of the people doesnot add Diesel add-on while 2 percent adds.

57
QUESTION9) Parameters in order of importance :-

PARAMETERS On scale of 10

Fuel Quality 10
Fuel quantity 10
Prompt service 9
Behaviour of staff 9
Complaint handling 9
Additional services like glass/clean,Airfill 8
Basic amenities like drinking water 10
Cleanliness/maintenance 10
Convenient Location 9

58
 on scale of 10
12

10

2
on scale of 10

INFERENCE:-

Parameters like Fuel Quantity, Fuel Quality, Basic facilities like drinking
water, Cleanliness were summed up as 10 out of 10.

Parameters like Behaviour of staff, Prompt service, Complaint handling,

convenient location were summed up as 9 out of 10.

Parameters like Additional services like glass, clean,airfill was summed up as 8

out of 10.

59
QUESTION 10) RATING OF PETROL PUMP BASED ON 9
PARAMETERS GIVEN BELOW

RATING OF PETROL PUMP

Convenient Location

Cleanliness/maintenance

Basic amenities like drinking

water
Additional services like
glass/clean,airfill

Complaint handling
out of 7

Behaviour of staff

Prompt service

Fuel quantity

Fuel Quality

5.4 5.6 5.8 6 6.2 6.4 6.6 6.8 7 7.2

WHERE:-

1- POOR
2- VERY BAD
3- BAD
4- AVERAGE
5- GOOD
6- VERY GOOD
7- EXCELLENT

Parameters like Cleanliness/maintenance, Basic amenities like drinking water,

Behaviour of staff, Fuel quality, Fuel quantity were summed up as Excellent.

Parameters like convenient location, Complaint handling, Additional services

like glass/clean, airfill were summed up as Very Good.

60
FINDINGS

61
 FINDINGS

 In the Analysis of four wheelers segment, demographically they have been classified

as follows:

 Both the cars and trucks have different engines which require different type of

suitable engine oils for them, but the study confined for cars only.

 In the different brands of cars, Hyundai has the highest brand preference of oil

followed by Maruti, TATA, and Toyota.

 Most of the respondents change oil of their vehicle for above 5000 Km’s.

 Most of the customers buy engine oils from petrol pumps only as it offers

convenience and as a symbol, of quality and professional service can be obtained.

 Most of the vehicle owners are well qualified and hence make their own decision in

buying different brands of engine oil.

 The car owner would prefer to go to authorized service stations or private service

stations as they depend completely on professionals to change the engine oil. This is

because they would like to change the running of the vehicles

 Most of vehicle owners are aware about different types of engine oils, as it is one of

the oldest public sector company and a quality provider to the customers.

 In the brand tested Branded petrol brand is the most preferred brand by the vehicle

owners followed by Hindustan PetroleumCorporation Ltd, Bharat Petroleum

Corporation, etc.

62
 Easy availability to the customers and maintaining consistent quality are the two most

important attributes in the sale of engine oils.

 Lube awareness that is making the product aware to the customers at petrol pumps is

the most important promotional activity in making the engine oil more popular.

 In the Analysis of two wheelers segment, demographically they have been classified

as follows:

 88% were respondents were male.

 12% were respondents were female.

 Most of two wheelers use oil.

 Out of 100% sample size 09% were Mopeds,56% were motorbikes, 35% were

scooters.

 Most of the two wheelers owners remain brand loyal to HPCL lube oils.

 CASTROL has higher market share in the brands of 2T oils for two wheelers

followed by HPCL.

 Easy availability and a good quality are the most important criteria for the sales of 2T

oils in two wheelers segment.

 Lube awareness that is making the product aware to the customers at petrol pumps is

the most important promotional activity in making the 2T oil more popular. To most

extent, display hoardings at intersections and junctions and media ads also play very

important role in the promotion of the 2T oils.

63
 SUGGESTIONS &
RECOMMENDATION

64
 SUGGESTIONS RECOMMENDATION

Some of the suggestion in order to improve the Indian Oil Co., Ltd

Where as follows:

 Hindustan Petroleum Corporation Limited has many differentiated brands of

engine oils in the market but as compared to the competitors, the numbers of

types of brands are less in Indian-oil.

 It should introduce differentiated engine oils for different engine designs and

communicate such differentiation to the target market.

 HPCL has to develop a brand preview strategy as its close competitor Castrol

does. They should design an attractive brand for their engine oil, good packing

based on the culture of the society and it should be attractive.

 The philosophy of the brand equity may be adopted and every effort of

marketing program should be conducted as developing the brand equity.

 The petrol pumps owners, oil dealers whether wholesale or retailers should be

provided better incentives and good margin of profit to create pump strategy to

increase the sales of engine oils.

65
 The pull strategy should be created through sufficient awareness campaigns.

 More lube advertisement near petrol pumps and display hoarding at junctions

and intersection should be used as promotional activities.

 The company should appoint preferred personnel at selected petrol pumps

through media service to target the customer.

 A corporate advertisement should be provided in electronic media and print

media.

 The company should appoint an admirable person as brand ambassador of the

product to increase the sales as people admire many great personalities.

 Some P.O.P material like posters, handbills, pamphlets clearly indicating the

benefit to customers from the company.

66
CONCLUSION

67
 CONCLUSION

Automobile run on petrol as the fuel are many type of automobiles such as two-

wheelers, and more than four-wheelers run on the road. Depending upon the different

engine capacities of the vehicle. The engine those consume petrol as fuel need engine

oil necessarily for smooth running of the engine. Petrol is used as fuel but it cannot

control smoothness in the engine. Hence, there is need for lubricating the engine with

necessary engine oils to increase the efficiency of the engine.

There are varieties of such oils available in the market, for all types of vehicles. One

of the major suppliers of such engine oils and other different types of oils in INDIA is

HINDUSTAN PETROLEUM CORPORATION LTD (HPCL).

The study is conducted to find out the perception of customers towards engine oils

offered by HPCL.

To show that strategies for marketing can be produced. Around 50 Customer of 4

wheelers alone & 50 Customer of 2 wheelers were conducted to obtain their

perception on different types of engine oils available in the market.

68
LIMITATIONS
OF STUDY

69
 LIMITATIONS

1) As project has to be completed within a short span of time, the scarcity of time

was an important hindrance and hence much information could not be gathered,

nor evaluated.

2) Another important limitation is that analysis is very much dependent on the

company’s internal bulletin.

3) There are no well – accepted standards or rules of thumb for all ratios, which can

be accepted as norms. It renders interpretation of ratios difficult.

4) There may be some biased response from the respondents.

5) Some respondents did not provide the full data.

6) Misguidance by agent.

7) There was lack of time on the part of respondent.

8) The project is carried out for the period of 45 days only.

70
 BIBLIOGRAPHY

WEBSITE

1. www.hindustanpetroleum.com

2. www.wikipedia.org

BOOKS

1. HP journals

NEWSPAPERS
1. The Hindu
2. Times of India
3. Dainik Jagran
4. Business Standard

71
72