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ON: BHARAT PETROLEUM CORPORATION LIMITED
1) OVERVIEW OF INDIAN ECONOMY 2) SECTORS OF INDIAN ECONOMY 3) BUSINESS DISCRIPTION 4) PROFILE OF BPCL HISTORY NATURE OF BUSINESS VISION & MISION ORGANIZATIONAL STRUCTURE 5) KEY COMPETITORS 6) COMPANY ANALYSIS CURRENT ISSUES PEST ANALYSIS PORTER¶S FIVE FORCE MODEL SWOT ANALYSIS USP 7) MARKETING STRATEGY INTRODUCTION 4 P¶S STP BCG MATRIX
4±5 6±8 9 10 11 12 13 14-15 16-18 19 20 21-24 25 26-28 29 30 31-32 33-37 37-38 39-40
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8) FINANCIAL ANALYSIS SOURCES OF FINANCE KEY INVESTMENTS RATIO ANALYSIS 9) HR POLICIES & STRATEGY SOURCES & PROCESS OF RECRUITMENT SOURCES & PROCESS OF RECRUITMENT TRAINING & DEVELOPMENT PROGRAMME BENEFITS & COMPENSATION PROCESS 10) PRODUCTION POLICIES PRODUCTION PROCESS & PRODUCTION LAYOUT KEY SUPPLIERS KEY CUSTOMERS QUALITY CONCEPT USED
41 42 43-44 45 -46 47 48-49 48-49 50-54 54 55 56-62 62 63 64 -65
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Page | 4 .The Economy of India is the eleventh largest in the world by nominal [GDP] and the fourth largest by purchasing power parity(PPP) The country's per capita GDP (PPP) is $3.290(IMF). the country began to develop a fast-paced economic growth. USA. China. India will be among the leading economies of the world. Economists predict that by 2020. 127th) in 2010. India's top five trade partners are UAE. Following strong economic reforms from the socialist inspired economy of a post-independence Indian nation. as free market principles were initiated in 1990 for international competition and foreign investment. Saudi Arabia and Germany.
I ia's tra e a busi ess sector has grow fast. sheep.ase po icies from 1947 to 1991. Thus. The service sector makes up a further 34 % .5%.5% of world trade as of 2007 accordi g to the WTO. I ia curre tly accou ts for 1. The eco omy was characterize by exte sive regu atio protectio ism pub ic ow ership pervasive corruptio a slow growth. Indi 's large service i ustry accou ts for 57. Accordi g to the World Trade Statistics of the WTO i 2006. steel. ceme t. machi ery. oilsee . accou ti g for about 52% of employme t. a i ustrial sector arou 14%. water buffalo. A revival of eco omic reforms a better eco omic policy i first eca e of the 21st ce tury accelerate I ia's eco omic growth rate.6% respectively.I ia was u er s cia emocratic. chemicals. up by a record 72% from a level of $253 billio i 2004. i formatio tech ology-e able services a pharmaceuticals. poultry a fish. cotto . petroleum. I dia's total mercha dise trade (cou ti g exports a d imports was valued at $294 billio i 2006 a d I dia's services trade i clusive of export a d import was $143 billio . mi i g. I rece t years. tra sportatio equipme t. jute. Si ce 1991. sugarca e. Major agricultural pro ucts i clu e rice. co ti ui g eco omic liberalizatio has move the cou try towar a market-base eco omy. textiles. potatoes. cattle. goats. suggeste that the share of agriculture i employme t ha roppe to 45. I dia's total Page | 5 . I ia cities have co ti ue to liberalize busi ess regulatio s. which use a smaller sample size tha earlier surveys. Agriculture is the pre omi a t occupatio i I ia. foo processi g. wheat. I dia's global eco omic e gageme t i 2006 coveri g both mercha dise a d services trade was of the order of $437 billio . The labour force totals half a billio workers. statistics from a 2009-10 gover me t survey.2% of the cou try's GDP while the i ustrial a agricultural sector co tribute 28% a 14. Major i ustries i clu e telecommu icatio s. However. tea. Previously a close eco omy.
providing employment to over 20 million people. The Indian industrial sector underwent significantly changes as a result of the economic reforms of 1991. and relying on cheap labour and new technology. having a cumulative growth rate of revenue 33. led to privatization of certain public sector industries. up from 15% in 1950. Industry accounts for 28% of the GDP and employ 14% of the total workforce. India is 13th in services output. Information technology and business process outsourcing are among the fastest growing sectors. brought in foreign competition. It has since handled the change by squeezing costs. India is 12th in the world in terms of nominal factory output. Textile manufacturing is the second largest source of employment after agriculture and accounts for 20% of manufacturing output. the Indian private sector was faced with increasing domestic as well as foreign competition. with a growth rate of 7. liberalized the FDI regime. The services sector provides employment to 23% of the work force and is growing quickly. improved infrastructure and led to an expansion in the production of fast moving consumer goods.trade i goods a d services has reached a share of 43% of GDP i 2005 06. It has the largest share in the GDP.5% in 1991±2000. Post-liberalization. up from 4. revamping management. In absolute terms.6% between 1997±98 and 2002±03 and contributing to 25% of the country's total exports in 2007±08. The growth in the IT sector is attributed to increased specialization. up from 16% i 1990 91 I dustry a d services.5% in 1951±80. including the threat of cheaper Chinese imports. accounting for 55% in 2007. which removed import restrictions. and an availability of a large Page | 6 .
pool of low cost, but highly skilled, educated and fluent Englishspeaking workers, on the supply side. This is matched on the demand side by an increased demand from foreign consumers interested in India's service exports, or those looking to outsource their operations. The share of the Indian IT industry in the country's GDP increased from 4.8 % in 2005±06 to 7% in 2008 In 2009, seven Indian firms were listed among the top 15 technology outsourcing companies in the world. Tourism in India is relatively undeveloped, but growing at double digits. Some hospitals woo medical tourism Organized retail supermarkets accounts for 24% of the market as of 2008. Mining forms an important segment of the Indian economy, with the country producing 79 different minerals (excluding fuel and atomic resources) in 2009±10, including iron ore, manganese, mica, bauxite, chromate, limestone, asbestos, fluorite, gypsum, ochre, phosphorus and silica sand.
India ranks second worldwide in farm output. Agriculture and allied sectors like forestry, logging and fishing accounted for 15.7% of the GDP in 2009±10, employed 52.1% of the total workforce, and despite a steady decline of its share in the GDP, is still the largest economic sector and a significant piece of the overall socio-economic development of India. In 2008, India had the world's third largest fishing industry. India is the largest producer in the world of milk, jute and pulses, and also has the world's second largest cattle population with 175 million animals in 2008. It is the second largest producer of rice, wheat, sugarcane, cotton and groundnuts, as well as the second largest fruit and vegetable producer, accounting for 10.9% and 8.6% of the world fruit and vegetable production respectively. India is also the second largest producer and the largest consumer of silk in the world, producing 77,000 million tons in 2005.
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Banking and finance
The Indian money market is classified into the organized sector, comprising private, public and foreign owned commercial banks and cooperative banks, together known as scheduled banks, and the unorganized sector, which includes individual or family owned indigenous bankers or money lenders and non-banking financial companies.
E ergy a d power
India's oil reserves meet 25% of the country's domestic oil demand. As of 2009, India's total proven oil reserves stood at 775 million metric tons while gas reserves stood at 1074 billion cubic meters. India meets most of its domestic energy demand through its 106 billion tons of coal reserves. India is also rich in certain renewable sources of energy with significant future potential such as solar, wind and befouls (jatropha, sugarcane). India's huge thorium reserves ² about 25% of world's reserves ² are expected to fuel the country's ambitious nuclear energy program in the long-run.
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Bharat Petroleum Corporation Limited (BPCL) is engaged in the petroleum industry in India., the aggregate refinery throughput at BPCL's Refineries at Mumbai and Kochi and that of its subsidiary company, Numaligarh Refinery Limited (NRL) was 23.03 million metric tons (MMT). The Company is engaged in downstream petroleum sector, which consists of refining and marketing activities. BPCL holds 61.65% interest in NRL as on March 31, 2010. Bharat Petro Resources Limited (BPRL) is a 100% subsidiary of the Company. The exploration and production activities of BPRL and its subsidiary companies extend to 26 exploration blocks where they hold participating interests (PI). Of this, nine blocks are in India and 17 are abroad. Besides India, BPRL has blocks in Australia, Brazil, East Timor, Indonesia, Mozambique and the United Kingdom.
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PROFILE OF BHARAT PETROLEUM CORPORATION LIMITED Page | 10 .
when Mr. particularly in Indian and Burmese markets. On 1 August 1977. refiner and distributor of petroleum products. which had been formed in 1871 to refine crude oil produced from primitive hand dug wells in Upper Burma. A lot of petroleum refineries came up. The search for oil in India began in 1886. Page | 11 . the Burma Shell Group of Companies was taken over by the Government of India to form Bharat Refineries Limited. From Burma Shell to Bharat Petroleum On 24 January 1976. the company grew out of the enterprises of the Rangoon Oil Company. Kochi and Numaligarh. it was renamed Bharat Petroleum Corporation Limited. in the country. They are also on the verge of commissioning another refinery at Bina in Madhya Pradesh in 2010. It was also the first refinery to process newly found indigenous crude Bombay High. An important player in the South Asian market then was the Burma Oil Company Ltd. Burma Shell began its operations with import and marketing of Kerosene. A pioneer in more ways than one.an active producer. In 1928. Today Bharat Petroleum Corporation Limited has got three refineries at Mumbai. Though incorporated in Scotland in 1886. road and country craft all over India. This alliance led to the formation of Burma-Shell Oil Storage and Distributing Company of India Limited. Asiatic Petroleum (India) joined hands with Burma Oil Company . Goodenough of McKillop Stewart Company drilled a well near Jaypore in upper Assam and struck oil.The 1860s saw vast industrial development. This was imported in bulk and transported in 4 gallon and 1 gallon tins through rail.
Lubricants. 45 LPG bottling plants and 19 Aviation service stations which provide logistical support for 7077 petrol stations. 1008 Kerosene / LDO dealers and 2124 LPG distributors. Aviation and Refinery. LPG. besides supplying fuel directly to hundreds of industries. 63 company operated depots. and several international and domestic airlines.BPCL is organized into 6 Strategic Business Units (SBUs) comprising of Industrial & Commercial (I&C). Retail. It markets the products through a country wide network of 33 installation & oil terminals. Page | 12 .
Kochi's capacity could be i creased to a similar level from the prese t 9. Key growth driver. 5-year visio Page | 13 . This part of the cou try has bee seei g a rapid rise i dema d for petro-products a d the Bi a refi ery is expected to play a importa t role i meeti g this requireme t.. By the time overall refi ery capacity touches 45 millio to es. up from the prese t level of 30.Bharat Petroleum Corporatio is looki g at a refi i g capacity of 45 millio to es i 2015-16. ow focused i Africa a d South America with the latest bei g the shale gas joi t ve ture i Australia. scheduled for commissio i g i 2011-12. Similarly..000 crore for a foray i to power. will be a key growth driver for BPCL's prese ce i North a d Ce tral I dia. BPCL expects its market share to be closer to the 33 per ce t mark. Its capacity could be expa ded to 15 millio to es without too much of a hitch if the eed so arises. I additio . BPCL also has a 12 millio -to e refi ery i Mumbai while Numaligarh i Assam has a capacity of three millio to es.5 millio to es.5 millio to es. BPCL will pump i vestme ts for its exploratio a d productio activities. Compa y would also be earmarki g Rs 600-1. as part of its ma y goals for 'Project Dream Pla '. The six millio -to e Bi a refi ery. New refi i g target would i volve expa sio of the Bi a a d Kochi projects. No decisio has bee made o the feedstock to be used as well as the pote tial allies for this ew busi ess.
The sixth SBU. Refinery along with two new departments IT & Supply Chain and R&D are under the director (refineries). where as in the earlier structure there were only 22 divisions which catered to all segments. Five SBUs ± Retail. Administrative offices have been moved to supply locations that consist of 125 terminals for main fuels and 35 LPG bottling ones. Industry/Commercial. Further authority was delegated to the role and not the hierarchy level. Each territory team leader was responsible for sales in the territory only for a specific product. engineering. The period till 2015-16 is particularly critical to BPCL co sideri g that a ew phase of fuel price deregulatio has kicked off which mea s worki g o a series of i itiatives to grow market share. etc. In other SBUs the regional office was removed and territories were designed to directly report to the SBU heads. finance. In Page | 14 . Lubes. The new structure was focused on the business processes and the customer. logistics. The new structure at the top management level is the same. LPG and Aviation are customer centered SBUs and come under the director (marketing).The 'Dream Pla ' project follows 'Project Desti y' which was the fiveyear visio stateme t betwee 2005 a d '10. Each SBU would have its own HR. sales. Decisions earlier taken at the regional level were taken now at the territory level. In retail SBU the new structure had 66 territories reporting to the four regional offices. The territory structure was designed to enable the field staff to focus on specific customer segments. The number of layers in the organization was reduced to four from six or seven. IS. The major change is the introduction of the territories covering a smaller geographical area and focusing on specific customer segments. Authority was also delegated down the hierarchy and decision making pushed to the lowest possible levels.
..... 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 HIERARCHY////. Page | 15 .. It created new roles at the front effectively using redundant manpower to increase customer interface and interaction....LPG 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 strength) across the organization...
Bongaigaon Refinery and Petro-Chemicals Limited (BRPL) is one of India's top ten refinery companies. Cals Refineries Ltd. serves the eastern state of Assam. the company has petrochemicals and polyester staple fibre (PSF) plants.000 barrels per day (20 MMTPA) of oil refining capacity on India¶s east coast in the State of West Bengal. It is the first local refinery in India that has been integrated with a petrochemical complex in the same location. In addition to its core crude processing refinery. Page | 16 . has plans to set up a total of 400. thereby emerging as the third largest oil Refining and petrochemical company in India. in phases.
Indian Oil is India¶s flagship national oil company with business interests straddling the entire hydrocarbon value chain ± from refining. formerly known as Madras Refineries Limited (MRL) was formed as a joint venture in 1965 between the Government of India (GOI). 1. marketing of natural gas. and petrochemicals. HPCL is a Fortune 500 company.Chennai Petroleum Corporation Limited (CPCL). AMOCO and National Iranian Oil Company (NIOC). with an annual turnover of Rs.08.599 Crores and sales/income from operations of Rs 1. pipeline transportation and marketing of petroleum products to exploration & production of crude oil & gas.306 Millions) during FY 2009-10. having about 20% Marketing share in India and a strong market infrastructure.889 Crores (US$ 25. Page | 17 .14.
rubber process oils and export markets. India. opening up of the petroleum sector to private enterprise spurred the company to expand with another plant put up in Daman to back up the plant in Vasai to meet increasing demands. Essar oil is an Indian integrated oil and gas company that is part of the Essar group based in Mumbai. Page | 18 . The company made rapid strides into the Industrial & OEM lubricants. which made it the second largest non-state refiner in India in 2009 In July 2009. Essar acquired a 50% stake in Kenya Petroleum Refineries Ltd. Sah Petroleums Limited became a listed company in 2004 to further meet its expansion plans. It operates a major refinery in Gujarat.In 1991.
COMPANY ANALYSIS Page | 19 .
has 0 divestiture during this period. Bharat Petroleum Corporation Ltd. Bharat Petroleum Corporation Ltd.CURRENT ISSUES Bharat Petroleum Corporation Limited acquired the Government of India's shares in KRL in March 2001.5 MMTPA after capacity expansion in 2009. has made 0 acquisitions while taking stakes in 2 companies. Consequent to the merger Order dated 18 August.The current capacity of the refinery is 9. the refinery has been amalgamated with Bharat Petroleum Corporation. 2006 issued by Ministry of Company Affairs. Year 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 Total Acquisitions 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Stakes 0 0 0 0 0 0 0 0 0 0 1 0 1 2 Divestitures 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Page | 20 . hence forth to be known as BPCL-Kochi Refinery.
environmental analysis should be continuous and feed all aspects of planning. quality specification etc. PEST analysis stands for "Political.PEST Analysis It is very important that an organization considers its environment before beginning the marketing process. and Technological analysis" POLITICAL ANALYSIS The political and legal environment for the whole oil industry is very essential. Economic. This two institutes are responsible for all the decision related to the price. In fact. Social. In India the entire oil industry is been governed by OIL Ministry and OIDB a Govt body. Beside this the international politics also affect this international commodity ³Oil´ a lot and also its companies. Any company operated in India had to work according to the norms and on the prices specified earlier by Govt bodies Page | 21 .
It is only the GDP estimated on a purchasing power parity basis which gives some indicator so the volume of output which should form the basis of cross country comparisons of output and estimation of oil intensity therein. The lower prices are much more extensive in the services sector. though the oil intensity in India is comparatively much lower than in most other developed and developing countries the negative impact of high oil prices on the economy is accentuated by the distorted pattern of oil consumption in India.4% of the Indian economy in 2004. Page | 22 .05.ECONOMICAL ANALYSIS The gradual reduction of tariff protection has ensured that prices of most goods in countries like India are closer to global levels or even much lower. which accounted for 52. However.The use of GDP based on purchasing power parity in the calculation of oil intensity is also validated by the fact that the figures on oil consumption are measured in terms of volumes of input (million tons of oil equivalent-mtoe) while the GDP estimated on the market exchange rate gives only the value of output and not the actual volumes.
is very important for any company to work in it. These are the south. The India is basically can be divided into four major regions on the basis of language. 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. demography and also the income states. with Bharat Petroleum having the distinction of executing the largest and the most ambitious SAP project in India. The implementation project known as ENTRANS (Enterprise wide Transformation) has been awarded the 'SAP Star Implementation Award'. TECHNOLOGICAL ANALYSIS BPCL has been on forefront in harnessing technology. Maximising efficiency and achieving greater customer satisfaction.SAP. Providing Page | 23 . The BPCL as a company also operates differently in different regions and also use different languages to attract people towards them. This is also. ³To develop technoeconomically viable and environment-friendly products´. north. Cultural Environment The company BPCL is very much concern about the environmental polices of it and also very strictly follow every small norms of it. a reason for which the company have t refineries in every region.SOCIAL CULTURAL ANALYSIS Social cultural variation in the Indian context. Bharat Petroleum is the first Public Sector Oil Company to implement Enterprise wide Resource Planning (ERP) solutions . east and west. including the remote locations. The mission of the company is very clear.
A large data warehouse project has also been implemented. 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.online connectivity in these remote locations. thus ensuring value-added services. was in itself a daunting task. which facilitates access to real-time accurate information on key performance indicators at all Bharat Petroleum locations. With SAP as the IT backbone. monitoring creditmanagement. besides easing the operations in a large number of areas. inventory management. This enables the management to take strategic and business decisions. Bharat Petroleum plans to take advantage of the Internet based capabilities along the entire value chain with a Customer Relationship Management solution. given the full-fledged IT network infrastructure. better customer satisfaction and enhanced shareholder value Page | 24 . Furthermore. 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.
.OIL).PORTER¶s FIVE FORCE MODEL.. Differentiation: BPCL is the pioneer in launching state-of-the-art petrol stations with digital dispensers. standardized signage and efficient lighting systems way back in the mid.In this way BPCL has overall cost leadership vis-à. it has become imperative to own dominant brands.1990s. modern canopies. Emphasis is laid on continuously understanding customer behaviour. Caring and Reliable. Following are the evidence of differentiation by BPCL. all the player in downstream petroleum sector have to maintain same prices. In the highly competitive scenario. For the subsidized products. kerosene and LPG. Innovative. and meeting these needs in the most cost-effective manner Page | 25 . viz. Government allots Oil bonds to Oil PSU¶s in order to partially compensate for the under-recoveries and to some extent by upstream Oil Companies (ONGC. As we all know that bpcl is the only company which provides its customers with retail outlet chains which easy for their customers to buy some products at their footsteps.vis private players. High speed diesel. 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'. Overall Cost Leadership: As per the Government regulations. infact subsidize the mail commodities like Motor spirit. tracking their changing needs and expectations.
With the opening of new airports. Its network includes more than 1900 retail outlets. BPCL has aimed at securing its share of volumes by tying up with reputed brands like Tata¶s. The sector is expected to be one which will be full of challenges for all the players. BPCL has been positioning itself to deal with the emerging scenario. by virtue of which it has a total share of around 30% to 40% of India¶s overall refining capacity. 50% of BPCL¶s refining capacity is located in the Northern and Western regions. Although its refineries are located the interior of the country. The Indian aviation sector has been passing through challenging times. The resultant price increases have led to falling passenger numbers. Besides. It also has a dominant share in all segments in terms marketing infrastructure. the business models of companies supplying ATF have changed. for the manufacture and sale of Genuine Oils.. BPCL has continued its foray into foreign markets by entering the Sri Lankan market and gathering its market presence in Nepal. and 6000 kerosene/LDO dealers.SWOT ANALYSIS STRENGTH BPCL controls many refineries. General Motors etc. At the same time. and not near the major ports BPCL has a very strong distribution network by virtue of having a share of 45% in the country¶s product pipelines. 8000 LPG distributors. Page | 26 . Hero Honda. The Lubricants business continues to be one of the most challenging. which are of high demand and high growth areas. airline companies are passing through difficult times with their financial health deteriorating on account of the sharp increases in the cost of ATF. Besides focusing on the bazaar segment.
as compared to some major foreign player is another Weakness for the company. it can very easily go for extension at any point of time.WEAKNESS The company is the market leader in the industry. The company starts working on it. The various opportunities are listed below. This is because the petroleum products are become a need for everyone and still contains a lots of scope for customization. The technological drawback. Of refineries in India. Since the company has the maximum number of outlets and also the maximum no. which will get support from its huge market network. but still it has many weaknesses. and can introduce any new products. The petrochemical product development technology is another weakness for the Company. The major weakness for the company is the R&D. The list is given below. Page | 27 . OPPORTUNITY The BPCL has much opportunity in the present market conditions.
The lists of threats are given below. The foreign players with more advanced technology are the biggest treat for the company. the private player can seriously harm the market share of BPCL. Policies allow the private players to set their own price. The crude oil supply is also a big issue in front of the company. Company have a great scope in E&P. which will eat up its market share.The company can make the buying process easier for the customers. so have maximum threats from the other players and many other issues. Company can introduce more ideas like its IN & OUT concept for its customer THREAT Since the company is the market leader in the field . by implying many more schemes in the range of PETROCARD REWARDS and all. Page | 28 . If the Govt. In future the market will welcome more private players. some time had operated in loss also. It is already involves in E&P but only in a very Limited scale. because the company cannot fix its price and so. it is the biggest problem because the maximum part of their crude is been imported..
It has been pioneer in this market with several retail initiatives such as. namely downstream petroleum and exploration and production. Page | 29 . In downstream oil marketing sector. : 1) It was the first company to introduce loyalty programme called petro cards in India. 2) It introduced µPURE FOR SURE¶ ± a fuel quality and quantity assurance programme 3) It came out with ³SPEED´ ± the first premium fuel in the country. 4) The launch of ³IN & OUT´ ± the largest chain of convenience stores in India has been tremendous response from customers.UNIQUE SELLING PREPOSITION [USP] BPCL operates through two reportable segments. 5) One of its latest initiatives has been ³GHAR´ brand of retail outlets on highways for truckers and travellers. BPCL has a strong market share in petrol sales specifically in urban markets and second highest market share in diesel sales all over India.
MARKETING STRATEGIES Page | 30 .
Currently I&C SBU caters to approx. of the core and noncore segments and various Govt.Swiftly & conveniently.INTRODUCTION At Bharat Petroleum. working consciously towards providing added value in fuel and non-fuel areas. establishments such as Defence. commonly known as I&C SBU was formed. Railways. BPCL understand your requirements and have consistently tried to satisfy your needs. they understand needs as customers and relentlessly work towards fulfilling them. State Transport Undertakings. Fueling Industries To cater to Industries needs of fuels and other petrochemicals Bharat Petroleum¶s Industrial and Commercial Business Unit. It is their duty to return all of you a satisfied one« Fueling Automotives Ensuring you reach your destination . These include industries from the Public & Private sectors. 8000 industrial customers spread across all over the country. And it is not easy as our customer base is a diverse one demanding of us to perform better and satisfy the needs of some of you who fly in the air to the larger Indian populace who survive on µKerosene¶ as their cooking fuel. The Corporation offers products and services that have been designed to meet the need gaps of its customers. Page | 31 . Vehicle owners are always on the lookout for new offerings as well for tips & pointers to keep their vehicles in top shape. State Electricity Boards etc.
Fueling Skies The history of Indian Civil Aviation is synonymous with the history of Bharat Petroleum Corporation Ltd. Today over 25 million homes in India.(BPCL) -Aviation Service. having entrusted their LP Gas needs to Bharat Petroleum. wake up each morning to enjoy ³the cup that cheers´ prepared on Bharatgas. Similarly. hundreds of commercial and industrial establishments start their day. BPCL has completed more than 75 years of ³Aviation Service´.Fueling Home Bharatgas from Bharat Petroleum has dominated the LP Gas market in India for over three decades. confident and secure. Page | 32 . BPCL-Aviation Service is present at all the major gateways and other airports in the country rendering into-plane services to leading domestic and international airlines and operating the Aviation Fuelling Stations.
Page | 33 . Companies interested in registering with BPCL for buying/supplying products. Occasional there are import requirements of Gasoil. BPCL on a regular basis imports its LPG requirements mainly from the Middle East. Products exports are done on both FOB and CFR basis.PRODUCT Imports BPCL imports products depending upon the domestic demand supply scenario. The products which are exported regularly are Fuel Oil. Gasoline and Base Oil. Naphtha and Base Oil (Group II). Both import and export of products are done through tender. Exports BPCL exports products from its refineries on a regular basis. Kerosene. Tender invitations are only sent to counterparties who are registered with BPCL.
the high. BPCL has rolled out a television commercial. the 'In & Out' scheme enables the company to let out space in selected retail outlets to a variety of firms to sell their products. To promote its new launch Speed. greetings cards Page | 34 . cold drinks.performance petrol from Bharat Petroleum. print and television advertising and mobile promotions. Bharat Petroleum Corporation Ltd (BPCL) is chanting a new marketing mantra: Fuse online marketing plans with offline advertising. The company plans to tie-up with other sports channels and programmes soon. mobile phones. Drive your Dream with Speed.PROMOTION To gain mindshare and market share. To promote its new launch Speed. outdoor. While the 'Pure For Sure' campaign ensures supply of petro products in right quality and quantity to consumers. the company has lined up a slew of marketing tie-ups in the next few months As part of the strategy. which is being aired on ESPN Star Sports from June 1. BPCL rolled out an integrated marketing package which included online promotions. 2003. ³The TVC shows the evolution of a normal car into a Formula 1 race car. ranging from fast foods. BHARAT Petroleum Corporation Ltd has adopted a two-pronged strategy to promote the sale of petroleum products in the right quantity and quality as also non-petro products.
Worldwide. Some specific products which are marketed by bpcl are used to set by bpcl. the availability of footfall in the petrol retail outlets give petroleum retail companies the competitive advantage. Page | 35 . postal services. All of them have deployed best retail practices in their stores and offer a wide range of services including laundry. Hence alongwith strategic locations. fast food etc.Petrol stations are widely recognised to be one of the highest traffic aggregators and retail majors like hypermarkets. Caltex. Bharat petroleum is running their convenience store chains very profitably. These are the promotional strategies by Bharat Petroleum Corporation limited. courier services. PRICE Prices of petrol and petrol products are basically set by petroleum ministry of India. petrol station convenience stores have developed into a serious business in it with companies like Shell.
9 DOMESTIC FUELS 17 Feb 2011 Product Selling Unit Mumbai Delhi Chennai Kolkata SUP.27 328.5458500.85 66.Product Selling Unit Mumbai Delhi Chennai Kolkata SPEED SPEED 97 Hi SPEED DIESEL LITRE LITRE LITRE 65.7 0 LPG PACKED CYLINDER 313.91 281.7954696.8350958.3 66.8 73 44.95 68 39.45 (14. KEROSINE OIL (DOMESTIC) LITRE 9.2 0 8.2 72 42.2 AVIATION FUEL 17 Feb 2011 Product Selling Unit Mumbai Delhi Chennai Kolkata AVIATION TURBINE FUEL (DOMESTIC) KL 51332.42 316 0 9.2 Kgs) PP FEEDSTOCK(C3) MT 52610 Page | 36 .01 8.3 60.05 73 42.
TARGETTING Page | 37 . Some of the products are aggressively marketed by bpcl which really separates bpcl from its competitors and they charge there customers . Some of the major products or basic products are present in maximum part of the country and some of the products are marketed only in selected areas. SEGMENTATION The petroleum. refining and marketing company BPCL is a company related to oil gas coal with services related to them.PLACE Place for bpcl is also chosen by governing bodies of bpcl. BPCL provides quality product with different types of lubricants which are useful for automobiles.
As perception differs from person to person. etc. lpg & other such kind of lubricants are used by everyone. Positioning is all about 'perception'. so do the results of the positioning map e. is different to my perception.POSITION (STP) process is 'positioning. As we all know that today petrol. This allows them to be compared and contrasted in relation to each other.g what you perceive as quality. However.BPCL is not such a company which target any high class or middle class customers. This is the main strength of this tool. Overall targeting or there marketing are done in such a way that they present there product as a automobile friendly lubricant.' Positioning is undoubtedly one of the simplest and most useful tools to marketers. BCG MATRIX Page | 38 . there will be similarities. diesel. So it is not that kind of company which targets any special customer. Other than these some of the products are marketed and they target youths. value for money.TARGET . Marketers decide upon a competitive position which enables them to distinguish their own products from the offerings of their competition. Products or services are 'mapped' together on a 'positioning map'. POSITIONING The third and final part of the SEGMENT . After segmenting a market and then targeting a consumer. you would proceed to position a product within that market.
2)CASH COWS (low growth. . However if needed any attempt should be made to hold share. Page | 39 .Placing products in BCG matrix results in four categories in a portfolio of a company: 1) STARS (high growth.Profits and cash generation should be high.Frequently roughly in balance on net cash flow. high market share) . high market share) .Use large amounts of cash and are leaders in the business so they should also generate large amounts of cash. investments needed should be low. because the rewards will be a cash cow if market share is kept. and because of the low growth. Keeps profit high.
because high demand and low returns due to low market share . . Increase market share or deliver cash.If nothing is done to change the market share. question marks will simply absorb great amounts of cash and later. 2) QUESTION MARK (high growth.Either invest heavily or sell off or invest nothing and generate whatever cash it can. .Avoid and minimize the number of dogs(product) in company. . Page | 40 .Have the worst cash characteristics of all.Beware of expensive µturn around plans¶. low market share) . low market share) .Deliver cash otherwise liquidate.3)DOGS (low growth.
FINANCIAL ANALYSIS Page | 41 .
SOURCES OF FINANCE There are a number of potential sources of finance Existing shareholders and directors funds (³owner financing´) Overdraft financing Trade credit Equity finance Business angel financing Venture capital Factoring and invoice discounting Hire purchase and leasing Merchant banks (medium to longer term loans Prospective lenders ± usually banks ± will then make a decision based on the information provided. This will ensure that the financial risk of the company is kept at an optimal level. Page | 42 . The terms of the loan will depend on the risk involved. However. but without unnecessarily diluting the share capital. in most circumstances venture capitalists will also require more complex investments (such as preference shares or loan stock) in additional to their equity stake. The overall objective in raising finance for a company is to avoid exposing the business to excessive high borrowings.
besides supplying fuel directly to hundreds of industries. The BPCL story is a case in point. At BPCL. discovering new avenues for growth and harnessing latest technology to drive Customer aspiration. Retail. its turnover stands at a staggering Rs. BPCL is organized into 6 Strategic Business Units (SBUs) comprising of Industrial & Commercial (I&C).KEY INVESTMENTS There are companies and then there is Bharat Petroleum Corporation Limited (BPCL) .8 crones. Aviation and Refinery. Success in the corporate world emanates from the relentless pursuit of excellence. BPCL has implemented following major IT projects / modules during last one year: Supply Chain Management (SCM) for Lubes Business Real Estate module of SAP R/3 for better manageability of the BPCL real estate assets Corporate Financial Management (CFM) module of SAP R/3 for better manageability of short / long term investments done by BPCL. 63857 corers and its profits after tax (PAT) have climbed to a new high of 965. it is all about having a clear vision. 63 company operated depots. 1008 Kerosene / LDO dealers and 2124 LPG distributors. 45 LPG bottling plants and 19 Aviation service stations which provide logistical support for 7077 petrol stations. Fund Management module of SAP R/3 to implement better control over revenue expenditures of the corporation Page | 43 . and several international and domestic airlines. It markets the products through a country wide network of 33 installation & oil terminals. LPG. For the year 2004-05. the company¶s growth has been phenomenal. treading a unique path.an organization that has redefined the petroleum and refining business. Post its nationalization in 1976. Lubricants.
The lubes business has challenges like Large number of players Brand loyalties Declining margins Quality and service support Attractive packaging Improved offerings in terms of new grades and availability Large number of products Obsolete stocks Reactive logistics and production Optimization of distribution net work Optimizing Inventory Page | 44 . their product stock at BPCL plants (selected vendors) from backend SAP R/3 system over Internet SMS PULL Applications for Smart Fleet card owners to know their balance. Statement of Accounts. to set limit or block the usage for any of their fleet cards and also to track the location of the vehicle based on the usage of fleet card. Description of SCM project undertaken by BPCL The SCM project in lubes was undertaken with a view to handle various business challenges faced in lubes business. Vendor Portal to provide real time information on Request For Quotations (RFQs). Contracts. Purchase Orders.
RATIO ANALYSIS Annual results in details Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06 Other i come Stock adjustme t Raw material Power a d fuel Employee expe ses Excise 2.289.93 48.962.88 392.88 1.74 56.414.575.90 42.90 361.10 22.214.171.124 735.15 75.239.003.20 904.102.203.50 361.00 1.404.537.153.30 50.075.50 1.50 -205.10 1.12 1.098.60 51.31 1.40 733.85 1.936.20 Net profit / loss 1.592.45 53.892.580.156.20 11.921.53 1.21 640.96 1.903.884.32 1.40 430.016.00 Page | 45 .50 128.242.00 361.54 1.30 -608.54 361.00 300.20 -3.43 268.60 53.60 1.80 156.00 - 2.80 22.70 962.20 Provisio s made Depreciatio Taxatio Extra ordi ary item Prior year adjustme ts Equity capital 828.805.20 1.70 737.70 - Admi a d selli g expe ses Research a d developme t expe ses Expe ses capitalised - - - - - - - - - - Other expe ses 71.30 9.297.141.989.30 18.
52 0.35 2.20 791.42 1629.463.23 45.54 35.64 20.74 1.13 1292.35.331.74 2.01 profit I terest Gross profit EPS (Rs) 2.67 33.29 35.of o prom.13 1014.01 2. shares (Lacs - 1629.972.40 3.88 1.166.416.88 1.74 3.21.44 2.684.37 2.00 477.22.Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06 Equity divide d rate Agg.079.10 1.of o promotoHoldi g 45.07 2.30 77.94 573.42 1292.17 A ual results i brief Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06 Sales 1.29 1.37 42.80 49.05 2.608.60 672.299.539.452.48 1.07 (%) OPM (%) GPM (%) NPM (%) 2.72 3.53 Page | 46 .90 1.50 3.671.80 0.09 1.010.60 4.50 212.831.30 Operati g 2.39 1.07.95 3.00 Agg.50 43.359.02 0.18 3.
HR POLICIES & STRATEGIES Page | 47 .
Hand holding his important Mentoring process to be institutionalized Page | 48 . Need to make students more aware of the sector and its potential as an employer On-boarding and Mentoring The first impression forms the lasting impression.SOURCES & PROCESS OF RECRUITMENT Attracting Talent at Entry level Time to look beyond ³Professional Only´ policy Open and Campus Recruitment to leverage available best talent from market More emphasis on nascent talent and employability rather than educational brilliance. Hence onboarding process for the new recruits requires to be in place Important to manage the transition from academic world to professional world ± from certainties to uncertainties. Recruitment has emerged as an area of relationship management (with educational institutes) Giving support to the institutes for content development. project works etc. Campus connect (employer branding) exercise to highlight attractiveness of oil sector and the company.
Understanding changing expectation of employees Survey amongst new recruits Organizational Climate/ Employee Engagement surveys at regular interval Managing Employee Expectations and Delight Progressive discrimination between performers performers Re-engineering of compensation package Employee self-service Grievance redressal Developi g be ch-stre gth for critical positio s Ide tificatio of 2 successors agai st each critical positio and non Worki g out developme tal eeds for ide tified i dividuals Bridgi g k owledge/ skill gap Page | 49 .
( o Customized Programs o External Seminars/ Conferences o Foreign Training o E-Learning o Learning Centers o Education Refund Plan (ERP) o Study leave policy Training Effectiveness Summer Internship/Training for students Page | 50 . the Corporate Training Department's vision is to ³Create value through enhanced competencies and be a strategic partner to business by enabling employees realizes their full potential through innovative and progressive learning initiatives´. the key focus areas of the Department are as under: y y y y y Objectives Training Policy Identifying Training Needs o Training Plans BP Management Development Institute. Basis the above. to augment the learning and development requirements of its officers. The HR Department's Vision is ³Excellence in harnessing the full potential of all employees for becoming a World Class Energy Company´ With this Vision in focus.TRAINNING AND DEVELOPEMENT PROGRAMME BPCL has a full-fledged Corporate Training Department.
with focus on leadership development.Objectives y y y y y y Improve the performance of Employees in their respective assignments Enhance competencies to take up higher responsibilities Strengthen the Leadership Pipeline Bring cultural change from Command & Control to Team based structure Leverage technology in human resources development Facilitate learning in the organization and build a "Learning Organization" The specific training needs of individual employees are identified through Competency Mapping Exercises. o Supervisory level: Employee is equipped with function specific inputs and job related technical skills. Training Policy The Training Policy at BPCL provides broad directions to guide the learning solutions and initiatives. o All training initiatives are planned in order to address new needs required by change in the market scenario. y Management Staff o Entry level: Samavesh .(Induction/ orientation Training) facilitates a new employee to build a sense of belongingness. o Managerial Level: Employee is exposed with the principles of Management which will help blend theory with practice. These programs enable employees to enhance their skills and realize their full potential. The Training Department interacts with all Business Units/functions to identify and design training programs to cater to these needs. Page | 51 .
Customized Programs The training plan for the year for each Business Unit / Function is finalized after mutual discussions with them. Functional / Departmental Level: Customized Training programs are developed for the departments in consultation with the SBU/Functions.y y Non-Management Staff o Trainings with focus on Safety at locations. The SBU specific requirements due to the change in market scenario and thereby required competencies are delved upon.) Identifying Training Needs y y y y Individual Level: Mainly through recommendation from the Performance Appraisal System. computer operations. Training Plans: In-Company Programs The In-company programs are conducted through internal faculty. who will effectively train employees at different levels of the Corporation. external faculty and external courses. Organizational Level: Individual Development Plan obtained from the Competency mapping exercise is used to provide specific Training to bridge the observed the employee skill gaps. Other Training Plans for enhancement of the officers' competencies are scheduled. team spirit etc. Skills relating to job requirement . Focus is given to the development of core internal faculty members.(technical. Then suitable Consultants/ Page | 52 .
Similarly Participant assimilation of training is also recorded. Learning Centers Learning Centers are available in all Zones and Corporate HQO for accessing information through internet. Training Effectiveness Based on the post-training evaluation. Alterations / modifications take place on this basis. including Online certification courses on Project Management. Education Refund Plan (ERP) Education Refund Plan (ERP) enables the employees to undertake academic courses to further their self-development process. the Training department continuously monitors the effectiveness of the facilitator and relevance of the content. leading to learning. books and CDs. Corporation has a detailed Study leave policy. to further on their own. E-Learning Various e-learning programs on defined competencies. in relation to Corporation's requirement. Study leave policy For employees interested in higher studies. Supply Chain Management.practitioners are identified and customized programs are designed in consultation with line functions. different e learning resources on various behavioral areas are facilitated. Training Plans: External Seminars/ Conferences: BPCL nominates officers for external seminars and conferences in connection with their functional requirements. Page | 53 .
route diversion etc. or their extended family. safety. Speed limit violations. VTS system is expected to enhance. fair amount of work has already been done. BPCL has installed these devices in more than 6000 oil tankers. Vehicle Tracking System is union of Global Positioning system GPS and GSM. VTS application selects the approved route for the movement and tracks the position of vehicle during the movement.Summer Internship/Training for students Students undergoing Graduate / Postgraduate professional courses from reputed Management and Engineering Institutions will be engaged for Summer Internship for a period of 6 to 8 weeks during April-June every year. Page | 54 . Quality Control. To spread its benefits to all.e. Another one of the new facilities now being added to the basket and meant to support is the µVehicle Tracking System¶ (VTS). logistics efficiency for all stake holders. VTS is an effective tool for analyzing the product delivery process. origin & destination for the vehicle. are some of the other reporting provided by the system. This system is integrated with Company¶s ERP system which supplies basic information i. BENIFITS & COMPENSATION PROCESS BPCL has over the years and more so in the last decade successfully leveraged the strength of µInformation Technology¶ in the conduct of business. which could help initiate steps to provide a cutting edge over competitors.SMS to pin point accurate position of vehicles and conveying this information to central computer system. It helps you to track vehicles & consignments on real time. Complete movement of vehicles can be seen on overlay route maps.
PRODUCTION POLICIES Page | 55 .
e. Fuel gas. Kerosene. Gas Oil and Long Residue. Gas Oil and Long Residue. Naphtha. The Waxy Page | 56 . Refinery Gas (which is burnt in the refinery furnaces). LPG. Heavy Crude Unit (CDU ± 2) The Heavy Crude Unit comprises of a distillation column wherein Heavy / Light Imported Crude separates into various fractions viz. LPG.1) The Crude Distillation Unit. Liquefied Petroleum Gas (Bharat Gas). Naphtha. The separation is carried out at pressures well below atmospheric pressure. Naphtha.PRODUCTION POLICIES PRODUCTION PROCESS & PRODUCTION LAYOUT Brief Description Of The Process The list of various process plants as a simplified refinery flow diagram is enclosed as per Annexure I. which is further processed in Feed Preparation Units (HVU). Kerosene. which helps to reduce the temperature required for this separation. Diesel Oil and Long Residue that is further processed in the Feed Preparation Units (FPU). Feed Preparation Unit. Feed Preparation Unit (FPU / HVU / VDU) These units prepare feedstock for Catalytic Cracking Units by separating the Long Residue (from the Crude Distillation Unit and Heavy Crude Unit) into two components. which is further processed in integrated Vacuum Distillation Unit (VDU) i. Crude Distillation Unit (CDU . comprising a series of distillation columns. Kerosene. a distillate known as Waxy Distillate and a heavy residue called Short Residue. New Crude Distillation Unit (CDU ± 3) The new Crude Unit comprises of a distillation column wherein Heavy Imported Crude separates into various fractions viz. Fuel gas. separates crude oil into several groups of fractions viz.
cycle oils and clarified oil. Bombay High Short residue becomes a component of LSHS. gasoline. Fluid Catalytic Cracking Unit (CCU / FCCU) The distillation unit yields straight run products contained in the crude oil. Cycle oils are blended to diesel and Clarified oil is blended with Short Residue from the Feed Preparation Unit to produce furnace oil / LSHS. The catalyst. During the cracking reaction. made of Silica-Alumina. better gasoline and more LPG. In these units.Distillate is the feedstock for the Fluid Catalytic Cracking Units. the quality of gasoline found naturally in crude oil does not satisfy car engine requirements. Page | 57 . These requirements of more middle distillates. that vaporizes this feedstock and at the same time brings about its chemical decomposition by cracking. Cracking produces higher quality gasoline and other valuable products. The cracked vapors pass over to the Fractionator where they are separated into gas. Gas is burnt in the refinery furnaces. For example. Hot regenerated catalyst is then returned to the Reactor to renew the cycle. Part of the Short Residue (of Imported crude origin) is processed further for the manufacture of Bitumen and the balance is diverted to Furnace Oil Blending. LPG is sold to domestic and industrial customers. some of these are not suitable in quantity and quality to meet the present requirements. Also one needs higher yields of middle distillates. have resulted in the evolution of the Fluid Catalytic Cracking Units. A Stripper that entrains and separates hydrocarbons by stripping with steam reduces the load on the Regenerator. in the form of a fine powder moves between the three main vessels as a fluid. However. feedstock is charged to a Reactor in which it is contacted with hot catalyst. which is continuously removed by ³burning´ in the Regenerator. which the distillation unit alone cannot provide. some carbon gets deposited on the surface of the catalyst.
cracking of feedstock and at the same time saturation takes place resulting valuable distillate meeting stringent qualities like low sulfur / high Cetane number gas oils etc. 150N & 500N. which the distillation / Catalytic Cracking Unit alone cannot provide that had resulted in the evolution of the Hydro-Cracker Units. Streams from reactor are separated as product and the rest is recycled back to Hydrocracker Unit for recovery of distillate. Page | 58 . Stream ex Reactor pass over to the Fractionator where they are separated into gas. namely 100N. Gas Oil cycle oils and unconverted Oil. Lubricating Oil Base Stock (LOBS) In Feed Preparation Unit. Reformer Feed Unit (RFU) Straight run Bombay High Naphtha from Distillation Unit is split in Reformer Feed Unit (RFU) to provide a narrow cut feedstock of 6090°C. naphtha. which has maximum potential of Benzene & Toluene and their precursors. which is the feedstock for LOBS unit. In block mode operation. feedstock is charged to a Reactor in which it is contacted with catalyst in presence of Hydrogen. Kerosene. feedstock as obtained is charged to a Reactor in which it is contacted with catalyst in presence of Hydrogen resulting Isomerization that improves viscosity index. Naphtha Hydro-Desulphurisation Unit The Naphtha Hydro Desulphurisation Unit comprises of a Catalytic reactor wherein the straight run Naphtha (60-90°C cut) from Reformer feed unit (RFU) is treated in presence of Hydrogen to reduce the Sulphur content to less then 0. Also one needs higher yields of middle distillates with better qualities.5 ppm. In these unit.Hydro-Cracker Unit (HCR) Products from distillation unit / Catalytic Cracking Unit does not meet all stringent qualities like sulfur. etc. unconverted Oil ex HCR is separated under vacuum as feedstock to meet three types of product.
Bitumen Blowing Unit (BBU) The dark colored short residue stream obtained from the Feed Preparation Units of Imported crude oils is almost solid at ambient temperature. SBP 55/115 and Food grade Hexane. New Solvent Unit (NSU) In this unit. Yet. This reformate is separated as middle reformate containing Benzene & Toluene and heavy reformate as blend component in gasoline pool to improve octane. Naphtha is further processed to yield the required cut for the manufacture of special boiling spirit viz. different bitumen grades of varying degrees of hardness are produced. which are valuable petrochemical feedstocks. Bitumen is filled in drums and despatched by road and rail to distant locations. Bitumen is Page | 59 . The DeAromatised Naphtha (DAN) is further processed in Fractionator section consisting of three Splitter Columns for the production of SBP 55/115 and Food grade Hexane (SBP 64/69). Dearomatisation Unit (DAU) and Fractionator Section. SBP 55/115 is widely utilized as a solvent in paint manufacturing and rubber industries while Food Grade Hexane is used in refining of vegetable oils. This unit consists of two sections viz. Aromatic Extraction Unit Aromatic compounds (Benzene & Toluene) are extracted from the Middle Reformate using Sulpholene as solvent. The above operation is carried out in the Bitumen Plant. where short residue is blown using air at high temperature in order to harden short residue. By altering the operating conditions. Naphtha is first treated in DAU to reduce the Aromatic content. it is not hard enough to be used as road asphalt and thus necessitates further processing.Catalytic Reforming Unit (CRU) The desulphurised narrow cut Naphtha feedstock obtained from the Naphtha Hydrodesulphurisation Unit is then reformed in Catalytic Reforming Unit (CRU) to yield Reformate. This extract is then split into Benzene & Toluene.
Methyl Tertiary Butyl Ether (MTBE) Unit. after recovering water and Methanol.99 % volume. H2S gas from DHDS is treated with Amine to enrich it and then the H2S rich gas is treated in Sulphur Recovery Unit (SRU) to obtain Page | 60 . The unit utilizes a fixed bed catalyst process to upgrade the quality of petroleum distillate fractions by decomposing the contaminants with a negligible effect on the boiling range of the feed. The methane rich feed is then reformed. The hydrogen unit utilizes either Light Naphtha or High Aromatic Naphtha as feedstock. wherein the Isobutylene in the C4 streams reacts with Methanol in the presence of catalyst to produce MTBE. which are recycled. The Pressure Swing Adsorption (PSA) Unit further enhances the purity of hydrogen to 99. In this unit. The raw feedstock utilized to generate hydrogen is first desulphurised in the Final Desulphurisation Unit (FDS) to sulphur level of less then 0. nitrogen and metal compounds which contribute to increased levels of air pollution. The hydrogen required for this purpose is obtained by Steam Naphtha reforming. equipment corrosion etc.05 ppm.also delivered in road tankers as a hot liquid for direct application without further heating. MTBE unit has been installed with a view to provide Lead free gasoline to Mumbai Metro. The reactor products are then separated into MTBE & Raffinate. C4 stream from the C3 / C4 separation unit is mixed with Methanol and routed through two reactors in series with MTBE unit. The Diesel Hydrodesulphurisation (DHDS) Unit converts this sulphur in the presence of Hydrogen (H2) to H2S so that sulphur level in HSD is reduced to less than 100 ppm. Diesel Hydrodesulphurisation (DHDS) Unit High Speed Diesel (HSD) contains contaminants like organic sulphur. The hydrogen obtained by reforming is around 70 % pure. The MTBE product is sent to storage to be blended with MS for Octane boosting and Raffinate is routed to LPG. The sweet feed (free of sulphur) is then Prereformed to convert higher hydrocarbon to methane.
The later are absorbed in Diethanol amine absorbers and stripped in an Amine Regenerator. Page | 61 . These are removed from gasoline by Merox treatment. fresh water and sea cooling water supply & circulating system. Sulphur Recovery Unit (SRU) Off-gases from CCU / FCCU / DHDS / HCR and Cracked LPG from Gas Concentration Units (GCUs) are treated in an Amine Treating Unit to remove H2S and CO2. compressed air station. electricity receipt / distribution. which are harmful and must therefore be removed before use. crude oils also contain small quantities of substances. steam generation / distribution.Sulphur as a by-product. This H2S rich gas is then fed into the Sulphur Recovery Unit where H2S is converted to SO2 by combustion process. Compound such as Mercaptans present in motor gasoline component cause corrosion. The residual H2S combines with SO2 to produce elemental Sulphur. Utilities Network The utilities system which is the heart of refinery consists of Gas turbines (cogeneration mode). LPG is also treated to remove deleterious compounds by caustic soda / Merox treatment to produce Bharat Gas. The acid gas from the Clauss reactor is treated in Maximum Clauss Recovery Concept (MCRC) unit to recover Sulphur to the maximum possible extend. A thermal stage followed by two catalytic stages is used to achieve the desired yield. Treating Units In addition to the hydrocarbons. The fresh water received is treated in the Demineralization plant before feeding to the three boilers & Heat Recovery Steam Generators (HRSG¶s). The sulphur is obtained by Clauss process. A small quantity of harmless Mercaptans is added to give a distinct smell for easy detection of leakage.
Tertiary Treatment Plant (TTP) In TTP. Kuwait Petroleum Corporation. FPU.. the process effluent is given a Powdered Activated Carbon Treatment (PACT). This facility is designed to process 240 M3/hr of effluent containing pollutants like oil sulphides. The Gulf-based crude oil suppliers to India include Saudi Aramco. The country is already a major exporter of refined petroleum products. phenolics. which is a highly effective process to meet the stringent Minimal National Standards (MINAS).. Permeate from the RO membrane is diverted to DM plant for further processing thereby reducing the raw water requirement for the Refinery. BOD and suspended solids.thus conserving raw water. TTP is designed for processing 1000 m3/d of effluent with 70 % recovery. DHDS. If the Gulf countries accept the offer. Here. Abu Dhabi National Oil Co and National Iranian Oil Company.Waste Water Treatment Plant The effluent treatment plant is designed to process the effluent from various units like CDU. FCCU. the WWTP (MINAS) effluent is processed further. Aromatics etc. India can emerge as a regional hub in crude oil trade. The unit consists of a pre-treatment section followed by a suite of Reverse Osmosis (RO) membranes. CCU. to recover desired quality of water for recycle to DM plant. Page | 62 . KEY SUPPLIERS Kuwaait is the major supplier of crude oil in return for assured supplies in the long term from the Gulf nation..
industries & individual as well. and in most of the cases. As we all know that transportation is backbone of our economy so fuels are used by transport companies. use in automobiles and in houses and industries Piped Natural Gas (PNG) is distributed through city specific infrastructure for consumption by the households.KEY CUSTOMERS As we all know that BPCL is a petroleum company so it has no special or key customers. this replaces LPG. town or a city. All the products which are marketed by BPCL are of multi use. FUELS It is used by everyone. Page | 63 . the major uses of Natural Gas comprise of manufacture of fertilizers and petrochemicals and as a fuel in power plants. restaurants. BPCL has products related to petroleum such as Natural Gas In India. small scale industries. Liquefied Petroleum Gases [LPG] It is basic necessity of everyone in India whether it is village. etc.
etc. e. which has been well appreciated by customers. Delivery of the right quantity is ensured by comprehensive sealing and calibration of the dispensing units which makes meter tampering impossible.. Bharat Petroleum has collaborated with an independent global agency 'TUV SEDDEUTSCHLAND INDIA' to build a fully computerised format to be installed at every outlet.g.'Input measures'. transportation of fuel to the outlet through pilfer proof padlocked tank lorries. The 'Pure for Sure' program is an even more focussed.The 'Output Measures' involve rigorous periodic and surprise checks. two sets of Q&Q measures . Only those outlets certified by 'TUV' would be eligible to come under the 'Pure for Sure' programme. to Bharat Petroleum's enhanced standards will be certified by this German based agency. the other with the dealer.. courteous and quick service Quality measures With the ultimate aim to inspire complete trust in its retail outlets. to promote overall public confidence in regard to the impartial evaluation of the programme. etc. and intense effort towards ensuring Quality and Quantity. regular testing of samples both for clinical and octane number. These special pilfer proof padlocks are provided with a set of two keys . Page | 64 .. During the last 3 years Bharat Petroleum has implemented a set of Customer Service Standards. and sealing and calibration of the dispensing units. To achieve this. Bharat Petroleum has adopted stringent measures to ensure quality and quantity at every point . thereby nullifying the risk of malpractice enroute. dedicated mobile vans.one in custody of the loading location.right to the customer's fuel tank. Adherence by the supply locations as well as by dealers.QUALITY CONCEPT USED BY BPCL.
In adherence with its Q&Q promise to the consumer. which include quality. Bharat Petroleum is vigilantly tracking performance on measures that monitor these efforts. But his first exposure to exemplary courtesy and personalised service will make an instant impact. and cared for. dealer/DSMs performance is obtained from customers frequently patronising an outlet. The level of service should be quick and efficient so as to bring home the fact that precious time is not wasted on delayed transactions. Performance is also tracked through mystery customer audits. Each time the customer drives into the forecourt he needs to be recognised and acknowledged. Efficient fuelling: Here. as well as the resultant performance on various elements like total time taken to fuel each vehicle. Q&Q checks. made to feel special. etc. reliability and expertise.e. Feedback on an outlet. resulting in reinforced consumer confidence and positive referrals. greeted with a smile. through a questionnaire specially designed for the purpose. It may perhaps take three or four fills for the customer to notice an improvement in Q&Q. Page | 65 . i.Courteous service: Customers choose vendors on their value perceptions. time is a vital factor.
CONCLUSION The project which defines & elaborates the marketing principles adopted by BPCL was enlightening for me. It enabled me to partially apply all the lessons learned which led to the clear understanding of concepts & ideas in depth. Page | 66 . The reason for phenomenal success of BPCL can be very well justified through the techniques stated in the project. In the project I have considered all best products marketed by BPCL. It also encouraged me apply all my analytical. logical & innovative skills. I also identified importance of using the right type of strategy for the product as it is the backbone of the brand. The report summarizes the basic marketing tools like 4P¶s strategies and environmental scan among other mappings and competitors study for a brand like BPCL.
3) BUSINESS MAGZINES NEWSPAPERS 1) MINT 2) ECONOMIC TIMES 3) FINANCIAL EXPRESS WEB SITES 1) GOOGLE.COM 3) ECONOMICTIMES.COM Page | 67 .BIBLIOGRAPHY REFRENCE BOOKS 1) BOOKS PUBLISHED BY BPCL.COM 2) MONEYCONTROL.COM 4) BLOOMBERG. 2) MAGZINES BY BPCL.
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