Hpcl Distribution System

7/30/2019 Hpcl Distribution System

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1 INTRODUCTION

Operations management is understood as the process whereby resources or

inputs are converted into more useful products.

A petrochemical industry basically converts petroleum and natural gas in useful

products. Petroleum refinery use crude petroleum as a raw material and converts

it into different products like petrol, kerosene, diesel, low-density oils,

hydrocarbons like propane and propylene, butane and butylene, pentane,

hexane, toluene, benzene, and other products like tar, lubricants base, etc.

HPCL REFINERY


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2 HPCLCOMPANY AND OPERATIONS

2.1 PROFILE

Name : Hindustan Petroleum Corporation Limited (HPCL)

Incorporation : 1974

Constitution : Public Limited Company

Sector : Petroleum Refinery

Industry : Petroleum

Activities : Bitumen, LPG, CNG, and downstream petroleum products.

2.2 BACKGROUND OF COMPANY AND OPERATIONS

HPCL is the second largest player in Indian Oil sector and in highly competitive

lubricants market. It was formed in 1974 on nationalization of ESSO India operations.

HPCL has two refineries producing a wide variety of petroleum products-one in

Mumbai (West Coast) and the other in Visakhapatnam (East Coast). The HPCL refinery

in Mumbai is situated in Mahul, west coast. It is in an M.I.D.C. area, which also has other

big industries like Indian Oil Corporation limited (IOCL),HPCL Corporation limited

(HPCL), Tata power plant etc.

The Corporation also holds major equity in Mangalore Refinery and Petrochemicals

Limited, and is proposing to set up a refinery in the state of Punjab.

2.3 TYPE OF INDUSTRY

HPCL refinery can be classified as an analytical type of industry. It is petrochemical

industry i.e. broadly speaking chemical engineering industry.

Petroleum refinery is a production industry where raw material crude petroleum is

transformed into various useful products using some chemical processes.


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2.4 CAPACITY

HPCL Mumbai refinery has a capacity 5.5MMPTA.HPCL Mumbai is operating one of

the largest lube oil refinery in the country which has a capacity of 335TMT. This Lube

Refinery accounts for over 40% of the India's total Lube Base Oil production. The

refining capacity steadily increased from 5.5 million tonnes in 1984/85 to 13.70 million

metric tonnes (MMT) presently.

According to Auto Fuel Policy, EURO-IV norms are to be followed in metro cities by

2010.To supply it in future additional capacity planning is being done. Diesel hydro

treating (DHT) of about 2.2MMTPA will be introduced in HPCL. Majority of EURO-IV

HSD will be produced in HPCL, Mumbai.

2.5 LOCATION SELECTION CRITERIA

Oil Refineries process millions of gallons of oil that have been drilled from the Earths

crust. Choosing the location of an oil refinery is not an easy task because a number of

environmental and safety concerns need to be taken into account.

India does not have high crude oil reserves, and hence it depends totally on import of

petroleum crude oil. Gulf countries are the main suppliers to India.

Transportations and refining costs are very high for any refinery and hence these factors

take priority in considering plant location.

Oil Refineries are often located on the coast and away from busy cities. When choosing

the location for an oil refinery, the following factors need to be taken into consideration:

Coast: HPCL is located at its Chembur in Mumbai and Vizag in Andhra Pradesh becauseof the proximity of sea routes from the plant location. As for transportation purpose, the

Refinery (west coast)

Mumbai.


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raw material used in the production in HPCL i.e. crude oil can be easily transported via

the sea routes. There is a rail route specially built for transportation of coal, from vadala

to refinery area. Almost all oil refineries like HPCL, IOCL are situated at the Mahul

gaon location at Chembur in Mumbai. HPCL petroleum refinery is on Mumbai west

coast because generally refining is carried on along the coast, where low cost water

transportation can be used.

Transportation: The oil refinery must be near to rail, road or sea links and close to the

site the oil has been drilled. HPCL has port near to it.

Available workforce: It may be tempting to build an oil refinery in a remote location

where no people or animals can be affected. However, a refinery needs workers living

relatively nearby. Even though HPCL refinery is far from residential area transport

facilities from workers quarters is available.

Available customers: Oil refineries need to be within easy reach of customers. It is

essential to have good transport links. Some refineries are pipelines as a method of

transportation.

Air pollution: Although industries are regulated by strict controls regarding the

amount of pollution they release into the atmosphere, oil refineries emit number of

polluting gases. To reduce the effects of air pollution on people, refineries should be

built away from the built-up areas. Care should be also taken to position the refinery so

that prevailing winds do not carry pollution in the direction of towns and cities. One can

see boards specifying height from sea level in entire HPCL refinery area.

Water pollution: Some refineries use water from local rivers and streams for cooling

purposes. This means that the water is pumped out of the river or stream, circulated

around a cooling tower and returned to the river at a higher temperature. This increase

in water temperature is called thermal pollution. Some species of fish are unable to

survive in these conditions. Waste products from refinery may also be washed into local

rivers and streams.

Noise Pollution: Machinery that operates 24 hours a day can HPCLe a lot of noise for

people living nearby. Lorries and trains that come to pick up refined products also

contribute to the noise.


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Special sites of interest: Like other buildings, oil refineries must avoid areas of special

scientific interests. These can include regions where rare animals are being protected.

2.6 FUNCTIONAL GROUPS

HPCL refinery is spread over a very large area. It has many plants within its campusarea. So management of such a big organization becomes very challenging. HPCL has

managed it very well till now by organizing itself into appropriate functional

departments.

The various departments are as under:

Human resource: HPCL HR department has taken number of HR initiatives to HPCLe

the Corporation a great place to work. The Balanced Scorecard tool to set up

performance targets and evaluation, Competency Mapping and Development Centers to

Top view of HPCL refinery, Mahul Mumbai on Google earth


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enhance employee capabilities. Six Sigma for quality improvement have yielded rich

dividends and are being constantly upgraded to higher levels of sophistication. A

significant HR event of the period was the conduct of an International Program on

Emotional Intelligence in association with TISS wherein a large number of professionals

and students participated and appreciated the program.

The Corporation continues to give utmost importance to training by nominating

employees both for in-house and external programs.

HPCL has bagged DMA Erehwon Innovative HR Award because it has successfully

taken an HR idea from concept to reality and has sustained results.

They also got Amity HR Excellence Award for achieving enviable position of one of the

best and most admired companies due to innovative strategies for Human Resource

Management and Development

Finance: The finance function involves keeping record of financial data related to fixed

assets, intangible assets, which forms most important part of a refinery operation.

Additionally it also monitors the construction period expenses on projects occurring on

monthly and quarterly basis and keeps record of other important financial depreciation,

impairment of assets, foreign transactions, investments, inventories, duties on bonded

stocks, Grants provision, exploration and production expenses, employee benefit, sales

of products, research and development., Taxes on income, contingent liabilities and

commitment capitals, accounting, classification of expenditure and income.etc.

Marketing: LPG Marketing in India has traditionally been confined to domestic & non-

domestic consumers in urban/semi urban markets and all efforts till date have been in

meeting the demands of these markets. With the saturation of urban and semi urban

markets and the adequate availability of LPG in India, there is a need to look for

alternative markets. Rural India presents a big opportunity for growth of LPG in India.

HPCL is a major bunker fuel supplier to the ships (vessels) at major Indian ports viz

Calcutta, Haldia, Visakhapatnam, Kakinada, Chennai, Cochin, Mangalore, Goa-Vasco,

Mumbai, Kandla.

HPCL also supplies other petrochemicals like hydrocarbons, lube base oils, tar, petrol,

and diesel, ATF etc. Hence it has very good chain of distributors.


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2.7 PRODUCTION STRATEGY:

A very high priority is attached by the Government of India to conservation of

petroleum products in view of the need to reduce gap between demand of petroleum

products and indigenous supply of crude oil.

Sporadic tension in the Middle East region that is the main source of our oil imports as

well as a heavy import bill is a potent reason for continued emphasis on conservation

and sparing use of petroleum products.

Accordingly, strategic storage of crude oil becomes very important. HPCL, Mumbai

plant has high capacity tanks for storage of crude oil as well as finished products. Every

shipment of raw materials is after 15 days. But continuous production is carried out to

HPCLe-to-stock the products.

HPCL has trying to do backward integration by taking part in exploration and

production process in country and outside country in joint ventures with some of the big

companies. But more emphasize is given to production of high products length which

are kept in stocks.

HPCL, in partnership with consortium, currently has 20 E & P blocks in India and two

overseas, including a service contract for the western offshore marginal fields under

cluster-7 near Mumbai High.

Its upstream JVC Prize Petroleum Company, which was formed in 1998, currently

operates marginal fields in Gujarat and Mumbai High and onshore blocks in Gujarat and

Madhya Pradesh.

HPCL has been participating in the new exploration licensing policys (NELP) fourth

round. During NELP-VI, HPCL participated along with major operators like ONGC,

OIL, GSPC and GAIL.

The Centre has awarded 15 blocks in which HPCLs participation interest ranges from 10

to 20%. The 15 blocks include 11 deepwater ones in Krishna Godavari and Cauvery

basins, two shallow water blocks in Mumbai High and two onshore blocks in Rajasthan.


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2.8 PLANT LAYOUT:

LAYOUT OF HPCL REFINERY, MUMBAIDHPS : De-hydrocarbonaton de-sulphurisation

LR : Lube RefineryCPP : Captive Power PlantGF : Green FuelFR : Fuel RefineryOMS : Oil Management & SupplyQM : Quality managementF&G : Fire and GasTA : Tank AreaLPG : LPG Storage and Supply

DHDS LR

CPP

FR OMS

F & GLPGTA

B

QMGF


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STORAGE AREA OVERVIEW

STORAGE AREA OVERVIEW

GHASLET GHASLET

SOLVENT CRUDE OIL


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2.9 PROCESS LAYOUT:

PROCESSES IN HPCL:

There are many different units in petroleum refineries, for carrying out different

processes like distillation, separation, filteration etc. Depending on the products

produced by the refineries process HPCL layout in a such way that

a) There be very short distance between reactors or units of plant that has to be

followed according to requirement.

b) Less piping and cooling, heating expenses.

c) Pumps, valves and other materials required between successive processesshould be limited and controllable in number.

d) Waiting time for the next process should be minimum.

e) Very little manual labor is required and automation and instrumentation can

be done effectively.

f) Planning and scheduling of specific product can be done accurately and

storage and distribution should be properly maintained.


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2.10 PRODUCTION PLANNING AND SCHEDULING

The main objective of this work is to discuss planning and scheduling applications for

refinery operations in HPCL, Mumbai.

Major Steps Involved In Planning:

STEP 1: Nonlinear planning model for refinery production is developed. The model

represents a general refinery topology and allows the implementation of nonlinear

process models as well as blending relations.

STEP 2: Optimization model is developed considering the market limitations for each oil

derivative usually supplied by the refinery. The optimization model defines all

operating points, thus increasing the production of more valuable products, while

satisfying all specification constraints.

Major Steps Involved In Scheduling:

STEP 1: To overcome scheduling problems in oil refineries mixed integer optimization

models are formulated that rely on both continuous and discrete time representations.

This model takes care of the problem of crude oil inventory management that involves

the optimal operation of crude oil unloading from pipelines, transfer to storage tanks

and the charging schedule for each crude oil distillation unit.

STEP 2: Development and solution of optimization models for short-term scheduling of

a set of operations that includes: product receiving from processing units, storage and

inventory management in intermediate tanks, blending in order to attend oil

specifications and demands, and transport sequencing in oil pipelines.


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2.11 MATERIALS MANAGEMENT

HPCL has emerged a front-runner, in providing excellent services to the

customers, and also delivering state - of - art - products.

Various products of HPCL are as under:

Bitumen: Bitumen is one such product being manufactured and marketed

at HPCL refineries at Mumbai. They produce and market all the three

grades of bitumen viz., 80/100, 60/70 & 30/40. The quality control

measures are observed very stringently, and the bitumen is tested as per

the requirement of the BIS. HPCL has made a foray into newer products

such as rubberized and polymerized bitumen.

Fuels: HPCL produces variety of fuels. Some of them are listed below.

o Petrol (MS), EURO-II, EURO-III

o High Speed Diesel (HSD)

o Furnace Oil (FO)

o Light Diesel Oil (LDO)

o Low Sulphur Heavy Stock (LSHS)

o Naphtha

o Lube base oils

o ATF

Marine Bunker Fuels: The bunker fuels offered are:

o Heavy oil 180 cst (fuel oil: FO)

o Marine diesel oil (light diesel oil: LDO)

o Marine gas oil (high flash diesel: HFHSD)

Marine Lubes: HPCL is the Marine Lube partner of Total Lubricants,

France and manufactures TOTAL brand primary marine Lube grades.

Secondary grades are of HPCL formulations and are certified by TOTAL

as equivalents. Bunker lubes are supplied duty free & duty paid for


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international and coastal - run vessels respectively. ELF marine lubes

offered are:

oAtlanta Marine D3005

o Talusia HR 70

o Disola M 3015 & M 4015

o Aurelia 3030 & 4030

o Aurelia XT 4040 & XT 4055

Special Products: The products include:

o Hexane

o Propylene

o Jute Batch Oil

o Solvent 1425

o Turpentine Oil (MTO 2445)

o Carbon Black Feed Stock (CBFS)

o Molten Sulphur

LPG & ATF: LPG is the very important product produced by HPCL.HP

gas has large customer base and very large distribution network. LPG is

sold at very subsidized rate that is loss for the company. But it recovers

that loss by selling ATF at very high margin.

HYDROCARBONS: HPCL also produces solvents like propane, hexane,benzene, toluene, and many other hydrocarbons, which are separated by

distillation.

LUBE REFINERY OF HPCL


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3 ENTERPRISE RESOURCE PLANNING AT HPCL

To strengthen business management and improve customer service, HPCL

implemented an advanced enterprise resource planning (ERP) system based on

range of JD Edwards Enterprise One application from Oracle.

The ERP system was implemented at more than 430 locations across India from

2003 to 2005, and is used by over 2,000 employees. HPCL is continuously looking

at innovative ways of enhancing customer satisfaction by leveraging technology.

The real time, on-line availability of information from across all the

geographically spread locations of the corporation on a centralized system, has

enabled HPCL to improve efficiencies in the Ares of tracking and monitoring

customer receivables, credit management, inventory management and provide

enhanced service to customers and other stake holders.

Upgrading to an integrated business management platform gave HPCL an

enterprise-wide view of its finance, manufacturing human resources, and sales

and distribution processes. Online access to information ensured managers could

keep track of procurement, inventory, production schedules, and customer

orders.

The company also standardized business practices, ensuring process consistency

across multiple locations. A document archival system is an integral part of the

ERP system, allowing HPCL to store invoices, purchase orders, checks, and other

material. This ensures the company can locate critical documents quickly and

efficiently.


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3.1 BOOSTING SERVICE TO CUSTOMERS AND VENDORS

In keeping with HPCLs aim of enhancing customer satisfaction, the company

designed portals that draw on information gathered by its ERP system to provide

clients with dispatch details, account statements, and a history of sales

transactions completed over the past three years. Customers log in to the portal

using a secure user ID and password. Separate portals for aviation, direct sales,

LPG, and retail customers were established.

HPCL also developed an electronic payment system to promote smoother and

faster payments to its vendors, contractors, transporters, and other service

providers. The system is integrated with the companys banking institution,

enabling payment information to be seamlessly transmitted between the two

organizations and ensuring timely payment to suppliers.

3.2 STREAMLINING DISTRIBUTION WORKFLOWS

HPCL realized another efficiency improvement when it streamlined its

distribution processes and implemented new notification alerts. For example, thecompanys dealers and distributors now receive e-mails and text messages via

their cell phones informing them of impending shipments. This information is

sent to dealers and distributors immediately following the generation of an

invoice, enabling them to keep track of their orders.

3.3 TRAINING ENCOURAGES GREATER USER ACCEPTANCE

A change management program was established to facilitate a smooth transition

to the new system for employees. Comprehensive training was provided to staff

during the implementation, followed by refresher courses post-deployment.

Competency development programs for specific user groups such as regional

managers, finance staff, heads of terminal/depot/LPG plants, sales officers,

project engineers, HR officers and clerical staff are also conducted regularly.


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HPCL organizes virtual training sessions from time to time to allow staff in

remote locations to learn about new system features. This reduces travel time and

cost for participants and enables quick dissemination of new information to

users.

A state-of-the-art data center at HPCLs head office at Mumbai houses powerful

IBM enterprise servers that run the database and applications. The company uses

a virtual private network (VPN), dedicated telephone lines, very small aperture

terminals (VSATs),


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4 QUALITY MANAGEMENT

Quality refers to the sum of the attributes of properties that describe a product.

In petrochemical industry quality is generally expressed in terms of specific

product characteristics such as color, specific gravity, viscosity etc.

HPCL have latest quality control technology that is mandatory for improvement

of refinery throughput, quality and yield.

Its quality control department has been successful in carrying out improvement

in crude oil viscosity, API gravity, and reduction /removal of sulfur, increase

crude distillation yield and overcome other operational problems from time to

time using upgraded technologies in petroleum refineries.

4.1 QUALITY CONTROL & MAINTENANCE

Quality control is achieved in HPCL by following ways:

1) All material supplies are affected from approved suppliers and

manufactures only.

2) All items procured are inspected /tested.

3) Sampling of the products is done thrice a day and analysis at each stage is

carried out. Strict quality control is ensured.

4) Stage wise inspection and certification of jobs by inspectors.

5) In HPCL highly experienced and higly skilled craftsmen handle jobs.

Prequalified and highly skilled Engineers inspect quality departments.

Even refinery workers, welders etc are tested and certified for job.

Maintenance plays a crucial role in the production process in the Refineries /

Petrochemical plants. A plant may be regarded as successful when it operates

without interruptions, which can however be achieved only when its facilities are

in perfect working order at all times. The strategic importance of maintenance

increases with increasing sophistication. The overall objective is to maximizeproduction output at minimum total cost.


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4.2 ASSET INTEGRITY MANAGEMENT (AIM)

This type of program involves world-class standards of inspection andmaintenance of refinery facilities and pipelines to ensure the uninterrupted,

reliable and efficient operation. This program, which utilizes advanced

technologies and methodologies, is vital to minimize the risks and vulnerabilities

of large scale petroleum operations, protect the safety of the workforce and

neighboring population, and to maximize energy security for India. HPCL will

be adopting it in near future.

4.3 HIGH TECH INFRASTRUCTURE AND STRINGENT QUALITY

CONTROL

HP the second largest integrated oil company of India has 40 well spread out

bottling plants and 2 tap off points on Jamnagar Loni LPG pipeline of GAIL with

online automatic quality control equipment ensures total quality checks of

cylinders at bottling plants. These equipments are upgraded from time to time.

4.4 FULLY AUTOMATION

HPCL has adopted a strategy of complex pipelines so as to decrease the idle

times of plants and machineries. It is highly automated. Controlling of process is

done from control rooms of HPCL.

HPCL have 20 electronic carousel of automatic type which fills cylindersautomatically basis. Filling of cylinders are interlocked in the system.

4.5 IMPORT AND STORAGE FACILITIES:

HPCL have LPG storage facility of 65000 tons of LPG bottling plants and import

terminals.

Storage facilities of three types:

1) Above grounds bullets of capacity 50 MT TO 150 MT each.


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2) Spheres of capacity 600 MT TO 1400 MT each.

3) Mounded storage of capacity 200 MT to 1000 MT each.

4.6 QUALITY ASSURANCE

Refinery crude processing is based on crude with all impurities as input. Step by

step it tries to reduce impurities by changing it to less harmful component or

remove after converting to separable component. Processes like desulfurization,

hydrogenation, hydro cracking etc. are used to achieve this.

1) ViscosityViscosity reduction is achieved by removing impurities that contributes to higher

viscosity, which includes polycyclic aromatics.

Reduction of viscosity is carried out using some chemical processing which

enables more rapid and uniform feedstock management, improved heat transfer,

faster mixing and shorter residence time ensuring consistent quality.

2) API GravityAPI gravity is the most frequently used measure to estimate the quality of a

crude oil. It is one of the parameters focused for determining the price of crude

oil, the thickness of oil is reduced and fluidity is increased.

3) SulphurDe-sulphurization unit in HPCL removes sulfur with complex molecules

selectively from crude oil. These are normally high boiling sulfur compounds, i.e.

boiling at 565oC and ends up partly in residue and gas oils. Lower boiling sulfur

compounds are separated and treated. Removal of sulfur from crude is mainly

done in gaseous form.

Quality control and quality assurance both are very important aspects of qualitymanagement in refineries. It helps reduce production cost and increase


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productivity. At the same time quality is the main weapon in competition. HPCL

has high customer loyalty due to its high quality products.


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5 WORK MEASUREMENT

Work measurement is a process of establishing a time that a given task would

take when performed by a qualified worker working at a defined level of

performance.

5.1 WORK MEASUREMENT:

Work measurement is the process of establishing the time that a given task would

take when performed by a qualified worker working at a defined level of

performance.

A qualified worker is one who has acquired the skill, knowledge and otherattributes to carry out the work in hand to satisfactory standards of quantity,

quality and safety

Work measurement also refers to the process of estimating the amount of worker

time required to produce one unit of output.

goal of work measurement is to develop labor standards that can be used

for planning and controlling operations.

5.2 LABOR STANDARDS:

A labor standard is the number of worker-minutes required to complete an

element, operation, or product under ordinary operating conditions.

Labor standards are used in:

Cost estimation

Pricing of products and services

Incentive pay systems

Capacity planning

Production scheduling


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MARKETING.

HPCL understands peoples need as customers and relentlessly work towards

fulfilling them, working consciously towards providing added value in fuel and non-fuel

areas. The Corporation offers products and services that have been designed to meet the

need gaps of its customers. It is not easy as HPCLs customer base is a diverse one

demanding of them to perform better and satisfy the needs of some of their customers

who fly in the air to the larger Indian populace who survive on Kerosene as their

cooking fuel.


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FUELLING AUTOMOTIVES.

Vehicle owners are always on the lookout for new offerings as well for tips &

pointers to keep their vehicles in top shape. HPCL understand their requirements and

have consistently tried to satisfy their needs. Information about all the high-class fuels for

vehicle as well as the lubricants is always updated to keep wheels running smoothly.

OFFERING WORLD CLASS FUELS.

Since 2002, HPCL have introduced new generation branded fuels Speed, Hi

Speed Diesel and Speed 97, being the pioneers to introduce premium fuel brands in the

Country. These specialized products HPCL launched in line with global trends and

keeping pace with the technological advancements in the automobile industry leading to

introduction of new generation vehicles. Speed brand of petrol contains multi-functional

fuel additives that prevent formation of harmful deposits and help clean existing deposits,

thereby improving vehicle performance. SPEED has been the market leader in the

branded fuels category. HPCL has also introduced a high-end Octane 97 variant Speed 97

catering to the requirement of vehicles at the upper end of the tier. To meet the growing

needs of the diesel passenger car segment, HPCL also introduced Hi-Speed Diesel which

is a blend of diesel and world-class multi-functional additive which uses the

internationally renowned Green Burn Combustion Technology. This multi-functional

additive enables the high performance vehicles to deliver their designed outputs by


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removing harmful deposits from all fuel metering systems and components. This also

reduces particle level, black smoke and provides longer engine life.

SERVICING THE CUSTOMERS NEED.

HPCL recognized the customer need for pure quality and correct quantity of

fuel for their vehicles and launched the flagship initiative of Pure For Sure (PFS) offering

the guarantee of pure quality and correct quantity of fuel to our customers. The petrol

pumps displaying a prominent Pure For Sure signage have become landmark

destinations as the movement has gained momentum across our Retail Network.HPCL

now offer a robust and automated network of retail outlets, which leverage technology to

deliver the assurance of quality and quantity promise, ensure integration of payment with

fuelling and improves the service efficiency at the forecourt of the petrol pump.

FOSTERING LOYALTY.

HPCL share rewarding relationships with their customers and building

loyalty has been a centre of focus with them. Recognizing the need of their customers to

HPCLe life more convenient and rewarding and introduced the first loyalty-cum-rewards

program, PetroBonus. Equipped with Smart Card Technology, the Petro Card program

combines convenience in payment along with an inbuilt rewards program that rewards the

customer with Petromiles every time he fuels. A similar program, Smart Fleet was

launched for Fleet Owners. The SmartFleet Programme offers the fleet owner an

unbeatable convenience, security and a host of privileges such as cashless transactions,

vehicle tracking, Credit Option for Fleet Owners and Cash Management System.


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CARING FOR CUSTOMERS VEHICLE NEED.

HPCL also aim to provide service centre facilities through their V-CARE

(Vehicle Care) Centres across the urban network. The V-Care Centres provide customers

with reliable, transparent and value for money services for the basic vehicle care needs.

HPCL have tie ups with Hero Honda and General Motors for being their authorized After

Sales Service Centres apart from the other brands of cars and two-wheelers. With

HPCLS reach to the nook & corner of the country they are always near to their

customers.

PARTNERING HIGHWAY JOURNEY.

On the highways, HPCL offer a home away from home to the truckers and

the tourists in the form of the GenerationNext OSTSs/OSTTSs (One Stop Truck cum

Tourist Shop) branded as GHAR. These outlets are built on a minimum of 3 to 5 acres

plot sizes and house dedicated and fully automated MS/HSD petrol/ diesel Fuelling

facilities to fuel all kinds and sizes of vehicles besides the specially designed offerings for

the highway travelers, that include a Food Court for Tourists and a Dhaba for truckers, a

dormitory with beds, a Safe, Secured and Spacious parking for trucks and cars, a vehicle

wash facility, Saloon, Laundry and Tailor shop, a Kirana shop, Bathing facilities,

dedicated toilets for Truckers and dedicated toilets for Tourists (Gents, Ladies &

Handicapped),Childrens Play area, Amphitheatre for entertainment, Health care centre,

Smartfleet Customer service centre ,Sanjha Chula for self cooking and captive power

generation. Assuring a network of outlets on the highway shows our commitment to serve

our highway customers with as much care as in the key cities.


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

With the menace of rising vehicular pollution, use of LPG as an auto fuel

was proposed as a pollution abatement measure. LPG being a clean environmentally

friendly fuel, will reduce air pollution to a great extent if the vehicles are fuelled with

LPG.HPCL was the first Oil Company to take the initiative for setting up of an Auto LPG

Dispensing Station (ALDS) and run vehicles on LPG as a pilot project in Delhi in

October 1999.HPCL today have over 70 Auto LPG Dispensing Stations (ALDS) in

various cities (including metros) in the country.

BRAND MANAGEMENT.

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

dominant brands. The Brand Management team atHPCL endeavours to build and manage

a strong brand image reflectingHPCL's core values of being 'INCARE',viz. INnovative,

CAring and REliable. Emphasis is laid on continuously understanding customer

behaviour, tracking their changing needs and expectations, and meeting these needs in the

most cost-effective manner.

STRATEGY DEVELOPMENT.

HPCL recognises that all strategic initiatives must conform to the overall

vision of the Corporation and improve the economic value. The Strategy Development

effort at the corporate level achieves better focus in the new organisational structure,


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besides facilitating the SBUs in developing their respective strategies that lead to an

integrated Corporate Strategy. A Business Planning process has been put in place that not

only provides opportunities for the SBUs to pursue their visionary goals in consonance

with the Corporate Vision, but also continuously monitors trends and identifies strategic

opportunities for the Corporation.


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1.2. B.BRIEF ABOUT THE COMPETITORS.

THE FOLLOWING ARE THE TOP FIVE COMPETITORS OF

BHARAT PETROLEUM CORPORATTION LIMITED:

INDIAN OIL CORPORATION LIMITED.

Indian Oil Corporation is an Indian public-sector petroleum

company. It is Indias largest commercial enterprise, ranking 116th on the

Fortune Global 500 listing (2008). It began operation in 1959 as Indian Oil

Company Ltd. The Indian Oil Corporation was formed in 1964, with the

merger of Indian Refineries Ltd. Indian Oil and its subsidiaries account for a

47% share in the petroleum products market, 40% share in refining capacity

and 67% downstream sector pipelines capacity in India. The Indian Oil

Group of Companies owns and operates 10 of India's 19 refineries with a

combined refining capacity of 60.2 million metric tons per year. On 30th

June 2009 Indian Oil will complete 50 years of its existence and a series of

events are being planned to celebrate its Golden Jubilee Year.

Overview Indian Oil operates the largest and the widest network of

fuel stations in the country, numbering about 17606 (15557 regular ROs &

2049 Kissan Sewa Kendra). It has also started Auto LPG Dispensing

Stations (ALDS). It reaches Indane cooking gas to over 47.5 million

households through a network of 4,990 Indian distributors. In addition,

Indian Oil's Research and Development Centre (R&D) at Faridabad

supports, develops and provides the necessary technology solutions to the

operating divisions of the corporation and its customers within the country

and abroad. Subsequently, Indian Oil Technologies Limited - a wholly

owned subsidiary, was set up in 2003, with a vision to market the

technologies developed at Indian Oils Research and Development Centre. It


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29

has been modelled on the R&D marketing arms of Royal Dutch Shell and

British Petroleum.

HINDUSTAN PETROLEUM CORPORATION LIMITED.

HPCL (Hindustan Petroleum Corporation Limited) is a Fortune

500 company, with an annual turnover of over Rs 1,03,837 Crores ($ 25,142

Millions) during FY 2007-08, 16% Refining & Marketing share in India and

a strong market infrastructure. Corresponding figures for FY 2006-07 are: Rs

91,448 crores ($20,892 Million).

The Corporation operates 2 major refineries producing a wide

variety of petroleum fuels & specialties, one in Mumbai (West Coast) of 5.5

MMTPA capacity and the other in Vishakhapatnam, (East Coast) with a

capacity of 7.5 MMTPA. HPCL holds an equity stake of 16.95% in

Mangalore Refinery & Petrochemicals Limited, a state-of-the-art refinery at

Mangalore with a capacity of 9 MMTPA. In addition, HPCL is progressing

towards setting up of a refinery in the state of Punjab in the joint sector.

HPCL also owns and operates the largest Lube Refinery in the

country producing Lube Base Oils of international standards. With a

capacity of 335 TMT. This Lube Refinery accounts for over 40% of the

India's total Lube Base Oil production.

The vast marketing network of the Corporation consists of Zonal

offices in major cities and over 91 Regional offices facilitated by a Supply &

Distribution infrastructure comprising Terminals, Aviation Service Stations,

LPG Bottling Plants, and Inland Relay Depots & Retail Outlets. The

Corporation over the years has moved from strength to strength on all fronts.

The refining capacity steadily increased from 5.5 million tonnes in 1984/85


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30

to 13.70 million metric tonnes (MMT) presently. On the financial front, the

turnover grew from Rs. 2687 crores in 1984-85 to an impressive Rs 1,03,837

Crores in FY 2007-08. HPCL also owns and operates the countrys largestLube Refinery, producing Lube Base Oils of international standards. With a

capacity of 335,000 Metric Tonnes. This refinery accounts for over 40% of

the countrys total Lube Base Oil production.

The vast marketing network of the Corporation consists of Zonal

offices in the 4 metro cities and over 85 Regional offices facilitated by a

Supply & Distribution infrastructure comprising Terminals, Aviation Service

Stations, LPG Bottling Plants, and Inland Relay Depots & Retail Outlets.

RELIANCE INDUSTRIES LIMITED.

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

private sector conglomerate (and second largest overall) with an annual

turnover of US$ 35.9 billion and profit of US$ 4.85 billion for the fiscal year

ending in March 2008 HPCLing it one of India's private sector Fortune

Global 500 companies, being ranked at 206th position (2008). It was

founded by the Indian industrialist Dhirubhai Ambani in 1966. Ambani has

been a pioneer in introducing financial instruments like fully convertible

debentures to the Indian stock markets. Ambani was one of the first

entrepreneurs to draw retail investors to the stock markets. Critics allege that

the rise of Reliance Industries to the top slot in terms of market capitalization

is largely due to Dhirubhai's ability to manipulate the levers of a controlled

economy to his advantage. Though the company's oil-related operations form

the core of its business, it has diversified its operations in recent years. After

severe differences between the founder's two sons, Mukesh Ambani and Anil

Ambani, the group was divided between them in 2006. In September 2008,


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31

Reliance Industries was the only Indian firm featured in the Forbes's list of

"world's 100 most respected companies".

CHENNAI PETROLEUM CORPORATION LIMITED.

Chennai Petroleum Corporation Limited (CPCL), formerly known

as Madras Refineries Limited (MRL) was formed as a joint venture in 1965

between the Government of India (GOI),AMOCO and National Iranian Oil

Company (NIOC) having a share holding in the ratio 74%: 13%: 13%

respectively. From the grassroots stage CPCL Refinery was set up with aninstalled capacity of 2.5 Million Tonnes Per Annum (MMTPA) in a record

time of 27 months at a cost of Rs. 43 crore without any time or cost over run.

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

percentage of GOI and NIOC stood revised at 84.62% and 15.38%

respectively. Later GOI disinvested 16.92% of the paid up capital in favour

of Unit Trust of India, Mutual Funds, Insurance Companies and Banks on 19

May 1992, thereby reducing its holding to 67.7 %. The public issue of CPCL

shares at a premium of Rs. 70 (Rs. 90 to FIIs) in 1994 was over subscribed to

an extent of 27 times and added a large shareholder base of over 90000.As a

part of the restructuring steps taken up by the Government of India, Indian

Oil Corporation Limited (IOCL) acquired equity from GOI in 2000-01

Currently IOC holds 51.88% while NIOC continued its holding at 15.40%.

In view of the CPCL become subsidiary of IOCL in 2001. The Manali

Refinery has a capacity of 9.5 MMTPA and is one of the most complex

refineries in India with Fuel, Lube, Wax and Petrochemical feedstock

production facilities. CPCL is also the company where NRI businessman

Mr.C.Sivasankaran worked as a fabrication contractor.

MANAGLORE REFINERY AND PETROCHEMICALS LIMITED.


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Mangalore Refinery and Petrochemicals Limited (MRPL), located at

Katipalla, north from centre of Mangalore city, is a state-of-the-art Grass

root Refinery at Mangalore and is a subsidiary of ONGC, set up in 1998.Therefinery was established after displacing five villages of Bala, Kalavar,

Kuthetoor, Katipalla, and Adyapadi.

The refinery has a versatile design with high flexibility to process

crudes of various API and with high degree of automation. MRPL has a

design capacity to process 9.69 million metric tonnes per annum and is the

only refinery in India to have two hydrocrackers producing premium diesel

(high cetane). It is also the only refinery in India to have two CCRs

producing unleaded petrol of high octane. Currently, the refinery is

processing about 12.5 million tonnes of crude per year and had a turnover of

US$ 8 billion during last year.

MRPL, which was a joint sector company, become a PSU subsequent

on acquisition of its majority shares by ONGC. As on 1 April 2007, 71.62%

shares are held by ONGC, 16.95% shares are held by HPCL and remaining

shares are with public and financial institutions. MRPL has also been

declared as Miniratna, a mini jewel, by Government of India in 2007.

Before acquisition by ONGC in March 2003, MRPL was a joint

venture oil refinery promoted by M/s Hindustan Petroleum Corporation

Limited (HPCL), a public sector company and M/s IRIL & associates (AV

Birla Group). MRPL was set up in 1988 with the initial processing capacity

of 3.0 million metric tonnes per annum that was later expanded to the present

capacity of 9.69 million metric tonnes per annum.

The refinery was conceived to maximise middle distillates, with

capability to process light to heavy and sour to sweet crudes with 24 to 46


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API gravity. On 28 March 2003, ONGC acquired the total shareholding of

A.V. Birla Group and further infused equity capital of Rs.600 crores thus

HPCLing MRPL a majority-held subsidiary of ONGC. The lenders alsoagreed to the debt restructuring package (DRP) proposed by ONGC, which

included, inter alia, conversion up to Rs 365 core of their loans into equity.

Subsequently, ONGC has acquired equity allotted to the lenders pursuant to

DRP raising ONGCs holding in MRPL to 71.62 percent.


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34

OBJ ECTIVE OF THE STUDY.

THE OBJECTIVE OF THE STUDY FOR INDUTRIESARE TO FIND OUT:

THE RELEVENCE OF LUBRICANTS USED IN ACCORDANCEWITH THE PRODUCT THAT IS BEING MANUFACTURED INRESPECTIVE INDUSTRY.

CONSUMPTION OF LUBRICANTS IN INDUSTRIES BASED ONPREFERENCES, PRIORITY AND INDIVIDUALITY.

REQUIREMENT ON LUBRICANTS IN SPONGE IRON, STEELAND ANCIALLARY INDUSTRIES.

CONSUMPTION OF LUBRICANTS ACCORDING TO THEIRVISCOSITY GRADES.


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THE OBJECTIVE OF THE STUDY FOR

RETAIL(BAZAAR) MARKET ARE TO FIND OUT:

THE BRANDS WHICH ARE BEING SOLD IN THE MARKET OFTHE ABOVE MENTIONED DISTRICTS.

THE CATEGORY OF LUBRICANT IS HAVING WHICH ISHAVING MAXIMUM SALES.

THE AWARENESS OF HPCLLUBRICANT AMONGRETAILERS AND CONSUMERS.

THE PARAMETERS ON WHICH THE RETAILRES DECIDE FORKEEPING A PARTICULAR BRAND OF LUBRICANT FORSELLING.

THE MAXIMUM SELLING PACK SIZES SOLD IN BO TH THEDISTRICTS.


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2.2. SCOPES AND LIMITATIONS OF THE STUDY.

SCOPES OF THE STUDY.

THE STUDY COVERS ALL THE SPONGE IRON,STEEL ANDANCIALLARY INDUSTRIES AS WELL AS ALL THERETAILERS IN ANGUL AND DHANKANAL DISTRICT.

THIS STUDY COVERS THE OPPORTUNITY ANALYSIS OFHPCLLUBRICANT OF BHARAT PETROLEUM IN SPONGEIRON, STEEL AND ANCIALLARY INDUSTRIES AS WELLAS IN RETAIL MARKET.

THE STUDY ALSO COVERS ANALYSIS OF INDUSTRIESREQUIREMENT AND CONSUMPTION OF LUBRICANTS ININDUSTRIES AS WELL AS AWARENESS, PERCEPTIONAND CONSUMPTION OF LUBRICANTS BY COMMON END-USERS THROUGH RETAILERS.

THE SURVEY HAS PROVIDED THE COMPANY WITHMUCH NEW LUBRICANT RELATED INFORMATION OFINDUSTRIES AND OTHER BUSINESS CONTACTS WHOMIGHT BE POTENTIAL CUSTOMERS OF BHARATPETROLEUM CORPORATION LIMITED.

THIS SURVEY ALSO PROVIDES AN INSIGHT ABOUT THEPRIORITIZATION FACTORS OF THE INDUSTRIES ANDRETAILERS FOR COMSUMING AND SELLING DECISIONRESPECTIVELY.

FOR RETAIL MARKET THE SURVEY HAS ALSOPROVIDED THE COMPANY THE NUMBER OFDISTRIBUTORS IN EVERY BLOCK AS WELL AS THE

DEMAND OF THE CUSTOMERS IN THOSE BLOCKS.


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LIMITATIONS OF THE STUDY.

LACK OF INTEREST AND ENTHUSIASTIC RESPONSESMAY HAVE ALLOWED BIASES IN THIS REPORT IN THEFORM OF NON-RESPONSIVEERROR.

CORRECTNESS OF THIS REPORT IS RESTRICTED ANDLIMITE DBY THE DEGREE OF AUTHENTICITY OF DATA

COLLECTED AND SINCERITY AND HONESTY OFRESPONDENTS.

AREA OF STUDY IS RESTRICTED TO ANGUL ANDDHENKANAL DISTRICT OF ORISSA ONLY WHICH IS AMAJOR LIMITATION.THE NATIONAL SCENARIO MAY BETOTALLY DIFFERENT FROM THE RESULTS OF THEABOVE MENTIONED AREAS.

---------------------------------------------------------------------


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2.3. RESEARCH METHODOLGY.

METHODOLOGY and APPROACH.

The study was qualitative in nature based on industrial and retailerconsumption and stock keeping units decision respectively. Field researchwas carried out for the survey both for the case of industries and retailers.For industries the study was DESCRIPTIVE in nature where as for retailers

it was EXPLORATORY.

DATA SOURCEPrimary data source as new facts and figures are beingcollected from the project.

SAMPLING PLAN.

The main target area for the purpose of collecting the sample forthe study was ANGUL and DHENKANAL where the main target populationwas SPONGE IRON STEEL & ANILLARY INDUSTRIES and RETAILSHOPS selling lubricants to consumers and end-users. FinallyPROBABLISTIC CLUSTERED sampling was done since every industry

and retailers had an equal chance of being selected.

RESEARCH INSTRUMENT.

Separate questionnaires were being prepared both for industry andretailers where each consisted OPEN-ENDED, CLOSE-ENDED,CHECKLISTS and STRAIGHT-FORWARD TYPE QUESTIONS. Themode of collecting the data was basically interview-administered and face toface conversations for both industry and retailers.


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2.4. DATA ANALYSIS.

2.4. A. INDUSRTY (BUSINESS TO BUSINESS)

The project perambulates round the requirements oflubricants in sponge iron steel and ancillary industries. The main purpose ofthe study was to find out the requirements of various types of lubricants such

as mainly HYDRAULIC OIL, GEAR OIL, GREASES, TURBINE OILS,TRANSFORMER OIL and other various types of oil. Through this analysiswe were also able to find the priority of parameters which helps in HPCLingan industrys decision of buying lubricants from a particular company,distributor or from any other source of supply. Other factors that we were

being measured through this study were like that of performance levelmonitoring, average monthly consumption of industries for lubricants. Thesample for the study of the above mentioned parameters were about 41industries both fromANGUL andDHENKANAL.

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

MONTHLY CONSUMPTION OF INDUSTRIES.

The monthly consumption of lubricants varied from industry to industrydepending on the size of the industries i.e. large, medium and small scaleindustries. The following graph shows the consumption rate of industriescumulative of both the districts:


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MOST CONSUMED BRANDS IN INDUSTRIES.

It is found that IOCLs lubricant brand SERVO has the high frequency ofconsumption when analysis is done on cumulative basis of both the districts.CASTROL comes second but this is only due to the fact that it is beingconsumed only in small scale industries like stone crushers and that too in avery small quantity (the above graphs best gives the representation).BothBPCL and HPCL too have good proportion of market share of lubricants inindustries as per the frequency obtained from the analysis.

0

2000

4000

6000

80005250

7770

4810

1725

69206140

1575215 718

541945104620

25201887

4205

1728672

TOTAL MONTHLY CONSUMPTION FOR

DHENKANAL(1).

0

2000

4000

6000

8000

10000

12000

28441140

2614

12000

25 70 85 75 80

6960

64 95 90 88 70 72

10180

TOTAL MONTHLY CONSUMPTION FOR

DHENKANAL(2).


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42

FREQUENCY OF MOST CONSUMED BRANDS IN BOTH THE

DISTRICTS.

The results were the same when individual district wise frequency analysiswas done. For Angul, IOCL still topped the market of industries with HPCLand BPCL coming to second and third position respectively.

CONTD.........

0

5

10

15

20

25

IOCL

BPCL

HPCL

OTHERS

BALMEROL

CASTROL

FRQUENCY OF BRANDS CONSUMED IN INDUSTRIES IN BOTH

DISTRICTS.

22

7

10 11

6

12

0

1

2

3

4

5

6

IOCL BPCL HPCL OTHERS BALMEROL

FRQUENCY OF BRANDS CONSUMED IN INDUSTRIES IN ANGUL.

6

3

4

6

3


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In DHENKANAL, it is evident that CASTROL has a good portion of themarket share but it is due to the fact that most of its frequency is comingfrom that of in small scale industries like stone crushers. Here also IOCLhave the majority of the frequency.

PARAMETERS WHICH DECIDES TO BUY LUBRICANTS.

From the research it was found that out of 41 industries(bothsmall and large scale) 27buy their required portion of lubricants on the basisofPRICEfactor, similarly 23 does the same on SERVICEwhereas 11 and 13are forRECOMMENDATION and OTHERS respectively. The parameterOTHER includes sub-parameters like that of QUALITY, SATISFACTION

etc.

The given graphical representation gives the best over view ofthe parameters on which all the industries in ANGUL and DHENKANALdecide their process of buying lubricants as for the purposes of consumptionsand requirements:

0

2

4

6

810

12

14

16

IOCL

BPCL

HPCL

OTHERS

BALMEROL

CASTROL

FRQUENCY OF BRANDS CONSUMED IN INDUSTRIES IN

DHENKANAL.

16

4

65

3

12


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44

So, finally it can be concluding that most of the industries(irrespective of their size-large, medium, small scale) mainly put emphasis onPRICE and SERVICE as their primary and RECOMMENDATION andOTHER factors as their secondary priority.

For district wise analysis of the parameters for buying lubricants, itwas found that most of the industries irrespective of their size mostly hadPRICE, SERVICE and OTHER (SATISFACTION, QUALITY) as their

primary priority and RECOMMENDATION as secondary priority. Thismentioned prioritizations of parameters were found for ANGUL district. Thefollowing graph gives the best view of the parameters that the industries inANGUL on an average takes for buying lubricants for the purpose ofconsumption and requirements of lubricants in their respective industries:

0

10

20

30

PRICE.

SERVICE.

RECOMMENDATION.

OTHER.

PARAMETERS .

27

23

1113


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PARAMETERS FOR INDUSTRIES IN ANGUL.

In case of industries in DHENKANAL district the scenario is a bit differentthan that off ANGUL district. Here the industries have a different priority incase of buying lubricants for their industries.

PARAMETERS FOR INDUSTRIES IN DHENKANAL

From the above graph only it is quite clear that PRICE comes asfirst priority followed by SERVICE,RECOMMENDATION and OTHER as

second ,third and last priority respectively for industries as for theconsumption of lubricants.

PRICE.

SERVICE.

RECOMMENDATION.

OTHER.

PARAMETERS .

9 9

1

9

PRICE.

SERVICE.

RECOM

MENDATION.

OTHER.

PARAMETERS .

18

14

10

4


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SOURCE OF LUBRICANTS.

On a total of the two districts it was found that on an average mostof the industries get their portion of supplies from distributors, While themajor half of the remaining portion get s from direct companies and theremaining small portion from other sources irrespective of distributors anddirect company.

The given graph best explains the process of sourcing lubricants by

the industries in both the districts:

Out off all the industries in both the district 33 gets their portion oflubricants from distributors whereas 12 and 2 gets from direct company andother sources respectively.

On a district wise analysis of sourcing of lubricants on average,it wasmore or less same for the industries in both the districts,depending on thetotal number of industries in each district(DHENKANAL have moreindustries as compared to that of ANGUL). The former graph expalins thesourcing of lubricants by industries in ANGUL district whereas the later

GRAPH shows that of DHENKANAL district:

12

33

2

SOURCES. COMPANY. SOURCES. DISTRIBUTOR SOURCES. OTHER.


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47

SOURCING OF LUBRICANTS BY INDUSTRIES IN ANGUL.

SOURCING OF LUBRICANTS BY INDUSTRIES IN DHANKANAL.

PERFORMANCE LEVEL MONITORING.

From the analysis of the performance level monitoring it was quite vivid that

majority of the industries of both the districts never measures anyperformance level of lubricants in their respective industries after

5

11

1


7

22

1



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consumption. It was clear that only 17 out of all the industries in bothdistricts measures the level of performance of lubricants, whereas as amajority of 22 never measures and only a mere 4 out of all measure

performance at times. The under given graph gives the clear picture ofmeasurement of lubricants by all the industries in both the district:

PERFORMANCE LEVEL MONITORING.

But the scenario for the same was very significantly different whenanalysis was being made on the district level. The industries in ANGULcame out to be more aware of the monitoring performance level of lubricantswhere as for DHENKANAL the result shows no process of monitoring

performance level. Out of all the industries in ANGUL almost 11 do monitorperformance level of lubricants and 2 never does, whereas in DHENKANAL

only 5 industries of the total do monitor but a majority of 19 of the total doesnot monitor and only a mere 9 of the total monitor performance level but thattoo at times and not on regular basis. The following graphical representation

best gives the view of performance level monitoring in both the districtsseparately.

16

21

4

0

5

10

15

20

25

YES. NO. AT TIMES

PERFM LEVEL CHECKED.


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49

PERFORMANCE MONITORING OF INDUSTRIES IN ANGUL.

11

2

0

0

2

4

6

8

10

12

YES. NO. AT TIMES


5

19

9

0

2

4

6

8

10

12

14

16

18

20

YES. NO. AT TIMES



50/80


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2.4. B.RETAIL MARKET (BAZAAR).

The project perambulates round the bazaar potential assessment oflubricant for ANGUL and DHENKANL district. It was being assigned tocarry out a survey of all the retailers in the two districts; to begin with I haveclassified the ANGUL district into eight BLOCKS /TEHSIL andDHENKANAL into nine BLOCK/TEHSIL.There were 78 and 56 retailers in

both ANGUL and DHENKANAL district respectively. The analysis is basedon certain parameters and the survey was carried out through questionnaire,(being the medium of exploration).

The total quantity of lubricant sold in ANGUL district is62580 litres whereas the total for the same was 44725 litres inDHENKANAL district. This further counts for an average of 813litres of lubricants products for retailers in ANGUL whereas theaverage sales of retailers in DHENAKANL are about 799 litres.

HIGEST SELLING BRANDS.

FOR BOTH THE DISTRICTS.

The analysis clearly shows that CASTROL is the highest selling brand

in all the markets of the two districts. Similarly SERVO comes secondfollowed by HPCL as third and VEEDOL as fourth.PENSOL too have a

100108

12

59

4439

26 2831

15

43

516

510

76

0

20

40

60

80

100

120

SERVO.

CASTR

OL.

M

AK.

HP

CL.

VEED

OL.

E

LF.

SHE

LL.

GULF

VALVOLINE

MANG

OL.

PENS

OL.

M

EF

BHAR

AT.

SONACHI

S

KF.

OTH

ER.

TYPES OF LUBRICANT BRANDS SOLD BY THE RETAILERS.


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52

good portion market potential despite being a local brand.Various other localbrands also have a good market composition.

On comparing the figures districtwise also the results were same asabove.The folloowing are the graphs of retailers for both ANGUL nadDHANKANAL district:

FOR ANGUL DISTRICT.

6164

4

31

21 2116

23

10

2

30

2

8

0 1

38

0

10

20

30

40

50

60

70

SERVO.

CASTROL.

MAK.

HPCL.

VEEDOL.

ELF.

SHELL.

GULF

VALVOLINE

MANGOL.

PENSOL.

MEF

BHARAT.

SONACHI

SKF.

OTHER.


36

40

8

2422

16

74

19

11 12

3

85

8

35

0

5

10

15

20

25

30

35

40

45

SERVO.

CASTROL.

MAK.

HPCL.

VEEDOL.

ELF.

SHELL.

GULF

VALVOLINE

MANGOL.

PENSOL.

MEF

BHARAT.

SONACHI

SKF.

OTHER.



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53

FOR DHENKANAL DISTRICT.

MAXIMUM SELLING CATEGORY.

The graph under given, gives a brief idea about the maximum sellinglubricant category in both the districts:

The above graph clearly demonstrates that 2-wheeler lubricantproducts are the maximum selling product category for lubricants in both the

districts.Out off all the retailers in both the district it is clear that 81 of thetotal are maximum selling 2-wh lubricant produtcs.2-wh lubricant productsare then followed by diesel products counting to 64,which is due to the factthat both ANGUL nad DHENAKANL are industrial areas with a hugeamount of heavy vehicles movement.Then comes the category of 4-wheelersamounting to 59 out of all the retailers.This scenario is same for both thedistricts when analysis is being made on district wise,where for ANGUL40,39,37,1,1 are for 2-wh,diesel,4-wh,coolant and grease respectively and38,22,19,0,0 for 2-wh,diesel,4-wh,coolant,grease respectively in

DHENKANAL .

81

59

64

11

MAX SELLING PRODUCT CATEGORY. 2-WH.

MAX SELLING PRODUCT CATEGORY. 4-WH

MAX SELLING PRODUCT CATEGORY. DIESEL

MAX SELLING PRODUCT CATEGORY. COOLANT

MAX SELLING PRODUCT CATEGORY. GREASE


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The following graphs give the vivid picture of the

maximum selling product of lubricants in both the districts when analysis isbeing made district wise:

MAXIMUM SELLING PRODUCT CATEGORY IN ANGUL.

40

37

39

1 1







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MAXIMUM SELLING PRODUCT CATEGORY FOR DHENKANAL.

MAXIMUM SELLING PACK SIZES.

Here we are having different category of pack sizes they are 0-1 litre, 1-5litre, 7-20 litre, Barrels.

MAXIMUM SELLING PACK SIZES FOR BOTH THE DISTRICT.

38

19

2200






1 LT. 1-5LT. 7-20LT. BARREL.

MOST SOLD PACK SIZES.

Series1 56 55 62 1

0

10

20

30

40

50

60

70


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56

By doing this analysis we can conclude that the highest sellingpack size of lubricant in both the districts is 7-20 litres, whereas under 1 litrepack is second and 1-5 litre pack is third in maximum selling pack sizes.

While doing the analysis on district level, the results are quitedifferent. For ANGUL 7-20 litre pack are still the majority selling pack sizeswhereas uder 1 litre and 1-5 litre packs are coming together in second

position and finally barrel with nominal sales. In case of DHENAKANLdistrict packs of under-1 litre is maximum selling and 1-5 litres and 7-20litres are second and third higest selling category respectively with 42 and 20

points.

The following graphs are for maximum selling pack sizes for both thedistricts individually:

MAXIMUM SELLING PACK SIZES FOR ANGUL.



Series1 28 28 39 1

0

5

10

15

20

25

30

35

40

45


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MAXIMUM SELLING PACK SIZES FOR DHENAKANL.

PARAMETERS FOR SELECTING A BRAND FOR SELLING.

Here we are having several parameters that are preferred by theretailers while they keep the brand in their counters. The parameters arePrice or MRP of the product, Profitability or Margin that is given by thecompany to the retailers, Market demand of the product, Payment term of thecompany to the retailers, Scheme or incentives that are given to the retailersfor selling their brands and at the last but not the least quality of the product.



Series1 27 24 20 0

0

5

10

15

20

25

30


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58

PARAMETERS FOR SELECTING A BRAND FOR SELLING .

From the above diagram only is clear that demand is the mostimportant parameter which decides for a reatiler to keep a brand for the

purpose of selling to their customer.After demand its margin that comessecond and wuality as third parameter for the retailers.The scenario is samefor the two districts when analysis is being done on individual district level.

The following are the graph represents the individual district wiseparameter selection of brands for retailers:

020406080

100120140

PRICE/M.R.P.

MARGIN.

DEMAND.

PYMT/CREDIT.

SCHMES/INCENTIVE.

QUALITY

SATISFACTION.


4

76

123

166

56

10


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59

ANGUL

DHENKANAL.

010203040

50607080

PRICE/M.R.P.

MARGIN.

DEMAND.

PYMT/CREDIT.

SCHMES/INCENTIVE.

QUALITY

SATISFACTION.


4

35

73

144

23

2

0

5

10

15

20

25

30

35

40

45

50

PRICE/

M.R.P.

MARGI

N.

DEMAN

D.

PYMT/C

REDIT.

SCHME

S/INCE

NTIVE.

QUALIT

Y

SATISFA

CTION.

PARAMETERS FOR SELECTING A BRAND FOR SELLING.Series1 0 37 47 2 2 30 8


60/80

60

LUBRICANT BRANDS MOST SOLD BY THE RETAILERS.

FOR BANARPAL.

For Banarpal, the scenario is same as that of Angul where diesel vehicleproducts are the maximum selling lube products resulting the sale of 7-20litre pack sizes, but in this market SERVO is the market leader in lubes.

6

7

0

4

1

3

2

4

1

0

3

0 0 0 0

2

0

1

2

3

4

5

6

7

8

SERVO.

CASTROL.

MAK.

HPCL.

VEEDOL.

ELF.

SHELL.

GULF

V

ALVOLINE

MANGOL.

PENSOL.

MEF

BHARAT.

SONACHI

SKF.

OTHER.


1

36

00







61/80

61

MAX SELLING PRODUCT CATEGORY.



0

0.5

11.5

2

2.5

3

3.5

4

4.5

5



1

3

5

0

01234567

PRICE/M

.R.P.

MARGIN.

DEM

AND.

PYMT/CR

EDIT.

SCHMES/INCEN

TIVE.

QU

ALITY

SATISFACTION.


0

2

7

1 10 0


62/80

62


FOR ANGUL BLOCK.

Angul block is the most interesting block where both 2-wh and dieselvehicle products are the maximum selling lubes products and resulting to thesales of 1-5 litres as the most sold. In this market both CASTROL andSERVO are the market leaders.

9

7

0

2 2 2

3

2

0 0

7

0 0 0 0

5

0

1

2

3

4

5

6

7

8

9

10

SERVO.

CA

STROL.

MAK.

HPCL.

V

EEDOL.

ELF.

SHELL.

GULF

VAL

VOLINE

MANGOL.

P

ENSOL.

MEF

B

HARAT.

SONACHI

SKF.

OTHER.



63/80


64/80

64



For other markets like that of KISHORENAGAR and PALALAHADA are

too small to perform the above analysis. The market potential are also toolow here.

02468

1012141618

PRICE/M.R.P.

MARGIN.

DEMAND.

PYMT/CREDIT.

SCHMES/INCENTIVE.

QUALITY

SATISFACTION.


3

12

17

4

1

8

0

17 17

0

7

1112

4

7

4

1

8

23

0 0

8

0

2

4

6

8

10

12

14

16

18

SERVO.

CASTROL.

MAK.

HPCL.

VEEDOL.

ELF.

SHELL.

GULF

VALVOLINE

MANGOL.

PENSOL.

MEF

BHARAT.

SONACHI

SKF.

OTHER.



65/80

65

DHANKANAL

For DHENKAANL to the district was divided into 9 blocksnamely as HINDOL, ODAPADA, SADAR, DHENKANAL,KAHPCLHYANAGAR, BHUBAN, PARAJANG, KANKADAHAD andGANDIA.

FOR DHENKANAL.

In DHENKANAL also diesel vehicle lubes product are the most sellingresulting further in the maximum sales of 1-5 litre pack sizes. Demandremains the main parameter for selecting a brand by the retailers for selling.Both SERVO and CASTROL are the MAXIMUM SOLD BRANDS. Theunder given graphs best shows the analysis:


7

6

8

00







66/80

66



0

1

2

3

4

5

6

7

8

9



4

9

7

0

0

2

4

6

8

10

12

PRICE/M.R.P.

MARGIN.

DEMAND.

PYMT/CREDIT.

SCHMES/INCENTIVE.

QUALITY

SATISFACTION.


0

8

12

01

8

3


67/80

67


FOR KAHPCLHYANAGAR.

In the market of kamkhyanagar, it is found that 2-wheel lubes product aremaximum selling which results in the maximum sales of 1 litre packs.Castrol is the mostly sold brand among the shops in kaHPCLhyanagar.

8 8

45

4 4

21

6

34

1

3 32

12

0

2

4

6

8

10

12

14

SERVO.

CASTROL.

MAK.

HPCL.

VEEDOL.

ELF.

SHELL.

GULF

VALVOLINE

MANGOL.

PENSOL.

MEF

BHARAT.

SONACHI

SKF.

OTHER.


93

400







68/80

68




0

1

2

3

4

5

6

7

8



8

5

2

0

01234567

PRICE/M.R.P.

MARGIN.

DEMAND.

P

YMT/CREDIT.

SCHME

S/INCENTIVE.

QUALITY

SATISFACTION.


0

5

7

0 0

6

1


69/80

69


FOR SADAR.

For SADAR market too the highest selling lubes product type is 2-wheelbut the maximum sold pack sizes are that of 7-20 litres.Demand still remainsthe major priority for retailers in selecting a brand for sales.Servo is themarket leader in this area.

910

1

7

4

21

0

3

1 10

10

1

6

0

2

4

6

8

10

12

SERVO.

CASTROL.

MAK.

HPCL.

VEEDOL.

ELF.

SHELL.

GULF

VALVOLINE

MANGOL.

PENSOL.

MEF

BHARAT.

SONACHI

SKF.

OTHER.


5

3

400







70/80

70




0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

5



4

2

5

0

01234567

PRICE/M.R.P.

MARGIN.

DEMAND.

PYMT/CREDIT.

SCHMES/IN

CENTIVE.

QUALITY

SATIS

FACTION.


0

67

2

0

2 2


71/80

71


FOR HINDOL.

In HINDOL market also 2 wheel lubes products are being maximum sold

resulting to the maximum sales of 1-5 litres pack.But here the importantparameter for selecting a brand by the retailers is Margin which has changedfrom demand as compared to that of other markets.Servo is the leading

player in this market.

5

4

3 3

4 4

1

0

2

5

3

0 0

2

1

6

0

1

2

3

4

5

6

7

SERVO.

CASTROL.

MAK.

HPCL.

VEEDOL.

ELF.

SHELL.

GULF

VALVOLINE

MANGOL.

PENSOL.

MEF

BHARAT.

SONACHI

SKF.

OTHER.


6

3

300







72/80

72

MAX SELLING PRODUCT CATEGORY

0

0.5

1

1.5

2

2.5

3

3.5

4



2

4

2

0


73/80

73


01234567

PRICE/M

.R.P.

MA

RGIN.

DEM

AND.

PYMT/CR

EDIT.

SCHMES/INCEN

TIVE.

QU

ALITY

SATISFAC

TION.


0

76

0 0

6

0


74/80

74



For other markets namely asBHUBAN,PARAJANG,ODAPADA,KANKADAHAD and GANDIA arevery small markets where the market potential is also too low.

-----------------------------------------------------------------------------------------

7

6

0

5

1

3 3 3

0 0

1 1

3

0

2

4

0

1

2

3

4

5

6

78

SER

VO.

CASTR

OL.

M

AK.

HPCL.

VEED

OL.

ELF.

SHELL.

G

ULF

VALVOL

INE

MANG

OL.

PENS

OL.

M

EF

BHAR

AT.

SONA

CHI

SKF.

OTH

ER.



75/80

75

FINDINGS .

FINDINGS FROM INDUSTRIES .

For industries, the requirements of lubricants basically varied as perthe nature of the products that are being manufactured which is typically highfor large scale industries like BHUSHAN STEEL & POWER PVT.LTD,

NAVA BHARAT VENTURES LTD etc.Similarly the rate consumption islow for medium and small scale industries. From the analysis it was quiteclear that irrespective of the size of industries, PRICE always remained themajor parameter which helps them for the purpose of buying lubricants. Thesame was found out when individual analysis was done on each district. It isalso found from the analysis of both the districts in cumulative as well asindividual form that a majority number of industries are sourcing theirlubricant requirements from distributors rather than directly from company ofthe brand they are consuming. From the survey it can be concluded that theaverage consumption of lubricants in ANGUL district is nearly about 11470litres whereas the consumption for industries in DHENKANAL is 2065 litreswhich is quite low when compared to that of ANGUL.

FINDINGS FROM RETAIL (BAZAAR) MARKET.

From the analysis it was found that CASTROL is the market leader inof lubricants in bazaar market. Similarly SERVO comes second and thereafter

HPCL, VEEDOL, PENSOL are ranked respectively as third, fourth and fifthrespectively. The scenario was same when individual district wise analysiswas done on ANGUL but only the fifth position was being taken byVALVOLINEin DHENKANAL district.


76/80


77/80

77

a) Company b) Distributor c) Others

8. Any specific brand you prefer and reason for the same.

9. What kind of after sales services do you expect from the Vendor?

10. Any specific value addition you look for while Lubricants?

11. Do you monitor the performance of Lubricants on regular basis?

a) Yes b) No c) At times

12. If yes, what type of performance parameters do you monitor?

13. Do you require Turbine Oils?

a) Yes b) No

14. If yes, which Turbine Oil is being used at present? What is the

Quantity required per month?

15. Do you use Transformer Oil

a) Yes b) No

16. If yes, which Transformer oil is being used at present? What is the

quantity required per month?


78/80

78

QUESTIONNAIRE FOR REATAILER SURVEY.

Survey to understand Retailers Needs towards sales of different Brands

of Lubricants:

Name of the Retail Shop:

Name of the Owner:

Address and Contact No:

Questionnaires:

1. What is your average Lubes sales per month?

a) Value (Rs).. b) Quantity (Ltrs).

2. What are different Lubricant Brands you are selling?

a) Servo b) Castrol c) HPCL d) MAK e) Veedol f)ELF

g) Others

3. Which category of products are you selling maximum?

a) 2-Wh Engine Oil b) 4-Wh Engine Oil c) Diesel Engine Oild) Coolante) Greases

4. Which pack sizes are mostly sold?

a) Up to 1 Litre pack b) 1 to 5 Litre pack c) 7 to 20 Litre pack d)Barrels

5. What is the most important parameter you look for while selecting a

Brand for selling?

a) Price/MRP b) Margin c) Market Demand d) Paymentterm/Credit

e) Scheme/Incentives


79/80

79

6. Have you heard of HPCL Brand?

a) Yes b) No

7. Are you selling HPCL Brand?

a) Yes b) No

8. If yes, which are the HPCL Grades and Quantities you are selling per

month?

9) If no, what are the main reasons for not preferring HPCL Brand?

10) Your suggestions for improving sales of HPCL Lubricants:


80/80

REFERENCE.

www.hpcl.co.in

WWW.WIKIPEDIA.ORG

WWW.CNNMONEY.COMwww.bharatpetroleum.com/wheels

www.speedfuels.com

MARKETING MANAGEMENTPHILIP KOTLER.

MARKETING MODULEPROF.TANMOY DE.

HPCL INDUSTRIAL FUEL AND LUBRICANT HAND BOOK.

HPCL HANDBOOK FOR AUTOMOTIVE LUBRICANTS.

INDUSTRIAL GUIDE.
http://www.bharatpetroleum.in/http://www.bharatpetroleum.in/http://www.wikipedia.org/http://www.wikipedia.org/http://www.cnnmoney.com/http://www.cnnmoney.com/http://www.bharatpetroleum.com/wheelshttp://www.bharatpetroleum.com/wheelshttp://www.bharatpetroleum.com/wheelshttp://www.bharatpetroleum.com/wheelshttp://www.speedfuels.com/http://www.speedfuels.com/http://www.speedfuels.com/http://www.bharatpetroleum.com/wheelshttp://www.cnnmoney.com/http://www.wikipedia.org/http://www.bharatpetroleum.in/

Documents

Hpcl Distribution System