• GROUP 6• Dinesh ku padhy• Suchismita mishra• Sunil kumar biswal• Manamohan mahapatro• Sutapa rani dey• Nigamananda Nanda

APRESENTATION ON

HPCL

CENTURION UNIVERSIITY ,PARALAKHEMUNDI

To know the brief introduction of HPCL TO know the products as well as

competitors of HPCL To know the SWOT analysis of HPCL To know the industry analysis of HPCL

(Porter’s 5 forces) To know the CSR activities of HPCL To know the Research and development

of HPCL To explore the corporate governance of

HPCL

OBJECTIVES

• Founded -1974• Hindustan Petroleum Corporation (HPCL) is

a state-owned company, engaged in the refining of crude oil and marketing of oil products. The company primarily operates in India.

• headquartered -Mumbai, India • employees - 11,250 people.• Chairman – S. Roy Choudhary

• Petrol• Diesel• Lubricants • LPG• Aviation turbine fuel• Bitumen • Furnace oil

Products –

1. Bharat Petroleum Corporation Ltd.2. Chennai Petroleum Corporation Ltd.3. Hindustan Petroleum Corporation Ltd.

Competitors

Strength –2. Network of 1400 retail outlets and more than 250 retail outlets in various stage of construction3. State of art technologies at refinery4. First Indian private sector company to enter petro retailing5. Very active in CSR activities6. Strong and dedicated workforce

Weak ness 1. Company operations are bound by Govt regulations and fluctuations.

2. Net sales are affected due to increasing cost

SWOT ANALYSIS

Opportunity 1. Demand-Supply gap in India2.Increasing natural gas market globally3.Heavy industrialization causing an increase in demand for fuel

Threats 1.Threats from competitors2. Competitors receiving subsidies on taxes by central and state government3.Economic instability and fluctuations in India's policies

THREAT OF NEW ENTRANTS: HIGH • Developing Customer Base

takes Long time • Product Differentiation • Capital costs are High • Switching Costs are High • Access to Distribution

Channels • Gestation Period is Long • Government Policies

BARGAINING POWER OF SUPPLIERS: MEDIUM • Supplier industry is

dominated by Government Firms. Degree of fragmentation is more in supplier.

• Supplier’s products have no substitutes.

• Product of the supplier becomes an important input to the product of buyer.

• Demand for suppliers products

• Suppliers’ products have high switching costs

•

Industrial analysis , (porter’s 5 forces) of HPCL

BARGAINING POWER OF BUYERS: VERY LOW • Buyers are heavily dependent on

the product. • Purchase accounts for a small

fraction of supplier’s sales. • Products are heavily dependent

on the fuel for transportation. • Supplier can sell to anyone

irrespective of any restriction. • Product Quality in the hands of

the supplier.

THREAT OF SUBSTITUTE PRODUCTS: LOW • Clearly low substitute products as

of now. • R&D for the substitutes in nascent

stage. • Polymers allow better performance

than substitutes in most applications.

• But, Polymers are non-biodegradable and cause concerns.

• Fiber intermediates are used which have better properties than substitutes.

• The prices charged by the firms are limited to products with similar function .

• RIVALRY AMONG COMPETITIVE FIRMS: MEDIUM Intense rivalry is due to:

Fragmentation is Low. Rivalry is cyclical and often happens. Apart from prices, there is competition in quality, cost and support. Making new product introductions.

• Difficult product differentiation • Increasing consumption of petroleum products @

4% per year • Fluctuating crude oil market involving geo-politics • Improper pricing mechanism • Reducing income constraining further investments • Increasing competition from private as well as

other PSUs • Inefficiencies in retailing outlets leading to loss of

customer satisfaction

MAJOR ISSUES OF HPCL

• HPCL continually invests in innovative technologies to enhance the effectiveness of employees and bring qualitative changes in service.

• Business Process Re-Engineering exercise,• creation of Strategic Business Units• ERP implementation• Organizational Transformation • benchmarking of refineries and terminals

for product specifications• ISO certification of Refineries and Supply

Chain Management are some of the initiatives that broke new grounds. 

Strategies of HPCL

• The Energy and Resource Institute (TERI ), New Delhi:

"Screening and selection of efficient microbial strains for bio hydrogen production. (years )

REASEARCH AND DEVELOPMENT

• Indian Institute of Science (IISc ), Bangalore:

• "Society for Innovation and Development" (SID) is an innovation Centre of IISc and will collaborate on behalf of IISc with HPCL.

• setting up of R&D Centre and implementation of various collaborative projects. (objective)

• Currently a project on nanoparticles is being undertaken.

• Advanced Research Technologies (ART), Chevron & IIT Kanpur : HPCL has entered into a Memorandum of Understanding with the following organizations. 

• Advance Refining Technologies LLC (ART)

• Chevron USA Inc. and• Indian Institute of Technology (IIT)

Kanpur

Serving the community

Using core competence, expertise and technology of our business to reach the common people, especially the underprivileged

Developing capacity in the community

Enhancing human excellence and improving quality of life is our endeavor

CSR Purpose statement  of HPCL

MUSKANCHILD RIGHT –BAL HAQ

MIDDAY MILL OF GOVT SCHOOL

Health at Rehabilitation Centres- Navjyot

Awareness on HIV among truckers - Suraksha

Health services in Rural Areas

 • HP E&P has entered into strategic partnerships and

participated in various bidding rounds within the country as well as overseas.

• HPCL, in consortium with E&P partners companies currently has 19 nos. blocks in India, and 3 nos. overseas blocks in Australia and Egypt.

• HPCL intends to leverage and consolidate its current position and formulate & implement a strategy for E&P business based on opportunities both within and outside India.

• Currently HP E&P has presence in 2 countries including India and plans to expand its portfolio in other countries which is a main area of focus of its Strategic Investment plan mainly in Middle East, South East Asia & Africa.

HP Exploration and Production Portfolio

BCG MATRIX

• it is a “star” product. Indian Oil is the highest ranked Indian company in the prestigious Fortune  Global 500 listing

• the 116th position(in 2008) based on fiscal 2007 performance

• 18thlargest petroleum company in the world and the number one petroleum trading company among the National Oil Companies in the Asia-Pacific region.

Corporate Governance in HPCL

– Implementation– Decision making process– Advisory Council– Exercise of Authority– Limits of Authority Manual (LAM)– Purchase Manual– Right to Information Act 2005