Bharat Petroleum Corp Ltd.doc1

8/13/2019 Bharat Petroleum Corp Ltd.doc1

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INTRODUCTION BHARAT PETROLEUM

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

companies, with Glo al !ortune "## ran$ of %& (%##&) and according to ecem er

%# # !*+ U-. "## Indian/s largest corporation, B01+1 P. +*L.U2 has

achie3e 4 th ran$ out of "##5 Its corporate office is located at Ballard .state, 2um ai5

1s the name suggests, its interests are in petroleum sector5 It is in3ol3ed in the

refining and retailing of petroleum products5

Bharat Petroleum is considered to e a pioneer in Indian petroleum industr6 with

3arious path7 rea$ing initiati3es such as Pure for Sure campaign, Petro card, !leet

card etc5

BPCL's growth post7nationali8ation (in 9 :) has een phenomenal5 *ne of thesingle digit Indian representati3es in the !ortune "## ; !or es %### listings, BPCL is

often referred to as an uartered in 2um ai and emplo6s a out ?, 9:& people5he compan6 recorded re3enues of I-+ , %,4? million (appro@imatel6 A% ,:?%5&

million) in the fiscal 6ear ended 2arch %##&, an increase of ? o3er %## 5 Its net

profit was I-+ , :9: million (appro@imatel6 A4?95: million) in fiscal %##&, a

decrease of 5" compared to %## 5

B+.L was incorporated on th une, %##& for underta$ing the production,

procurement, culti3ation and plantation of horticulture crops such as DaranE, atrophaand Pongamia, trading, research and de3elopment and management of all crops and

plantation including Biofuels in the state of Uttar Pradesh, with an authori8ed capital

of +s5?# crores5 he compan6 has een promoted 6 BPCL with -andan Biomatri@

Limited, 06dera ad and ShapoorEi PallonEi Compan6 Limited through their affiliate5

.ach of the partners will ha3e an e>ual sta$ein the e>uit6 capital of the Eoint 3enture5

he proEect en3isages plantation of atropha in million acres (4#4:&:5? hectares) of

marginal land which has the potential of generating emplo6ment F self emplo6ment

for million people and producing million tonnes of

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HISTORY:-

he &:#s saw 3ast industrial de3elopment5 1 lot of petroleum refineries

came up5 1n important pla6er in the South 1sian mar$et then was the Burmah *il

Compan6 Ltd5 hough incorporated in Scotland in &&:, the compan6 grew out of theenterprises of the +angoon *il Compan6, which had een formed in & to refine

crude oil produced from primiti3e hand dug wells in Upper Burma5 he search for oil

in India egan in &&:, when 2r5 Goodenough of 2cDillop Stewart Compan6 drilled

a well near a6pore in upper 1ssam and struc$ oil5 In &&9, the 1ssam +ailwa6 and

rading Compan6 (1+ C) struc$ oil at ig oi mar$ing the eginning of oil

production in India5

hile disco3eries were made and industries e@panded, ohn +oc$efeller togetherwith his usiness associates ac>uired control of numerous refineries and pipelines to

later form the giant Standard *il rust5 he largest ri3als of Standard *il 7

+o6al utch, Shell, +othschilds came together to form a single organi8ationH 1siatic

Petroleum Compan6 to mar$et petroleum products in South 1sia5

In 9%&, 1siatic Petroleum (India) Eoined hands with Burmah *il Compan6 7 an

acti3e producer, refiner and distri utor of petroleum products, particularl6 in Indian

and Burmese mar$ets5 his alliance led to the formation of Burmah7Shell *il Storage

and istri uting Compan6 of India Limited5 1 pioneer in more wa6s than one,

Burmah Shell egan its operations with import and mar$eting of Derosene5 his was

imported in ul$ and transported in 4 gallon and gallon tins through rail, road and

countr6 craft all o3er India5 ith motor cars, came canned Petrol, followed 6 ser3ice

stations5 In the 9?#s, retail sales points were uilt with dri3ewa6s set ac$ from the

road ser3ice stations egan to appear and ecame accepted as a part of road

de3elopment5 1fter the war Burmah Shell esta lished efficient and up7to7date ser3ice

and filling stations to gi3e the customers the highest possi le standard of ser3ice

facilities5

FROM BURMA SHELL TO BHARAT PETROLEUM.

Burmah Shell +efineries was incorporated as a compan6 in 9"%, and

esta lished a refiner6 in 2ahul 5*n %4 anuar6 9 :, the Burmah Shell Group of

Companies was ta$en o3er 6 the Go3ernment of India to form Bharat +efineries

Limited5 *n 1ugust 9 , it was renamed Bharat Petroleum Corporation Limited5 It"


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was also the first refiner6 to process newl6 found indigenous crude Bom a6 0igh, in

the countr65

VISIONARY APPROACH

he core strength of Bharat Petroleum Corporation Limited has alwa6s een the

ardent pursuit of >ualitati3e e@cellence for ma@imi8ation of customer satisfaction5

hus Bharat Petroleum, the erstwhile Burmah Shell, has toda6 ecome one of the

most formida le names in the petroleum industr65

Bharat Petroleum produces a di3erse range of products, from petrochemicals and

sol3ents to aircraft fuel and specialt6 lu ricants and mar$ets them through its wide

networ$ of Petrol Stations, Derosene ealers, L5P5G5 istri utors, Lu e Shoppes, esides suppl6ing fuel directl6 to hundreds of industries, and se3eral international and

domestic airlines5

BHARAT PETROLEUM then and afte !

he compan6 installed microprocessor ased digital integrated distri uted control

s6stems in catal6tic reformers and introduced a new sol3ent unit to replace the

pneumatic control s6stem in 99?5 he compan6 also installed an ad3anced control

s6stem for its catal6tic control unit5 he compan6 then incorporated a Eoint 3enture

compan6, Bharat *man +efineries, in 9945 here after BPCL signed a memorandum

of understanding (2*U) with Ban$ of Baroda in 99" to launch the first co7 randed

credit card in the countr65 In 99&, BPCL entered into a Eoint 3enture with Petronet

(India) for the construction of a ?#& $m pipeline from Dochi in Derala to Darur in

amil -adu5 he following are a few achie3ement achie3ed 6 B01+1

P. +*L.U2 C*+P*+1 I*- L H

2c onald's made an agreement with BPCL to open and run

restaurants at selected petrol pumps across the countr6 in %###5

Juic$6's, the glo al coffee chain, followed suit in %## , and egan

ton offer its ser3ices at BPCL stores5

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Bharat Petroleum Corporation Limited and G1IL formed another

Eoint 3enture compan6, Central UP Gas, for implementation of Cit6

Gas ProEects in elhi and Danpur in %##"5

In %##:, the Go3ernment of the Sultanate of *man signed an

.@ploration and Production Sharing 1greement (.PS1) for the on

land e@ploration loc$ ": with the consortium comprising BPCL,

*ile@ (*perator), 0industan Petroleum Corporation Limited, G1IL

India and Kideocon Industries5 In the same 6ear, the compan6

ac>uired a %# interest in an e@ploration loc$ in 1ustralia5

In Septem er %##&, BPCL and Kideocon Industries Ltd ac>uired

"# sta$e in Bra8il's .nCana Brasil Petroleo Limeade5

BPCL and G1IL (India) Limited announced to form a Eoint 3enture

compan6, God/s *wn Gas Compan6, for mar$eting compressed

natural gas (C-G) and piped gas in Derala and Darnata$a, in 2arch%##&5

In 1pril %##&, BPCL announced the formation of Eoint 3enture

Compan6 in consortium with other companies, ShapoorEi PallonEi

Co Ltd and -andan Biomatri@ Ltd for esta lishment of Bio iesel

Kalue Chain in Uttar Pradesh, India5 In the same month, BPCL and

G1IL (India) Limited signed an 2*U for cooperation intransmission and distri ution of natural gas, L5P5G5 pipelines and

cit6 gas5

In 1ugust %##&, PunEa .nerg6 e3elopment 1genc6 (P. 1)

signed a 2oU with BPCL to setup one 2F Solar Photo3oltaic

Power Plants at Lalru in PunEa , India5


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BOARD OF DIRECTORS:

Na"e #$% T&t'e B$a dSh &. R. (. S&n)h Chairman; 2anaging irector .@ecuti3e BoardD . S. M$han

irector, 0uman +esources .@ecuti3e BoardSh &. (.(. *+,ta irector, 2ar$eting .@ecuti3e BoardSh &. B.(. Datta irector, +efineries .@ecuti3e BoardSh &. S.Va ada a an irector, !inance .@ecuti3e BoardP $f. N. Ven &te/0a an irector -on .@ecuti3e BoardSh &. Ha e/h. M. #a)t&an& irector -on .@ecuti3e BoardSh &. I.P.S. Anand irector -on .@ecuti3e BoardSh & P. (. S&nha irector S,e1&a' Se1 eta 2 3 F&nan1&a'

Ad4&/$ 5 M&n&/t 2 $f Pet $'e+" 3

Nat+ a' *a/

MAJOR PRODUCTS AND SERVICES:

Bharat Petroleum Corporation Limited (BPCL) refines, stores, mar$ets and

distri utes petroleum products5 he compan6/s $e6 products and ser3ices include the

followingH

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PRODUCTS:

I5 Petrol

II5 iesel

III5 L5P5G5IK5 Gasoline

K5 Derosene

KI5 Lu ricants

KII5 13iation fuel

KIII5 !uels and sol3ents

SERVICES:

I5 Con3enience stores

II5 1 2s

III5 Car washes

IK5 !ree air and water

K5 Lu ricant top7ups

KI5 .nerg6 audits

KII5 .7 an$ing ser3ices

KIII5 Consultanc6 and technical ser3ices

I 5 *nline ordering

MAR(ETIN* STRATE*Y

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Ma et&n) /t ate)2 is defined 6 a3id 1a$er as a process that can allow an

organi8ation to concentrate its resources on the optimal opportunities with the goals of

increasing sales and achie3ing a sustaina le competiti3e ad3antage 5M N 2ar$eting

strateg6 includes all asic and long7term acti3ities in the field of mar$eting that deal

with the anal6sis of the strategic initial situation of a compan6 and the formulation,

e3aluation and selection of mar$et7oriented strategies and therefore contri ute to the

goals of the compan6 and its mar$eting o Eecti3es5

De4e'$,&n) a "a et&n) /t ate)2

2ar$eting strategies ser3e as the fundamental underpinning of mar$eting plans

designed to fill mar$et needs and reach mar$eting o Eecti3es5M?N

Plans and o Eecti3esare generall6 tested for measura le results5 Commonl6, mar$eting strategies are

de3eloped as multi76ear plans, with a tactical plan detailing specific actions to e

accomplished in the current 6ear5 ime hori8ons co3ered 6 the mar$eting plan 3ar6

6 compan6, 6 industr6, and 6 nation, howe3er, time hori8ons are ecoming shorter

as the speed of change in the en3ironment increases5 M4N 2ar$eting strategies are

d6namic and interacti3e5 he6 are partiall6 planned and partiall6 unplanned5 See

strateg6 d6namics 5 2ar$eting strateg6 needs to ta$e a long term 3iew, and tools such

as customer lifetime 3alue models can e 3er6 powerful in helping to simulate the

effects of strateg6 on ac>uisition, re3enue per customer and churn rate 5

2ar$eting strateg6 in3ol3es careful scanning of the internal and e@ternal

en3ironments5 M"N Internal en3ironmental factors include the mar$eting mi@ and

mar$eting mi@ modeling , plus performance anal6sis and strategic constraints5 M:N

.@ternal en3ironmental factors include customer anal6sis, competitor anal6sis, target

mar$et anal6sis, as well as e3aluation of an6 elements of the technological, economic,cultural or politicalFlegal en3ironment li$el6 to impact success5 M4N 1 $e6 component of

mar$eting strateg6 is often to $eep mar$eting in line with a compan6's o3erarching

mission statement5

*nce a thorough en3ironmental scan is complete, a strategic plan can e constructed

to identif6 usiness alternati3es, esta lish challenging goals, determine the optimal

mar$eting mi@ to attain these goals, and detail implementation5 1 final step in

#
http://en.wikipedia.org/wiki/David_Aakerhttp://en.wikipedia.org/wiki/Competitive_advantagehttp://en.wikipedia.org/wiki/Marketing_strategy#cite_note-1http://en.wikipedia.org/wiki/Marketing_strategy#cite_note-1http://en.wikipedia.org/wiki/Marketing_planhttp://en.wikipedia.org/wiki/Marketinghttp://en.wikipedia.org/wiki/Marketing_strategy#cite_note-3http://en.wikipedia.org/wiki/Marketing_planhttp://en.wikipedia.org/wiki/Marketing_strategy#cite_note-AakerDavid-4http://en.wikipedia.org/wiki/Strategy_dynamicshttp://en.wikipedia.org/wiki/Customer_lifetime_valuehttp://en.wikipedia.org/wiki/Churn_ratehttp://en.wikipedia.org/wiki/Marketing_strategy#cite_note-5http://en.wikipedia.org/wiki/Marketing_mixhttp://en.wikipedia.org/wiki/Marketing_mix_modelinghttp://en.wikipedia.org/wiki/Marketing_strategy#cite_note-6http://en.wikipedia.org/wiki/Competitor_analysishttp://en.wikipedia.org/wiki/Target_markethttp://en.wikipedia.org/wiki/Target_markethttp://en.wikipedia.org/wiki/Marketing_strategy#cite_note-AakerDavid-4http://en.wikipedia.org/wiki/Mission_statementhttp://en.wikipedia.org/wiki/Strategic_planninghttp://en.wikipedia.org/wiki/David_Aakerhttp://en.wikipedia.org/wiki/Competitive_advantagehttp://en.wikipedia.org/wiki/Marketing_strategy#cite_note-1http://en.wikipedia.org/wiki/Marketing_planhttp://en.wikipedia.org/wiki/Marketinghttp://en.wikipedia.org/wiki/Marketing_strategy#cite_note-3http://en.wikipedia.org/wiki/Marketing_planhttp://en.wikipedia.org/wiki/Marketing_strategy#cite_note-AakerDavid-4http://en.wikipedia.org/wiki/Strategy_dynamicshttp://en.wikipedia.org/wiki/Customer_lifetime_valuehttp://en.wikipedia.org/wiki/Churn_ratehttp://en.wikipedia.org/wiki/Marketing_strategy#cite_note-5http://en.wikipedia.org/wiki/Marketing_mixhttp://en.wikipedia.org/wiki/Marketing_mix_modelinghttp://en.wikipedia.org/wiki/Marketing_strategy#cite_note-6http://en.wikipedia.org/wiki/Competitor_analysishttp://en.wikipedia.org/wiki/Target_markethttp://en.wikipedia.org/wiki/Target_markethttp://en.wikipedia.org/wiki/Marketing_strategy#cite_note-AakerDavid-4http://en.wikipedia.org/wiki/Mission_statementhttp://en.wikipedia.org/wiki/Strategic_planning


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de3eloping a mar$eting strateg6 is to create a plan to monitor progress and a set of

contingencies if pro lems arise in the implementation of the plan5

2ar$eting 2i@ 2odeling is often used to help determine the optimal mar$eting

udget and how to allocate across the mar$eting mi@ to achie3e these strategic goals5

2oreo3er, such models can help allocate spend across a portfolio of rands and

manage rands to create 3alue5

Types of marketi ! strate!ies

Marketi ! strate!ies may "iffer "epe "i ! o t#e $ i%$e sit$atio of t#e i "i&i"$a'

($si ess) *o+e&er t#ere are a $m(er of +ays of ,ate!ori-i ! some !e eri,

strate!ies) A (rief "es,riptio of t#e most ,ommo ,ate!ori-i ! s,#emes is prese te" (e'o+:

St ate)&e/ %a/ed $n "a et d$"&nan1e 7 In this scheme, firms are classified ased

on their mar$et share or dominance of an industr65 6picall6 there are four t6pes of

mar$et dominance strategiesH

Leader

Challenger

!ollower

-icher

1ccording to Shaw, .ric (%# %)5 Marketing Strategy: From the Origin of the Concept

to the Development of a Conceptual Framework 5 ournal of 0istorical +esearch in

2ar$eting5, there is a framewor$ for mar$eting strategies5

2ar$et introduction strategies

O1t introduction, the mar$eting strategist has two principle strategies to choose fromH

penetration or nicheO 5

2ar$et growth strategies

OIn the earl6 growth stage, the mar$eting manager ma6 choose from two additional

strategic alternati3esH segment e@pansion (Smith, 1nsoff) or rand e@pansion

(Borden, 1nsoff, Derin and Peterson, 9 &)O 5
http://en.wikipedia.org/wiki/Marketing_Mix_Modelinghttp://en.wikipedia.org/wiki/Market_dominancehttp://en.wikipedia.org/wiki/Marketing_Mix_Modelinghttp://en.wikipedia.org/wiki/Market_dominance


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2ar$et maturit6 strategies

OIn maturit6, sales growth slows, sta ili8es and starts to decline5 In earl6 maturit6, it is

common to emplo6 a maintenance strateg6 (BCG), where the firm maintains or holds

a sta le mar$eting mi@O 5

2ar$et decline strategies

1t some point the decline in sales approaches and then egins to e@ceed costs5 1nd

not Eust accounting costs, there are hidden costs as well as Dotler ( 9:", p5 #9)

o ser3edH '-o financial accounting can ade>uatel6 con3e6 all the hidden costs5' 1t

some point, with declining sales and rising costs, a har3esting strateg6 ecomes

unprofita le and a di3esting strateg6 necessar6O 5

.arl6 mar$eting strateg6 concepts wereH

Borden/s


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Four Ps of Marketing - Product, Price,Promotion, Placement

The Four Ps Of Marketing

Marketing has traditionally been segmented into four

separate areas called the Four Ps of Marketing. The 4 Ps of

marketing are product, price, promotion, and placement:

A formal approach to this customer-focused marketing is

kno n as SIVA !"olution, #nformation, $alue, Access%. This

system is basically the four Ps renamed and re orded to

pro&ide a customer focus. The "#$A Model pro&ides a

demand'customer centric &ersion alternati&e to the ell-

kno n 4Ps supply side model !product, price, place,

promotion% of marketing management.

Product "olution

Promotion #nformation

Price $alue

Placement Access

1. Product: Product marketing deals ith theconsumer(s needs and ants and ho product

specifications can satisfy those needs and ants.

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Product marketing can deal ith a hole array of

issues such as product si)e, color, and look and feel

of the packaging. *ften, first impressions are

important, especially if you are marketing a product

that sells on store shel&es. +ou ould ant your

product to stand out or for the consumer to ant to

choose your product o&er the others on the shelf.

2. Price: Price deals ith supply and demand, or homuch a consumer is illing to pay for a product or

ser&ice. #t also includes decisions on discounts and

special offers. Pricing is not as simple as it might

seem. #n some situations, a lo er price ill not

necessarily mean that more ill be sold as the price

le&el could also influence the percei&ed uality of a

product. For e ample, affluent consumers may

e pect a premium product to cost more and, so, may

not purchase it if the price is cheap. Pricing often

affects the consumer(s perception of the

attracti&eness of a product.

3. Promotion: Promotion deals ith the actualselling, ad&ertising, or publicity of the product it

entails your communications ith your customersand trying to con&ince or persuade them to purchase

your products or ser&ices. This could be done through

such things as tele&ision commercials, maga)ine ads,

direct mailings to residences or businesses, and

billboards.

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4. Placement: Placement has to do ith the a&ailabilityof your product. +ou ant your product to be &isible

at the precise moment that a consumer is illing to

purchase such a product, be it through an actual

need or an impulse buy. Products can reach the

consumer through multiple ays, including through

retail outlets or mail order. /ot e&ery consumer

shops the same ay and product placement is the art

of getting the product to the right consumer at the

right time.

"
http://en.wikipedia.org/wiki/File:Marketing-Mix_(en).png


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ABOUT THE COMPETITORS

0. !*LL* I-G 1+. 0. *P !IK. C*2P. I *+S *! BHARA

!" RO#"$M COR!ORA %O& #%M% "D H

INDIAN OI. CORPORATION .IMITED)

I "ia Oi' Corporatio is an Indian pu lic7sector petroleum compan65 It is India/s

largest commercial enterprise, ran$ing :th on the !ortune Glo al "## listing

(%##&)5 It egan operation in 9"9 as Indian *il Compan6 Ltd5 he Indian *il

Corporation was formed in 9:4, with the merger of Indian +efineries Ltd5 Indian *il

and its su sidiaries account for a 4 share in the petroleum products mar$et, 4#

share in refining capacit6 and : downstream sector pipelines capacit6 in India5 he

Indian *il Group of Companies owns and operates # of India's 9 refineries with acom ined refining capacit6 of :#5% million metric tons per 6ear5 *n ?#th une %##9

Indian *il will complete "# 6ears of its e@istence and a series of e3ents are eing

planned to cele rate its Golden u ilee Qear5

*3er3iew Indian *il operates the largest and the widest networ$ of fuel stations in

the countr6, num ering a out :#: '()))* regular RO+ , -./0 1i++an Sewa

1en2ra3 5 It has also started 1uto L5P5G5 ispensing Stations (1L S)5 It reaches

Indane coo$ing gas to o3er 4 5" million households through a networ$ of 4,99#Indian distri utors5 In addition, Indian *il's +esearch and e3elopment Centre

(+; ) at !arida ad supports, de3elops and pro3ides the necessar6 technolog6

solutions to the operating di3isions of the corporation and its customers within the

countr6 and a road5 Su se>uentl6, Indian *il echnologies Limited 7 a wholl6 owned

su sidiar6, was set up in %##?, with a 3ision to mar$et the technologies de3eloped at

Indian *il/s +esearch and e3elopment Centre5 It has een modelled on the +;

mar$eting arms of +o6al utch Shell and British Petroleum5

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*INDUSTAN PETRO.EUM CORPORATION .IMITED)

*PC. /*i "$sta Petro'e$m Corporatio .imite"0 is a !ortune "## compan6, with

an annual turno3er of o3er +s ,#?,&? Crores (A %", 4% 2illions) during !Q %## 7

#&, : +efining ; 2ar$eting share in India and a strong mar$et infrastructure5

Corresponding figures for !Q %##:7# areH +s 9 ,44& crores (A%#,&9% 2illion)5he Corporation operates % maEor refineries producing a wide 3ariet6 of petroleum

fuels ; specialties, one in 2um ai ( est Coast) of "5" 22 P1 capacit6 and the

other in Kisha$hapatnam, (.ast Coast) with a capacit6 of 5" 22 P15 0PCL holds

an e>uit6 sta$e of :59" in 2angalore +efiner6 ; Petrochemicals Limited, a state7

of7the7art refiner6 at 2angalore with a capacit6 of 9 22 P15 In addition, 0PCL is

progressing towards setting up of a refiner6 in the state of PunEa in the Eoint sector5

0PCL also owns and operates the largest Lu e +efiner6 in the countr6 producing

Lu e Base *ils of international standards5 ith a capacit6 of ??" 2 5 his Lu e

+efiner6 accounts for o3er 4# of the India's total Lu e Base *il production5

he 3ast mar$eting networ$ of the Corporation consists of Ronal offices in maEor

cities and o3er 9 +egional offices facilitated 6 a Suppl6 ; istri ution

infrastructure comprising erminals, 13iation Ser3ice Stations, L5P5G5 Bottling

Plants, and Inland +ela6 epots ; +etail *utlets5 he Corporation o3er the 6ears has

mo3ed from strength to strength on all fronts5 he refining capacit6 steadil6 increased

from "5" million tonnes in 9&4F&" to ?5 # million metric tonnes (22 ) presentl65

*n the financial front, the turno3er grew from +s5 %:& crores in 9&47&" to an

impressi3e +s ,#?,&? Crores in !Q %## 7#&5 0PCL also owns and operates the

countr6/s largest Lu e +efiner6, producing Lu e Base *ils of international standards5

ith a capacit6 of ??",### 2etric onnes5 his refiner6 accounts for o3er 4# of the

countr6/s total Lu e Base *il production5

he 3ast mar$eting networ$ of the Corporation consists of Ronal offices in the 4

metro cities and o3er &" +egional offices facilitated 6 a Suppl6 ; istri ution

infrastructure comprising erminals, 13iation Ser3ice Stations, L5P5G5 Bottling

Plants, and Inland +ela6 epots ; +etail *utlets5

RE.IANCE INDUSTRIES .IMITED)

Re'ia ,e I "$stries .imite" /NSE: RE.IANCE0 is India's largest pri3ate sector

conglomerate (and second largest o3erall) with an annual turno3er of USA ?"59 illion

and profit of USA 45&" illion for the fiscal 6ear ending in 2arch %##& ma$ing it one

of India's pri3ate sector !ortune Glo al "## companies, eing ran$ed at %#:th position (%##&)5 It was founded 6 the Indian industrialist hiru hai 1m ani in


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9::5 1m ani has een a pioneer in introducing financial instruments li$e full6

con3erti le de entures to the Indian stoc$ mar$ets5 1m ani was one of the first

entrepreneurs to draw retail in3estors to the stoc$ mar$ets5 Critics allege that the rise

of +eliance Industries to the top slot in terms of mar$et capitali8ation is largel6 due to

hiru hai's a ilit6 to manipulate the le3ers of a controlled econom6 to his ad3antage5hough the compan6's oil7related operations form the core of its usiness, it has

di3ersified its operations in recent 6ears5 1fter se3ere differences etween the

founder's two sons, 2u$esh 1m ani and 1nil 1m ani, the group was di3ided

etween them in %##:5 In Septem er %##&, +eliance Industries was the onl6 Indian

firm featured in the !or es's list of Oworld's ## most respected companiesO5

CHENNAI PETROLEUM CORPORATION LIMITED.

C#e ai Petro'e$m Corporatio .imite" /CPC.01 formerl6 $nown as 2adras

+efineries Limited (2+L) was formed as a Eoint 3enture in 9:" etween the

Go3ernment of India (G*I),12*C* and -ational Iranian *il Compan6 (-I*C)

ha3ing a share holding in the ratio 4 H ? H ? respecti3el65 !rom the grassroots

stage CPCL +efiner6 was set up with an installed capacit6 of %5" 2illion onnes Per

1nnum (22 P1) in a record time of % months at a cost of +s5 4? crore without an6

time or cost o3er run5

In 9&", 12*C* disin3ested in fa3our of G*I and the shareholding percentage of

G*I and -I*C stood re3ised at &45:% and "5?& respecti3el65 Later G*I

disin3ested :59% of the paid up capital in fa3our of Unit rust of India, 2utual

!unds, Insurance Companies and Ban$s on 9 2a6 99%, there 6 reducing its holding

to : 5 5 he pu lic issue of CPCL shares at a premium of +s5 # (+s5 9# to !IIs) in

994 was o3er su scri ed to an e@tent of % times and added a large shareholder ase

of o3er 9####51s a part of the restructuring steps ta$en up 6 the Go3ernment of

India, Indian *il Corporation Limited (I*CL) ac>uired e>uit6 from G*I in %###7#

Currentl6 I*C holds " 5&& while -I*C continued its holding at "54# 5 In 3iew of

the CPCL ecome su sidiar6 of I*CL in %## 5 he 2anali +efiner6 has a capacit6 of

95" 22 P1 and is one of the most comple@ refineries in India with !uel, Lu e, a@

and Petrochemical feedstoc$ production facilities5 CPCL is also the compan6 where

-+I usinessman 2r5C5Si3asan$aran wor$ed as a fa rication contractor5

MANA*LORE REFINERY AND PETROCHEMICALS LIMITED.

2angalore +efiner6 and Petrochemicals Limited (2+PL), located at Datipalla, north

from centre of 2angalore cit6, is a state7of7the7art Grass root +efiner6 at 2angalore

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O% e1t&4e $f the /t+d2

he o Eecti3e of the stud6 for &nd+/t &e/ are to find outH

he e'e4en1e $f L5P5G5 used in accordance with the product that is eing

manufactured in respecti3e industr65

Ma et&n) Ind+/t 2 $f L5P5G5 in industries ased on preferences, priorit6 and

indi3idualit65

Re6+& e"ent $n L5P5G5 in Eewellr6, iron, steel and ancillar6 industries5

S1$,e/ $f the /t+d2

he stud6 co3ers all the industr6 of Bharat Petroleum products5

his stud6 co3ers the opportunit6 anal6sis of L.P.*. of harat petroleum

in Eewellr6, auto mo ile , steel and anciallar6 industries as well as in retail

mar$et5

he stud6 also co3ers anal6sis of industries re>uirement and consumption

of L5P5G5 in industries as well as awareness, perception and consumption

of L5P5G5 6 common endindustrial7users through pcl

he sur3e6 has pro3ided the compan6 with much new l5p5g gas related

information of industries and other usiness contacts who might e

potential customers of Bharat Petroleum Corporation Limited .

%#


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his sur3e6 also pro3ides an insight a out the prioriti8ation factors of the

industries and retailers for comsuming and selling decision respecti3el65

L&"&tat&$n/ $f the /t+d2

Lac$ of interest and enthusiastic responses ma6 ha3e allowed iases in

this report in the form of < o 2respo si&e error =5

Correctness of this report is restricted and limited 6 the degree of

authenticit6 of data collected and sincerit6 and honest6 of respondents5

1rea of stud6 is restricted to Sagar +egion onl6 which is a maEor

limitation5 he national scenario ma6 e totall6 different from the results

of the a o3e mentioned areas5

%


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Re/ea 1h "eth$d$'$)2

Metho2ology an2 approach4

he stud6 was >ualitati3e in nature ased on industrial and retailer consumption and

stoc$ $eeping units decision respecti3el65 !ield research was carried out for the

sur3e6 oth for the case of industries and retailers5 !or industries the stud6 was

"es,ripti&e in nature where as for retailers it was e3p'oratory 5

Data +ource primar6 data source as new facts and figures are eing collected from

the proEect5

Sa",'&n) ,'an.

he main target area for the purpose of collecting the sample for the stud6 was

Sa!ar re!io where the main target population was 4e+e''ery1 iro stee' 5 a ,i''ary

i "$stries and retai' s#ops selling L5P5G5 to consumers and end7users5 !inall6

pro(a('isti, ,'$stere" sampling was done since e3er6 industr6 and retailers had an

e>ual chance of eing selected5

Re/ea 1h &n/t +"ent.

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separate >uestionnaires were eing prepared oth for industr6 and retailers where

each consisted ope 2e "e"1 ,'ose2e "e"1 ,#e,k'ists a " strai!#t2for+ar" type

%$estio s 5 he mode of collecting the data was asicall6 inter3iew7administered and

face to face con3ersations for oth industr6 and retailers5

DATA ANALYSIS.

MONT*.6 CONSUMPTION OF INDUSTRIES)

he monthl6 consumption of li>uid petroleum gas 3aried from industr6 to industr6depending on the si8e of the industries i5e5 large, medium and small scale industries5he following graph shows the consumption rate of industries cumulati3e of oth theindustrial area5

he following graph shows the consumption of li>uid petroleum gas in respecti3e industriesH

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hese are the maEor industr6 in which I ha3e 3isited for the purpose of data collection in Eewellerwell as sweets and others

THE MAR(ET SHARE OF ENTIRE SERVICE PROVIDER

It is found that I5*5C5L is the num er one gas industr6 in the sitapura as well as Pratap -agar andsanaganer and than comes B5P5C5L5 in second possition than after 0PCL , +.LI1-C. 1-

SUPP.+ respecti3el65

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MOST CONSUMED BRANDS IN INDUSTRIES) It is found that I*CL/s L5P5G5 rand has the high fre>uenc6 of consumption when

anal6sis is done on cumulati3e asis of oth the area5 B01+1 P. +*L.U2 comessecond ut this is onl6 due to the fact that it is eing consumed onl6 in small scaleindustries li$e Eeweller6, sweet crushers and that too in a 3er6 small >uantit6 (thea o3e graphs est gi3es the representation)5Both BPCL and 0PCL too ha3e good

proportion of mar$et share of L5P5G5 in industries as per the fre>uenc6 o tained fromthe anal6sis5

FR"5$"&C6 OF MOS CO&S$M"D BRA&DS %& A## H" AR"A

he results were the same when indi3idual area wise fre>uenc6 anal6sis was done5I*CL still topped the mar$et of industries with BPCL and 0PCL coming to second

and third position respecti3el65

%"


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THE FRE7UENCY OF BRAND CONSUME IN INDUSTRY

PARAMETERS 8HICH DECIDES TO BUY L.P.*..

!rom the research it was found that all industries( oth small and large scale) u6 theirre>uired portion of L5P5G5 on the asis of !R%C" factor, similarl6 does the same onS"R7%C" as well as R"COMM"&DA %O& 1- * 0.+S5 he parameter uirementsH

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So, finall6 it can e concluding that most of the industries (irrespecti3e of their si8e7large, medium, small scale) mainl6 put emphasis on P+IC. and S.+KIC. as their

primar6 and +.C*22.- 1 I*- and * 0.+ factors as their secondar6 priorit65 !or area wise anal6sis of the parameters for u6ing L5P5G5, it was found thatmost of the industries irrespecti3e of their si8e mostl6 had P+IC., S.+KIC. and* 0.+ (S1 IS!1C I*-, JU1LI Q) 1IG0 as their primar6 priorit6 and+.C*22.- 1 I*- as secondar6 priorit65 his mentioned prioriti8ations of

parameters were found for SI 1PU+1,P+1 1P -1G1+, S1-G1-.+ !rom the a o3e graph onl6 it is >uite clear that P+IC. comes as first priorit6

followed 6 S.+KIC.,+.C*22.- 1 I*- and * 0.+ as second ,third and last priorit6 respecti3el6 for industries as for the consumption of lu ricants5

7)8) B)RETAI. MAR9ET /BA AAR0)

he proEect peram ulates round the a8aar potential assessment of L5P5G5 forSI 1PU+1 and S1-G1-.+, P+1 1P -1G1+5 It was eing assigned to carr6 outa sur3e6 of all the Compan6 in the two area li$e sitapura and sanganer to egin with Iha3e classified that he anal6sis is ased on certain parameters and the sur3e6 wascarried out through >uestionnaire, ( eing the medium of e@ploration)5

H% "S S"##%& BRA&DS4

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*I;EST SE..IN; SI E

1ccording to m6 o ser3ation there in ma@imum sales of 4 $g c6linder after that 9$g industrial product than ?" and 4 5" respecti3el6 consumed 6 the consumer in themar$et , following digram can clear6f6 all those thing which I found in the mar$ethis is found that 4$g is the most selling rand in the mar$er which is related withdomestic uses product and than after 9 $g industrial product after that ?" and 4 $gindustrial product are selling in the mar$et 1s it is shown in the graph 5

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FINDIN*S

!or industries, the re>uirements of li>uid petroleum gas asicall6 3aried as per the

nature of the products that are eing manufactured which is t6picall6 high for large

scale industries li$e . .LL+Q, B* C0, S1 1+IQ1 S .. S, I+*- S ..L ;

210I- +1 1- 210I- +1 etc5

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Similarl6 the rate consumption is low for medium and small scale industries5 !rom the

anal6sis it was >uite clear that irrespecti3e of the si8e of industries, P+IC. alwa6s

remained the maEor parameter which helps them for the purpose of u6ing gas5

he same was found out when indi3idual anal6sis was done on each area5

It is also found from the anal6sis of oth the area in cumulati3e as well as indi3idual

form that a maEorit6 num er of industries are sourcing their lu ricant re>uirements

from distri utors rather than directl6 from compan6 of the rand the6 are consuming5

!rom the sur3e6 it can e concluded that the a3erage consumption of L5P5G in

SI 1PU+1 industrial area is nearl6 a out "## c6linders whereas the consumption

for industries in P+1 1P -1G1+ is nearl6 % ## litres which is >uite low when

compared to that SI 1PU+15

S+))e/t&$n

Bharat petroleum is performing well in its industr6 ut the maEor changes that BPCLneeds to is following

Compan6 need to do competitor anal6sis through which the can understand thenew pricing strateg6 so that compan6 can sustain in the mar$et ecausecompetitors are 3er6 h6per in the mar$et through pricing as Supper as well as+eliance gas

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Compan6 need to ta$e feed ac$ from time to time so that compan6 can deli3er etter ser3ice to consumer so that consumer can get etter after sale ser3ice

BPCL need to penetrate retail mar$et for industrial product as well as domestic product so that compan6 can increasing the mar$et share ecause a lot of person

has no time to ta$e connection and the compan6 goes to them the6 ta$e connectionfrom him

Compan6 should organi8e campaign for new connection so that industrial anddomestic customer can ta$e eas6 connection , this is the eas6 wa6 through whichcompan6 can easil6 increase mar$et share

Compan6 need to appoint a person who can do direct mar$eting and customer caneasil6 send and sol3e their pro lems

Compan6 should e target oriented so that e3er6 staff can gi3e hundred percent inthe compan6 wor$ and compan6 can compete with pri3ate pla6er

BPCL should also initiate the lo6alt6 program to the e@isting customer so thate@isting customer can e lo6al and new customer can e attract as man6 retailmar$eter

C$n1'+/&$n

0harat Petroleum 1orporation 2imited is one of the leading in#ndian petroleum arena, the main competitor of 0P12 ere#*12 as ell as 3P12 but in the present scenario "upper asell as eliance pri&ate player came in to e isting so

company is getting more and more competition from pri&ateplayer

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