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`SUMMER TRAINING REPORT

ON

“REQUIREMENTS OF LUBRICANTS IN
SPONGE IRON STEEL & ANCIALLARY
INDUSTRIES AND BAZAAR(RETAIL)
POTENTIAL ASSESMENT.”

AT

BHARAT PETROLEUM CORPORATION LTD.


BHUBANESWAR, ORISSA.

PREPARED BY
MR.NILOTPAL MAITY.
ENROLLMENT NO. 08DM070.
BATCH 2008-2010.

UNDER THE GUIDANCE OF


PROF. TANMOY DE. MR.SUBIR MONDAL
INTERNAL GUIDE. COMPANY GUIDE
.
AS A PARTIAL FULFILLMENT OF PGDM PROGRAM OF IMIS.

INSTITUE OF MANAGEMENT AND INFORMATION SCIENCE

BHUBANESWAR, ORISSA.
CONTENTS

CERTIFICATE.
DECLARATION.
ACKNOWLEDGEMENT.
ABSTRACT.

PART 1
INTRODUCTION
1.1 COMPANY PROFILE.
1.1. A. BRIEF AND HISTORY.
1.1. B. ORGANISATIONAL STURTURE.
1.1. C. MARKETING.
1.1. D. FINANCE & ECONOMY.
1.1. D. HUMAN RESOURCE.
1.1. E. OPERATIONS.
1.1. F. RESEARCH AND DEVELOPMENT.
1.2 INDUSTRY PROFILE.
1.2. A. THE LUBRICANT MARKET.
1.2. B. BRIEF ABOUT THE COMPETITORS.

PART 2
OBJECTIVES, SCOPES, RESEARCH METHODOLOGY, DATA
ANALYSIS, FINDINGS AND CONCLUSIONS.
2.1. OBJECTIVE OF THE STUDY.
2.2. SCOPES AND LIMITATION.
2.3. RESEARCH METHODOLOGY.
2.4. DATA ANALYSIS.
2.4. A. INDUSTRY (BUSINESS-TO-BUSINESS).
2.4. B. RETAIL MARKET (BAZAAR).
2.5. FINDINGS AND CONCLUSION.

ANNEXURE.
INDUSTRY (BUSINESS TO BUSINESS).
RETAIL MARKET (BAZAAR).

REFERENCES.
CERTIFICATE .
1DECLARATION.

I Mr.NILOTPAL MAITY with enrolment


NO: 08DM070 of stream PGDM for year 2008-10,
hereby declare that this project titled” REQUIREMENT
OF LUBRICANTS IN SPONGE,IRON
,STEEL,ANCUALLARY AND RETAIL MARKET”OF
BHARAT PETROLEUM CORPORATION LIMITED
(BPCL) to be authenticated and original in all respect
of the process carried out in this process, if this project
could be scrutinized and screened of coping, I am liable
for any DEMARCATION/VARIATION of marks
whatsoever my guide of this project deems fit.

NILOTPAL MAITY.
P.G.D.M
ENROLLMENT NO: 08DM070.
BATCH: 2008-2010.
ACKNOWLEDGEMENT

I express my gratitude to the entire panellist


who took active part in accomplishing my project.

To begin with, I would like to acknowledge my


sincere thanks to Capt. K.S.V. SUBRAMANIUM (Retd.)
CHIEF COORDINATOR (Training & Placement) for
providing me the opportunity to do my summer training
in Bharat Petroleum Corporation Limited (BPCL).

My heartfelt gratitude also goes to my company


guide Mr. SUBIR MONDAL, Asstt. Manager Marketing
(Lubes). Who initiated the Midas touch to all the queries
and actually made this project possible by edge.

I would also like to convey my gratitude to my


faculty guide PROF.TANMOY DE (Associate Professor)
who made me walk all the steps of this project,
intricately and helped me in formulating the entire
framework of this analytical research.

Finally, a word of thanks to all my respondents who


spared their valuable time from their busy itinerary in
filling up the questionnaires and made the project
complete.
ABSTRACT

TITLE OF THE PROJECT: Requirements of lubricants in sponge


iron steel and ancillary industries and bazaar potential assessment of
lubes.
NAME OF THE COMPANY: BHARAT PETROLEUM
CORPORATION LIMITED.

NAME OF THE INSTITUTE: INSTITUTE OF MANAGEMENT


AND INFORMATION TECHNOLOGY.

NAME OF THE GUIDE: PROF.TANMOY DE(FACULTY GUIDE)


MR.SUBIR MONDAL(COMPANY GUIDE).
PROJECT PERIOD: 11/5/2009 to 8/7/2009

MAJOR OBJECTIVES OF THE STUDY:


• To find out the requirements of lubricants in sponge iron steel and
ancillary industries.
• Bazaar potential assessment of lubricants in ANGUL and
DHENKANAL district.

METHODOLOGY : For industry the study was qualitative in nature


and based on industries and retailers opinion survey.

DATA SOURCE: Primary data source.

RESEARCH APPROACH: DESCRIPTIVE for industries and


EXPLORATORY for retailers.

RESEARCH INSTRUMENT: Separate questionnaires were being


prepared both for industry and retailers where each consisted OPEN-
ENDED, CLOSE-ENDED, CHECKLISTS and STRAIGHT-
FORWARD TYPE QUESTIONS. The mode of collecting the data was
basically interview-administered and face to face conversations for both
industry and retailers.
SAMPLING PLAN: The main target area for the purpose of
collecting the sample for the study was ANGUL and DHENKANAL
where the main target population was SPONGE IRON STEEL &
ANILLARY INDUSTRIES and RETAIL SHOPS selling lubricants to
consumers and end-users. Finally PROBABLISTIC CLUSTERED
sampling was done since every industry and retailers had an equal chance
of being selected.

MAJOR FINDINGS:

• Price is one of the important parameter for the industries based


upon which they decide for buying lubricants.
• Most of industries in both ANGUL and DHENKANAL are
sourcing their lubes requirements from distributors rather than
directly from the company.
• Cumulatively for both the districts the process of checking the
performance level in respective industries is very low, but its
different for that off ANGUL district where level of performance is
continuously checked and the same is not done in DHENKANAL.
• For the bazaar market 2 wheel lubes product are the maximum
selling after which diesel products comes second due to the fact that
both ANGUL and DHENKANAL are typical industrial belt.
• Similarly the most sold pack sizes are that of 7-20 litres pack which
resembles the potential sale of diesel vehicle lubricants.
• The important parameter for selecting a particular brand for selling
by the retailers is demand and then is margin.
PART -1.

INTRODUCTION.

1.1.COMAPANY PROFILE.
1.2.INDUSTRY PROFILE.
INTRODUCTION

1.1 COMPANY PROFILE.

1.1. A. BRIEF and HISTORY.

BRIEF.

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


largest PSU companies, with Global Fortune 500 rank of 287 (2008). Its
corporate office is located at Ballard Estate, Mumbai. As the name
suggests, its interests are in petroleum sector. It is involved in the refining
and retailing of petroleum products.
Bharat Petroleum is considered to be a pioneer in Indian petroleum
industry with various path-breaking initiatives such as Pure for Sure
campaign, Petro card, Fleet card etc.
BPCL's growth post-nationalization (in 1976) has been phenomenal. One
of the single digit Indian representatives in the Fortune 500 & Forbes
2000 listings, BPCL is often referred to as an “MNC in PSU garb”. It is
considered a pioneer in marketing initiatives, and employs “Best in
Class” practices.
Bharat Petroleum Corporation Limited (BPCL) specializes in refining,
processing, and distributing petroleum products. It offers petrol, diesel,
aviation fuel, liquefied petroleum gas (LPG) and lubricants. The company
primarily operates in India, where it is headquartered in Mumbai and
employs about13, 968 people.
The company recorded revenues of INR1,112,431 million (approximately
$27,632.8 million) in the fiscal year ended March 2008, an increase of
13% over 2007. Its net profit was INR17,696 million (approximately
$439.6 million) in fiscal 2008, a decrease of 17.5% compared to 2007.

HISTORY.

The 1860s saw vast industrial development. A lot of petroleum


refineries came up. An important player in the South Asian market then
was the Burmah Oil Company Ltd. Though incorporated in Scotland in
1886, the company grew out of the enterprises of the Rangoon Oil
Company, which had been formed in 1871 to refine crude oil produced
from primitive hand dug wells in Upper Burma. The search for oil in
India began in 1886, when Mr. Goodenough of McKillop Stewart
Company drilled a well near Jaypore in upper Assam and struck oil. In
1889, the Assam Railway and Trading Company (ARTC) struck oil at
Digboi marking the beginning of oil production in India.
While discoveries were made and industries expanded, John D
Rockefeller together with his business associates acquired control of
numerous refineries and pipelines to later form the giant Standard Oil
Trust. The largest rivals of Standard Oil - RoyalDutch, Shell, Rothschilds
came together to form a single organization: Asiatic Petroleum Company
to market petroleum products in South Asia.
In 1928, Asiatic Petroleum (India) joined hands with Burmah Oil
Company - an active producer, refiner and distributor of petroleum
products, particularly in Indian and Burmese markets. This alliance led to
the formation of Burmah-Shell Oil Storage and Distributing Company of
India Limited. A pioneer in more ways than one, Burmah Shell began its
operations with import and marketing of Kerosene. This was imported in
bulk and transported in 4 gallon and 1 gallon tins through rail, road and
country craft all over India. With motor cars, came canned Petrol,
followed by service stations. In the 1930s, retail sales points were built
with driveways set back from the road; service stations began to appear
and became accepted as a part of road development. After the war
Burmah Shell established efficient and up-to-date service and filling
stations to give the customers the highest possible standard of service
facilities.

FROM BURMA SHELL TO BHARAT PETROLEUM.

Burmah Shell Refineries was incorporated as a company in 1952,


and established a refinery in Mahul .On 24 January 1976, the Burmah
Shell Group of Companies was taken over by the Government of India to
form Bharat Refineries Limited. On 1 August 1977, it was renamed
Bharat Petroleum Corporation Limited. It was also the first refinery to
process newly found indigenous crude Bombay High, in the country.

BHARAT PETROLEUM “then and after”

The company installed microprocessor based digital integrated


distributed control systems in catalytic reformers and introduced a new
solvent unit to replace the pneumatic control system in 1993.The
company also installed an advanced control system for its catalytic
control unit. The company then incorporated a joint venture company,
Bharat Oman Refineries, in 1994.There after BPCL signed a
memorandum of understanding (MOU) with Bank of Baroda in 1995 to
launch the first co-branded credit card in the country. In 1998, BPCL
entered into a joint venture with Petronet (India) for the construction of a
308 km pipeline from Kochi in Kerala to Karur in Tamil Nadu. The
following are a few achievement achieved by BHARAT PETROLEUM
CORPORATION LTD:
• McDonald's made an agreement with BPCL to open and
run restaurants at selected petrol pumps across the country
in 2000. Quicky's, the global coffee chain, followed suit in
2001, and began ton offer its services at BPCL stores.

• BPCL launched Speed '93, its own brand of petrol, in


2003. In the following year, BPCL diversified its
operations. The company entered into a business to
business e-commerce arrangement with IDBI Bank to
provide an automated payment and purchase process to
BPCL's corporate and industrial clients. The company also
tied up with Tata Consultancy Services to provide medical
advisory and counselling services at Ghar, the highway
retailing initiative of BPCL.

• Bharat Petroleum Corporation Limited and GAIL formed


another joint venture company, Central UP Gas, for
implementation of City Gas Projects in Delhi and Kanpur
in 2005.

• In 2006, the Government of the Sultanate of Oman signed


an Exploration and Production Sharing Agreement
(EPSA) for the on land exploration block 56 with the
consortium comprising BPCL, Oilex (Operator),
Hindustan Petroleum Corporation Limited, GAIL India
and Videocon Industries. In the same year, the company
acquired a 20% interest in an exploration block in
Australia.

• In September 2008, BPCL and Videocon Industries Ltd


acquired 50% stake in Brazil's EnCana Brasil Petroleo
Limeade.

• BPCL and GAIL (India) Limited announced to form a


joint venture company, God’s Own Gas Company, for
marketing compressed natural gas (CNG) and piped gas in
Kerala and Karnataka, in March 2008.
• In April 2008, BPCL announced the formation of joint
venture Company in consortium with other companies,
Shapoorji Pallonji Co Ltd and Nandan Biomatrix Ltd for
establishment of Bio Diesel Value Chain in Uttar Pradesh,
India. In the same month, BPCL and GAIL (India)
Limited signed an MOU for cooperation in transmission
and distribution of natural gas, LPG pipelines and city
gas.

• In August 2008, Punjab Energy Development Agency


(PEDA) signed a MoU with BPCL to setup one M/W
Solar Photovoltaic Power Plants at Lalru in Punjab, India.

KEY EMPLOYEES:

Name Job Title Board


Ashok Sinha Chairman& Managing Director Executive Board
S. Mohan Director, Human Resources Executive Board
S.Radhakrisnan Director, Marketing Executive Board
R K Singh Director, Refineries Executive Board
S K Joshi Director, Finance Executive Board
S K Barua Director Non Executive Board
Rama Bijapurkar Director Non Executive Board
A H Kalro Director Non Executive Board
N Venkiteswaran Director Non Executive Board
P H Kurian Director Non Executive Board
P K Sinha Director Non Executive Board

MAJOR PRODUCTS AND SERVICES:

Bharat Petroleum Corporation Limited (BPCL) refines, stores,


markets and distributes petroleum products. The company’s key products
and services include the following:

PRODUCTS:
I. Petrol

II. Diesel

III. LPG
IV. Gasoline

V. Kerosene

VI. Lubricants

VII. Aviation fuel

VIII. Fuels and solvents

SERVICES:
I. Convenience stores

II. ATMs

III. Car washes

IV. Free air and water

V. Lubricant top-ups

VI. Energy audits

VII. E-banking services

VIII. Consultancy and technical services

IX. Online ordering

1.1. B.COMPANY STUCTURE.

The older structure was functionally organized. There were


mainly four functions (refineries, marketing, finance and personnel) each
headed by an executive director reporting to the (CMD). Other support
departments like corporate affairs, legal, audit, vigilance, coordination
and company secretary were directly under the CMD. See Appendix 1 for
the organizational chart. The Director refinery was in charge of refinery,
corporate planning, JV refineries and special projects. Other than
corporate finance and marketing finance EDP was also under the Director
finance. In marketing, there were different departments for retail,
industry, LPG, lubricants and aviation segments. Corporate
communication was also under Director marketing.

The whole of India was divided into four regions and


further into 22 divisions. Each region was headed by a Regional
Manager who was in charge of all activities within the region and
reported to the Director marketing. Each region had a manager in charge
of each of regional personnel, regional engineering, regional industrial
customers, regional retail, and regional finance. Regional LPG was under
regional industrial customers. The division was the responsibility of the
Divisional Manager reporting to the Regional Manager. He had a
manager each for sales, operations and engineering. Each of these was
responsible for sales, depots and engineering respectively for all the
customer segments.

Across the marketing function, except for the corporate


departments (LPG, industrial customer, etc.) specifically looking after a
customer segment, every individual and role is focused on multiple
customer segments. For example any strategy addressing the industrial
customers originates from the Corporate Department (Industrial
Customer), goes via the Director Marketing, Regional Manager,
Divisional Manager to the Sales Officer. All of them are responsible for
multiple customer segments like retail, LPG, industrial, etc and deal with
different classes of customers. Hence there was very low customer
awareness in terms of the unique needs of the different customer
segments, with no single individual at the operational level having clarity
on any single customer segment. Moreover, the marketing strategy was
formulated by people who were far from the customer with very low
understanding of the customer they were targeting. The implementers
were responsible for diverse customers with a low understanding of the
logic of these strategies meant for each customer segment. Thus the old
structure had created a bottleneck between the strategy formulators and
implementers in terms of the regional structure, and between the field
staff and the corporate offices and refinery.

Activities of a business process are spread out across different


functions and levels of hierarchy, engaging many individuals. There was
a long chain of non value adding linkages between any two activities
targeting a business / customer. For example, when an industrial customer
gives a special order of lubes to the sales officer, the corporate lubes
purchases the base oil, plant blends it, S&D packs it and the sales officer
sells it. The Sales Officer would communicate the order to the Divisional
Manager, who passes it on to the Regional Manager. Then the order
would be routed to the Corporate Lubes for processing. Everyone
involved in the activities of this process belong to different functions and
hierarchy levels. This long chain of communication had led to a lack of
customer orientation, low awareness of customer needs and expectations
and slow response.
APPENDIX-1.ORGANISATIONAL STRUCTURE OLD AND
NEW.

THE GIVEN DIAGRAM SHOWS THE STUCTURE OF


BHARAT PETROLEUM OF BOTH STRUCTURAL AND
DIVISIONAL.

REGIONAL
HEAD.

REGIONAL REGIONAL REGIONAL REGIONAL REGIONAL


PERSONAL. ENGINEERING. S & D. SALES. FINANCE.

REGIONAL
L.P.G.

REGIONAL STRUCTURE OLD. (ABOVE)DIVISIONAL STUCRTURE (BELOW).

DIVISIONAL HEAD.

HEAD SALES.

MANAGER MANAGER
MANAGER SALES. OPERATIONS. ENGINEERING.

SALES OFFICER. DEPOTS. ENGINEERING.


CMD

DIRECTOR DIRECTOR
(REFINERIES). DIRECTOR DIRECTOR
(PERSONNEL)
MARKETING FINANCE.

CORPORATE
PERSONNEL
& ADMIN FINANCE
PLANNING
CORPORATE.
COMPANY
SECRATARY
JV HUMAN FINANCE
REFINEERIES RESOURCE. MARKETING.
CORPORATE
AFFAIRS.
SPECIAL
PORJECT. EDP

LEGAL

AVIATION.
REFINERY
AUDIT
LUBED
CORPORATE. S&D
CORPORATE
VIGILLANCE.
LPG
CORPORATE.
CORPORATE
COMMUNICATION
COORDINATION
SALES
CORPORATE.
INTERNAL
TRADE
E&P
MARKETING.
H.S.E

REGIONAL HEAD.

CORPORATE STRUCTURE OLD.


CMD.
DIRECTOR
(REFINERIES)
DIRECTOR DIRECTOR
DIRECTOR MARKETING. FINANCE.
PERSONNEL.
CORPORATE
FINANCE
PLANNING
CORPORATE Company
Secretary
JV
REFINEERIES HR CORPORATE
SERVICES. TREASURY Corporate
SPECIAL
Affairs
PROJECT.
INFORMATION
HR SYSTEM Legal
CORPORATE.
IT & SUPPLY

CORPORATE
R & D. STRATEGY
Audit

MUMBAI BRAND/CORPORA-
TE
REFINERY. COMMUNICATION

Vigilance
HSE

Coordination
E&P

IND/COMM LUBES LPG RETAIL AVIATION


BUSINESS. BUSINESS. BUSINESS. BUSINESS. BUSINESS.

CORPORATE STRATEGY NEW.


BHARAT PETROLEUM-THE NEW “SBU”FORM STRUCTURE

The new structure was focused on the business processes and


the customer. The new structure at the top management level is the same.
Five SBUs – Retail, Lubes, Industry/Commercial, LPG and Aviation are
customer centered SBUs and come under the director (marketing). The
sixth SBU, Refinery along with two new departments IT & Supply Chain
and R&D are under the director (refineries). Each SBU would have its
own HR, IS, finance, logistics, sales, engineering, etc. The number of
layers in the organization was reduced to four from six or seven.
The major change is the introduction of the territories covering a
smaller geographical area and focusing on specific customer segments. In
retail SBU the new structure had 66 territories reporting to the four
regional offices, where as in the earlier structure there were only 22
divisions which catered to all segments. In other SBUs the regional office
was removed and territories were designed to directly report to the SBU
heads. Each territory team leader was responsible for sales in the territory
only for a specific product. The territory structure was designed to enable
the field staff to focus on specific customer segments. Authority was also
delegated down the hierarchy and decision making pushed to the lowest
possible levels. Decisions earlier taken at the regional level were taken
now at the territory level. Further authority was delegated to the role and
not the hierarchy level. Administrative offices have been moved to supply
locations that consist of 125 terminals for main fuels and 35 LPG bottling
ones. In LPG SBU head office there are only nine personnel and across
the territories even managers at senior positions have been forced to get
business.

The new design incorporated recalibration of roles and


responsibilities and redeployment of more than two thousand people
(around one fifth of total employee strength) across the organization. It
created new roles at the front effectively using redundant manpower to
increase customer interface and interaction.

SOME SALIENT FEATURES OF THE NEW STRUCTURE ARE:

 Highly empowered work force

 Decentralized decision making

 De-linking of authority from hierarchical levels

 Orientation towards internal and external customers


 Regular market research and customer surveys

 Conscious brand building efforts

1.1. C. MARKETING.

Bharat petroleum understands people’s 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 BPCL’s 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.

FUELLING AUTOMOTIVES.

Vehicle owner’s are always on the lookout for new offerings


as well for tips & pointers to keep their vehicles in top shape. BPCL
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, BPCL 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
BPCL 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. BPCL
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, BPCL 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 removing
harmful deposits from all fuel metering systems and components. This
also reduces particle level, black smoke and provides longer engine life.

SERVICING THE CUSTOMER’S NEED.

BPCL 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.BPCL 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 .
BPCL share rewarding relationships with their customers
and building loyalty has been a centre of focus with them. Recognizing
the need of their customers to make 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.

CARING FOR CUSTOMER’S VEHICLE NEED.

BPCL 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. BPCL 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 BPCL’S reach to the nook & corner of the country they are always
near to their customers.

PARTNERING HIGHWAY JOURNEY.

On the highways, BPCL 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),Children’s 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.

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. Bharat Petroleum 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.BPCL 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 at
Bharat Petroleum endeavours to build and manage a strong brand image
reflecting Bharat Petroleum'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.

Bharat Petroleum 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, 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.

“ON 16TH APRIL, 2009 BPCL LIFTED MARKETING


COMPANY OF THE YEAR AWARD AGAIN AFTER 2008.”

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

1.1. D. FINANCE AND ECONOMIC.

BPCL is primarily an energy processing and marketing


company and a Public Sector Undertaking (PSU). The central
government of India holds a stake of 54.93% in the company and the
state government of Kerala has a shareholding of 0.86%. Although BPCL
export products to other countries, particularly those in the South Asian
region, BPCL’s focus on their principal and most important market, India,
is unwavering. It is projected that the energy needs and the demand of the
country will increase significantly in step with economic growth. The
demand for oil and petroleum products is also expected to increase
simultaneously. The Planning Commission of India has projected that
demand for oil will increase by over approximately 20% from 2005-06
levels by 2012.To meet the challenge of an evolving and growing market,
BPCL have designed and deployed various strategies that will help us not
only to meet the energy needs but also fulfil their responsibility to
shareholders and contribute towards inclusive growth. BPCL’s revenues
increased by about 12% though Profit after Tax (PAT) decreased by
12.26% when compared to previous years. Their total capital expenditure
was Rs.20.66 Billion for the financial year 2007-08, as compared to
Rs.18.34 billion during the year 2006-07. During the year 2007-08, the
average cost of Indian crude basket was significantly higher than the
corresponding figure of the previous year. Due to volatility in crude
prices, OMCs in India faced a considerable strain in their liquidity.
BPCL’s profits have suffered due to the rising under-recoveries arising
out of subsidies on SKO, domestic LPG, and also Motor Spirit and High
Speed Diesel under-recoveries due to price regulation by the government.
As a means to compensate this, Government of India set up a mechanism
for sharing this subsidy burden. Out of the total under recoveries, one-
third was shared by the PSUs in upstream sector through discounts on
crude purchased, one-third by Government’s Oil bonds and balance by
OMCs. New ideas are also being tested and tried in BPCL’s retail
business, so as to maximize the advantage that they possess by having
established retail outlets spread across the country. As a result of
aggressive marketing, the retail business was able to achieve an
impressive growth of 13% compared to the previous year.

1.1. E. HUMAN RESOURCE.

Starting in August 2002, Bharat Petroleum, under the aegis


of the Public Enterprises Selection Board, in association with the Hay
Group, conducted an empirical research study, the first of its kind, to
identify leadership competencies necessary for Indian CEOs. The study
was conducted under rigorous methods developed at the McClelland
Centre for Innovation and Research at Boston. These included criterion
sampling, Behavioural Event Interviews, expert panels, coding, concept
formation, performance outcome analysis and validation.

The outcome of that study is ‘The Indian CEO


Competency Model’, wherein Competencies for Success were drawn up,
providing keys to outstanding Indian Corporate Leadership in our time.
The model comprised 11 competencies, that can be arranged in four
groups or clusters, which are:

• SOCIAL RESPONSIBLE BUSINESS EXECELLENCE.


1. Adaptive Thinking.
2. Entrepreneurial Drive.
3. Excellence in Execution.
• ENERGIZING THE TEAM
1. Driving Change.
2. Team Leadership.
3. Empowerment with Accountability
• MANAGING ENVIRONMENT
1. Networking.
2. Organizational Awareness.
3. Stakeholder Influence.
• INNER STRENGTH.
1. Executive Maturity.
2. Transcending Self.

Qualities such as change and team leadership, accountability,


empowerment, networking and executive maturity are some of the
critical dimensions of leadership highlighted in this book. It also charts a
countrywide blueprint of how CEOs think, act and feel and exhibit
typical effective behaviours worthy of emulation. The findings of this
study would help in providing food for thought for existing leaders, as
well as developing future leaders and benchmarking their skill-sets,
strategies and successes. The few of other common human resource
activities undertaken by BPCL are as:

• Efficiently supervising a team of 150 members.

• Effective day-to-day office management.

• Ensuring complete logistics and administrative support for


conducting meetings.

• In charge of office correspondence and mail management functions.


• Training need analysis Induction programmes Arrangement;
Manpower/Recruitment planning·

• Preparation of annual targets for personnel.

• Coordinating Staff appraisals.

• Good Interpersonal skills; Adept at Indenting and inventory of


office stationery.

• Manifested expertise in organizing social functions for staff


members as a part of boosting industrial relation.

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1.1. E. OPERATIONS.

The core business operations of Bharat Petroleum are Petroleum


Refining. It belongs to the oil & gas operations industry. Although it
carries the ancient Sanskrit name for India (Bharat), Bharat Petroleum
Corporation Limited (BPCL) is a modern refining and distribution
company. It vies with Hindustan Petroleum for the #2 slot behind
Indian Oil. The company processes petroleum and petroleum products;
its refinery in Mumbai processes 260,000 barrels of crude per day. It also
controls refineries in Kochi and Numaligarh. BPCL sells engine oils and
gasolines, liquefied petroleum gas (LPG), and kerosene. It has more than
6,550 gas stations, more than 1,000 kerosene dealers, and a national
network of LPG distributors. The Indian government owns 55% of the
firm, although it plans to sell this stake as part of industry wide
deregulation. The various other operational functions of BPCL are as:

APRON FUEL MANAGEMENT SYSTEM & E-BIZ SOLUTION.

BPCL is the first and only oil company in India to implement


“Apron Fuel Management System” which is a powerful and
comprehensive system that combines the vehicle (Point of Sale) and
office support functions into a single seamless interface reducing human
intervention and enhancing accuracy. BPCL also provides E-Biz solution
to their customers.

OVERSEAS PROJECTS.

BPCL Aviation SBU has entered into a contract with Larsen &
Tourbo-ECC Division and is rendering its expertise to M/s L & T - ECC
Division for successful completion of “New Aviation Fuel Depot at
Kuwait for Kuwait Aviation Fuelling Company (KAFCO)”.The scope of
service includes Technical Consultancy by Aviation/Engineering &
Projects specialists having domain expertise, Preparation of Pre-
Commissioning and Commissioning procedures. BPCL is assisting in
performing Pre-Commissioning and Commissioning of entire facility at
KAFCO project, training of Owner's personnel in India (Class room
training) and on job training at KAFCO site, Kuwait, participation in
HAZOP/SIL/ALARP study and assistance to evaluate remedy on the
findings as advised by HAZOP committee chairman (i.e.
recommendations by 3rd party from that study), assistance in
Procurement related activities and preparations of Operations&
Maintenance and QC Manual.

HYDRANT OWNERS & OPERATOR AND EQUITY AT”CIAL”.

BPCL is the first oil company to participate in Greenfield airport


in India. BPCL hold equity stake in Cochin International Airport Ltd.
which is the first airport built under private-public participation and have
state of art hydrant refuelling system at the airport built by them.
--------------------------------------------------------------------

1.1. F.RESEARCH AND DEVELOPMENT.

Over the years, Bharat Petroleum continues to meet the


challenges of the rapidly changing environment, leading to changes in the
marketing of products and services. In all these changes, only one factor
has remained constant and has been the source of Bharat Petroleum's
strength and inspiration for any future innovations - Bharat Petroleum's
People. The feeling of ownership has facilitated all employees to
understand the complexity of the market and needs of the customers, and
respond to these needs with innovative initiatives and offerings.

Research and development Centre always on the forefront to


innovate, Bharat Petroleum is making distinct efforts towards Research
and Development (R and D). Besides the R and D facilities at the
Refinery and the Product Application Development Centre in Sewree in
Mumbai, a new state-of-the-art RandD Centre is being set up near Delhi.
The R and D Centre is being organised around three core groups –
Process and Technology Development, Product Application Development
and Environmental Engineering. A total outlay of Rs.3,000 million has
been planned to be spent in three phases up to the year 2003-04 on this
project.

BHARAT PETROLEUM- THE TECHNOLOGICAL EDGE.

Bharat Petroleum has always been on the forefront of


harnessing technology initiatives for BPCL has been on forefront in
harnessing technology. Maximising efficiency and achieving greater
customer satisfaction.
Bharat Petroleum is the first Public Sector Oil Company to
implement Enterprise wide Resource Planning (ERP) solutions - SAP.
The implementation project known as ENTRANS (Enterprise wide
Transformation) has been awarded the 'SAP Star Implementation Award',
with Bharat Petroleum having the distinction of executing the largest and
the most ambitious SAP project in India. The challenge of SAP
implementation was to ensure that all the integrated elements (of the
complex multi-modular integrated solutions that impact the entire
workflow of the organisation) work seamlessly across the length and
breadth of the country, including the remote locations. Providing online
connectivity in these remote locations, given the full-fledged IT network
infrastructure, was in itself a daunting task.

Bharat Petroleum is reaping the benefits of the integrated


system in many areas of its operations. The early gains of implementation
are in the areas of tracking customer-receivables, monitoring credit-
management, inventory management, besides easing the operations in a
large number of areas.

Furthermore, Bharat Petroleum has also set up one of the


biggest 'Centres of Excellence' in Asia to provide online support to the
end users and also work towards continuous improvement in business
processes and handle product upgrades and new generation products.

With SAP as the IT backbone, Bharat Petroleum plans to take


advantage of the Internet based capabilities along the entire value chain
with a Customer Relationship Management solution. A large data
warehouse project has also been implemented, which facilitates access to
real-time accurate information on key performance indicators at all
Bharat Petroleum locations. This enables the management to take
strategic and business decisions, thus ensuring value-added services,
better customer satisfaction and enhanced

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1.2. INDUSTRY PROFILE.

1.2. A. THE LUBRICANT MARKET.


The global lubricant market is generally competitive with
numerous manufacturers and marketers. Overall the western market may
be considered mature with a flat to declining overall volumes while there
is strong growth in the emerging economies. The lubricant marketers
generally pursue one or more of the following strategies when pursuing
business:

SPECIFICATION.

The lubricant is said to meet a certain specification. In the


consumer market, this is often supported by a logo, symbol or words that
inform the consumer that the lubricant marketer has obtained independent
verification of conformance to the specification. Examples of these
include the API’s donut logo or the NSF tick mark. The most widely
perceived is SAE viscosity specification, like SAE 10W-40. Lubricity
specifications are institute and manufacturer based. In the U.S. institute:
API S for petrol engines, API C for diesel engines. For 2007 the current
specifications are API SM and API CJ. Higher second letter marks better
oil properties, like lower engine wear supported by tests. In EU the
ACEA specifications are used. There are classes A, B, C, and E with
number following the letter. Japan introduced the JASO specification for
motorbike engines. In the industrial market place the specification may
take the form of a legal contract to supply a conforming fluid or
purchasers may choose to buy on the basis of a manufacturers own
published specification.

ORIGINAL EQUIPMENT MANUFACTURER (O.E.M) APPROVAL.

Specifications often denote a minimum acceptable performance


levels. Thus many equipment manufacturers add on their own particular
requirements or tighten the tolerance on a general specification to meet
their particular needs (or doing a different set of tests or using
different/own test bed engine). This gives the lubricant marketer an
avenue to differentiate their product by designing it to meet an OEM
specification. Often, the OEM carries out extensive testing and maintains
an active list of approved products. This is a powerful marketing tool in
the lubricant marketplace. Text on the back of the motor oil label usually
has a list of conformity to some OEM specifications, such as MB, MAN,
Volvo, Cummins, VW, BMW or others. Manufactures may have vastly
different specifications for the range of engines they make; one may not
be completely suitable for some other.

PERFORMANCE.
The lubricant marketer claims benefits for the customer based
on the superior performance of the lubricant. Such marketing is supported
by glamorous advertising, sponsorships of typically sporting events and
endorsements. Unfortunately broad performance claims are common in
the consumer marketplace, which are difficult or impossible for a typical
consumer to verify. In the B2B market place the marketer is normally
expected to show data that supports the claims, hence reducing the use of
broad claims. Increasing performance, reducing wear and fuel
consumption is also aim of the later API, ACEA and car manufacturer oil
specifications, so lubricant marketers can back their claims by doing
extensive (and expensive) testing.

LONGEVITY.

The marketer claims that the lubricant maintains its performance


over a longer period of time. For example in the consumer market, a
typical motor oil change interval is around the 3000-6000 miles (7500-
15000 km). The lubricant marketer may offer a lubricant that lasts for
12000 (30000km) miles or more to convince a user to pay a premium.
Typically, the consumer would need to check or balance the longer life
and any warranties offered by the lubricant manufacturer with the
possible loss of equipment manufacturer warranties by not following its
schedule. Many car and engine manufacturers support extended drain
intervals, but request extended drain interval certified oil used in that
case; and sometimes a special oil filter. Example: In older Mercedes-Benz
engines and in truck engines one can use engine oil MB 228.1 for basic
drain interval. Engine oils conforming with higher specification MB
228.3 may be used twice as long, oil of MB 228.5 specification 3x longer.
Note that the oil drain interval is valid for new engine with fuel
conforming car manufacturer specification. When using lower grade fuel,
or worn engine the oil change interval has to shorten accordingly. In
general oils approved for extended use are of higher specification and
reduce wear. In the industrial market place the longevity is generally
measured in time units and the lubricant marketer can suffer large
financial penalties if their claims are not substantiated.

EFFICIENCY.

The lubricant marketer claims improved equipment efficiency


when compared to rival products or technologies, the claim is usually
valid when comparing lubricant of higher specification with previous
grade. Typically the efficiency is proved by showing a reduction in
energy costs to operate the system. Guaranteeing improved efficiency is
the goal of some oil test specifications such as API CI-4 Plus for diesel
engines. Some car/engine manufacturers also specifically request certain
higher efficiency level for lubricants for extended drain intervals.

OPERATIONAL TOLERANCE.

The lubricant is claimed to cope with specific operational


environment needs. Some common environments include dry, wet, cold,
hot, fire risk, high load, high or low speed, chemical compatibility,
atmospheric compatibility, pressure or vacuum and various combinations.
The usual thermal characteristics are outlined with SAE viscosity given
for 100°C, like SAE 30, SAE 40. For low temperature viscosity the SAE-
xxW mark is used. Both markings can be combined together to form a
SAE 0W-60 for example. Viscosity index (VI) marks viscosity change
with temperature, with higher VI numbers being more temperature stable.

ECONOMY.

The marketer offers a lubricant at a lower cost than rivals


either in the same grade or a similar one that will fill the purpose for
lesser price. (Stationary installations with short drain intervals.)
Alternative may be offering a more expensive lubricant and promise
return in lower wear, specific fuel consumption or longer drain intervals.
(Expensive machinery, un-affordable downtimes.)

COMPOSITION.

The marketer claims novel composition of the lubricant which


improves some tangible performance over its rivals. Typically the
technology is protected via formal patents or other intellectual property
protection mechanism to prevent rivals from copying. Lot of claims in
this area are simple marketing buzzwords, since most of them are related
to a manufacturer specific process naming (which achieves similar results
than other ones) but the competition is prohibited from using a trademark.

QUALITY.
The marketer claims broad superior quality of its lubricant
with no factual evidence. The quality is “proven” by references to famous
brand, sporting figure, racing team, some professional endorsement or
some similar subjective claim. All motor oil labels wear mark similar to
"of outstanding quality" or "quality additives," the actual comparative
evidence is always lacking.

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 India’s 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 Oil’s Research and
Development Centre. It 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 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 country’s largest Lube Refinery, producing
Lube Base Oils of international standards. With a capacity of 335,000
Metric Tonnes. This refinery accounts for over 40% of the country’s 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 making 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, 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 an installed 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.


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.The refinery 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
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 making MRPL a majority-held subsidiary of ONGC. The lenders
also agreed 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 ONGC’s holding in MRPL to 71.62
percent.
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-
PART -2.

OBJECTIVES, SCOPES, RESEARCH


METHODOLOGY, DATA ANALYSIS,
FINDINGS AND CONCLUSIONS.

2.1. OBJECTIVE OF THE STUDY.

THE OBJECTIVE OF THE STUDY FOR INDUTRIES


ARE TO FIND OUT:
• THE RELEVANCE OF LUBRICANTS USED IN
ACCORDANCE WITH THE PRODUCT THAT IS BEING
MANUFACTURED IN RESPECTIVE INDUSTRY.
• CONSUMPTION OF LUBRICANTS IN INDUSTRIES BASED
ON PREFERENCES, PRIORITY AND INDIVIDUALITY.
• REQUIREMENT ON LUBRICANTS IN SPONGE IRON,
STEEL AND ANCIALLARY INDUSTRIES.
• CONSUMPTION OF LUBRICANTS ACCORDING TO THEIR
VISCOSITY GRADES.

THE OBJECTIVE OF THE STUDY FOR


RETAIL(BAZAAR) MARKET ARE TO FIND OUT:

• THE BRANDS WHICH ARE BEING SOLD IN THE MARKET


OF THE ABOVE MENTIONED DISTRICTS.
• THE CATEGORY OF LUBRICANT IS HAVING WHICH IS
HAVING MAXIMUM SALES.
• THE AWARENESS OF “MAK”LUBRICANT AMONG
RETAILERS AND CONSUMERS.
• THE PARAMETERS ON WHICH THE RETAILRES DECIDE
FOR KEEPING A PARTICULAR BRAND OF LUBRICANT
FOR SELLING.
• THE MAXIMUM SELLING PACK SIZES SOLD IN BO TH
THE DISTRICTS.

2.2. SCOPES AND LIMITATIONS OF THE STUDY.

SCOPES OF THE STUDY.

• THE STUDY COVERS ALL THE SPONGE IRON,STEEL


AND ANCIALLARY INDUSTRIES AS WELL AS ALL THE
RETAILERS IN ANGUL AND DHANKANAL DISTRICT.
• THIS STUDY COVERS THE OPPORTUNITY ANALYSIS
OF “MAK”LUBRICANT OF BHARAT PETROLEUM IN
SPONGE IRON, STEEL AND ANCIALLARY INDUSTRIES
AS WELL AS IN RETAIL MARKET.

• THE STUDY ALSO COVERS ANALYSIS OF INDUSTRIES


REQUIREMENT AND CONSUMPTION OF LUBRICANTS
IN INDUSTRIES AS WELL AS AWARENESS,
PERCEPTION AND CONSUMPTION OF LUBRICANTS BY
COMMON END-USERS THROUGH RETAILERS.

• THE SURVEY HAS PROVIDED THE COMPANY WITH


MUCH NEW LUBRICANT RELATED INFORMATION OF
INDUSTRIES AND OTHER BUSINESS CONTACTS WHO
MIGHT BE POTENTIAL CUSTOMERS OF BHARAT
PETROLEUM CORPORATION LIMITED.

• THIS SURVEY ALSO PROVIDES AN INSIGHT ABOUT


THE PRIORITIZATION FACTORS OF THE INDUSTRIES
AND RETAILERS FOR COMSUMING AND SELLING
DECISION RESPECTIVELY.

• FOR RETAIL MARKET THE SURVEY HAS ALSO


PROVIDED THE COMPANY THE NUMBER OF
DISTRIBUTORS IN EVERY BLOCK AS WELL AS THE
DEMAND OF THE CUSTOMERS IN THOSE BLOCKS.

LIMITATIONS OF THE STUDY.

• LACK OF INTEREST AND ENTHUSIASTIC RESPONSES


MAY HAVE ALLOWED BIASES IN THIS REPORT IN THE
FORM OF “NON-RESPONSIVE ERROR”.

• CORRECTNESS OF THIS REPORT IS RESTRICTED AND


LIMITE DBY THE DEGREE OF AUTHENTICITY OF DATA
COLLECTED AND SINCERITY AND HONESTY OF
RESPONDENTS.

• AREA OF STUDY IS RESTRICTED TO ANGUL AND


DHENKANAL DISTRICT OF ORISSA ONLY WHICH IS A
MAJOR LIMITATION.THE NATIONAL SCENARIOMAY
BE TOTALLY DIFFERENT FROM THE RESULTS OF THE
ABOVE MENTIONED AREAS.

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2.3. RESEARCH METHODOLGY.

METHODOLOGY and APPROACH.

The study was qualitative in nature based on industrial and


retailer consumption and stock keeping units decision respectively. Field
research was 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 SOURCE – Primary data source as new facts and figures are
being collected from the project.

SAMPLING PLAN.

The main target area for the purpose of collecting the sample for
the study was ANGUL and DHENKANAL where the main target
population was SPONGE IRON STEEL & ANILLARY INDUSTRIES
and RETAIL SHOPS selling lubricants to consumers and end-users.
Finally PROBABLISTIC 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


and retailers where each consisted OPEN-ENDED, CLOSE-ENDED,
CHECKLISTS and STRAIGHT-FORWARD TYPE QUESTIONS. The
mode of collecting the data was basically interview-administered and
face to face 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 of


lubricants in sponge iron steel and ancillary industries. The main purpose
of the 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
analysis we were also able to find the priority of parameters which helps
in making an industry’s 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
level monitoring, average monthly consumption of industries for
lubricants. The sample for the study of the above mentioned parameters
were about 41 industries both from ANGUL and DHENKANAL.

The following are the analyzed parameters which are known


to be significant for industries in terms of consumption, requirement:

PARAMETERS WHICH DECIDES TO BUY LUBRICANTS.

From the research it was found that out of 41 industries(both


small and large scale) 27 buy their required portion of lubricants on the
basis of PRICE factor, similarly 23 does the same on SERVICE whereas
11 and 13 are for RECOMMENDATION and OTHERS respectively. The
parameter “OTHER” includes sub-parameters like that of QUALITY,
SATISFACTION etc.

The given graphical representation gives the best over view


of the parameters on which all the industries in ANGUL and
DHENKANAL decide their process of buying lubricants as for the
purposes of consumptions and requirements:

So, finally it can be concluding that most of the industries


(irrespective of their size-large, medium, small scale) mainly put emphasis
on PRICE and SERVICE as their primary and RECOMMENDATION and
OTHER factors as their secondary priority.
For district wise analysis of the parameters for buying lubricants, it
was found that most of the industries irrespective of their size mostly had
PRICE, SERVICE and OTHER (SATISFACTION, QUALITY) as their
primary priority and RECOMMENDATION as secondary priority. This
mentioned prioritizations of parameters were found for ANGUL district.
The following graph gives the best view of the parameters that the
industries in ANGUL on an average takes for buying lubricants for the
purpose of consumption and requirements of lubricants in their respective
industries:

PARAMETERS FOR INDUSTRIES IN ANGUL.


In case of industries in DHENKANAL district the scenario is a bit
different than that off ANGUL district. Here the industries have a different
priority in case of buying lubricants for their industries.
PARAMETERS FOR INDUSTRIES IN DHENKANAL

From the above graph only it is quite clear that PRICE comes
as first priority followed by SERVICE,RECOMMENDATION and
OTHER as second ,third and last priority respectively for industries as for
the consumption of lubricants.

SOURCE OF LUBRICANTS.

On a total of the two districts it was found that on an average


most of the industries get their portion of supplies from distributors,
While the major half of the remaining portion get s from direct companies
and the remaining small portion from other sources irrespective of
distributors and direct 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 of
lubricants from distributors whereas 12 and 2 gets from direct company
and other sources respectively.
On a district wise analysis of sourcing of lubricants on average,it
was more or less same for the industries in both the districts,depending
on the total number of industries in each district(DHENKANAL have
more industries as compared to that of ANGUL). The former graph
expalins the sourcing of lubricants by industries in ANGUL district
whereas the later GRAPH shows that of DHENKANAL district:

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 any
performance level of lubricants in their respective industries after
consumption. It was clear that only 17 out of all the industries in both
districts measures the level of performance of lubricants, whereas as a
majority of 22 never measures and only a mere 4 out of all measure
performance at times. The under given graph gives the clear picture of
measurement of lubricants by all the industries in both the district:

PERFORMANCE LEVEL MONITORING.

But the scenario for the same was very significantly different
when analysis was being made on the district level. The industries in
ANGUL came out to be more aware of the monitoring performance level
of lubricants where as for DHENKANAL the result shows no process of
monitoring performance level. Out of all the industries in ANGUL almost
11 do monitor performance 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 does not monitor and only a mere 9 of the total monitor
performance level but that too at times and not on regular basis. The
following graphical representation best gives the view of performance
level monitoring in both the districts separately.
PERFORMANCE MONITORING OF INDUSTRIES IN ANGUL.

PERFORMANCE LEVEL MONITORING BY INDUSTRIES IN


DHENKANAL.
The district wise requirement of lubricants for industries on
a total basis is 145756litres of lubricants in ANGUL; where as the total
consumption of lubricants by industries in DHENKANAL was 97236
litres. The difference between the total consumption of lubricants in the
two districts is due to the fact that DHENKANAL has more number of
large, medium and small scale industries as compared to that of that of
ANGUL.The consumption of lubricants such as hydraulic oil, turbine
oil, axile oil, air lube transmission oil are also at much more level in
ANGUL as compared to that of industries in DHENKANAL.

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2.4. B.RETAIL MARKET (BAZAAR).

The project perambulates round the bazaar potential


assessment of lubricant for ANGUL and DHENKANL district. It was
being assigned to carry out a survey of all the retailers in the two districts;
to begin with I have classified the ANGUL district into eight
BLOCKS/TEHSIL and DHENKANAL into nine BLOCK/TEHSIL.There
were 78 and 56 retailers in both ANGUL and DHENKANAL district
respectively. The analysis is based on certain parameters and the survey
was carried out through questionnaire, (being the medium of exploration).

The total quantity of lubricant sold in ANGUL district is


62580 litres whereas the total for the same was 44725 litres in
DHENKANAL district. This further counts for an average of
813 litres of lubricants products for retailers in ANGUL whereas
the average sales of retailers in DHENAKANL is 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
second followed by HPCL as third and VEEDOL as fourth.PENSOL too
have a good portion market potential despite being a local brand.Various
other local brands also have a good market composition.

On comparing the figures districtwise also the results were same


as above.The folloowing are the graphs of retailers for both ANGUL nad
DHANKANAL district:

FOR ANGUL DISTRICT.


FOR DHENKANAL DISTRICT.

MAXIMUM SELLING CATEGORY.

The graph under given, gives a brief idea about the maximum selling
lubricant category in both the districts:
The above graph clearly demonstrates that 2 wheel lubricant
products 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
the total are maximum selling 2 wheel vehicle lubricant produtcs.2 wheel
vehicle products are then followed by diesel vehicle lubricant products
counting to 64,which is due to the fact that both ANGUL nad
DHENAKANL are industrial areas with a huge amount of heavy vehicles
movement.Then comes the category of 4-wheelers amounting to 59 out of
all the retailers.This scenario is same for both the districts when analysis
is being made on district wise,where for ANGUL 40,39,37,1,1 are for 2-
wh,diesel,4-wh,coolant and grease respectively and 38,22,19,0,0 for 2-
wh,diesel,4-wh,coolant,grease respectively in DHENKANAL .

The following graphs give the vivid picture of the


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

MAXIMUM SELLING PRODUCT CATEGORY IN ANGUL.


MAXIMUM SELLING PRODUCT CATEGORY FOR DHENKANAL.

MAXIMUM SELLING PACK SIZES.

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

MAXIMUM SELLING PACK SIZES FOR BOTH THE DISTRICT.


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

While doing the analysis on district level, the results are quite
different. For ANGUL 7-20 litre pack are still the majority selling pack
sizes whereas uder 1 litre and 1-5 litre packs are coming together in
second position and finally barrel with nominal sales. In case of
DHENAKANL district packs of under-1 litre is maximum selling and 1-5
litres and 7-20 litres are second and third higest selling category
respectively with 42 and 20 points.

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

MAXIMUM SELLING PACK SIZES FOR ANGUL.


MAXIMUM SELLING PACK SIZES FOR DHENAKANL.

PARAMETERS FOR SELECTING A BRAND FOR SELLING.

Here we are having several parameters that are preferred by the


retailers while they keep the brand in their counters. The parameters are
Price or MRP of the product, Profitability or Margin that is given by the
company to the retailers, Market demand of the product, Payment term of
the company to the retailers, Scheme or incentives that are given to the
retailers for selling their brands and at the last but not the least quality of
the product.
PARAMETERS FOR SELECTING A BRAND FOR SELLING .

From the above diagram only is clear that demand is the most
important parameter which decides for a reatiler to keep a brand for the
purpose of selling to their customer.After demand its margin that comes
second and wuality as third parameter for the retailers.The scenario is
same for the two districts when analysis is being done on individual
district level.

The following are the graph represents the individual district


wise parameter selection of brands for retailers:
ANGUL

DHENKANAL.
“MAK” AWARENESS.

MAK AWARENESS IN BOTH THE DISTRICTS.

Out of 138 retailers as respondent 132 is well aware of


MAK brand. So this figure is quite significant which represents the
awareness of MAK brand amongst the market of the two districts. The
figures are quite same when analysis is done on district level.

ANGUL
DHENAKANAL.

Hence it is quite clear that the awareness of MAK


amongst the retailers in both the district is quite high.

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2.5.FINDINGS .

FINDINGS FROM INDUSTRIES .

For industries, the requirements of lubricants basically varied as


per the nature of the products that are being manufactured which is
typically high for large scale industries like BHUSHAN STEEL &
POWER PVT.LTD, NAVA BHARAT VENTURES LTD etc.Similarly the
rate consumption is low for medium and small scale industries. From the
analysis it was quite clear that irrespective of the size of industries, PRICE
always remained the major parameter which helps them for the purpose of
buying lubricants. The same was found out when individual analysis was
done on each district. It is also found from the analysis of both the
districts in cumulative as well as individual form that a majority number
of industries are sourcing their lubricant requirements from distributors
rather than directly from company of the brand they are consuming. From
the survey it can be concluded that the average consumption of lubricants
in ANGUL district is nearly about 11470 litres whereas the consumption
for industries in DHENKANAL is 2065 litres which 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
in of lubricants in bazaar market. Similarly SERVO comes second and
thereafter HPCL, VEEDOL, PENSOL are ranked respectively as third,
fourth and fifth respectively. The scenario was same when individual
district wise analysis was done on ANGUL but only the fifth position was
being taken by VALVOLINE in DHENKANAL district.
In retail market, for both the districts taken together as well as on
individual level, the total sale of Diesel vehicle lubricant products are
quite dominant, after which 2-wheel lubricant products have the second
majority. This is due to the fact that both ANGUL and DHENKANAL are
industrial area and hence sale of four wheel lubes product are coming
third.
DEMAND has been one of the major parameter for retailers for
which they keep stocks of a particular brand of lubricant for selling it to
the market. Hence it can be inter linked that CASTROL has the maximum
demand as it is the highest selling brand in both the districts individually.
After demand, MARGIN is the second most important parameter for
retailers for keeping a brand. This is so because it is quite natural that
margin is the parameter that gives profit to the retailers.
CONCLUSION.

• Consumption and requirement of lubes in industries varies as per


the respective size of the industries i.e. large, medium and small
scale.
• Price is one of the important parameter for the industries based
upon which they decide for buying lubricants.
• Most of industries in both ANGUL and DHENKANAL are
sourcing their lubes requirements from distributors rather than
directly from the company.
• Cumulatively for both the districts the process of checking the
performance level in respective industries is very low, but its
different for that off ANGUL district where level of performance is
continuously checked and the same is not done in DHENKANAL.
• For the bazaar market 2 wheel lubes product are the maximum
selling after which diesel products comes second due to the fact that
both ANGUL and DHENKANAL are typical industrial belt.
• Similarly the most sold pack sizes are that of 7-20 litres pack which
resembles the potential sale of diesel vehicle lubricants.
• The important parameter for selecting a particular brand for selling
by the retailers is demand and then is margin.
• The awareness of MAK brand is quite high in both the districts.

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