A

CPP Report
Titled

BHARAT PETROLEUM CORPORATION LIMITED

For fulfilling the requirement of the award of degree of BBA

Subject CPP (IMS-306)

Under the Supervision of

Dr. Jai Kishan Chandel

Assistant Professor
Submitted to:

Submitted by:

The Director

Yavnika
Roll No.49
MBA (5Yr.) 3rd yr
RegistrationNo.

Institute of Management Studies

Kurukshetra University, Kurukshetra
(Sept. 2014)

[1]

Declaration

I Yavnika, hereby declare that the project entitled "Bharat Petroleum Corporation Limited,
assigned by Institute of Management Studies for the fulfillment of MBA 5year course from
Institute of Management Studies Kurukshetra University.

It is original work done by me with the help of my teachers and friends.

This project report has not been submitted to any other Institute or University for award of any
other degree. `

Yavnika
Roll No. 49

[2]

Acknowledgement

I feel immense pleasure to give the credit of my project work not only to one individual effort of
all those who concern with it. I want to thanks to all those individual who guided me to move on
the track.
The project entitled Bharat Petroleum Corporation Limited
I am gratefully indebted to Dr. J.K Chandel (Assistant Professor) for providing me all the
necessary help and requirement guidelines for the completion of my project and also for the
valuable time that he gave me from his schedule.

YAVNIKA SHARMA

[3]

CONTENTS

CHAPTER
NO.

TITLE OF THE CHAPTER

PETROLEUM SECTOR IN INDIA

1.1 HISTORY
1.2 PLAYERS IN THE SECTOR

BHARAT PETROLEUM CORPORATION LTD.

2.1 INTRODUCTION
2.2 ORGANISATIONAL STRUCTURE
2.3 PRODUCTS
2.4 SERVICES

ANALYSIS & DISCUSSION

3.1 FINANCIAL ANALYSIS
3.2 MAKETING ANALYSIS

SWOT ANALYSIS & CONCLUSION

LEARNING FROM THE REPORT

REFERENCES

CHAPTER-1
PETROLEUM SECTOR IN INDIA

[4]

PAGE
NO.

1.1 Introduction
Sector Overview:
The development of the Indian Petroleum industry began on a very slow note. It started
mainly in the northeastern part of India especially in the place called Digboi in the state of
Assam. Until the 1970s, the production of petroleum and the exploration of new locations for
extraction of petroleum were mainly restricted to the northeastern state in India. However, an
important advancement in the Indian petroleum industry came with the passing of Industrial
Policy Resolution in 1956, which emphasized focus on the growth and promotion of industries in
India. Another major incident was the discovery of Bombay High, which changed the scenario of
the India petroleum industry drastically. The India petroleum industry was sponsored completely
by government, and the management control of the petroleum industry and all its related activity
was entirely with the government. The petroleum industry has the most significant role to play in
changing the Indian economy from an agrarian economy to an Industrial economy.
The adaptation of liberalization and privatization, in July 1991 changed the situation
again. Along with this the overall economy of India grew. And the demand for petroleum
products increased at an annual rate of about 5.5%.The demand for petroleum and petroleum
products still continues to grow, and there is great potential for investors to invest in the sector
and gain valuable returns while meeting the increasing demands for the petroleum products. The
petroleum industry in India is particulars favorable for foreign investment because the industry is
one of the fastest growing segments, and has shown a staggering growth rate of around 13% in
the recent past. Today it also boasts technology of Indian standards, easy availability of
infrastructure at very cheap rate. The foreign trade in petroleum and petroleum products in the
recent past have registered significant growth. It has thus attracted new foreign investments.
Some of the main petroleum products that are manufactured for trade with foreign countries are
petroleum gases, gasoil, crude oil, ethane, and kerosene. The petroleum industry has contributed
to the manufacturing industry.
Bharat Petroleum Corporation Limited (BPCL) is an Indian statecontrolled oil and gas company headquartered in Mumbai, Maharashtra. BPCL has been ranked
225th in the Fortune Global 500 rankings of the world's biggest corporations for the year 2012.

History
[5]

In 1989 during vast industrial development, an important player in the South Asian
market was the Burma Oil Company. Though incorporated in Scotland in 1886, the company
grew out of the enterprises of the Chef Rohit Oil Company, which had been formed in 1871 to
refine crude oil produced from primitive hand dug wells in Upper Burma.
In 1928, Asiatic Petroleum Company (India) started cooperation with Burma Oil
Company. This alliance led to the formation of Burma-Shell Oil Storage and Distributing
Company of India Limited. Burma Shell began its operations with import and marketing of
Kerosene.
On 24 January 1976, the Burma Shell 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.
.
OIL:
Oil is any neutral, chemical substance, there is a viscous liquid at ambient temperatures, and
is immiscible with water but soluble in alcohols or ethers. Oils have a high carbon and hydrogen
content

and

are

usually

flammable

and slippery.

Oils

may

be animal, vegetable,

or petrochemical in origin, and may be volatile or non-volatile

Types of Oil:

Organic oils
Organic oils are produced in remarkable diversity by plants, animals, and other organisms
through natural metabolic processes. Lipid is the scientific term for the fatty acids, steroids and
similar chemicals often found in the oils produced by living things, while oil refers to an overall
mixture of chemicals. Organic oils may also contain chemicals other than lipids,
including proteins, waxes and alkaloids.
Lipids can be classified by the way that they are made by an organism, their chemical structure
and their limited solubility in water compared to oils. They have a high carbon and hydrogen
[6]

content and are considerably lacking in oxygen compared to other organic compounds and
minerals; they tend to be relatively nonpolar molecules, but may include both polar and nonpolar
regions as in the case of phospholipids and steroids.

Mineral oils

Crude oil, or petroleum, and its refined components, collectively termed petrochemicals, are
crucial resources in the modern economy. Crude oil originates from ancient fossilized organic
materials, such as zooplankton and algae, which geochemical processes convert into oil The
name is a misnomer, in that minerals are not the source of the oil - ancient plants and animals
are. Mineral oil is organic. However, it is classified as "mineral oil" instead of as "organic oil"
because its organic origin is remote (and was unknown at the time of its discovery), and because
it is obtained in the vicinity of rocks, underground traps, and sands. Mineral oil also refers to
several specific distillates of crude oil.
Cooking oils are derived either from animal fat, as butter, lard and other types, or plant oils from
the olive, maize, sunflower and many other species.

Cosmetics

Oils are applied to hair to give it a lustrous look, to prevent tangles and roughness and to
stabilize the hair to promote growth See Hair conditioner.

Religion

Oils are commonly used in ritual anointments. As a particular example, holy anointing oil has
been an important ritual liquid for Judaism and Christianity.

Painting

[7]

Color pigments are easily suspended in oil, making it suitable as a supporting medium for paints.
The oldest known extant oil paintings date from 650 AD

Heat transfer

Oils are used as coolants in oil cooling, for instance in electric transformers. Oils are also used to
enhance heating in other applications, such as cooking

Lubrication

Oils are commonly used as lubricants. Mineral oils are more commonly used as machine
lubricants than biological oils are. Whale oil is preferred for lubricating clocks, because it does
not evaporate, leaving dust, although its use was banned in 1980. As no suitable substitute is
available, whale oil is still used in space (in small quantities).

Fuel

Some oils burn in liquid or aerosol form, generating light, and heat which can be used
directly or converted into other forms of energy such as electricity or mechanical work. To obtain
many fuel oils, crude oil is pumped from the ground and is shipped via oil tanker or a pipeline to
an oil refinery. There, it is converted from crude oil to diesel fuel, ethane (and other shortchainalkanes ), fuel oils (gasoline ,jet fuel kerosene, and liquefied petroleum gas. A 42 gallon
barrel (U.S.) of crude oil produces approximately 10benzene gallons of diesel, 4 gallons of jet
fuel, 19 gallons of gasoline, 7 gallons of other products, 3 gallons split between heavy fuel oil
and liquefied petroleum gases, and 2 gallons of heating oil. The total production of a barrel of
crude into various products results in an increase to 45 gallons Not all oils used as fuels are
mineral oils, see biodiesel and vegetable oil fuel.
[8]

In the 18th and 19th centuries, whale oil was commonly used for lamps, which was replaced with
natural gas and then electricity.

Chemical feedstock

Crude oil can be refined into a wide variety of component hydrocarbons. Petrochemicals are the
refined components of crude oil and the chemical products made from them. They are used
asdetergents, fertilizers, medicines, paints, plastics, synthetic fibers, and synthetic rubber.

Gas

Gas is one of the four fundamental states of matter (the others being solid, liquid,
and plasma). A pure

gas

be

made

like neon), elemental molecules

made

from

or compound molecules

from

made

may

up

variety

of

one
of

individual

gas

or

type

of

atom

atoms

(e.g. carbon

atomic

gas

(e.g. oxygen),
dioxide).

gas mixture would contain a variety of pure gases much like the air. What distinguishes a gas
from liquids and solids is the vast separation of the individual gas particles. This separation
usually makes a colorless gas invisible to the human observer. The interaction of gas particles in
the presence of electric and gravitational fields are considered negligible as indicated by the
constant velocity vectors in the image.
The gaseous state of matter is found between the liquid and plasma states, the latter of
which provides the upper temperature boundary for gases. Bounding the lower end of
the temperature scale

lie

degenerative

quantum

gases [ which

are

gaining

increasing

attention High-density atomic gases super cooled to incredibly low temperatures are classified by
their statistical behavior as either a Bose gas or a Fermi gas. For a comprehensive listing of these
exotic states of matter see list of states of matter.

Elemental gases

The only chemical elements which are stable multi atom homonuclear molecules at standard
temperature and pressure (STP), are hydrogen (H2), nitrogen (N2) and oxygen (O2); plus two
[9]

halogens, fluorine (F2)

and chlorine (Cl2). These gases, when grouped together with

the monatomic noble gases ; which

Are helium (He), neon (Ne), argon (Ar), krypton (Kr), xenon (Xe) and radon(Rn); are called
"elemental gases". Alternatively they are sometimes known as "molecular gases" to distinguish
them from molecules that are also chemical compounds.

(1.2) Players in the sector

Public sector corporations dominate the Indian exploration and production sector. In terms of the
percentage share in total production Oil and Natural Gas Corporation (ONGC) accounts for the
highest share.
The second major player in the sector is also a public sector undertaking Oil India Limited
(OIL). Both of these undertakings account for about more than 70% of the total market. The
remaining share of the pie is cluttered with various private players in the market.
Names of the key players in the oil and gas industry in India are:Oil India Ltd., Oil and Natural Gas Commission, Indian Oil Corporation, Hindustan Petroleum
Corporation Ltd., Indian oil corporation Ltd., Gas Authority of India Ltd., Reliance Industries
Ltd., Essar Oil, Adani Gas, Petronet LNG, Cairn Energy, Shell, British Gas and BP.

Top 10 Oil and Gas companies in India

1. Indian oil
At top of the list is Indian Oil. The company is ranked 116 th on the Fortune Global 500 listing
of the worlds largest corporate and is at the apex in India. The company has an impressive
employee strength of 34,233 and ranked 83rd position in the Fortune Global500 for the year
2012.
[10]

The company performs operation across the entire hydrocarbon chain such as in the sectors of
refining, pipeline transportation, marketing of petroleum products, production of crude oil &gas,
marketing of natural gas & petrochemicals. The company had a sales turnover of Rs 409957
crore and a profit of Rs 3955 crore for the year 2011-12.
2. ONGC
At second number is the ONGC (Oil & Natural Gas Commission). One of the largest in Asia the
company was founded on 14 august 1956 by the Indian state. The company is ranked 357th in
the Fortune Global 500 ranking for the year 2011-12. The company is also one of the top 250
Global Energy Company by Platts. The company produces around 77% of Indias crude oil
which meets around 30% of countrys demand. The headquarters of the company are located in
Dehradun, India.
3. Bharat Petroleum Corporation Limited
Third in the list is the BPCL. The company was nationalized in 1976 .The company is one of the
single digit representative in both Fortune 500 and Forbes 2000 listing. The company is ranked
287 in both. The company supplies fuel to a no. of domestic and international airlines.
4. Reliance Petroleum Ltd
Next on the list is The Reliance Group founded by Dhirubhai H. Ambani. The company is Indias
largest private sector enterprise with yearly revenues of over US$ 6 billion. The company is a
Fortune Global 500 company. Reliance Petroleum Ltd carries out its major operations at the
Jamnagar refinery. The refinery comprises of petroleum refineries and petrochemical plants. The
refinery has a capacity of 27 million tonnes per annum.
5. Essar Oil Limited
Essar Oil Limited is next on the list. The company has its presence all over the country through
its 1600 oil retail outlets that are located throughout the length and breadth of the country. The
company owns 50 percent stake in Kenya Petroleum refineries which takes its capacity of global
[11]

crude-refining capacity to 750000 bpsd. The company offers a wide range of services in the
industrial and transportation sector.
6. Gas Authority of India Limited
At number six is the Gas Authority of India Limited (GAIL) was founded in 1984 and is the
largest state-owned natural gas processing and distribution company headquartered in New
Delhi, India.Gas Authority of India, popularly called as GAIL is a flagship Natural Gas company
in India, who are integrating all aspects of the natural gas value chain and its related services.
This company was incorporated in the year 2008 with the objective of smooth implementation of
City Gas Distribution projects.
7. Hindustan Petroleum Corporation
At number 7 is the HPCL, the Hindustan Petroleum Corporation. A government of India
enterprise and a Fortune 500 and Forbes 200 company, the company has a Navratna status and
has an annual turnover of Rs 169011 crores during the financial year 2011-12. The company has
2 major refineries in India. One is located in Mumbai with a capacity of 6.5 million metric
tonnes per annum and the other one is located in Vishakhapatnam with capacity of 9 million
metric tonnes per annum. The company has 13 zonal offices and 101 regional offices to perform
its operations smoothly.

8. ABAN group
ABAN group is the next on the list. The company was founded as a small engineering company
in Chennai by late Mr M A Abraham in 1986. The company launched its first drilling service in
1987. The company provides services in the sector of drilling, power generation and IT enabled
services. The company has made progress in the fields of high pressure systems and fertilizers.

[12]

9. Oil India Limited

OIL abbreviated as Oil India Limited is next on the list. The company was launched in 1959 and
was merged as a joint venture with Burma oil company Limited UK and Indian Government in
1961. The company has an authorized capital share of about 500 crores and the issued,
subscribed and paid share capital of the company is Rs 240.45 Crores. The 1981 the company
became a wholly owned Government of India enterprise. The company is marquee in it services
in the sectors of oil and natural gas, transportation of crude oil and production of LPG.
10. Tata Petrodyne
At number 10 in the list is the Tata Petrodyne. The company was launched in 1993 but the
ownership of the company changed due to its acquisition by Tata Power Company Ltd. The
company has interests in seven oil and gas block which it won in the various rounds of bidding
conducted by the Government of India. The company in 2007 started its first international
venture by participating on a gas bearing block in North Sea. The company is a part of the
corporate giant TATA group.

[13]

CHAPTER-2
BHARAT PETROLEUM CORPORATION LIMITED

2.1 Introduction:The evolution of Bharat Petroleum Corporation Limited is a new chapter in the history of
Indian industry. Petroleum (derived from Latin Petra - rock and ileum - oil) first came up in wells
drilled for salt. People found it useful as illuminating oil and the demand for it steadily increased.
Samuel Kier, a Pittsburgh druggist, bottled and marketed Petroleum as medicinal cure. To market
a deodorized variant, he designed the first primitive refinery in 1852, which was a huge
improvised kettle, connected to a metal tank.
'Colonel' Edwin Drake and 'Uncle' Billy Smith drilled a well with the specific objective of
finding oil, and on 27th August 1859, they 'struck oil' at Titusvale, in North Western
Pennsylvania, USA, at a depth of 69.5 ft.
In 1989 during vast industrial development, an important player in the South Asian market
was the Burma Oil Company. Though incorporated in Scotland in 1886, the company grew out
of the enterprises of the Chef Rohit Oil Company, which had been formed in 1871 to refine crude
oil produced from primitive hand dug wells in Upper Burma.
In 1928, Asiatic Petroleum Company (India) started cooperation with Burma Oil
Company. This alliance led to the formation of Burma Shell Oil Storage and Distributing
Company of India Limited. Burma Shell began its operations with import and marketing of
Kerosene.
On 24 January 1976, the Burma Shell 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 2003, following a petition by the Centre for Public Interest Litigation, the Supreme Court
restrained the Central government from privatizing Hindustan Petroleum and Bharat Petroleum
[14]

without the approval of Parliament. As counsel for the CPIL, Rajinder Sachar and Prashant
Bhushan said that the only way to disinvest in the companies would be to repeal or amend the
Acts by which they were nationalized in the 1970s. As a result, the government would need a
majority in both houses to push through any privatization.

Bharat Petroleum Corporation Limited Key Recent Developments

Mar 19, 2013: ONGC Consortium Signs MOU With NMPT For LNG Regasification
Terminal
Feb 25, 2013: Opta Sense Wins Contract From BPCL To Provide Pipeline Monitoring
Security Services
Feb 18, 2013: ONGC To Revive Plans To Set Up LNG Import Terminal In Karnataka, India
Feb 13, 2013: BPCL Reports Revenue Of INR623.6 Billion In Q3 Fiscal 20
Jan 08, 2013: Indian Prime Minister Lays Foundation Stone for BPCL Kochi Refinery
Expansion ProjectGDGE1.

Vision

We are the first choice of customers always.

We exploit profitable growth opportunities outside energy.

We are a great organization to work for.

We are a learning organization.

We are a model corporate entity with social responsibilities.

Mission

Participate prominently in nation building by meeting its growing energy needs, and to
support this Endeavour, purse the creation of economic surplus by efficiently deploying
all available resources and aiming towards global competitiveness in the energy sector.
[15]

 Promote ecology, environmental up gradation and national heritage.

So among people on the imperatives of energy conservation and efficient consumption of
petroleum resources, by disseminating information through appropriate media.

OPERATIONS:

Bharat Petroleum owns Mumbai Refinery and Kochi Refineries with a capacity of 12 and 9.5
million metric tonnes per year.
1. Mumbai Refinery
Environment, Energy, Safety and Health are given utmost priority in Mumbai Refinery. BPCL
Mumbai refinery is certified under ISO 14001 (Environment Management System) since May
1998. Mumbai Refinery was among the first refinery in the country to form an independent
Energy & Environmental Cell in the year 1962. It is our endeavor to achieve excellence in the
above critical areas while carrying out the day-to-day business operation.
We have taken various environmental initiatives to minimise the impact of refinery operations on
emissions, effluents and solid waste generation. BPCL meticulously follows the limits /norms
set at refinery.

BPCL ensures incorporation of modern / clean technologies for proper

monitoring and abating the pollutants through Stack Monitoring Instrument; Ambient Monitoring
Stations at various locations in the Refinery, Online Emission Display Boards in the refinery.

Some of major green initiatives taken by BPCL are as follows:

Upgrading Refinery to produce clean automotive fuels
Installation and commissioning of Hydrocracker unit under Refinery Modernization Project
(RMP) for production of Euro ill Grade Auto Fuel product (High Speed Diesel)

Installation of Diesel Hydro-desulphurization facility for production of Euro ill Grade

Auto Fuel product (High Speed Diesel)

Revamp of catalytic Reformer Unit for production of Euro III Grade Motor spirit.
[16]

Installation Methyl Tertiary Butyl Ether (MTBE) Unit to replace Tetra Ethyl Lead (TEL)
from motor spirit.

Currently BPCL is upgrading their refinery units for producing Euro-III/IV quality auto
fuels from 2010.

Production of High Quality Group II + Lube Oil Base Stock (LOBS) for manufacturing is
environment friendly (ultra low sulphur, long life) lube oils.

Improvement in Energy Efficiency of the Refinery & distribution operation by use of new
technology & modern instrumentation:

High efficiency boilers & fixed heaters equipped with air pre-heaters & advanced
instrumentation like Flame detectors / CO sensors.

High heat recovery crude preheats train systems optimized using Pinch technology.

Installation of cross-country multi-product pipeline (Mumbai-Manmade-MagnoliaBijwasan pipeline) to transport petroleum products such as Motor Spirit, kerosene and

High Speed Diesel thereby reducing road movement and minimizing vehicular emissions.
Installation of Co-generation plant for simultaneous generation of both power and steam
at high efficiency.

Installation of low-No burners in fired heaters to reduce release of Nitrogen oxides from
fired heaters.

Use of high emissivity ceramic coating on furnace refractory & radiant tubes to improve
furnace efficiency & save fuel.

Minimize / eliminate fugitive emissions through:

Implementation of industry best practices like hydrocarbon leak detection & repair
(LDAR) and

Use of floating roof tanks with secondary seals and still well sleeve systems
[17]

Installation of vapor recovery systems etc.

Provision of high efficiency Sulphur Recovery Units (99 % efficiency)

BPC has installed modern state of the art Waste Water Treatment Plant by M/s. Zippo
Passivity, USA to meet Minimal National Standard (MINAS).

Provision of sea cooling tower system which replaced the once through sea cooling water
system thereby minimizing the sea cooling requirement and effluent discharge to the sea.

Treated effluent water recycling and re-use and rain water harvesting.

Re-circulating sea cooling tower systems instead of once through sea cooling water

system thereby minimizing the sea cooling requirement and effluent discharge to the sea.
A comprehensive system for hazardous waste management has been implemented at
BPCL refinery. The details of various clean technologies implemented for optimal solid
waste management are given below:

Mechanized oil recovery system for oil recovery from oily sludge to recover the oil from
the crude tank bottom sludge.

The remaining soil having low oil content is bio-remediated with the help of specialized
micro-organisms based oil zapper technology from The Energy Research Institute
(TERI), New Delhi.

Spent catalysts are either recycled to the original catalyst suppliers or disposed off to
secured landfill sites in accordance with the MOE&F Hazardous Waste (Management and
Handling) Rules.

A Bio Gas plant has been installed at Mumbai refinery to convert canteen food waste into
gas for use in canteen.

Environmental Awareness and Accolades

Published Sustainability Report for the year 2007-08 in line with GRI guidelines:

[18]

World Environment Day, 5th June is celebrated every year by organizing various
awareness programmers for employees, students and general public such as display of
banners, Drawing competition for school children, tree plantation at various locations in
Mumbai, free PUC check-up for petrol/diesel driven vehicles for public etc.

BPCL Mumbai Refinery won Golden Peacock Environment Management Gold Award
2008 instituted by World Environment Foundation, U.K...

BPCL Refinery has received Genentech Gold Award by M/s. Genentech foundation.

BPCL Mumbai refinery received FICCI Award 2001/02 in recognition of Corporate

Initiative in Environmental Conservation & Pollution Control. The award was presented
by the Honable Prime Minister of India Shri. A.B. Vajpayee to our C&MD on 13th
December 2002.

Energy conservation in Refineries Award for Best Improvement in Energy Conservation

awarded by Centre for High Technology under Ministry of Petroleum and natural gas

Energy Conservation
BPCL being in the business of supplying energy to the nation is very conscious of its
energy conservation activities. As it is well known, energy conservation has a direct
impact on environmental emissions. Despite increase in the complexity of operations,
Refinery has achieved significant reduction in fuel and loss in the last few years by
incorporation of various energy conservation measures, constant monitoring / tighter
control of plant operations & good housekeeping. Energy conservation efforts received
continuous focus both in terms of improvement in operation / maintenance as well as
development of new projects. Continuous monitoring of fuel consumption and
hydrocarbon loss is undertaken using sophisticated instruments and data acquisition
system. An elaborate energy accounting system and Management Information System are
important features in BPCL Refinery operations.

[19]

The following energy conservation and loss control measures have been implemented
which has resulted in significant fuel savings.

Maximization of crude throughput in modern highly energy efficient integrated Crude &
Vacuum Unit.

Antifouling chemical injection in all Crude & Vacuum units.

Application of High Emissivity Ceramic Coatings on Tubes & refractory of CRU Inter 1
& 2 heaters resulting in 3% fuel saving.

Injection of fire side chemical additive in HVU / CRU heaters.

Reduction of Hydrogen loss to flare from MUG compressor section of Hydrocracker
Unit.

Water washing & cleaning of Air Pre Heaters.

Comprehensive study on Instrument air leak survey was carried out to identify air
leaks.

A comprehensive Steam Generation and Distribution Study was carried out.

2. Kochi Refinery

Right from the initial stages, the Company has always given utmost attention to
environmental care and protection. Extensive anti-pollution measures have been
incorporated in the design of the units. BPCL-KR is an ISO 14001 company, which
confirms that KRs Environment Management Systems conform to international
standards. Kochi Refinery is the first organization in Kerala to receive the ISO 14001
certification.

The design of the effluent water treatment system is such that the water discharged from
the treatment unit is well within the quality levels prescribed by the State Pollution
Control Board and the national standards. In fact, Kochi Refinery is the first industrial
unit in Kerala permitted by the State Pollution Control Board, to discharge treated water
into inland rivers.
[20]

BPCL-KR has installed Sulphur Recovery units to minimise the SO2 emissions from the
Refinery. KR has also installed three fully automatic, on-line and computerized Ambient
Air Quality Monitoring Stations for regular monitoring of ambient air quality. To reduce
particulate matter emission from the Fluid Catalytic Cracking (FCC) unit, an electrostatic
precipitator was commissioned in 1985. KR is the first Refinery in India to install this
facility.

KR produces auto fuels (MS & HSD) conforming to Bharat Stage-II norms from January
2005, well ahead of the implementation of new fuel quality norms in the region. The
Diesel Hydro-Desulphurisation unit (DHDS) enables to reduce the Sulphur content in
diesel to 0.05 wt. %, thereby minimising the sulphur emissions from vehicle exhausts.
Presently a refinery modernisation project is underway to make auto-fuels conforming to
Euro-III specifications.

An ecological park has been developed within the company premises in 2004-05 by
planting 4000 saplings of different species of trees, flowering plants, herbal trees, etc.
Now the ecological park and the treated effluent waterbed attract different birds including
seasonal migratory birds.

Implementation of rain water harvesting schemes inside the refinery is another project for
environmental protection. Water collected from this facility is routed to cooling towers as
make up water.
In recognition of the measures taken up by KR in the field of pollution control &
environmental management, the various awards have been conferred on Kochi Refinery.

2.2 Organizational Structure

[21]

By structure, we mean the framework around which the group is organized, the underpinnings
which keep the coalition functioning. It's the operating manual that tells members how the
organization is put together and how it works. More specifically, structure describes how
members are accepted, how leadership is chosen, and how decisions are made.

Why should you develop a structure for your organization?

Structure gives members clear guidelines for how to proceed. A clearly-established structure
gives the group a means to maintain order and resolve disagreements.

Structure binds members together. It gives meaning and identity to the people who join the
group, as well as to the group itself.

Structure in any organization is inevitable -- an organization, by definition, implies a structure.

Your group is going to have some structure whether it chooses to or not. It might as well be the
structure which best matches up with what kind of organization you have, what kind of people
are in it, and what you see yourself doing.

When should you develop a structure for your organization?

It is important to deal with structure early in the organization's development. Structural
development can occur in proportion to other work the organization is doing, so that it does not
crowd out that work. And it can occur in parallel with, at the same time as, your organization's
growing accomplishments, so they take place in tandem, side by side. This means that you
should think about structure from the beginning of your organization's life. As your group grows
and changes, so should your thinking on the group's structure.

Elements of Structure

[22]

While the need for structure is clear, the best structure for a particular coalition is harder to
determine. The best structure for any organization will depend upon who its members are, what
the setting is, and how far the organization has come in its development.
Regardless of what type of structure your organization decides upon, three elements will always
be there. They are inherent in the very idea of an organizational structure.
They are:

Some kind of governance

Rules by which the organization operation

A distribution of work

Governance

The first element of structure is governance - some person or group has to make the decisions
within the organization.

Rules by which the organization operates

Another important part of structure is having rules by which the organization operates. Many of
these rules may be explicitly stated, while others may be implicit and unstated, though not
necessarily any less powerful.

Distribution of work

Inherent in any organizational structure also is a distribution of work. The distribution can be
formal or informal, temporary or enduring, but every organization will have some type of
division of labor.
[23]

There are four tasks that are main key to any group:

Envisioning desired changes

The group needs someone who looks at the world in a slightly different way and believes

he or she can make others look at things from the same point of view.
Transforming the community. The group needs people who will go out and do the work

that has been envisioned.

Planning for integration. Someone needs to take the vision and figure out how to

accomplish it by breaking it up into strategies and goals.

Supporting the efforts of those working to promote change. The group needs support
from the community to raise money for the organization, champion the initiative in the
state legislature, and ensure that they continue working towards their vision.

Common Roles
Every group is different, and so each will have slightly different terms for the roles individuals
play in their organization, but below are some common terms, along with definitions and their
typical functions.
1. An initial steering committee is the group of people who get things started. Often, this group
will create plans for funding and organizational and board development. It may also generate bylaws, and then dissolve. If they continue to meet after approximately the first six months, we
might say they have metamorphosed into a coordinating council.

Board of trustees or as the board of directors; provide overall support, advice, and resources to
members of the action groups. They are often either people who are directly affected by the issue
or have stature in the community. That way, they are able to make contacts, network with other
community leaders, and generally remove or weaken barriers to meeting organizational
objectives. 8. Grant makers are another part of the picture. Grant makers exist on an
international, national, state, and local level and may be private companies and foundations, or
local, county, state, or federal government organizations (for example, block grants given by the
city would fall into this category.
[24]

8. Support organizations (not to be confused with the support committees listed above) are
groups that can give your organization the technical assistance it needs.
2. A coordinating council (also referred to as a coordinating committee, executive committee,
and executive council), modifies broad, organization-wide objectives and strategies in response
to input from individuals or committees.

3. Often, one person will take the place of the coordinating council, or may serve as its head.
Such a person may be known as the Executive Director, Project Coordinator, Program
Director, or President. He or she sometimes has a paid position, and may coordinate, manage,
inspire, supervise, and support the work of other members of the organization.

4. Task forces are made up of members who work together around broad objectives. Task forces
integrate the ideas set forward with the community work being done.

5. Action committees bring about specific changes in programs, policies, and practices in the
sectors in which they work.

6. Support committees are groups that help ensure that action committees or other individuals
will have the resources and opportunities necessary to realize their vision. Financial and media
committees are examples of committees formed to help support or facilitate your work.

8. Partner organizations are other groups working on some of the same issues as your
organization.

Although this list is pretty extensive, your organization may only use two or three of the
above mentioned roles, especially at the beginning. It's not uncommon for a group to start with a
steering committee, ask others to serve as board members, and then recruit volunteers who will
serve as members of action committees.
[25]

Management Team

Shri. R.K. Singh

Shri. B. Chakrabarti

Chairman & Director

Director

Shri Tom Jose

Shri. J.R. Verma

Director

Director

Shri. S.Varadarajan

Shri. K.K. Gupta

Finance Director

Marketing Director

[26]

Shri. B.K. Datta

Shri. S.P. Gathoo

Refineries Director

Human Resource Director

2.3 Products
Lubricants play a very vital role in the smooth & trouble free operation of any automobiles.
There are different accretes fitted in an automobiles vehicle such as engines, gear &
transmission, brake system, radiator coolant, wheel bearing etc requires different type of oils and
greases.

[27]

The heart of any automotive vehicle is the engines which power the vehicle motion. The engines
fitted in these vehicles are broadly classified as follows based on the fuel it use and the number
of strokes:

Petrol Engines Spark

Two Stroke Engines
Four Stroke Engines
Diesel Engines Compression Ignition Engines

Four stroke petrol engines are used in passenger cars and also in current generation motor cycles,
scooters and Auto Rickshaws. Two stroke engines are used in the twowheeler, motor cycles and
auto rickshaws.

Diesel engines are used in all commercial vehicles. Also high performance diesel engines are
used in certain passenger vehicles also.

(A) Petrol
Automotive gasoline and gasoline-oxygenate blends are used in internal combustion
spark-ignition engines. These spark ignition engine fuels are primarily used for passenger cars.
They are also used in off-highway utility vans, farm machinery and in other spark ignition
engines

employed

in

variety

of

service

applications.

Gasoline is a complex mixture of relatively volatile hydrocarbons that vary widely in

chemical & physical properties and are derived from fractional distillation of crude petroleum
with a further treatment mainly in terms of improvement of its octane rating. The hundreds of
individual

hydrocarbons

in

gasoline

range

an oxygenate is an oxygen-containing, ash less organic compound (such as an alcohol or

ether) which can be used as a fuel or fuel supplement. Motor gasoline is sold at retail outlets
where it is directly delivered into the automobile tank. The Indian Standard governing the
properties of motor gasoline & gasoline-oxygenate blends is IS2796: 2000 (3rd Rev).
[28]

In view of the auto fuel policy issued by Govt of India, more & more stringent
specifications (equivalent to Euro II, Euro III, and Euro IV) are being made applicable for the
gasoline being marketed in India. This has led to reduction of environmentally polluting factors
in gasoline.

(B) Two stroke Engines

A two-stroke, two-cycle, or two-cycle engine is a type of internal combustion engine

which completes a power cycle in only one crankshaft revolution and with two strokes, or up and
down movements, of the piston in comparison to a "four-stroke engine", which uses four strokes
to do so. This is accomplished by the end of the combustion stroke and the beginning of the
compression stroke happening simultaneously and performing the intake and exhaust (or
scavenging) functions at the same time.
Two-stroke engines often provide high power-to-weight ratio, usually in a narrow range of
rotational speeds called the "power band", and, compared to 4-stroke engines, have a greatly
reduced number of moving parts, are more compact and significantly lighter.
The first commercial two-stroke engine involving in-cylinder compression is attributed to
Scottish engineer Dugald Clerk, who in 1881 patented his design, his engine having a separate
charging cylinder. The crankcase-scavenged engine, employing the area below the piston as a
charging pump, is generally credited to Englishman Joseph Day.

Gasoline (spark ignition) versions are particularly useful in lightweight (portable) applications
such as chainsaws and small, lightweight and racing motorcycles, and the concept is also used in
diesel compression ignition engines in large and weight insensitive applications, such as ships,
locomotives and electricity generation. The heat transfer from the engine to the cooling system is
less in a two-stroke engine than in a traditional four-stroke, a fact that adds to the overall engine
efficiency; however, traditional 2-strokes have a poor exhaust emissions feature.

(C) Four Stroke Engines

[29]

A four-stroke engine (also known as four-cycle) is an internal combustion engine in which the
piston completes four separate strokes which comprise a single thermodynamic cycle. A stroke
refers to the full travel of the piston along the cylinder, in either direction. While risqu slang
among some automotive enthusiasts names these respectively the "suck," "squeeze," "bang" and
"blow" strokes. [1] They are more commonly termed

INTAKE:
This stroke of the piston begins at top dead center. The piston descends from the top of the
cylinder to the bottom of the cylinder, increasing the volume of the cylinder. A mixture of fuel
and air is forced by atmospheric (or greater) pressure into the cylinder through the intake port.

COMPRESSION:
With both intake and exhaust valves closed, the piston returns to the top of the cylinder
compressing the air or fuel-air mixture into the cylinder head.

POWER:
This is the start of the second revolution of the cycle. While the piston is close to Top Dead
Centre, the compressed airfuel mixture in a gasoline engine is ignited, by a spark plug in
gasoline engines, or which ignites due to the heat generated by compression in a diesel engine.
The resulting pressure from the combustion of the compressed fuel-air mixture forces the piston
back down toward bottom dead centre.

EXHAUST:
During the exhaust stroke, the piston once again returns to top dead centre while the exhaust
valve is open.

[30]

In addition, 15 Quality Certification Laboratories provide complete specification tests roundthe-clock. Ensuring that these standards are always upheld, there is a backup of a highly
skilled, qualified and dedicated team of officers and refueling crew. Indian Oil has a strategic
partnership with Air BP, the world leader in aviation business. Indian Oil regularly organizes
seminars, symp
(D) DIESEL:Petroleum derived diesel (called as petro diesel) is a mixture of straight run product

(150 C and 350 C) with varying amount of selected cracked distillates and is composed of
saturated hydrocarbons (primarily paraffins including n , so , and cycloparaffins), and aromatic
hydrocarbons (including naphthalenes and alkyl benzenes).
Diesel is used in diesel engines, a type of internal combustion engine. Rudolf Diesel
originally designed the diesel engine to use coal dust as a fuel, but oil proved more effective.
Diesel engines are used in cars, motorcycles, boats and locomotives. Automotive diesel fuel
serves to power trains, buses, trucks, and automobiles, to run construction, petroleum drilling and
other off-road equipment and to be the prime mover in a wide range of power generation &
pumping applications. The diesel engine is high compression, self-ignition engine. Fuel is ignited
by

the

heat

of

high

compression

and

no

spark

plug

is

used.

The Indian Standard governing the properties of diesel fuels are IS 1460:2005 (5th Rev).
Important characteristics are ignition characteristics, handling at low temperature, flash point.
Diesel fuel often contains higher quantities of sulphur. In India, emission s dramatic
reduces the level of sulphur in diesel in view of the auto fuel policy brought in force by Govt of
India.
Standards(equivalent to Euro II, Euro III, Euro IV) have necessitated oil refiner dramatic reduce
the level of sulphur in diesel in view of the auto fuel policy brought in force by Govt of India.

2.3Services

[31]

(A)
We 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.
We 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 fueling
and improves the service efficiency at the forecourt of the petrol pump.

(B) Fostering Loyalty

We share rewarding relationships with our customers and building loyalty has been a center of
focus with us. Recognizing the need of our customers to make life more convenient and
rewarding and introduced the first loyalty-cum-rewards program, Petro Bonus. Equipped with
Smart Card Technology, the Petro Card program combines convenience in payment along with
an inbuilt rewards program that rewards the customer with Petro miles every time he fuels. A
similar program, Smart Fleet was launched for Fleet Owners. The Smart Fleet 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.

[32]

(C) Delivering Convenience

Bharat Petroleum has pioneered the concept of Convenience

Stores in the Country. The In &Out Convenience Stores are the largest network of stores spread
across the BPCL network, offering convenient timings and location for the motorists and
neighboring localities. The offerings range from convenience products, ATMs, Money Transfer
facilities, Courier services, Launderettes, Music, Greeting Cards, Bill Payments, Movies /
Entertainment Tickets, etc. The network also has a good spread of Fast Food destinations
throughout tie ups with Mc Donalds, Cafe Coffee Day, Subway, Pizza Hut and other leading
retail chains.

(D) Caring for your Vehicles Needs

We also aim to provide service centre facilities through our V-CARE (Vehicle Care) Centers
across the urban network. The V-Care Centers provide customers with reliable, transparent and
value for money services for the basic vehicle care needs. We have tie ups with Hero Honda and
General Motors for being their authorized After Sales Service Centers apart from the other
brands of cars and two-wheelers. With our reach to the nook & corner of the country we are
always near to the customers.

[33]

(E) Partnering your Highway Journeys

On the highways, we offer a home away from home to the truckers and the tourists
in the form of the Generation Next OSTSs/OSTTSs (One Stop Truck cum Tourist Shop) branded
as GHAR. These outlets are built on a minimum of 3 to 5 acres plot sizes and house dedicated
and fully automated MS/HSD petrol/ diesel Fuelling facilities to fuel all kinds and sizes of
vehicles besides the specially designed offerings for the highway travelers, that include a Food
Court for Tourists and a Dhaba for truckers, a dormitory with beds, a Safe, Secured and Spacious
parking for trucks and cars, a vehicle wash facility, Saloon, Laundry and Tailor shop, a Kirana
shop, Bathing facilities, dedicated toilets for Truckers and dedicated toilets for Tourists (Gents,
Ladies & Handicapped),Childrens Play area, Amphitheatre for entertainment, Health care
centre, Smart fleet 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

(F) AUTO LPG

Introduction of LPG as Auto Fuel

[34]

care

as

in

the

key

cities.

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.
We have today over 70 Auto LPG Dispensing Stations (ALDS) in various cities (including
metros) in the country.

(G)CNG
CNG (Compressed Natural Gas) is a mixture of hydrocarbons consisting of
approximately 80 to 90 percent methane in gaseous form. Because of its low energy density, it is
compressed to pressure of 200 to 250 Kg/cm2 (to enhance the vehicle on-board storage in a
cylinder), hence the name Compressed Natural Gas. Colourless, non-carcinogenic and non-toxic,
CNG is inflammable and lighter than air. It is not a liquid fuel, and is not the same as LPG
(Liquefied Petroleum Gas), which consists of propane and butane in liquid form. Superior to
petrol, it operates at one-third the cost of conventional fuel and is hence, increasingly becoming
popular with automobile owners. Commonly referred to as the green fuel because of its lead free
characteristic, it reduces harmful emissions and is non-corrosive, thus enhancing the life of spark
plugs. Another practical advantage observed in countries where CNG is in already in vogue is the
extension of life of lubricating oils as the fuel does not contaminate and dilute the crankcase oil.

In the next millennium, alternative fuels like Compressed Natural Gas (CNG) and
Liquefied Petroleum Gas (LPG) would be increasingly used in automobiles. Mumbai already has
over 10,500 private cars/taxis that run on CNG and in Delhi, all public transport runs on CNG.
Car manufacturers have been conducting tests on their vehicles, using LPG/CNG - both in
dedicated and bi-fuel modes. While these fuels will not totally replace petrol and diesel, they
may be targeted for use in particular segments, like commercial and public transport vehicles.

[35]

Diesel was for a long time considered eco-friendly because it is more fuel-efficient
than petrol i.e. 15-20 percent more mileage than one liter of petrol. But the 1990s have seen
diesel being increasingly acknowledged as extremely detrimental to health and environment.
Experiments have revealed that besides a very tiny - one micron or less, which are injurious to
health.
Recognizing the gravity of the situation, authorities are intensifying the thrust on use of alternate
fuels like CNG and LPG which besides being less hazardous are cost-effective.

CHAPTER-3
ANALYSIS AND DISCUSSION
3.1 Financial Analysis

[36]

Financial, information and technology issues that affect how well finance organizations
operate and support the activities of the rest finanancial performance management (FPM) is the
process of addressing the often overlapping people, process of their organization. FPM deals
with the full cycle of finance department activities, which include planning and budgeting,
analysis, assessment and review, closing and consolidation, internal financial reporting and
external financial reporting, as well as the underlying information technology system that
support them. How well an organization manages its finance function has a significant impact on
its overall performance. To control their fiscal well-being and achieve their strategic objectives,
multinational corporations, small businesses, government entities and nonprofits all must be able
to set financial objectives, plan and budget to achieve those objectives, and review and evaluate
their financial performance in a timely and effective fashion.
Managing financial performance involves well-established processes and analytic
techniques. After all, bookkeeping and balance sheet ratios are centuries old; Babylonian clay
tablets show that budgeting stretches back millennia. All financial processes and their related
analytics used to be done by hand, using paper, an abacus or what have you. Adding machines
provided some efficiency, but it wasn't until computers became widely available that it became
possible for companies to automate processes and use innovative techniques. Yet, perhaps
because basic financial processes and analytics are so well established, Ventana Research's
benchmark research finds that a majority of companies are not using information technology to
support the application of more sophisticated analytics or to execute core financial management
more effectively.

Having the right technology and using it effectively both are essential to achieving better
execution of FPM processes. For example, companies that use consolidation software on average
close their books about one-third faster than those that perform this task using spreadsheets, and
companies that use spreadsheets sparingly in their closing process produce financial statements
containing fewer errors their than those that use them extensively.

In the wake of a relentless consolidation in the software business as well as ongoing

organic growth, FPM suites today incorporate a wide range of functionalities. Such suites
typically include functionality for planning, budgeting, forecasting and reviews; statutory and
[37]

management financial consolidation; financial analytics; and reporting tools such as dashboards
and scorecards. Many of these suites include specific capabilities for headcount-, sales-, capital-,
balance sheet and cash flow planning. Increasingly, vendors also are offering the automation of
the management of external reporting, which facilitates the creation of structured filings. For the
Securities and Exchange Commission and other bodies that require them, this includes
automatically applying eXtensible Business Reporting Language (XBRL) tags to the document.
Some vendors also have sophisticated cost and profitability analytics capabilities, and some have
financial close automation capabilities such as the automation of intercompany reconciliations.
In the past, companies usually purchased individual components such as planning or
consolidation tools as needed. Most still do, and for many companies it may still be the right
approach. Still, there can be advantages to buying a full suite if your company needs the full
suite over time, purchasing incremental components from the same vendor, an approach that can
enable easier integration and maintenance and therefore a lower total cost of ownership.
Array of functionalities it delivers. Or the company might elect to assemble a full suite over time,
purchasing incremental components from the same vendor, an approach that can enable easier
integration and maintenance and therefore a lower total cost of ownership.

Balance Sheet of Bharat Petroleum

------------------- in Rs. Cr. -------------------

Corporation
Mar '14

Mar '13

Mar '12

Mar '11

Mar '10

12 mths

12 mths

12 mths

12 mths

12 mths

[38]

Sources Of Funds
Total Share Capital
Equity Share Capital
Share Application Money
Preference Share Capital
Reserves
Revaluation Reserves
Networth
Secured Loans
Unsecured Loans
Total Debt
Total Liabilities

723.08
723.08
0.00
0.00
18,735.6
8
0.00
19,458.7
6
13,933.5
2
6,058.54
19,992.0
6
39,450.8
2
Mar '14
12 mths

723.08
723.08
0.00
0.00

361.54
361.54
0.00
0.00

361.54
361.54
0.00
0.00

361.54
361.54
0.00
0.00

15,910.94

14,552.32

13,696.08

12,725.17

0.00

0.00

0.00

0.00

16,634.02

14,913.86

14,057.62

13,086.71

6,090.84

210.11

3,021.55

10,443.87

17,475.95

21,036.33

13,436.52

11,751.33

23,566.79

21,246.44

16,458.07

22,195.20

40,200.81

36,160.30

30,515.69

35,281.91

Mar '13

Mar '12

Mar '11

Mar '10

12 mths

12 mths

12 mths

12 mths

33,571.89

31,640.58

29,267.37

25,412.52

16,881.48

15,028.20

13,268.04

11,743.17

16,690.41

16,612.38

15,999.33

13,669.35

2,419.74
12,103.00

1,119.06
10,917.42

972.39
12,037.06

2,517.75
12,201.32

16,690.37

15,948.06

15,375.08

12,028.86

4,025.13
2,328.86

6,378.34
978.85

2,532.65
379.03

2,662.68
341.43

23,044.36

23,305.25

18,286.76

15,032.97

12,729.88

13,652.87

8,580.41

10,894.22

Application Of Funds
Gross Block
Less: Accum. Depreciation
Net Block
Capital Work in Progress
Investments
Inventories
Sundry Debtors
Cash and Bank Balance
Total Current Assets
Loans and Advances

38,048.5
5
19,009.0
4
19,039.5
1
3,065.10
11,846.89
19,071.1
3
4,080.16
203.76
23,355.0
5
15,120.8
[39]

Fixed Deposits
Total CA, Loans & Advances
Deffered Credit
Current Liabilities
Provisions
Total CL & Provisions
Net Current Assets
Miscellaneous Expenses
Total Assets

Contingent Liabilities
Book Value (Rs)

6
0.00
38,475.9
1
0.00
29,150.6
9
3,825.90
32,976.5
9
5,499.32
0.00
39,450.8
2
17,397.9
9
269.11

[40]

0.00

0.00

0.00

0.93

35,774.24

36,958.12

26,867.17

25,928.12

0.00

0.00

0.00

0.00

24,033.27

27,689.02

23,027.23

16,454.04

2,753.31

1,757.66

2,333.03

2,580.59

26,786.58

29,446.68

25,360.26

19,034.63

8,987.66
0.00

7,511.44
0.00

1,506.91
0.00

6,893.49
0.00

40,200.81

36,160.30

30,515.69

35,281.91

11,467.93

9,589.30

9,943.94

9,382.97

230.04

412.51

388.82

361.97

Profit & Loss account of Bharat

Petroleum Corporation

Income
Sales Turnover
Excise Duty
Net Sales
Other Income
Stock Adjustments
Total Income
Expenditure
Raw Materials
Power & Fuel Cost
Employee Cost
Other Manufacturing Expenses
Selling and Admin Expenses
Miscellaneous Expenses
Preoperative Exp Capitalised
Total Expenses

Operating Profit
PBDIT
Interest
PBDT
Depreciation
Other Written Off
Profit Before Tax
Extra-ordinary items
PBT (Post Extra-ord Items)
Tax
Reported Net Profit
Total Value Addition
Preference Dividend
Equity Dividend

Mar '14

------------------- in Rs. Cr. ------------------Mar '13

Mar '12
Mar '11
Mar '10

12 mths

12 mths

12 mths

12 mths

12 mths

260,060.53 240,115.75 211,972.97 151,639.45 131,499.81

0.00
0.00
0.00
0.00 11,282.73
260,060.53 240,115.75 211,972.97 151,639.45 120,217.08
1,468.66
1,680.23
1,701.78
1,621.36
1,190.10
2,030.30
0.00
601.60
2,056.05
3,989.85
263,559.49 241,795.98 214,276.35 155,316.86 125,397.03
240,325.98 223,534.30 197,936.81 141,028.03 113,884.03
1,196.89
904.92
716.08
475.89
237.12
2,896.35
2,768.87
2,261.07
2,763.63
2,141.12
0.00
0.00
0.00
0.00
384.72
0.00
0.00
0.00
0.00
3,186.95
9,585.39
8,272.65
7,793.76
5,881.99
888.34
0.00
0.00
0.00
0.00
0.00
254,004.61 235,480.74 208,707.72 150,149.54 120,722.28
Mar '14
Mar '13
Mar '12
Mar '11
Mar '10
12 mths

12 mths

12 mths

12 mths

12 mths

8,086.22
9,554.88
1,359.08
8,195.80
2,246.82
0.00
5,948.98
0.00
5,948.98
1,888.10
4,060.88
13,678.63
0.00
1,229.24

4,635.01
6,315.24
1,825.24
4,490.00
1,926.10
0.00
2,563.90
0.00
2,563.90
1,392.79
2,642.90
11,946.44
0.00
795.39

3,866.85
5,568.63
1,799.59
3,769.04
1,884.87
0.00
1,884.17
0.00
1,884.17
572.90
1,311.27
10,770.91
0.00
397.70

3,545.96
5,167.32
1,117.03
4,050.29
1,655.40
0.00
2,394.89
0.00
2,394.89
848.21
1,546.68
9,121.51
0.00
506.16

3,484.65
4,674.75
1,010.95
3,663.80
1,242.32
0.00
2,421.48
-60.11
2,361.37
823.75
1,537.62
6,838.25
0.00
506.16

[41]

Corporate Dividend Tax

Per share data (annualised)
Shares in issue (lakhs)
Earning Per Share (Rs)
Equity Dividend (%)
Book Value (Rs)

196.58

127.47

57.16

71.08

72.77

7,230.84
56.16
170.00
269.11

7,230.84
36.55
110.00
230.04

3,615.42
36.27
110.00
412.51

3,615.42
42.78
140.00
388.82

3,615.42
42.53
140.00
361.97

Key Financial Ratios of Bharat

Petroleum Corporation

Investment Valuation Ratios

Face Value
Dividend Per Share
Operating Profit Per Share (Rs)
Net Operating Profit Per Share (Rs)
Free Reserves Per Share (Rs)
Bonus in Equity Capital

Mar '14

Mar '13

Mar '12

Mar '11

Mar '10

10.00
17.00
111.83
3,596.5

10.00
11.00
84.45

10.00
11.00
106.95

10.00
14.00
98.08

10.00
14.00
96.38

3,320.72

5,863.02

4,194.24

3,325.12

-88.30

-76.61

-76.61

323.90
76.61

5
-88.30
[42]

Profitability Ratios
Operating Profit Margin(%)
Profit Before Interest And Tax
Margin(%)
Gross Profit Margin(%)
Cash Profit Margin(%)
Adjusted Cash Margin(%)
Net Profit Margin(%)
Adjusted Net Profit Margin(%)
Return On Capital Employed(%)
Return On Net Worth(%)
Adjusted Return on Net Worth(%)
Return on Assets Excluding
Revaluations
Return on Assets Including
Revaluations
Return on Long Term Funds(%)
Liquidity And Solvency Ratios
Current Ratio
Quick Ratio
Debt Equity Ratio
Long Term Debt Equity Ratio
Debt Coverage Ratios
Interest Cover
Total Debt to Owners Fund
Financial Charges Coverage Ratio
Financial Charges Coverage Ratio Post
Tax
Management Efficiency Ratios
Inventory Turnover Ratio
Debtors Turnover Ratio
Investments Turnover Ratio
Fixed Assets Turnover Ratio
Total Assets Turnover Ratio
Asset Turnover Ratio
Average Raw Material Holding
Average Finished Goods Held
Number of Days In Working Capital
Profit & Loss Account Ratios

3.10

2.54

1.82

2.33

2.89

2.23

1.72

0.92

1.23

1.83

2.24
2.41
2.41
1.55
1.55
18.52
20.86
20.86

1.74
1.88
1.88
1.09
1.09
14.57
15.88
15.88

0.93
1.49
1.49
0.61
0.61
10.18
8.79
8.79

1.24
2.08
2.08
1.00
1.00
11.50
11.00
11.00

1.86
2.73
2.73
1.26
1.26
11.11
11.74
15.94

269.11

230.04

412.51

388.82

361.97

269.11

230.04

412.51

388.82

361.97

23.37

26.46

21.57

21.02

15.52

0.87
0.59
1.03
0.61

0.78
0.71
1.42
0.33

0.76
0.71
1.42
0.14

0.65
0.45
1.17
0.19

0.72
0.68
1.70
0.93

5.38
1.03
7.03

3.21
1.42
4.27

2.05
1.42
3.09

3.14
1.17
4.63

3.88
1.70
5.11

5.64

3.50

2.78

3.87

3.75

13.64
64.17
13.64
6.85
6.60
6.53

14.39
46.16
14.39
7.17
5.98
6.29

13.29
47.58
13.29
6.72
5.87
6.36

9.86
58.38
9.86
5.19
4.98
4.61

11.09
58.81
11.09
4.75
3.42
3.51

---5.66

--13.48

---0.84

---5.69

19.54
25.91
20.64

[43]

Material Cost Composition

Imported Composition of Raw

92.41

93.09

93.37

93.00

94.73

77.73

81.84

80.73

74.91

72.07

--

--

--

--

2.15

7.35

7.68

9.11

8.16

8.56

30.27
19.48
69.73
80.52
3.17

34.91
20.19
65.09
79.81
5.16

30.32
12.44
69.68
87.56
6.65

37.32
18.02
62.68
81.98
5.14

37.65
20.82
72.27
82.62
6.67

Mar '14

Mar '13

Mar '12

Mar '11

Mar '10

56.16
269.11

36.55
230.04

36.27
412.51

42.78
388.82

42.53
361.97

Materials Consumed
Selling Distribution Cost Composition
Expenses as Composition of Total
Sales
Cash Flow Indicator Ratios
Dividend Payout Ratio Net Profit
Dividend Payout Ratio Cash Profit
Earning Retention Ratio
Cash Earning Retention Ratio
AdjustedCash Flow Times

Earnings Per Share

Book Value

3.2) BPCL-Marketing

Pioneers in

Branded retail outlets

Branded fuels

Loyalty programmers for customer retention

Convenience stores

Product pipeline from Bina to Kota

Modernizing forecourt at retail outlets.

[44]

Multi-products dispensers 2500 to 3000 per year.

Seamless in tegration of electronic payment and fueling.

Up-grading of facilities at retail outlets 1,000 ROs per year.

Enhancing of retail visual identity 1,000 ROs per year.

Provision of vapour recovery system at ROs 200.

LPG-Marketing

LPG import facilities at Uran.

LPG pipeline from Kochi-Coimbatore to Madurai.

Conversion of mechanical carousals to electronic at 30 LPG bottling plants.

LPG mounded storage about 60,000 tons at various places in next three years.

Product Manufacturing
Product :- Refinery
Crude Oil: - Industrial and Commercial fuels and petrochemicals.
Retail: - Petrol, Diesel, Kerosene.
Aviation: - Lubricant to aircraft operators.
LPG: - Lubricants, engine oils.
Product Line
BPCL eyes petro products.
BPCL is seeking petroleum products to meet the 4 million tones fuel deficit in the north India.

BPCL has teamed with IOC, ESSAR Oil for the Central India pipeline project stretched from Gujarat to Gwali
in the Madhya Pradesh and Nagpur in Maharashtra.

CORPORATE GOVERNANCE
[45]

Bharat Petroleum Corporation Limited's corporate philosophy on Corporate Governance has

been to ensure fairness to the Stakeholders through transparency, full disclosures, empowerment
of employees and collective decision making

CHAPTER-4
SWOT ANALYSIS AND CONCLUSION
(A) SWOT ANALYSIS

[46]

Strengths
Cost advantage
Effective communication
High R&D
Innovation Inquisitiveness
Loyal customers
Market share leadership
Strong management team
Strong brand equity
Strong financial position
Ability to adopt high Technology
Experienced and Qualified employees
Adequate supply of Raw Materials, Labor and other inputs which help to meet
output demands.
Strong employee-employer relationship with attractive perquisites

Weaknesses
Expensive R&D so purchases technology
Handling of types of crude mix leads to sub optimal changes in operations
Lack of sufficient infrastructural facilities for growing employee number like
housing colonies and so on
Insufficient household consumer product marketing, main focus on industrial
product marketing

[47]

Opportunities
acquisitions and mergers
Emerging markets and expansion abroad
Joint Ventures
Innovation
Product and services expansion
Availability of highly qualified, skilled and experienced labor
Adequate support from Government agencies
Increasing Market Demand
High demand for By-products and petroleum feedstocks

Threats
Strong Competition
Economic slowdown
External changes (government, politics, taxes, etc)
Lower cost competitors or imports
Maturing categories, products, or services
Price wars
Product substitution
Growing demand of environmental concern

B. CONCLUSION:The development of the Indian Petroleum industry began on a very slow note. It started
mainly in the northeastern part of India especially in the place called Digboi in the state of
[48]

Assam. Until the 1970s, the production of petroleum and the exploration of new locations for
extraction of petroleum were mainly restricted to the northeastern state in India Petroleum. This
also helped in many manufacturing activities. BPCL is Oil and Gas controlled company and its
headquarters are in Maharashtra and Mumbai. It has its operations in Mumbai and Kochi
refinery.
Burma Shell was taken over by the Indian Government and later on in 1997 it was named
as BPCL. Bharat petroleum corporation limited is one of the leading in Indian petroleum area,
the main competitor of BPCL were IOCL as well as HPCL but in the present scenario super as
well as Reliance private player came in to existing so company is getting more and more
competition from private player. It provides us many products and services like Petrol and Diesel
and care for the customers need and distribution.
Company has good policy as well as good distribution but the only thing is company need
to be more transparent towards the customer. Customers have had a lot of problem in taking
connection so company need to organize campaign for connection at list in metropolitan city
because private players are taking good response from the market and they are providing
connection with ought any hurdle and because of that customer are attracting towards private
player.
In third chapter I came to know about the Financial and marketing analysis that profit and
expenditure too are increasing. And it provides us branded retail outlets and branded fuels.
Through marketing we came to know about its products and its product line.
In fourth chapter we came to know about its strengths, weaknesses, opportunities and its
threats.
According to this I came to this point that BPCL need to be more transparent towards the
customer for domestic customer and for industrial product company need to do direct marketing,
in present scenario because competition is going to be more hyper in the market because private
players are taking more market share because of service although their product is not good in the
comparison of BPCL and others in this industry.

[49]

CHAPTER-5
LEARNING FROM THE REPORT
o Through this report I came to know about the Oil and Gas company in India
which I never know, if my project is not related with this
o I came to know about its competitors or players that are IOCL, HPCL and etc.
o I came to know where and when it was established.
o I came to know about the BPCL which have positive impact on the Indian
Economy.
o Throughout this report, I am awared about the products and services of the BPCL.
o In this report I compare the SWOT analysis and came to know the reasons of for
that and how to overcome the weaknesses.
o It has greater opportunities of high pricing and many others.
o After also these things BPCL having the effective and efficient management.

[50]

REFERENCES
(A) . Internet references

www.google.com
www.bharatpetroleum.com
www.economictimes.com
www.moneycontrol.com
www.mbaskool.com
www.wikipedia.com

[51]

[52]