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Project Report

On

“Market Survey and how to enhance PLD market representation”

AT

Bharat Petroleum Corporation Limited

Submitted By

Manish pradhan
Under the Guidance of

Ms Spardha Singhal
Assistant Manager-Lubes

Submitted to

“University of Mumbai”

In partial fulfillment of the requirement for the award of the degree of


Master of Management Studies (MMS)

Through
C.K. Thakur Institute of Management Studies and Research New Panvel
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DECLARATION

I, Manish Pradhan a student of C.K. Thakur Institute of Management Studies and


Research, New Panvel, hereby solemnly declare that the project titled ‘Market Survey and
how to enhance PLD market representation’ for Bharat Petroleum Corporation Limited. is
original and not copied from any other earlier report.

The information and fact & figure produced in this report is based on my own experience &
study during my summer training and has not been published previously any where not in
Magazine, Trade journal or any other University or else where for the award of degree/ diploma/
fellowship.

Further I also declare that, I have tried my best to complete this project with sincerity, honesty
and accuracy. Even then if, any mistake or error had been crept in, I shall most humbly request
you to point out those errors.

Any suggestion regarding this Project Report will be most welcome.

Place: Manish Pradhan


Date: (C.K.T.I.M.S.R)
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CERTIFICATE

TO WHOMESOEVER IT MAY CONCERN

This is to certify that Mr. Manish Pradhan is a bonafide student of our institute “C.K. Thakur
Institute of Management Studies and Research”. He has successfully completed the project on
“Market Survey and how to enhance PLD market representation” undertaken in “Bharat
Petroleum Corporation Limited

This is the original study of Mr. Manish Pradhan and the sources used by him have been
acknowledged in his report. The report is submitted in the partial fulfillment of two year full time
course in Masters of Management Studies (2010-10) as per the rules of the Mumbai
University.

Prof. Nilesh Manore Dr. S.T. Gadade


(PROJECT GUIDE) (DIRECTOR)

ACKNOWLEDGEMENT
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It gives me pleasure in presenting this project report on ‘Market Survey and how to enhance
PLD market representation’ in Bharat Petroleum Corporation Limited

I would like to add a few heart felt words for the people who were the part of this project in
numerous ways people who gave unending support right from the stage the basic idea was
conceived.

I acknowledge with sense of reverence my gratitude towards Ms Spardha Singhal, Assistant


Manager for providing me an opportunity to work as a summer trainee under his guidance along
with his support and co-operation in completion of my project.

I wish to express my gratefulness to our Institute coordinator Mr. Nilesh Manore & also thankful
to Prof. S.T. Gadade our Institute Director who has been constant source of inspiration to me.
This project is a result of their initiative and constant motivation.

I express my hearty thanks to the store managers and staff members of Staples Stores without
whom the project would have not been completed.

I express my thanks to my beloved parents & friends for their support and guidance. I must never
forget that the highest appreciation is not to utter words, but to live by them.

Manish Pradhan

INDEX
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SERAIL NO. DESCRIPTION PAGE NO.

1 EXECUTIVE SUMMARY 6-7


OBJECTIVE AND SCOPE OF
2 PROJECT 8-9
COMPANY PROFILE
3 10-11
THEORETICAL BACKGROUND
4 12-46
RESEARCH METHODOLOGY
5 47-51
RESEARCH ANALYSIS
6 52-63
FINDINGS
7 64-65
CONCLUSION &
8 RECOMMENDATIONS 66-67

9 BIBLIOGRAPHY 68-69
ANNEXURE
10 70-72

Chapter 1
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EXECUTIVE
SUMMARY

Theoretical knowledge gained by a student through classroom study is incomplete, if


not subject to practical exposure of real corporate world and the challenges and problems that
one has to face at the actual work place. In that context the study has been taken to be aware of
the real business world.

The Project entitled-


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‘Market Survey and how to enhance PLD market representation’ as a summer trainee, it
helped me in understanding about the policies and procedures of the company and how these
should be formulated together so that they solve the real purpose. It also gave me a chance to
have an interaction with people at real work place who are working at different positions with
different authorities and responsibilities. The generosity and the patience of them for spending
their valuable time for discussion and interactions has also been a rich experience for me.

The project report is based on live experience of work and Market Survey and how to enhance
PLD market representation. The project research was carried out in the tenure of 2 months
between May and June with Bharat Petroleum Corporation Limited. under the guidance of Ms
Spardha Singhal

The main objective of this study was to understand how the primary lubricant market
works,channels of distribution etc.

The data collected during the project was both primary and secondary in nature. The primary
data was collected by direct interaction with the retail outlets owners and lubricant distributors.
The secondary data was collected from sources like the internet, reference books, company
magazines etc. data was also collected with the help of a questionnaire and personal interviews.
From the analysis we can conclude that marketing defines role in any company strategy. This
tool has to be used in order for the company to excel in the sales.

Chapter 2
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OBJECTIVE AND
SCOPE OF THE
PROJECT

OBJECTIVES: -

• To know about the brand which the distributor is dealing currently.

• To understand why the distributor is dealing into the current brand


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• To know how effectively the marketing practices are carried out to attract the customers
with retailer’s expectations.

• To know whether the distributor has any plan to diversify or deal into any new brand
• To. find out which is the next preferred brand

• To. know since when they are dealing into this business.

• To know whether they have any other business apart from this , if yes then why ?
.

• To find out the monthly volume for the product .

• To find out their areas of operation

• To know about their major customers.

• To know about the different departments in their setups.


• To interact with the sales person, accounts person, billing person of the distributor and to
know about their daily routine work.


• NEED AND SCOPE OF THE STUDY

• The study gives a clear picture about the marketing possibilities of the lubricants in the
selected region (central Mumbai)
• To understand the different channels of distribution and their network for various brands.
• The study gives us the clear idea of different work plan adopted by the different lubricant
distributors.
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• The study gives the information about the monthly volume in terms of value for different
products under different brands.
• The study helps us to understand the different sales promotion strategy adopted by the
competitors.
• The study gives us the clear idea about the leading lubricant brand in the market .

Chapter 3
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Company Profile

Bharat Petroleum Corporation Limited


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Bharat Petroleum Corporation Limited (BPCL) is one of the largest state-owned oil and gas
company in India, with Fortune Global 500 rank of 287 (2008).[2][3] Its corporate office is located
at Ballard Estate, Mumbai.[4] As the name suggests, its interests are in downstream 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-nationalisation (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) is engaged in the petroleum industry in


India. During the fiscal year ended March 31, 2009 (fiscal 2009), the aggregate refinery
throughput at BPCL's Refineries at Mumbai and Kochi, along with that of BPCL's
subsidiary company, Numaligarh Refinery Limited (NRL), was 22.20 million metric tons
(MMT). The Company is engaged in downstream petroleum sector, which consists of
refining and marketing activities. BPCL holds 61.65% interest in NRL as on March 31,
2009. Bharat PetroResources Limited (BPRL), a 100% subsidiary of the Corporation,
holds 50% equity in VB (Brazil) Petroleo Private Ltda., a joint venture company. BPRL
has participating interests in nine exploration blocks. BPRL also has participating interests
in five blocks in the United Kingdom, Australia and Oman.

History
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• Early History - Dawn of a New Era



Do take some time off for a brief interlude with the past, as we take you back in time to the
evolution of Bharat Petroleum Corporation Limited. A new chapter in the history of Indian
industry.
Petroleum (derived from Latin Petra - rock and oleum - 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 deodorised 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.

• From Nothing to Gold


The 1860s saw vast industrial development. A lot of petroleum refineries also came up.
An important player in the South Asian market then was the Burmah Oil Company.
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 over numerous refineries and pipelines to later form the
giant Standard Oil Trust. The largest rivals of Standard Oil - Royal Dutch, Shell, Rothschilds -
came together to form a single organisation: Asiatic Petroleum 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.
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• The Pioneering Spirit - Burmah Shell Marketing

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.
The company took up the challenge of reaching out to the people even in the remote
villages to ensure every home had its supply of kerosene. The development and
promotion of efficient kerosene-burning appliances for lighting and cooking was an
important part of kerosene selling activity.
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.
On 15th October 1932, when civil aviation arrived in India, the company had the honour
of fuelling J.R.D. Tata's historic solo flight in a single engined de Havillian Puss Moth
from Karachi to Bombay (Juhu) via Ahmedabad. Thirty years later, i.e. in 1962, Burmah
Shell again had the privilege to fuel JRD Tata's re-enactment of the original flight.
Burmah Shell also fuelled flying boats, which carried airmail at slightly higher rates than
sea transport, at several locations.
As a true pioneer would, the company introduced LPG as a cooking fuel to the Indian
home in the mid-1950s. And all along, it went beyond selling petroleum, to educate the
customer. Besides selling Bitumen, the company pioneered desert road construction,
training road engineers. It provided free technical services to industrial customers - big
and small - and it became a part of the company's culture.

• On Stream - The Burmah Shell Refinery


An agreement to build a modern refinery at Trombay, Bombay was signed between the Burmah
Shell group of companies and the Government of India on 15th December 1951.
Burmah Shell Refineries Limited was incorporated as a private limited company under the
Indian Companies Act on 3rd November 1952, and work began on the marshland of Trombay at
Bombay. Man and machine worked relentlessly, and soon the swamps gave way to towers and
tanks of steel, and miles of pipeline.
The refinery on 454 acres of land at village Mahul went on-stream on 30th January 1955, one
year ahead of schedule. Dr. S. Radakrishnan, Vice President of India, declared the 2.2 MMTPA
(Million Metric Tonnes Per Annum) Refinery open on 17th March 1955. It was then the largest
refinery in India then.
With this infrastructure, free India moved one step closer to self-reliance.

• From Burmah Shell to Bharat Petroleum



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On 24th January 1976, the Burmah Shell Group of Companies was taken over by the
Government of India to form Bharat Refineries Limited. On 1st 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.

Shaping the Future The core strength of Bharat Petroleum Corporation Limited has always
been the ardent pursuit of qualitative excellence for maximisation of customer satisfaction. Thus
Bharat Petroleum, the erstwhile Burmah Shell, has today become one of the most formidable
names in the petroleum industry.

Bharat Petroleum produces a diverse range of products, from petrochemicals and solvents to
aircraft fuel and speciality lubricants and markets them through its wide network of Petrol
Stations, Kerosene Dealers, LPG Distributors, Lube Shoppes, besides supplying fuel directly to
hundreds of industries, and several international and domestic airlines.

• Dynamic Growth Post Nationalisation


Following Nationalisation in 1976, Bharat Petroleum changed gears and embarked upon a rapid
growth path. Turnover, profitability and financial reserves grew by leaps and bounds. Massive
expansion and modernisation provided a tremendous boost to the company's performance.
Large-scale recruitment and training became critically important to meet the demands of
expansion.
• The Winds of Change - A Transformed Organisation Emerges
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Opening up of the Indian economy in the nineties brought with it more competition and
challenges, kindled by the phased dismantling of the Administered Pricing Mechanism (APM)
and emergence of additional capacities in the region in refining and marketing.
In 1996, Bharat Petroleum went through a process of visioning, involving people at all levels,
which evolved a shared vision and a set of shared values. Based on this, the company
restructured itself, in a proactive move to adapt to the emerging competitive scenario. The
function-based structure was carefully dismantled and replaced with a process-based one. This
made the company more responsive to its customer needs.
Bharat Petroleum realises that, in the long run, success can only come with a total reorientation
and change in approach with the customer as the focal point. Today, Bharat Petroleum is
restructured into a Corporate Centre, Strategic Business Units (SBUs) and Shared Services and
Entities. The organisational design comprising of five customers facing SBUs, viz. Aviation,
Industrial and Commercial, LPG, Lubricants and Retail and one asset based SBU, viz. Refinery,
is based on the philosophy of greater customer focus

• Dynamic Growth Post Nationalisation


Following Nationalisation in 1976, Bharat Petroleum changed gears and embarked upon a rapid
growth path. Turnover, profitability and financial reserves grew by leaps and bounds. Massive
expansion and modernisation provided a tremendous boost to the company's performance.
Large-scale recruitment and training became critically important to meet the demands of
expansion.

• The Winds of Change - A Transformed Organisation Emerges

Opening up of the Indian economy in the nineties brought with it more competition and
challenges, kindled by the phased dismantling of the Administered Pricing Mechanism (APM)
and emergence of additional capacities in the region in refining and marketing.
In 1996, Bharat Petroleum went through a process of visioning, involving people at all levels,
which evolved a shared vision and a set of shared values. Based on this, the company
restructured itself, in a proactive move to adapt to the emerging competitive scenario. The
function-based structure was carefully dismantled and replaced with a process-based one. This
made the company more responsive to its customer needs.
Bharat Petroleum realises that, in the long run, success can only come with a total reorientation
and change in approach with the customer as the focal point. Today, Bharat Petroleum is
restructured into a Corporate Centre, Strategic Business Units (SBUs) and Shared Services and
Entities. The organisational design comprising of five customers facing SBUs, viz. Aviation,
17

Industrial and Commercial, LPG, Lubricants and Retail and one asset based SBU, viz. Refinery,
is based on the philosophy of greater customer focus

Marketing

At Bharat Petroleum, we understand your needs 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. And it is not easy as our customer base is a diverse one demanding of us to
perform better and satisfy the needs of some of you who fly in the air to the larger Indian
populace who survive on ‘Kerosene’ as their cooking fuel. It is our duty to return all of you a
satisfied one…

Fueling Automotives
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Ensuring you reach your destination - Swiftly & conveniently.


Vehicle owner`s are always on the lookout for new offerings as well for tips & pointers to keep
their vehicles in top shape. We at BPCL understand your requirements and have consistently
tried to satisfy your needs. Information about all the high-class fuels for your vehicle as well as
the lubricants to keep your wheels running smoothly

Offering World Class Fuels :-

Since 2002, we 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 we 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, we 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.:-

Making a Difference through Innovative Retailing:-

At Bharat Petroleum we understand your needs as customers and relentlessly work towards
fulfilling these needs. We have consciously worked towards providing added value to our
customers in fuel and non-fuel areas. The Corporation offers products and services that have
been designed to meet the need gaps of its customers. We have introduced several pioneering
offerings in Indian Petroleum retailing scene.

Servicing the Customers Need:-

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
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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.

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, 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.
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 through out tie ups with Mc Donalds, Caf Coffee Day, Subway,
Pizza Hut and other leading retail chains

Caring for your Vehicles Needs:-

We also aim to provide service centre facilities through our 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. We have tie ups with Hero Honda and
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General Motors for being their authorized After Sales Service Centres 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.

AUTO LPG:-

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

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,
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.

CNG:-
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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 (Liquified
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 Liquified
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.
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 litre 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.

Fueling Industries:-

To cater to Industries needs of fuels and other petrochemicals ( used as raw materials for
Industries), Bharat Petroleum`s Industrial and Commercial Business Unit, commonly known as
I&C SBU was formed. Currently I&C SBU caters to approx. 8000 industrial customers spread
across all over the country. These include industries from the Public & Private sectors, of the
core and non core segments and various Govt. establishments such as Defense, Railways, State
Transport Undertakings, State Electricity Boards etc.

All major industrial customers, so as to say, the who`s who of the industrial world such as
Reliance Industries, TATA, Birla Group of industries, TELCO, BALCO,NALCO, ITC,
Hindustan Unilever Ltd, NTPC, Sterlite Industries, Fertilizer plants such as Sriram Fertilizers,
FACT, KRIBHCO, NFL, Deepak Fertilizers & Petrochemicals etc. feature in our list of
esteemed customers. Major products handled includes fuels (MS, HSD, LSHS, NAPHTHA,
FURNACE OIL), solvents ( MTO, SBP, HEXANE) speciality products such as BENZENE,
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TOLUENE,CRMB ( Crumb Rubber Modified Bitumen) , PMB (Polymer Modified Bitumen)


etc.

The E- commerce initiative :-

BPCL has leveraged Information Technology as an enabler to establish a leadership position in


the Oil Industry. Integrating all its business operations with an ERP from SAP was the first step,
and subsequently capping with a B2B site.

Enhanced customer satisfaction being BPCL’ s motto, it became the first oil company to embark
on a voyage from Brick to Click ( Business to Business e- commerce). This B2B portal enables
the customer to place an order online, track the status of his order, view dispatch information,
which results in better inventory management, better financial information and more
convenience for them.

The portal is also integrated with the ERP system, which now reduces the response time, and
helps to capture data from Kochi and Numaligarh refineries. The portal also enables customers to
view their statement of accounts, thus enabling sharing complete information with the customers.

I&C SBU also activated the SMS alerts through which the customer gets information about
dispatch of loads made to them. This value added service not only enables them make
arrangements for unloading of the products without time delay but also saves the botheration of
having to hunt for information about the status of their order.

e- banking :-

To facilitate easy and convenient way of making payment, Bharat Petroleum has tied up with
ICICI, HDFC and SBI through which Industrial customers could make payment for their
supplies on net. However, this facility was available only to those customers holding account
with one of these banks. In order to overcome this limitation, BPCL tied up with BNP Paribas
Bank which offered the validation of RTGS process that facilitates payment by RTGS/NEFT by
a customer holding account with any bank/branch with core banking facilities.

Since introduction of this facility, customers are enrolling in large numbers. The e- banking turn
over has crossed Rs.3000 crores during 2007-08 and I&C has ambitious plans to double the e-
banking turn over in 2008-09 and 100% customer enrolment for payment by RTGS/NEFT.
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Industrial fuel products:-

Bharat Petroleum Manufactures and supplies various industrial fuels to its customers across the
country. Listed below are the common fuels used in India for Industrial purposes:

Gases
Poly Propelene Feed Stock (C3)
Natural Gas
LPG
Bharat Metal Cutting Gas
Fuels
Marine Fuels
White Oils
Black Oils
Solvents and Special Products
Bitumen
Lubricants
Sulphur

Services :-

Customer Care :-

BPCL takes pride in assuming the role of “Fuel Managers”, for major storage and handling of
petroleum products, customers, by providing technical know-how on storage, handling and
conservation of petroleum products. This is in addition to the usual spectrum of services, viz.
customized products, technical seminars, fuel management systems, energy and safety audits and
terminalling of petroleum products.

Interaction:-

With the objective of bringing industrial customers of diverse interests on a common platform
BPCL has established Customer Advisory Boards. The 18 meetings held by this board resulted
in a plethora of suggestions and also provided invaluable insights into customer needs and
expectations.

Price list :-
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AUTOMOTIVE FUELS 16 Jul 2010


Select Product SellingUnit Mumbai Delhi Chennai Kolkata

SPEED LITRE 58.4 53.85 58.45 58.85

SPEED 97 LITRE 70 70 70 70

Hi SPEED DIESEL LITRE 44 42 42 41.8

AVIATION FUEL 16 Jul 2010


SelectProduct SellingUnit MumbaiDelhi Chennai Kolkata
AVIATION TURBINE FUEL
KL 41361.2140099.144333.8248460.46
(DOMESTIC)

DOMESTIC FUELS 16 Jul 2010


Select Product SellingUnit Mumbai Delhi Chennai Kolkata

SUP. KEROSINE OIL (DOMESTIC) LITRE 9.01 8.91 8.42 9.27

LPG PACKED -(14.2 Kgs) CYLINDER313.45 281.2 316 328.7

INDUSTRIAL FUELS(Basic prices before ED and Taxes) 16 Jul 2010


Select Product SellingUnit Mumbai Delhi Chennai Kolkata

LSHF - HSD LITRE 37.4 0 0 0

LSHS MT 26370 26980 26640 26770

MTO (LAWS) KL 38000 0 0 0

NAPHTHA MT 34340 35050 34570 34680

PP FEEDSTOCK- (C3) MT 40400 0 0 0


25

SBP 55/115 KL 37100 0 0 0

TOLUENE MT 40000 0 0 0

SUP. KEROSINE OIL KL 29670 0 0 0

BENZENE MT 43250 0 0 0

BITUMEN -VG 40 ( bulk) MT 28720 0 0 0

BITUMEN - VG 30( bulk) MT 27320 0 0 0

BITUMEN -VG 10( Bulk) MT 26520 0 0 0

BITUMEN - VG 40 (packed) MT 31820 0 0 0

BITUMEN - VG 30 (packed) MT 30420 0 0 0

BITUMEN - VG 10 (packed) MT 29620 0 0 0

FURNACE OIL MT 24870 25580 25140 25270

HEXANE KL 34100 0 0 0

LABFS KL 29800 0 0 0

LIGHT DIESEL OIL KL 32470 0 0 0

MOLTEN SULPHUR MT 5500 0 0 0

SULPHUR MT 5500 0 0 0

LPG 16 Jul 2010


Select Product SellingUnit Mumbai Delhi Chennai Kolkata

Lpg-14.2 CYLINDER 0 0 0 0

MS/HSD 16 Jul 2010


Select Product SellingUnit Mumbai Delhi Chennai Kolkata
26

MOTOR SPIRIT LITRE 55.88 51.43 55.92 55.32

HSD(0.05% Sulphur) LITRE 41.98 40.1 40.07 39.94

Fueling home :-

Bharatgas from Bharat Petroleum has dominated the LP Gas market in India for over three
decades. Today over 25 million homes in India, wake up each morning to enjoy the cup that
cheers prepared on Bharatgas. Similarly, hundreds of commercial and industrial establishments
start their day, confident and secure, having entrusted their LP Gas needs to Bharat Petroleum.
A pioneer in more ways than one, Bharatgas has brought many innovative offerings to the
customers.

To name a few:-

Easy access to customers through various modes including online access


Home delivery of cylinders

Value added services to customers by venturing into allied business to meet consumers
household needs

LP Gas supplies through pipeline to mega residential complexes

An innovative solution to reach LP Gas supplies to rural and remote areas through the Rural
Marketing Vehicle

Revolutionising the metal cutting & brazing industry with the new product Bharat Metal Cutting
Gas.

Bharatgas where innovation is a way of life!!!


27

Fueling skies :-

The history of Indian Civil Aviation is synonymous with the history of Bharat Petroleum
Corporation Ltd.(BPCL) -Aviation Service. BPCL has completed more than 75 years of Aviation
Service. BPCL-Aviation Service is present at all the major gateways and other airports in the
country rendering into-plane services to leading domestic and international airlines and operating
the Aviation Fuelling Stations. BPCL which started as Bharat Shell has been the pioneer in
Aviation Fuelling Service. The first powered flight was refuelled in 1911. In 1928, KLM flew
the first civil air transport route across India - from Amsterdam to Batavia and BPCL serviced
their Fokker F-VII-A aircraft at Karachi, Jodhpur, Allahabad and Dum Dum. The list of Firsts
goes on

Apron Fuel Management System and 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.

Hydrant Owners & Operators and Equity Stake at Cial:-

BPCL is the first oil company to participate in Greenfield airport in India. We 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 us.
28

BHARAT STARS Services Pvt. Ltd- a Joint Venture Company of BPCL

At new Bangalore International Airport Pvt. Ltd., BPCLs Joint Venture Company BHARAT
STARS Services Pvt. Ltd. is providing world class Into-Plane Refuelling service to domestic and
international airlines.

It is no wander that due to trust reposed by its esteemed airline customers; BPCL Aviation
Service is aptly known as Fuellers to the leading Airlines of the World.

Overseas Project:-

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

Accolade:-

Aviation Business Unit of BPCL has been awarded Golden Peacock Innovative Product/Service
Award in Petroleum Sector for the implementation of the use of state-of-the-art Apron
Management System, to help provide better service to their service to their customers
29

Refining
Bharat Petroleum’s Mumbai Refinery (BPMR’s)

(BPMR) is one of the most versatile Refineries in India and excels in all aspects like quality,
technology, fuel & loss, human relations, safety, environmental friendliness and operating cost.
With successful implementation of various projects and de-bottlenecking, our Refineries
currently processes about 12 Million Metric Tons of crude oil per annum. BPMR has processed
61 different types of crude in five decades of its operations, making it one of the most flexible
Refineries in the country. Our Refinery use latest microprocessor based Digital Distributed
Control System (DDCS) and have been accredited with ISO 9002 (Quality Management
System), the refinery laboratory has also been accredited with the unique distinction of a quality
certification from NABL for “Quality Assurance Laboratory”.

It is the first Indian work site to achieve a Level 8 rating on the International Safety Rating
System (ISRS).:-

ISRS is a tool owned by Det Norske Veritas, UK for comparison benchmarking and
development of safety management systems worldwide. ISO 14001 (Environmental
Management System) certifications has also been conferred to BPCR’s for effective deployment
of environmental care measures.

Refinery Modernisation Project (RMP):-

Mumbai Refinery has modernized the facilities with an objective to reduce source emission,
30

improve the product quality to EURO III standard apart from enhancing the crude processing
capability of Refinery to 12 MMTPA from the existing level of 9 MMTPA.

Space being the biggest bottleneck in Refinery as on date and hence the major challenge posed
for this project was the creation of plot area for all the units by way of dismantling of existing
tankages (21 nos.) and resiting operating unit to accommodate new unit.. This was a unique
project in itself, fully integrated with operating refinery in all aspects – crude supply, fuel, water,
steam distribution and to blending of all old/new process streams to run to existing tanks. This
was truly building a new refinery within an operating refinery.

The completion and commissioning of the facilities of Refinery Modernisation Project also
marks the achievement of Processing refining capability of 12 MMTPA crude apart from
reducing the source emissions. It is a proud privilege for BPCL, Mumbai refinery to have
commissioned these facilities in its 50th year of refining, raising the capacity to 12 MMT/A.

International Trade and Shipping (IT&S) :-

(IT&S) is an integral part of Mumbai Refinery and is fully equipped to import and export
petroleum products, it caters to crude oil acquisition (both indigenous and imported). In addition
it also handles the logistics by chartering of vessels for both crude and products,

Corporate R&D Centre (CRDC):-

(CRDC) set up at NOIDA near Delhi with state-of-the-art facilities is backed with a vision to
develop high value products, services, processes & technologies and create innovative R&D
solutions to earn customer’s delight. Phase – 1 of the new Corporate R&D center has been set-up
at a cost of Rs 780 Millions. The Department of Scientific & Industrial Research, Government of
India, recognizes BPCL’s in-house R&D center- CRDC.
31

Bharat Petroleum’s kochi refinery:-

Kochi Refinery, a unit of Bharat Petroleum Corporation Limited (BPCL), embarked on its
journey in 1966 with a capacity of 50,000 barrels per day. Formerly known as Cochin Refineries
Limited and later renamed as Kochi Refineries Limited, the refinery was originally established as
a joint venture in collaboration with Phillips Petroleum Corporation, USA. Today it is a frontline
entity as a unit of the Fortune 500 company, BPCL.

Kochi Refinery, located at Ambalmugal near the city of Kochi in Kerala, is one of the two
Refineries of BPCL, presently having a crude oil refining capacity of 9.5 Million Metric Tonnes
per Annum (MMTPA). The product portfolio of the 190,000 barrels per day refinery today
includes petrochemical feedstocks and specialty products in addition to its range of quality fuels.
Fuel products of this fuel based refinery includes Liquefied Petroleum Gas, Naphtha, Motor
Spirit, Kerosene, Aviation Turbine Fuel, High Speed Diesel, Fuel Oils and Asphalt. Specialty
products for the domestic markets include Benzene, Toluene, Propylene, Special Boiling Point
Spirit, Poly Iso Butene and Sulphur.

The refinery has implemented world class technology and systems for operations and enterprise
resource planning. It is an ISO 14001 Environmental Management Systems (EMS) and ISO
9001:2000 Quality Management System (QMS) accredited company and has also obtained the
ISO 17025 (Testing Methods in Quality Control) certification from NABL (National
Accreditation Board for testing & Calibration of Laboratories). The refinery has successfully
implemented the Occupational Health and Safety Management System (OHSAS) 18001:2007 in
the year 2009.

With the prestigious Crude Oil receipt facilities consisting


of the Single Point Mooring (SPM) and the associated
shore tank farm in place since December 2007, the refinery
is equipped to receive crude oil in Very Large Crude
Carriers (VLCCs). This facility helps Kochi refinery in
reducing the freight charges to a great extent, over and
above increasing flexibility in crude oil selection. This,
thereby, is a major infrastructure facility to accelerate the
future growth of Kochi Refinery.

The refinery has facilities to evacuate products to the consuming centres through road, rail, ships
and through pipelines. All the major industries in the area are connected to the refinery for
32

product receipt. The BPCL installation at Irumpanam, to which the refinery is connected by
pipelines, is the major product distribution centre of the refinery. Petronet CCK, a joint venture
company of BPCL looks after the 300 km long pipeline that connects the refinery to various
consumption points in Tamil Nadu such as Coimbatore and Karur.

Of the two-part Capacity Expansion cum Modernisation Project (Phase–II), the capacity
expansion to 9.5 MMTPA has been successfully completed and refinery modernisation slated for
completion in August 2010 would equip the refinery to produce auto-fuels conforming to Euro-
III and partly Euro-IV specifications.

The refinery’s foray into direct marketing began since 1993 through marketing of its aromatic
products - Benzene and Toluene. The entry into the international petroleum business stream
began with its first parcel of Fuel Oil exported in January 2001. Since then the refinery, has
earned the reputation as a reliable player in the international trade, by virtue of superior product
quality and customer service. Moreover, the Fuel Oil has been benchmarked in the Singapore
and Dubai Fuel Oil markets.

Kochi Refinery is situated in Kochi, the most happening city in Kerala that is rightly called
God’s own country. The refinery has a unique bond with its environment which is evident in the
green blanket so carefully nourished right around it. The refinery has been blessed with a fine
topography and the entire complex, spreading across over thousand two hundred acres has been
so constructed as to blend naturally with it. Upcoming expansions and developments would also
adhere to this philosophy of blending with nature. The most recent addition to the refinery
architecture is the rainwater harvesting pond and eco-park that has been converted to a must-see
spot with sprawling landscaped lawns and thatched canopies for conferences and get-togethers.
Year after year the refinery has been bagging accolades for its commitment to the environment;
for the all round care for the environment, the judicious storage, use and reuse of water, the
efficiency in managing solid wastes and effluents and the care taken to keep the atmosphere
clean.

The recent achievement of 18 million accident free man-hours stands testimony to the fact that
the prime focus of Kochi Refinery is on safety in everything we do. From training to retraining,
and adhering to international standards in safety practices, both, offsite and onsite, Kochi
Refinery has taken it as a mission to make safe living and working a natural mantra of its
employees, contract workers, customers and the general public. Several awareness programmes
have been successfully conducted to this effect with the results for all to see.

As a socially responsible corporate citizen, the community welfare initiatives of the refinery
concentrate on developing the weaker sections of society, particularly, the scheduled castes and
scheduled tribes and people below the poverty line in important sectors like health, education,
housing and women empowerment. Most of the programmes falling under the categories of
medical and educational assistance turned out to be poverty alleviation measures also. This is
since the programmes like universal health insurance, scholarship to SC/ST students and medical
camps for poor have helped the poor villagers in the refinery vicinity to save money over their
medical expenses and educational expenses of children. Various people intensive
33

Numaligarh refinery :-

Nestling in the sylvan environs of the Brahmaputra valley where the beautiful rendezvous of
water and land throws up myriad colours, Numaligarh Refinery Limited (NRL), which was set
up at Numaligarh in the district of Golaghat (Assam) in accordance with the provisions made in
the historic Assam Accord signed on 15th August 1985, has been conceived as a vehicle for
speedy industrial and economic development of the region.

The 3 MMTPA Numaligarh Refinery Limited was dedicated to the nation by the erstwhile
Hon'ble Prime Minister Shri A. B. Vajpayee on 9th July, 1999. NRL has been able to display
creditable performance since commencement of commercial production in October, 2000. With
its concern, commitment and contribution to socio-economic development of the state combined
with a track record of continuous growth, NRL has been conferred the status of Mini Ratna PSU.

The present authorized capital of the company is Rs. 1000 crores and paid up capital is Rs.
735.63 crores. The shareholding pattern as on 31-03-2006 is given below :

Bharat Petroleum Corporation Limited :: 61.65%


Govt. of Assam :: 12.35%
Oil India Limited :: 26.00%
Total :: 100%

Product Range :

Our product range includes LPG, Naphtha, Motor Spirit ( MS), Aviation Turbine Fuel
( ATF)Superior Kerosene Oil ( SKO)High Speed Diesel (HSD), Raw Petroleum Coke ( RPC )
Calcined Petroleum Coke ( CPC) & Sulphur.

Retail Segment :

Strategic decision was taken to enter into the Retail Distribution segment. Permission was
received from Govt. of India to market MS & HSD through a chain of 510 Retail Outlets in a
phased manner. Hitherto, scores of retail outlets, aptly christened 'Energy Stations' have already
been commissioned in the North East and other parts of India and the process continues.
34

Commitment to the community : NRL is conscious of the fact that the ongoing process of
economic reforms is irreversible and the challenge of change on all facets of business and
environment is inevitable. So is the fact that the real purpose of business is human well being.
This dictum remains the driving force of all our social commitments. In keeping with this
ideology, the company has both spawned and sponsored a succession of social initiatives which
entail such diverse activities as providing relief to upgrading skill and productivity of the
beneficiaries

THE MARKETING TERMINAL

Numaligarh refinery has implemented one of the most sophisticated Marketing Terminals. After
meeting the requirement of petroleum products in North-East, the surplus petroleum products are
moved out to other parts of the country. At current demand level, 15% of Numaligarh Refinery
production is absorbed within the North-East. At Marketing Terminal state of the art Terminal
Automation System (TAS) has been installed to affect the despatches both through road and rail.
The TAS solution was imported from M/s Alstom, France and adopted in the year 2000. The
TAS is seamlessly integrated with the ERP System to enable operation and business processes
work in tandem.

The first rake of products from the Marketing Terminal was flagged off by Honourable Minister
for Petroleum & Natural Gas, Shri Ram Naik on 9th April 2000.

Bharat Oman Refineries Limited :-


35

Bharat Oman Refineries Limited (BORL), is a company promoted by Bharat Petroleum


Corporation Limited (BPCL) with equity participation from Oman Oil Company Limited
(OOCL) to set up a 6 MMTPA grass root refinery at Bina, District Sagar, Madhya Pradesh,
India. The project also involves a crude supply system consisting of a Single Point Mooring
system (SPM), Crude Oil Storage Terminal (COT) at Vadinar, District Jamnagar, Gujarat and
935 Km long cross country crude pipeline from Vadinar to Bina.

The project envisages setting up following facilities:

6 MMTPA refinery located at Bina, District Sagar, M. P., for production of petroleum products
Crude receipt & dispatch facilities comprising a Single Point Mooring (SPM) system and a
Crude Oil Terminal (COT) at Vadinar, District Jamnagar, Gujarat, and a 935 km cross country
crude oil pipeline (24” diameter) from Vadinar to Bina pipeline (VBPL)
Pet Coke based Captive Cogeneration Power Plant (CPP) of 99 MW (33 x 3), and
Infrastructure facilities at the refinery as well as at COT e.g., township, water supply system, etc.
Bina Refinery is adopting state-of-the-art technologies designed to process Arab Mix crude (65%
Arab Light and 35% Arab Heavy). It will also have the flexibility to process other types of
Middle East crude.

Products :-
The product slate favours maximization of Middle Distillate (ATF & HSD) and minimization of
Furnace Oil. Bina Refinery configuration is capable to produce Euro-3/Euro-4 quality
specifications of Gasoline & Diesel Products. Sulphur is the by-product from the refinery.

Product Specifications:-

Specification For Liquefied Petroleum Gas (IS 4576 - 1999)


Indian Petrol Specifications Required To Meet Euro-III Equivalent Emission Norms
Indian Petrol Specifications Required To Meet Euro-IV Equivalent Emission Norms
Indian Diesel Specifications Required To Meet Euro-III Equivalent Emission Norms
Indian Diesel Specifications Required To Meet Euro-IV Equivalent Emission Norms
Specification for SKO (IS 1459 – 2001)
Specification For Aviation Turbine Fuel (IS 1571 - 2001)
Light Aromatic Naphtha Specification

International Trade
36

Crude Imports :-

The total crude requirement for BPCL and its group company is approximately 22 MMTPA. Part
of the requirement, about 40%, is met out of indigenous crude production by ONGC and OIL.
Balance requirement is met through Imports on Term and Spot basis.
Term agreements are entered into with NOC on OSP basis. Spot cargoes are imported on need
basis through tender system. Tender invitations are only sent to counterparties who are registered
with BPCL. Companies interested in registering with BPCL for supply of Crude Oil, please click
here for details of contact person and registration template

Products
Imports
BPCL imports products depending upon the domestic demand supply scenario. BPCL on a
regular basis imports its LPG requirements mainly from the Middle East. Occasional there are
import requirements of Gasoil, Kerosene, Gasoline and Base Oil.

Exports
BPCL exports products from its refineries on a regular basis. The products which are exported
regularly are Fuel Oil, Naphtha and Base Oil (Group II). Products exports are done on both FOB
and CFR basis.
Both import and export of products are done through tender. Tender invitations are only sent to
counterparties who are registered with BPCL. Companies interested in registering with BPCL for
buying/supplying products, please click here for details of contact person and registration
template.

Ship Chartering:-

Shipping requirements; be it import/export or domestic coastal movement are handled by the


chartering desk. All the three types of chartering; viz. Time Charter, Spot Charter and COA
(Contract of Affreightment) are used to charter ships. Bharat Petroleum transports nearly
15MMT of Crude Oil and Products annually

Price Risk Management


BPCL hedges it refinery margins in the OTC swap market. The product cracks hedged are
Naphtha, Kerosene, Gasoil & HSFO. Hedging requirements for Import/Export cargoes are
undertaken on need basis. Counterparties are made of strong mix of Banks, Traders and Oil
Majors.

MAK LUBRICANT
37

Bharat Petroleum offers a full range of Automotive Engine Oils, Gear Oils, Transmission oils,
Specialty Oils and Greases. The correct usage of these Lubricants of right quality ensures
prolonged and trouble free vehicle operation, providing maximum benefits to the users of present
day modern vehicles.

Overview

In line with the economic liberalisation in India, Lubricants was the first downstream Petroleum
product to be totally deregulated with effect from 1991. Since then a large number of players -
National, MNCs as well as Global Players - have entered the Indian Lubricants market. Despite
operating in a totally competitive environment, BPCL's Lubricants SBU has been registering a
growth in lubricant sales continuously over the past couple of years. In 2007-08, an overall
growth of 10% has been registered, with a healthy turnover of Rs. 1680 crores (approx USD 350
million).
In 1998, we re-launched our Lubricants in new attractive packs, mainly in Automotive category
with three major brands depicting each segment- Mak for Diesel Engine oils, Automol for Petrol
Engine oils and Glide for Two/Three wheelers(mainly 2T then). In the year 2003, we decided to
go for Umbrella Brand-MAK Lubricants, in subsequent years, branded all our industrial grades
with MAK.

Retail Channel

Our core strength is our retail outlet network across the country, this comprises of about 7530
retail outlets. Our Lubes SBU have undertaken various initiatives in co-ordination with Retail
Business to grow our sales volume through this channel. Initiatives undertaken by the SBU are
setting up of Hero Honda City Works, Tata Authorised Service Station (TASS) and installation
of Quick Oil Change Machines at retail outlets.

Bazaar Channel

With a network of 190 PLDs, 600 MAK Garages and MAK Mobile Vans established to improve
reach and penetration in rural and unrepresented areas of MAK Brand, the SBU could reach to
the last mile as far as the customers are concerned! We continue to improve our brand visibility
across the network and there by increasing our market share across the segments.

Industrial Channel

Large number of prestigious customers has been added during the year to our already existing
prestigious customer list. We are also suppliers of initial engine oil fill to TATA Motors, TVS,
and Hero Honda etc. We also hold respectable share of Railway and Defence business.
38

Infrastructure

The Lube Plants at Wadilube (Mumbai), Budge Budge (Calcutta), Loni (Delhi) and Tondiarpet
(Chennai) have organised themselves as close-knit teams to maximize levels of production and
dispatch. The Plant at Wadilube is an ISO 9001:2008, ISO 14001:2004 & OHSAS 18001:2007
certified Plant. As part of the ongoing improvements in packaging, the new series of packages
developed entirely in-house have been introduced.

Other initiatives

To support the business initiatives, a major thrust has been given to improving BPCL’s product
offering and increases its market presence. The new R&D Center at Sewree, Mumbai, has
developed a number of new products in the automotive and industrial categories. Towards higher
visibility, substantial investments have been made in revitalising the brands through product
quality and package improvements. The entire distribution system has been revamped with the
formation of Supply Chain Management department to ensure that products are more
conveniently available and distinctively visible in the market price. Exclusive branded Lube
Shoppe's have been opened all over the country to improve our reach, as well as many innovative
& unconventional methods are being used to create brand awareness especially in the diesel oils
segments.
Another major initiative has been to reach the products to the rural population through the tie-up
with ITC – e-choupal network which has spread the MAK brand across the country in rural areas
also. Currently this network is available in Uttar Pradesh, Maharashtra, Rajasthan, and Madhya
Pradesh and is likely to extend to other states also shortly.
MAK also embarked on another thrust area of enrolling garages across the country in the
network of “MAK Garages” there by providing standardized service across the network. This
initiative not only provides opportunity for the garages to enhance their business opportunity but
also provides an assurance to the end customers that their vehicles are getting the right kind of
lubricants.

Brand Ambassador

To promote MAK brand among the youth and improve the brand visibility, MAK signed up
M.S.Dhoni as Brand ambassador in the year 2006. The rise of MAK brand in the minds of the
consumers as well as market share coincided with the rise of Dhoni also, who today is the Youth
icon of the year and also the Captain of the Indian team for all versions of the game – like MAK
being the “Champion of All Engines”.
BPCL is confident that it will continue to make substantial and sustained efforts with appropriate
investments, synergies business between channels, improve quality and quantity standards,
invest in R&D for new product development and aggressively build the brands to result in
maximising the value addition for both the business and its customers.
39

Services:-

Lubes Shop
To facilitate customers an easy accessibility for procurement of their
Lubricants requirement and meeting them at their point of need
compelled Bharat Petroleum to open Lubeshoppes. These shoppes
are exclusive lubricants reselling points, which cater to customer
satisfaction confirming with the 'Quality' and other standards of Bharat Petroleum. With the
deregulation and entry of multinationals in the lubricants market, BPCL have experienced a shift
of trade to the 'bazaar'. Recognizing the potential, and the fact that competitors have utilized this
channel segment to their advantage by allowing huge discounts Bharat Petroleum is also
determined to address this customer segment and passing the discount to the end customer
instead of the channel. These branded lubbeshoppes are available in all major cities.

MAK Garage
MAK lubricants has launched this initiative in the year 2006 to
promote MAK lubricants among the mechanic segment by enrolling
them in to the umbrella network of MAK Garage. Currently we have
approximately 800 MAK garages across the country - exclusively
using MAK Lubricants.

Hero Honda Service Stations


A Joint venture initiative between Hero Honda - the worlds largest
bike manufacturer and Bharat Petroleum. This initiative is to utilise
the BPCL network across the country to privide value added services
to our customers through this City Work network at our retail
outlets. Currently we have around 170 HH cityworks operating in the
country.

TASS
TATA Authorised Service Station is another initiative for
strengthening our strong relationship with Auto Major TATA. We
have a tie-up for marketing co-branded
Lubricants/greases/speaciality products - MAK TATA products.
TASS is an extension of this tie-up - providing TATA vehicle
40

service network across the country through out Dealer network. This service network is of two
types - TASS for heavy vehicles and "SUVIDHA" for TATA Ace vehicles.

VCC
Bharat Petroleum launched this new intiative "VEHICLE CARE
CENTRE" at our retail outlets mainly to provide state of the art
servicing facility to our esteemed customers at an affordable rates.
The network is growing and is gaining popularity across the country.

MAK Quik Lube Oil Change


An Initiative to provide the best of service to our esteemed
customers – keeping in mind the value of time, we have initiated the
“MAK Quik Lube oil Change” at many of our Retail outlets. This
initiative is mainly to cater to the Bike and Car/SUV customers to
change the Engine oil in their vehicle with in short span of time. The
major advantages of this initiative to the customer is
Speedy oil change in front of their own eyes.
Mechanized system of Oil change – helps in removing the old oil completely.
Genuine MAK product
Free Oil change facility – Only cost of the product to be paid by the customer.
Quick turnaround time for the customer.
Special offers to the customers.

OEM Tie-ups
OEM Ties
Keeping pace with changing customer preferences, the vehicle/equipment manufacturers are
competing to offer the best Value for Money to customers. Coupled with emerging
environmental regulations and new technologies, OEMs of vehicles and equipments are
constantly trying to reduce maintenance costs.
BPCL is continuously working alongside OEMs to develop and upgrade genuine oils for their
vehicles and equipments to address the requirements of ever changing technology.
Pioneering the cause of industrial growth over the last 3 decades, our R&D and marketing teams
have provided solutions for efficient and specialized lubricant applications in steel, cement,
power, engineering, road construction and other leading industries in India. These applications
41

include various compressor, genset, shock absorber oil manufacturers who provide branded
lubricants for use during and after warranty for peak performance.
Right from the advent of Maruti-Suzuki in 1984, our R&D team at our state-of-the-art R&D
Centre has demonstrated competencies to develop customized solutions for automakers in India.
Our R&D has developed more than 300 different formulations in the past 10 years, out of which
50 were developed in the last 3 years
BPCL commissioned its own LOBS plant at Mumbai, using the latest Chevron Lummus Global
patented ‘All Hydro Processing Technology’ in June 2006. This has enabled us to manufacture
superior quality ‘MAK Base’ oils exceeding the requirement of API Group II (rated as Group
II plus).
OEMs have acknowledged BPCL’s identity of quality base oil producer, best in class R&D
capabilities and marketing acumen.

OEM PARTNERSHIPS:-

In addition to Indian presence with plethora of lubricant options for all cross sections of the
industry, BPCL (MAK LUBRICANTS) also has agreements with leading automotive
manufacturers having both National & International presence.
Original Equipment Manufacturers (OEMs) and Equipment manufacturing industries play a
strategic role in our business. We have a long and successful history of partnerships with leading
OEMs across all vehicle categories. With strong brands, superior technology and width and
depth of distribution, BPCL (MAK LUBRICANTS) is an ideal partner for progressive OEMs
seeking to offer their consumers the best products and services.

Hero Honda Motors Limited - the single largest two-wheeler


manufacturer in the world has an association with BPCL (MAK
LUBRICANTS) since the year 2004. MAK Lubricants during the
five years of association has become the largest supplier of engine
oils for initial fill as well as to HHML dealers, Authorized service
stations and spare part stockists. BPCL has been working closely with HHML & its sister
concerns to develop speciality products like Engine oils and Shock Absorber Fluids which can
meet the stringent HONDA (JAPAN) specifications. Apart from the above BPCL has
commissioned Hero Honda City Works àexclusive servicing option for HHML customers’ at
BPCL Retail Outlets and numbers are growing by the day.

Tata Motors - Commercial Vehicles Division

Tata Motors - Commercial Vehicles Division is the largest


manufacturer of commercial vehicles in India. We have a long and
fruitful relationship with Tata Motors for over 5 years. This
42

includes a strategic alliance for supplying of Engine oils for initial fill as well as Co-branded
engine oils and speciality products to Tata Motors dealerships, Authorized Service Network &
Tata Motor Spare part dealerships across the country. MAK Lubricants has been jointly working
with Tata Motors in all areas including joint product development, promotion and customer
service. BPCL’s MAK TATA MOTORS CH4 15 W 40 was specially developed for Tata Motors
and is endorsed by Tata Motors for use in all their commercial vehicles fitted with both Tata &
Cummins Engine.
Apart from the above BPCL has commissioned Tata Authorized Service Stations servicing
option for TML customers’ at BPCL Retail Outlets and many more are expected to get activated
over the years

General Motors India

General Motors India has already completed 12 years if Indian


Operations and is the manufacturer of diesel & petrol passenger cars
and multi utility vehicles in the country. We have a strategic alliance
for supplying Co-branded engine oils and speciality products to the
General Motors dealerships and authorized service network across the
country. BPCL (MAK LUBRICANTS) is jointly working with General Motors India in all areas
including joint product development, promotion and customer service. BPCL GM MAK
Genuine 15 W 40 Deisel & Petrol Engine Oils were specially developed for General Motors
and is endorsed by General Motor for use in all their passenger cars as well as Utility vehicles.
Apart from the above BPCL has commissioned Vehicle Care Centre àexclusive servicing option
for customers’ wherein GMI has adopted such VCC’s at BPCL Retail Outlets and more such
VCC’s are expected to get activated over the years.

TVS Motor Company Limited

TVS Motor Company is the third largest two-wheeler manufacturer


in India and one among the top ten in the world, with annual
turnover of mo re than USD 1 billion in 2008-2009, and is the
flagship company of the USD 4 billion TVS Group. BPCL (MAK
LUBRICANT) has an exclusive tie-up with TVS MOTOR COMPANY to
supply engine oils for initial service fill as well as TVSM dealers, Authorized service stations
and spare part stockists. BPCL is also working to develop, manufacture and supply specially
formulated engine oils and speciality products for use in TVSM two wheelers as well as factory
requirement. . TVS TRU 4 the first JASO MA 2 specification oils of its kind has been
introduced by BPCL for use in TVSM two- wheelers and is distributed through all TVSM
authorized dealerships & workshops as well as BPCL’s extensive reseller network.

L&T KOMATSU
43

L&T Komatsu is the market leader in the excavator segment & commands more than 50% of the
market share. BPCL (MAK LUBRICANT) has a tie-up with L&T Komatsu for the past 5 years
to supply oils for supply to L&T Komatsu dealerships & users. BPCL is also working to develop
manufacture and supply specially formulated hydraulic transmission oils and speciality products
for use in L&T Komatsu excavators.

Promotion Strategies for Mak Lubricant

MAK MALAMAAL DAILY - "JEET KI KHUSHI"

SCRATCH & WIN - Chance to win upto to Rs. 30 on MAK 4T plus - 900 ml & 1 ltr pack and
chance to win upto Rs. 100 on selected MAK Petrol & Diesel Engine oil packs from 3 ltrs to 5
ltrs. Please contact the nearest BPCL Retail outlet or Lubricants shops for further details.

GADI MEIN DHAMAK HASI MEIN DHAMAK!


44

Promise Tooth Paste and Binaca Toothbrush free with every pack of MAK GE 20W-50 : 1 ltr
pack & MAK PUMP - 3.5 ltr pack

MAK MALAMAAL DAILY - "KISMAT KI BALTI KHOLO"

Chance to win upto Rs. 500 on purchase of MAK Lubricants Engine/gear oils - packs from 7.5
ltrs to 20 ltr packs. Double offer - An unbreakble LED torch light free with every pack of 15 &
20 ltr. Offer available on selected grade packs of MAK lubricants - please contact the nearest
BPCL retail outlet or Lubricant shops for further details.

Board of Directors of BPCL

Management – BPCL

Name Designation

Ashok Sinha Chairman and Managing director

S K Joshi Director (Finance)

S Mohan Director

N Venkiteswaran Director

I P S Anand Non Official PartTime Director

Alkesh Kumar Sharma Government Director

Name Designation
45

S Radhakrishnan Director (Marketing)

R K Singh Director

P K Sinha Director

S K Barua Director

Haresh M Jagtiani Non Official PartTime Director

Chapter 5

RESEARCH
METHODOLOGY
46

Research methodology comprises of all research activities carried in connection with the
marketing management. Marketing research, systematic analysis of the marketing problems,
model building and facts finding for the purpose of improvements in decision making and
control in the marketing of the products and services.

Research methodology may be understood as a science of studying how research is done


scientifically. To plan research project, it is necessary to anticipate all the steps that must be
undertaken if the project is to be completed successfully. These steps are often referred
collectively as research process.

Research methodology states the study undertaken to complete the project. It includes
specification of:

RESEARCH METHODOLOGY

SOURCES OF DATA

COLLECTION OF DATA

SAMPLE PLAN

RESEARCH DESIGN:-

A research design is simply a framework or plan for study that is used as a guide in collecting
and analyzing the data. It is a blue print that is followed in completing the project.
47

The research design specifies the methods and procedures for acquiring the information needed.
It is overall operation pattern or framework of the project that stipulates what information is to be
collected from which sources and by what procedures. There may not be single, standard and
correct method of research. There may be different types of research design to suit different
purpose of research.

There are various types of research design. They are:-

Exploratory Research

Descriptive Research.

Depending upon the objective of research, marketing research design is selected.


According to the research objective I plan to choose exploratory research.

EXPLORATORY RESEARCH:-

The major emphasis of exploratory research is to extract new insight into the problem. This
research will help to know some facts about other people preferences and choice.
It helped me in knowing the following information:
What are the preferences of students towards purchasing the technology product of a particular
brand?
Which factors influence their buying decision?
How effective are the advertising activities carried out by the brands for its sales?

SOURCES OF DATA:-

The next step is to gather information. There are two types of data. They are:

PRIMARY DATA

SECONDARY DATA

PRIMARY DATA:-

First of all, all the sources of primary data from various sources should be explored and
examining the possibility of their use for study.
In many cases the data may not be inadequate or unusable and therefore, may realize the first
hand information.

There are two methods by which primary data can be collected. They are:
48

Observation method

Communication method

OBSERVATION METHOD:-

Observation is one of the methods of collecting data. It is used to get both past and current
information. For example, instead of asking responder about their current behavior, we may
observe the result of such behavior.
The observational method is not used frequently. All the same it is used especially in marketing
experimentation.

COMMUNICATION METHOD

This method is very popular. The method is used for the project study.

Advantages:

It helped in correcting not only factual data in terms of demographics but also attitude and
opinions.
The recorded data is more reliable and valid.
It is less time consuming and less expensive than observation method.

SECONDARY DATA

Any data, which has been gathered for some other purpose, is the secondary data in the hands of
research.

Advantages:

The major advantage in the use of secondary data is that it is more economical, as the cost of
collecting original data is saved.
It saves much of the time of the researcher. This leads to prompt completion of the project.
Search for secondary data is helpful, not only because secondary data may be useful but because
familiarity with such data indicates the deficiencies and gaps. As a result the primary data can be
collected more specifically and more relevant to the study.
Finally the secondary data can be used as basis for comparison with primary data.

COLLECTION OF DATA

Primary Data
49

It involves two aspects. The techniques and tools that are used in collecting primary data are as
follows : -

Observation

Survey

Secondary Data

The secondary data is collected from various business newspapers and websites, journal and
various magazines. The secondary data gave me brief overview of the current market situation,
the history of the company and the sales figures of the latest quarter.
RESEARCH INSTRUMENT

In this project most of the data and information collected are in the form of primary data, so the
references and the contacts are very useful instrument in such data collection.
Here unstructured questionnaire was used which was not pre-decided depending upon the certain
customers and it included both open-ended and close-ended questions.

SAMPLE PLAN

Sample plan is very much important for a research; after deciding on sample instrument and
research approach, sampling plan calls for following decision.

Sample unit

This is very important for a research to decide as to who is going to be surveyed, or what the
sample unit is. In this research different category of students were targeted to gather correct and
reliable information.
Universe

The universe of the research here were the retailers and lubricant distributors
Contact Method

The sample method used here was personal visit. This is the oldest and most commonly used
method of marketing research. Naturally it could work out more accuracy.
Here the unstructured and indirect type of personal question method is used. The response is then
direct and limited to the question framed in the questionnaire which researcher’s record
simultaneously.
50

Sample Size
The sample size in this research was:-

Retail shops

Lubricant distributors

Chapter 6

Research Analysis
51

I have surveyed 50 retail outlets from Chembur, Govandi, Mahul, Mankurd and Sion and
collected the following information

Name Brands Distributors


RK auto parts Castrol Western lubes
Servo Manilal
Veedol Lubes Distributors

Star auto parts Veedol Lubes Distributors


HDC Turbo Venus Lubricants
Balmerol

Auto spares Veedol Lubes Distributors

Ram auto mobile Castrol Western Lubes


Servo Manilal
Veedol Time Past

Quick auto parts Veedol Tide water co


Castrol Western Lubes
Servo Manilal
ELF Vohra Distributors

Honesty automobiles Castrol Western Lubes


Servo Lunar Lubricants
Mobile Empire
Reliance Empire
Veedol Lubes Distributors
52

Mak Solar Distributors

JK Scooters Castrol Western Lubes


Veedol Lubes Distributors
Gulf Gulf

Kuldeep Sharma auto parts HP Shiv Shakti


Servo Lunar Lubricants

Good Luck auto parts Castrol Western Lubes


Veedol Lubes Distributors

Bipin auto parts Servo Manilal


Castrol Western Lubes
Veedol Lubes Distributors

Modern Motors Servo Lunar Lubricants


Veedol Lubes Distributors

Golden Motor Stores Veedol Lubes Distributors


Castrol Western Lubes
BP

SA Motors Valvoline Arvind


Servo Amco
Maruti Shree maruti
Veedol Essar
Shell Pandey

Shree Govind automobiles Servo Amco


Castrol Western Lubes
Veedol Lubes Distributors

Prince auto parts Castrol Western Lubes


53

Servo Lunar Lubricants

Akal Group & Company Servo Amco


Castrol Western Lubes
HP Bhovalal company
Delphi Pratap Singh & Sons

Sunny auto center Veedol Lubes Distributors


Castrol Western Lubes
ELF Vohra Distributors

Sagar auto mobiles Castrol Western Lubes


Servo Amco
Mak Solar Distributors
Veedol Tide water Co
ELF Vohra Distributors

Jyoti auto parts Servo Manilal


Castrol Western Lubes
Gulf oil Gulf oil corporation of India
Veedol Tide water co

Supreme auto parts Shell Fair Growth sales PVT

Raj auto parts Castrol Western lubes


Veedol Lubes Distributors
Servo Amco Distributors

Karno auto parts ELF Vohra Distributors


Servo Lunar Distributor

Ram Krishna Enterprises Mak Chimmy Distributors


Veedol Lubes Distributors
HP Lal Ghoda Hpcl

Gemini auto parts Servo Manilal


54

Mak Solar Distributors


Veedol Lubes Distributors
Castrol Western Lubes

Prasad auto mobiles Veedol Tide water co

Arihant auto parts Castrol Western lubes


Servo Lunar Lubricants
Veedol Lubes Distributors
Gulf Gulf oil corporation

Jaswindar automobiles Castrol Western lubes


Veedol Tide Water co
Servo Manilal
ELF Vohra

National Auto parts Veedol Lubes Distributors


ELF Vohra
Castrol Western Lubes

SAI Motors Servo Manilal


Veedol Lubes Distributors
Castrol Western Lubes

From the above mentioned information that I have collected through the survey of various
lubricant distributors, I have selected five major lubricant distributors dealing in different brands
in order to do further research work on PLD Market survey. The distributors I have selected are
as follows

1) Lubes Distributors ( Veedol )

2) Manilal & Company,

3) AMCO Distributors (Servo )


55

4) Vohra Distributors ( ELF)

5) Western lubes ( Castrol )

• A Questionnaire was designed consisting of 15 questions in order to understand how the PLD
market work. The overall findings, conclusions and recommendations are mentioned in the
next page
Distributors Questionnaire

Lubes Distributors Co Pvt Ltd

Owners: - Mr Uday Rai

Address: - Sharam Shanti, Wadala


Wadala Truck Terminals
Wadala- 400037

Q1) Which Brand do you deal in?

Ans: - Veedol

Q2) Why Do you deal in this brand?

Ans: - Past 30 Years we are dealing in same brand

Q3) Do you wish to deal in some other brand?

Ans: - Yes

Q4) If yes then why?

Ans:-Wants to deal in new brand not the existing one.

Q5) Since when you are in this business?

Ans:- For the past 12 years.

Q6) Do you have any other business apart from this ?

Ans:- No
56

Q7) What is your monthly volume for this product ?

Ans:- 100 KL

Q8) What is your Area of operation ?

Ans:- Mumbai.

Q9) What are the types of setup used by you ?

Ans:- We have a staff of 40 persons

Q10) Who are your major customers ?

Ans:- ACC ,All Cargo, Reliance and unity.


57

Manilal & Company

Owner :- Mr Manilal Doshi

Address:- Shroff market, Gokhale Road,


Prabhadevi, Mumbai – 400025

Q1) Which Brand do you deal in ?

Ans :- Servo.

Q2) Why do you deal in this brand ?

Ans :-

Q3) Do you wish to deal in some other brand ?

Ans :- No

Q4) Since when you are in this business ?

Ans :- For the past 40 years for the last 30 years we were dealind into Castrol .

Q5 ) What is your monthly volume for this product ?

Ans :- 130 KL.

Q6) What is your area of operations?

Ans :- Mazgaon, Dadar, Chembur and Nashik.

Q7) Who are your major customers?

Ans:- Spare part .


58

AMCO Distributors
Owner: - Mr Jayesh Doshi

Address:-Amco Distributors, opp dukes factory


Near shatapdhi hospital, Deonar
Mumbai- 400001

Q1) Which Brand do you deal in ?

Ans:- Srevo.

Q2) Why do you deal in this brand ?

Ans :- Good business making.

Q3) Do you wish to deal in some other brand ?

Ans:- No there is to be exclusive.

Q4) Since when you are into this business ?

Ans :- From 2002.

Q5) What is your monthly volume for this product ?

Ans :- 65 KL.

Q6) Which is your area of operations ?

Ans :- Central Mumbai that is coluba to mulund.

Q7) Who are your major customers ?

Ans :- Bazzar Counters, Petrol pumps and OE Service stations .

Q8 ) What are your daily activities ?

Ans :- We prepare a permanent journey plan which is prepared on daily basis ,our distribution
basically depends on market bit .We have 3 sales persons our sales persons visit the
59

counters and collect the orders, they also conduct promotional activities on the counters
They also visit the mechanics etc, Next day the sales persons hands over the collection and order
and the owner does the dispatching work . The daily volume is 2.5 KL.

Western Lubes (Castrol)

Owner :- Mr Pradeep Michani

Address :- D -265 Sagar ratan Indl


Premises, MIDC TTC
Thurbe, Navi Mumbai
Navi Mumbai- 400705

Q1) Which brand do you deal in ?

Ans :- Castrol .

Q2) Why do you deal in this brand ?

Ans :- Good earnings .

Q3) Do you wish to deal in some other brand ?

Ans:- No, We would like to diversify into some other business in the future.

Q4) Since when you are into this business ?

Ans :- We started this business in 2002 since then we are dealing in Castrol . western lubes have
Three branches in andheri , Thurbe and Bhiwandi .

Q5) What is your monthly volume for this product ?

Ans :- The monthly volume for this product is around 80 KL, The overall monthly volume
Volume business of western lubes is around 356 KL.

Q6) Which is your area of operations ?

Ans :- All over raigad region and some parts of Mumbai and navi Mumbai.
60

Q7) Who are your major customers ?

Ans :- Fortune cars .

Q8) What are the types of set up used by you ?

Ans :- We have a staff of around 15 persons , 5 sales persons, 6 office staff, 1 dispatching person
And 3 drivers .
61

Vohra Distributors Co Pvt Ltd (ELF)

Owner :- Mr Lucky Vohra

Address :- Plot no- 14 Jakatia Bunder road


Tank road, below cotton green
Station, Mumbai- 400033

Q1) Which brand do you deal in ?

Ans :- ELF, earlier we were dealing into BPCL, Servo.

Q2) Since when you are into this business ?

Ans :- They are into this business since last 50 years earlier they were into retail counters.

Q3) Do you have any other business apart from this ?

Ans :- Apart from lubes distribution business he is a distributor of fan belts, safety equipments
and batteries .

Q4) What is your area of operation ?

Ans :- Mr lucky Vohra’s area of operation is central Mumbai that is from coluba to Mumbai.

Q5) Who are your major customers ?

Ans :- He has around 200 customers .

Q6) What are your daily activities ?

Ans :- He has a staff of around 3 persons .the sales persons don’t go for the promotions activity .
There are two regional heads of the elf company who handles the sales promotion of elf
Company. Commission is offered by the company on target.Vohra distributor has two
Offices one in cotton green and other one in vashi.
62

Chapter- 7

Findings

1) From the above analysis it was found that the SERVO is the market leader of
lubricants in the market.
63

2) Similarly CASTROL ranks second and thereafter HPCL BPCL AND VEEDOL ranks
third fourth and fifth.

3) Demand has been one of the major parameters for the retailers for which they keep
stock of a particular brand of lubricant for selling it to the market

4) Hence it can be linked that SERVO is one of the leading brand in central Mumbai.

5) For distributors margin is one of the most important parameters for dealing into a
particular brand.

6) Some distributors feel that working with multi national companies is more easy than
government owned Indian companies.

7) OEM-Tie-ups plays an important role in selection and buying of lubricants in


authorized service stations segment.

8) If a lubricant company offers a scheme to the customers at authorized service stations


shows a positive impact it increases the number of customers to a authorized service
stations for the service of their automobile.

9) If a company has more OEM Tie-ups then price, quality, gifts and incentives plays an
important role in selection of lubricant brand .

10)

Chapter 9
64

CONCLUSION &
RECOMMENDATIONS

1) The company should reduce the restrictions and limitations towards working of the
distributors.

2) In order to increase more market share the company has to increase its OEM tie-ups.
65

3) Another to way to increase its market share, in the case of company having more than
one OEM tie-ups, they can be made to switch MAK brand by offering price lower than
the competitor, offering gifts and incentives

4) Quality is also one of the major factors during selection and buying of the lubricants it
should be continuously improved and its grades also must be improved depending on the
technology growth, as the technology in the automobile sector is continuously changing ,
so its quality and grade should be improved dynamically according to the technology .

5) The company should introduce schemes to attract customers to buy Mak lubricant in
retail counters and authorized service stations during the peak season .

6) The promotion of the mak lubricants need to be more in retail counters such as shelf
display bill boards etc.

7) BPCL should now focus on diesel and 4T segment in order to increase its market share.

8) BPCL lubricants should increase the overall exclusive outlets which is less as compared
to the competitors brand like IOC and CASTROL.

9) The company should uplift the brand awareness program.


66

Chapter 9

BIBLIOGRAPHY

Books Referred : -

• Marketing Management - Philip Kotler

• Marketing Research - Thomas C Kinnear


67

• Marketing Research - Kothari

• Research Methodology - Dr. S. Shajahan

Webliography Referred: -

www.google.com
www.wikipedia.com
www.bharatpetroleum.com
www.maklubes.com

Other sources: -

News papers

Magazines

Internet websites

Chapter 10

Annexure
68

Distributor Questionnaire

Name of the distributor

Address of the distributor

Q1) Which brand do you deal in ?

Ans:-
69

Q2) Why do you deal in this brand ?

Ans:-

Q3) Do you wish to deal in some other brand

Ans:- Yes No

Q4) Which is your next preferred brand ?

Ans:-

Q5) Since when you are in this business ?

Ans:-

Q6) Do you have any other business apart from this ?

Ans:-

Q7) What is your monthly volume for this product ? ( in value )

Ans:-

Q8) What is your area of operation ?

Ans:-

Q9) who are your major customers?

Ans:-

Q10) what are the different departments in your setup?

Ans:-
70