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Recommendation Conclusion


I, Raman Kumar Jha, hereby declare that the Project Work titled requirements of L.P.G. product in industries and bazaar (retail) potential assessment. with a focus on perception of potential assessment of L.P.G. in the industry that was based on business to business assessment and their feedback for the purpose of knowing all the essential term of industrial customer as well as penetration of existing market for Bharat petroleum corporation limited. BPCL wants to improve customer service and to increase the marker share. For better services BPCL conducted this potential assessment. The original work done by me and submitted to the BHARAT PETROLEUM JAIPUR (branch) for fulfilment of requirements for the award of Post Graduate Diploma In Business Management with two month internship certificate. Original work done by me under the supervision of Mr. Shishir kumar (territory manager) of Bharat Petroleum Corporation limited (Jaipur Rajasthan). Date: 31 October 2011

Signature of the Student RAMAN KUMAR JHA. P.G.D.B.M. BATCH: 2010-2012.

I express my gratitude to the entire panellist who took active part in accomplishing my project. To begin with, I would like to acknowledge my sincere thanks to Mr. VINAY BENJAMIN CHIEF CO-ORDINATOR (Training & Placement) as well as Ms.SHIVANI KAPOOR for providing me the opportunity to do my summer training in Bharat Petroleum Corporation Limited (BPCL). My heartfelt gratitude also goes to my company guide MR SHISHIR KUMAR a territory manager, MR. SANJAY CHOUBEY, territory co-ordinater as well as MR. KAMLESH KUMAR sales manager of the territory . Who initiated the Midas touch to all the queries and actually made this project possible by edge. I would also like to convey my gratitude to my faculty guide Prof. RAKHI ARORA (Associate Professor) who made me walk all the steps of this project, intricately and helped me in formulating the entire framework of this analytical research. I would like to thank Mr Naresh Kumar Gupta distributer of Bharat petroleum Pratap Nagar,Sanganer Jaipur. who helped me step by step in my potential assessment of industry as well as retail market. Finally, a word of thanks to all my respondents who spared their valuable time from their busy itinerary in filling up the questionnaires and made the project complete.

ABSTRACT TITLE OF THE PROJECT: REQUIREMENTS OF GAS PRODUCT IN INDUSTRIES AND BAZAAR (RETAIL) POTENTIAL ASSESMENT. NAME OF THE COMPANY: BHARAT PETROLEUM CORPORATION LIMITED. NAME OF THE INSTITUTE: TAXILA BUSINESS SCHOOL MANSAROWAR JAIPUR, RAJASTHAN. NAME OF THE GUIDE:- Mr. SHISHIR KUMAR (COMPANY GUIDE). Prof .RAKHI ARORA (FACULTY GUIDE). PROJECT PERIOD: 1/9/2011 to 31 /10/2011 MAJOR OBJECTIVES OF THE STUDY: To find out the requirements of GAS (L.P.G.) in SITAPURA industries area. Potential assessment of L.P.G. (GAS) in SITAPURA and PRATAP NAGAR, SANGANER Jaipur district. METHODOLOGY:For industry the study was qualitative in nature and based on industries and retailers opinion survey. DATA SOURCE: Primary data source. RESEARCH APPROACH: DESCRIPTIVE for industries and EXPLORATORY for retailers (retailer). RESEARCH INSTRUMENT: Separate questionnaires were being prepared both for industry and retailers where each consisted OPEN-ENDED, CLOSE-ENDED AND STRAIGHT-FORWARD TYPE QUESTIONS. The mode of collecting the data was basically interview-administered and face to face conversations for both industry and retailers (distributer). SAMPLING PLAN: The main target area for the purpose of collecting the sample for the study was SITAPURA and PRATAP NAGAR where the main target population was JEWELRY, IRON STEEL, FURNITURE &TEXTILE INDUSTRIES and RETAIL SHOPS selling GAS (L.P.G.) to consumers and endusers. Finally PROBABLISTIC CLUSTERED sampling was done since every industry and retailers had an equal chance of being selected.

MAJOR FINDINGS: There is no one industry in PRATAP NAGAR as such we require for the purpose of potential assessment. There are more than 90% Textile Industry in SANGANER as well as SITAPURA industrial area. SITAPURA AND SANGANER is known as Textile industrial area where the L.P.G. product is being used for mess or canteen. Price is one of the Important parameter for the industries based upon which they decide for buying L.P.G.. Most of industries in both JEWELLRY and IRON STEEL are sourcing their L.P.G. requirements from distributors rather than directly from the company. Cumulatively for both the industry, the process of checking the performance level in respective industries is very low, but its different for that jewellery where level of performance is continuously checked and the same is not done in IRON. For the bazaar market, the domestic product are the maximum selling after which commercial products comes second due to the fact that nobody has approached in industrial area properly but market can be generated up to 1000 cylinder in jewellery Jon only. Similarly the most sold cylinder sizes are of 14 as well as 19 KG pack which resembles the potential sale of L.P.G..

The important parameter for selecting a particular brand for purchasing by the customer is based on service, availability and then cylinder weight.




1.1. A. BRIEF and HISTORY. BRIEF. Bharat Petroleum Corporation Limited (BPCL) is one of India's largest PSU companies, with Global Fortune 500 rank of 287 (2008) and according to December 2010 FORTUNE 500 Indians largest corporation, BHARAT PETROLEUM has achieve 4th rank out of 500. Its corporate office is located at Ballard Estate, Mumbai. As the name suggests, its interests are in petroleum sector. It is involved in the refining and retailing of petroleum products. Bharat Petroleum is considered to be a pioneer in Indian petroleum industry with various path-breaking initiatives such as Pure for Sure campaign, Petro card, Fleet card etc. BPCL's growth post-nationalization (in 1976) has been phenomenal. One of the single digit Indian representatives in the Fortune 500 & Forbes 2000 listings, BPCL is often referred to as an MNC in PSU garb. It is considered a pioneer in marketing initiatives, and employs Best in Class practices. Bharat Petroleum Corporation Limited (BPCL) specializes in refining, processing, and distributing petroleum products. It offers petrol, diesel, aviation fuel, liquefied petroleum gas (L.P.G.) and lubricants. The company primarily operates in India, where it is headquartered in Mumbai and employs about13, 968 people. The company recorded revenues of INR1, 112,431 million (approximately $27,632.8 million) in the fiscal year ended March 2008, an increase of 13% over 2007. Its net profit was INR17, 696 million (approximately $439.6 million) in fiscal 2008, a decrease of 17.5% compared to 2007. BREL was incorporated on 17th June, 2008 for undertaking the production,procurement, cultivation and plantation of horticulture crops such as Karanj, Jatropha and Pongamia, trading, research and development and management of all crops and plantation including Biofuels in the state of Uttar Pradesh, with an authorized capital of Rs.30 crores. The company has been promoted by BPCL with Nandan Biomatrix Limited, Hyderabad and Shapoorji Pallonji Company Limited through their affiliate. Each of the partners will have an equal stakein the equity capital of the joint venture. The project envisages plantation of Jatropha in 1 million acres (404686.3 hectares) of marginal land which has the potential of generating employment / self employment for 1 million people and producing 1 million tonnes of Bio-diesel with an investment of Rs. 2,200 crores over the next 10-15 years. 10

The Government of Uttar Pradesh has approved the project under Jeevan Jyoti, a scheme of the Government which has the benefit of release of funds under the Mahatma Gandhi National Rural Employment Guarantee (MGNREG) scheme. BREL has identified 60,438 acres (24,459 hectares) of wasteland for plantation. Efforts are also being made to source saplings of Jatropha under the aegis of Bio Tech Park, Lucknow through approved nurseries and franchisees. Work is on for getting necessary approvals for the identified land and in preparing the land for plantation. BREL has earned miscellaneous income of Rs.0.08 crores for the financial year ending 31st March, 2010 and incurred loss of Rs.1.44 crores as against a miscellaneous income of Rs.0.05 crores and a loss of Rs.0.24 crores in the previous year. HISTORY:The 1860s saw vast industrial development. A lot of petroleum refineries came up. An important player in the South Asian market then was the Burmah Oil Company Ltd. Though incorporated in Scotland in 1886, the company grew out of the enterprises of the Rangoon Oil Company, which had been formed in 1871 to refine crude oil produced from primitive hand dug wells in Upper Burma. The search for oil in India began in 1886, when Mr. Goodenough of McKillop Stewart Company drilled a well near Jaypore in upper Assam and struck oil. In 1889, the Assam Railway and Trading Company (ARTC) struck oil at Digboi marking the beginning of oil production in India. While discoveries were made and industries expanded, John D Rockefeller together with his business associates acquired control of numerous refineries and pipelines to later form the giant Standard Oil Trust. The largest rivals of Standard Oil RoyalDutch, Shell, Rothschilds came together to form a single organization: Asiatic Petroleum Company to market petroleum products in South Asia. In 1928, Asiatic Petroleum (India) joined hands with Burmah Oil Company - an active producer, refiner and distributor of petroleum products, particularly in Indian and Burmese markets. This alliance led to the formation of Burmah-Shell Oil Storage and Distributing Company of India Limited. A pioneer in more ways than one, Burmah Shell began its operations with import and marketing of Kerosene. This was imported in bulk and transported in 4 gallon and 1 gallon tins through rail, road and country craft all over India. With motor cars, came canned Petrol, followed by service stations. In the 1930s, retail sales points were built with driveways set back from the road; service stations began to appear and became accepted as a part of road development. After the war Burmah Shell established efficient and up-to-date service and filling stations to give the customers the highest possible standard of service facilities. FROM BURMA SHELL TO BHARAT PETROLEUM. Burmah Shell Refineries was incorporated as a company in 1952, and established a refinery in Mahul .On 24 January 1976, the Burmah Shell Group of Companies was taken over by the Government of India to form Bharat Refineries Limited. On 1 August 1977, it was renamed Bharat Petroleum Corporation Limited. It was also the first refinery to process newly found indigenous crude Bombay High, in the country.


The core strength of Bharat Petroleum Corporation Limited has always been the ardent pursuit of qualitative excellence for maximization 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 specialty lubricants and markets them through its wide network of Petrol Stations, Kerosene Dealers, L.P.G. Distributors, Lube Shoppes, besides supplying fuel directly to hundreds of industries, and several international and domestic airlines. BHARAT PETROLEUM then and after The company installed microprocessor based digital integrated distributed control systems in catalytic reformers and introduced a new solvent unit to replace the pneumatic control system in 1993.The company also installed an advanced control system for its catalytic control unit. The company then incorporated a joint venture company, Bharat Oman Refineries, in 1994.There after BPCL signed a memorandum of understanding (MOU) with Bank of Baroda in 1995 to launch the first co-branded credit card in the country. In 1998, BPCL entered into a joint venture with Petronet (India) for the construction of a 308 km pipeline from Kochi in Kerala to Karur in Tamil Nadu. The following are a few achievement achieved by BHARAT PETROLEUM CORPORATION LTD: McDonald's made an agreement with BPCL to open and run restaurants at selected petrol pumps across the country in 2000. Quicky's, the global coffee chain, followed suit in 2001, and began ton offer its services at BPCL stores. BPCL launched Speed '93, its own brand of petrol, in 2003. In the following year, BPCL diversified its operations. The company entered into a business to business e-commerce arrangement with IDBI Bank to provide an automated payment and purchase process to BPCL's corporate and industrial clients. The company also tied up with Tata Consultancy Services to provide medical advisory and counselling services at Ghar, the highway retailing initiative of BPCL. Bharat Petroleum Corporation Limited and GAIL formed another joint venture company, Central UP Gas, for implementation of City Gas Projects in Delhi and Kanpur in 2005. In 2006, the Government of the Sultanate of Oman signed an Exploration and Production Sharing Agreement (EPSA) for the on land exploration block 56 with the consortium comprising BPCL, Oilex (Operator), Hindustan Petroleum Corporation Limited, GAIL India and Videocon Industries. In the same year, the company acquired a 20% interest in an exploration block in Australia.


In September 2008, BPCL and Videocon Industries Ltd acquired 50% stake in Brazil's EnCana Brasil Petroleo Limeade. BPCL and GAIL (India) Limited announced to form a joint venture company, Gods Own Gas Company, for marketing compressed natural gas (CNG) and piped gas in Kerala and Karnataka, in March 2008. In April 2008, BPCL announced the formation of joint venture Company in consortium with other companies, Shapoorji Pallonji Co Ltd and Nandan Biomatrix Ltd for establishment of Bio Diesel Value Chain in Uttar Pradesh, India. In the same month, BPCL and GAIL (India) Limited signed an MOU for cooperation in transmission and distribution of natural gas, L.P.G. pipelines and city gas. In August 2008, Punjab Energy Development Agency (PEDA) signed a MoU with BPCL to setup one M/W Solar Photovoltaic Power Plants at Lalru in Punjab, India.


Shri. R. K. Singh Dr. S. Mohan Shri. K.K. Gupta Shri. B.K. Datta Shri. S.Varadarajan Prof. N. Venkiteswaran Shri. Haresh. M. Jagtiani Shri. I.P.S. Anand Shri P. K. Sinha

Job Title Chairman& Managing Director Director, Human Resources Director, Marketing Director, Refineries Director, Finance Director Director Director Director

Board Executive Board Executive Board Executive Board Executive Board Executive Board Non Executive Board Non Executive Board Non Executive Board
Special Secretary & Financial Advisor, Ministry of Petroleum & Natural Gas






MAJOR PRODUCTS AND SERVICES: Bharat Petroleum Corporation Limited (BPCL) refines, stores, markets and distributes petroleum products. The companys key products and services include the following: PRODUCTS: I. II. III. IV. V. VI. VII. VIII. SERVICES: 14 Petrol Diesel L.P.G. Gasoline Kerosene Lubricants Aviation fuel Fuels and solvents


Convenience stores ATMs Car washes Free air and water Lubricant top-ups Energy audits E-banking services Consultancy and technical services Online ordering


Overview Of L.P.G. Sector

To become market leaders in Customer Service with the highest customer satisfaction index, and the highest safety standards.

To make Bharat gas a dominant brand in the segments we market, by becoming trendsetters in Customer Service, Safety and Quality. 16

L.P.G. as a household cooking fuel was introduced by erstwhile Burmah Shell under the brand name Burshane in mid 1955. The journey of L.P.G. as a domestic fuel continued with Burmah Shell until the Government nationalized the Company Burmah Shell to become Bharat Petroleum. Bharatgas from Bharat Petroleum has dominated the LP Gas market in India for over three decades. It was indeed a great challenge for Bharatgas to replace Burshane as a brand name since Burshane had become a generic name in the country for L.P.G.. Bharat Petroleum's inspiration to meet every challenge drove them to work towards establishing Bharatgas as a dominant brand. Achievements:Market research helped in understanding the strength of the brand and out lining the way forward. One of the major changes was to create a Strategic Business Unit to deal with Bharatgas. Soon programmes totally focused on meeting customers need were drawn up. A pioneer in more ways than one, Bharatgas has brought many innovative offerings to the customers. The Corporation was quick to realize the need to look at the needs of the Urban and the Rural customer differently. Over the years, the urban Market reach was very large, the customer more sensitive. Whereas, it was a herculean task to reach the rural consumers primarily due to inhabitation being spread over very far flung areas unlike the congested urban areas, thereby creating a logistic challenge. Having understood the needs of the two different segments, Bharatgas undertook various initiatives. Urban Customer initiatives included launch of an exclusive website www.ebharatgas.com to provide convenience of booking Bharatgas On Line to customers. The website also provides a feedback system enabling the consumers to directly speak to the Organisation. Other methods of booking through IVR systems and drop boxes placed at busy locations in town were also introduced. Booking of Bharatgas is also made available through SMS facility. Rural Areas are serviced by the Bharatgas Rural Marketing Vehicles (RMV), comprising of tank truck and the mobile filling unit. These RMVs service rural areas, where the traditional distributorship network was not present. The RMVs instill great customer confidence as they can see their cylinders being filled in their presence and checked for safety.


The promise of reaching a sound cylinder with the right Q&Q is indeed fulfilled! Rural marketing having gathered momentum in India had many MNCs set up rural infrastructure to reach their own product. ITCs e-choupal initiatives and the DCM groups Hariyali Kisan Bazar, are such initiatives. Bharatgas has leveraged the opportunity to utilize their infrastructure to reach L.P.G. to deep interior rural areas. Industrial Customers too have been our focus. Bharatgas has demonstrated the various applications of the wonder fuel L.P.G. for innovative uses in various Industries. Bharatgas has also introduced various pack sizes to suit the different types of customers.

Piped L.P.G. is another first from Bharatgas. Well accepted by major Realty Developers, Bharatgas piped L.P.G. system for multi-storied apartments and shopping malls is gaining popularity.

Value Added Service This was in recognition of the need to provide the housewife relief from mundane chores of household shopping for low involvement products; the Beyond L.P.G. initiative was launched to provide value to the customers. This involved the Organisation entering into corporate tie-ups with reputed brands and making available through the distributorship network FMCG as well as home appliances and kitchenware at attractive discounts - all home delivered to the consumers. The initiative soon gathered momentum and became a successful business model providing value not only to the consumers but the network as well as the Partner Companies. For Bharat Petroleum it was another successful business venture within 5 years with the involvement of over 25% of the distributors voluntarily participating in the business and setting up Bharatgas Shoppes with attractive display of product creating a comfortable shopping environment a far cry from the typical showroom of an L.P.G. distributor.


Bharat Metal Cutting Gas (BMCG) an innovative product is the result of continuous research. An efficient and cost effective substitute for Acetylene, it is indeed a revolutionary product for the cutting and brazing industry. The success of the product is not limited to the Indian shores but has travelled to countries in the middle-east as well as Africa. Leveraging Technology Harnessing technology has always been on the forefront for maximizing efficiency and achieving greater customer satisfaction. An exclusive website www.ebharatgas.com providing the convenience of booking Bharatgas On Line alongwith information about the product, its uses, safety and conservation tips as well ashuge collection of recipes is a popular site for women. The website also provides a feedback system enabling the consumers to directly speak to the Organisation. Booking of Bharatgas has also been made available through SMS facility. At the back end, over a decade back the distribution network operation was completely computerized, streamlining operating practices and enhancing efficiency at the distributorship level along with a professional outlook. Customer focus being a very core objective of the brand, Bharat gas constantly explores opportunities to relate to the customers. Internally too, process the systems within the Organisation are continuously reviewed and improved to get the best output for the customers. The state of the art 49 modern filling plants demonstrate the use of technology to provide the customers the best of products and services! Bharatgas undertook an exercise for Bench Marking the best practices, within Bharat Petroleum, the Oil Industry and global practices for adoption in the Organisation. This has certainly further improved the performance of the brand. Knowledge being a great strength with the employees, Bharatgas looked at the opportunities of providing consultancy services in developing nations for L.P.G. project covering setting up of the facility as well as training. Continuous communications with the network and employees is recognized as an important means to raise the bar. A bi-monthly publication Bharatgas Times- an e-magazine promotes sharing of best practices and encourages people towards healthy competition in business and in partnering social objective programmes, thus creating a better society and upgrading the levels of the individual, both in terms of thoughts and actions. 19

Recognition In house training and involvement in recognizing creative and innovative challenges is a major objective. Bharatgas continuously supports innovative ideas by replicating the success story in one area to the rest of the areas. Similarly, the network is continuously energized with recognition and rewards. Accolades and Awards have come to Bharatgas in good measure. Recognition for high Safety standards from Oil Industry Safety Directorate (OISD) has been accorded along with a large number of Bottling plants receiving various awards for environment and safety as well distributors receiving customer service awards from institutions. Environment & Society The brand just does not limit itself to product and services, it reaches out to belong and be part of the social fabric engaging in life giving and enhancing the quality of life of the less fortunate. Bharatgas employees as well as the network are engaged in various activities such as helping victims of the natural calamities or acts of insurgence and terrorism.

Initiatives like health checkup camps, eye camps, blood donation drives, providing free spectacles as well as medicines for those who cannot afford is undertaken. Greening initiatives, Global warming and other environmental issues to save the planet form part of the brands regular initiatives. Brand Values Team Bharatgas believes that providing value added services to customers will be the ultimate differentiator in the market place. Understanding customer behavior and tracking their aspirations hold the key to success! This conviction drives us to continuously innovate to provide offering that make a difference to the customers. Customer convenience is at the core of every action. www.ebharatgas.com THINGS YOU DIDNT KNOW ABOUT "Bharatgas" :



Bharat Petroleums L.P.G. Business has received an overwhelming recognition across the decade. The Oil Industry Safety Awards were instituted in order to inculcate competitiveness among oil companies to improve their safety performance. Safety performance of the competing organizations / installations is evaluated with the help of a new criteria developed at OISD which takes into consideration, the total loss concept i.e. fatalities, fires, lost time, direct & indirect losses etc. and also the hazard potentials. BPCL L.P.G. has been winners of this prestigious award for 12 times during the years 2009-2010 1999-2000 2008-2009 1997-1998 2005-2006 1995-1996 2004-2005 1994-1995 2001-2002 1993-1994 2000-2001 1992-1993 Other Prominent Awards received by different L.P.G. Plants and Territories are 2010-11 Kurnool plant was awarded the Best managed plant by The Government of AP. Coimbatore and Bangalore L.P.G. plants were the recipients of the Srishti Green Governance award Dharwad L.P.G. Bottling Plant has won the National Safety Council of India Safety Award PRASHANSA PATRA (4TH Level Award) for the year 2009. Dharwad maintained their position as the No.1 L.P.G. Bottling Plant in the country as per NSCI Award Merit List for the second consecutive year. 2009-10


Dharwad,Trivandrum ,Mangalore& Bangalore L.P.G. Plants were winners of the National Safety Council of India Safety Award Gummudipundi L.P.G. Plant won the best workers award from the Tamil Nadu State Govt. Tanjore L.P.G. Plant was awarded the Best Industrial location in Tamil Nadu from the Tamil Nadu State Govt. Hariyala L.P.G. Plant was conferred the Greentech Foundation award - Silver award for 2009 Solapur L.P.G. Plant received the Certificate of Merit - National Safety Council for the year 2009. Wai Plant awarded the National safety council Maharashtra Chapter Award for 2009-10 Surat L.P.G. Plant was awarded the Silver Award in Petroleum Storage and Distribution Sector for outstanding achievement in Safety Management by NSCI in 2008-09 2008-09 Durgapur LPG Plant were Winners of the live Fire Fighting Competition organized by Department of Factories in Durgapur in 2008-09 Trivandrum L.P.G. plant has bagged the First Prize for safety from Kerala Government . Hariyala L.P.G. Plant was conferred the Greentech Foundation award - Silver award for 2008 Jalgaon L.P.G. Plant was awarded the National Safety Council Maharashtra Chapter, Safety award in Storage Handling & Distribution of Petroleum products for 2008 Dharward L.P.G. plant has won second prize for safety from Karnataka Government. Bengaluru L.P.G. plant has won the Token of appreciation from Karnataka Government for safety. Dharward L.P.G. Plant employees have won First Prize for Dharward-Hubli Region for Safety Quiz conducted by Karnataka Government Solapur L.P.G. Plant received the Certificate of Merit - National Safety Council for the year 2008. Wai Plant awarded the National safety council Maharashtra Chapter Award for 2008-09 Pune L.P.G. Plant awarded National Safety Council - Maharashtra Chapter 200809 Nasik L.P.G. Plant awarded Maharashtra NSC Safety Award for the year 2008-09 2007-08


Surat L.P.G. Plant Gujarat State Safety Award for achieving 10 lakh accident free Man- hours.( By Gujarat Safety Council - Chapter of NSCI.)in 2007-08 Uluberia L.P.G. Plant awarded Certificate of Appreciation from : Greentech Environment Excellence Award Dharwad was awarded the state level prize for best performance in safety in Small Industry Category by Dept of Factories & Boilers, Karnataka Bangalore L.P.G. Plant has been awarded Certificate of Excellence for HSE activities by Dept of Factories & Boilers, Karnataka Mr. Pradeep Tandel, Operator, Dharwad Plant has been adjudged winner of the safety quiz competition conducted by Hubli Division of Dept of Factories & Boilers, Karnataka Uran L.P.G. Plant received National safety council Maharashtra Chapter for 2008 Piyala Territory received the Special prize in Petrotech 2007 photo exhibition. Piyala L.P.G. PLant won the Greentech environment excellence silver award 2007. Allahabad Territory received a citation from Forest Dept, Govt of Uttar Pradesh for having planted 5000 trees on a single day inside Allahabad L.P.G. Plant on 31st July '07. Ahmedabad L.P.G. Territory won the Best Managed Company Award by Gujarat State L.P.G. distributors Federation in 2007-08 Jalgaon L.P.G. Plant was awarded the National Safety Council Maharashtra Chapter, Safety award in Storage Handling & Distribution of Petroleum products for 2007 Solapur L.P.G. Plant received the Certificate of Merit - National Safety Council for the years 2007. Wai Plant awarded the National safety council Maharashtra Chapter Award for 2007-08. Nagpur L.P.G. Plant awarded National Safety Council Maharashtra Chapter award for Meritorious Performance in Industrial Safety in 2008. Nasik L.P.G. Plant awarded Maharashtra NSC Safety Award for the year 2007-08 2006-07


Bangalore L.P.G. Plant bagged the second prize for the safest industry under Small Industry Category by Dept of Factories & Boilers, Karnataka Two of our employees of Tuticorin L.P.G. Plant secured prizes for the best slogan competition conducted by National Productivity council Tamil Nadu Chapter One employee of Chennai L.P.G. Plant got third prize for best innovative employee from Tamil Nadu Govt Uran L.P.G. Plant received National safety council Maharashtra Chapter for 2007 & 2008 Kolkata L.P.G. Plant received the Certificate of appreciation in the Greentech Environment Awards in 2007 Jalgaon L.P.G. Plant won the Maharashtra Safety Award By National Safety Council For Year 2006. Lalru L.P.G. Plant Safety Award for the Year 2006 from Directorate of Factories, Punjab & Punjab Industrial Safety Council. Bangalore L.P.G. Plant awarded Best Safe Plant , IInd Prize by Govt. of Karnataka, Ministry of Labour, Dept.of Factories & Boilers for the year 2006. Tuticorin L.P.G. Plant - Mr.P.K.Arumugaperumal, won II prize in Slogan competition- (Tamil) & Mr.G.Thitunavukkarasu won consolation prize in Slogan competition (English) in the competition conducted by National Safety CouncilTamil Nadu chapter: Jalgaon L.P.G. Plant was awarded the National Safety Council Maharashtra Chapter, Safety award in Storage Handling & Distribution of Petroleum products for 2006 Solapur L.P.G. Plant received the Certificate of Merit - National Safety Council for the years 2006 Wai Plant awarded the National safety council Maharashtra Chapter Award for 2006-07 Nagpur L.P.G. Plant awarded National Safety Council Maharashtra Chapter award for Meritorious Performance in Industrial Safety in 2006-07 2005-06 Khurda L.P.G. Plant received Orissa State Safety Award on Lowest weighted frequency rate of accident by Director of Factories & Boilers, Orissa. Lalru L.P.G. Plant received the Safety Award for the Year 2005 from Directorate of Factories, Punjab & Punjab Industrial Safety Council. Wai L.P.G. Plant received awards from National Safety Council Maharashtra Chapter for Meritorious performance in Industrial Safety for 2005-06 Surat L.P.G. Plant has bagged the Certificate of Appreciation for the year 2005 from Gujarat State Safety Council under Category II group of Industries. 2004-05


Khurda L.P.G. Plant received Orissa State Safety Award on Lowest weighted frequency rate of accident by Director of Factories & Boilers, Orissa on 27.11.2004 Wai L.P.G. Plant received awards from National Safety Council Maharashtra Chapter for Meritorious performance in Industrial Safety for 2004-05 Jalgaon L.P.G. Plant won the Maharashtra Safety Award By National Safety Council For Year 2005. 2003-04 Wai L.P.G. Plant received awards from National Safety Council Maharashtra Chapter for Meritorious performance in Industrial Safety for 2003-04 Jalgaon L.P.G. Plant won the Maharashtra Safety Award By National Safety Council For Year 2004. Udaipur L.P.G. Plant Awarded The Best Industrial Unit Of Mewar Region By Chamber Of Commerce For The Year 2003-04. Udaipur L.P.G. Plant Awarded The Best Industrial Unit For Environment Conservation By Rotary Club Udaipur For The Year 2003-04. Chennai L.P.G. Plant employee, Mr.S.K. Manikavasagam was awarded with Uyarndha Uzhappalar i.e. Best Worker award from the Factories Department Govt. of Tamil Nadu for the year 2003-04. 2002-03 Khurda L.P.G. Plant received Orissa State Safety Award on Best performance in safety & environment by Director of Factories & Boilers, Orissa on 24.05.2003 Wai L.P.G. Plant received awards from National Safety Council Maharashtra Chapter for Meritorious performance in Industrial Safety for 2002-03 Jalgaon L.P.G. Plant won the Maharashtra Safety Award By National Safety Council For Year 2003. Jhansi L.P.G. Plant received the prestigious Bharatiya Rastriya Suraksha Parishad, Suraksha Puraskar- 2003 on the basis of evaluation of Performance for the Past three years 2003. 2001-02


Kurnool L.P.G. Territory has been awarded The certificate of commendation" by Kurnool District Consumers Protection Council for the services provided to the customers consecutively for the years 2001-02 and 2002-03. Roorkee Territory distributor M/s. Pushpak Gas Service, Hardwar was facilitated by Vishva Upbhokta Sangathan, Saharanpur for Uttam Grahak Seva in a function held at Hardwar for the year. Wai L.P.G. Plant have been awarded "Certificate of Merit" for "Meritorious performance in Safety in the Maharastra Safety Awards Competition - 2002". Solapur L.P.G. Plant have been awarded "Certificate of Merit" for "Meritorious performance in Safety in the Maharashtra Safety Awards Competition - 2002". Wai L.P.G. Plant received awards from National Safety Council Maharashtra Chapter for Meritorious performance in Industrial Safety for 2001-02. Jalgaon L.P.G. Plant won the Runner Up Customer Choice Award For The Year 2001-02. Jalgaon L.P.G. Plant won the Maharashtra Safety Award By National Safety Council For Year 2002.

Khurda L.P.G. Plant received Orissa State Safety Award on Best performance in safety & environment by Director of Factories & Boilers, Orissa on 24.05.2003 Khurda L.P.G. Plant received Orissa State Safety Award on Lowest weighted frequency rate of accident by Director of Factories & Boilers, Orissa on 27.11.2004 Khurda L.P.G. Plant received Orissa State Safety Award on Lowest weighted frequency rate of accident by Director of Factories & Boilers, Orissa on 18.12.2006 Kolkata L.P.G. Territory received the Certificate of appreciation in the Greentech Environment Awards in 2007 JAIPUR L.P.G. BOTTLING PLANT RECEIVED THE SAFETY AWARD FROM BRITISH SAFETY COUNCIL FOR THE YEAR 1991 IN RECOGNITION AND COMMENDATION OF SERVICES RENDERED IN THE CAUSE OF SAFETY. Wai L.P.G. Plant has been awarded Certificate of Merit for Meritorious performance in Safety in the Maharastra Safety Awards Competition 2002. Solapur L.P.G. Plant has been awarded Certificate of Merit for Meritorious performance in Safety in the Maharastra Safety Awards Competition 2002. Lalru L.P.G. Plant Safety Award for the Year 2006 from Directorate of Factories, Punjab & Punjab Industrial Safety Council. Bangalore L.P.G. Plant awarded Best Safe Plant? II Prize by Govt. of Karnataka, Ministry of Labour, Depts. Factories & Boilers for the year 2006.



L.P.G. touches our lives in so many ways although we are unaware of it. From Commercial establishments to Chemical Industries, from housing to health, from garments to glass, from livestock to hospitality, Bharatgas plays its role along the way in making your products superior, durable and simply the best. A few industries using L.P.G. are listed below: Crispy Biscuits Confectionery Poultry Textile Industry Steel Pharmaceuticals Glass Hotel Industry Reticulated Piping Paint drying Dal mill Goldsmiths favourite

Crispy Biscuits & Confectionery


L.P.G. is widely used to manufacture Crisp control. Soft Better heat Biscuits, Bread, Fluffy Pastries, Light Khari, Spongy Cakes and all Rapid drying of litter. types of cream and bakery products of super quality. The power failures in rural areas is very high resulting in Precision control of temperatureheat failures, but with L.P.G. as the source of fuel this risk and low sulphur content in is eliminated. L.P.G. makes the product palatable and passes all Statutory tests for human consumption. Direct view of chicks; the heaters dont take any floor area. Very low L.P.G. consumption of approx. 60 gms per hour or 50 paise per bird in winter. Poultry Dont count your chickens before they are hatched, but with Bharatgas you can. With Bharatgas you get uniform and localized heating during the first five weeks both during summer and winter. The advantages of L.P.G. in chicken brooding are :

Textile Industry Has it ever occurred to you that to produce the textiles youre wearing, L.P.G. plays a significant role? The four main steps in the production of textile fabric: Preparation of fabric Spinning Weaving Finishing which includes Singeing, Bleaching, Dyeing, Printing, Calendering etc.

Each of these processes requires a heating source. Steam though mostly used is not hot enough for certain operations so L.P.G. or electricity is usually needed in the Finishing process. L.P.G. is better because the heat is more concentrated. The reflectors do not have to be polished and heaters do not burn out. Steel Bharatgas steals the show in the Steel Industry. Heat treatment of metals normally refers to any process involving heating and cooling of the solid metal with the aim of modifying its physical properties but without the intention of changing its chemical composition. Bharatgas easily meets these requirements so steel majors have stuck to Bharatgas over the 28

Customer Service Available Pack Sizes To match the individual needs of customers, various pack sizes have been made available.

For Domestic kitchens pack sizes of 14.2 kg. and 5 kg. cylinders For Industrial / Commercial pack sizes of 19kg, 35 kg. and 47.5 kg. as well as bulk L.P.G.

Customer First At Bharatgas, we believe that the customer comes first and so to provide convenience to the customers, various facilities are available:

Endeavour to Home Deliver safe and sound refill cylinders within 24 hours of booking in normal situations and on all 7 Days of the Week. Home Delivery of refill cylinders as per your convenience. Weighment of cylinders at the customers premises gives customer confidence. Distributorships are open on Sundays to facilitate customers seeking new connections as well as refills. Multiple cylinder booking channels like telephones, in person, through Internet and unique telephone number.

Multiple Ordering Channels 24 hr. Bharatgas cylinder booking facilities on www.ebharatgas.com The Online Customer Service permits the Bharatgas Customer, at registration, to create his / her own Login ID and Password, which will enable him / her to interact online and access information in a secure environment and avail of the following facilities:

Place an order for refill cylinder ONLINE Suggest the preferred day and / or time of refill delivery Avail of the Reminder Service Participate in Contests / Promotions as and when organized on the site

Unique telephone number 12664 Bharatgas Customers can also book a refill cylinder or log a leakage call by dialing our telephone number 12664. This 5-digit number is unique for BHARAT PETROLEUM. The system functions as under:

The customer is given the choice of language 29

On selecting the same, the customer is required to say the name of the distributor On confirmation by the system, the customer will key in the consumer number The system will confirm the booking and provide a refill-booking number.

OTHER CUSTOMER CARE SERVICES 1. 2. 3. 4. 5. Value added services Customer relations centres Emergency service cells Distributor locator Distributor code locator

1.1. B.COMPANY STUCTURE. The older structure was functionally organized. There were mainly four functions (refineries, marketing, finance and personnel) each headed by an executive director reporting to the (CMD). Other support departments like corporate affairs, legal, audit, vigilance, coordination and company secretary were directly under the CMD. See Appendix 1 for the organizational chart. The Director refinery was in charge of refinery, corporate planning, JV refineries and special projects. Other than corporate finance and marketing finance EDP was also under the Director finance. In marketing, there were different departments for retail, industry, L.P.G., lubricants and aviation segments. Corporate communication was also under Director marketing. The whole of India was divided into four regions and further into 22 divisions. Each region was headed by a Regional Manager who was in charge of all activities within the region and reported to the Director marketing. Each region had a manager in charge of each of regional personnel, regional engineering, regional industrial customers, regional retail, and regional finance. Regional L.P.G. was under regional industrial customers. The division was the responsibility of the Divisional Manager reporting to the Regional Manager. He had a manager each for sales, operations and engineering. Each of these was responsible for sales, depots and engineering respectively for all the customer segments. Across the marketing function, except for the corporate departments (L.P.G., industrial customer, etc.) specifically looking after a customer segment, every individual and role is focused on multiple customer segments. For example any strategy addressing the industrial customers originates from the Corporate Department (Industrial Customer), goes via the Director Marketing, Regional Manager, Divisional Manager to the Sales Officer. All of them are responsible for multiple customer segments like retail, L.P.G., industrial, etc and deal with different classes of customers. Hence there was very low customer awareness in terms of the unique needs of the different customer segments, with no single individual at the operational level having clarity on any single customer segment. Moreover, the marketing strategy was formulated by people who were far from the customer with very low understanding of the customer they were targeting. The implementers were responsible for diverse customers with a low understanding of the logic of these 30

strategies meant for each customer segment. Thus the old structure had created a bottleneck between the strategy formulators and implementers in terms of the regional structure, and between the field staff and the corporate offices and refinery. Activities of a business process are spread out across different functions and levels of hierarchy, engaging many individuals. There was a long chain of non value adding linkages between any two activities targeting a business / customer. For example, when an industrial customer gives a special order of lubes to the sales officer, the corporate lubes purchases the base oil, plant blends it, S&D packs it and the sales officer sells it. The Sales Officer would communicate the order to the Divisional Manager, who passes it on to the Regional Manager. Then the order would be routed to the Corporate Lubes for processing. Everyone involved in the activities of this process belong to different functions and hierarchy levels. This long chain of communication had led to a lack of customer orientation, low awareness of customer needs and expectations and slow response.



















BHARAT PETROLEUM-THE NEW SBUFORM STRUCTURE The new structure was focused on the business processes and the customer. The new structure at the top management level is the same. Five SBUs Retail, Lubes, Industry/Commercial, L.P.G. and Aviation are customer centered SBUs and come under the director (marketing). The sixth SBU, Refinery along with two new departments IT & Supply Chain and R&D are under the director (refineries). Each SBU would have its own HR, IS, finance, logistics, sales, engineering, etc. The number of layers in the organization was reduced to four from six or seven. The major change is the introduction of the territories covering a smaller geographical area and focusing on specific customer segments. In retail SBU the new structure had 66 territories reporting to the four regional offices, where as in the earlier structure there were only 22 divisions which catered to all segments. In other SBUs the regional office was removed and territories were designed to directly report to the SBU heads. Each territory team leader was responsible for sales in the territory only for a specific product. The territory structure was designed to enable the field staff to focus on specific customer segments. Authority was also delegated down the hierarchy and decision making pushed to the lowest possible levels. Decisions earlier taken at the regional level were taken now at the territory level. Further authority was delegated to the role and not the hierarchy level. Administrative offices have been moved to supply locations that consist of 125 terminals for main fuels and 35 L.P.G. bottling ones. In L.P.G. SBU head office there are only nine personnel and across the territories even managers at senior positions have been forced to get business. The new design incorporated recalibration of roles and responsibilities and redeployment of more than two thousand people (around one fifth of total employee strength) across the organization. It created new roles at the front effectively using redundant manpower to increase customer interface and interaction. SOME SALIENT FEATURES OF THE NEW STRUCTURE ARE: Highly empowered work force Decentralized decision making De-linking of authority from hierarchical levels Orientation towards internal and external customers Regular market research and customer surveys Conscious brand building efforts



Bharat petroleum understands peoples need as customers and relentlessly work towards fulfilling them, working consciously towards providing added value in fuel and non-fuel areas. The Corporation offers products and services that have been designed to meet the need gaps of its customers. It is not easy as BPCLs customer base is a diverse one demanding of them to perform better and satisfy the needs of some of their customers who fly in the air to the larger Indian populace who survive on Kerosene as their cooking fuel.


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


Since 2002, BPCL have introduced new generation branded fuels Speed, Hi Speed Diesel and Speed 97, being the pioneers to introduce premium fuel brands in the Country. These specialized products BPCL launched in line with global trends and keeping pace with the technological advancements in the automobile industry leading to introduction of new generation vehicles. Speed brand of petrol contains multifunctional fuel additives that prevent formation of harmful deposits and help clean existing deposits, thereby improving vehicle performance. SPEED has been the market leader in the branded fuels category. BPCL has also introduced a high-end Octane 97 variant Speed 97 catering to the requirement of vehicles at the upper end of the tier. To meet the growing needs of the diesel passenger car segment, BPCL also introduced Hi-Speed Diesel which is a blend of diesel and world-class multifunctional additive which uses the internationally renowned Green Burn Combustion Technology. This multi-functional additive enables the high performance vehicles to deliver their designed outputs by removing harmful deposits from all fuel metering systems and components. This also reduces particle level, black smoke and provides longer engine life.



BPCL recognized the customer need for pure quality and correct quantity of fuel for their vehicles and launched the flagship initiative of Pure For Sure (PFS) offering the guarantee of pure quality and correct quantity of fuel to our customers. The petrol pumps displaying a prominent Pure For Sure signage have become landmark destinations as the movement has gained momentum across our Retail Network.BPCL now offer a robust and automated network of retail outlets, which leverage technology to deliver the assurance of quality and quantity promise, ensure integration of payment with fuelling and improves the service efficiency at the forecourt of the petrol pump.

FOSTERING LOYALTY. BPCL share rewarding relationships with their customers and building loyalty has been a centre of focus with them. Recognizing the need of their customers to make life more convenient and rewarding and introduced the first loyalty-cum-rewards program, PetroBonus. Equipped with Smart Card Technology, the Petro Card program combines convenience in payment along with an inbuilt rewards program that rewards the customer with Petromiles every time he fuels. A similar program, Smart Fleet was launched for Fleet Owners. The SmartFleet Programme offers the fleet owner an unbeatable convenience, security and a host of privileges such as cashless transactions, vehicle tracking, Credit Option for Fleet Owners and Cash Management System. CARING FOR CUSTOMERS VEHICLE NEED. BPCL also aim to provide service centre facilities through their V-CARE (Vehicle Care) Centres across the urban network. The V-Care Centres provide customers with reliable, transparent and value for money services for the basic vehicle care needs. BPCL have tie ups with Hero Honda and General Motors for being their authorized After Sales Service Centres apart from the other brands of cars and two-wheelers. With BPCLS reach to the nook & corner of the country they are always near to their customers.


On the highways, BPCL offer a home away from home to the truckers and the tourists in the form of the GenerationNext OSTSs/OSTTSs (One Stop Truck cum Tourist Shop) branded as GHAR. These outlets are built on a minimum of 3 to 5 acres plot sizes and house dedicated and fully automated MS/HSD petrol/ diesel Fuelling facilities to fuel all kinds and sizes of vehicles besides the specially designed offerings for the highway travelers, that include a Food Court for Tourists and a Dhaba for truckers, a dormitory with beds, a Safe, Secured and Spacious parking for trucks and cars, a vehicle wash facility, Saloon, Laundry and Tailor shop, a Kirana shop, Bathing facilities, dedicated toilets for Truckers and dedicated toilets for Tourists (Gents, 35

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.


With the menace of rising vehicular pollution, use of L.P.G. as an auto fuel was proposed as a pollution abatement measure. L.P.G. being a clean environmentally friendly fuel, will reduce air pollution to a great extent if the vehicles are fuelled with L.P.G.. Bharat Petroleum was the first Oil Company to take the initiative for setting up of an Auto L.P.G. Dispensing Station (ALDS) and run vehicles on L.P.G. as a pilot project in Delhi in October 1999.BPCL today have over 70 Auto L.P.G. Dispensing Stations (ALDS) in various cities (including metros) in the country.

BRAND MANAGEMENT. In the highly competitive scenario, it has become imperative to own dominant brands. The Brand Management team at Bharat Petroleum endeavours to build and manage a strong brand image reflecting Bharat Petroleum's core values of being 'INCARE',viz. INnovative, CAring and REliable. Emphasis is laid on continuously understanding customer behaviour, tracking their changing needs and expectations, and meeting these needs in the most cost-effective manner. STRATEGY DEVELOPMENT. Bharat Petroleum recognises that all strategic initiatives must conform to the overall vision of the Corporation and improve the economic value. The Strategy Development effort at the corporate level achieves better focus in the new organisational structure, besides facilitating the SBUs in developing their respective strategies that lead to an integrated Corporate Strategy. A Business Planning process has been put in place that not only provides opportunities for the SBUs to pursue their visionary goals in consonance with the Corporate Vision, but also continuously monitors trends and identifies strategic opportunities for the Corporation.



1.1. D. FINANCE AND ECONOMIC. BPCL is primarily an energy processing and marketing company and a Public Sector Undertaking (PSU). The central government of India holds a stake of 54.93% in the company and the state government of Kerala has a shareholding of 0.86%. Although BPCL export products to other countries, particularly those in the South Asian region, BPCLs focus on their principal and most important market, India, is unwavering. It is projected that the energy needs and the demand of the country will increase significantly in step with economic growth. The demand for oil and petroleum products is also expected to increase simultaneously. The Planning Commission of India has projected that demand for oil will increase by over approximately 20% from 2005-06 levels by 2012.To meet the challenge of an evolving and growing market, BPCL have designed and deployed various strategies that will help us not only to meet the energy needs but also fulfil their responsibility to shareholders and contribute towards inclusive growth. BPCLs revenues increased by about 12% though Profit after Tax (PAT) decreased by 12.26% when compared to previous years. Their total capital expenditure was Rs.20.66 Billion for the financial year 200708, as compared to Rs.18.34 billion during the year 2006-07. During the year 200708, the average cost of Indian crude basket was significantly higher than the corresponding figure of the previous year. Due to volatility in crude prices, OMCs in India faced a considerable strain in their liquidity. BPCLs profits have suffered due to the rising under-recoveries arising out of subsidies on SKO, domestic L.P.G., and also Motor Spirit and High Speed Diesel under-recoveries due to price regulation by the government. As a means to compensate this, Government of India set up a mechanism for sharing this subsidy burden. Out of the total under recoveries, onethird was shared by the PSUs in upstream sector through discounts on crude purchased, one-third by Governments Oil bonds and balance by OMCs. New ideas are also being tested and tried in BPCLs retail business, so as to maximize the advantage that they possess by having established retail outlets spread across the country. As a result of aggressive marketing, the retail business was able to achieve an impressive growth of 13% compared to the previous year.

1.1. E. HUMAN RESOURCE. Sarting in August 2002, Bharat Petroleum, under the aegis of the Public Enterprises Selection Board, in association with the Hay Group, conducted an empirical research study, the first of its kind, to identify leadership competencies necessary for Indian CEOs. The study was conducted under rigorous methods developed at the McClelland 37

Centre for Innovation and Research at Boston. These included criterion sampling, Behavioural Event Interviews, expert panels, coding, concept formation, performance outcome analysis and validation. The outcome of that study is The Indian CEO Competency Model, wherein Competencies for Success were drawn up, providing keys to outstanding Indian Corporate Leadership in our time. The model comprised 11 competencies, that can be arranged in four groups or clusters, which are: SOCIAL RESPONSIBLE BUSINESS EXECELLENCE. 1. Adaptive Thinking. 2. Entrepreneurial Drive. 3. Excellence in Execution. ENERGIZING THE TEAM 1. Driving Change. 2. Team Leadership. 3. Empowerment with Accountability MANAGING ENVIRONMENT 1. Networking. 2. Organizational Awareness. 3. Stakeholder Influence. INNER STRENGTH. Executive Maturity. Transcending Self. Qualities such as change and team leadership, accountability, empowerment, networking and executive maturity are some of the critical dimensions of leadership highlighted in this book. It also charts a countrywide blueprint of how CEOs think, act and feel and exhibit typical effective behaviours worthy of emulation. The findings of this study would help in providing food for thought for existing leaders, as well as developing future leaders and benchmarking their skill-sets, strategies and successes. The few of other common human resource activities undertaken by BPCL are as: Efficiently supervising a team of 150 members. Effective day-to-day office management. Ensuring complete logistics and administrative support for conducting meetings. In charge of office correspondence and mail management functions. Training need analysis Induction programmes Arrangement; Manpower/Recruitment planning Preparation of annual targets for personnel. Coordinating Staff appraisals. Good Interpersonal skills; Adept at Indenting and inventory of office stationery. 38

. .

Manifested expertise in organizing social functions for staff members as a part of boosting industrial relation.

1.1. E. OPERATIONS. The core business operations of Bharat Petroleum are Petroleum Refining. It belongs to the oil & gas operations industry. Although it carries the ancient Sanskrit name for India (Bharat), Bharat Petroleum Corporation Limited (BPCL) is a modern refining and distribution company. It vies with Hindustan Petroleum for the #2 slot behind Indian Oil. The company processes petroleum and petroleum products; its refinery in Mumbai processes 260,000 barrels of crude per day. It also controls refineries in Kochi and Numaligarh. BPCL sells engine oils and gasolines, liquefied petroleum gas (L.P.G.), and kerosene. It has more than 6,550 gas stations, more than 1,000 kerosene dealers, and a national network of L.P.G. distributors. The Indian government owns 55% of the firm, although it plans to sell this stake as part of industry wide deregulation. The various other operational functions of BPCL are as: APRON FUEL MANAGEMENT SYSTEM & E-BIZ SOLUTION. BPCL is the first and only oil company in India to implement Apron Fuel Management System which is a powerful and comprehensive system that combines the vehicle (Point of Sale) and office support functions into a single seamless interface reducing human intervention and enhancing accuracy. BPCL also provides E-Biz solution to their customers. OVERSEAS PROJECTS. BPCL Aviation SBU has entered into a contract with Larsen & Tourbo-ECC Division and is rendering its expertise to M/s L & T - ECC Division for successful completion of New Aviation Fuel Depot at Kuwait for Kuwait Aviation Fuelling Company (KAFCO).The scope of service includes Technical Consultancy by Aviation/Engineering & Projects specialists having domain expertise, Preparation of Pre-Commissioning and Commissioning procedures. BPCL is assisting in performing Pre-Commissioning and Commissioning of entire facility at KAFCO project, training of Owner's personnel in India (Class room training) and on job training at KAFCO site, Kuwait, participation in HAZOP/SIL/ALARP study and assistance to evaluate remedy on the findings as advised by HAZOP committee chairman (i.e. recommendations by 3rd party from that study), assistance in Procurement related activities and preparations of Operations& Maintenance and QC Manual. HYDRANT OWNERS & OPERATOR AND EQUITY ATCIAL. BPCL is the first oil company to participate in Greenfield airport in India. BPCL hold equity stake in Cochin International Airport Ltd. which is the first airport built under private-public participation and have state of art hydrant refuelling system at the airport built by them. 39

1.1. F.RESEARCH AND DEVELOPMENT. Over the years, Bharat Petroleum continues to meet the challenges of the rapidly changing environment, leading to changes in the marketing of products and services. In all these changes, only one factor has remained constant and has been the source of Bharat Petroleum's strength and inspiration for any future innovations - Bharat Petroleum's People. The feeling of ownership has facilitated all employees to understand the complexity of the market and needs of the customers, and respond to these needs with innovative initiatives and offerings. Research and development Centre always on the forefront to innovate, Bharat Petroleum is making distinct efforts towards Research and Development (R and D). Besides the R and D facilities at the Refinery and the Product Application Development Centre in Sewree in Mumbai, a new state-of-the-art RandD Centre is being set up near Delhi. The R and D Centre is being organised around three core groups Process and Technology Development, Product Application Development and Environmental Engineering. A total outlay of Rs.3,000 million has been planned to be spent in three phases up to the year 2003-04 on this project. BHARAT PETROLEUM- THE TECHNOLOGICAL EDGE. Bharat Petroleum has always been on the forefront of harnessing technology initiatives for BPCL has been on forefront in harnessing technology. Maximising efficiency and achieving greater customer satisfaction. Bharat Petroleum is the first Public Sector Oil Company to implement Enterprise wide Resource Planning (ERP) solutions - SAP. The implementation project known as ENTRANS (Enterprise wide Transformation) has been awarded the 'SAP Star Implementation Award', with Bharat Petroleum having the distinction of executing the largest and the most ambitious SAP project in India. The challenge of SAP implementation was to ensure that all the integrated elements (of the complex multimodular integrated solutions that impact the entire workflow of the organisation) work seamlessly across the length and breadth of the country, including the remote locations. Providing online connectivity in these remote locations, given the fullfledged IT network infrastructure, was in itself a daunting task. Bharat Petroleum is reaping the benefits of the integrated system in many areas of its operations. The early gains of implementation are in the areas of tracking customerreceivables, monitoring credit-management, inventory management, besides easing the operations in a large number of areas. Furthermore, Bharat Petroleum has also set up one of the biggest 'Centres of Excellence' in Asia to provide online support to the end users and also work towards continuous improvement in business processes and handle product upgrades and new generation products. With SAP as the IT backbone, Bharat Petroleum plans to take advantage of the Internet based capabilities along the entire value chain with a Customer Relationship 40

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

1.2. B.BRIEF ABOUT THE COMPETITORS. THE FOLLOWING ARE THE TOP FIVE COMPETITORS OF BHARAT PETROLEUM CORPORATTION LIMITED: INDIAN OIL CORPORATION LIMITED. Indian Oil Corporation is an Indian public-sector petroleum company. It is Indias largest commercial enterprise, ranking 116th on the Fortune Global 500 listing (2008). It began operation in 1959 as Indian Oil Company Ltd. The Indian Oil Corporation was formed in 1964, with the merger of Indian Refineries Ltd. Indian Oil and its subsidiaries account for a 47% share in the petroleum products market, 40% share in refining capacity and 67% downstream sector pipelines capacity in India. The Indian Oil Group of Companies owns and operates 10 of India's 19 refineries with a combined refining capacity of 60.2 million metric tons per year. On 30th June 2009 Indian Oil will complete 50 years of its existence and a series of events are being planned to celebrate its Golden Jubilee Year. Overview Indian Oil operates the largest and the widest network of fuel stations in the country, numbering about 17606 (15557 regular ROs & 2049 Kissan Sewa Kendra). It has also started Auto L.P.G. Dispensing Stations (ALDS). It reaches Indane cooking gas to over 47.5 million households through a network of 4,990 Indian distributors. In addition, Indian Oil's Research and Development Centre (R&D) at Faridabad supports, develops and provides the necessary technology solutions to the operating divisions of the corporation and its customers within the country and abroad. Subsequently, Indian Oil Technologies Limited - a wholly owned subsidiary, was set up in 2003, with a vision to market the technologies developed at Indian Oils Research and Development Centre. It has been modelled on the R&D marketing arms of Royal Dutch Shell and British Petroleum.

HINDUSTAN PETROLEUM CORPORATION LIMITED. HPCL (Hindustan Petroleum Corporation Limited) is a Fortune 500 company, with an annual turnover of over Rs 1,03,837 Crores ($ 25,142 Millions) during FY 200708, 16% Refining & Marketing share in India and a strong market infrastructure. Corresponding figures for FY 2006-07 are: Rs 91,448 crores ($20,892 Million). The Corporation operates 2 major refineries producing a wide variety of petroleum fuels & specialties, one in Mumbai (West Coast) of 5.5 MMTPA capacity and the other in Vishakhapatnam, (East Coast) with a capacity of 7.5 MMTPA. HPCL holds an equity stake of 16.95% in Mangalore Refinery & Petrochemicals Limited, a state41

of-the-art refinery at Mangalore with a capacity of 9 MMTPA. In addition, HPCL is progressing towards setting up of a refinery in the state of Punjab in the joint sector. HPCL also owns and operates the largest Lube Refinery in the country producing Lube Base Oils of international standards. With a capacity of 335 TMT. This Lube Refinery accounts for over 40% of the India's total Lube Base Oil production. The vast marketing network of the Corporation consists of Zonal offices in major cities and over 91 Regional offices facilitated by a Supply & Distribution infrastructure comprising Terminals, Aviation Service Stations, L.P.G. Bottling Plants, and Inland Relay Depots & Retail Outlets. The Corporation over the years has moved from strength to strength on all fronts. The refining capacity steadily increased from 5.5 million tonnes in 1984/85 to 13.70 million metric tonnes (MMT) presently. On the financial front, the turnover grew from Rs. 2687 crores in 1984-85 to an impressive Rs 1,03,837 Crores in FY 2007-08. HPCL also owns and operates the countrys largest Lube Refinery, producing Lube Base Oils of international standards. With a capacity of 335,000 Metric Tonnes. This refinery accounts for over 40% of the countrys total Lube Base Oil production. The vast marketing network of the Corporation consists of Zonal offices in the 4 metro cities and over 85 Regional offices facilitated by a Supply & Distribution infrastructure comprising Terminals, Aviation Service Stations, L.P.G. Bottling Plants, and Inland Relay Depots & Retail Outlets. RELIANCE INDUSTRIES LIMITED. Reliance Industries Limited (NSE: RELIANCE) is India's largest private sector conglomerate (and second largest overall) with an annual turnover of US$ 35.9 billion and profit of US$ 4.85 billion for the fiscal year ending in March 2008 making it one of India's private sector Fortune Global 500 companies, being ranked at 206th position (2008). It was founded by the Indian industrialist Dhirubhai Ambani in 1966. Ambani has been a pioneer in introducing financial instruments like fully convertible debentures to the Indian stock markets. Ambani was one of the first entrepreneurs to draw retail investors to the stock markets. Critics allege that the rise of Reliance Industries to the top slot in terms of market capitalization is largely due to Dhirubhai's ability to manipulate the levers of a controlled economy to his advantage. Though the company's oil-related operations form the core of its business, it has diversified its operations in recent years. After severe differences between the founder's two sons, Mukesh Ambani and Anil Ambani, the group was divided between them in 2006. In September 2008, Reliance Industries was the only Indian firm featured in the Forbes's list of "world's 100 most respected companies". CHENNAI PETROLEUM CORPORATION LIMITED. Chennai Petroleum Corporation Limited (CPCL), formerly known as Madras Refineries Limited (MRL) was formed as a joint venture in 1965 between the Government of India (GOI),AMOCO and National Iranian Oil Company (NIOC) having a share holding in the ratio 74%: 13%: 13% respectively. From the grassroots stage CPCL Refinery was set up with an installed capacity of 2.5 Million Tonnes Per Annum (MMTPA) in a record time of 27 months at a cost of Rs. 43 crore without any time or cost over run. 42

In 1985, AMOCO disinvested in favour of GOI and the shareholding percentage of GOI and NIOC stood revised at 84.62% and 15.38% respectively. Later GOI disinvested 16.92% of the paid up capital in favour of Unit Trust of India, Mutual Funds, Insurance Companies and Banks on 19 May 1992, thereby reducing its holding to 67.7 %. The public issue of CPCL shares at a premium of Rs. 70 (Rs. 90 to FIIs) in 1994 was over subscribed to an extent of 27 times and added a large shareholder base of over 90000.As a part of the restructuring steps taken up by the Government of India, Indian Oil Corporation Limited (IOCL) acquired equity from GOI in 2000-01 Currently IOC holds 51.88% while NIOC continued its holding at 15.40%. In view of the CPCL become subsidiary of IOCL in 2001. The Manali Refinery has a capacity of 9.5 MMTPA and is one of the most complex refineries in India with Fuel, Lube, Wax and Petrochemical feedstock production facilities. CPCL is also the company where NRI businessman Mr.C.Sivasankaran worked as a fabrication contractor. MANAGLORE REFINERY AND PETROCHEMICALS LIMITED. Mangalore Refinery and Petrochemicals Limited (MRPL), located at Katipalla, north from centre of Mangalore city, is a state-of-the-art Grass root Refinery at Mangalore and is a subsidiary of ONGC, set up in 1998.The refinery was established after displacing five villages of Bala, Kalavar, Kuthetoor, Katipalla, and Adyapadi. The refinery has a versatile design with high flexibility to process crudes of various API and with high degree of automation. MRPL has a design capacity to process 9.69 million metric tonnes per annum and is the only refinery in India to have two hydrocrackers producing premium diesel (high cetane). It is also the only refinery in India to have two CCRs producing unleaded petrol of high octane. Currently, the refinery is processing about 12.5 million tonnes of crude per year and had a turnover of US$ 8 billion during last year. MRPL, which was a joint sector company, become a PSU subsequent on acquisition of its majority shares by ONGC. As on 1 April 2007, 71.62% shares are held by ONGC, 16.95% shares are held by HPCL and remaining shares are with public and financial institutions. MRPL has also been declared as Miniratna, a mini jewel, by Government of India in 2007. Before acquisition by ONGC in March 2003, MRPL was a joint venture oil refinery promoted by M/s Hindustan Petroleum Corporation Limited (HPCL), a public sector company and M/s IRIL & associates (AV Birla Group). MRPL was set up in 1988 with the initial processing capacity of 3.0 million metric tonnes per annum that was later expanded to the present capacity of 9.69 million metric tonnes per annum. The refinery was conceived to maximise middle distillates, with capability to process light to heavy and sour to sweet crudes with 24 to 46 API gravity. On 28 March 2003, ONGC acquired the total shareholding of A.V. Birla Group and further infused equity capital of Rs.600 crores thus making MRPL a majority-held subsidiary of ONGC. The lenders also agreed to the debt restructuring package (DRP) proposed by ONGC, which included, inter alia, conversion up to Rs 365 core of their loans into equity. Subsequently, ONGC has acquired equity allotted to the lenders pursuant to DRP raising ONGCs holding in MRPL to 71.62 percent.


section -2.

Objectives, Scopes, Research Methodology, Data Analysis, Findings And Conclusions.

2.1. Objective of the study. the objective of the study for indutries are to find out: The relevence of L.P.G. used in accordance with the product that is being manufactured in respective industry. Consumption of L.P.G. in industries based on preferences, priority and individuality. Requirement on L.P.G. in jewellry, iron, steel and ancillary industries.

2.2. Scopes and limitations of the study. Scopes of the study. The study covers all the industry in the sitapuara as well as pratan nagar, shanganer which is situated in jaipur distic. This study covers the opportunity analysis of L.P.G. of bharat petroleum in jewellry,auto mobile , steel and anciallary industries as well as in retail market. The study also covers analysis of industries requirement and consumption of L.P.G. in industries as well as awareness, perception and consumption of L.P.G. by common endindustrial-users through bpcl The survey has provided the company with much new l.p.g gas related information of industries and other business contacts who might be potential customers of Bharat Petroleum Corporation Limited. This survey also provides an insight about the prioritization factors of the industries and retailers for comsuming and selling decision respectively.

Limitations of the study


lack of interest and enthusiastic responses may have allowed biases in this report in the form of non-responsive error. Correctness of this report is restricted and limited by the degree of authenticity of data collected and sincerity and honesty of respondents. Area of study is restricted to sitapura and pratap nagar, shanganer industrial area of jaipur rajasthan only which is a major limitation. The national scenario may be totally different from the results of the above mentioned areas.

2.3. Research methodolgy. Methodology and approach. The study was qualitative in nature based on industrial and retailer consumption and stock keeping units decision respectively. Field research was carried out for the survey both for the case of industries and retailers. For industries the study was descriptive in nature where as for retailers it was exploratory. Data source primary data source as new facts and figures are being collected from the project. sampling plan. The main target area for the purpose of collecting the sample for the study was sitapura and pratap nagar, shanganer where the main target population was jewellery, iron steel & ancillary industries and retail shops selling L.P.G. to consumers and end-users. Finally probablistic clustered sampling was done since every industry and retailers had an equal chance of being selected. Research instrument. separate questionnaires were being prepared both for industry and retailers where each consisted open-ended, close-ended, checklists and straight-forward type questions. The mode of collecting the data was basically interview-administered and face to face conversations for both industry and retailers.


2.4. DATA ANALYSIS. 2.4. A. INDUSRTY (BUSINESS TO BUSINESS) The project perambulates round the requirements of liquid petroleum gas in textile, iron steel, Textile and ancillary industries. The main purpose of the study was to find out the requirements of various types of liquid petroleum gas such as mainly 14 kg.domestic,19 kg industrial smallest size as well as 35 and 47.5 kg gas and other various types of gas. Through this analysis we were also able to find the priority of parameters which helps in making an industrys decision of buying L.P.G. from a particular company, distributor or from any other source of supply. Other factors that we were being measured through this study were like that of performance level monitoring, average monthly consumption of industries for liquid petroleum gas. The sample for the study of the above mentioned parameters were about 41 industries both from SITAPURA and PRATAP NAGAR, SANGANER. The following are the analyzed parameters which are known to be significant for industries in terms of consumption, requirement: MONTHLY CONSUMPTION OF INDUSTRIES. The monthly consumption of liquid petroleum gas varied from industry to industry depending on the size of the industries i.e. large, medium and small scale industries. The following graph shows the consumption rate of industries cumulative of both the industrial area.


The following graph shows the consumption of liquid petroleum gas in respective industries: SITA PURA INDUSTRIAL AREA

These are the major industry in which I have visited for the purpose of data collection in jeweller well as sweets and others



It is found that I.O.C.L is the number one gas industry in the sitapura as well as Pratap Nagar and sanaganer and than comes B.P.C.L. in second possition than after HPCL , RELIANCE AND SUPPER respectively.

MOST CONSUMED BRANDS IN INDUSTRIES. It is found that IOCLs L.P.G. brand has the high frequency of consumption when analysis is done on cumulative basis of both the area. BHARAT PETROLEUM comes second but this is only due to the fact that it is being consumed only in small scale industries like jewellery, sweet crushers and that too in a very small quantity (the above graphs best gives the representation).Both BPCL and HPCL too have good proportion of market share of L.P.G. in industries as per the frequency obtained from the analysis.


FREQUENCY OF MOST CONSUMED BRANDS IN ALL THE AREA The results were the same when individual area wise frequency analysis was done. IOCL still topped the market of industries with BPCL and HPCL coming to second and third position respectively.



PARAMETERS WHICH DECIDES TO BUY L.P.G.. From the research it was found that all industries(both small and large scale) buy their required portion of L.P.G. on the basis of PRICE factor, similarly does the same on SERVICE as well as RECOMMENDATION AND OTHERS. The parameter OTHER includes sub-parameters like that of QUALITY, SATISFACTION, and WAIGHT etc. The given graphical representation gives the best over view of the parameters on which all the industries as well as general means domestic customers decide their process of buying L.P.G. as for the purposes of consumptions and requirements:


So, finally it can be concluding that most of the industries (irrespective of their sizelarge, medium, small scale) mainly put emphasis on PRICE and SERVICE as their primary and RECOMMENDATION and OTHER factors as their secondary priority. For area wise analysis of the parameters for buying L.P.G., it was found that most of the industries irrespective of their size mostly had PRICE, SERVICE and OTHER (SATISFACTION, QUALITY)WAIGH as their primary priority and RECOMMENDATION as secondary priority. This mentioned prioritizations of parameters were found for SITAPURA,PRATAP NAGAR, SANGANER From the above graph only it is quite clear that PRICE comes as first priority followed by SERVICE,RECOMMENDATION and OTHER as second ,third and last priority respectively for industries as for the consumption of lubricants. 2.4. B.RETAIL MARKET (BAZAAR). The project perambulates round the bazaar potential assessment of L.P.G. for SITAPURA and SANGANER, PRATAP NAGAR. It was being assigned to carry out a survey of all the Company in the two area like sitapura and sanganer to begin with I have classified that The analysis is based on certain parameters and the survey was carried out through questionnaire, (being the medium of exploration). HIGEST SELLING BRANDS.


According to my observation there in maximum sales of 14 kg cylinder after that 19 kg industrial product than 35 and 47.5 respectively consumed by the consumer in the market , following digram can clearyfy all those thing which I found in the market This is found that 14kg is the most selling brand in the marker which is related with domestic uses product and than after 19 kg industrial product after that 35 and 47 kg industrial product are selling in the market As it is shown in the graph .

2.5.FINDINGS . FINDINGS FROM INDUSTRIES . For industries, the requirements of liquid petroleum gas basically varied as per the nature of the products that are being manufactured which is typically high for large scale industries like JEWELLRY, BOTCH, SAWARIYA SWEETS,IRON STEEL & ,MAHINDRA AND MAHINDRA etc.Similarly the rate consumption is low for medium and small scale industries. From the analysis it was quite clear that irrespective of the size of industries, PRICE always remained the major parameter which helps them for the purpose of buying gas. The same was found out when individual analysis was done on each area. It is also found from the analysis of both the area in cumulative as well as individual form that a majority number of industries are sourcing their lubricant requirements from distributors rather than directly from company of the brand they are consuming. From the survey it can be concluded that the average consumption of L.P.G in SITAPURA industrial area is nearly about 11500 cylinders whereas the consumption for industries in PRATAP NAGAR is nearly 2100 litres which is quite low when compared to that SITAPURA.


From the analysis it was found that INDIAN OIL is the market leader in of L.P.G. in bazaar market. Similarly BHARAT PETROLEUM comes second and thereafter HPCL, SUPPER, AS WELL AS RELIANCE are ranked respectively as third, fourth and fifth respectively. In retail market, for both the area taken together as well as on individual level, the total sale of domestic L.P.G. products are quite dominant, after which industrial product 19 kg L.P.G. products have the second majority. This is due to the fact that both SITAPURA and PRATAP NAGAR are industrial area. DEMAND has been one of the major parameter for retailers for which they keep stocks of domestic selling it to the market. Hence it can be inter linked that domestic cylinder has the maximum demand as it is the highest selling cylinder in both the area individually. After demand, MARGIN is the second most important parameter for retailers for keeping a cylinder. This is so because it is quite natural that margin is the parameter that gives profit to the retailer.


Bharat petroleum is performing well in its industry but the major changes that BPCL needs to is following Company need to do competitor analysis through which the can understand the new pricing strategy so that company can sustain in the market because competitors are very hyper in the market through pricing as Supper as well as Reliance gas Company need to take feedback from time to time so that company can deliver better service to consumer so that consumer can get better after sale service BPCL need to penetrate retail market for industrial product as well as domestic product so that company can increasing the market share because a lot of person has no time to take connection and the company goes to them they take connection from him Company should organize campaign for new connection so that industrial and domestic customer can take easy connection , this is the easy way through which company can easily increase market share Company need to appoint a person who can do direct marketing and customer can easily send and solve their problems Company should be target oriented so that every staff can give hundred percent in the company work and company can compete with private player BPCL should also initiate the loyalty program to the existing customer so that existing customer can be loyal and new customer can be attract as many retail marketer


Bharat Petroleum Corporation Limited is one of the leading in Indian petroleum arena, the main competitor of BPCL were IOCL as well as HPCL but in the present scenario Supper as well as Reliance private player came in to existing so company is getting more and more competition from private player Company has have 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 According to me and my project analysis 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 PSU in this industry.


Bibliography:I have found secondary data from the following sites:

1. www.wikipedia.com

2. WWW.BHARATPETROLEUM.IN 3. www.bharatpetroleum.com/wheels
4. www.about.com 5. www.yahoo.com 6. www.google.co.in 7. WWW.CNNMONEY.COM 8. www.speedfuels.com

Marketing Management Philip Kotler

Mak Industrial Fuel And Getit B2b Book. Industrial Guide.


Field Survey Questionnaire INDUSTRIAL SECTOR


Organization _____________________________________________________________________



1. What fuel do you use? L.P.G. Power Oil Coal Electricity Solar

2. If L.P.G. user (Brand Used) BP HP IOL Other

If other, please specify__________________________________________

3. What size of L.P.G. cylinder does your company use? Please specify__________________________________________

4. What is the average consumption per month?

What is the cost per month? 57

_____________________________________________________________________ _____________________________________________________________________

What is the delivery period? (After placing order) Same day Next day + 3days

5. Does the supplier offer discounts? Credit?


6. What is L.P.G. used for in your factory? _______________________________________________________________

7. Do you face supply problem? _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ _______________________________________________________________

Thank you for your inputs. Your responses will remain Confidential and used solely for industrial purposes.


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