INDUSTRIAL RESEARCH

AARTI PUROHIT ARUN KOSHIYA

JAISHANKAR PATEL
PRIYANKA BISWAS PUSHPAPATEL RESHMA
D’SOUZA
VARUN MAURYA
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Major Players in Petroleum Sector

 BPCL

 HPCL

 IOCL

 RIL

 ESSAR

 Shell



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Market Share of Major
Players

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 Statistics of Total no. of Petroleum retail
outlets for different OMC’s in India:
Company name March-2007 December-2007 March-2008

PSU’s

IOC 16,540 16,540 17,460

BPCL 7,609 8,089 8100

HPCL 7,909 8,060 8080

Total 32,058 32,689 33,640

Private Player

RIL 898 1800 1800

Essar 1,149 1250 1250

Shell 32 32 37

Others 2,079 3035 3042

Total 34,137 35,724 36682

Sources: Indian Oil and Gas and CRISIL

Research
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

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HPCL

 Hindustan Petroleum Corporation Ltd (HPCL)

was incorporated as Standard Vacuum
Refining Company of India Ltd in 1952, and
later became the ESSO Standard Refining
Company of India Ltd in 1962.
 HPCL was formed with the merger of ESSO and
Lube India Undertaking in 1974.
 Caltex Oil Refining India Ltd and Kosan Gas
Company were merged with the company in
1976 and 1979, respectively.
 HPCL, a Navratna, is involved in refining and
marketing petroleum products.


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BPCL

 It is the 3rd largest oil company in India owned by

the Government of India.
 Revenue (2005): $17.613 billion
 Employees: 12400
 In 1976, the Burmah Shell Group of Companies
was taken over by the Government of India to
form Bharat Refineries Limited.
 In 1977, it was renamed Bharat Petroleum
Corporation Limited.
 It was the first refinery to process newly found
indigenous crude (Bombay High), in the
country.
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 Number of Refineries

Madras Mumbai
Bhatinda
Mumbai

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 Demand Forecasting

They track last five years sales

 Same happens in BPCL.
figure and find out the growth rate
They also track growth rate of


automobile sales.


Petroleum ministry gives total



production plan.

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 After sale service

For industrial products they take

 No standard feedback mechanism,


feedback of huge customer and feedback is taken only from large

carefully look about the need.

For retail products there is no after
sales services, all the services are
customers.
Special petro-card for logistics
companies is provided.
Logistics companies get 2 month

available on petroleum pump. credit period.



Facility for truck drivers to take



bath, have food and cold drinking

water.
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 SCM – In/outbound logistics

Inbound as well as outbound Inbound logistics is outsourced.

logistics are outsourced.
Outbound logistics is 50%


Industrial customers have an option outsourced and 50% company

of using their vehicles or company’s owned.

vehicle.
Any customer don’t have any option

No company owned vehicle. to use their vehicle.

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Marketing mix ( 4 P’s)

Product : Each and every Product : Each and every

petroleum products are available petroleum products are available
Price : Petroleum ministry Price : Petroleum ministry
decides price of each and every decides price of each and every
product for each and every PSU. product for each and every PSU.
Place : Services are available all Place : Available only in
over India and in selected selected states of India.
countries, if not then use the
resources of IOCL. Promotion : Recently started
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and managemnet 15
 International Marketing
Research

No research in international market. Not available in international


market, not even planning to go.
They only supply products to some

countries like Japan, srilanka, etc.

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 Competition trends

Every year management of every Every year management of every

PSU’s gather with petroleum PSU’s gather with petroleum
ministry and talk about future plans ministry and talk about future plans
and budget allocation. and budget allocation.

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 Appointment of dealer.

They 1st decide the place and then

  Same process is followed by BPCL.
give advertisement. 

 Only company decides where to



 Interview is taken of applicants. open retail outlet.



If any person is willing to open a



retail outlet in his locality then he

can apply in HPCL.

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BACKGROUND

 Indian Oil Corporation Ltd. is currently India's largest

company by sales with a turnover of Rs. 285,337
crore and profit of Rs. 2,950 crore for fiscal 2008-09.
 A wholly owned subsidiary company, Indian Oil
Technologies Ltd. is the 19th largest petroleum
company in the world
 Indian Oil's world-class R&D Centre has developed over
2,100 formulations of SERVO brand lubricants and
greases for virtually all conceivable applications
meeting stringent international standards and bearing
the stamp of approval of all major original equipment
manufacturers.
 Indian Oil is also strengthening its existing overseas
marketing ventures and simultaneously scouting new
opportunities for marketing and export of petroleum
products to new energy markets in Asia and Africa.


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OVERVIEW

 India’s largest oil company.

 Operates in India, certain Asian and African
countries.
 Owns nearly 93,00km of pipeline.
 Operates a network of 18,278 petrol and diesel
station.
 More than 32,000 marketing touch points, along
with its marketing subsidiary, IBP Co. Ltd.



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Major divisions

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 IOCL Refineries:

Refineries Located at Installed

Digboi Assam 0.65
Capacities
Guwahati Assam 1.00
Barauni Assam (MMTPA)
6.00
Koyali Gujarat 13.70
Haldia West Bengal 6.00
Mathura Uttar Pradesh 8.00
Panipat Near Delhi 12.00
Bongaigaon Assam 2.95
Chennai Tamilnadu 9.50
Paradip upcoming Orissa 15.00

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Pipeline Transportation:

 Operates a network of 10000 km long crude oil and

petroleum product pipelines with a capacity of 62
MMTPA.
 Commissioning of new projects worth about Rs.
2,300 crore including LPG and R-LNG pipelines
will reach the capacity to 75 MMTPA with a
network of over 10,000 km.
 During the year 2008-09 Indian Oil’s crude oil
pipelines Registered the 38.46 million metric
tons.
 All operating pipeline units have been accredited
with ISO 9000 and ISO 14001 certificates.

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Marketing:

 One of the largest petroleum marketing and distribution

networks in Asia, with over 32,000 marketing touch
points.
 The countrywide marketing operations are coordinated
by 16 State Offices and over 100 decentralized
administrative offices.
 The wide network of services offered by Indian Oil,
Marketing Division, which includes;
commercial/reticulated LPG; total fuel management/
consumer pumps; Indian Oil Aviation Service; LPG
Business (non-fuel alliances); loyalty programs; retail
business (non-fuel alliances) and SERVO technical
services.


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Research & Development:

 The R&D Centre continues to provide significant support to

the Indian Oil Group refineries in product quality
improvement, evaluation of catalysts and additives, health
assessment of catalysts, material failure analysis,
troubleshooting and in improving overall efficiency of
operations.
 India Oil's R&D Centre established that Biodiesel produced
from Jatropha seeds were at par with that produced from
vegetable oils.
 Indian Oil has, till date, invested close to Rs. 1,000 crore in
setting up world-class facilities at its R&D Centre
 It plans to invest about Rs. 500 crore during the period 2007-
12 to maintain its leadership in downstream R&D activities
in the hydrocarbon sector.

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IOC Brands:

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

 4 P’s of IOCL

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Products

 Petrol
 Diesel
 LPG
 Auto LPG
 Aviation turbine fuel
 Lubricants
 Naphtha
 Bitumen
 Paraffin
 Kerosene

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PRICE:

 Price for all the products of all

company is decided by petroleum
ministry.

 Very less difference in price of all
PSU’s

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PLACE:

 Located all over India.

 Maximum number of refineries.
 Only company having retail outlet
outside India ( srilanka)

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PROMOTION:

  
 Subhiksha: Two ZOOP noodles packet free on
purchase of Rs. 250/-
 Dominos: Rs. 50/- off on each midsize dominos
pizza.
 PVR cinema: Rs 10/- off on eatables purchased
in PVR cinema.
 Rajdhani Thali: 10% off on each Rajdhani Thali.
 Yoko Sizzlers: 10% off in Yoko Sizzlers AC
Restaurants.


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

 SWOT
 Analysis

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Strengths:

 High foreign exchange debt.

 Largest retail network all over India.
 Highest market share
 Expertise in Oil & Gas Industry
 Foreign subsidiaries and joint ventures
 In-House training centers

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Weakness:

 Stringent corporate policies

 Lack of marketing efforts
 Promotion policy
 Tender process


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Opportunity:

 Exploration and Production

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Threats:

 Entry of Big Private players

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

PEST


 Analysis


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Political – Legal Environment

 Entire oil industry is been governed by OIL

Ministry and OIDB a Govt body
 This two Institutes are responsible for all the
decision related to the price, quality
specification etc.
 Beside this the international politics also affect
this international commodity “Oil” a lot and
also its companies
 Any company operated in India had to work
according to the norms and on the prices
specified earlier by Govt bodies
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Economic environment:

 The gradual reduction of tariff protection has ensured that prices of most
goods in countries like India are closer to global levels or even much
lower.
 The lower prices are much more extensive in the services sector, which
accounted for 52.4% of the Indian economy in 2004- 05.
 The use of GDP based on purchasing power parity in the calculation of oil
intensity is also validated by the fact that the figures on oil consumption
are measured in terms of volumes of input (million tons of oil equivalent-
mote) while the GDP estimated on the market exchange rate gives only
the value of output and not the actual volumes.
 It is only the GDP estimated on a purchasing power parity basis which gives
some indicator so the volume of output which should form the basis of
cross country comparisons of output and estimation of oil intensity
therein.
 However, though the oil intensity in India is comparatively much lower than in
most other developed and developing countries the negative impact of
high oil prices on the economy is accentuated by the distorted pattern of
oil consumption in India.

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Social Cultural Environment:

 Social cultural variation in the Indian context is

very important for any company to work in it.
 The India is basically can be divided into four
major regions on the basis of language,
demography and also the income states. These
are the south, north, east and west.
 The IOCL as a company also operates differently
in different regions and also use different
languages to attract people towards them.
 This is also, a reason for which the companies
have three refineries in the south region out of
eleven in total. And that also because of the
merger with MRPL a local regional company

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Technological Environment

 Indian Oil has, till date, invested close to Rs. 1,000 crore in setting
up world-class facilities at its R&D Centre and it plans to invest
about Rs. 500 crore during the period 2007-12 to maintain its
leadership in downstream R&D activities in the hydrocarbon
sector.
 This the reason , that’s why IOCL have the India's first experimental
H-CNG (Hydrogen-Compressed Natural Gas) dispensing unit at
the R&D Centre campus at Faridabad and has been in the
forefront of technology development for Bio-diesel production
from various edible and non-edible oils and its application in
vehicles.
 Pioneering studies by India Oil’s R&D Centre established that Bio-
diesel produced from Jatropha seeds were at par with that
produced from vegetable oils.

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 e y
r v
s u
e r
o m
s t
C u

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Which petrol pump do
you visit?

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Why you prefer your
selected pump?

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Score the company on
following attributes (10
being highest)

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Do you use branded
fuel?

If yes then go to question No. -

8
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Reason for not using
branded fuel?

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If branded fuel will be sold
at normal rate will buy it?

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Which branded fuel do
you use?

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Since how long are you
using branded fuel?

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What influenced you to go
for branded fuel?

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Has branded fuel
Benefitted our vehicle?

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Are you satisfied with
Branded fuel?

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Recomendation

 HPCL should come up with some

loyalty or petro cards.
 Because people don’t purchase fuel
just because of good brand.

 BPCL should come up with some
extra services only for small
customers.
 BPCL should develop a good
distribution network.
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 y o u
a n k
T h
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