HPCL Report Sukriti PGP09051
HPCL Report Sukriti PGP09051
Umesh P Singh
Bearing in mind previous I am using this opportunity to express my deepest gratitude and special
thanks to Umesh P Singh who in spite of being extraordinarily busy with her/his duties, took time
out to hear, guide and keep me on the correct path and allowing me to carry out my project at their
esteemed organization and extending during the training.
I express my deepest thanks to Ashit Jain, Assistant manager for taking part in useful decision &
giving necessary advices and guidance and arranged all facilities to make life easier. I choose this
moment to acknowledge his contribution gratefully.
It is my radiant sentiment to place on record my best regards, deepest sense of gratitude to Versha
Mishra, Ikshwaku Goel for their careful and precious guidance which were extremely valuable
for my study both theoretically and practically.
I perceive as this opportunity as a big milestone in my career development. I will strive to use
gained skills and knowledge in the best possible way, and I will continue to work on their
improvement in order to attain desired career objectives.
Sincerely,
Sukriti Gupta
Date: 30/5/2019
TABLE OF CONTENTS
1. INTRODUCTION.................................................................................................................................................... 3
1.1 About the company ...................................................................................................................................... 3
1.2 Vision ................................................................................................................................................................. 3
1.3 Mission .............................................................................................................................................................. 3
1.4 Values................................................................................................................................................................ 3
2. PRODUCTS ............................................................................................................................................................. 4
2.1 CNG ................................................................................................................................................................... 4
2.2 LPG .................................................................................................................................................................... 4
2.3 Kerosene .......................................................................................................................................................... 4
2.4 Petrol.................................................................................................................................................................. 4
2.5 Diesel ................................................................................................................................................................. 5
2.6 Naphtha ............................................................................................................................................................ 5
2.7 Aviation Turbine Fuel .................................................................................................................................. 5
2.8 Bitumen ............................................................................................................................................................. 6
2.9 Fuel Oils............................................................................................................................................................ 6
2.10 Low Sulphur Heavy Stock (LSHS) ......................................................................................................... 7
3. EXECUTIVE SUMMARY .................................................................................................................................... 7
4. Research ................................................................................................................................................................... 7
4.1 Methodologies and data collection ........................................................................................................ 7
5. PROBLEMS FACED WHILE SURVEYING: ............................................................................................... 8
6. RESULTS: ................................................................................................................................................................ 8
7. LEADS GENERATED: ....................................................................................................................................... 10
8. SUGGESTIONS: .................................................................................................................................................. 12
9. Appendix .................................................................................................................................................................. 14
9.1 Questionnaire attached ............................................................................................................................ 14
9.2 Answered questionnaires ........................................................................................................................ 15
1. INTRODUCTION
1.2 Vision
To be a World Class Energy Company known for caring and delighting the customers
with high-quality products and innovative services across domestic and international
markets with aggressive growth and delivering superior financial performance. The
Company will be a model of excellence in meeting social commitment, environment,
health and safety norms and in employee welfare and relations.
1.3 Mission
"HPCL, along with its joint ventures, will be a fully integrated company in the
hydrocarbons sector of exploration and production, refining and marketing; focusing on
enhancement of productivity, quality and profitability; caring for customers and
employees; caring for environment protection and cultural heritage.
It will also attain scale dimensions by diversifying into other energy-related fields and by
taking up transnational operations."
1.4 Values
Building an ‘Enabling Culture’ is the key to realize our vision and fulfil our mission. Our
cultural motto ‘HP FIRST’ instills pre-eminence of HPCL’s vision and mission above all
else and guides in all our professional endeavours and engagements. ‘HP FIRST’ also
crystallizes our corporate values as an acronym where ‘F’ stands for Free, Frank and
Fair, ‘I’ stands for Integrity, ‘R’ for Respect for Individual, ‘S’ for Sustainable Performance
and ‘T’ for Team Spirit.
Our corporate values define who we are as well as who we will continue to be. Nothing
less will do.
2. PRODUCTS
2.1 CNG
Compressed Natural Gas is an eco - friendly fuel and can be used in both petrol and
diesel driven vehicles. Currently available at select retail outlets in Delhi, Mumbai, Pune,
Indore, Gwalior and Hyderabad its availability is being gradually increased to keep pace
with the growing number of discerning consumers who are switching to CNG. Vehicles
using CNG are fitted with a special kit for the purpose and require no mechanical change.
2.2 LPG
Liquefied Petroleum Gas (LPG) is identified as one of the alternative fuels to the regular
liquid petroleum fuels as it has added environmental benefits. LPG for Automobiles (Auto
LPG) is used internationally with proven success as an effective fuel. This has been in
extensive use in countries like Italy, Japan, Australia, Netherlands, and Korea etc. for a
long time. It is approved for use as Auto fuel by the Government of India and the required
orders, amendments and codes have been issued by the respective authorities. High
Octane Number (88) and Low Evaporation residue of Auto LPG ensures high efficiency
when LPG is used as a fuel in internal combustion engines. Low volumes of vehicular
exhausts like CO, SOx, NOx, Benzene and Particulates etc. make Auto LPG eco -
friendly, resulting in improving the general air quality.
2.3 Kerosene
Public Distribution System (PDS) Kerosene is an allocated and subsidized product. It is
distributed to the customers through the Public Distribution System (PDS) network
(Ration shop) of the State Governments / Union Territories (UT).
2.4 Petrol
Petrol, or Gasoline, in technical terms, is called Motor Spirit (MS), or Automotive
Gasoline. Petrol is generally produced by refineries by the fractional distillation of crude
oil, with further treatment including the addition of multifunction additives to enhance its
Octane rating (number) and other properties. Technically, it is a complex mixture of
hydrocarbons that are balanced to deliver a satisfactory engine performance over a wide
range of operating conditions. A key parameter for Petrol is the octane number, which is
a measure of its resistance to knock. In a spark-ignition engine, the air-fuel mixture gets
heated during the compression cycle and is thereafter triggered by the spark plug to burn
rapidly, as per the engine design requirements. Higher compression ratios enable the
engine to extract more mechanical energy from a given mass of air-fuel mixture, leading
to higher thermal efficiency.
2.5 Diesel
Diesel, also called petrodiesel in Technical Terms, is called High Speed Diesel (HSD)
which is also produced from the fractional distillation of crude oil between 200 °C and
400 °C resulting in a mixture of carbon chains and is composed of saturated
hydrocarbons (primarily paraffins including n, iso, and cycloparaffins), and aromatic
hydrocarbons (including naphthalenes and alkylbenzenes). The primary measure of
Diesel fuel quality is its cetane number. A higher cetane number indicates that the fuel
ignites more readily when sprayed into hot compressed air. Diesel engines do not use
high-voltage spark ignition (spark plugs) that is burning the fuel in more air than is
required for the chemical reaction. They thus use less fuel. Because they have high
compression ratios and no throttle, diesel engines are more efficient than many spark-
ignited engines.
Engines running on diesel also provide more torque and are less likely to stall as they
are controlled by a mechanical or electronic governor. Their greater economy is due to
the higher energy content per-litre of diesel fuel and the intrinsic efficiency of the diesel
engine. However, the increased compression ratios mean there are increased emissions
of oxides of nitrogen (NOx) from diesel engines, which become the main drawback of
diesel versus gasoline engines. Diesel fuel is widely used in most types of transportation
(Heavy Commercial Vehicles, Buses), exclusively for the combustion engines of self-
powered rail vehicles (locomotives and railcars), Tractors, Power Generation, Pump sets
and in various other diesel engine driven applications.
A disadvantage of diesel as a vehicle fuel in cold climates, compared to gasoline or other
petroleum-derived fuels, is that its viscosity increases quickly as the fuel's temperature
decreases, turning into a non-flowing gel, at temperatures as high as −19 °C or −15 °C,
which cannot be pumped by regular fuel pumps thus starting a diesel engine in very cold
weather may pose considerable difficulties.
2.6 Naphtha
Petroleum naphtha is an intermediate hydrocarbon liquid stream derived from the
refining of crude oil with CAS-no 64742-48-9. It is most usually desulfurized and then
catalytically reformed, which rearranges or restructures the hydrocarbon molecules in
the naphtha as well as breaking some of the molecules into smaller molecules to produce
a high-octane component of gasoline (or petrol).
There are hundreds of different petroleum crude oil sources worldwide, and each crude
oil has its own unique composition or assay. There are also hundreds of petroleum
refineries worldwide, and each of them is designed to process either a specific crude oil
or particular types of crude oils. Naphtha is a general term, as each refinery produces its
naphthas with their own unique initial and final boiling points and other physical and
compositional characteristics. Naphthas may also be produced from other material such
as coal tar, shale deposits, tar sands, and the destructive distillation of wood.
2.8 Bitumen
Asphalt, also known as bitumen is a sticky, black, and highly viscous liquid or semi-solid
form of petroleum. It may be found in natural deposits or may be a refined product, and
is classed as a pitch. Before the 20th century, the term asphaltum was also used. The
primary use (70%) of asphalt is in road construction, where it is used as the glue or binder
mixed with aggregate particles to create asphalt concrete. Its other main uses are for
bituminous waterproofing products, including the production of roofing felt and for sealing
flat roofs. The terms "asphalt" and "bitumen" are often used interchangeably to mean
both natural and manufactured forms of the substance. In American English, "asphalt"
(or "asphalt cement") is commonly used for a refined residue from the distillation process
of selected crude oils. Outside the United States, the product is often called "bitumen",
and geologists worldwide usually prefer the term for the naturally occurring variety.
Common colloquial usage often refers to various forms of asphalt as "tar", as in the name
of the La Brea Tar Pits.
3. EXECUTIVE SUMMARY
The purpose of our project is to find out about the usage pattern of various petroleum
products in different types of industries. Through this project, we will be able to understand
the energy pattern of multiple locations, about customers and their preferences and also
get to know about the approximate amount of material used in a different type of industries.
For this, we contacted purchase managers of many companies and got a survey filled from
them. The survey contained 20 questions relating to the petroleum product they use, how
much they use it on a monthly basis, the company and depot they purchase the material
from, the reason for selecting that company or that depot only and many more. We also
enquired about their expectations out of an ideal supplier as well as the facilities they
receive and expect from a supplier. After analyzing the survey, we concluded that the most
used product is Diesel. The usage for diesel vary from company to company, but most are
using it to power their generators in case of power loss. Thus we came across another
interesting observation that the usage of diesel is lesser in winters and more in summers.
We also came across instances where companies are switching from Diesel to PNG
pipeline because of price variation and availability. Also, 47% of respondents were taking
material from Indian Oil Corporation Limited.
4. Research
Initially, the survey collected were of very small companies that had usage close to 200-
500 litres as we were not able to target the correct customer group. Then we refocused,
and with the help of a manager, we visited four companies of Gurgaon that were existing
customers to collect the data. After that, we started to target customers better and focused
on getting existing and prospective customers. We tried surveying in the district of Delhi,
Noida, Greater Noida, Gurgaon, Rewari, Mewat, Jhajjar, Palwal, Rohtak, Faridabad,
Bulandshahar, and Sonipat.
6. RESULTS:
We were able to get a total of 46 responses. Out of those the most used product by the
companies is found to be diesel (38) followed by bitumen (5) and then petrol (2) and others
According to
requirement
81%
47% of the respondents were taking supplies from Indian Oil Corporation Limited, 30% from
Hindustan Petroleum Corporation Limited, 23% from Bharat Petroleum Corporation limited
and 10% from Reliance industries.
IOCL
HPCL
BPCL
Reliance
0 5 10 15 20 25
58.69% of the respondents answered that they were not getting any special facilities like
bulk discounts or free servicing. For 80.43% of the respondents, the material is delivered at
their premises by either the company or transporters.
52.1% of the respondents pay in advance for the material, 32.6% pay in credit and 8.6%
pay instantly when buying the material.
PAYMENT METHOD
30
25
20
15
10
0
Advanced Credit Instant payment
In Bulandshahar, the most common reply we received was that they have shifted from diesel
to PNG pipelines as they were cheaper than diesel.
Expectations for an ideal supplier as stated by many companies are better and competitive
rates, no leakages, good quality, timely delivery and timely training for quality check.
The general observation was that the customers using 12kl per month were reluctant to
change from their existing suppliers because they felt that for changing from one supplier
to another would require a lot of paperwork, which is a misconception. HPCL can improve
its facilities and inform these prospective customers that for switching suppliers, the amount
of paperwork is not much.
Also, some customers buying amounts up to 30-40kl of diesel are buying from Petrol Pumps
in spite of purchasing such a large amount of diesel they go for petrol pump because of the
availability of credit purchase. The company can think of a solution to this. They could offer
some additional services to compensate for advance payment to keep their customers
delighted.
7. LEADS GENERATED:
The following list of companies was willing to have a word with a sales officer. Some of
them were ready to purchase from HPCL and wanted to know the details about the offered
prices and facilities.
Paradise plastic enterprise limited
Address: D-1, site -5 UPSIDC Surajpur industrial area Kasn, Greater Noida 201306
They are currently taking from BPCL, and their need is between 24kl to 36 kl diesel.
The person contacted: Sonu Sharma
Contact number: +919560399619
Vishal Pipes
Address: Plot no. A-17 Sikandrabad industrial area, Bulandshahar
Requirement: 12 kl diesel (1 tank) in 2 months
Currently taking from IOCL
The person contacted: Asha
Number: 9910894200
R.K.POTTERIES
Address: Khasra No. 618 & 619, Junction Road, Mozpur, BULANDSHAHAR, Bulandshahr,
BULANDSHAHAR, Pin: 203131
Had shifted from diesel to PNG 2 years back now ready to use diesel if prices are
comparable
Number: 098971 78122
8. SUGGESTIONS:
KRC Infra
Address: 101, K.R. chambers, Rasulpur Road, Palwal 121102
Requirement: Diesel usage of 70-80 lakhs per month
Currently taking from Petrol pumps
The person contacted: Anil
Number: 8053535777
9. Appendix
Industry type:
6. When do you prefer to order at the time of need or when the prices are low?
8. After how many days of placing the order is the material delivered?
9. What is the source from which you buy this material and Why?
A) BPCL
B) HPCL
C) IOCL
D) ONGC
E) Reliance industries
F) Local vendors:_______________________________
G) Others:____________
12. Why do you order from that place (depot/ location) only?
13. What are the facilities that you get from the company you are buying from
14. Is the material delivered to you, or do you send your own vehicles? Who bears the
delivery charges?
15. How do you check the quality of the product supplied to you? Have you been trained by
your supplier for the same?
16. In case of loss, damage shortage or deterioration what compensation do you get from
the company
17. How would you rate your experience of buying from that company on a scale of 1 to 5?
One being extremely dissatisfied to five being extremely satisfied
18. Who decides that the product needs to be ordered? The quantity of the product and from
where to order, these decisions are taken by who all?