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INTRODUCTION

Operations management is understood as the process whereby resources or inputs are converted into more useful products. A petrochemical industry basically converts petroleum and natural gas in useful products. Petroleum refinery use crude petroleum as a raw material and converts it into different products like petrol, kerosene, diesel, low-density oils, hydrocarbons like propane and propylene, butane and butylene, pentane, hexane, toluene, benzene, and other products like tar, lubricants base, etc.

HPCL REFINERY

HPCL COMPANY AND OPERATIONS

2.1 PROFILE

Name Incorporation Constitution Sector Industry Activities

: Hindustan Petroleum Corporation Limited (HPCL) : 1974 : Public Limited Company : Petroleum Refinery : Petroleum : Bitumen, LPG, CNG, and downstream petroleum products.

2.2 BACKGROUND OF COMPANY AND OPERATIONS

HPCL is the second largest player in Indian Oil sector and in highly competitive lubricants market. It was formed in 1974 on nationalization of ESSO India operations. HPCL has two refineries producing a wide variety of petroleum products-one in Mumbai (West Coast) and the other in Visakhapatnam (East Coast). The HPCL refinery in Mumbai is situated in Mahul, west coast. It is in an M.I.D.C. area, which also has other big industries like Indian Oil Corporation limited (IOCL),HPCL Corporation limited (HPCL), Tata power plant etc. The Corporation also holds major equity in Mangalore Refinery and Petrochemicals Limited, and is proposing to set up a refinery in the state of Punjab.

2.3 TYPE OF INDUSTRY

HPCL refinery can be classified as an analytical type of industry. It is petrochemical industry i.e. broadly speaking chemical engineering industry. Petroleum refinery is a production industry where raw material crude petroleum is transformed into various useful products using some chemical processes.

2.4 CAPACITY
HPCL Mumbai refinery has a capacity 5.5MMPTA.HPCL Mumbai is operating one of the largest lube oil refinery in the country which has a capacity of 335TMT. This Lube Refinery accounts for over 40% of the India's total Lube Base Oil production. The refining capacity steadily increased from 5.5 million tonnes in 1984/85 to 13.70 million metric tonnes (MMT) presently. According to Auto Fuel Policy, EURO-IV norms are to be followed in metro cities by 2010.To supply it in future additional capacity planning is being done. Diesel hydro treating (DHT) of about 2.2MMTPA will be introduced in HPCL. Majority of EURO-IV HSD will be produced in HPCL, Mumbai.

2.5 LOCATION SELECTION CRITERIA

Oil Refineries process millions of gallons of oil that have been drilled from the Earths crust. Choosing the location of an oil refinery is not an easy task because a number of environmental and safety concerns need to be taken into account. India does not have high crude oil reserves, and hence it depends totally on import of petroleum crude oil. Gulf countries are the main suppliers to India. Transportations and refining costs are very high for any refinery and hence these factors take priority in considering plant location.

Refinery (west coast) Mumbai.

Oil Refineries are often located on the coast and away from busy cities. When choosing the location for an oil refinery, the following factors need to be taken into consideration: Coast: HPCL is located at its Chembur in Mumbai and Vizag in Andhra Pradesh because of the proximity of sea routes from the plant location. As for transportation purpose, the

raw material used in the production in HPCL i.e. crude oil can be easily transported via the sea routes. There is a rail route specially built for transportation of coal, from vadala to refinery area. Almost all oil refineries like HPCL, IOCL are situated at the Mahul gaon location at Chembur in Mumbai. HPCL petroleum refinery is on Mumbai west coast because generally refining is carried on along the coast, where low cost water transportation can be used. Transportation: The oil refinery must be near to rail, road or sea links and close to the site the oil has been drilled. HPCL has port near to it. Available workforce: It may be tempting to build an oil refinery in a remote location where no people or animals can be affected. However, a refinery needs workers living relatively nearby. Even though HPCL refinery is far from residential area transport facilities from workers quarters is available. Available customers: Oil refineries need to be within easy reach of customers. It is essential to have good transport links. Some refineries are pipelines as a method of transportation. Air pollution: Although industries are regulated by strict controls regarding the amount of pollution they release into the atmosphere, oil refineries emit number of polluting gases. To reduce the effects of air pollution on people, refineries should be built away from the built-up areas. Care should be also taken to position the refinery so that prevailing winds do not carry pollution in the direction of towns and cities. One can see boards specifying height from sea level in entire HPCL refinery area. Water pollution: Some refineries use water from local rivers and streams for cooling purposes. This means that the water is pumped out of the river or stream, circulated around a cooling tower and returned to the river at a higher temperature. This increase in water temperature is called thermal pollution. Some species of fish are unable to survive in these conditions. Waste products from refinery may also be washed into local rivers and streams. Noise Pollution: Machinery that operates 24 hours a day can HPCLe a lot of noise for people living nearby. Lorries and trains that come to pick up refined products also contribute to the noise.

Special sites of interest: Like other buildings, oil refineries must avoid areas of special scientific interests. These can include regions where rare animals are being protected.

Top view of HPCL refinery, Mahul Mumbai on Google earth

2.6 FUNCTIONAL GROUPS

HPCL refinery is spread over a very large area. It has many plants within its campus area. So management of such a big organization becomes very challenging. HPCL has managed it very well till now by organizing itself into appropriate functional departments. The various departments are as under: Human resource: HPCL HR department has taken number of HR initiatives to HPCLe the Corporation a great place to work. The Balanced Scorecard tool to set up performance targets and evaluation, Competency Mapping and Development Centers to

enhance employee capabilities. Six Sigma for quality improvement have yielded rich dividends and are being constantly upgraded to higher levels of sophistication. A significant HR event of the period was the conduct of an International Program on Emotional Intelligence in association with TISS wherein a large number of professionals and students participated and appreciated the program. The Corporation continues to give utmost importance to training by nominating employees both for in-house and external programs. HPCL has bagged DMA Erehwon Innovative HR Award because it has successfully taken an HR idea from concept to reality and has sustained results. They also got Amity HR Excellence Award for achieving enviable position of one of the best and most admired companies due to innovative strategies for Human Resource Management and Development Finance: The finance function involves keeping record of financial data related to fixed assets, intangible assets, which forms most important part of a refinery operation. Additionally it also monitors the construction period expenses on projects occurring on monthly and quarterly basis and keeps record of other important financial depreciation, impairment of assets, foreign transactions, investments, inventories, duties on bonded stocks, Grants provision, exploration and production expenses, employee benefit, sales of products, research and development., Taxes on income, contingent liabilities and commitment capitals, accounting, classification of expenditure and income.etc. Marketing: LPG Marketing in India has traditionally been confined to domestic & nondomestic consumers in urban/semi urban markets and all efforts till date have been in meeting the demands of these markets. With the saturation of urban and semi urban markets and the adequate availability of LPG in India, there is a need to look for alternative markets. Rural India presents a big opportunity for growth of LPG in India. HPCL is a major bunker fuel supplier to the ships (vessels) at major Indian ports viz Calcutta, Haldia, Visakhapatnam, Kakinada, Chennai, Cochin, Mangalore, Goa-Vasco, Mumbai, Kandla. HPCL also supplies other petrochemicals like hydrocarbons, lube base oils, tar, petrol, and diesel, ATF etc. Hence it has very good chain of distributors.

2.7 PRODUCTION STRATEGY:

A very high priority is attached by the Government of India to conservation of petroleum products in view of the need to reduce gap between demand of petroleum products and indigenous supply of crude oil. Sporadic tension in the Middle East region that is the main source of our oil imports as well as a heavy import bill is a potent reason for continued emphasis on conservation and sparing use of petroleum products. Accordingly, strategic storage of crude oil becomes very important. HPCL, Mumbai plant has high capacity tanks for storage of crude oil as well as finished products. Every shipment of raw materials is after 15 days. But continuous production is carried out to HPCLe-to-stock the products. HPCL has trying to do backward integration by taking part in exploration and production process in country and outside country in joint ventures with some of the big companies. But more emphasize is given to production of high products length which are kept in stocks. HPCL, in partnership with consortium, currently has 20 E & P blocks in India and two overseas, including a service contract for the western offshore marginal fields under cluster-7 near Mumbai High. Its upstream JVC Prize Petroleum Company, which was formed in 1998, currently operates marginal fields in Gujarat and Mumbai High and onshore blocks in Gujarat and Madhya Pradesh. HPCL has been participating in the new exploration licensing policys (NELP) fourth round. During NELP-VI, HPCL participated along with major operators like ONGC, OIL, GSPC and GAIL. The Centre has awarded 15 blocks in which HPCLs participation interest ranges from 10 to 20%. The 15 blocks include 11 deepwater ones in Krishna Godavari and Cauvery basins, two shallow water blocks in Mumbai High and two onshore blocks in Rajasthan.

2.8 PLANT LAYOUT:

DHDS CPP GF FR
B H

LR

OMS

QM

TA F&G

LPG

LAYOUT OF HPCL REFINERY, MUMBAI DHPS : De-hydrocarbonaton de-sulphurisation LR : Lube Refinery CPP : Captive Power Plant GF : Green Fuel FR : Fuel Refinery OMS : Oil Management & Supply QM : Quality management F&G : Fire and Gas TA : Tank Area LPG : LPG Storage and Supply

GHASLET

GHASLET

STORAGE AREA OVERVIEW

SOLVENT

CRUDE OIL

STORAGE AREA OVERVIEW

2.9 PROCESS LAYOUT: PROCESSES IN HPCL: There are many different units in petroleum refineries, for carrying out different processes like distillation, separation, filteration etc. Depending on the products produced by the refineries process HPCL layout in a such way that a) There be very short distance between reactors or units of plant that has to be followed according to requirement. b) Less piping and cooling, heating expenses. c) Pumps, valves and other materials required between successive processes should be limited and controllable in number. d) Waiting time for the next process should be minimum. e) Very little manual labor is required and automation and instrumentation can be done effectively. f) Planning and scheduling of specific product can be done accurately and storage and distribution should be properly maintained.

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2.10 PRODUCTION PLANNING AND SCHEDULING

The main objective of this work is to discuss planning and scheduling applications for refinery operations in HPCL, Mumbai. Major Steps Involved In Planning: STEP 1: Nonlinear planning model for refinery production is developed. The model represents a general refinery topology and allows the implementation of nonlinear process models as well as blending relations. STEP 2: Optimization model is developed considering the market limitations for each oil derivative usually supplied by the refinery. The optimization model defines all operating points, thus increasing the production of more valuable products, while satisfying all specification constraints. Major Steps Involved In Scheduling: STEP 1: To overcome scheduling problems in oil refineries mixed integer optimization models are formulated that rely on both continuous and discrete time representations. This model takes care of the problem of crude oil inventory management that involves the optimal operation of crude oil unloading from pipelines, transfer to storage tanks and the charging schedule for each crude oil distillation unit. STEP 2: Development and solution of optimization models for short-term scheduling of a set of operations that includes: product receiving from processing units, storage and inventory management in intermediate tanks, blending in order to attend oil specifications and demands, and transport sequencing in oil pipelines.

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2.11 MATERIALS MANAGEMENT HPCL has emerged a front-runner, in providing excellent services to the customers, and also delivering state - of - art - products. Various products of HPCL are as under: Bitumen: Bitumen is one such product being manufactured and marketed at HPCL refineries at Mumbai. They produce and market all the three grades of bitumen viz., 80/100, 60/70 & 30/40. The quality control measures are observed very stringently, and the bitumen is tested as per the requirement of the BIS. HPCL has made a foray into newer products such as rubberized and polymerized bitumen. Fuels: HPCL produces variety of fuels. Some of them are listed below. o Petrol (MS), EURO-II, EURO-III o High Speed Diesel (HSD) o Furnace Oil (FO) o Light Diesel Oil (LDO) o Low Sulphur Heavy Stock (LSHS) o Naphtha o Lube base oils o ATF Marine Bunker Fuels: The bunker fuels offered are: o Heavy oil 180 cst (fuel oil: FO) o Marine diesel oil (light diesel oil: LDO) o Marine gas oil (high flash diesel: HFHSD) Marine Lubes: HPCL is the Marine Lube partner of Total Lubricants, France and manufactures TOTAL brand primary marine Lube grades. Secondary grades are of HPCL formulations and are certified by TOTAL as equivalents. Bunker lubes are supplied duty free & duty paid for

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international and coastal - run vessels respectively. ELF marine lubes offered are: o Atlanta Marine D3005 o Talusia HR 70 o Disola M 3015 & M 4015 o Aurelia 3030 & 4030 o Aurelia XT 4040 & XT 4055 Special Products: The products include: o Hexane o Propylene o Jute Batch Oil o Solvent 1425 o Turpentine Oil (MTO 2445) o Carbon Black Feed Stock (CBFS) o Molten Sulphur LPG & ATF: LPG is the very important product produced by HPCL.HP gas has large customer base and very large distribution network. LPG is sold at very subsidized rate that is loss for the company. But it recovers that loss by selling ATF at very high margin. LUBE REFINERY OF HPCL

HYDROCARBONS: HPCL also produces solvents like propane, hexane, benzene, toluene, and many other hydrocarbons, which are separated by distillation.

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ENTERPRISE RESOURCE PLANNING AT HPCL

To strengthen business management and improve customer service, HPCL implemented an advanced enterprise resource planning (ERP) system based on range of JD Edwards Enterprise One application from Oracle.

The ERP system was implemented at more than 430 locations across India from 2003 to 2005, and is used by over 2,000 employees. HPCL is continuously looking at innovative ways of enhancing customer satisfaction by leveraging technology.

The real time, on-line availability of information from across all the geographically spread locations of the corporation on a centralized system, has enabled HPCL to improve efficiencies in the Ares of tracking and monitoring customer receivables, credit management, inventory management and provide enhanced service to customers and other stake holders.

Upgrading to an integrated business management platform gave HPCL an enterprise-wide view of its finance, manufacturing human resources, and sales and distribution processes. Online access to information ensured managers could keep track of procurement, inventory, production schedules, and customer orders.

The company also standardized business practices, ensuring process consistency across multiple locations. A document archival system is an integral part of the ERP system, allowing HPCL to store invoices, purchase orders, checks, and other material. This ensures the company can locate critical documents quickly and efficiently.

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3.1 BOOSTING SERVICE TO CUSTOMERS AND VENDORS In keeping with HPCLs aim of enhancing customer satisfaction, the company designed portals that draw on information gathered by its ERP system to provide clients with dispatch details, account statements, and a history of sales transactions completed over the past three years. Customers log in to the portal using a secure user ID and password. Separate portals for aviation, direct sales, LPG, and retail customers were established. HPCL also developed an electronic payment system to promote smoother and faster payments to its vendors, contractors, transporters, and other service providers. The system is integrated with the companys banking institution, enabling payment information to be seamlessly transmitted between the two organizations and ensuring timely payment to suppliers.

3.2 STREAMLINING DISTRIBUTION WORKFLOWS HPCL realized another efficiency improvement when it streamlined its distribution processes and implemented new notification alerts. For example, the companys dealers and distributors now receive e-mails and text messages via their cell phones informing them of impending shipments. This information is sent to dealers and distributors immediately following the generation of an invoice, enabling them to keep track of their orders.

3.3 TRAINING ENCOURAGES GREATER USER ACCEPTANCE A change management program was established to facilitate a smooth transition to the new system for employees. Comprehensive training was provided to staff during the implementation, followed by refresher courses post-deployment. Competency development programs for specific user groups such as regional managers, finance staff, heads of terminal/depot/LPG plants, sales officers, project engineers, HR officers and clerical staff are also conducted regularly.

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HPCL organizes virtual training sessions from time to time to allow staff in remote locations to learn about new system features. This reduces travel time and cost for participants and enables quick dissemination of new information to users. A state-of-the-art data center at HPCLs head office at Mumbai houses powerful IBM enterprise servers that run the database and applications. The company uses a virtual private network (VPN), dedicated telephone lines, very small aperture terminals (VSATs),

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QUALITY MANAGEMENT

Quality refers to the sum of the attributes of properties that describe a product. In petrochemical industry quality is generally expressed in terms of specific product characteristics such as color, specific gravity, viscosity etc. HPCL have latest quality control technology that is mandatory for improvement of refinery throughput, quality and yield. Its quality control department has been successful in carrying out improvement in crude oil viscosity, API gravity, and reduction /removal of sulfur, increase crude distillation yield and overcome other operational problems from time to time using upgraded technologies in petroleum refineries.

4.1 QUALITY CONTROL & MAINTENANCE Quality control is achieved in HPCL by following ways: 1) All material supplies are affected from approved suppliers and manufactures only. 2) All items procured are inspected /tested. 3) Sampling of the products is done thrice a day and analysis at each stage is carried out. Strict quality control is ensured. 4) Stage wise inspection and certification of jobs by inspectors. 5) In HPCL highly experienced and higly skilled craftsmen handle jobs. Prequalified and highly skilled Engineers inspect quality departments. Even refinery workers, welders etc are tested and certified for job. Maintenance plays a crucial role in the production process in the Refineries / Petrochemical plants. A plant may be regarded as successful when it operates without interruptions, which can however be achieved only when its facilities are in perfect working order at all times. The strategic importance of maintenance increases with increasing sophistication. The overall objective is to maximize production output at minimum total cost.

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4.2 ASSET INTEGRITY MANAGEMENT (AIM) This type of program involves world-class standards of inspection and maintenance of refinery facilities and pipelines to ensure the uninterrupted, reliable and efficient operation. This program, which utilizes advanced technologies and methodologies, is vital to minimize the risks and vulnerabilities of large scale petroleum operations, protect the safety of the workforce and neighboring population, and to maximize energy security for India. HPCL will be adopting it in near future.

4.3

HIGH

TECH

INFRASTRUCTURE

AND

STRINGENT

QUALITY

CONTROL HP the second largest integrated oil company of India has 40 well spread out bottling plants and 2 tap off points on Jamnagar Loni LPG pipeline of GAIL with online automatic quality control equipment ensures total quality checks of cylinders at bottling plants. These equipments are upgraded from time to time.

4.4 FULLY AUTOMATION HPCL has adopted a strategy of complex pipelines so as to decrease the idle times of plants and machineries. It is highly automated. Controlling of process is done from control rooms of HPCL. HPCL have 20 electronic carousel of automatic type which fills cylinders automatically basis. Filling of cylinders are interlocked in the system.

4.5 IMPORT AND STORAGE FACILITIES: HPCL have LPG storage facility of 65000 tons of LPG bottling plants and import terminals. Storage facilities of three types: 1) Above grounds bullets of capacity 50 MT TO 150 MT each.

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2) Spheres of capacity 600 MT TO 1400 MT each. 3) Mounded storage of capacity 200 MT to 1000 MT each.

4.6 QUALITY ASSURANCE Refinery crude processing is based on crude with all impurities as input. Step by step it tries to reduce impurities by changing it to less harmful component or remove after converting to separable component. Processes like desulfurization, hydrogenation, hydro cracking etc. are used to achieve this.

1) Viscosity Viscosity reduction is achieved by removing impurities that contributes to higher viscosity, which includes polycyclic aromatics. Reduction of viscosity is carried out using some chemical processing which enables more rapid and uniform feedstock management, improved heat transfer, faster mixing and shorter residence time ensuring consistent quality.

2) API Gravity API gravity is the most frequently used measure to estimate the quality of a crude oil. It is one of the parameters focused for determining the price of crude oil, the thickness of oil is reduced and fluidity is increased.

3) Sulphur De-sulphurization unit in HPCL removes sulfur with complex molecules selectively from crude oil. These are normally high boiling sulfur compounds, i.e. boiling at 565oC and ends up partly in residue and gas oils. Lower boiling sulfur compounds are separated and treated. Removal of sulfur from crude is mainly done in gaseous form. Quality control and quality assurance both are very important aspects of quality management in refineries. It helps reduce production cost and increase

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productivity. At the same time quality is the main weapon in competition. HPCL has high customer loyalty due to its high quality products.

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WORK MEASUREMENT

Work measurement is a process of establishing a time that a given task would take when performed by a qualified worker working at a defined level of performance.

5.1 WORK MEASUREMENT: Work measurement is the process of establishing the time that a given task would take when performed by a qualified worker working at a defined level of performance. A qualified worker is one who has acquired the skill, knowledge and other attributes to carry out the work in hand to satisfactory standards of quantity, quality and safety Work measurement also refers to the process of estimating the amount of worker time required to produce one unit of output. goal of work measurement is to develop labor standards that can be for planning and controlling operations. used

5.2 LABOR STANDARDS: A labor standard is the number of worker-minutes required to complete an element, operation, or product under ordinary operating conditions. Labor standards are used in: Cost estimation Pricing of products and services Incentive pay systems Capacity planning Production scheduling

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MARKETING.
HPCL 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 HPCLs 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.

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FUELLING AUTOMOTIVES.

Vehicle owners are always on the lookout for new offerings as well for tips & pointers to keep their vehicles in top shape. HPCL 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.

OFFERING WORLD CLASS FUELS.

Since 2002, HPCL 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 HPCL launched in line with global trends and keeping pace with the technological advancements in the automobile industry leading to introduction of new generation vehicles. Speed brand of petrol contains multi-functional fuel additives that prevent formation of harmful deposits and help clean existing deposits, thereby improving vehicle performance. SPEED has been the market leader in the branded fuels category. HPCL 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, HPCL also introduced Hi-Speed Diesel which is a blend of diesel and world-class multi-functional additive which uses the internationally renowned Green Burn Combustion Technology. This multi-functional additive enables the high performance vehicles to deliver their designed outputs by

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removing harmful deposits from all fuel metering systems and components. This also reduces particle level, black smoke and provides longer engine life.

SERVICING THE CUSTOMERS NEED. HPCL 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.HPCL 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.

HPCL share rewarding relationships with their customers and building loyalty has been a centre of focus with them. Recognizing the need of their customers to HPCLe 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.

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CARING FOR CUSTOMERS VEHICLE NEED.

HPCL 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. HPCL 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 HPCLS reach to the nook & corner of the country they are always near to their customers. PARTNERING HIGHWAY JOURNEY. On the highways, HPCL 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, 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.

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AUTO L.P.G.-THE INTRODUCTION OF LPG AS AUTO FUEL. With the menace of rising vehicular pollution, use of LPG as an auto fuel was proposed as a pollution abatement measure. LPG being a clean environmentally friendly fuel, will reduce air pollution to a great extent if the vehicles are fuelled with LPG.HPCL was the first Oil Company to take the initiative for setting up of an Auto LPG Dispensing Station (ALDS) and run vehicles on LPG as a pilot project in Delhi in October 1999.HPCL today have over 70 Auto LPG 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 atHPCL endeavours to build and manage a strong brand image reflectingHPCL'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.

HPCL 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,

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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.

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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 LPG 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

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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 2007-08, 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 state-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, LPG 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

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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, LPG 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 HPCLing 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,

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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. 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.

31

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

32

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 HPCLing 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.

33

OBJECTIVE OF THE STUDY.

THE OBJECTIVE OF THE STUDY FOR INDUTRIES ARE TO FIND OUT:

THE RELEVENCE OF LUBRICANTS USED IN ACCORDANCE WITH THE PRODUCT THAT IS BEING MANUFACTURED IN RESPECTIVE INDUSTRY. CONSUMPTION OF LUBRICANTS IN INDUSTRIES BASED ON PREFERENCES, PRIORITY AND INDIVIDUALITY. REQUIREMENT ON LUBRICANTS IN SPONGE IRON, STEEL AND ANCIALLARY INDUSTRIES. CONSUMPTION OF LUBRICANTS ACCORDING TO THEIR VISCOSITY GRADES.

34

THE OBJECTIVE OF THE STUDY FOR RETAIL(BAZAAR) MARKET ARE TO FIND OUT:
THE BRANDS WHICH ARE BEING SOLD IN THE MARKET OF THE ABOVE MENTIONED DISTRICTS. THE CATEGORY OF LUBRICANT IS HAVING WHICH IS HAVING MAXIMUM SALES. THE AWARENESS OF HPCLLUBRICANT AMONG RETAILERS AND CONSUMERS. THE PARAMETERS ON WHICH THE RETAILRES DECIDE FOR KEEPING A PARTICULAR BRAND OF LUBRICANT FOR SELLING. THE MAXIMUM SELLING PACK SIZES SOLD IN BO TH THE DISTRICTS.

35

2.2. SCOPES AND LIMITATIONS OF THE STUDY. SCOPES OF THE STUDY.

THE STUDY COVERS ALL THE SPONGE IRON,STEEL AND ANCIALLARY INDUSTRIES AS WELL AS ALL THE RETAILERS IN ANGUL AND DHANKANAL DISTRICT. THIS STUDY COVERS THE OPPORTUNITY ANALYSIS OF HPCLLUBRICANT OF BHARAT PETROLEUM IN SPONGE IRON, STEEL AND ANCIALLARY INDUSTRIES AS WELL AS IN RETAIL MARKET. THE STUDY ALSO COVERS ANALYSIS OF INDUSTRIES REQUIREMENT AND CONSUMPTION OF LUBRICANTS IN INDUSTRIES AS WELL AS AWARENESS, PERCEPTION AND CONSUMPTION OF LUBRICANTS BY COMMON ENDUSERS THROUGH RETAILERS.

THE SURVEY HAS PROVIDED THE COMPANY WITH MUCH NEW LUBRICANT 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.

FOR RETAIL MARKET THE SURVEY HAS ALSO PROVIDED THE COMPANY THE NUMBER OF DISTRIBUTORS IN EVERY BLOCK AS WELL AS THE DEMAND OF THE CUSTOMERS IN THOSE BLOCKS.

36

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 LIMITE DBY THE DEGREE OF AUTHENTICITY OF DATA COLLECTED AND SINCERITY AND HONESTY OF RESPONDENTS. AREA OF STUDY IS RESTRICTED TO ANGUL AND DHENKANAL DISTRICT OF ORISSA ONLY WHICH IS A MAJOR LIMITATION.THE NATIONAL SCENARIO MAY BE TOTALLY DIFFERENT FROM THE RESULTS OF THE ABOVE MENTIONED AREAS.

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37

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 ANGUL and DHENKANAL where the main target population was SPONGE IRON STEEL & ANILLARY INDUSTRIES and RETAIL SHOPS selling lubricants 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.

38

2.4. DATA ANALYSIS.

2.4. A. INDUSRTY (BUSINESS TO BUSINESS)
The project perambulates round the requirements of lubricants in sponge iron steel and ancillary industries. The main purpose of the study was to find out the requirements of various types of lubricants such as mainly HYDRAULIC OIL, GEAR OIL, GREASES, TURBINE OILS, TRANSFORMER OIL and other various types of oil. Through this analysis we were also able to find the priority of parameters which helps in HPCLing an industrys decision of buying lubricants 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 lubricants. The sample for the study of the above mentioned parameters were about 41 industries both from ANGUL and DHENKANAL.

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 lubricants 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 districts:

39

TOTAL MONTHLY CONSUMPTION.

90000 80000 70000 60000 50000 40000 30000 20000 10000 0

MNTHLY CONSUMPTION. TOTAL.

The following graph shows the district wise consumption of lubricants in respective industries:

TOTAL MONTHLY CONSUMPTION FOR ANGUL.

90000 80000 70000 60000 50000 40000 30000 20000 10000 0 82000 50000

598

200

1600

250

170

1700 2980

5250 1008

40

TOTAL MONTHLY CONSUMPTION FOR DHENKANAL(1).

7770 8000 6000 4000 2000 0 5250 4810 1725 6920 6140 1575 215 718 5419 45104620 25201887 4205 1728 672

TOTAL MONTHLY CONSUMPTION FOR DHENKANAL(2).

12000 12000 10000 8000 6000 4000 2000 0 10180 6960 2844 1140 2614 25 70 85 75 80 64 95 90 88 70 72

MOST CONSUMED BRANDS IN INDUSTRIES.

It is found that IOCLs lubricant brand SERVO has the high frequency of consumption when analysis is done on cumulative basis of both the districts. CASTROL comes second but this is only due to the fact that it is being consumed only in small scale industries like stone 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 lubricants in industries as per the frequency obtained from the analysis.

41

25 20 15 10 5 0

22

10 7

11 6

12

IOCL

OTHERS

BPCL

FRQUENCY OF BRANDS CONSUMED IN INDUSTRIES IN BOTH DISTRICTS.

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

6 6 5 4 3 2 1 0 IOCL BPCL HPCL 3 4

BALMEROL

OTHERS

BALMEROL

FRQUENCY OF BRANDS CONSUMED IN INDUSTRIES IN ANGUL.

CASTROL 3

HPCL

CONTD.........

42

16 16 14 12 10 8 6 4 2 0 IOCL 12

6 4

5 3

OTHERS

BPCL

FRQUENCY OF BRANDS CONSUMED IN INDUSTRIES IN DHENKANAL.

In DHENKANAL, it is evident that CASTROL has a good portion of the market share but it is due to the fact that most of its frequency is coming from that of in small scale industries like stone crushers. Here also IOCL have the majority of the frequency.

PARAMETERS WHICH DECIDES TO BUY LUBRICANTS.

From the research it was found that out of 41 industries(both small and large scale) 27 buy their required portion of lubricants on the basis of PRICE factor, similarly 23 does the same on SERVICE whereas 11 and 13 are for RECOMMENDATION and OTHERS respectively. The parameter OTHER includes sub-parameters like that of QUALITY, SATISFACTION etc.

The given graphical representation gives the best over view of the parameters on which all the industries in ANGUL and DHENKANAL decide their process of buying lubricants as for the purposes of consumptions and requirements:

BALMEROL

43

CASTROL

HPCL

30 20

27 23 11 13

10 0 SERVICE. RECOMMENDATION. OTHER. PRICE.

PARAMETERS .

So, finally it can be concluding that most of the industries (irrespective of their size-large, medium, small scale) mainly put emphasis on PRICE and SERVICE as their primary and RECOMMENDATION and OTHER factors as their secondary priority. For district wise analysis of the parameters for buying lubricants, it was found that most of the industries irrespective of their size mostly had PRICE, SERVICE and OTHER (SATISFACTION, QUALITY) as their primary priority and RECOMMENDATION as secondary priority. This mentioned prioritizations of parameters were found for ANGUL district. The following graph gives the best view of the parameters that the industries in ANGUL on an average takes for buying lubricants for the purpose of consumption and requirements of lubricants in their respective industries:

44

1 SERVICE. RECOMMENDATION. OTHER. 4 OTHER. PRICE.

PARAMETERS .

PARAMETERS FOR INDUSTRIES IN ANGUL. In case of industries in DHENKANAL district the scenario is a bit different than that off ANGUL district. Here the industries have a different priority in case of buying lubricants for their industries.

18 14 10

SERVICE.

PARAMETERS .

PARAMETERS FOR INDUSTRIES IN DHENKANAL 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.

RECOMMENDATION.

PRICE.

45

SOURCE OF LUBRICANTS.

On a total of the two districts it was found that on an average most of the industries get their portion of supplies from distributors, While the major half of the remaining portion get s from direct companies and the remaining small portion from other sources irrespective of distributors and direct company. The given graph best explains the process of sourcing lubricants by the industries in both the districts:

2 12

33

SOURCES. COMPANY.

SOURCES. DISTRIBUTOR

SOURCES. OTHER.

Out off all the industries in both the district 33 gets their portion of lubricants from distributors whereas 12 and 2 gets from direct company and other sources respectively. On a district wise analysis of sourcing of lubricants on average,it was more or less same for the industries in both the districts,depending on the total number of industries in each district(DHENKANAL have more industries as compared to that of ANGUL). The former graph expalins the sourcing of lubricants by industries in ANGUL district whereas the later GRAPH shows that of DHENKANAL district:

46

1 5

11

SOURCES. COMPANY.

SOURCES. DISTRIBUTOR

SOURCES. OTHER.

SOURCING OF LUBRICANTS BY INDUSTRIES IN ANGUL.

1 7

22

SOURCES. COMPANY.

SOURCES. DISTRIBUTOR

SOURCES. OTHER.

SOURCING OF LUBRICANTS BY INDUSTRIES IN DHANKANAL.

PERFORMANCE LEVEL MONITORING.

From the analysis of the performance level monitoring it was quite vivid that majority of the industries of both the districts never measures any performance level of lubricants in their respective industries after

47

consumption. It was clear that only 17 out of all the industries in both districts measures the level of performance of lubricants, whereas as a majority of 22 never measures and only a mere 4 out of all measure performance at times. The under given graph gives the clear picture of measurement of lubricants by all the industries in both the district:

25 21 20 16 15 10 5 0 YES. NO. PERFM LEVEL CHECKED. AT TIMES 4

PERFORMANCE LEVEL MONITORING.

But the scenario for the same was very significantly different when analysis was being made on the district level. The industries in ANGUL came out to be more aware of the monitoring performance level of lubricants where as for DHENKANAL the result shows no process of monitoring performance level. Out of all the industries in ANGUL almost 11 do monitor performance level of lubricants and 2 never does, whereas in DHENKANAL only 5 industries of the total do monitor but a majority of 19 of the total does not monitor and only a mere 9 of the total monitor performance level but that too at times and not on regular basis. The following graphical representation best gives the view of performance level monitoring in both the districts separately.

48

12 10 8 6 4

11

2 2 0 0 YES. NO. PERFM LEVEL CHECKED. AT TIMES

PERFORMANCE MONITORING OF INDUSTRIES IN ANGUL.

20 18 16 14 12 10 8 6 4 2 0 YES. 5

19

NO. PERFM LEVEL CHECKED.

AT TIMES

49

PERFORMANCE LEVEL MONITORING BY INDUSTRIES IN DHENKANAL.

The district wise requirement of lubricants for industries on an average is 11.47 kilolitres of lubricants in ANGUL; where as the average consumption of lubricants by industries in DHENKANAL was 2.65 kilolitres. The difference between the average consumption of lubricants in the two districts is due to the fact that DHENKANAL has more number of medium and small scale industries as compared to that of that of ANGUL.The consumption of lubricants such as hydraulic oil, turbine oil, axile oil, air lube transmission oil are also at much more level in ANGUL as compared to that of industries in DHENKANAL.

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50

2.4. B.RETAIL MARKET (BAZAAR).

The project perambulates round the bazaar potential assessment of lubricant for ANGUL and DHENKANL district. It was being assigned to carry out a survey of all the retailers in the two districts; to begin with I have classified the ANGUL district into eight BLOCKS /TEHSIL and DHENKANAL into nine BLOCK/TEHSIL.There were 78 and 56 retailers in both ANGUL and DHENKANAL district respectively. The analysis is based on certain parameters and the survey was carried out through questionnaire, (being the medium of exploration).

The total quantity of lubricant sold in ANGUL district is 62580 litres whereas the total for the same was 44725 litres in DHENKANAL district. This further counts for an average of 813 litres of lubricants products for retailers in ANGUL whereas the average sales of retailers in DHENAKANL are about 799 litres. HIGEST SELLING BRANDS.
120 100 80 60 40 20 0 MAK. SKF. VALVOLINE BHARAT. CASTROL. MANGOL. SONACHI VEEDOL. PENSOL. OTHER. SERVO. SHELL. HPCL. GULF MEF ELF. 12 59 44 39 26 28 43 31 15 16 5 5 10 100 108 76

TYPES OF LUBRICANT BRANDS SOLD BY THE RETAILERS.

FOR BOTH THE DISTRICTS.

The analysis clearly shows that CASTROL is the highest selling brand in all the markets of the two districts. Similarly SERVO comes second followed by HPCL as third and VEEDOL as fourth.PENSOL too have a

51

good portion market potential despite being a local brand.Various other local brands also have a good market composition. On comparing the figures districtwise also the results were same as above.The folloowing are the graphs of retailers for both ANGUL nad DHANKANAL district:

70 60 50 40 30 20 10 0

61

64

38 31 21 4 SERVO. MAK. 21 23 16 10 2 2 BHARAT. PENSOL. MEF 8 0 SONACHI 1 OTHER. 35 24 OTHER. SKF. 8 SKF. 30

VALVOLINE
19

ELF.

CASTROL.

SHELL.

TYPES OF LUBRICANT BRANDS SOLD BY THE RETAILERS.

FOR ANGUL DISTRICT.

45 40 35 30 25 20 15 10 5 0

40 36

22 16

MANGOL. 11

HPCL.

VEEDOL.

GULF

12 8 3 BHARAT. 5

SERVO.

MAK.

VALVOLINE

CASTROL.

TYPES OF LUBRICANT BRANDS SOLD BY THE RETAILERS.

MANGOL.

52

SONACHI

SHELL.

GULF

VEEDOL.

PENSOL.

HPCL.

MEF

ELF.

FOR DHENKANAL DISTRICT.

MAXIMUM SELLING CATEGORY.

The graph under given, gives a brief idea about the maximum selling lubricant category in both the districts:

1 1 64 81

59

MAX SELLING PRODUCT CATEGORY. 2-WH. MAX SELLING PRODUCT CATEGORY. 4-WH MAX SELLING PRODUCT CATEGORY. DIESEL MAX SELLING PRODUCT CATEGORY. COOLANT MAX SELLING PRODUCT CATEGORY. GREASE

The above graph clearly demonstrates that 2-wheeler lubricant products are the maximum selling product category for lubricants in both the districts.Out off all the retailers in both the district it is clear that 81 of the total are maximum selling 2-wh lubricant produtcs.2-wh lubricant products are then followed by diesel products counting to 64,which is due to the fact that both ANGUL nad DHENAKANL are industrial areas with a huge amount of heavy vehicles movement.Then comes the category of 4-wheelers amounting to 59 out of all the retailers.This scenario is same for both the districts when analysis is being made on district wise,where for ANGUL 40,39,37,1,1 are for 2-wh,diesel,4-wh,coolant and grease respectively and 38,22,19,0,0 for 2-wh,diesel,4-wh,coolant,grease respectively in DHENKANAL .

53

The following graphs give the vivid picture of the maximum selling product of lubricants in both the districts when analysis is being made district wise:

11 39 40

37

MAX SELLING PRODUCT CATEGORY. 2-WH. MAX SELLING PRODUCT CATEGORY. 4-WH MAX SELLING PRODUCT CATEGORY. DIESEL MAX SELLING PRODUCT CATEGORY. COOLANT MAX SELLING PRODUCT CATEGORY. GREASE

MAXIMUM SELLING PRODUCT CATEGORY IN ANGUL.

54

22 19

0 38

MAX SELLING PRODUCT CATEGORY. 2-WH. MAX SELLING PRODUCT CATEGORY. 4-WH MAX SELLING PRODUCT CATEGORY. DIESEL MAX SELLING PRODUCT CATEGORY. COOLANT MAX SELLING PRODUCT CATEGORY. GREASE

MAXIMUM SELLING PRODUCT CATEGORY FOR DHENKANAL.

MAXIMUM SELLING PACK SIZES.

Here we are having different category of pack sizes they are 0-1 litre, 1-5 litre, 7-20 litre, Barrels.
70 60 50 40 30 20 10 0 1 LT. 56 1-5LT. 55 7-20LT. 62 BARREL. 1

MOST SOLD PACK SIZES. Series1

MAXIMUM SELLING PACK SIZES FOR BOTH THE DISTRICT.

55

By doing this analysis we can conclude that the highest selling pack size of lubricant in both the districts is 7-20 litres, whereas under 1 litre pack is second and 1-5 litre pack is third in maximum selling pack sizes. While doing the analysis on district level, the results are quite different. For ANGUL 7-20 litre pack are still the majority selling pack sizes whereas uder 1 litre and 1-5 litre packs are coming together in second position and finally barrel with nominal sales. In case of DHENAKANL district packs of under-1 litre is maximum selling and 1-5 litres and 7-20 litres are second and third higest selling category respectively with 42 and 20 points.

The following graphs are for maximum selling pack sizes for both the districts individually:

45 40 35 30 25 20 15 10 5 0

1 LT. 28

1-5LT. 28

7-20LT. 39

BARREL. 1

MOST SOLD PACK SIZES. Series1

MAXIMUM SELLING PACK SIZES FOR ANGUL.

56

30 25 20 15 10 5 0 1 LT. 27 1-5LT. 24 7-20LT. 20 BARREL. 0

MOST SOLD PACK SIZES. Series1

MAXIMUM SELLING PACK SIZES FOR DHENAKANL.

PARAMETERS FOR SELECTING A BRAND FOR SELLING.

Here we are having several parameters that are preferred by the retailers while they keep the brand in their counters. The parameters are Price or MRP of the product, Profitability or Margin that is given by the company to the retailers, Market demand of the product, Payment term of the company to the retailers, Scheme or incentives that are given to the retailers for selling their brands and at the last but not the least quality of the product.

57

140 120 100 80 60 40 20 0

123 76 56 4 MARGIN. PRICE/M.R.P. DEMAND. 16 PYMT/CREDIT. 6 SCHMES/INCENTIVE. QUALITY 10 SATISFACTION.

PARAMETERS FOR SELECTING A BRAND FOR SELLING.

PARAMETERS FOR SELECTING A BRAND FOR SELLING .

From the above diagram only is clear that demand is the most important parameter which decides for a reatiler to keep a brand for the purpose of selling to their customer.After demand its margin that comes second and wuality as third parameter for the retailers.The scenario is same for the two districts when analysis is being done on individual district level.

The following are the graph represents the individual district wise parameter selection of brands for retailers:

58

80 70 60 50 40 30 20 10 0

73

35 4 MARGIN. PRICE/M.R.P. DEMAND. 14 23 4 SCHMES/INCENTIVE. QUALITY 2 SATISFACTION.

PARAMETERS FOR SELECTING A BRAND FOR SELLING.

ANGUL

50 45 40 35 30 25 20 15 10 5 0

PRICE/ M.R.P.

MARGI DEMAN PYMT/C SCHME QUALIT SATISFA N. D. REDIT. S/INCE Y CTION. NTIVE.

Series1

PARAMETERS FOR SELECTING A BRAND FOR SELLING. 37 47 2 2 30 8

DHENKANAL.

PYMT/CREDIT.

59

8 7 6 5 4 3 2 1 0 SERVO. 6

4 3 2 1 0 MAK.

4 3 2 1 0 0 PENSOL. MEF 0 BHARAT. 0 SONACHI 0 SKF. OTHER.

VALVOLINE

ELF.

CASTROL.

VEEDOL.

SHELL.

GULF

TYPES OF LUBRICANT BRANDS SOLD BY THE RETAILERS.

LUBRICANT BRANDS MOST SOLD BY THE RETAILERS.

FOR BANARPAL.
For Banarpal, the scenario is same as that of Angul where diesel vehicle products are the maximum selling lube products resulting the sale of 7-20 litre pack sizes, but in this market SERVO is the market leader in lubes.

0 1 6 3

MAX SELLING PRODUCT CATEGORY. 2-WH. MAX SELLING PRODUCT CATEGORY. 4-WH MAX SELLING PRODUCT CATEGORY. DIESEL MAX SELLING PRODUCT CATEGORY. COOLANT MAX SELLING PRODUCT CATEGORY. GREASE

MANGOL.

HPCL.

60

MAX SELLING PRODUCT CATEGORY.

5 5 4.5 4 3.5 3 2.5 2 1.5 1 0.5 0

1 0 1 LT. 1-5LT. 7-20LT. BARREL.

MOST SOLD PACK SIZES.

MOST SOLD PACK SIZES.

7 7 6 5 4 3 2 1 0

2 1 0 1 0 0 SATISFACTION. QUALITY

MARGIN.

PYMT/CREDIT.

PRICE/M.R.P.

DEMAND.

PARAMETERS FOR SELECTING A BRAND FOR SELLING.

PARAMETERS FOR SELECTING A BRAND FOR SELLING.

SCHMES/INCENTIVE.

61

10 9 8 7 6 5 4 3 2 1 0

9 7 7 5 3 2 0 MAK. SERVO. ELF. SHELL. GULF CASTROL. HPCL. VEEDOL. 2 2 2 0 VALVOLINE 0 0 PENSOL. MEF 0 BHARAT. 0 SONACHI 0 OTHER. SKF.

TYPES OF LUBRICANT BRANDS SOLD BY THE RETAILERS.

LUBRICANT BRANDS MOST SOLD BY THE RETAILERS.

FOR ANGUL BLOCK.

Angul block is the most interesting block where both 2-wh and diesel vehicle products are the maximum selling lubes products and resulting to the sales of 1-5 litres as the most sold. In this market both CASTROL and SERVO are the market leaders.

MANGOL.

62

0 12

12

MAX SELLING PRODUCT CATEGORY. 2-WH. MAX SELLING PRODUCT CATEGORY. 4-WH MAX SELLING PRODUCT CATEGORY. DIESEL MAX SELLING PRODUCT CATEGORY. COOLANT MAX SELLING PRODUCT CATEGORY. GREASE

MAX SELLING PRODUCT CATEGORY.

14 12 10 8 6 4 2 0 1 LT. 3

13

0 1-5LT. 7-20LT. BARREL.

MOST SOLD PACK SIZES.

MOST SOLD PACK SIZES.

63

18 16 14 12 10 8 6 4 2 0

17 12 8 3 4 1 MARGIN. PYMT/CREDIT. DEMAND. SCHMES/INCENTIVE. QUALITY 0 SATISFACTION.

PRICE/M.R.P. 18 16 14 12 10 8 6 4 2 0 17 17

PARAMETERS FOR SELECTING A BRAND FOR SELLING.

PARAMETERS FOR SELECTING A BRAND FOR SELLING.

11 7

12 8 4 1 VALVOLINE 2 8

7 4

3 0 BHARAT. SONACHI 0 OTHER. SKF.

0 SERVO. MAK. ELF. SHELL. GULF CASTROL. VEEDOL. HPCL.

MANGOL.

TYPES OF LUBRICANT BRANDS SOLD BY THE RETAILERS.

LUBRICANT BRANDS MOST SOLD BY THE RETAILERS.

For other markets like that of KISHORENAGAR and PALALAHADA are too small to perform the above analysis. The market potential are also too low here.

PENSOL.

MEF

64

DHANKANAL
For DHENKAANL to the district was divided into 9 blocks namely as HINDOL, ODAPADA, SADAR, DHENKANAL, KAHPCLHYANAGAR, BHUBAN, PARAJANG, KANKADAHAD and GANDIA.

FOR DHENKANAL.
In DHENKANAL also diesel vehicle lubes product are the most selling resulting further in the maximum sales of 1-5 litre pack sizes. Demand remains the main parameter for selecting a brand by the retailers for selling. Both SERVO and CASTROL are the MAXIMUM SOLD BRANDS. The under given graphs best shows the analysis:

0 8 6

MAX SELLING PRODUCT CATEGORY. 2-WH. MAX SELLING PRODUCT CATEGORY. 4-WH MAX SELLING PRODUCT CATEGORY. DIESEL MAX SELLING PRODUCT CATEGORY. COOLANT MAX SELLING PRODUCT CATEGORY. GREASE

MAX SELLING PRODUCT CATEGORY.

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9 9 8 7 6 5 4 3 2 1 0 1 LT. 1-5LT. 7-20LT. BARREL. MOST SOLD PACK SIZES. 0 4 7

MOST SOLD PACK SIZES.

12 12 10 8 6 4 2 0 8 8 3 0 MARGIN. PRICE/M.R.P. DEMAND. 0 PYMT/CREDIT. 1 SCHMES/INCENTIVE. SATISFACTION. QUALITY

PARAMETERS FOR SELECTING A BRAND FOR SELLING.

PARAMETERS FOR SELECTING A BRAND FOR SELLING.

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14 12 10 8 6 4 2 0 BHARAT. SERVO. MAK. ELF. SHELL. CASTROL. HPCL. VEEDOL. 4 5 4 4 2 1 8 8 6 3 4 1 3 3

12

MANGOL.

VALVOLINE

TYPES OF LUBRICANT BRANDS SOLD BY THE RETAILERS.

LUBRICANT BRANDS MOST SOLD BY THE RETAILERS.

FOR KAHPCLHYANAGAR.
In the market of kamkhyanagar, it is found that 2-wheel lubes product are maximum selling which results in the maximum sales of 1 litre packs. Castrol is the mostly sold brand among the shops in kaHPCLhyanagar.

4 3

0 9

MAX SELLING PRODUCT CATEGORY. 2-WH. MAX SELLING PRODUCT CATEGORY. 4-WH MAX SELLING PRODUCT CATEGORY. DIESEL MAX SELLING PRODUCT CATEGORY. COOLANT MAX SELLING PRODUCT CATEGORY. GREASE

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SONACHI

PENSOL.

OTHER.

GULF

MEF

SKF.

MAX SELLING PRODUCT CATEGORY.

8 8 7 6 5 4 3 2 1 0 1 LT. 1-5LT. 7-20LT. BARREL. MOST SOLD PACK SIZES. 0 2 5

MOST SOLD PACK SIZES.

7 7 6 5 4 3 2 1 0 6 5

1 0 0 0 SCHMES/INCENTIVE. SATISFACTION. QUALITY

MARGIN.

PARAMETERS FOR SELECTING A BRAND FOR SELLING.

PARAMETERS FOR SELECTING A BRAND FOR SELLING.

PYMT/CREDIT.

PRICE/M.R.P.

DEMAND.

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12 10 8 6 4 2 0 SERVO. 9

10 7 6 4 3 2 1 1 0 MAK. 1 1 0 BHARAT. 1 0 SONACHI OTHER. SKF. 1

MANGOL.

ELF.

VALVOLINE

SHELL.

CASTROL.

TYPES OF LUBRICANT BRANDS SOLD BY THE RETAILERS.

LUBRICANT BRANDS MOST SOLD BY THE RETAILERS.

FOR SADAR.
For SADAR market too the highest selling lubes product type is 2-wheel but the maximum sold pack sizes are that of 7-20 litres.Demand still remains the major priority for retailers in selecting a brand for sales.Servo is the market leader in this area.

VEEDOL.

0 5 3

MAX SELLING PRODUCT CATEGORY. 2-WH. MAX SELLING PRODUCT CATEGORY. 4-WH MAX SELLING PRODUCT CATEGORY. DIESEL MAX SELLING PRODUCT CATEGORY. COOLANT MAX SELLING PRODUCT CATEGORY. GREASE

PENSOL.

HPCL.

GULF

MEF

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MAX SELLING PRODUCT CATEGORY.

5 5 4.5 4 3.5 3 2.5 2 1.5 1 0.5 0 4

0 1 LT. 1-5LT. 7-20LT. BARREL.

MOST SOLD PACK SIZES.

MOST SOLD PACK SIZES.

7 7 6 5 4 3 2 1 0 6

2 0 0

MARGIN.

PARAMETERS FOR SELECTING A BRAND FOR SELLING.

PARAMETERS FOR SELECTING A BRAND FOR SELLING.

SCHMES/INCENTIVE.

70

SATISFACTION.

PYMT/CREDIT.

PRICE/M.R.P.

DEMAND.

QUALITY

7 6 5 4 3 2 1 0 BHARAT. SERVO. MAK. ELF. SHELL. CASTROL. HPCL. VEEDOL. 1 0 0 0 SONACHI 5 4 3 3 2 4 4 3 2 1 5

VALVOLINE

TYPES OF LUBRICANT BRANDS SOLD BY THE RETAILERS.

LUBRICANT BRANDS MOST SOLD BY THE RETAILERS.

FOR HINDOL.
In HINDOL market also 2 wheel lubes products are being maximum sold resulting to the maximum sales of 1-5 litres pack.But here the important parameter for selecting a brand by the retailers is Margin which has changed from demand as compared to that of other markets.Servo is the leading player in this market.

3 3

0 6

MAX SELLING PRODUCT CATEGORY. 2-WH. MAX SELLING PRODUCT CATEGORY. 4-WH MAX SELLING PRODUCT CATEGORY. DIESEL MAX SELLING PRODUCT CATEGORY. COOLANT MAX SELLING PRODUCT CATEGORY. GREASE

MANGOL.

PENSOL.

71

OTHER.

GULF

MEF

SKF.

MAX SELLING PRODUCT CATEGORY

4 4 3.5 3 2.5 2 1.5 1 0.5 0 1 LT. 1-5LT. 7-20LT. BARREL. MOST SOLD PACK SIZES. 0 2 2

72

MOST SOLD PACK SIZES.

7 7 6 5 4 3 2 1 0 6 6

0 PYMT/CREDIT.

0 SCHMES/INCENTIVE. QUALITY

0 SATISFACTION.

MARGIN.

PRICE/M.R.P.

PARAMETERS FOR SELECTING A BRAND FOR SELLING.

DEMAND.

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LUBRICANT BRANDS MOST SOLD BY THE RETAILERS.

8 7 6 5 4 3 2 1 0

7 6 5 4 3 1 0 MAK. SERVO. ELF. SHELL. GULF CASTROL. VEEDOL. HPCL. 0 0 BHARAT. MANGOL. PENSOL. MEF 3 3 1 1 0 SKF. SONACHI OTHER. 3 2

TYPES OF LUBRICANT BRANDS SOLD BY THE RETAILERS.

LUBRICANT BRANDS MOST SOLD BY THE RETAILERS.

For other markets namely as BHUBAN,PARAJANG,ODAPADA,KANKADAHAD and GANDIA are very small markets where the market potential is also too low.

-----------------------------------------------------------------------------------------

VALVOLINE

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FINDINGS .
FINDINGS FROM INDUSTRIES .
For industries, the requirements of lubricants basically varied as per the nature of the products that are being manufactured which is typically high for large scale industries like BHUSHAN STEEL & POWER PVT.LTD, NAVA BHARAT VENTURES LTD 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 lubricants. The same was found out when individual analysis was done on each district. It is also found from the analysis of both the districts 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 lubricants in ANGUL district is nearly about 11470 litres whereas the consumption for industries in DHENKANAL is 2065 litres which is quite low when compared to that of ANGUL.

FINDINGS FROM RETAIL (BAZAAR) MARKET.

From the analysis it was found that CASTROL is the market leader in of lubricants in bazaar market. Similarly SERVO comes second and thereafter HPCL, VEEDOL, PENSOL are ranked respectively as third, fourth and fifth respectively. The scenario was same when individual district wise analysis was done on ANGUL but only the fifth position was being taken by VALVOLINE in DHENKANAL district.

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ANNEXURE.
QUESTIONNAIRE FOR INDUSTRY SURVEY.
Survey to understand Customers Needs in the context of Purchase of Lubricants:
Name of the Customer: Address and contact Nos..... Persons Met: 1. NameDesignation.. 2. NameDesignation. 3. NameDesignation.

Questionnaires: 1. What are the products being manufactured at your plant?

2. What are the types of Lubricants being used at present?

3. Who are your present Lubricants suppliers?

4.What is your average monthly consumption of oils ?

5. How is the Grade wise average Lubricants requirement per month?

6. What are the primary things you look for while deciding to buy Lubricants? a) Price b) Recommendations c) Service d) Others-Specify

7. Where are you presently sourcing your lube requirement from

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a) Company

b) Distributor

c) Others

8. Any specific brand you prefer and reason for the same.

9. What kind of after sales services do you expect from the Vendor?

10. Any specific value addition you look for while Lubricants?

11. Do you monitor the performance of Lubricants on regular basis? a) Yes b) No c) At times

12. If yes, what type of performance parameters do you monitor?

13. Do you require Turbine Oils? a) Yes b) No

14. If yes, which Turbine Oil is being used at present? What is the Quantity required per month?

15. Do you use Transformer Oil a) Yes b) No

16. If yes, which Transformer oil is being used at present? What is the quantity required per month?

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QUESTIONNAIRE FOR REATAILER SURVEY.

Survey to understand Retailers Needs towards sales of different Brands of Lubricants: Name of the Retail Shop: Name of the Owner: Address and Contact No: Questionnaires: 1. What is your average Lubes sales per month? a) Value (Rs).. b) Quantity (Ltrs).

2. What are different Lubricant Brands you are selling? a) Servo ELF g) Others 3. Which category of products are you selling maximum? a) 2-Wh Engine Oil b) 4-Wh Engine Oil c) Diesel Engine Oil d) Coolant e) Greases 4. Which pack sizes are mostly sold? a) Up to 1 Litre pack Barrels b) 1 to 5 Litre packc) 7 to 20 Litre pack d) b) Castrol c) HPCL d) MAK e) Veedol f)

5. What is the most important parameter you look for while selecting a Brand for selling? a) Price/MRP term/Credit e) Scheme/Incentives b) Margin c) Market Demand d) Payment

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6. Have you heard of HPCL Brand? a) Yes b) No

7. Are you selling HPCL Brand? a) Yes b) No

8. If yes, which are the HPCL Grades and Quantities you are selling per month?

9) If no, what are the main reasons for not preferring HPCL Brand?

10) Your suggestions for improving sales of HPCL Lubricants:

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REFERENCE.

www.hpcl.co.in WWW.WIKIPEDIA.ORG WWW.CNNMONEY.COM

www.bharatpetroleum.com/wheels www.speedfuels.com MARKETING MANAGEMENT PHILIP KOTLER. MARKETING MODULE PROF.TANMOY DE. HPCL INDUSTRIAL FUEL AND LUBRICANT HAND BOOK. HPCL HANDBOOK FOR AUTOMOTIVE LUBRICANTS. INDUSTRIAL GUIDE.

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