Description
It explains talks about Industry Trends of petroleum industry, PEST Analysis of petroleum Industry, Competitor Analysis, SWOT analysis, Company Description, General Information about BPCL, it's Finance performance, SWOT analysis of BPCL and Various Strategies employed.
COMPANY ANALYSIS OF BHARAT PETROLEUM
Contents
Petroleum industry ....................................................................................................................................... 2 Competitor Analysis: IOCL ............................................................................................................................ 2 PEST analysis of Petroleum industry ............................................................................................................. 3 SWOT Analysis of Petroleum Industry .......................................................................................................... 4 Bharat Petroleum Corporation Limited ........................................................................................................ 5 Refineries of BPCL ......................................................................................................................................... 5 Business division of BPCL .............................................................................................................................. 6 Special hierarchical division of BPCL ............................................................................................................. 6 Features of hierarchical structure................................................................................................................. 7 Products of BPCL ........................................................................................................................................... 7 Imports and exports of BPCL......................................................................................................................... 7 SWOT analysis of BPCL .................................................................................................................................. 8 Innovation at BPCL – a journey ..................................................................................................................... 8 The progress and accolades in business ..................................................................................................... 12 Performance Analysis of BPCL .................................................................................................................... 12 Conclusion ................................................................................................................................................... 13
Petroleum industry
The petroleum industry has been largely impacted over last three decades by volatile world oil prices and geopolitical disruptions. Today refiners must deal with crude quality variability, volatile crude prices, low transport and marketing profit margins. The United States is the most sophisticated, largest producer of petroleum and refined petroleum products in the world. It represents about 29% of worldwide production. The Industry in India imports almost three-quarters of the crude it refines. It exports are roughly ten per cent of production. India is currently world?s fifth biggest consumer of energy. It accounts for 3.9% of world?s annual energy consumption. USA, Russian federation, China and Japan are the top four consumers. ? On a global perspective, between the period 1990 and 2005, the total amount of crude petroleum reserve has increased from 105.1 billion tones to 123.9 billion tones. ? The production of crude petroleum across the world has also increased by more than four hundred million tones within a span of 15 years from 1199 to 1626 million tons during 1990 and 2005. ? Petroleum Industry Trend is showing that the demand for petroleum has also seen an upward slope during 1990-2005 from 3135 to 3837 million tones. ? Petroleum Industry Trends give clear indication of increased demand for refined petroleum during the 15 year period starting from 1990 and ending on 2005. This period has evidenced a growth of above five hundred million tons of refined petroleum from 3728 million tons to 4255 million tons per annum.
Competitor Analysis: IOCL
? IOCL i.e. Indian Oil Corporation Limited is an Indian state-owned oil and gas corporation. ? As of 2012, its revenue is US$ 86.01 billion. ? It has 17000 Petrol Stations as compared to 5000 of BPCL.
? 49% petroleum products share and 40% refining share in India belong to IOCL. ? It has been ranked at116thposition in Fortune – 500 list. ? Indian Oil controls 10 of India’s 20 refineries. ? IOCL’s Asset turnover ratio is 3 times larger and a revenue that is 2 times larger than
BPCL.
PEST analysis of Petroleum industry
Political factors: ? Crude oil and gas is worldwide required and most necessitated commodity. ? Any fluctuation in crude oil or gas prices can have influence on the economy of the countries. ? The prices of it, therefore, have been regularly monitored by economists. ? Volatility of prices of crude oil has driven away many petroleum firms and companies related to it. ? The impact of rise in crude oil and gas price to the economic growth in the OPEC (Organization of Petroleum Exporting Countries) countries has been studied. ? The rise in prices of gas and petroleum has more influence on developing countries. ? Any massive increase or decrease in it has its impact on stock markets in the world. ? Higher crude oil and gas price leads to the higher price of usable energy, which in turns affects other trades that depends on it. ? India satisfies its 80% of the need for crude oil and related products majorly by imports. ? International price of crude oil is estimated to grow up to 100 million barrels per day by 2015. Supply of crude oil will juggle to keep up to the requirement pace. The production from existing oil and gas sources has been reduced by 4% per annum. This implies that around 3 million barrels per day of new capacity is required to bead in every year for offsetting this declination. Economic factors: ? Trade flows of Indian petroleum refining industry are large compared to production. ? Factors like methods and technology using for increase the oil production, changes introduced in tax policy, storing up of crude oil by rich and prosperous countries, social and political issues etc. affect the price of crude oil. ? The petroleum industry functionally has two parts as an oil exploration and production industry and a refinery industry. ? Sedimentary rocks often hold gas, in association with crude oil. It consists mostly of methane, which is toxic and lighter than air. ? For storage it requires airtight tanks and leak-proof trucks for transport or pipes, which raise its capital costs. ? Where the quantities are large enough, natural gas is traded and mined. Social factors: ? The increasing population has raised a need of exploration of newer resources of oil and gases. ? Population causes increases usage of oil which gives rise to more environmental deterioration and pollution related issues.
? Fluctuation in prices of petroleum products directly affects the common people and prices of day to day used material. ? Population causes increase in prices and it makes it inaccessible to lower strata of society. ? Over usage of anything causes burdening on its production, distribution, etc. Technological factors: ? Today's petroleum refining industry must be prepared to meet a growing number of populations, environmental and regulatory challenges. ? Technological advancements and know how related to liquid effluents, gaseous emissions and solid waste. ? The high value of the end product of the petroleum has led to significant technological developments to tap new resources in deep and ultra-deep water (from 300-3500 meter water depth). ? Use of electricity in many areas had caused deterioration in the use of petroleum products. So, other refined products have been developed, and non-vehicular uses have been developed for them. ? analysis of proposed and current methods of waste management and environmental protection ? application of environmental rules and regulations to petroleum products and gas and petroleum refining competitively priced and efficient, reliable energy supplies are prerequisite for accelerating economic and technological growth
SWOT Analysis of Petroleum Industry
Strengths: ? High growth rate ? Labor cost which is competitive ? Safe and Environment Friendly Distribution ? Huge pool of talent ? Fastest growing industry Weaknesses: ? Insufficient Basic Infrastructure ? Increasing Cost of Projects ? Obsolete Technology ? High Import & Feedstock Cost ? High Operating Costs Opportunities: ? Increasing Preference for Pipelines ? Cost-Effective & Competitive Projects
? Healthy Competition ? Overseas Expansion ? Unaffected Demand Threats: ? High Cost of Energy ? Increasing Competition ? Non-Availability of Alternatives ? Difficult Terrain & Harsh Climate ? Huge Investments ? Environmental Concern
Bharat Petroleum Corporation Limited
Bharat Petroleum Corporation Limited is owned by Government of India. It specializes in refining, processing, and distributing petroleum products, and exploration and production of hydrocarbons. It deals in products like diesel, petrol, aviation fuel, kerosene, compressed natural gas (CNG), liquefied petroleum gas (LPG), and lubricants. It has its headquartered in Mumbai. R. K. Singh is its chairman and MD. According to financial year ended in 2012, following are the important figures related to the company:
Revenue Net income Total assets Total equity Employees
• US$ 44.581 billion
• US$ 163 million • US$ 15.275 billion • US$ 3.117 billion
• 14,154
Refineries of BPCL
BPCLdeals in the petroleum industry in India. It has fourrefineries in India at Mumbai, Kochi, Bina and one at Numaligarh, its subsidiary company Numaligarh Refinery Limited i.e. NRL.Theaverage refinery throughput at its Refineries was 23.03 millionmetric tons. The Companydeals
indownstream petroleum sector. It consists of refining and marketing activities. As on March 31, 2010, BPCL holds 61.65%interest in NRL. Bharat PetroResources Limited (BPRL) is a 100% subsidiary of theCompany. The production and exploration activities of BPRL and its subsidiary companies consist of 26exploration blocks where they hold participatinginterests (PI). Of this, seventeen blocks are abroad and nine are in India.Apart from India, BPRL has blocks in Indonesia, Australia, East Timor, Brazil, US and Mozambique.
Business division of BPCL
BPCL is organized into 6 SBUs i.e. Strategic Business Units as follows:
Retail
Aviation
LPG
6 SBUs of BPCL
Refinery
Industrial & Commercial
Lubricants
It has a country wide network of 63 depots operated by company, 33 installation & oil terminals, 45LPG bottling plants and 19 Aviation service stations which providelogistical support for 7077 petrol stations, 1008 LDO or Kerosenedealers and 2124 LPG distributors. It also supplies fuel to several domestic and international airlines and hundreds of industries.
Special hierarchical division of BPCL
In this structure customer and business process are at focus. According to this structure, five SBUs viz. Lubricants, Retail, Commercial and Industry, Aviation and LPG come under director (marketing). The sixth SBU i.e. Refinery along with two newdepartments viz. IT & Supply Chain and R&D are under director (refineries). Each of these SBUs would have its own HR, finance, marketing, etc.
The major change is that the customer segments are now more concentrated. This is done by introducing territories covering smaller geographical area. For instance, in retail SBU, the new structure has almost 66 territories with the four regional offices, as compared to earlier 22 divisions which catered to all segments.In other SBUs, theregional office was removed and territories were designed to directlyreport to the SBU heads. The territories were so structured so that the field staff would focus on particular customer segments only. The authorities were delegated and decision making was assigned to lowest possible level. InLPG SBU head office, only nine personnel are there. Even senior managers are asked to get business.
Features of hierarchical structure
The new design incorporated recalibration of responsibilities and roles. It redeployed more than two thousand people which isaround one fifth of total employee strength in the organization.It created new roles at the front effectively using existing and redundant manpower to make it more users friendly and to increase customer interaction. The features of this hierarchy can be summarized as follows: ? Created faith in employees due to decentralization of decision making ? Creation of highly empowered and skilled workforce ? Delinking of authority from all hierarchical levels ? Increased customer interaction and interface ? Regular customer surveys and market research ? More moves and conscious efforts to build the brand name further
Products of BPCL
Different product ranges of BPCL are as follows:
Imports and exports of BPCL
Imports BPCL imports various products depending upon the domestic demand and supply scenario.BPCL imports its LPG requirements mainly from Middle East. Occasionally, there are import requirements of Gasoline,Gasoil, Kerosene and Base Oil.
Exports BPCL exports various products from its refineries. The products which are exported are Naphtha,Fuel Oil, and Base Oil (Group II). Products exports are done on both CFR and FOB basis.
SWOT analysis of BPCL
Strengths: ? Has a good brand name and presence all over India ? One of India?s biggest state owned gas and oil company ? Refining and retailing of petroleum ? Good structural hierarchy ? Decentralization of management Weakness: ? Legal issues ? Management of large number of employees Opportunities: ? Increase in prices of fuel, oil ? Increase in natural gas market ? Discoveries of more oil wells ? Expansion of export market Threats: ? Rules and regulations of government ? High competition from competitors
Innovation at BPCL – a journey
BPCL has always tried to improve its overall picture. Following are some of the campaigns or programs launched by BPCL:
Cusecs (1997)
Entrans (2000)
Destiny (2005)
Crescendo (2006)
Caliber (2006)
Aryabhatta (2007)
WIN (2009)
Project Descriptions:
Beyond Tomorrow (2010)
DreamPlan (2011)
1. Project Cusecs: Cusecs stands for Customer Service Customer Satisfaction. Features: ? It was a one of the major and brought about transformation in working of BPCL ? Making BPCL to get ready to combat impact of deregulation ? More focus on customer service, thus improving profitability Results: ? Emergence of 6 new SBUs, lateral linkages and entities ? New structural organization ? New pioneer projects such as Petro Card, „Pure for Sure?, etc., which were majorly customer centric ? Re-engineering of process 2. Project Entrans: Features: ? Designing, developing and implementing Enterprise Resource Plan ? At 374 locations, implementation of SAP Oil & Gas Solution ? Increased end users ? Value added service implemented by SAP Platform such as E-Biz, B2B, Receipts and electronic Payments Results: ? Gas Solution and SAP Oil implementation at 374 locations
? 4000 strong and promising end users ? Enabled value added service (VAS) by SAP Platform such as electronic Payments, E-Biz, B2B, etc. 3. Project Destiny: Features: ? Enhance and improve current business on a large scale by innovation in strategy, clear priorities in investment and focused and planned segmentation ? Exploration of new opportunities ? Entrance into new streams such as gas, clean energy business Results: ? Creating brand name globally ? Leading company in energy ? Sustained and aggressive growth ? Increased profit ? Increased outputs and assets 4. Project Crescendo: Crescendo- Crude Refining Supply Chain Network & Depot Optimization Features: ? Optimized use of Refineries ? Optimization of inventories ? Optimization of logistic cost ? Sharing of infrastructure ? Capturing of cross supply chain opportunities Results: ? Net capitalization increased to Rs. 1000 Cr. Per annum ? Greater security in supply 5. Project Caliber: Caliber – Creating and Assessing Leadership in BPCL to Energize (Human) Resources Features: ? Creation of new and sustainable leadership ? Exploring talent and aligning it to the right role ? Motivation of talent ? Assignment of critical roles to talent ? 360 degree feedback Result: ? Feedback system appreciated and used judiciously ? Robust planning
? Proper understanding of research and developmental needs for getting right learning inputs ? Calibration of leadership strength 6. Project Aryabhatta: Features: ? Focus on Corporate and Business strategies ? IT initiatives alignment ? Use of IT applications to increase interaction with customers and to get closer to them Results: ? Optimized transactions and analytics ? Advanced technologies to get closer to customers ? Empowerment and increased faith in employees ? Efficient supply chain management leading to bottom line improvements 7. Project WIN: WIN – We Innovate Now Features: ? Creating cost / value DNA ? Reducing break even points and increasing profitability in all major businesses ? Shore up cash across all BUs and entities Results: ? Proper follow up of production plan ? Excellence in procurement ? Increase in capital productivity ? Optimization of working capital ? Reduction in transportation costs 8. Project ‘Beyond Tomorrow’: Features: ? Revision of leadership competencies ? Revision ofcorporate morals and values ? Revision of corporate culture dimension ? Designing integrated talent management framework Results: ? Rearticulated competencies, values and culture ? Designed business led talent management processes
The progress and accolades in business
Conscious efforts of BPCL towards overall progress, has paid it off largely. Few of the accolades achieved by the company in the last year are as follows: ? BPCL in the fortune 2011 global 500 list ? BPCL receives “Best ALM Excellence Award 2011 for PUBLIC SECTOR” in Indian Subcontinent ? Kochi Refinery bags Excellence Award for environment care ? Prime Minister Inaugurates World Class Bina Refinery ? BPCL Exhilarates With Three PetroFed Awards ? BPCL Lauded for Performance Excellence ? BPCL Stands Tall as a Power Brand
Performance Analysis of BPCL
The performance up gradation in various parameters can be analyzed with the help of following statistics. Performance statistics 1:
45 40 35 30 25 20 15 10 5 0
42.78 29.27 21.7 7.6 15.76 20.4 22.5 2011 1999 1999 Refining throughput (TMT) Sales volume (MMT) 2011 Market Participation (%) EPS (INR) 27.17
Performance statistics 2:
14000 12000 10000 8000 6000 4000 2000 0 Retail Outlets (units) LPG Distributors (units) 2452 1146 1956 9289 4373 11389
13837 11704
2011 1999 1999 2011
Value Added (Rs. Cr.)
Manpower (units)
Conclusion
BPCL is an integrated marketing and refining company, engaged in refineries and selling petroleum products, and has a higher presence in metro cities than peers. This gives it the advantage of higher growth rate, greater margins and lower competition. The company?s different programs add to its quality and competitive advantage. BPCL?s expansion of its current refining capacity and newer refineries, removes product supply risks.
doc_812416950.docx
It explains talks about Industry Trends of petroleum industry, PEST Analysis of petroleum Industry, Competitor Analysis, SWOT analysis, Company Description, General Information about BPCL, it's Finance performance, SWOT analysis of BPCL and Various Strategies employed.
COMPANY ANALYSIS OF BHARAT PETROLEUM
Contents
Petroleum industry ....................................................................................................................................... 2 Competitor Analysis: IOCL ............................................................................................................................ 2 PEST analysis of Petroleum industry ............................................................................................................. 3 SWOT Analysis of Petroleum Industry .......................................................................................................... 4 Bharat Petroleum Corporation Limited ........................................................................................................ 5 Refineries of BPCL ......................................................................................................................................... 5 Business division of BPCL .............................................................................................................................. 6 Special hierarchical division of BPCL ............................................................................................................. 6 Features of hierarchical structure................................................................................................................. 7 Products of BPCL ........................................................................................................................................... 7 Imports and exports of BPCL......................................................................................................................... 7 SWOT analysis of BPCL .................................................................................................................................. 8 Innovation at BPCL – a journey ..................................................................................................................... 8 The progress and accolades in business ..................................................................................................... 12 Performance Analysis of BPCL .................................................................................................................... 12 Conclusion ................................................................................................................................................... 13
Petroleum industry
The petroleum industry has been largely impacted over last three decades by volatile world oil prices and geopolitical disruptions. Today refiners must deal with crude quality variability, volatile crude prices, low transport and marketing profit margins. The United States is the most sophisticated, largest producer of petroleum and refined petroleum products in the world. It represents about 29% of worldwide production. The Industry in India imports almost three-quarters of the crude it refines. It exports are roughly ten per cent of production. India is currently world?s fifth biggest consumer of energy. It accounts for 3.9% of world?s annual energy consumption. USA, Russian federation, China and Japan are the top four consumers. ? On a global perspective, between the period 1990 and 2005, the total amount of crude petroleum reserve has increased from 105.1 billion tones to 123.9 billion tones. ? The production of crude petroleum across the world has also increased by more than four hundred million tones within a span of 15 years from 1199 to 1626 million tons during 1990 and 2005. ? Petroleum Industry Trend is showing that the demand for petroleum has also seen an upward slope during 1990-2005 from 3135 to 3837 million tones. ? Petroleum Industry Trends give clear indication of increased demand for refined petroleum during the 15 year period starting from 1990 and ending on 2005. This period has evidenced a growth of above five hundred million tons of refined petroleum from 3728 million tons to 4255 million tons per annum.
Competitor Analysis: IOCL
? IOCL i.e. Indian Oil Corporation Limited is an Indian state-owned oil and gas corporation. ? As of 2012, its revenue is US$ 86.01 billion. ? It has 17000 Petrol Stations as compared to 5000 of BPCL.
? 49% petroleum products share and 40% refining share in India belong to IOCL. ? It has been ranked at116thposition in Fortune – 500 list. ? Indian Oil controls 10 of India’s 20 refineries. ? IOCL’s Asset turnover ratio is 3 times larger and a revenue that is 2 times larger than
BPCL.
PEST analysis of Petroleum industry
Political factors: ? Crude oil and gas is worldwide required and most necessitated commodity. ? Any fluctuation in crude oil or gas prices can have influence on the economy of the countries. ? The prices of it, therefore, have been regularly monitored by economists. ? Volatility of prices of crude oil has driven away many petroleum firms and companies related to it. ? The impact of rise in crude oil and gas price to the economic growth in the OPEC (Organization of Petroleum Exporting Countries) countries has been studied. ? The rise in prices of gas and petroleum has more influence on developing countries. ? Any massive increase or decrease in it has its impact on stock markets in the world. ? Higher crude oil and gas price leads to the higher price of usable energy, which in turns affects other trades that depends on it. ? India satisfies its 80% of the need for crude oil and related products majorly by imports. ? International price of crude oil is estimated to grow up to 100 million barrels per day by 2015. Supply of crude oil will juggle to keep up to the requirement pace. The production from existing oil and gas sources has been reduced by 4% per annum. This implies that around 3 million barrels per day of new capacity is required to bead in every year for offsetting this declination. Economic factors: ? Trade flows of Indian petroleum refining industry are large compared to production. ? Factors like methods and technology using for increase the oil production, changes introduced in tax policy, storing up of crude oil by rich and prosperous countries, social and political issues etc. affect the price of crude oil. ? The petroleum industry functionally has two parts as an oil exploration and production industry and a refinery industry. ? Sedimentary rocks often hold gas, in association with crude oil. It consists mostly of methane, which is toxic and lighter than air. ? For storage it requires airtight tanks and leak-proof trucks for transport or pipes, which raise its capital costs. ? Where the quantities are large enough, natural gas is traded and mined. Social factors: ? The increasing population has raised a need of exploration of newer resources of oil and gases. ? Population causes increases usage of oil which gives rise to more environmental deterioration and pollution related issues.
? Fluctuation in prices of petroleum products directly affects the common people and prices of day to day used material. ? Population causes increase in prices and it makes it inaccessible to lower strata of society. ? Over usage of anything causes burdening on its production, distribution, etc. Technological factors: ? Today's petroleum refining industry must be prepared to meet a growing number of populations, environmental and regulatory challenges. ? Technological advancements and know how related to liquid effluents, gaseous emissions and solid waste. ? The high value of the end product of the petroleum has led to significant technological developments to tap new resources in deep and ultra-deep water (from 300-3500 meter water depth). ? Use of electricity in many areas had caused deterioration in the use of petroleum products. So, other refined products have been developed, and non-vehicular uses have been developed for them. ? analysis of proposed and current methods of waste management and environmental protection ? application of environmental rules and regulations to petroleum products and gas and petroleum refining competitively priced and efficient, reliable energy supplies are prerequisite for accelerating economic and technological growth
SWOT Analysis of Petroleum Industry
Strengths: ? High growth rate ? Labor cost which is competitive ? Safe and Environment Friendly Distribution ? Huge pool of talent ? Fastest growing industry Weaknesses: ? Insufficient Basic Infrastructure ? Increasing Cost of Projects ? Obsolete Technology ? High Import & Feedstock Cost ? High Operating Costs Opportunities: ? Increasing Preference for Pipelines ? Cost-Effective & Competitive Projects
? Healthy Competition ? Overseas Expansion ? Unaffected Demand Threats: ? High Cost of Energy ? Increasing Competition ? Non-Availability of Alternatives ? Difficult Terrain & Harsh Climate ? Huge Investments ? Environmental Concern
Bharat Petroleum Corporation Limited
Bharat Petroleum Corporation Limited is owned by Government of India. It specializes in refining, processing, and distributing petroleum products, and exploration and production of hydrocarbons. It deals in products like diesel, petrol, aviation fuel, kerosene, compressed natural gas (CNG), liquefied petroleum gas (LPG), and lubricants. It has its headquartered in Mumbai. R. K. Singh is its chairman and MD. According to financial year ended in 2012, following are the important figures related to the company:
Revenue Net income Total assets Total equity Employees
• US$ 44.581 billion
• US$ 163 million • US$ 15.275 billion • US$ 3.117 billion
• 14,154
Refineries of BPCL
BPCLdeals in the petroleum industry in India. It has fourrefineries in India at Mumbai, Kochi, Bina and one at Numaligarh, its subsidiary company Numaligarh Refinery Limited i.e. NRL.Theaverage refinery throughput at its Refineries was 23.03 millionmetric tons. The Companydeals
indownstream petroleum sector. It consists of refining and marketing activities. As on March 31, 2010, BPCL holds 61.65%interest in NRL. Bharat PetroResources Limited (BPRL) is a 100% subsidiary of theCompany. The production and exploration activities of BPRL and its subsidiary companies consist of 26exploration blocks where they hold participatinginterests (PI). Of this, seventeen blocks are abroad and nine are in India.Apart from India, BPRL has blocks in Indonesia, Australia, East Timor, Brazil, US and Mozambique.
Business division of BPCL
BPCL is organized into 6 SBUs i.e. Strategic Business Units as follows:
Retail
Aviation
LPG
6 SBUs of BPCL
Refinery
Industrial & Commercial
Lubricants
It has a country wide network of 63 depots operated by company, 33 installation & oil terminals, 45LPG bottling plants and 19 Aviation service stations which providelogistical support for 7077 petrol stations, 1008 LDO or Kerosenedealers and 2124 LPG distributors. It also supplies fuel to several domestic and international airlines and hundreds of industries.
Special hierarchical division of BPCL
In this structure customer and business process are at focus. According to this structure, five SBUs viz. Lubricants, Retail, Commercial and Industry, Aviation and LPG come under director (marketing). The sixth SBU i.e. Refinery along with two newdepartments viz. IT & Supply Chain and R&D are under director (refineries). Each of these SBUs would have its own HR, finance, marketing, etc.
The major change is that the customer segments are now more concentrated. This is done by introducing territories covering smaller geographical area. For instance, in retail SBU, the new structure has almost 66 territories with the four regional offices, as compared to earlier 22 divisions which catered to all segments.In other SBUs, theregional office was removed and territories were designed to directlyreport to the SBU heads. The territories were so structured so that the field staff would focus on particular customer segments only. The authorities were delegated and decision making was assigned to lowest possible level. InLPG SBU head office, only nine personnel are there. Even senior managers are asked to get business.
Features of hierarchical structure
The new design incorporated recalibration of responsibilities and roles. It redeployed more than two thousand people which isaround one fifth of total employee strength in the organization.It created new roles at the front effectively using existing and redundant manpower to make it more users friendly and to increase customer interaction. The features of this hierarchy can be summarized as follows: ? Created faith in employees due to decentralization of decision making ? Creation of highly empowered and skilled workforce ? Delinking of authority from all hierarchical levels ? Increased customer interaction and interface ? Regular customer surveys and market research ? More moves and conscious efforts to build the brand name further
Products of BPCL
Different product ranges of BPCL are as follows:
Imports and exports of BPCL
Imports BPCL imports various products depending upon the domestic demand and supply scenario.BPCL imports its LPG requirements mainly from Middle East. Occasionally, there are import requirements of Gasoline,Gasoil, Kerosene and Base Oil.
Exports BPCL exports various products from its refineries. The products which are exported are Naphtha,Fuel Oil, and Base Oil (Group II). Products exports are done on both CFR and FOB basis.
SWOT analysis of BPCL
Strengths: ? Has a good brand name and presence all over India ? One of India?s biggest state owned gas and oil company ? Refining and retailing of petroleum ? Good structural hierarchy ? Decentralization of management Weakness: ? Legal issues ? Management of large number of employees Opportunities: ? Increase in prices of fuel, oil ? Increase in natural gas market ? Discoveries of more oil wells ? Expansion of export market Threats: ? Rules and regulations of government ? High competition from competitors
Innovation at BPCL – a journey
BPCL has always tried to improve its overall picture. Following are some of the campaigns or programs launched by BPCL:
Cusecs (1997)
Entrans (2000)
Destiny (2005)
Crescendo (2006)
Caliber (2006)
Aryabhatta (2007)
WIN (2009)
Project Descriptions:
Beyond Tomorrow (2010)
DreamPlan (2011)
1. Project Cusecs: Cusecs stands for Customer Service Customer Satisfaction. Features: ? It was a one of the major and brought about transformation in working of BPCL ? Making BPCL to get ready to combat impact of deregulation ? More focus on customer service, thus improving profitability Results: ? Emergence of 6 new SBUs, lateral linkages and entities ? New structural organization ? New pioneer projects such as Petro Card, „Pure for Sure?, etc., which were majorly customer centric ? Re-engineering of process 2. Project Entrans: Features: ? Designing, developing and implementing Enterprise Resource Plan ? At 374 locations, implementation of SAP Oil & Gas Solution ? Increased end users ? Value added service implemented by SAP Platform such as E-Biz, B2B, Receipts and electronic Payments Results: ? Gas Solution and SAP Oil implementation at 374 locations
? 4000 strong and promising end users ? Enabled value added service (VAS) by SAP Platform such as electronic Payments, E-Biz, B2B, etc. 3. Project Destiny: Features: ? Enhance and improve current business on a large scale by innovation in strategy, clear priorities in investment and focused and planned segmentation ? Exploration of new opportunities ? Entrance into new streams such as gas, clean energy business Results: ? Creating brand name globally ? Leading company in energy ? Sustained and aggressive growth ? Increased profit ? Increased outputs and assets 4. Project Crescendo: Crescendo- Crude Refining Supply Chain Network & Depot Optimization Features: ? Optimized use of Refineries ? Optimization of inventories ? Optimization of logistic cost ? Sharing of infrastructure ? Capturing of cross supply chain opportunities Results: ? Net capitalization increased to Rs. 1000 Cr. Per annum ? Greater security in supply 5. Project Caliber: Caliber – Creating and Assessing Leadership in BPCL to Energize (Human) Resources Features: ? Creation of new and sustainable leadership ? Exploring talent and aligning it to the right role ? Motivation of talent ? Assignment of critical roles to talent ? 360 degree feedback Result: ? Feedback system appreciated and used judiciously ? Robust planning
? Proper understanding of research and developmental needs for getting right learning inputs ? Calibration of leadership strength 6. Project Aryabhatta: Features: ? Focus on Corporate and Business strategies ? IT initiatives alignment ? Use of IT applications to increase interaction with customers and to get closer to them Results: ? Optimized transactions and analytics ? Advanced technologies to get closer to customers ? Empowerment and increased faith in employees ? Efficient supply chain management leading to bottom line improvements 7. Project WIN: WIN – We Innovate Now Features: ? Creating cost / value DNA ? Reducing break even points and increasing profitability in all major businesses ? Shore up cash across all BUs and entities Results: ? Proper follow up of production plan ? Excellence in procurement ? Increase in capital productivity ? Optimization of working capital ? Reduction in transportation costs 8. Project ‘Beyond Tomorrow’: Features: ? Revision of leadership competencies ? Revision ofcorporate morals and values ? Revision of corporate culture dimension ? Designing integrated talent management framework Results: ? Rearticulated competencies, values and culture ? Designed business led talent management processes
The progress and accolades in business
Conscious efforts of BPCL towards overall progress, has paid it off largely. Few of the accolades achieved by the company in the last year are as follows: ? BPCL in the fortune 2011 global 500 list ? BPCL receives “Best ALM Excellence Award 2011 for PUBLIC SECTOR” in Indian Subcontinent ? Kochi Refinery bags Excellence Award for environment care ? Prime Minister Inaugurates World Class Bina Refinery ? BPCL Exhilarates With Three PetroFed Awards ? BPCL Lauded for Performance Excellence ? BPCL Stands Tall as a Power Brand
Performance Analysis of BPCL
The performance up gradation in various parameters can be analyzed with the help of following statistics. Performance statistics 1:
45 40 35 30 25 20 15 10 5 0
42.78 29.27 21.7 7.6 15.76 20.4 22.5 2011 1999 1999 Refining throughput (TMT) Sales volume (MMT) 2011 Market Participation (%) EPS (INR) 27.17
Performance statistics 2:
14000 12000 10000 8000 6000 4000 2000 0 Retail Outlets (units) LPG Distributors (units) 2452 1146 1956 9289 4373 11389
13837 11704
2011 1999 1999 2011
Value Added (Rs. Cr.)
Manpower (units)
Conclusion
BPCL is an integrated marketing and refining company, engaged in refineries and selling petroleum products, and has a higher presence in metro cities than peers. This gives it the advantage of higher growth rate, greater margins and lower competition. The company?s different programs add to its quality and competitive advantage. BPCL?s expansion of its current refining capacity and newer refineries, removes product supply risks.
doc_812416950.docx