Description
The objective is this is Marketing brand Report on Bharat Petroleum.It include parameters like Product, promotion ,recent developments, communications, market potential and position, achievements.
Market
As India continues on the path of major economic and industrial reforms and integrates itself with the global economy, the hydrocarbon sector – more than ever before – will occupy the driver’s seat. With the reforms package formulated and high growth expected in all economic sectors, the demand for petroleum products is projected to grow at a compound increment of about 7% ( Source: Government of India). In absolute terms, the demand for petroleum products in financial year 2006/07 witnessed a 5.9% increase. Sales grew from 113.21 million metric tonnes (MMT) in 2005/06 to 119.85 MMT in the following year. The developed world, particularly Europe, has not added to refining capacity in recent years. Environmental concerns may even shut down some existing facilities. According to the Petroleum Planning & Analysis Cell (PPAC), world refining capacity registered an increase of 3.28 million barrels per day during the four-year period, 2003/06. Significantly, India, China and the US have been the three largest contributors to this addition. Between them they have cornered 84% of this increase. According to International Energy Agency (IEA) predictions India, sitting mid-way across the globe, has a geographical advantage and could become the refining hub of the world. To take advantage of the strategic location, Indian refiners are expected to add 112 million metric tonnes per annum (MMPTA) to their existing 149 MMPTA refining capacity, by 2012. This is expected to exponentially continue, paving the way for further major policy changes which would make the oil industry even more globally competitive. While the PSU oil marketing companies still hog the lion’s share in petroleum marketing, a sea change is taking place. Oil fields have been opened for exploitation by private companies – both foreign and Indian. Similarly, refining and, to some extent, marketing of petroleum products have also been thrown open to private players.
(US$ 26.86 billion) while profit after tax (PAT) increased to Rs. 2355.88 crore (US$ 588.97 million) in the financial year 2006/07.
Achievements
BPCL today boasts a network of operations that includes 347 distribution locations and sales offices, 6400 gas stations and more than 2060 liquefied petroleum gas (LPG) distributors. This involves an extensive range of activities – from maintaining inventories and performing refinery plant maintenance through to disseminating human resource policies and keeping the kitchen stoves lit in homes and millions of cars on the road. The London-based Brand Finance has listed BPCL in the seventh position among India’s Top 50 Most Valuable Brands. In the latest Fortune Global 500 list, the company moved up to 325 from its previous ranking of 368; it also figured prominently in the PLATTS Top 250 energy companies rankings. Its shelf of trophies is second to none. The company recently bagged the Avaya-Economic Times Customer Responsiveness Award in the PSU genre. The Association of Business Communicators of India (ABCI) conferred the prestigious Gold Award to the BPCL website while Silver and Bronze awards were picked up by the BP Journal and the company's Annual Report in 2006/07. In the same year, for implementing best practices in Health, Safety and Environment, BPCL won several awards, among them the coveted Annual Greentech Environment Excellence Award in the petroleum refinery sector for outstanding achievement in environment management. In recognition of the corporate social responsibility the company has discharged, BPCL was adjudged the Most Trusted Oil Company by TNS Global in 2007.
Public sector oil companies are now allowed to form joint ventures with the private sector. Import of products, hitherto canalised through PSU’s has been deregulated. Customs and excise duty structures have been rationalised. Petroleum products have emerged as the largest merchandise exported from the country. Gross exports of petroleum products was 32.4 MMT in 2006/07 valued at US$18.60 billion (Rs. 74,400 crore) and in the first seven months of the current fiscal – up to October 2007 – it had already crossed 23.4 MMT valued at US$14.60 billion (Rs. 58,400 crore) (Source: Ministry of Commerce). In this market scenario, public sector petroleum producing, refining and marketing companies must rise to new challenges. They must build up adequate refining capacity, update technologies to meet the predominant demand for middle distillates and improve the quality of products to make them environment-friendly and globally competitive. BPCL stands tall as India’s second largest petroleum marketing company. It recorded a group sales turnover of Rs. 107,452.27 crore
History
Bharat Petroleum Corporation traces its history to 1928 when the Burmah Shell Oil Storage & Distribution
Company of India was incorporated in England to enter the petroleum products business in India. Given the international backing of Shell the business of the company grew substantially. It had soon achieved the leadership position in India. In 1952, Shell and Burmah Oil Company created Burmah Shell Refineries and set up a green field refinery in Mumbai. The entire operations of Burmah Shell in India were nationalised in 1976 and the refinery and marketing companies were merged to form Bharat Petroleum Corporation Limited. The markets were growing slowly. Fifteen years after its formation, liberalisation was introduced. The economy was being freed and licenses for several sectors were no longer required. The dormant Indian industrial juggernaut woke up. The new opportunities brought vigour on Indian roads. Along with it came a new breed of cars. Gas stations began to get crowded. Some decades earlier, in the mid-1950s, liquefied petroleum gas had been launched as a cooking fuel. Between the two BPCL hummed with activity. The organisation structure of BPCL has since been revamped and six new Strategic Business Units (SBUs) have been created. They are Refinery, Retail, Industrial & Commercial, Lubricants, Aviation and LPG. The new structure is based on business processes, is flexible, more responsive to external changes, has fewer layers, and above all, ensures a much higher customer focus.
diversified into crude oil exploration and production. This step bridged an important gap by offering both, an opportunity for product security and cost-advantage to the company.
Promotion
BPCL communicates with its customers through a series of above-the-line activities using television, outdoor and the internet. In addition, it participates in exhibitions, offers sponsorships at relevant forums and creates market promotions to enhance brand visibility. Bharat Petroleum pioneered the concept of petrol-station located convenience stores in the country. Called In & Out, these stores go a long way in meeting customers' convenience needs on the road. The fact that they remain open late into the night, when most other stores are closed, is significant help. The product mix at these outlets extends from light snacks and a can of an aerated beverage for the hungry traveller, to breads, milk and personal care products. Some of the stores vend frozen foods, greeting cards, music and gift items. The company also introduced the concept of a co-branded credit card. Today over 1500 Bharat Petroleum pumps provide card facilities. In addition to this, selective outlets also offer a waiver of the fuel surcharge on cards issued by several banks including HDFC, SBI, Standard Chartered and HSBC. To reach out to audiences, BPCL has tapped into the popularity of two young and dynamic brand ambassadors – cricketer Mahendra Singh Dhoni and Formula One speedster Narain Karthikeyan to endorse BPCL brands – MAK and Speed.
The company's twin retail offerings – Speed, its premium petrol and Hi-speed, its diesel – have become brand ambassadors for its high-end product line. The MAK range of lubricants caters to the automotive and industrial segments. Some 23 million Indian kitchens use Bharatgas; while Bharat metal cutting gas, an industrial cylinder brand, provides efficient and low-cost metal cutting solutions to the construction industry.
Recent Developments
The years 2006/2007 witnessed several milestones for the company. The LOBS (Lube Oil Base Stock) plant was commissioned at the Mumbai refinery and the erstwhile Kochi Refineries Limited (KRL) was merged with BPCL. Post-merger, the online blender was commissioned to blend petrol and diesel to meet BS-II and EURO-III specifications. The Retail SBU made its international debut in Bhutan with the inauguration of a BPCL outlet in August 2007. This opened a fresh chapter in petroleum products marketing with a new partner, Damchem Petroleum, in the scenic town of Paro at Druk-Yul in Bhutan. The LPG SBU is in the process of establishing a storage, bottling and distribution facility in Nairobi, Kenya. When fully operational, it will offer BPCL the opportunity to cater more extensively to the African market and extend its expertise in the international arena. In India, the company’s refinery modernisation project is being implemented at a cost of Rs.1831 crore (US$ 457.75 million). Besides improving distillate yield and energy efficiency, the project will enhance its crude oil refining capacity from 9 million metric tonnes to 12 million metric tonnes per annum. In October 2006, with the incorporation of Bharat PetroResources Limited, BPCL
Brand Values
The three cornerstones of BPCL's success have been innovation, care and reliability. These have been ingrained in every aspect of the company's offerings. The company treats its customers with respect and humility. At its gas and service stations smartly turned out attendants greet patrons with a warm smile. The courtesy brings many back over and over again. Indeed, for several clients it is BPCL – or nothing.
Product
This elite Fortune 500 Company’s products range from the kerosene used to light a wick in a remote village to the fuel used to power aircrafts. The end products of BPCL touch the lives of all Indians. The company refines and markets aviation turbine fuel, petrol, diesel, fuel oils, kerosene, greases and lube oil based stock. BPCL’s industrial and commercial businesses provide benzene, toluene, furnace oil, hexane, mineral turpentine oil and bitumen that keep the wheels of industrial progress turning.
www.bharatpetroleum.in
THINGS YOU DIDN’T KNOW ABOUT
Bharat Petroleum Corporation
Valued at over US$ 2.46 billion (Rs. 9840 crore) BPCL is India’s seventh most valuable brand BPCL ranks 325th in the Fortune 500 listing To support the economically and socially weaker sections of society, BPCL involves itself with activities like rain water harvesting, blood donation drives, vaccination camps and promotion of alternate fuel sources BPCL recently commissioned wind mills with a combined capacity of 5 MW in the Kappatguda hills of Karnataka To help deserving Indian students complete post-graduate studies in India and abroad, the Bharat Petroleum Scholarships for Higher Studies was initiated in 2003/04
doc_253912028.pdf
The objective is this is Marketing brand Report on Bharat Petroleum.It include parameters like Product, promotion ,recent developments, communications, market potential and position, achievements.
Market
As India continues on the path of major economic and industrial reforms and integrates itself with the global economy, the hydrocarbon sector – more than ever before – will occupy the driver’s seat. With the reforms package formulated and high growth expected in all economic sectors, the demand for petroleum products is projected to grow at a compound increment of about 7% ( Source: Government of India). In absolute terms, the demand for petroleum products in financial year 2006/07 witnessed a 5.9% increase. Sales grew from 113.21 million metric tonnes (MMT) in 2005/06 to 119.85 MMT in the following year. The developed world, particularly Europe, has not added to refining capacity in recent years. Environmental concerns may even shut down some existing facilities. According to the Petroleum Planning & Analysis Cell (PPAC), world refining capacity registered an increase of 3.28 million barrels per day during the four-year period, 2003/06. Significantly, India, China and the US have been the three largest contributors to this addition. Between them they have cornered 84% of this increase. According to International Energy Agency (IEA) predictions India, sitting mid-way across the globe, has a geographical advantage and could become the refining hub of the world. To take advantage of the strategic location, Indian refiners are expected to add 112 million metric tonnes per annum (MMPTA) to their existing 149 MMPTA refining capacity, by 2012. This is expected to exponentially continue, paving the way for further major policy changes which would make the oil industry even more globally competitive. While the PSU oil marketing companies still hog the lion’s share in petroleum marketing, a sea change is taking place. Oil fields have been opened for exploitation by private companies – both foreign and Indian. Similarly, refining and, to some extent, marketing of petroleum products have also been thrown open to private players.
(US$ 26.86 billion) while profit after tax (PAT) increased to Rs. 2355.88 crore (US$ 588.97 million) in the financial year 2006/07.
Achievements
BPCL today boasts a network of operations that includes 347 distribution locations and sales offices, 6400 gas stations and more than 2060 liquefied petroleum gas (LPG) distributors. This involves an extensive range of activities – from maintaining inventories and performing refinery plant maintenance through to disseminating human resource policies and keeping the kitchen stoves lit in homes and millions of cars on the road. The London-based Brand Finance has listed BPCL in the seventh position among India’s Top 50 Most Valuable Brands. In the latest Fortune Global 500 list, the company moved up to 325 from its previous ranking of 368; it also figured prominently in the PLATTS Top 250 energy companies rankings. Its shelf of trophies is second to none. The company recently bagged the Avaya-Economic Times Customer Responsiveness Award in the PSU genre. The Association of Business Communicators of India (ABCI) conferred the prestigious Gold Award to the BPCL website while Silver and Bronze awards were picked up by the BP Journal and the company's Annual Report in 2006/07. In the same year, for implementing best practices in Health, Safety and Environment, BPCL won several awards, among them the coveted Annual Greentech Environment Excellence Award in the petroleum refinery sector for outstanding achievement in environment management. In recognition of the corporate social responsibility the company has discharged, BPCL was adjudged the Most Trusted Oil Company by TNS Global in 2007.
Public sector oil companies are now allowed to form joint ventures with the private sector. Import of products, hitherto canalised through PSU’s has been deregulated. Customs and excise duty structures have been rationalised. Petroleum products have emerged as the largest merchandise exported from the country. Gross exports of petroleum products was 32.4 MMT in 2006/07 valued at US$18.60 billion (Rs. 74,400 crore) and in the first seven months of the current fiscal – up to October 2007 – it had already crossed 23.4 MMT valued at US$14.60 billion (Rs. 58,400 crore) (Source: Ministry of Commerce). In this market scenario, public sector petroleum producing, refining and marketing companies must rise to new challenges. They must build up adequate refining capacity, update technologies to meet the predominant demand for middle distillates and improve the quality of products to make them environment-friendly and globally competitive. BPCL stands tall as India’s second largest petroleum marketing company. It recorded a group sales turnover of Rs. 107,452.27 crore
History
Bharat Petroleum Corporation traces its history to 1928 when the Burmah Shell Oil Storage & Distribution
Company of India was incorporated in England to enter the petroleum products business in India. Given the international backing of Shell the business of the company grew substantially. It had soon achieved the leadership position in India. In 1952, Shell and Burmah Oil Company created Burmah Shell Refineries and set up a green field refinery in Mumbai. The entire operations of Burmah Shell in India were nationalised in 1976 and the refinery and marketing companies were merged to form Bharat Petroleum Corporation Limited. The markets were growing slowly. Fifteen years after its formation, liberalisation was introduced. The economy was being freed and licenses for several sectors were no longer required. The dormant Indian industrial juggernaut woke up. The new opportunities brought vigour on Indian roads. Along with it came a new breed of cars. Gas stations began to get crowded. Some decades earlier, in the mid-1950s, liquefied petroleum gas had been launched as a cooking fuel. Between the two BPCL hummed with activity. The organisation structure of BPCL has since been revamped and six new Strategic Business Units (SBUs) have been created. They are Refinery, Retail, Industrial & Commercial, Lubricants, Aviation and LPG. The new structure is based on business processes, is flexible, more responsive to external changes, has fewer layers, and above all, ensures a much higher customer focus.
diversified into crude oil exploration and production. This step bridged an important gap by offering both, an opportunity for product security and cost-advantage to the company.
Promotion
BPCL communicates with its customers through a series of above-the-line activities using television, outdoor and the internet. In addition, it participates in exhibitions, offers sponsorships at relevant forums and creates market promotions to enhance brand visibility. Bharat Petroleum pioneered the concept of petrol-station located convenience stores in the country. Called In & Out, these stores go a long way in meeting customers' convenience needs on the road. The fact that they remain open late into the night, when most other stores are closed, is significant help. The product mix at these outlets extends from light snacks and a can of an aerated beverage for the hungry traveller, to breads, milk and personal care products. Some of the stores vend frozen foods, greeting cards, music and gift items. The company also introduced the concept of a co-branded credit card. Today over 1500 Bharat Petroleum pumps provide card facilities. In addition to this, selective outlets also offer a waiver of the fuel surcharge on cards issued by several banks including HDFC, SBI, Standard Chartered and HSBC. To reach out to audiences, BPCL has tapped into the popularity of two young and dynamic brand ambassadors – cricketer Mahendra Singh Dhoni and Formula One speedster Narain Karthikeyan to endorse BPCL brands – MAK and Speed.
The company's twin retail offerings – Speed, its premium petrol and Hi-speed, its diesel – have become brand ambassadors for its high-end product line. The MAK range of lubricants caters to the automotive and industrial segments. Some 23 million Indian kitchens use Bharatgas; while Bharat metal cutting gas, an industrial cylinder brand, provides efficient and low-cost metal cutting solutions to the construction industry.
Recent Developments
The years 2006/2007 witnessed several milestones for the company. The LOBS (Lube Oil Base Stock) plant was commissioned at the Mumbai refinery and the erstwhile Kochi Refineries Limited (KRL) was merged with BPCL. Post-merger, the online blender was commissioned to blend petrol and diesel to meet BS-II and EURO-III specifications. The Retail SBU made its international debut in Bhutan with the inauguration of a BPCL outlet in August 2007. This opened a fresh chapter in petroleum products marketing with a new partner, Damchem Petroleum, in the scenic town of Paro at Druk-Yul in Bhutan. The LPG SBU is in the process of establishing a storage, bottling and distribution facility in Nairobi, Kenya. When fully operational, it will offer BPCL the opportunity to cater more extensively to the African market and extend its expertise in the international arena. In India, the company’s refinery modernisation project is being implemented at a cost of Rs.1831 crore (US$ 457.75 million). Besides improving distillate yield and energy efficiency, the project will enhance its crude oil refining capacity from 9 million metric tonnes to 12 million metric tonnes per annum. In October 2006, with the incorporation of Bharat PetroResources Limited, BPCL
Brand Values
The three cornerstones of BPCL's success have been innovation, care and reliability. These have been ingrained in every aspect of the company's offerings. The company treats its customers with respect and humility. At its gas and service stations smartly turned out attendants greet patrons with a warm smile. The courtesy brings many back over and over again. Indeed, for several clients it is BPCL – or nothing.
Product
This elite Fortune 500 Company’s products range from the kerosene used to light a wick in a remote village to the fuel used to power aircrafts. The end products of BPCL touch the lives of all Indians. The company refines and markets aviation turbine fuel, petrol, diesel, fuel oils, kerosene, greases and lube oil based stock. BPCL’s industrial and commercial businesses provide benzene, toluene, furnace oil, hexane, mineral turpentine oil and bitumen that keep the wheels of industrial progress turning.
www.bharatpetroleum.in
THINGS YOU DIDN’T KNOW ABOUT
Bharat Petroleum Corporation
Valued at over US$ 2.46 billion (Rs. 9840 crore) BPCL is India’s seventh most valuable brand BPCL ranks 325th in the Fortune 500 listing To support the economically and socially weaker sections of society, BPCL involves itself with activities like rain water harvesting, blood donation drives, vaccination camps and promotion of alternate fuel sources BPCL recently commissioned wind mills with a combined capacity of 5 MW in the Kappatguda hills of Karnataka To help deserving Indian students complete post-graduate studies in India and abroad, the Bharat Petroleum Scholarships for Higher Studies was initiated in 2003/04
doc_253912028.pdf