Submitted To:Submitted By:Mr.

Anand Nayyar
Manjeet Singh
Professor
MBA-1st (A)
1

KCL-IMT
3025

Contents
S.N
o
1.

Name

Page No.

Student Declaration

3-3

2.

Guide Certificate

4-4

3.

Company Profile

5-6

4.

Company History

7-8

5.

Logo of the Company

9-9

6.

Product & services of the Company

10-15

7.

SWOT Analysis of the Company

16-16

8.

Competitors of the Company

17-20

9.

Total Revenue in 2012

21-21

10.

Awards/Recognitions of the Company

22-23

11.

Mission & Vision of the Company

24-24

12.

Major Ongoing Projects

25-28

13.

Conclusion & Bibliography

29-29

STUDENT DECLARATION

This project on Hindustan Petroleum Corporation Limited has

been under taken as a fulfillment of the requirement for the award the
degree of Master of Business Administration of KCL Institute of
Management & Technology, Punjab Technical University under
supervisions of Mr. Anand Nayyar. Further we declare that this project is
our original work we analysis and finding for academic purpose only. This
project has not been submitted in any seminar or elsewhere for any award
of any degree.

Manjeet Singh
MBA-1st (A)
3025

Guide certificate

This is to certify that Manjeet Singh, Roll No. - 3025, Session 2012-14, a
student of Master Degree of Business Administration of KCL Institute of
Management & Technology has prepared his project report entitled
Hindustan Petroleum Corporation Limited under my supervision.
To the best knowledge he has exposed his good effort to make his project
more analytical and purposeful. His attitude and interest shown in the
completion of project report is highly appreciable. I wish him success in all
his future endeavors.

Signature of the Guidance

4

(..)

Company Profile
HPCL, a fortune 500 company, is one of the major integrated oil refining and marketing
companies in India. It is a Mega Public Sector Undertaking (PSU) with Navaratna
status.

HPCL accounts for about 20% of the market share and about 10% of the nation's
refining capacity with two coastal refineries, one at Mumbai (West Coast) having a
capacity of 6.5 Million Metric Tons Per Annum (MMTPA) and the other in
Vishakhapatnam (East Coast) with a capacity of 8.3 MMTPA. HPCL also holds an equity
stake of 16.95% in Mangalore Refinery & Petrochemicals Limited (MRPL), a state-ofthe-art refinery at Mangalore with a capacity of 9 MMTPA.

HPCL owns the country's largest Lube Refinery with a capacity of 335,000 Metric Tons
which amounts to 40% of the national capacity of Lube Oil production. HPCL has given
India a firm ground in this sector with its world class standard of Lube Base Oils.
Presently HPCL produces over 300+ grades of Lubes, Specialties and Greases.

HPCL has earned "Excellent" performance for fifteen Consecutive years up to 2005-06,
since signing of the first MOU with the Ministry of Petroleum & Natural Gas. HPCL won
the prestigious MOU Award for the year 2007-08 for Excellent Overall Performance,
and for being one of the Top Ten Public Sector Enterprises who fall under the 'Excellent'
category. HPCL's performance for the year 2008-09 also qualifies for "Excellent" rating.

HPCL, over the years, has moved from strength to strength on all fronts. The refining
thru put has increased three fold between 1984/85 to 2007/08, rising from 4.47
MMTPA in 1984/85 to 15.76 MMTPA (2009-10).

Consistent excellent performance has been made possible by highly motivated

workforce of over 11,360 employees working all over India at its various refining and
marketing locations. View Past Annual Reports to know more about HPCL

HPCL continually invests in innovative technologies to enhance the effectiveness of

employees and bring qualitative changes in service. Business Process Re-Engineering
exercise, creation of Strategic Business Units, ERP implementation, Organizational
Transformation, Balanced Score Card, Competency Mapping, benchmarking of
refineries and terminals for product specifications, ISO certification of Refineries and
Supply Chain Management are some of the initiatives that broke new grounds.

HPCL has successfully integrated Information Technology in its activities at different

levels. The Enterprise Resource Planning (ERP) system is now operational on
J.D.Edwards, an Oracle product, across the Corporation.

Company History
Mumbai Refinery-

HPCLs Mumbai refinery, one of the most complex refineries in the country, is
constructed on an area of 321 acres. This versatile refinery which is the first of Indias
modern refineries, symbolizes the countrys industrial strength and progress in the oil
industry. Mumbai Refinery has grown over the years as the main hub of petroleum
products. The refinery has reached to present level through several up gradation and
restructuring processes. A chronological summary of the developments is provided
below:

M/s Esso commissioned in 1954 with a crude processing capacity of 1.25 MMTPA.
Lube refinery, Lube India Ltd, was commissioned in 1969 with a capacity of 165 TMTPA
of Lube Oil Base Stock (LOBS) productions.
Crude processing capacity increased to 3.5 MMTPA during 1969
Government of India took over Esso and Lube India and formed HPCL in 1974.

Expansion of fuels block was carried out by installation of new 2 MMTPA crude units in
1985.
Second expansion of Lube Refinery took place to increase the capacity of the refinery to
335 MMTPA, so far the largest in India.
The current installed capacity of the refinery is 6.5 MMTPA

Visakh Refinery-

The Visakh Refinery is also an important contributor to HPCL's Petroleum products

requirements Visakha Refinery was commissioned with an installed capacity of 0.65
Million Metric Tons Per Annum (MMTPA) by Caltex Oil Refining (India) Ltd. in 1957.
This was one of the first major industries of Visakhapatnam and first oil refinery on the
East Coast. After the nationalization, HPCL has transformed itself into a mega Public
Sector Undertaking and it is second largest integrated oil company in India. The
summary of development of the refinery is given below:

The first East Coast Oil refinery was commissioned as Caltex Oil Refining India Ltd.
(CORIL) in 1957 with a crude processing capacity of 0.65 MMTPA.
The refinery was subsequently taken over by Government of India in 1976 and merged
with HPCL in 1978.
The refinery's crude refining capacity increased to 4.5 MMTPA during the first
expansion in 1985.

The refinery's crude refining capacity increased to a further 7.5 MMTPA during the
second expansion in 1999 and is currently 8.3MMTPA effective April 2010.
Diesel Hydro desulphurization (DHDS) project was commissioned in the year 2000 to
meet BS-I/II specification of diesel. The facilities were further augmented in 2005 by
addition of 2nd Reactor in DHDS unit for supplying BS-III grade diesel

Logo of the Company

Product &
Company

Services

Of
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Refineries-

Without refining, the rich resources of crude petroleum of nature would remain latent.
Value-added products from crude petroleum like petrol, diesel, kerosene, liquefied
petroleum gas, naphtha and many more products would not be available for growth and
development of a nation.

HPCL refineries upgrade the crude petroleum into many value-added products and over
300 grades of lubricants, specialties and greases. The Lubricating Oils Refinery set up at
Mumbai is largest lube refinery in India. It produces superior quality lube base oils.

The offsite product handling facilities of refineries at Mumbai and Vishakhapatnam has
been automated. Projects have been implemented and facilities upgraded to produce
green fuels like unleaded petrol and low sulphur diesel. And Euro III & Euro IV works
are in progress. The refineries have been benchmarked by an international agency for
various performance parameters.

Numerous awards have been bestowed on both the refineries in recognition of the
efforts in the field of energy conservation, environment and safety.

This section showcases about our Refineries: Its History, Performance, New Projects,
Research & Development, and Awards.

Aviation-

11

Hindustan Petroleum (as Esso and Caltex prior to 1974) has been providing aviation
refueling services at various airports in India for more than half a century. Today, we
provide fueling services to the aviation industry through our business unit, "HP
Aviation". Our network covers all the major airports in India and is continuously
expanding.

Our fueling service of Aviation Turbine Fuel meets and exceeds the stringent
International regulations for handling Jet fuel.

The accolades and accreditation earned shows the commitment to quality service
encompassing all areas of Operations, Infrastructure and Skilled Manpower.

We take pride in calling our Aviation Fuel Stations as Aviation Service Facilities (ASF)

................. More than just Fuel

Bulk Fuels & Specialties12

The Bulk Fuel & Specialties Business unit caters to marketing of Bulk fuels & Petroleum
products directly to Industrial consumers like power plants, chemicals, fertilizers,
shipping companies and airlines.

This unit is also involved in exports of Bulk fuels and finished Petroleum Products.

International trade-

This section showcases about our International Marketing, Crude supplies and Our
Offerings. Please navigate to various information using the links.
The activities of IT&S relate to
Crude oil imports,
Petroleum Product Imports / Exports,
Shipping,
Production planning for Refineries,
13

Supplies for domestic Markets,

Product exchange with other Indian Oil Companies and Oil price risk management.

LPG - HP GAS-

HP Gas, the HPCL brand of LPG, is what keeps the fire burning in millions of Indian
homes.
Bottled at 44 LPG Bottling Plants throughout the country with a total capacity of over
3610 thousand metric tons per annum (TMTPA), HP Gas reaches you after thorough
checking at every stage right from bottling to distribution. That is what makes HP Gas
synonymous with Safety.

Lubes - HP LUBES-

HP Lubes is an integral part of Hindustan Petroleum Corporation Limited, one of

India's frontline oil majors, committed to providing energy and fueling growth in every
significant area of development.
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Retail-

At HPCL Retail Outlets (Petrol Pumps), (View Map of our Petrol Pump Locations) we
believe in maintenance. Maintaining not just the vehicle, but a steady relationship with
our consumer. And to do so, provide better and efficient services. We take care of not
only your fuelling needs, but also complete vehicle care. We stock related products like
tyres, batteries and accessories, so you don't have to go shop-hopping. All our other
value-added services ensure that your vehicle is well looked after.

Exploration & Production-

15

"HP-E&P is world class and technically proficient, with global presence delivering
superior returns from a sustainable balanced portfolio with highest commitment to
HSSE* and Society"

Joint Ventures-

HPCL-Mittal Energy Ltd. (HMEL)

Hindustan Colas (HINCOL)
CREDA-HPCL Biofuel Limited (CHBL)
South Asia LPG Co Pvt. Ltd. (SALPG)
Bhagyanagar Gas Limited (BGL)
Aavantika Gas Limited
Petro net India Limited (PIL)
Petro net MHB Limited (PMHBL)
Mangalore Refineries and Petrochemicals Limited (MRPL)
Rajiv Gandhi Institute of Petroleum Technology (RGIPT)

16

SWOT Analysis of the Company

Strength
1. Indias major oil and Gas Company
2. Operates largest Lube refinery in India
3. Large product portfolio
4. Owns and operates the largest Lube Refinery in India producing Lube Base Oils of
international standards

Weakness
1. Legal issues
2. Employee management
3. Human right issues, rehabilitation issues
4. Environmental hazards from wastes

Opportunity
1. Increasing fuel/oil prices
2. Increasing natural gas market
3. More oil well discoveries

Threats
1. Government regulations
2. High Competition from other players

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Competitors of the Company

1. Bharat Petroleum

Bharat Petroleum Corporation Limited (BPCL), a fortune 500 oil refining, exploration
and marketing PSU with Navratna status. Following nationalization in 1976, BPCL
changed its gears and embarked upon a Rapid growth path. Turnover, profitability and
financial reserves grew by leaps and bounds.
For Bharat Petroleum, commitment of its employees is a critical resource. Fully realizing
that only a satisfied employee will put his best foot forward with the customers; Bharat
Petroleum has taken many steps to make the organization a Great Place to Work.

Bharat Petroleum fosters effective value-based HR processes for development of people

and their organizational capabilities with a view to provide them with a competitive edge
and also to realize their personal vision in tandem with the corporate vision. The thrust
areas include:
Performance Management which links business goals with individual performance
goals.
Recognizing competencies and capabilities of the staff through Competency Modeling to
help identify and place the right person in the right job.

18

Identifying competency gaps and bridging such gaps through appropriate training and
developmental programmers.
Multi-skilling to encourage employees to take up new initiatives in the areas of
Enhanced Fuel Proposition, Add-on Stores, One Stop Truck Shops, Grocery and Fast
Food Stores.

2. IOCL

Indian Oil is India's flagship national oil company with business interests straddling the
entire hydrocarbon value chain from refining, pipeline transportation and marketing
of petroleum products to exploration & production of crude oil & gas, marketing of
natural gas and petrochemicals. It is the leading Indian corporate in the Fortune 'Global
500' listing, ranked at the 83rd position in the year 2012.

With over 34,233-strong workforce, Indian Oil has been helping to meet Indias energy
demands for over half a century. With a corporate vision to be the Energy of India,
Indian Oil closed the year 2011-12 with a sales turnover of Rs. 4,09,957 crore ($ 85,550
million) and profits of Rs. 3,955 crore ($ 825 million).

At Indian Oil, operations are strategically structured along business verticals Refineries, Pipelines, Marketing, R&D Centre and Business Development E&P,
19

Petrochemicals and Natural Gas. To achieve the next level of growth, Indian Oil is
currently forging ahead on a well laid-out road map through vertical integration
upstream into oil exploration & production (E&P) and downstream into petrochemicals
and diversification into natural gas marketing and alternative energy, besides
globalization of its downstream operations. Having set up subsidiaries in Sri Lanka,
Mauritius and the United Arab Emirates (UAE), Indian Oil is simultaneously scouting
for new business opportunities in the energy markets of Asia and Africa.

3. Reliance Industries

RIL commenced reporting, annually, on its triple-bottom line performance, from FY

2004-05. All its sustainability reports are externally assured and are GRI checked. The
maiden report received in-accordance status from GRI and all subsequent reports are
GRI Checked A+ application level reports.

RILs maiden sustainability report, titled Life, is the first sustainability report from the
Indian Oil & Gas sector and was based on the internationally accepted Global Reporting
Initiative's (GRI) Guidelines 2002. Subsequent reports were based on G3 guidelines the set of sustainability reporting guidelines launched by GRI in October 2006.

From FY 2006-07, in addition to referring GRI G3 guidelines, RIL refers The American
Petroleum Institute / The International Petroleum Industry Environmental
Conservation Associations (API/ IPIECA) guidelines and The United Nations Global
20

Compact (UNGC) principles and have aligned its sustainable development activities
with the Focus Areas of The World Business Council for Sustainable Development
(WBCSD). Further from the FY 11-12, RIL adheres to the GRI 3.1 Guidelines including
the Oil & Gas Sector Supplement and is aligned with the National Voluntary Guidelines
on Social, Environmental and Economic responsibilities of business. RIL articulates its
Sustainability Vision, Mission & Values, the Sustainability Strategy and Road Map in its
report for FY 2007-08

4. ONGC-

The Oil and Natural Gas Corporation Limited (ONGC) is the largest oil and gas
exploration company in India and dominates the hydrocarbon market in India. ONGC
was started by the Government of India in the mid-1950 and is state owned. ONGC is
state owned but management-wise ONGC is its own private company and not run by the
government. Since the GoI started ONGC in the mid 1950s, they have sold some of its
share of the company, but the GoI and two state agencies own about 85% of ONGC.
ONGC has an 84 percent market share of crude oil and gas production in India. This
is a staggering lead over any competitor in India, but on a global market ONGC is not
the largest oil and gas producer.

21

Total Revenue in
2012
Name

Year (2012)

Hindustan
petroleum
Corporation Limited
Bharat
Petroleum
Corporation Limited
Indian
Oil
Corporation
Limited
Oil
&
Natural
Gas
Corporation Limited

38.885 Billions (us $)

44.581 Billions (us $)
86.015 Billions (us $)
30.745 Billions (us $)

Billions (us $)

HPCL
BPCL
IOCL
ONGC

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Awards / Recognitions of the Company

HPCL ranks 336 in Fortune Global 500 list

Hindustan Petroleum Corporation Ltd. HPCL is ranked 336th position during 2010-11
in the prestigious list of Fortune Global 500 Companies.
HPCL ranks 1054 in Forbes 2000 list

Hindustan Petroleum Corporation Ltd. HPCL is ranked 1054 position during 2010-11 in
the prestigious list of Forbes 2000.
Scope CSR Award for the Year 2009-10

HPCL received the SCOPE Gold Trophy Meritorious Award for Corporate Social
Responsibility & Responsiveness from Her Excellency the President of India Smt.
Pratibha Devisingh Patil.
Golden Peacock Award for CSR 2011

HPCL received the Golden Peacock Award for Corporate Social Responsibility for the
year 2011 during the 6th International Conference on Corporate Social Responsibility
organized at Delhi on April 29, 2011.
Readers Digest Trusted Brand Gold Award 2011

HPCL has been conferred with our service brand, Club HP with the Gold award for the
6th consecutive year at the 13th Readers Digest Trusted Brand survey.
23

Excellence in Quality Award

HPCL has been conferred with Excellence in Quality award by M/s BOSCH for
supplies of Lubricants for their Aftermarket Sales. This award is the result of consistent
performance in meeting the customers requirement on Quality & Delivery.
Golden Peacock HR Excellence Award

HPCL has been conferred with the Golden Peacock HR Excellence Award for the year
2011. The Golden Peacock HR Excellence is awarded to Organizations that follow
excellent Human Resources practices and strategies which are directly contributing to
the business.
Indira Gandhi Rajbhasha Puraskar

HPCL has been conferred with Indira Gandhi Rajbhasha Puraskar by Govt. of India,
Ministry of Home Affairs - Rajbhasha Vibhag for the year 2009-10 under PSU category
for excellent performance in B Region for the fourth consecutive year.
CIO 100 Award

HPCL bagged the CIO 100 Award for the sixth consecutive year in recognition for
using information technology in innovative ways to deliver business value, whether by
creating competitive advantage, optimizing business processes, enabling growth or
improving relationships with customers. HPCL received the award for B2B Integration
for Oil Exchange with other oil companies.

24

Mission & Vision of the

Company
Our Mission

"HPCL, along with its joint ventures, will be a fully integrated company in the
hydrocarbons sector of exploration and production, refining and marketing; focusing on
enhancement of productivity, quality and profitability; caring for customers and
employees; caring for environment protection and cultural heritage. It will also attain
scale dimensions by diversifying into other energy related fields and by taking up
transnational operations."

Our Vision

To be a World Class Energy Company known for caring and delighting the customers
with high quality products and innovative services across domestic and international
markets with aggressive growth and delivering superior financial performance. The
Company will be a model of excellence in meeting social commitment, environment,
health and safety norms and in employee welfare and relations.
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Major Ongoing Projects

In order to strengthen core processes and modernize, HPCL has developed
ambitious plans for expansion and diversification in the areas of increasing energy
demand, technological upgradation and environment management. HPCL has proposed
capital expenditure (including equity investments in Joint Ventures) of Rs. 11487 Crores
during the eleventh plan. Currently, several projects are in progress in different parts of
India. Here is a brief introduction to these projects.

Diesel Hydro Treating (DHT) at Mumbai & Visakhapatnam refineries:

Resitement of Visakh Terminal:
Guru Gobind Singh Refinery Products Evacuation Project:
Ennore Terminal Project:

In the recent past, HPCL has commissioned some major projects like:

Mundra-Delhi Pipe Line (MDPL): A 1056 KM Product pipeline connecting the port of
Mundra in Gujarat to Delhi with Tap-offs in between. Completed in 36 months at an
cost of Rs. 1757 Crores. Dedicated to the nation on 3rd Feb 2009

LPG Cavern Storage at Visakhapatnam by SALPG, a Joint Venture of HPCL: 60000 MT

of LPG storage at a cost of Rs. 333 Crores, Commissioned in January 2008.

Visakh-Vijayawada-Secunderabad Pipe Line (VVSPL): Length of Pipeline: 571 Km, Cost:

Rs. 841 Crores, Commissioned in 2002.

26

Diesel Hydro Treating (DHT) at Mumbai & Visakhapatnam Refineries:

HPCL is setting up Diesel Hydrotreater Units of 2.2 MMTPA each with associated
facilities at Mumbai Refinery (MR) and Visakhapatnam Refinery (VR) to meet Euro-IV
specifications for diesel as per the latest Auto Fuel Policy.

The Environmental clearance for the DHT projects for Mumbai Refinery and Visakh
Refinery has been obtained.

The Environmental Statement of Visakh Refinery for the FY 2010-11 has been submitted
to Andhra Pradesh Pollution Control Board (APPCB). View the Compliance Status of
Environmental Clearance Stipulations for DHT VR Project.

The Revised cost of the project is estimated at INR 2174 Crores for Mumbai Refinery
and INR 2730 Crores for Visakhapatnam Refinery. The projects are expected to be
completed by September 2012.

Resitement of Visakhapatnam Terminal

In order to provide additional ground area to Visakh Refinery for setting up facilities to
produce green fuels, it is proposed to shift the adjacently located marketing facilities
consisting of POL terminals and LPG Plant. The scope of the green field project consists
of setting up of new Black oil, White oil and LPG facilities in the plots acquired from
VPT.
27

Black Oil facilities include setting up of about 94,000 KL storage tanks and two tank
truck gantries of 8 bays each to handle Bitumen, Furnace oil (FO), Low Sulphur Heavy
stock (LSHS), Light Diesel Oil (LDO) Jute Batching Oil (JBO) and High Flash HSD (HF
HSD).

White Oil facilities include storage of about 1,68,000 KL Motor Spirit (MS), High Speed
Diesel (HSD), Naphtha & Aviation Turbine Fuel (ATF), two tank truck loading gantries
of 8 bays each and a single spur T/W gantry to load 46 BTPN tank wagons.

LPG facilities include setting up of mounded storage of about 4,400 MT capacities to

store LPG, Auto LPG and Propylene, a single spur tank wagon gantry to load 32 BTPN
TG wagons and bottling facilities of capacity 88,000MTPA.

The total project cost is about Rs 756 Cr. and the completion schedule is as under:
Black Oil Terminal: Commissioned in September 2010
White Oil Terminal: December 2011
LPG Facilities: Mechanically Completed in June 2011

Guru Gobind Singh Refinery Products Evacuation Project (GGSRPEP)

HPCL Mittal Energy Limited, a Joint Venture company of HPCL, has set up a 9 MMTPA
grass root refinery near Bathinda, Punjab. HPCL has the marketing rights for the
Petroleum Products from this refinery.

Following cross country pipelines along with associated facilities have been laid for
facilitating Product Evacuation, namely.

28

Raman Mandi - Bathinda Pipeline (10 dia, 30 km long with a capacity of approximately
1.37 MMTPA). This has been commissioned in December 2011.

Raman Mandi - Bahadurgarh Pipeline. (18 dia, 250 km long with a capacity of
approximately 4.71 MMTPA) Pre commissioning activities has been completed in July
11 and the pipeline would be commissioned on receipt of products from HMEL refinery.

The Environmental Clearance for the project has been obtained. View the latest
Environmental Compliance Statement for the project submitted to MOEF in line with
the requirements.

Expenditure as on 31.03.12 for the project is Rs. 474.52 Crores against approved project
cost of Rs. 510.0 Crore.

Ennore Terminal

HPCL is setting up a Greenfield Oil Terminal at Ennore, located in northern outskirts of

Chennai City. Ennore is approx. 30 Kms. away from Chennai City and falls under
Tiruvalur district of Tamil Nadu. This is relocation of the existing facilities at
Tondiarpet, Chennai.

The terminal shall have tank ages of capacity 1, 40,000 KL for storage and dispatch of
products of Motor Spirit (MS), High Speed Diesel (HSD), Superior Kerosene Oil (SKO)
and Aviation Turbine Fuel (ATF).

Conclusion
29

In our endeavor to effectively analyze the performance of our training and mentoring
programs, we have developed robust and objective performance management processes
which strive to effectively tread through our employees hopes and aspirations. It is all
about endorsing an empowering environment which takes you to your best. And we'll
make sure you get valuable feedback, coaching, and knowledge from the people you
work with.

Career progression at HPCL is ensured through objective appraisal of performance. Our

performance appraisal process is based on Balanced Scorecard Approach and is more
than just assessment. It enables the employees to identify and develop their strengths
and weaknesses and align them towards organizational objectives through counseling,
mentoring and additional inputs through specific training programmers.

Bibliography
1.
2.
3.
4.

http: //google.co.in
http://scribd.com
http://hindustanpetroleum.com
http://www.wikipedia.com

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