Balaji institute of Telecom & Management

SRI BALAJI SOCIETY

BALAJI INSTITUTE OF TELECOM & MANAGEMENT

A PROJECT REPORT ON

“OPPORTUNITIES FOR HPCL OUTLETS IN ALLIED

RETAIL BUSINES (ARB)”

PREPARED FOR

HINDUSTAN PETROLEUM CORPORATION LIMITED

SUBMITTED TO SUBMITTED BY
PROF. Col BHARAT JHINGON GAURAV SHUKLA

DIRECTOR, BITM TM1413335 (2014-16)

SRI BALAJI SOCIETY PGDM MARKETING


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CONTENTS

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ACKNOWLEDGEMENT

A large number of individuals have contributed to the project. This is a

humble attempt to sketch down the contribution of all those persons who
have directly and indirectly given their precious time and proper guidance for
making the report.

I offer my profound gratitude to my project as well as organization mentor

Mr. Sanjiv Kumar (Dt .manager) for making as a trainee and giving me his
elderly affection and practical wisdom that enabled me to complete my
project honourably and in time in HPCL- Loni, Hadapsar At Pune.

I also owe my sincere thanks to all those who have supported me including
my college mentor Prof. P.Sukhatme. I owe a lot to my college BITM, Pune
and worthy faculty for giving me right type of academic initiation.

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Declaration

I, Gaurav Shukla student of Balaji Institute of Telecom & Management , Pune

hereby declare that the project entitled as ‘‘Effect of Allied Retail Business
(ARB) on HPCL Petroleum ’’under the guidance of ‘Mr. Sanjiv kumar
(Dt.Manager)’ and submitted to ‘Balaji Institute of Telecom & Management’ ,
as an integral part of the Post Graduate Diploma in Management , is
exclusively a bonafide and original work done by me during the academic year
2014-16. No part of this report has been submitted to anyone at any time
before.

Date:

Place: Pune Gaurav Shukla

TM1413335

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OBJECTIVES

1). ‘‘Effect of Allied Retail Business (ARB) on HPCL Petroleum ’’

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EXECUTIVE SUMMARY

During the year 2013-2014, several activities were initiated to

realize the retail vision. The highlights of performance are:

 Retail Business Unit recorded a growth of 8.7 %growth in

MS and 6.6 % growth in HSD

More than 723 new retail outlets were commissioned thereby

making the total network of over 12869 outlets
In developed countries, allied retail business forms up to 60% of the total
revenue earned by fuel stations.HPCL has won the coveted
Reader's Digest Trusted Brand Gold Award 2013 for the eighth
consecutive year, thus strengthening the customer’s trust
towards our 13000 outlets. We have also won Star Retailer
award for the last seven years. The awards we received were
recognition of our initiatives and accomplishments in Branding,
Loyalty & Marketing. Tomorrow belongs to those who prepare
for it today.
Current profile includes generating additional revenues for Retail
through Non-Fuel opportunities e.g. ATMs, Eateries, Convenience
stores etc. Profile also includes Business Development through NEW
strategic tie-ups with leading retail brands and creating win-win-win
situation for our customers, partner brand and 11000+ strong retail
network of HPCL.
HPCL plans to set up 500 of these Hamara Pumps for the rural markets
in the near future. At present, there are 50 such rural pumps.
Mr. Chaudhry said have HPCL has tied up with 15 banks who set up
their ATMs in urban stations. The revenue sharing agreement ranges
from fixed rentals to a portion of the turnover in case of fast food
counters. In some of its urban fuel stations, fast food chains like US
Pizza and Cafi Coffee Day have opened shop.

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HPCL has also embarked on a beautification drive of all its petrol

stations to bring it under the Club HP brand umbrella.

.Three reasons which were mostly highlighted were:

 Salary
 Growth opportunities
 Employee benefits

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INTRODUCTION

HINDUSTAN PETROLEUM CORPORATION LIMITED (HPCL) is a Government of

India Enterprise with Navratna Status. It’s an oil industry which was found in
1974. HPCL is a Fortune Global 500 company and is the 10 th Most Valued Brand
in India. HPCL is having 20% Marketing share in India among PSU’s (PUBLIC
SECTOR UNITS) and a strong infrastructure. It operates 2 major refineries
producing a wide variety of petroleum products: one in Mumbai, Maharashtra
(west zone) which is also the Head Office of HPCL and second in
Vishakhapatnam (east zone) .It holds equity stake of 16.95% in Mangalore
Refinery & Petrochemicals Limited (MRPL).

The Marketing network of HPCL consists of 13 Zonal offices in Major cities and
101 Regional offices. On the financial front the turnover has grown from
Rs.2687 crore in 1984-85 to impressive Rs.132670 crore in financial year 2010-
11. HPCL also owns and operates the largest Lube refinery in India producing
Lube Base oil of International Standards. This Lube refinery accounts for over
40% of the India’s total Lube Base oil production. HPCL is constructing refinery
at Bathinda, in the state of Punjab, as a Joint venture with Mittal Energy
Investment Pte. Ltd.

Its business units includes-Refineries, Aviation, Bulk-fuel, LPG, Lubes, Retail,

Trade, Joint ventures and E&P (exploration and production).

The main petroleum products of HPCL include:

1. PETROL – Petrol is known as Motor Spirit (MS) in oil industry, which is

marketed through its retail pump and is regularly used in personal
vehicles.
2. DIESEL - Diesel is known as High Speed Diesel (HSD) in oil industry. This
product is marketed through its retail pumps as well as terminal and
depots .It’s consumer’s are not only auto owner’s but also transport
agencies, industries etc.
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3. LUBRICANTS – HPCL is the market leader in lubricants and the associated

products. The product commands over 30% of the Market Share in this
sector. The popular brands of HP lubes are Laal Ghoda, Milcy, Thanda
Raja, Koolgard etc.

4. LPG – LPG is Liquefied Petroleum Gas which is used for household

purpose basically as a cooking gas and it’s in liquid form.

5. AVIATION TURBINE FUEL – ATF services is provided at various airports in

India for more than half century. HPCL facilitates to supply to JET A1 at
Indian Ports.

6. FURNACE OIL - It’s black oil which is used in ships.

The Loni- Hadapsar TERMINAL is basically involved in receiving, storing and

distribution of the Finished Products like MS, HSD, Furnace oil etc.

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MISSION, VISION AND QUALITY POLICY

 MISSION: The mission of HPCL is to enhance their productivity,

profitibity and quality of the products so that they can be the No.1 in Oil
Industry by taking into care the cultural heritage and the environment
and the customers and employee.

 VISION: The vision of HPCL is to be World Class Energy Company to be

known for its caring and delighting its customers with good quality
products in domestic and international market. The company will be
excellence in social commitments, environment, employee welfare and
relations, health and safety norms.

 QUALITY POLICY: The Company is committed to deliver “Quality

Petroleum Products” to the costumers on time, every time in order to
achieve “Total Customer Delight”. As it’s important for all companies to
obtain customer’s satisfaction.

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STRUCTURE OF ORGANISATION OF DIFFERENT

DEPARTMENT

Head
Office

North Central North East West South North West

Zone Zone Zone Zone Zone Zone

Loni-
Hadapsar
Terminal

Senior installation
manager (Mr. Sanjiv
Kumar)

Safety &
Planning & Maintenance Security
Finance Human Resource
Operations & Purchase Department Departmen
Department Department
Department t

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Branded Fuel

 Training ProgramsPower

 Turbojet

………..
[Non-fuel Business
HPCL has built a profitable Non-Fuel Business with wide range of facilities to
the customers . The non-fuel activities at the retail outlets include ATM,
take away food counter, “C” Store, vehicle accessories etc . This
business is managed through tie-ups with leading banks, Food Brands & OEMs

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 ]

 …………………………………………………………………………………………………………………………………………/

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HPCL has about 2000 Club HP outlets to ensure outstanding vehicle and
customer care.

 HPCL launched 25 Club HP Star outlets in 8 cities which are premier

category outlets.

 Over 763 dealers and 5633 dealermen were covered through various
training programs focussing on current business imperatives and
behavioural changes for delivering the Club HP promises.

 Unique training program titled Etiquettes Essentials, Management

Development Program and SOP Champs were conducted for
dealermen, forecourt managers and dealers to drive the importance
of quality, quantity, quick service, courteous behaviour and stress
free management among the dealers and dealermen who interact
with retail customers.

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 Scheme has been implemented.

 Several dealermen were provided computer education.

 A number of dealermen were recognized under the Spot & Reward

Scheme.
The Scholarship Scheme for Club HP dealermen and dependent
children was extended during the year to motivate the dealermen.

Customer Loyalty Programs

DriveTrack Plus, a flagship

product under our Loyalty Program, is accepted at more than 4000 retail
outlets and has a customer base of 75000 with card count of 4.0 lac. The
DriveTrack Plus program offers an unbeatable combination of control,
convenience, security and attractive rewards. This innovative payment
device is designed for efficient management of fleet, through greater
control over fuel consumption and operating costs. DriveTrack Plus also
offers fuel management and gifting solution to corporate and bulk buyers
of fuel.

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THE FUNCTIONS AT DIFFERENT DEPARTMENTS

ARE AS UNDER:-
1) Planning & Operational department
2) Maintenance & Purchase department
3) Finance department
4) Human Resource department
5) Safety & Security department

1). Planning & Operational department: - Planning is the first

and foremost activity of any organization. Rest all activity are
depended upon it.

No organization can survive for a long period without proper

planning of the different undertaking at a different department.
At every stage planning has to be done. First of all planning is
made relating to the goal of an organization and accordingly the
department at a different level plan and accomplishes the goal. In
the same way at HPCL also according to the requirement of the
dealer and consumption they plan for the future requirement.
Again here also they should be aware of the stock which is
available with them in the tanks, order received from customer,
goods in transit etc.
Their planning again depend upon the retail outlet i.e. their petrol
pumps, what is the quantity available with them, how much order
is received, how much they are going to receive the product from
head office etc. Here again they keep in mind the total market of
the region, like other retail outlets turnover their share in the
market and at what rate the requirement will increase. Here
planning changes every month.

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2). Maintenance & Purchase department:-Maintenance is also a

prime activity for any organization. At HPCL also they need to go
through the same. Here also maintenance is required for the fuel
tank, pipe lines both within the organization and also of those which
are coming from Loni port to HPCL, water tanks, motors, other
machinery etc. The fuel tank is used for 5 years for storage and then
after every 5 years maintenance is done for it. For that they need to
empty the whole tank and undertake the whole maintenance works
which include checking the thickness of the plate form outside,
inside, downward, checking of any leakage or weak area of the tank,
painting etc. There are two manholes in the tank which is kept open
for some days so that the gas which is present in it gets exhaust in
air. Also there are huge numbers of motors of 50 to 150 hp which
also require maintenance at regular interval of time. Pipe lines also
need maintenance because the whole activity is depend upon it only
that is flow of fuel from one place to another. Leakages and weak
area are identified and repaired.

3). Finance department: - Finance department is maintaining the

accounts, for income, expenditure, payment of custom and excise
duties, billing for cash and credit sales etc. Whatever the
requirements are there in the different departments first of all they
communicate to the finance department and as per the availability
of fund they inform to the relevant department. The company can
incur an expenditure of Rs.20000 per day for the relevant
requirement without any prior approval from head office, and
beyond Rs.20000 expenditure they need to go through the certain
procedure and approval of head office.

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4). Human Resource department: - The task of human resource

department is to provide the man power to the different
departments. There are requirement of different employees, labors,
some technical experts etc. The management according to the
requirement asks to the department to make arrangement for the
same. The recruitment process is also undertaken at this stage, right
from the receiving application to the final selection and the
placement of employees. As and when there is a requirement of man
power at different levels of the department, there works start right
from allotting task, timing, specialization etc.

5). Safety & Security department: - Safety here is the most

important key of the organization. Even a minute mistake can turn into
the big disaster. So various safety methods are adopted to avoid such
situation. Like right from the entering into the premises of HPCL there
is a strict restriction on carrying cell phones, match box, cigarettes, and
any gadgets that can lead to sparks etc. For employees also different
safety arrangements are taken. While going to their respective job they
used to wear safety helmet, Safety gloves, safety shoes etc and work is
undertaken by the expert’s supervision. They need to keep check on
the electricity part also as it also may turn disastrous, for that voltage
input and output is taken into the account. Fire extinguishers are kept
in abundance quantity everywhere. There is a siren also which
immediately informs to the employees if any fire breaks out. There are
two water tanks available in the premises.

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INFORMATION FLOW

Informational flow plays an important part in an organization to communicate

easily with other departments and get proper, correct and easy way to work in
big organization such as HPCL.

In HPCL the information flows from top management to lower management

like a SUPPLY CHAIN MANAGEMENT so that the process of information
spread easily in organization. The product is send by head quarter and HO
work as a top management they pass it on information about the product
to the planning and operational department about it.

I. How much quantity of the product is coming?

II. Which product is coming?
III. In which ship/vessel its coming?
IV. At what time it’s going to reach the destination port?
This information is send by head quarter to planning and Operational
department then its flow by planning and operational department to port
so that they easily get there product at proper time .Then after receiving
the information from HO the work of Planning and Operational department
is to pass the information to finance department that HO has sent the
product through vessel so do all the formalities of port, now here planning
and operational flow the information to the port authorities also at same
level so that port authorities get the information that at what time the
vessel is coming? In which ship it’s coming? After that the port
communicates to finance department that fulfill all the formality of Custom
so that product get easily departed from vessel to pipeline for the terminal.

After that port authorities again communicate to planning and operational

department before 1 hour by sending mail that they are now starting to
pump the product through pipeline. After receiving the mail Planning and
Operational department again communicate, after receiving the product
they mail to Port authorities that we receive the product. After Human
Resource department is ready with the workers who are taking care of the

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product is send to the correct terminal which is allotted for the specific
product and see that the tank is not over loaded by the product if there is
sufficient product in the tank then it’s a responsibility of the employee to
keep that product in the pipeline only, so that product is properly adjusted
in the tank and not be access in the tank so that it does not burst in tank.
Then human resource department also flow the information to the
Maintenance and Purchase department before storing the product in the
tank. It’s a responsibility of the Maintenance department that the tank is
not having any problem in storing the product and see that product is
properly adjusted in the tank. After that Maintenance department is
responsible to communicate with the Safety and Security department that
when the worker’s are working in the terminal area the worker are suppose
to wear safety helmet and safety boots also so that all the mishaps are
avoidable and they insure their workers are on safe side.

In this terminal the type of network use to communicate is BUS

TOPOLOGY.

In this way the information flows smoothly in these much different

department.

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TRANSPORTATION MODES

There is only one mode of transportation for receiving the product for the
storage in terminal that is as follows:

 Vessel system

Explanation:

 Vessel system: Head quarter send the product through vessel because
the product is easily received to the terminal through it. Then through
the pipeline it is directly connected to ports and with terminal. So when
the ship reaches the port there is pre decided jetty where the ship
placed and from that it is connected to the terminal pipeline then from
there the pumping of product starts and after that it directly reaches to
the specific tank in terminal.

There are three way of transportation mode for the distribution of the product
which is stored in the warehouse. They are as follows:

 Tank truck(TT)
 Tank wagon’s
 Aviation facilities

Explanation:

 Tank truck: For distribution of product in local market or in retail market

the mode of transportation mostly used is tank truck. They load
optimum level capacity of the tank truck so that it is easily distributed
and can be carried safely to different locations. Mostly the trucks have
the capacity of 20 KL (20,000 Liters). In that there are four
compartments, in which different products can be filled in each
department or same product can be filled as required.

 Tank wagon: If the product is distributed from one state to another then
tank wagon are used as a mode. Tank wagon’s facilities are provided by

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Railway and it is compulsory that 49 tank wagons are departed at one

time. The capacity of 49 tank wagon is to take 3000 KL (30, 00,000LTRS)
at one time. It is also used mostly for distribution of the product.

 Aviation facilities: This facility is also provided by the Loni Port terminal
if in some emergency the product is to be sent on urgent basis then the
aviation facility is used to send the product. This facility is least used for
distribution of the product.

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REPORT SYSTEM

Report system is also the easy and formal mode of communication in an

organization. If any information is send to HO regarding to the organization
then it is to be send through reports only. There are 5 type of report system is
to be used they are as follows:

 Stock monthly report

 Stock daily report
 Sales report
 Purchase report
 Monthly Distribution Plan

EXPLANATION:

 Stock monthly report: This report says about the monthly stock kept for
the product. It keeps the record of how much product is there, how
much is needed, how much can be stored and how much left after
supply done at the end of the month. The report is send to HO by the
planning department.

 Stock daily report: This report says about the daily stock kept for the
product. It keeps the record in day to day supply of the product, daily
how much sale done and sees how much product remaining after the
supply. The report is send to HO on a daily bases.

 Sales report: This report is made of sales done of the product to

different dealers by truck tank, tank wagon and aviation facilities. How
much to be done, to whom and when.

 Purchase report/receivable product report: In this report the detail of

product is mentioned that how much goods received in the terminal
when the product received the approximate gauging is done and get

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noted after when the product settles in the tank proper gauging is done
and after that report is send to HO.

 Monthly distribution plan (MDP): This report is done by HO so that

departments are informed about the stock, distribution of the product
and about how much the product going to be received in the whole
month so the all the employees set their target by seeing the monthly
plan.

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INFORMATION TOOLS

E-mail

Indent
Sms Management
system (IMS)

Information
Tools

Manual
Hindustan
Identification
Portal
System

Internet

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 INFORMATION TOOL: - At HPCL different information tools are used to

communicate within as well as to communicate with outside people.
Few information tools are as under:-

 E-mail:- E-mail work as an information tool in the organization it is been

used between HO and manager to pass the information about what is
going on in the organization on daily bases and on monthly bases also.

 Internet: - Internet facilities have made the flow of information easy.

With the help of internet vehicle monitoring system (VMS) is used to get
the exact information of location of Truck Tank (TT) so that the theft of
fuel and other illegal activities are avoided and the customer can get the
delivery on time. Also a lock along with the sensor is fit on the every
compartment of the truck tank so that if someone try to open that it he
can be caught red handed. Not only that sensor is installed at the
driver’s place to monitor the speed at which truck tank is moving,
whether it is in the right direction or deviating from the track.

 Manual Identification System: - Here some information’s are taken

manually by employees. Like measuring the fuel in the tank,
temperature of the fuel, water level in the tank .In manual identification
system there is specific tool they are using that is measurement copper
tap and copper gauging.

 Hindustan portal: - There is an internet facility at the HPCL which is used

by their employee to get them updated. In this system information
relating to employees at different department with their job profile is
available.

 Indent Management system: - This is a unique system used by the HPCL.

Information flows through this system. In this system the purchaser
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place the order through mail to the supplier and supplier again mail to
the purchaser that we receive your order and then supplier send him to
the date and time when purchaser going to receive the product.

 SMS: - Orders are received through SMS and executed to save the time
of both customer as well as organization.

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NEED OF THE STUDY

1). The information gathered through this research can be used by

the company to increase its reach in the market as well as to

improve its services and became more customers friendly. This can

increase the goodwill of the company and its overall performance.

2). Thus this study is aimed to provide the management with some

knowledge about its status in market. The research also aims to

provide some ideas to improve the company’s present condition.

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THE RESEARCH METHODOLOGY

 The research methodology is the specification of method of

acquiring the information needed to structure or solve the

problem. It is not considered to be the decision of facts but also

building up the data knowledge and to discover the new fact

involved through the process in the dynamic change in the society.

 Sample Size- 40 (Consumers)

 Research Design - Causal & Descriptive Research

 Research Method – Structured Questionnaire

 Sample Universe – Pune

( Hinjawadi ,Hadapsar ,Tathawade, Shivaji Nagar).

 Time frame - 60 dayss

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 TYPE OF RESEARCH

 Causal Research

The conceptual structure within which this research is

conducted Causal in nature as it brings forward the results
concerning the set objectives, through facts, findings and
enquiries; moreover it describes the state of affairs that exists at
present.

 Descriptive Research

Descriptive research, simply put, is the act of comparing two

or more things with a view to discovering something about one
or all of the things being compared. This technique is often
utilizes multiple disciplines in one study.

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DATA COLLECTION & DATA ANALYSIS

The data, which is collected for the purpose of study, is divided into 2
bases:

 Primary Source: The primary data comprises information survey

of “Market Mapping”. The data has been collected directly from

dealers through face to face informal interactions.

 Secondary Source: The secondary data was collected from the

company, like company websites.

 This data has been collected by visiting a no. of Petrol Pumps

personally. The list of markets visited are as follows:-

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This list is divided in to two parts-

1). ARB (Allied Retail Business) related HPCL Petrol pumps

2). Non- ARB related HPCL Petrol pumps

ARB—

1). krushna petroleum, Rajiv Gandhi IT Park, Phase- I, pune

2015 Petrol Diesel

MAR 254 742

APR 296 836

JAN 270 706

FEB 296 808

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900

800

700

600

500
PETROL
400 DIESEL
300

200

100

0
MARCH APRIL MAY JUNE

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2). Outlines, Shivaji nagar

PETROL POWER DIESAL

2011 6919 3263 3263
2012 7051 4195 685
2013 7560 291.5 4676
7646 281 4767

9000

8000

7000

6000

5000 PETROL
POWER
4000
DIESEL
3000

2000

1000

0
2011 2012 2013 2014

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3). Sai petroleum pune-banglore bypass

201 201 201 201 201 201 201 201

1-12 1-12 2-13 2-13 3-14 3-14 4-15 4-15
100000
ms hsd ms hsd ms hsd ms hsd

April 300 615 245 635 185 635 232 601

may 344 744 240 711 259 711 250 639
june 290 683 225 614 212 614 225 657
july 261 587 215 640 208 640 184 615
aug 245 619 230 583 198 583 246 581
sep 220 573 185 566 158 566 201 583
oct 235 667 215 597 188 597 232 592
nov 270 766 211 583 224 583 222 606
dec 285 689 230 670 228 670 254 670
jan 225 655 210 638 208 638 225 601
feb 225 620 185 561 185 561 185 553
mar 240 630 200 638 184 638 174 526

314 784 259 743 243 743 263 722

TOTAL 0 8 1 6 7 6 0 4

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9000

8000

7000

6000

5000 2011-12
2011-122
4000
2011-123
3000

2000

1000

0
April may june july aug sep oct nov dec jan feb mar TOTAL

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4). Sirode Petroleum,tathawade,pune

Diesal No.of tanks Capacity/tank Selling/day Sat./Sun

2 22 kl 8 kl 10kl to 12kl

22kl 8 kl ----

Petrol 2 15 kl 4 kl 7kl to 6kl

15 kl 4 kl ----

5). Balwadkar Auto Service

Petrol NO. Of tanks Capacity Sold/day

2 23kl 6500 lt
23kl 6500 lt
Power- 1 9kl 600 lt

Diesal 2 23kl 2800 lt

9kl

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Non- ARB
1). Sangoi service station, Shivaji nagar

Diesel No. of tank capacity /tank selling/day Sunday

2 22kl 7000 Lt. Low
16kl

Petrol 2 16kl 7000/day Low

22kl

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2). Automotive service, Near dangechouk

2013-14 PURCHASE
2014-15 PURCHASE

MS HSD TOTAL
APR 257 335 592

MAY 252 364 616

JUN 259 377 636

Total 768 1076 1844

JUL 246 394 640

AUG 269 399 668

SEP 246 346 592

Total 761 1139 1900

OCT 263 353 616

NOV 259 325 584

DEC 285 395 680

Total 807 1073 1880

JAN 274 374 648

FEB 260 352 612

MAR 278 398 676

Total 812 1124 1936

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2014-15 PURCHASE

MONTH MS HSD TOTAL

APR 257 335 592

MAY 252 364 616

JUN 259 377 636

Total 768 1076 1844

JUL 246 394 640

AUG 269 399 668

SEP 246 346 592

Total 761 1139 1900

OCT 263 353 616

NOV 259 325 584

DEC 285 395 680

Total 807 1073 1880

JAN 274 374 648

FEB 260 352 612

MAR 278 398 676

Total 812 1124 1936

2000

3148 4412 7560

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SALE APR 222 352 574

MAY 245 390 635

JUN 228 381 609

Total 695 1123 1818

JUL 223 386 609

AUG 234 391 625

SEP 223 376 599

Total 680 1153 1833

OCT 244 414 658

NOV 221 334 555

DEC 243 404 647

Total 708 1152 1860

JAN 238 405 643

FEB 222 355 577

MAR 244 371 615

Total 704 1131 1835

Grand Total 2787 455 734

9 6

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SALE
APR 249 369 618

MAY 253 366 619

JUN 251 378 629

Total 753 1113 1866

JUL 258 403 661

AUG 272 388 660

SEP 250 363 613

Total 780 1154 1934

OCT 262 346 608

NOV 267 345 612

DEC 277 390 667

Total 806 1081 1887

JAN 272 374 646

FEB 255 343 598

MAR 279 363 642

Total 806 1080 1886

442 757
3145 8 3

43
 1000
2000
3000
4000
5000
6000
7000
8000

44
MAY
JUN
Total
JUL
AUG
SEP
Total
OCT
NOV
DEC
Total
JAN
FEB
MAR
Balaji institute of Telecom & Management

Total
Grand Total

APR
MAY
JUN
Total
JUL
AUG
SEP
Total
OCT
NOV
DEC
Total
JAN
FEB
MAR
Total
574
352
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3). Highway petroleum centre solapur road,Pune camp.

Diesal No. of tabks

1 04-May
9Kl to 10Kl

per
Petrol 3 2,10 month
22 kl to 23
2,50 kl sat.=fast
Power- 10000
1 lt. sun.=slow

ATM 0
Daily selling of petrol=7000
lt.

4). Shivaji services station, Pune

No. of tanks

3 9kl 5000 lt

9kl

9kl

Diesal

2 22kl 17- 18 lt

22kl

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Balaji institute of Telecom & Management

5). Vikas Petroleum,Hadapsar- pune

Petrol No. of tanks capacity

1 13,500 2500 lt
lt

Diesal 1 14000 lt 700-

800 lt

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Balaji institute of Telecom & Management

Some other ARB & Non- ARB Petrol Pumps are:

Petrol Dealers Association Sadhu Vaswani Chowk, Pune Gpo

Shell Petrol Pump Urit Nagar, Warje

Kulkarni Petrol Pump Laxmi Road, Sadashiv Peth

Kedari Service Station Kedari Road, Wanowrie
Gaikwad Service Station D P Road, Aundh
Kasat Petrol Pump Karve Road, Kothrud

Bhapkar Petrol Pump Opposite City, Pune Satara Road

Sai Gauri Petrol Pump Mumbai Pune Highway, Kasarwadi

Autolines Petrol Pump Road Main Road, Shivaji Nagar
Siddhivinayak Petrol Pump Pune Solapur Road, Manjari Farm
Shinde Petrol Pump Kiwale Village, Dehu Road

Bafna Petrol Pump Shukrawar Peth

Shree Seva Petrol Pump Shivaji Nagar Model Colony

Bright Travels And Petrol Pump Sassoon Road, Sasoon Road
Shirole Brothers Petrol Pump Maharaj, Jangali Maharaj Road
Saraswati Auto Services &
Petr... To Pournima, Shankar Sheth Road
Saraswati Auto Services &
Petr... Shankarsheth Road, Swargate
Excel Petrol Pump Sahakari, Karve Road Deccan

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Data Analysis & Interpretation

1.
DO YOU KNOW ABOUT ARB?

YES
30%

NO
70%

YES 12
NO 28
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Balaji institute of Telecom & Management

2.

YES 10
NO 2

DO YOU THINK ARB HAS IMPACT

ON SALES OF PETROL & DIESEL ?

NO
17%

YES
83%

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Balaji institute of Telecom & Management

3.
NO. OF
RESPONDENTS
POSITIVE 10
NEGATIVE 2

WHAT TYPE OF IMPACT IT HAS ON SALES OF PETROL & DIESEL?

10

6
POSITIVE
5
NEGATIVE

0
NO. OF RESPONDENTS

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Balaji institute of Telecom & Management

4.
How much it has increased ?

Refer Excel File.

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Marketing models used in the study:

SWOT ANALYSIS:

Strength: weakness
1).Network of 13000 outlets 1).Company operations are
o bound by Government regulations

2).stage of Art Technologies At Refinery 2).Environmental Hazards from

3). Better connections. Wastages

Opportunity Threats
1).Demand-Supply gap in India 1).Threats comes competitors

2).Increasing natural gas market globally 2).Economic instability and

f fluctuations in India’s policies

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Competitive Analysis-

Competitors of HPCL:

Here, I found two big competitors of HPCL, which is known

as:
1. IOCL (INDIAN OIL CORPORATION LIMITED)
2. BPCL (BHARAT PETROLEUM CORPORATION LIMITED)

IOCL:
Indian Oil began operations in 1958 as Indian Oil Company Ltd. The Indian Oil
Corporation was formed in 1964, with the merger of Indian Refineries Ltd.
Recently Indian Oil Corp (IOC) has raised $500 million by selling 10-year dollar-
denominated bonds, its fourth such issue overseas in the last three and a half
year.

 In 2003, its Gujarat Refinery was awarded the "Best of all "Rajiv Gandhi
National Quality Award.

The main services offered by Indian Oil are Refining, Marketing, Pipelines, R&D
and Training. 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.

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Comparison between IOCL & HPCL:

Yearly --------------------------------- in Rs. Cr. ---------------------------------

Indian Oil Corporation Hindustan Petroleum

Ltd. Corporation Ltd.

Mar' 15 Mar' 15

Sales 437,526.13 206,626.19

Other Income 4,144.05 1,168.41

Stock Adjustment 8,216.07 3,749.44

Raw Material 205,049.94 56,158.44

Power And Fuel 0.00 0.00

Employee Expenses 7,104.78 2,414.66

Excise 0.00 0.00

Admin And Selling Expenses 0.00 0.00

Research And Devlopment Expenses 0.00 0.00

Expenses Capitalised 0.00 0.00

Other Expeses 207,008.26 138,640.20

Provisions Made 0.00 0.00

Operating Profit 10,147.08 5,663.45

Interest 3,435.27 706.59

Gross Profit 10,855.86 6,125.27

Depreciation 4,528.66 1,971.15

Taxation 2,722.26 1,420.86

Net Profit / Loss 5,273.03 2,733.26

Extra Ordinary Item 1,668.09 0.00

Prior Year Adjustments 0.00 0.00

Equity Capital 2,427.95 338.63

Equity Dividend Rate 0.00 0.00

Agg.Of Non-Prom. Shares (in lacs) 7,629.87 1,655.51

Agg.Of Non PromotoHolding(%) 31.43 48.89

OPM(%) 2.32 2.74

GPM(%) 2.46 2.95

NPM(%) 1.19 1.32

EPS (in Rs.) 21.72 80.72

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2). BP(Bharat petroleum):

In 1889 during vast industrial development, an important player in the South

Asian market was the Burmah Oil Company. Though incorporated in Scotland
in 1886, the company grew out of the enterprises of the Chef Rohit Oil
Company, which had been formed in 1871 to refine crude oil produced from
primitive hand dug wells in Upper Burma.

In 1928, Asiatic Petroleum Company (India) started cooperation with Burma oil
company. This alliance led to the formation of Burmah-Shell Oil Storage and
Distributing Company of India Limited. Burmah Shell began its operations with
import and marketing of Kerosene.

On 24 January 1976, the Burmah Shell was taken over by the Government of
India to form Bharat Refineries Limited. On 1 August 1977, it was renamed
Bharat Petroleum Corporation Limited. It was also the first refinery to process
newly found indigenous crude Bombay High.

In 2003, following a petition by the Centre for Public Interest Litigation, the
Supreme Court restrained the Central government from privatizing Hindustan
Petroleum and Bharat Petroleum without the approval of Parliament. [3] As
counsel for the CPIL, Rajinder Sachar and Prashant Bhushan said that the only
way to disinvest in the companies would be to repeal or amend the Acts by
which they were nationalized in the 1970s. [4] As a result, the government
would need a majority in both houses to push through any privatization.

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Balaji institute of Telecom & Management

Comparison between BPCL & HPCL:

Yearly --------------------------------- in Rs. Cr. ---------------------------------

Bharat Petroleum Hindustan Petroleum

Corporation Ltd. Corporation Ltd.

Mar' 15 Mar' 15

Sales 238,086.90 206,626.19

Other Income 2,199.96 1,168.41

Stock Adjustment 4,513.32 3,749.44

Raw Material 94,424.39 56,158.44

Power And Fuel 0.00 0.00

Employee Expenses 2,085.60 2,414.66

Excise 0.00 0.00

Admin And Selling Expenses 0.00 0.00

Research And Devlopment Expenses 0.00 0.00

Expenses Capitalised 0.00 0.00

Other Expeses 128,748.92 138,640.20

Provisions Made 0.00 0.00

Operating Profit 8,314.67 5,663.45

Interest 583.10 706.59

Gross Profit 9,931.53 6,125.27

Depreciation 2,516.02 1,971.15

Taxation 2,331.00 1,420.86

Net Profit / Loss 5,084.51 2,733.26

Extra Ordinary Item 0.00 0.00

Prior Year Adjustments 0.00 0.00

Equity Capital 723.08 338.63

Equity Dividend Rate 0.00 0.00

Agg.Of Non-Prom. Shares (in lacs) 3,258.84 1,655.51

Agg.Of Non PromotoHolding(%) 45.07 48.89

OPM(%) 3.49 2.74

GPM(%) 4.13 2.95

NPM(%) 2.12 1.32

EPS (in Rs.) 70.32 80.72

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LIMITATIONS

 Due to time constraint, few Dealers might have been skipped from the

areas visited.

 Few of the respondents were not open with their responses.

 Lack of Dealers cooperation was a major constraint.

 There may be error due to biasness of respondents.

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Balaji institute of Telecom & Management

FINDINGS

1). Retail Business Unit recorded a growth of 8.7 %growth in MS and 6.6 %
growth in HSD

2). More than 723 new retail outlets were commissioned thereby making the
total network of over 12869 outlets

3). In developed countries, allied retail business forms up to 60% of the

total revenue earned by fuel stations

4). HPCL has tied up with 15 banks who set up their ATMs in urban stations.
5). HPCL has already given a facelift to 150 such outlets at Rs 10 lakh per
station. It is expected to cover 500 stations by 200

6). Most of the employees /Dealers of HPCL Petrol pumps were not aware
about ARB

7). HPCL has also embarked on a beautification drive of all its petrol
stations to bring it under the Club HP brand umbrella.
8). 17 out of 25 HPCL Petrol pumps were having ARB.

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Balaji institute of Telecom & Management

SUGGESTION & RECOMMENDATION

1) Service has to be improved extensively. Due to poor service many

Outlets have stopped or keeping low stocks of the products.

2) Company should select its Dealers properly as their behaviour

portrays either a negative image or positive image of the company in

the market.

3) A proper check should be kept on the prices at which our products

are available to the final retailers. Whether they are getting proper

margins, whether they have been exploited by the distributor or not.

All these point should be given emphasis.

4) Proper check should be kept on Local & Duplicate Products.

5) Small Outlets also play an important role towards company sales,

therefore proper attention should be shown towards them also.

6) Delivery time can be reduced by using an online billing system.

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Balaji institute of Telecom & Management

Bibliography

 Wikipedia.com

 Google.com

 www.indianotes.com

 www.slideshare.com

 Philip Kotler “Marketing Management”

 Marketing Research, an Applied Research.

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Balaji institute of Telecom & Management

HINDUSTAN PETROLEUM CORPORATION LIMITED

Loni- Hadapsar Terminal, Pune

CUSTOMER SATISFACTION QUESTIONNAIRE

This survey is ARB (Allied Retail Business) petrol of HPCL

1. Do you know about ARB?

Yes 
No 

If yes go to question 2

2. Do you think ARB has impact on sales of Petrol & Diesel ?

Yes 

No 

 Question 3

3. What impact it has on sales of petrol and diesel?

Positive 

Negative 
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Balaji institute of Telecom & Management

4. How much it has increased ?

% 

5. Do you think ARB has been successful proposition for HPCL ?

Yes 

No 

6. What are your remarks on ARB ?



62