Presented by: SOFIAR RAHAMANCALCUTTA BUSINESS SCHOOL

Company overview On 5th July 1952 the company was incorporated with name of Standard

Vacuum Refining.

On 31st March 1962 the company name was changed to Esso Standard Refining Company Of India Limited.

On 15th July 1974 the company name was changed to its present i.e. Hindustan Petroleum Corporation Limited.

HPCL, a govt. of India undertaking company, is one of the major integrated oil Refining and marketing companies in India . It is a mega public sector undertaking.

The major refineries of HPCL are at Mumbai, Vishakhapatnam and Punjab.

HPCL also owns and operates the largest lube refinery in India producing lube base oils of international standards.

Mission

To enhance their productivity, profitability 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

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 relation, health and safety norms.

Quality policy

Total customer satisfaction through quality products by doing it right the first time, every time.

Ensure consistency of quality and adherence to time deadlines.

Strive to achieve excellence in quality training, motivation, team work and continuous up gradation of technology.

To take appropriate steps to minimize wastage, increase productivity and optimize and optimize the quality of products and services in a cost effective manner.

Product types

Petrol.

Diesel.

Lubricant.

LPG.

Aviation Turbine Fuel.

Bitumen.

Furnace oil.

SWOT Analysis

Strength weakness

HPCL owns and operates the largest lube refinery in India producing lube base oils of international standard.

Network of 1400 retail outlets in various stage of construction.

First Indian private sector company to enter petrol retailing.

Very active in CSR activity.

Company operates are bound by govt. regulation and fluctuation.

Net sales are affected due to increasing cost.

SWOT Analysis

Opportunity

Demand-supply gap in India .

Increasing natural gas market globally.

Heavy industrialization causing an increase in demand for fuel.

threats

Threats form competitors.

Competitors receiving subsidies on taxes by central and state govt.

Economic instability and fluctuation in India's policies.

BCG Matrix

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Market share

High Low

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Question Marks

Cash Cows

LPG TRANSMISSION

Porter five forces

Threat Of New Entrants: HighDeveloping customer base takes

long time.

Access to distribution channels.

Switching cost are high.

Gestation period is long.

Capital costs are high.

Government policies.

Threat Of Substitute Product: LowR&D for the substitutes in nascent

stage.

Polymers allow better performance than substitutes in most application.

But, polymers are non biodegradable and cause concerns.

Fiber intermediates are used which have better properties than substitutes.

The prices changed by the firm are limited to products with similar function.

Porter five forces of HPCL

Bargaining power of buyers: Very low

Buyers are heavily dependent on the product .

Product are heavily dependent on the fuel for transportation.

Product quality in the hands of the supplier.

Purchase accounts for a small fraction of supplier’s sales.

Bargaining power of suppliers:Medium

supplier industry is dominated by government firms. Degree of fragmentation is more in supplier.

Supplier’s products have no substitutes.

Supplier’s products have high switching cost.

Product of the supplier becomes an important impute to the product for buyer.

Rivalry among competitive firms:Medium

Rivalry is cyclical and often happens.

Apart from prices, there is competition in quality, cost and support.

Fragmentation is low.

Making new product introduction.

PHCL Activity Mapping

Core Competencies

Lube base oil and also international standard.

Own & large lube in India.

Develop & adopt new technology.

Strong retail network (rural retail outlets).

upgrade manufacturing process.

Will it sustain future ?

HPCL owns and operates the largest lube refinery in India producing lube base oils of international standard. So no one can beat them in lube base oil quality.

HPCL has a very strong CSR activity. These are Child care & Education, Health care, Livelihood, Employee engagement, Community development.

Vision & Strategy

FINANCIAL PERSPECTIVE

(7/10)

CUSTOMAER PERSPECTIVE (7/10)

LEARNING & GROWTH

(8/10)

INTERNAL PERSPECTIVE

(8/10)

KAPLAN’S BALANCED SCORE CARD