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  1. 1. A PROMISE OF EXCELLENCE BPCL-030611-BROCHURE.indd 1 18/07/11 3:24 PM
  2. 2. Energising Lives 4 Hi - Tech Refining 6 Innovative Marketing 10 Exploring New Frontiers 14 Driving Aspirations 16 Evolving Solutions 18 BPCL Group 20 Striking A Balance 22 Green Vision 24 Peak Performance 26 C O N T E N T S BPCL-030611-BROCHURE.indd 2-3 18/07/11 3:24 PM
  3. 3. 5 ENERGISING LIVES Petroleum products touch lives in multifarious ways. From energising two- wheelers that ride down narrow lanes to fuelling aeroplanes that cut across skies making distances closer, from lighting homes in remote places to illuminating modern ones, from charging industrial furnaces to lubricating a labyrinth of gears. The list is endless and over billions of lives globally are energised by petroleum products in one form or the other. Playing a pivotal role in energising Indian lives is Bharat Petroleum Corporation Ltd. (BPCL). BPCL marks its strong presence as a totally integrated company across the entire petroleum value chain. Refining and Marketing of petroleum products havebeencoreareasofactivityandmore recently, important forays have been made in Exploration and Production. BPCL has a pan India operation and offers quality products and services to its wide array of customers. From those residing in modern cities to the ones tucked away in rural India, BPCL has always pioneered solutions for customers’ convenience. Part of BPCL’s vision is to be a ‘Global Energy Company’. In addition to marketing conventional fuels in India and abroad, BPCL is promoting alternate forms of energy and has taken important initial steps in this direction. The Company has formed subsidiaries that are directed at harnessing the alternate forms of energy – bio-fuels, sun and wind. Success in the corporate world emanates from relentless pursuit of excellence. Leveraging technology and people to drive customer aspirations, is BPCL’s goal. Post its nationalisation in 1976, the Company’s growth has been phenomenal. BPCL has a turnover nearing USD 30 billion and its Profit after Tax over USD 500 million; BPCL’s Gross Fixed Assets are over USD 5 billion. BPCL believes ‘Energising Lives’ can only be meaningful, if it responsibly contributes to society and the environment, apart from its business. To BPCL, some of its finest achievements aren’t found in its balance sheets, but in small towns and villages spread across India, where BPCL has had the opportunity to contribute. BPCL has also worked extensively to ensure greening of the environment in many sublime ways. BPCL is now poised for a quantum leap. Refining capacity is already in excess of the 30 Million Metric Tonnes Per Annum (MMTPA) mark, and plans to substantially enhance this capacity are taking shape. Marketing infrastructure is being consolidated through augmentation of storage capacity, pipelines and network expansion. Discoveries of oil and gas in blocks off Brazil and Mozambique, where BPCL has participating interests, have given great impetus to the Company’s initiative in Exploration and Production through its wholly owned subsidiary, Bharat PetroResources Ltd. Little wonder then that BPCL finds mention amongst the world’s ‘Fortune Global 500’ companies, features in the ‘Forbes’ corporate rankings and is among the top 100 Global Energy Companies listed by Platts. Energising Lives, in an innovative way, is the core purpose of BPCL. ‘ENERGISING LIVES’ OF A BILLION INDIANS BPCL-030611-BROCHURE.indd 4-5 18/07/11 3:25 PM
  4. 4. 7 Refining is a core activity for BPCL. Crude oil, available in nature, is processed through refining to generate value added products and fuels. Technology deployed then becomes the basis for the entire range of end products. The BPCL Group has four Refineries with state-of-the-art technology. Strategically located to cover India’s geographic expanse, the Mumbai Refinery in the west and Kochi Refinery in the south have a refining capacity of 12 MMTPA and 9.5 MMTPA respectively. The Joint Venture Refinery at Bina in Central India and subsidiary, Numaligarh Refinery in the north-east has a capacity of 6 MMTPA and 3 MMTPA respectively. These are the nerve centres that enable BPCL to service the needs of its consumers across the length and breadth of the country. The most modern infrastructure at all the four Refineries provides flexibility and enables BPCL to maximise value from different varieties of crude. Apart from the Crude Distillation Unit (CDU), the infrastructure includes the Vacuum Distillation Unit (VDU), Fluid Catalytic Cracker Unit (FCCU), Hydrocracker Unit, Aromatic Recovery Unit (ARU), Lube Oil Base Stock Unit (LOBS) and MS block. Coupled with this are the Diesel Hydro De-Sulphurisation (DHDS) Units and Reverse Osmosis Mineralisation Units, which ensure that the fuels produced are environment-friendly and conform to the most stringent international standards. The infrastructure also facilitates safe and efficient operations. Initiatives like the substitution of Naphtha as feed and fuel by Re-gasified LNG (RLNG), recovery of Hydrogen from Catalytic Reformer Unit (CRU) off-gas, production of light lube fractions etc. also enhance efficiencies at all the Refineries. Information Technology applications are enmeshed to help streamline processes and improve decision making. These applications include Manufacturing Execution Systems (MES) consisting of software solutions for Planning, Scheduling, Blending, Production and Laboratory Information Management Systems (LIMS). MUMBAI REFINERY Mumbai Refinery is one of the most versatile refineries in India. Commissioned in 1955, the refinery was modernised and scaled up from its 2.5 MMTPA to its 12 MMTPA present capacity, without complete shutdowns. A feat in itself! The refinery is capable of processing 63 different types of crude. Accredited with an ISO 9001:2000 (Quality Management System) and a NABL (National Accreditation Board for Testing and Calibration of Laboratories) certification for its Quality Assurance Laboratory, the refinery has maintained the highest standards of quality throughout. An energised workforce has taken the initiative to form ‘Quality Circles’ and Six Sigma clubs. Its present project to provide a Continuous Catalytic Reformer (CCR) is to increase the production of Euro IV grade Motor Spirit (MS) and High Speed Diesel (HSD) at Mumbai Refinery. In its attempt to constantly innovate and improvise, Mumbai Refinery has recently implemented an Integrated Management System (IMS) under REFINERIES – SETTING GLOBAL STANDARDS HI-TECH REFINING BPCL-030611-BROCHURE.indd 6-7 18/07/11 3:25 PM
  5. 5. 9 Large Crude Carriers (VLCC) to berth in the high sea and unload crude oil through an underground pipeline to the Refinery. BPCL’s Kochi Refinery has also implemented world class systems for operations, along with an enterprise- wide resource planning system. It is also an ISO 14001 EMS and ISO 9001:2000 QMS accredited unit. The Kochi Refinery has also obtained the ISO 17025 (Testing Methods in Quality Control) certification from NABL. The Refinery has successfully implemented the OHSAS 18001:2007 in the year 2009. The product portfolio of the Refinery today includes petrochemical feedstocks and speciality products in addition to its range of quality fuels like LPG, Naphtha, MS, SKO, Aviation Turbine Fuel (ATF), HSD, Fuel Oils and Bitumen. Speciality products for the domestic market include Benzene, Toluene, Propylene, Special Boiling Point Spirit, Poly-isobutene, Crumb Rubber Modified Bitumen (CRMB) and Sulphur. NUMALIGARH REFINERY Nestling in the sylvan environs of the Brahmaputra valley, where the beautiful rendezvous of water and land throws up myriad colours, is Numaligarh Refinery. Set up in the district of Golaghat, Assam, Numaligarh Refinery Limited (NRL) was inducted into the BPCL family with the acquisition of 62.5% of the Central Government shares by BPCL. It is a subsidiary that lends marketing strength to BPCL in the eastern tract of India. The 3 MMTPA Refinery has been able to display creditable performance since commencement. With its concern, commitment and contribution to socio-economic development of the state, combined with a track record of continuous growth, NRL has been conferred the status of a ‘Mini Ratna’ PSU. NRL’s product range includes LPG, Naphtha, MS, ATF, SKO, HSD, Raw Petroleum Coke (RPC), Calcined Petroleum Coke (CPC) and Sulphur. NRL has taken a strategic decision to enter into Retail Distribution, to market MS and HSD. Through a chain of attractive Retail Outlets, developed in a phased manner in the north-east, NRL has been able to provide excellent service to its retail consumers. BINA – BHARAT OMAN REFINERY LTD (BORL). BORL is promoted by BPCL and Oman Oil Company Ltd. is a partner in this project. The 6 MMTPA refinery, commissioned as a grassroots refinery, is located at Bina in Madhya Pradesh. Spread across 1900 acres of land in Bina,theplanthasthelatesttechnology and a host of modern infrastructure. A separate ‘Petroleum Coke’ Recovery Unit and Sulphur Recovery Unit are synchronised with the manufacturing process to ensure maximisation of refining margins. With an in-house 100 megawatt Power Generation Unit and a marketing storage terminal with 4.45 lakh KL tankage, the refinery is a representative of the new generation refineries. Bina, a strategic central India location, will play a pivotal role in BPCL’s supplies to the markets of central and north India. A 257 km long cross- audit certification from M/s. DNV. The integrationcoverstheRefinery’sQuality Management System (ISO 9001:2008), Environmental Management System (ISO 14001:2004) and Occupational Health and Safety Management System (OHSAS 18001:2007). The integration also brings in many benefits to BPCL by way of streamlined processes, reduced documentation, saving on valuable time and security. Mumbai Refinery has, to its credit, the achievement of being the first Indian worksite to achieve a Level 8 rating on the International Safety Rating System (ISRS). Mumbai Refinery’s bouquet of offerings includes light (MS, Liquefied Petroleum Gas (LPG), etc.), middle (Superior Kerosene Oil (SKO), HSD, etc.) and heavy distillates (Furnace Oil (FO), Light Diesel Oil (LDO), Bitumen, Lube oil base stock, etc.) as well as petrochemicals like Benzene, Toluene and Hexane. It also markets Sulphur derived from the refinery as a by-product. KOCHI REFINERY BPCL’s Kochi Refinery is located in picturesque green surroundings, at the outskirts of the city of Kochi, in Kerala. Commissioned as a stand-alone refinery in 1965, with supporting stake from the Government of India and Kerala, the Refinery was inducted into the Bharat Petroleum family through a merger in 2006. Spread across 1100 acres of land, the refining capacity of Kochi Refinery has been enhanced to 9.5 MMTPA, post the merger. The Refinery has a Single Point Mooring (SPM) that allows Very country product pipeline from Bina to Kota (Rajasthan) will facilitate swift evacuation of MS, HSD, SKO and ATF from the new refinery at Bina to markets of north India. Value maximisation with ‘state-of- the-art’ Refining Technology. BPCL-030611-BROCHURE.indd 8-9 18/07/11 3:25 PM
  6. 6. 11 first in the industry and guarantees the highest quality of products and services to motorists. The first loyalty program for motorists through ‘Petro Card’ and ‘SmartFleet’ Cards has ensured rewards foramultitudeoffuellingcustomers.Large format outlets ‘Ghar’ provide a haven to highway travellers with restrooms and dhabas. The In & Out stores at outlets offer convenience to consumers, apart from other services like Bank ATMs, Quick Service Restaurants, ticketing through the e-traveller, Western Union money transfer and a basket of services that have transformed the buying experience at petrol stations. The Retail network is backed by a robust storage infrastructure and logistic support. Over 3 million Kls of storage tanks spread across141storagedepotsandinstallations, product pipelines and contracted road transport form the logistics support system. A ‘Vehicle Tracking System’ has been introduced to cover the entire fleet of lorries carrying fuel to the petrol stations, so that quality standards are not compromised at any stage. Automation of Retail Outlets through best-in-class technology will give further comfort to customers and ensure that a visit to a BPCL Outlet is an even more delightful experience. KEROSENE Kerosene, the fuel that lights up millions of kitchens in the remotest corners of the country, is supplied through a well established network of Dealers and in close coordination with the public distribution system of the state governments. Kerosene is also suppliedinbulktoIndustries that require it during their BPCL is considered a leader in Marketing and has been a pioneer of many initiatives in India’s oil sector. Customers’ evolving aspirations are constantly mapped and a sustained effort is made to fulfill them by providing added value. Over time, many non-fuel products and services have also been made available at BPCL outlets, to provide convenience. BPCL has six transactional Strategic Business Units (SBUs) aimed at addressing the needs of various customer segments, namely Retail, Lubricants, LPG, Industrial & Commercial, Aviation and Gas. BPCL has developed an elaborate infrastructure and marketing network across the country to service the wide spectrum of customers. Today BPCL markets around 30 MMT of products per annum. The product range being offered by BPCL today is large and complex. Innovations have enabled the company to significantly impact millions of customers’ lives and sustain a leadership position. AUTOMOTIVE FUELS BPCL effectively serves the needs of automotive customers’ requirements of fuels and services through its Retail network. It markets Petrol, Diesel, Branded fuels, Compressed Natural Gas (CNG), Auto LPG and Lubricants through its network of 9000 plus Retail Outlets, well spread across the country. BPCL pioneered branded fuels in the Indian market. ‘Speed’, ‘Speed 97’ and ‘Hi-Speed Diesel’ are popular brands. ‘Pure for Sure’ was another manufacturing processes. LIQUEFIED PETROLEUM GAS (LPG) ‘Bharatgas’ reaches out to 30 million homes today. The product is easily made available to its customers, delivered at their doorstep 24x7, through online booking, SMS and IVRS booking facilities. Customersareservicedthroughanetwork of around 2350 LPG distributorships and 49 LPG Bottling Plants located across the country. BPCL also caters to numerous commercial and industrial establishments. With LPG now being used to fuel automobiles, Auto LPG is now available at select BPCL outlets. BPCL’s innovative ways have come to the fore. ‘Bharat Metal Cutting Gas’ (BMCG) is a solution to replace conventional Acetylene, for metal cutting and brazing applications. Performance efficiency of the product and its environment- friendly property has given tremendous confidence amongst the industrial users, both in India and abroad. ‘Beyond LPG’, a service innovation, was conceptualised to retail home essentials (both white goods and FMCG), through the marketing network to the 30 million households, the channel has access to. A wide range of products from leading companies are made available to INNOVATIVE MARKETING PIONEERING SOLUTIONS TO ENRICH CONSUMER EXPERIENCE BPCL-030611-BROCHURE.indd 10-11 18/07/11 3:25 PM
  7. 7. 13 RecentfindsofgasaroundMozambique will considerably strengthen BPCL’s position in this area of gas marketing. (Horticulture Mineral Oil) and LLPO (Light Liquid Paraffin Oil) for the cosmetic sector, have turned out to be runaway successes. MAK has entered into tie-ups with major OEMs like TATA, Hero Honda and Escorts to introduce specialised oils. MAK has also made forays into international markets like Sri Lanka, Bangladesh, Nepal and the Middle East. A strong Research and Development competency facilitating continuous product upgrades and an energetic workforce has seen the MAK brand take tremendous strides and live up to its tag line ‘ MAK makes it possible’! INDUSTRIAL FUELS BPCL ably caters to the needs of industrial houses that require petroleum products in bulk. Various industrial segments like steel, cement, power, bunkering, petrochemicals, fertiliser and infrastructure have relied on BPCL for smooth and uninterrupted supplies. Products marketed by BPCL in bulk include fuels (Petrol, Diesel, Naphtha, FO, LSHS, LDO etc.), special products like Special Boiling Point (SBP) spirit, Mineral Turpentine Oil (MTO), Hexane (Food grade), and Petrochemicals (Benzene, Toluene, Polypropylene, Xylene etc.), Bitumen, Bio-diesel and Wax are also marketed. Customers who source their fuel requirement in bulk from BPCL include INFOSYS, TAJ Group, Nestle, HLL, Finolex, CEAT, NTPC, Bharat Forge, L&T, Asian Paints, Goodlass Nerolac, Railways,StateTransportUndertakings, NALCO, BALCO, TISCO, TELCO, BHEL, BAJAJ, SAIL, Grasim, Birla Cements, Madras Cements, Reliance Industries, Glaxo, Dr. Reddy’s Laboratories and many more. The company has entered into the international bunkering segment for marketing 380 cst fuel oil by commissioning facilities at Mumbai and Kochi. BPCL offers its customers the facility to transact online through its e-biz portal and a large number of customers are benefitting from this very convenient system. AVIATION TURBINE FUEL BPCL in its earlier avatar commenced aviation operations in India way back in the 1930s and has to its credit the fuelling of JRD Tata’s solo flight in 1932. The company today caters to the needs of the world’s leading airlines, both Indian and international. It provides both Jet Fuel and Aero- Lubricants (Aero-Shell grades) to aircraft operators. BPCL strictly follows quality control requirements laid down by the Directorate General of Civil Aviation (DGCA) India and makes available world class service to all its customers. BPCL has a strong presence across 30 airports in India with storage and fuelling infrastructure, apart from technology-based support systems. BPCL has also partnered M/s. ST Airport Pte Limited, Singapore to form a Joint Venture Company, Bharat Stars Services Private Limited (BSSPL). BSSPL provides into-plane fuelling services at the new Bengaluru International Airport. Similar companies are now being formed to meet the demands of Delhi, Calicut and other city aviation operations. households through the LPG distributor network. ‘CookFood,ServeLove’continuestobethe objective for ‘Bharatgas’ marketed for use as a cooking fuel. It is extremely satisfying to touch millions of lives every day! LUBRICANTS  BPCL’s MAK brand of lubricants is the fastest growing brand in its category and has a wide range of products for Automotive and Industrial customers. MAK grades of lubricants are made available through an elaborate network comprising of the ‘Bazaar’, ‘BPCL’s Retail Outlets’, Primary Lubes Distributors (PLDs) and direct sales. Given the healthy Indian economy and a buoyant Indian auto sector, the company is giving special focus to the Automobile sector. It also reaches out to core sectors liketheRailways,Defence,Coal,Marineand Steel. BPCL’s Mumbai Refinery produces the best- in-classGroupII+categorybaseoil.Blended with world class additives in three blending plantsacrossthecountry,MAKhasover350 SKUs of superior quality oils and greases varyinginsize,from250mlto210litres. Constant innovations like new oil formulations have been the success score for the brand in one of the most competitive sectors of the petroleum industry. Recent innovations like MAK HITEMP XTRA SM GREASE for Sugar Mills, MAK all season HMO Another JV, Delhi Aviation Fuel Facility Private Limited, has been promoted by BPCL, IOCL and Delhi International AirportLimited(DIAL)forimplementing Aviation Fuel facility for the new T3 Terminal at Delhi International Airport. BPCL’s customer list includes a host of national and international names from the airline industry. It also services the requirements of the nation’s Defence services like the Indian Air Force, Indian Army, Indian Navy and the Coast Guard. NATURAL GAS Natural Gas is being hailed as the fuel of the 21st century. Economical and safe, it is the cleanest burning fossil fuel and produces minimal emissions of particulate matter. Natural Gas can be supplied through pipelines without any need for storage. Natural Gas is available for marketing in three forms – Liquefied Natural Gas (LNG), Compressed Natural Gas (CNG) and Piped Natural Gas (PNG). While LNG is mainly used in industries, CNG is used in vehicles and PNG is made available to homes for cooking. BPCL was one of the first movers in the emerging gas market in India by becoming one of the promoters of ‘Petronet LNG Limited’ (PLL). BPCL is also a pioneer in setting up City Gas Distribution (CGD) networks in India and has promoted four Joint Venture Companies in this area. BPCL’s JV ‘Indrapastha Gas’ has been a pioneer in ushering Natural Gas in the Delhi market. BPCL is one of the marketers of LNG which is made available from the PLL terminals at Dahej and Kochi. Gas Sale Agreements have also been signed by BPCL with various customers in the power, fertilizer and steel sectors, for long term supply of LNG. BPCL-030611-BROCHURE.indd 12-13 18/07/11 3:25 PM
  8. 8. 15 While Refining and Marketing of Petroleum products remain core activities, BPCL has embarked on a major initiative in Exploration and Production and has now firmly established itself across the petroleum value chain. Success in this area will enable the Company to be better equipped to deal with the vagaries of international crude prices. While the Company would continue to source crude oil and finished products through its very efficient International Tradingteam,theentryintoExploration and Production has gradually assumed great significance. In 2006, BPCL formed a wholly- owned subsidiary company, Bharat PetroResources Ltd. with the objective of implementing BPCL’s plans in the upstream sector. BPRL, in consortium with various partners, in a very short time, has now acquired interests in 26 blocks in 7 countries, across 5 continents. The total acreage of these blocks covers over 81000 sq. km. Besides 9 blocks in India, 19 blocks are spread over Australia, Brazil, East Timor, Indonesia, Mozambique and the UK. BPCL has also shown keen interest in the latest stone - ‘SHALE’, whose potential to have large amount of trapped Natural Gas is becoming prominent. BPCL has sought to explore some of the Australian Shale acreages. Recently, world class finds have been reported from operators of a few blocks. Successful commercialisation would give the Company access to substantial quantity of Oil in Brazil and Gas in Mozambique. The search for Black Gold goes on and every discovery helps BPCL reduce dependency on expensive imports. SOURCING ‘BLACK GOLD’ EXPLORING NEW FRONTIERS BPCL-030611-BROCHURE.indd 14-15 18/07/11 3:25 PM
  9. 9. 17 DRIVING ASPIRATIONS Recognising BPCL’s prowess in IT, for the fourth time in succession, SAP has awarded BPCL’s ERP Competency Centre with the CCOE (Customer Centre of Excellence) certification for a period of two years. PEOPLE ABOVE OIL BPCL’s main strength continues to remain its talented and dedicated workforce of over 14000 employees. Keeping the workforce highly motivated has been a key area of focus. Recruiting highly qualified personnel, developing customized training programmes, employing the best management practices and encouraging innovations have been cornerstones of the company’s HR policy. BPCL works with leading global consultants to benchmark performances and chalk out clear career plans for its employees. The highly competitive environment and the Company’s foray into new businesses have emphasised the need to nurture new competencies. BPCL has used various learning modes to engage and motivate employees. The ‘IDEAS’ platform is an initiative to recognise and promote creativity at the workplace, the ‘Socratix’ competition gives an opportunity to hone analytical skills and develop strategic insights, the ‘Mercurix’ competition uses the storytelling method as an effective tool for leadership and culture building in the organisation and the ‘Brand Quiz Baadshah’ Contest promotes learning through ‘infotainment’. BPCL’s core objective is to ‘Energise Lives’ and it is critical that to carry out this humungous responsibility, its employees are suitably energised at all times. The company’s investment in its people has ensured that morale at the workplace is always high. LEVERAGING INFO-TECHNOLOGY Info-Technology has always been one of the key drivers for BPCL in all its activities. The SCADA (Supervisory Control and Data Acquisition) system effectively monitors the safe functioning of the pipelines, an Apron Fuel Management System is providedforAviationcustomers,Refineries rely on MES – a software designed to assistplanning,schedulingandproduction activities, smart card technology has been used to design and offer loyalty cards, B2B and B2C transactional platforms are created to assist Industrial customers and global aviation consumers to transact business online. BPCL has entrenched IT systems into its complete operations. A comprehensive Enterprise wide Resource Planning (ERP) System covering Finance, HR and Operational transaction modules forms the robust back-end. Other applications are being developed internally and placed on them to suit BPCL’s business requirements like: •  “Access Control” module of the Governance Risk Compliance (GRC) solution of SAP R/3 was completed in all businesses. An important part of the overall risk mitigation mechanism, the solution will enable transparency and the availability of an audit trail. •  “New General Ledger” solution in SAP R/3, addressing the requirements of accounting procedures, was successfully installed one year ahead of its eligibility according to the Indian GAAP. •  Business Intelligence (BI) dashboards have been made available to role holders in all businesses and for the seniormanagementteam.Thesystem has many user-friendly features and being role-based, provides all the information needed for taking effective business decisions. INVALUABLE BRANDS BPCL has had the privilege of launching some of the most prominent brands of the Indian petroleum sector over the last decade. ‘Pure for Sure’, a service brand from BPCL, was launched in the Indian market to guarantee quality for motorists. ‘Pure for Sure’ not only addressed quality issues, but also brought in a sea change in the service parameters at a retail station. ‘Speed’, the first of the branded fuels to reach the Indian market was introduced by BPCL. With additives in the fuel cleaning carbon deposits in the engine, it ensured smoother drives. Speed now has variants such as Speed 97 – a fuel for high- end petrol cars with a 97 octane rating, ‘Hi-Speed Diesel’ – a green fuel for diesel vehicles, specially high-end cars, SUVs and the trucking segment. ‘Petro Card’ and thereafter the ‘SmartFleet’ Card (for fleet owners) were instruments designed for BPCL’s loyalty programme - ‘Petro Bonus’. The loyalty programme covers purchases of Petrol,Diesel,Lubricantsandthosemadein BPCL’s‘InOut’stores. ’MAK’, BPCL’s Lubricants brand, has the highest recall and is the umbrella brand for morethan350SKUsofvariantsofLubricants meant for the automotive, marine and industrial sectors, heavy equipments and specialist grades. Striving for succession in a highly competitive environment, ‘MAK’ has been gaining considerable equity and recognitioninthemarket. ‘Bharatgas’ is BPCL’s LPG offering to its customers and has a customer base of over 27 million people. Innovations, like the Bharat Metal Cutting Gas (BMCG) designed with a view to replace acetylene, during the metal cutting process, is also being recognisedforbeingenvironment-friendly. BPCLisoneofthefewbrandsinIndiatobe awarded both ‘Superbrand’ and ‘Power Brand’ status. ENERGISING LIVES THROUGH PEOPLE, TECHNOLOGY BRANDS Bharat Petroleum Aviation ServiceCOOK FOOD. SERVE LOVE. BPCL-030611-BROCHURE.indd 16-17 18/07/11 3:26 PM
  10. 10. 19 of all major OEMs in the country and important International OEMs. New products developed include Passenger Car Engine Oil, Fully Synthetic Gear Oil, customer specific Metal Working Fluid, High Performance Grease, MAK all season HMO (Horticulture Mineral Oil) and LLPO (Light Liquid Paraffin Oil) for the cosmetic industry etc. Some of the products developed in- house by the BPCL’s RD team and commercialised are: •  A cost-effective additive for LPG- based Bharat Metal Cutting Gas (BMCG) •  Diesel cetane improvers, gasoline octane boosters and lubricity improvers •  Novel cost effective bitumen packaging •  Process schemes developed for new grades of bitumen, e.g., PMB (Polymer Modified Bitumen), BE (Bitumen Emulsion), Higher grades of Bitumen etc. •  Detailed crude evaluation data generated on more than 50 new crude oils being processed/likely to be processed in the refinery •  Process schemes based on additives developed for cost-effective additive for reduction of cutter-stock in FO, high octane gasoline, cetane improvers for diesel, etc. •  LPG Sweetening Catalyst •  Formulation of cost-effective additive for producing Speed 97 and its successful commercialisation •  Improved cost-effective catalysts and additives selected and conditions for BPCL’s backbone in the competitive environment is its ‘Research and Development’ arm. The Corporate RD Centre is based in Greater Noida, the Product and Application Centre is based in Sewree, Mumbai, and another wing is at Kochi Refinery. BPCL has its research collaborations with a number of leading research institutes. These include collaborations with Indian Institute of Science, Bengaluru, Osmania University, Hyderabad, Tamil Nadu Agricultural University, Coimbatore, IIT Roorkee, IIT Madras and Institute of Plasma Research, Gandhinagar. BPCL’s RD Centres are equipped with comprehensive, state-of-the- art facilities and manpower required for evaluation and development of Fuels, Lubricants and Specialities (alternate energy included). It also has a Laboratory Information Management System (LIMS) for database management.  BPCL’s RD arm has been actively involved in supporting corporate businesses through constant technical supports and novel product development for niche application areas leading to new business development. BPCL also continues to file patent applications periodically to protect the intellectual property that resulted from such innovative research. Research and Development for the Lubricants Business has resulted in development of new formulations and alternate formulations for the existing Lube and Grease products. Products developed by BPCL enjoy the approval usage in the plant optimised for the two Fluid Catalytic Cracking Units BPCL’s RD team has also undertaken several projects in the areas of non- conventional energy and alternate fuels to support its sustainable development activities. A novel project on development of hybrid hydrogen generation process has also been taken up. Likewise, alternate routes for conversion of biomass to fuels are being looked into for energy security. BPCL continues to reap the benefits of its investments in the field of Research and Development and also knows that the current work would also translate into better business benefits in terms of improving BPCL’s market share, making available better quality products, reduce input costs etc., in the years to come. RESEARCH AND DEVELOPMENT EVOLVING SOLUTIONS BPCL-030611-BROCHURE.indd 18-19 18/07/11 3:26 PM
  11. 11. 21 Bharat Petroleum was formed in 1976, and was conducting operations only with its Mumbai Refinery. The company has shown tremendous organic and inorganic growth since then. In 2006, Kochi Refinery, a stand-alone refinery in the south, was merged with BPCL. Prior to that, BPCL also purchased the Central Government shares of the Joint Venture Refinery in Assam – NRL - to bring it as a subsidiary. A partnership with Oman Oil Company has resulted in the 6 MMTPA grass roots Refinery in Bina, M.P. These mergers, JV and acquisitions have assured BPCL product security and ensured sustained growth. BPCL also diversified recently into Exploration and Production. A wholly- owned subsidiary company, BPRL was incorporated on 17th October, 2006 with the objective of implementing BPCL’s plans in the upstream exploration and production sector. ‘Indraprastha Gas Limited’ (IGL), a Joint Venture Company with the ‘Gas Authority of India Limited’ (GAIL), and some oil majors was set up for the supply of CNG to the household and automobile sectors in New Delhi. Thereafter, BPCL has formed various JVs with different State Governments to form City Gas Distribution Units (CGDUs). With the opening of the Aviation sector, and the resultant privatisation of airports, BPCL formed a JV with M/s. ST Airport Pte Ltd., Singapore in 2007. BSSPL today provides into-plane fuelling services in Bengaluru and other Aviation fuelling stations. The BPCL group of companies today comprises: •  Bharat Oman Refineries Limited Petronet LNG Ltd. (PLL) •  Bharat PetroResources Limited •  Numaligarh Refineries Limited •  Indraprastha Gas Limited (IGL) •  Sabarmati Gas Limited (SGL) •  Central UP Gas Limited (CUGL) •  Maharashtra Natural Gas Limited (MNGL) •  Bharat Stars Services Private Limited (BSSPL) •  Bharat Renewable Energy Limited (BREL) •  Petronet CCK Limited (PCCKL) •  Petronet India Limited (PIL) •  Delhi Aviation Fuel Facility Private Limited •  Matrix Bharat Marine Services Pte Limited (MBMS) The company plans to invest in gas based Power plants and Petrochemicals in future. DIVERSIFIED OFFERINGS BPCL group BPCL-030611-BROCHURE.indd 20-21 18/07/11 3:26 PM
  12. 12. 23 Three major targeted areas are: •  Education •  Retention of ground water •  Community development and health. Notable or prominent among them are: CAL – Computer Assisted Learning programme, which commenced with a few schools and students in Maharashtra and has gained momentum due to ease of replication (in association with Teach For India). EAP – Education Assistance Programme, a study cum vocational training programme. LABS – Livelihood Advancement Business School, addressing the need of school and college dropouts, along with collaborative partner Dr. Reddy’s Laboratories. BPCL’s contribution to water conservation initiative commenced with an initial project to prevent rainwater drain off in certain hilly areas. Titled ‘Boond’ and using the concept of ‘Shramdaan’, the project was a runaway success. This was followed by ‘Boond – 2, 3 and 4’ projects spread across various states like Tamil Nadu, Rajasthan, Andhra Pradesh etc. Now, water conservation has a larger meaning and purpose for BPCL and many more projects are being planned. BPCL has, over the years, contributed significantly to community development and health. The ‘Shramdaan’ efforts are aimed towards nurturing our employees and business associates by providing them opportunities BPCL’s core values of Innovation, Care and Reliability (INCARE) are not just limited to its business. These values also drive the Company’s initiative for the betterment of society. At BPCL, ‘Good corporate citizenship’ is not just about governance and profitable business. It is believed that it is equally important to give back to society, which is why BPCL believes that some of its finest achievements are those found in small towns and villages spread across India, where BPCL had the opportunity to contribute. BPCL’s CSR initiative started out with the adoption of 37 backward villages across India. The initial approach towards the villages was to provide them with basic amenities and direct them towards creating a self-sustaining village model. BPCL was soon seen participating in various philanthropic activities like educational support through scholarships, health programmes, medical camps, infrastructure development like construction of roads, buildings and community centres in tribal areas, women empowerment, waste disposal system, housing for the poor schemes etc. Over time, BPCL has been able to realise the importance of a focused contribution, which will go a long way towards ‘Nation Building’ on a larger canvas. Inspired with a vision of being a model corporate entity , BPCL stands committed to ‘Energising Lives through Sustainable Development’. to participate in the nation building programme of their own volition. BPCL’s focus is on building sustainable communities through appropriate interventions. RESPONSIBLITY TOWARDS SOCIETY STRIKING A BALANCE BPCL-030611-BROCHURE.indd 22-23 18/07/11 3:26 PM
  13. 13. 25 Companies to join the Carbon Disclosure Project, since its launch year in India in 2007. BPCL was also one of the first to publish the ‘Corporate Sustainability Report 2006-07’. For the year 2007-08, BPCL decided to adopt GRI norms in preparing this report for the next year and get the same validated through an‘AssuranceReport’byanindependent agency. BPCL is the first Company in the Oil Industry to adopt stringent norms of GR3 for its Corporate Sustainability Report. Other initiatives undertaken by BPCL to protect the environment across various locations are: •  Oil Water Separator (OWS) •  Air/water/ground water testing and limiting within norms •  Benzene vapour recovery system •  Rainwater harvesting at water resource crunch places •  Waste water recycling and re-use •  Greening of road corridors/islands/ storage locations •  Bio-gas plant/Vermiculture from canteen wastes at Refinery •  Solar heating, windmill, solar cell power for lighting/RO •  Encon i.e. Energy Conservation clubs with schools/colleges (25 formed) •  Eco-park at Kochi Refinery •  Butterfly park at Numaligarh Refinery GREEN ENERGY OFFERING BPCL has made considerable progress as it makes the transition from being an ‘Oil Company’ to one that offers a complete basket of exploitable energy options. Laying strong emphasis on being present across the entire Petroleum value chain, the Company has also concomitantly promoted non-conventional/renewable sources of energy. Global oil majors have the onerous responsibility of ensuring a brighter and better planet for ‘Gen Next’. Driven by the corporate promise to be ‘Caring’ in all its dealings, BPCL is committed to meet business demands while ensuring minimal impact on the environment. Capital investments have been made to modernise facilities at Refineries, such that the product portfolio includes cleaner fuels (sulphur content minimised) that meet strict Euro III IV norms. BPCL is also one of the front-runners in India in developing initiatives in response to climate change and in reduction of GHG emissions. Always ahead of stipulated norms, BPCL also has state-of-the-art storage facilities that arrest fugitive emissions at storage facilities, which are considered to be a potential safety hazard. Oil sludge from storage tanks is normally to be buried, as per the Pollution Control Board’s norms. BPCL however, avoids soil pollution by treating the sludge by a bio-remedial process with the oil zappers supplied by TERI. BPCL has systems in place to arrest/ monitor the emissions at various depots, bottling plants and refineries. As per the norms of the Pollution Control Board, BPCL submits returns indicating the level of pollution in air/ water/SO2/CO2/COD/ATS vis-à-vis various limits. All such emissions are well within the prescribed limits. 45 Clean Development Mechanism (CDM) projects were identified during 2006 and their feasibility studies were carried out to explore possibilities for ’Carbon Credits’. Environment related projects of Refineries and Marketing are screened for opportunities in CDM and carbon credits. BPCL is the first Company among the Oil Marketing BPCL’s focus on promoting green fuels was to protect the environment by reducing pollution and also dependency on imported fuels. Tracts of unproductive, barren and non- cultivable fallow land are being used for the growth of ‘Jatropha’ and ‘Karanj’ plants. The plantations contribute towards environment protection, prevention of soil erosion and provide feedstock for manufacturing Bio-diesel. ‘Project Triple One’ has been launched in the State of Uttar Pradesh with the aim of cultivating one million acres of wasteland, creating one million jobs and producing one million tonnes of Bio-diesel from the plantation to replace diesel over the next 10 years. BPCL has made a foray to harness wind energy and has acquired windmills with a capacity to generate 5 MW of power in Karnataka. This power is transferred to the Karnataka State Electricity grid. BPCL also plans to make further investments in windmills in the states of Rajasthan, Maharashtra, Gujarat and Madhya Pradesh. A 1 MW capacity grid connected solar farm is being set up at BPCL’s LPG Bottling Plant in Lalru, in the State of Punjab. BPCL has signed a Power Purchase Agreement with the Punjab State Electricity Board. The farm which will be spread across an area of 4 acres, has been conceived to avail of carbon emission credits under the Kyoto protocol. BPCL has over the last few years published its ‘Corporate Sustainability Report’ which is available on the corporate website. A CLEANER AND GREENER ENVIRONMENT GREEN VISION BPCL-030611-BROCHURE.indd 24-25 18/07/11 3:26 PM
  14. 14. 27 BPCL has been felicitated at many forums for its efficient contribution to business: •  NDTV Profit’s Business Leadership award in 2010 for Sustainability Reporting •  Best Cash Management Deal for Electronic Receipt Solution awarded by Asset Magazine, Hong Kong •  Fleet Enabler of the Year in the Apollo-CV awards of 2010 •  Business Today Best CFO in a PSU award in 2010 •  Best Oil Gas Company in 2010 awarded by Dainik Bhaskar/DNA combine •  ‘Superbrand’ status accorded for the last four consecutive years •  Recognised as a ‘Power Brand’ in 2010 •  Best ‘Website’ among PSU and government bodies For its competency in ERP, BPCL was for the fourth time in succession, recognised as a SAP Competency Centre and was awarded the CCOE (Customer Centre of Excellence) certification from SAP. BPCL also features in the World SAP Council and has been recognised by SAP to extend training and award certificates on their behalf. For its contribution to society and the environment, BPCL has been recognised too: •  Green Business Leaders award in 2009/10 •  ‘AsianCSRAward’foritscontribution to water restoration – ‘Project Boond’ PEAK PERFORMANCE BPCL-030611-BROCHURE.indd 26-27 18/07/11 3:26 PM
  15. 15. REGISTERED OFFICE Bharat Petroleum Corporation Limited Bharat Bhavan, 4 and 6 Currimbhoy Road, Ballard Estate, Mumbai 400001, India. T: +91-22-22713000, +91-22-22714000 www.bharatpetroleum.in BPCL-030611-BROCHURE.indd 28 18/07/11 3:26 PM