OBJECTIVES To know the brief introduction of HPCL TO know the products as well as competitors of HPCL To know the SWOT analysis of HPCL To know the industry analysis of HPCL (Porter’s 5 forces) To know the CSR activities of HPCL To know the Research and development of HPCL To explore the corporate governance of HPCL
• Founded -1974• Hindustan Petroleum Corporation (HPCL) is a state-owned company, engaged in the refining of crude oil and marketing of oil products. The company primarily operates in India.• headquartered -Mumbai, India• employees - 11,250 people.• Chairman – S. Roy Choudhary
SWOT ANALYSIS Strength –2. Network of 1400 Weak nessretail outlets and more 1. Companythan 250 retail outlets operations arein various stage of bound by Govtconstruction3. State of art regulations andtechnologies at refinery fluctuations.4. First Indian privatesector company toenter petro retailing 2. Net sales are5. Very active in CSR affected due toactivities increasing cost
Opportunity Threats1. Demand-Supply 1.Threats fromgap in India competitors2.Increasing natural 2. Competitorsgas market globally receiving subsidies on3.Heavy taxes by central andindustrialization state governmentcausing an increase 3.Economic instabilityin demand for fuel and fluctuations in Indias policies
Industrial analysis , (porter’s 5 forces) of HPCLTHREAT OF NEW ENTRANTS: BARGAINING POWER OFHIGH SUPPLIERS: MEDIUM• Developing Customer Base • Supplier industry is takes dominated by Government Long time Firms. Degree of• Product Differentiation fragmentation is more in• Capital costs are High supplier.• Switching Costs are High • Supplier’s products have no• Access to Distribution substitutes. Channels • Product of the supplier• Gestation Period is Long becomes an important input• Government Policies to the product of buyer. • Demand for suppliers products • Suppliers’ products have high switching costs •
BARGAINING POWER OF BUYERS: THREAT OF SUBSTITUTE PRODUCTS:VERY LOW LOW• Buyers are heavily dependent on • Clearly low substitute products as the product. of now.• Purchase accounts for a small • R&D for the substitutes in nascent fraction of supplier’s sales. stage. • Polymers allow better performance• Products are heavily dependent than substitutes in most on the fuel for transportation. applications.• Supplier can sell to anyone • But, Polymers are non- irrespective of any restriction. biodegradable and cause concerns.• Product Quality in the hands of • Fiber intermediates are used which the supplier. have better properties than substitutes. • The prices charged by the firms are limited to products with similar function .
• RIVALRY AMONG COMPETITIVE FIRMS: MEDIUM Intense rivalry is due to:Fragmentation is Low.Rivalry is cyclical and often happens.Apart from prices, there is competition in quality,cost and support.Making new product introductions.
MAJOR ISSUES OF HPCL• Difficult product differentiation• Increasing consumption of petroleum products @ 4% per year• Fluctuating crude oil market involving geo- politics• Improper pricing mechanism• Reducing income constraining further investments• Increasing competition from private as well as other PSUs
Strategies of 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• benchmarking of refineries and terminals for product specifications
REASEARCH AND DEVELOPMENT• The Energy and • Indian Institute of Science Resource (IISc ), Bangalore: Institute • "Society for Innovation and (TERI ), New Development" (SID) Delhi: is an innovation Centre of IISc and"Screening and will collaborate onselection of behalf of IISc with HPCL.efficient microbial • setting up of R&Dstrains for bio Centre and
• Advanced Research Technologies (ART), Chevron & IIT Kanpur : HPCL has entered into a Memorandum of Understanding with the following organizations.• Advance Refining Technologies LLC (ART)
CSR Purpose statement of HPCL Serving the community Using core competence, expertise and technology of our business to reach the common people, especially the underprivileged Developing capacity in the community Enhancing human excellence and improving quality of life is our endeavor
MIDDAY MILL OF GOVT Health services in Awareness on HIV amongSCHOOL Rural Areas truckers - SurakshaHealth at RehabilitationCentres- Navjyot CHILD RIGHT –BAL HAQ MUSKAN
HP Exploration and Production Portfolio• HP E&P has entered into strategic partnerships and participated in various bidding rounds within the country as well as overseas.• HPCL, in consortium with E&P partners companies currently has 19 nos. blocks in India, and 3 nos. overseas blocks in Australia and Egypt.• HPCL intends to leverage and consolidate its current position and formulate & implement a strategy for E&P business based on opportunities both within and outside India.
BCG MATRIX• it is a “star” product. Indian Oil is the highest ranked Indian company in the prestigious Fortune Global 500 listing• the 116th position(in 2008) based on fiscal 2007 performance• 18thlargest petroleum company in the world and the number one petroleum trading company among the National Oil Companies in the Asia-Pacific region.
Corporate Governance in HPCL – Implementation – Decision making process – Advisory Council – Exercise of Authority – Limits of Authority Manual (LAM) – Purchase Manual – Right to Information Act 2005