1. Bharat Metal Cutting Gas in Tamilnadu
Authors: T.Sureshkumar, II MBA Student & Dr.P.Mohan Suyamburaj, Professor,
Thiagarajar School of Management, Madurai
RAISING PATH OF BMCG IN INDIA
Bharat Petroleum Corporation Limited (BPCL) (BSE: 500547, NSE: BPCL) is an Indian Government
controlled oil and gas company headquartered in Mumbai, India. BPCL ranked 272 in Fortune Global
500 list in 2011.Bharat Petroleum Corporation (BPCL) was established in 1952.
Till 2004 Industries are using Acetylene cylinder (DA) for metal cutting purposes, acetylene
cylinders were highly complicated and insecure to use. At the time BMCG was introduced in the
cutting gas industries by BPCL and it immediately took over the market. BPCL serves many
companies like Indian Railways, BHEL, Bharat Earth Movers ltd (BEML), National Thermal Power
Corporation Ltd, Larsen & Toubro (L&T), and Neyveli Lignite Corporation. In the short span of time,
BMCG has gained tremendous popularity amongst the industrial users, primarily because of its
performance efficiency and low cost of operations as compared to conventional cutting gases. The
successful performance of BMCG, on a variety of parameters, has been approved by the authorized
agencies like:
 Research and Development Standardization Organization (RDSO), Lucknow
 Welding Research Institute of India (WRI) , Trichy
 Automotive Research Association of India (ARAI ), Pune
 Indian Institute of Technology (IIT), Roorkee
 Naval Material Research Laboratory, Thane
BMCG is already a preferred choice in automobile, Cement, Glass, refrigeration, Shipping,
paper, Steel, Sugar and textile industries. It is also widely used by Defence Research and
Development Organisation ( DRDO), battery manufacturers, Coal producers, Highways contractors,
Heavy Engineering Industries, Power plants, Refinery projects and Small and Major infrastructure
development companies. There are 49 bottling plants across India and a strong distributor network,
BMCG cylinders can be delivered to any part of the country at a short notice. This ensures
uninterrupted supply.
BMCG is a mixture of light hydrocarbons primarily C3 and C4 derived from petroleum and is
fortified with additive to enhance cutting properties.
Some of the important properties of BMCG are,
 Specific gravity of liquid : 0.510
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2.  Specific gravity of gas : 1.52
 Vapour pressure at 37.8 ºC : 120 PSIG
 Boiling Temperature : -2 ºC
 Shock sensitivity : Stable
 Explosive limits in oxygen (%) : 2.4 – 57
 Explosive limits in air (%) : 2.3 – 9.5
 Burn velocity in oxygen : 4.1m/s
 Backfire Tendency : Low
 Toxicity : low
 Neutral Flame temperature : 2983 ºC
Major advantages of BMCG is better cutting speed, clean and narrow kerfs , a clean surface finish
than acetylene or any other fuel gases. It is highly economical to use in comparison with acetylene as
BMCG costs 35-40% cheaper than acetylene. BMCG cylinders are easy to handle due to lighter
weight than acetylene cylinders. BMCG cylinders are also available in range of pack size -19kg, 35kg
and 47.5kg to suit customer‟s specific requirements. These cylinders are also tested and manufactured
to endure diverse working conditions and conform to IS: 3196. It consumes low Oxygen than DA
cylinders and emission of carbon dioxide is too low. In terms of safety, it has low Possibility of
Backfire or Flashback since its cylinder pressure is 6-7 kg/cm2. Hence BMCG is very safe cutting gas
at the workplace. In industries where safety of employees is placed above all else, Bharat Metal
Cutting Gas is the ideal choice. BMCG is completely safe and operator-friendly. BMCG is non-toxic
and has no backfire. In case of a leak, BMCG can be detected easily because of its unique pungent
smell. BMCG is cost effective and safe in comparison to acetylene or any other cutting gas. After
introduction into market, the cylinders will undergo statutory testing at regular intervals, where the
cylinders will be hydro tested at 25.35kg/cm2 and then a pneumatic test at 10kg/cm2.
Cylinder refilling is done at state of the art bottling plants, were following operations takes place;
 Visual inspection
 Precise filling in an automated machine
 Cylinder counter weighing for accuracy using dynamic check scale.
 Automated check for „O‟ ring condition.
 Automated check for valve leak.
 Check for body leak and bung leak by dipping in water test bath
Only those cylinders found passing all the above checks shall be processed further for sealing.
After sealing SQC is done for random cylinders to ensure that customer receives cylinders in right
quantity and right quality.
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3. As per letter No. G.3(4)40/LPG/VIII and G.3(4)40/LPG/VII/Part from PESO, Nagpur, granted
approval for blending, filling, transportation, storage and distribution of BMCG in 19kg, 35kg and
47.5kg cylinders.
Fuel Gas characteristics
Fuel Gas Maximum Flame Oxygen to fuel Heat distribution
Temperature °C gas ration (vol) KJ/m3
primary secondary
Acetylene (DA) 3,160 1.2:1 18,890 35,882
BMCG 2,810 3.3:1 10,433 85,325
LPG(propylene) 2,827 3.7:1 16,000 72,000
According to the above table the secondary flame of BMCG is comparatively high and
consumption of oxygen is less than LPG. Using BMCG instead of commercial LPG, gives 10% to
15% cost saving because of this.
BMCG in Tamilnadu
State Industries Promotion Corporation of Tamilnadu Ltd (SIPCOT) has created Industrial
Complexes and Parks, strategically located in nineteen places and twelve districts in Tamilnadu. So,
Tamilnadu has huge potential for cutting gas. At present, industries in Tamilnadu were using
commercial LPG and DA for metal cutting. Every industry needs cutting gas for maintenance purpose
also. Many of the customers are not using DA due to safety and security. The number of DA suppliers
and users is reducing presently. Most of the industries are using commercial LPG; commercial LPG
(19kg) is nearly Rs 250 less than BMCG for 19kg cylinder. The bulk users of cutting gas prefer
commercial LPG only. There is a slight difference in chemical properties between commercial LPG
and BMCG. At present, the commercial LPG is a market leader of the cutting gases the reason being
that industries and local users aren‟t aware about the benefits of BMCG. Cost of BMCG is on the
raising path, so they are sticking with commercial LPG. The benefit of BMCG has not reached the
users; most of them aren‟t able to differentiate the products.
Usage of BMCG in Tamilnadu
A survey was conducted by the authors among 100 industrial cutting gas users from
Cuddalore, Pondicherry, Karur and Trichy. The following pie-chart includes the industrial
usage of BMCG in all above four markets.
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4. OVERALL MARKET USAGE
BMCG
DA 15%
13%
LPG
72%
From the survey, the overall usage of BMCG is only 15%. Most of the industries (72%)
useLPG as the cutting gas. Usage of DA is low(13%) in the market because cost wise it is
high and is less safe.
Awareness of BMCG in Tamilnadu
AWARENESS
YES NO
NO 68
YES 32
From the study 68% of users donot aware about BMCGproduct.The product was launched in
2004, nearly it lives eight years in the market but the reach is very poor.The newly opened
industries and shops are also not aware of the product.
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5. Findings:
The sale of BMCG is less because dealers are not willing to give credit and to create
awareness among the buyers, and earn enough money from their domestic connection and commercial
LPG. In Tamilnadu, BMCG is a push product. Also most of the dealers are not interested in spending
money on promoting BMCG.
The customers who use commercial LPG are not willing to switchover to BMCG connection, because
of additional deposit. Hence, it would be better if the existing commercial connection may be
transferred to BMCG without any additional deposit is paid for BMCG.
A large segment of potential market is unaware of the brand BMCG and its cost saving. If they are
aware of the product they get cost-effective solution, a much safer product and a timely supplied fuel.
Recommendations:
The company should take initiatives to create awareness on the benefits of the brand “BMCG”
through promotional campaign. Cover the customers through prompt service and attractive discounts
for users. Company would meet the promotional expenditures incurred by the distributors toincrease
awareness in the local region. In order to increase more market share the company has to
enter into tie-ups with the industrial cutting gas users. Conduct of free workshops for cutting
gas users to understand the benefits of BMCG. These could increase the sales of BMCG to a greater
extent.
Source:
Informal discussion with BPCL managers and agencies dealers
Direct interview with 100 industries who are all using cutting gas from Cuddalore, Pondicherry, Karur
and Trichy.
www.bharatpetroleum.com
www.ebharatgas.com/ebgas/pages/customer/cs_bharatmetal.jsp
www.tradeweld.com
www.nationalgasco.net/BPCLPR/tabid/100/Default.aspx
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