Existing Joint VenturesHPCL Mittal Energy Ltd., (HMEL) (49% HPCL, 49% L N Mittal Group company, Singapore and 2% financial institution) • GGSRL Refinery (Bhatinda)commission by 2011- 9 MMTPA • Euro - III & IV emission norms products with captive power plant of 165 MWCREDA-HPCL Biofuel Ltd (CHBL) (74% HPCL, 26% Govt. of Chattisgarh State Renewable Energy Development Agency )• Cultivation of JATROPHA seeds on 15,000 hectares• Producing & Marketing bio-diesel and bi-product
Existing Joint Ventures Hindustan Colas Ltd (HINCOL) (HPCL – 50%, COLAS SA, France 50%) • Bitumen Emulsion & cutback and modified bitumen • Currently operates six manufacturing units for value added bituminous products South Asia LPG Co. Pvt Ltd (SALPG) (HPCL- 50%, TOTAL SA, France-50%)• 1st Underground cavern storage facility of LPG in country of 60,000 MT capacity commissioned in Dec’2007• Receiving & dispatching facilities of LPG from Visakhapatnam to supply zones
Existing Joint Ventures Mangalore Refinery and Petrochemicals Ltd (HPCL - 16.95%, ONGC)• Capacity - 9MMTPA POL• Exchanging intermediate process streams between refineries of HPCL & MRPL to supplement effort to meet new environment norms Prize Petroleum Co Ltd., (PPCL) (HPCL – 50%, ICICI, HDFC) • E & P Company for participating in Exploration & Production of Hydrocarbons & provides consultancy services related to E&P
Existing Joint Ventures Petronet MHB India Ltd (PMHBL) (HPCL – 28.77 %, ONGC – 23%, PIL)• Construction of Mangalore-Hassan-Bangalore Pipeline Bhagyanagar Gas Ltd (BGL) (HPCL – 25% , GAIL)• Distribution & Marketing of environmental friendly fuels (Green Fuels) viz. CNG & Auto LPG for Transortation, domestic, commercial & industrial sector in State of Andhra Pradesh Avantika Gas Ltd (AGL) (HPCL – 25% , GAIL)• Distribution & Marketing of environmental friendly fuels (Green Fuels) viz. CNG & Auto LPG for Transportation, domestic, commercial & industrial sector in State of Mandhya Pradesh Pradesh
HPCL HR Model - alignment of JV Future/strategic focus Strategic partner Change Agent (Management of Strategic (Management of Human Resources) TransformationProcesses and change) People Administrative expert Employee champion (Management of (Deployment of Best Practices) Organisation infrastructure) Day-to-day operational focus The Dave Ulrich Model
Life Cycle of Change 7. Spin Off 6. Integrate 5. Implement 4. Customization 3.Conceptualization 2. Benchmark 8. Reassess1. Strategic intent
Life Cycle of Change1.Strategic intent What do we want to achieve? What purpose would it serve? What would be the deliverables?2.Benchmark What are the best in place practices, benchmarks ?3.Conceptualization How would we plan and allocate our resources? Outsourcing / In sourcing Decisions,3.Customization Considering magnitude and cultural dimensions. What will work / what will not work.4. Implementation Considering the scope and scale of implementation. Ensuring flawless execution.6. Integration Making the initiatives a ‘Way of Life’ in the new JV.7. Spin Off Disentangle – New systems to take root8. Reassess Periodic reassessment
Outsourcing / InsourcingOut-sourcing : Sourcing external expertise, knowledgeand experience for Effectiveness in initiativesIn-sourcing: Imbibing the Expertise for sustainableimplementation internally.
HP HR Leadership Model for JV’s Initializing OutsourcingManpowerDeployment In-sourcing Externalizing Time Scale of implementation
JV- Leadership Opportunities for HROpportunity to work beyond the current restrictionsOpportunity to optimize/ opti-size.Opportunity to implement contemporary HR thoughtprocesses.Opportunity for delivering value to business.Opportunity to establish new cultural systemsEnables paradigm shift in traditional thought processes andtriggers directions towards exploring progressive areas.Access to reservoir of international benchmarks.
JV- Pitfalls to avoid for HRImplant existing cultureSupplant existing systems / proceduresCarry forward existing decision making modelsBenchmark against internal indices/ equityEntrench/ identify with the new JV