Study the Growth Trends Of Petroleum Products in Kolkata Area and study the Cost Benefit Analysis Of Different Product Input Modes viz. Road transport, Railway Wagons and Coastal input.

1. Summer Internship Project
GROWTH TRENDS OF PETROLEUMPRODUCTS & COST
BENEFITANALYSISOF DIFFERENTPRODUCTINPUT
MODES
Presented by –
V. Arun Kumar
(Roll N0 : 15070)
PGDM (2015-17)
Calcutta Business School

2. IndianOil & Gas Industry

3. Company Profile
The Company was incorporated in the name of Standard Vacuum Refining
Company of India Limited on July 5, 1952.
Hindustan Petroleum Corporation Limited comes into being after the takeover and
merger of erstwhile ESSO Standard and Lube India Limited in 1974.
 HPCL operates two major refineries –
 Mumbai (West Coast).
 Vishakhapatnam (East Coast).
Largest lube refinery in India producing Lube Base Oils of International Standards.
This lube refinery accounts for over 40% of India's total lube base oil production.
 The marketing network of HPCL consists of 13 zonal offices in major cities and
101 regional offices.
 HPCL has state of art information technology infrastructure to support its core
business. (Source:- www.hindustanpetroleum.com)

4. Company Products
HP LUBRICANTS
Automotive Grades Industrial Grades Industrial Specialties Greases
Automotive Grades
Engine Oils Gear Oils Transmission Oils Defense Grades Auto Specialties
Engine Oils
Diesel Engine Oils Petrol Engine Oils Natural Gas Engine Oils
HP LAAL GHODA 20W40 HP GASENOL 20W50
HP MILCY SYNTHETIC 15W40 FOUR WHEELER FOUR STROKE HP AUTO SHAKTI
HYLUBE HDX MG 20W 40 HP CRUISE -- HP RACER 2 LOW SMOKE
HP MILCY SUPER 20W 40 1) CLASSIC 20W 40 HP RACER 4 20W40
HP X-3 10W KLT 2) 15w 40 HP BAJAJ GENUINE OIL
HP MILCY TURBO 15W 40 3) CLASSIC TATA 20W40, 20W50
GENUINE OIL
20W 40
(Source:- www.hindustanpetroleum.com)

5. Research Objectives
 Primary objective of this project is to understand the growing need of petroleum
products.
 Secondary objective of this is to find the cheapest mode of transportation of
petroleum products between coastal and railway .
Literature review is done through secondary data, and a greater share of inputs
and data was provided by the employees of the HPCL.
ResearchMethodology

6. INDIA’S OIL DEMAND
 India’s energy consumption stood at 638Mtoe in 2014–15, a growth
of 7.1% from the 2013–14 levels.
 India’s real GDP has been growing by 5-10% per year, up $110
billion in 2014.At 23% of total energy supply, Petroleum is India’s
second largest source, half the market share of coal.
 India’s oil demand has risen 300,000 b/d, putting the country on
track to surpass China in incremental growth for 2015.

7. INDIA’s GROWING DEMAND

8. India’s Consumption Of Oil

9. Impact Of Oil On India’s Fiscal Position

10. Down-Stream Petroleum Distribution

11. Modes of Transporting Petroleum Products

12. Comparison Of Different Modes of Transportation

13. 7000000
7200000
7400000
7600000
7800000
8000000
8200000
8400000
8600000
8800000
9000000
COASTAL COST RAILWAY COST
COASTAL Vs RAILWAY
Rs.
COST/BENEFIT ANALYSIS

14. Charter Cost
Bunker Cost
Port Charges
Maintenance Cost
Freight
Lease
Coastal Railway
Elements Of Cost

15. PROJECTED COST COMPARISON

16. Recommendation

17. The draft situation became critical in the last three months as Dredging
Corporation of India (DCI), a central government outfit, employed only two to
three dredgers during this period.
This would directly result into shortfall of the required quantity as per the
projected short fall there will be a shortage of 424111 kilo litres and the cost for
the extra shortfall would be Rs. 2332615680 within 10 years.
Lack of proper connectivity, inadequate infrastructure, high capital cost and
unfavourable taxation facility are some of the other major hindrances faced in
coastal shipping.
Hence, Railway would be both economically and the best suited mode for
transportation of large volumes of petroleum over long period of time.
Recommendation (Contd..)