summer internship project

Balaji institute of Telecom & Management

SRI BALAJI SOCIETY

BALAJI INSTITUTE OF TELECOM & MANAGEMENT

A PROJECT REPORT ON

“OPPORTUNITIES FOR HPCL OUTLETS IN ARB”

PREPARED FOR

HINDUSTAN PETROLEUM CORPORATION LIMITED

SUBMITTED TO SUBMITTED BY

PROF. Col BHARAT JHINGON GAURAV SHUKLA

1


DIRECTOR, BITM TM1413335 (2014-16)

SRI BALAJI SOCIETY PGDM MARKETING

2


ACKNOWLEDGEMENT

A large number of individuals have contributed to the project. This is a humble attempt to sketch down the contribution of all those persons who have directly and indirectly given their precious time and proper guidance for making the report.

I offer my profound gratitude to my project as well as organization mentor Mr. Sanjiv Kumar (Dr.manager) for making as a trainee and giving me his elderly affection and practical wisdom that enabled me to complete my project honourably and in time in HPCL- Loni, Hadapsar At Pune.

I also owe my sincere thanks to all those who have supported me including my college mentor Prof. P.Sukhatme. I owe a lot to my college BITM, Pune and worthy faculty for giving me right type of academic initiation.

3


Declaration

I, Gaurav Shukla student of Balaji Institute of Telecom and Management , Pune hereby declare that the project entitled as ‘‘Effect of Allied Retail Business (ARB) on HPCL Petroleum ’’under the guidance of ‘Mr. Sanjiv kumar (Dr.Manager)’ and submitted to ‘Balaji Institute of Telecom and Management’ , as an integral part of the Post Graduate Diploma in Management , is exclusively a bonafide and original work done by me during the academic year 2014-16. No part of this report has been submitted to anyone at any time before.

Date:

Place: Pune Gaurav Shukla

TM1413335

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CONTENTS

S.No. Contents Page No.

1. Declaration 42. Executive summary 63. Introduction to the company 84. Mission, Vision & Quality policy 106. Non-fuel business 127. The function at different department 168. Information flow 199. Transportation modes 2110. Information tool 25

11. Need of the study 28

12. The Research methodology 29

15. Data collection & Data Analysis 30

16. Research technique 4717. Competitors of HPCL 4918. Limitations 5320. Findings 5421. Suggestion & Recommendation 55

22. Bibliography 56

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EXECUTIVE SUMMARY

During the year 2013-2014, several activities were initiated to realize the retail vision. The highlights of performance are:

Retail Business Unit recorded a growth of 8.7 %growth in MS and 6.6 % growth in HSD

More than 723 new retail outlets were commissioned thereby making the total network of over 12869 outlets

In developed countries, allied retail business forms up to 60% of the total revenue earned by fuel stations.HPCL has won the coveted Reader's Digest Trusted Brand Gold Award 2013 for the eighth consecutive year, thus strengthening the customer’s trust towards our 13000 outlets. We have also won Star Retailer award for the last seven years. The awards we received were recognition of our initiatives and accomplishments in Branding, Loyalty & Marketing. Tomorrow belongs to those who prepare for it today.

Current profile includes generating additional revenues for Retail through Non-Fuel opportunities e.g. ATMs, Eateries, Convenience stores etc. Profile also includes Business Development through NEW strategic tie-ups with leading retail brands and creating win-win-win situation for our customers, partner brand and 11000+ strong retail network of HPCL.

HPCL plans to set up 500 of these Hamara Pumps for the rural markets in the near future. At present, there are 50 such rural pumps.

Mr. Chaudhry said have HPCL has tied up with 15 banks who set up their ATMs in urban stations. The revenue sharing agreement ranges from fixed rentals to a portion of the turnover in case of fast food counters. In some of its urban fuel stations, fast food chains like US Pizza and Cafi Coffee Day have opened shop.

HPCL has also embarked on a beautification drive of all its petrol stations to bring it under the Club HP brand umbrella.

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.Three reasons which were mostly highlighted were:

Salary Growth opportunities Employee benefits

INTRODUCTION

7


HINDUSTAN PETROLEUM CORPORATION LIMITED (HPCL) is a Government of India Enterprise with Navratna Status. It’s an oil industry which was found in 1974. HPCL is a Fortune Global 500 company and is the 10 th Most Valued Brand in India. HPCL is having 20% Marketing share in India among PSU’s (PUBLIC SECTOR UNITS) and a strong infrastructure. It operates 2 major refineries producing a wide variety of petroleum products: one in Mumbai, Maharashtra (west zone) which is also the Head Office of HPCL and second in Vishakhapatnam (east zone) .It holds equity stake of 16.95% in Mangalore Refinery & Petrochemicals Limited (MRPL).

The Marketing network of HPCL consists of 13 Zonal offices in Major cities and 101 Regional offices. On the financial front the turnover has grown from Rs.2687 crore in 1984-85 to impressive Rs.132670 crore in financial year 2010-11. HPCL also owns and operates the largest Lube refinery in India producing Lube Base oil of International Standards. This Lube refinery accounts for over 40% of the India’s total Lube Base oil production. HPCL is constructing refinery at Bathinda, in the state of Punjab, as a Joint venture with Mittal Energy Investment Pte. Ltd.

Its business units includes-Refineries, Aviation, Bulk-fuel, LPG, Lubes, Retail, Trade, Joint ventures and E&P (exploration and production).

The main petroleum products of HPCL include:

1. PETROL – Petrol is known as Motor Spirit (MS) in oil industry, which is marketed through its retail pump and is regularly used in personal vehicles.

2. DIESEL - Diesel is known as High Speed Diesel (HSD) in oil industry. This product is marketed through its retail pumps as well as terminal and depots .It’s consumer’s are not only auto owner’s but also transport agencies, industries etc.

3. LUBRICANTS – HPCL is the market leader in lubricants and the associated products. The product commands over 30% of the Market Share in this sector. The popular brands of HP lubes are Laal Ghoda, Milcy, Thanda Raja, Koolgard etc.

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4. LPG – LPG is Liquefied Petroleum Gas which is used for household purpose basically as a cooking gas and it’s in liquid form.

5. AVIATION TURBINE FUEL – ATF services is provided at various airports in India for more than half century. HPCL facilitates to supply to JET A1 at Indian Ports.

6. FURNACE OIL - It’s black oil which is used in ships.

The Loni- Hadapsar TERMINAL is basically involved in receiving, storing and distribution of the Finished Products like MS, HSD, Furnace oil etc.

MISSION, VISION AND QUALITY POLICY

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MISSION: The mission of HPCL is to enhance their productivity, profitibity and quality of the products so that they can be the No.1 in Oil Industry by taking into care the cultural heritage and the environment and the customers and employee.

VISION : The vision of HPCL is to be World Class Energy Company to be known for its caring and delighting its customers with good quality products in domestic and international market. The company will be excellence in social commitments, environment, employee welfare and relations, health and safety norms.

QUALITY POLICY : The Company is committed to deliver “Quality Petroleum Products” to the costumers on time, every time in order to achieve “Total Customer Delight”. As it’s important for all companies to obtain customer’s satisfaction.

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STRUCTURE OF ORGANISATION OF DIFFERENT DEPARTMENT

Branded Fuel

11

Head Office

North Central Zone

North Zone

East Zone

West Zone

Loni- Hadapsar Terminal

Senior installation manager (Mr. Sanjiv

Kumar)

Planning & Operations Department

Maintenance & Purchase Department

Finance Department

Human Resource Department

Safety & Security

Department

South Zone

North West Zone


Training ProgramsPower

Turbojet

………..

[Non-fuel Business

HPCL has built a profitable Non-Fuel Business with wide range of facilities to the customers. The non-fuel activities at the retail outlets include ATM, take away food counter, “C” Store, vehicle accessories etc. This business is managed through tie-ups with leading banks, Food Brands & OEMs

12

http://www.hpretail.in/power

http://www.hpretail.in/turbojet


]

…………………………………………………………………………………………………………………

………………………/

13


HPCL has about 2000 Club HP outlets to ensure outstanding vehicle and customer care.

HPCL launched 25 Club HP Star outlets in 8 cities which are premier category outlets.

Over 763 dealers and 5633 dealermen were covered through various training programs focussing on current business imperatives and behavioural changes for delivering the Club HP promises.

Unique training program titled Etiquettes Essentials, Management Development Program and SOP Champs were conducted for dealermen, forecourt managers and dealers to drive the importance of quality, quantity, quick service, courteous behaviour and stress free management among the dealers and dealermen who interact with retail customers.

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Scheme has been implemented.

Several dealermen were provided computer education.

A number of dealermen were recognized under the Spot & Reward Scheme.The Scholarship Scheme for Club HP dealermen and dependent children was extended during the year to motivate the dealermen.

Customer Loyalty Programs

DriveTrack Plus, a flagship product under our Loyalty Program, is accepted at more than 4000 retail outlets and has a customer base of 75000 with card count of 4.0 lac. The DriveTrack Plus program offers an unbeatable combination of control, convenience, security and attractive rewards. This innovative payment device is designed for efficient management of fleet, through greater control over fuel consumption and operating costs. DriveTrack Plus also offers fuel management and gifting solution to corporate and bulk buyers of fuel.

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http://www.hpretail.in/drivetrackplus


THE FUNCTIONS AT DIFFERENT DEPARTMENTS ARE AS UNDER:-

1) Planning & Operational department2) Maintenance & Purchase department3) Finance department4) Human Resource department5) Safety & Security department

1). Planning & Operational department : - Planning is the first and foremost activity of any organization. Rest all activity are depended upon it.

No organization can survive for a long period without proper planning of the different undertaking at a different department. At every stage planning has to be done. First of all planning is made relating to the goal of an organization and accordingly the department at a different level plan and accomplishes the goal. In the same way at HPCL also according to the requirement of the dealer and consumption they plan for the future requirement. Again here also they should be aware of the stock which is available with them in the tanks, order received from customer, goods in transit etc. Their planning again depend upon the retail outlet i.e. their petrol pumps, what is the quantity available with them, how much order is received, how much they are going to receive the product from head office etc. Here again they keep in mind the total market of the region, like other retail outlets turnover their share in the market and at what rate the requirement will increase. Here planning changes every month.

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2). Maintenance & Purchase department :-Maintenance is also a prime activity for any organization. At HPCL also they need to go through the same. Here also maintenance is required for the fuel tank, pipe lines both within the organization and also of those which are coming from Loni port to HPCL, water tanks, motors, other machinery etc. The fuel tank is used for 5 years for storage and then after every 5 years maintenance is done for it. For that they need to empty the whole tank and undertake the whole maintenance works which include checking the thickness of the plate form outside, inside, downward, checking of any leakage or weak area of the tank, painting etc. There are two manholes in the tank which is kept open for some days so that the gas which is present in it gets exhaust in air. Also there are huge numbers of motors of 50 to 150 hp which also require maintenance at regular interval of time. Pipe lines also need maintenance because the whole activity is depend upon it only that is flow of fuel from one place to another. Leakages and weak area are identified and repaired.

3). Finance department: - Finance department is maintaining the accounts, for income, expenditure, payment of custom and excise duties, billing for cash and credit sales etc. Whatever the requirements are there in the different departments first of all they communicate to the finance department and as per the availability of fund they inform to the relevant department. The company can incur an expenditure of Rs.20000 per day for the relevant requirement without any prior approval from head office, and beyond Rs.20000 expenditure they need to go through the certain procedure and approval of head office.

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4). Human Resource department: - The task of human resource department is to provide the man power to the different departments. There are requirement of different employees, labors, some technical experts etc. The management according to the requirement asks to the department to make arrangement for the same. The recruitment process is also undertaken at this stage, right from the receiving application to the final selection and the placement of employees. As and when there is a requirement of man power at different levels of the department, there works start right from allotting task, timing, specialization etc.

5). Safety & Security department: - Safety here is the most important key of the organization. Even a minute mistake can turn into the big disaster. So various safety methods are adopted to avoid such situation. Like right from the entering into the premises of HPCL there is a strict restriction on carrying cell phones, match box, cigarettes, and any gadgets that can lead to sparks etc. For employees also different safety arrangements are taken. While going to their respective job they used to wear safety helmet, Safety gloves, safety shoes etc and work is undertaken by the expert’s supervision. They need to keep check on the electricity part also as it also may turn disastrous, for that voltage input and output is taken into the account. Fire extinguishers are kept in abundance quantity everywhere. There is a siren also which immediately informs to the employees if any fire breaks out. There are two water tanks available in the premises.

INFORMATION FLOW

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Informational flow plays an important part in an organization to communicate easily with other departments and get proper, correct and easy way to work in big organization such as HPCL.

In HPCL the information flows from top management to lower management like a SUPPLY CHAIN MANAGEMENT so that the process of information spread easily in organization. The product is send by head quarter and HO work as a top management they pass it on information about the product to the planning and operational department about it.

I. How much quantity of the product is coming?II. Which product is coming?

III. In which ship/vessel its coming?IV. At what time it’s going to reach the destination port?

This information is send by head quarter to planning and Operational department then its flow by planning and operational department to port so that they easily get there product at proper time .Then after receiving the information from HO the work of Planning and Operational department is to pass the information to finance department that HO has sent the product through vessel so do all the formalities of port, now here planning and operational flow the information to the port authorities also at same level so that port authorities get the information that at what time the vessel is coming? In which ship it’s coming? After that the port communicates to finance department that fulfill all the formality of Custom so that product get easily departed from vessel to pipeline for the terminal.

After that port authorities again communicate to planning and operational department before 1 hour by sending mail that they are now starting to pump the product through pipeline. After receiving the mail Planning and Operational department again communicate, after receiving the product they mail to Port authorities that we receive the product. After Human Resource department is ready with the workers who are taking care of the product is send to the correct terminal which is allotted for the specific product and see that the tank is not over loaded by the product if there is sufficient product in the tank then it’s a responsibility of the employee to

19


keep that product in the pipeline only, so that product is properly adjusted in the tank and not be access in the tank so that it does not burst in tank. Then human resource department also flow the information to the Maintenance and Purchase department before storing the product in the tank. It’s a responsibility of the Maintenance department that the tank is not having any problem in storing the product and see that product is properly adjusted in the tank. After that Maintenance department is responsible to communicate with the Safety and Security department that when the worker’s are working in the terminal area the worker are suppose to wear safety helmet and safety boots also so that all the mishaps are avoidable and they insure their workers are on safe side.

In this terminal the type of network use to communicate is BUS TOPOLOGY.

In this way the information flows smoothly in these much different department.

TRANSPORTATION MODES

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There is only one mode of transportation for receiving the product for the storage in terminal that is as follows:

Vessel system

Explanation:

Vessel system: Head quarter send the product through vessel because the product is easily received to the terminal through it. Then through the pipeline it is directly connected to ports and with terminal. So when the ship reaches the port there is pre decided jetty where the ship placed and from that it is connected to the terminal pipeline then from there the pumping of product starts and after that it directly reaches to the specific tank in terminal.

There are three way of transportation mode for the distribution of the product which is stored in the warehouse. They are as follows:

Tank truck(TT) Tank wagon’s Aviation facilities

Explanation:

Tank truck: For distribution of product in local market or in retail market the mode of transportation mostly used is tank truck. They load optimum level capacity of the tank truck so that it is easily distributed and can be carried safely to different locations. Mostly the trucks have the capacity of 20 KL (20,000 Liters). In that there are four compartments, in which different products can be filled in each department or same product can be filled as required.

Tank wagon: If the product is distributed from one state to another then tank wagon are used as a mode. Tank wagon’s facilities are provided by Railway and it is compulsory that 49 tank wagons are departed at one time. The capacity of 49 tank wagon is to take 3000 KL (30, 00,000LTRS) at one time. It is also used mostly for distribution of the product.

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Aviation facilities: This facility is also provided by the Loni Port terminal if in some emergency the product is to be sent on urgent basis then the aviation facility is used to send the product. This facility is least used for distribution of the product.

REPORT SYSTEM

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Report system is also the easy and formal mode of communication in an organization. If any information is send to HO regarding to the organization then it is to be send through reports only. There are 5 type of report system is to be used they are as follows:

Stock monthly report Stock daily report Sales report Purchase report Monthly Distribution Plan

EXPLANATION:

Stock monthly report: This report says about the monthly stock kept for the product. It keeps the record of how much product is there, how much is needed, how much can be stored and how much left after supply done at the end of the month. The report is send to HO by the planning department.

Stock daily report: This report says about the daily stock kept for the product. It keeps the record in day to day supply of the product, daily how much sale done and sees how much product remaining after the supply. The report is send to HO on a daily bases.

Sales report: This report is made of sales done of the product to different dealers by truck tank, tank wagon and aviation facilities. How much to be done, to whom and when.

Purchase report/receivable product report: In this report the detail of product is mentioned that how much goods received in the terminal when the product received the approximate gauging is done and get noted after when the product settles in the tank proper gauging is done and after that report is send to HO.

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Monthly distribution plan (MDP): This report is done by HO so that departments are informed about the stock, distribution of the product and about how much the product going to be received in the whole month so the all the employees set their target by seeing the monthly plan.

INFORMATION TOOLS

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INFORMATION TOOL: - At HPCL different information tools are used to communicate within as well as to communicate with outside people. Few information tools are as under:-

25

Information Tools

E-mail

Indent Management system (IMS)

Manual Identification

System

Internet

Hindustan Portal

Sms


E-mail:- E-mail work as an information tool in the organization it is been used between HO and manager to pass the information about what is going on in the organization on daily bases and on monthly bases also.

Internet: - Internet facilities have made the flow of information easy. With the help of internet vehicle monitoring system (VMS) is used to get the exact information of location of Truck Tank (TT) so that the theft of fuel and other illegal activities are avoided and the customer can get the delivery on time. Also a lock along with the sensor is fit on the every compartment of the truck tank so that if someone try to open that it he can be caught red handed. Not only that sensor is installed at the driver’s place to monitor the speed at which truck tank is moving, whether it is in the right direction or deviating from the track.

Manual Identification System: - Here some information’s are taken manually by employees. Like measuring the fuel in the tank, temperature of the fuel, water level in the tank .In manual identification system there is specific tool they are using that is measurement copper tap and copper gauging.

Hindustan portal: - There is an internet facility at the HPCL which is used by their employee to get them updated. In this system information relating to employees at different department with their job profile is available.

Indent Management system: - This is a unique system used by the HPCL. Information flows through this system. In this system the purchaser place the order through mail to the supplier and supplier again mail to the purchaser that we receive your order and then supplier send him to the date and time when purchaser going to receive the product.

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SMS: - Orders are received through SMS and executed to save the time of both customer as well as organization.

OBJECTIVES

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1). “ TO IMPACT OF RETAIL OUTLET SALES DUE TO ARB.”

NEED OF THE STUDY

1). The information gathered through this research can be

used by the company to increase its reach in the market

as well as to improve its services and became more

customers friendly. This can increase the goodwill of the

company and its overall performance.

2). Thus this study is aimed to provide the management

with some knowledge about its status in market. The

research also aims to provide some ideas to improve the

company’s present condition.

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THE RESEARCH METHODOLOGY

The research methodology is the specification of

method of acquiring the information needed to structure

or solve the problem. It is not considered to be the

decision of facts but also building up the data knowledge

and to discover the new fact involved through the process

in the dynamic change in the society.

TYPE OF RESEARCH

Causal Research

The conceptual structure within which this research is conducted Causal in nature as it brings forward the results concerning the set objectives, through facts, findings and enquiries; moreover it describes the state of affairs that exists at present.

Exploratory Research

Exploratory research, simply put, is the act of comparing two or more things with a view to discovering something about one or all of the things being compared. This technique is often utilizes multiple disciplines in one study. When it comes to method, the majority agreement is that there is no methodology peculiar to Exploratory research.

29


DATA COLLECTION & DATA

ANALYSIS

The data, which is collected for the purpose of study, is divided into 2 bases:

Primary Source: The primary data comprises

information survey of “Market Mapping”. The data has

been collected directly from dealers through face to face

informal interactions.

Secondary Source: The secondary data was collected

from the company, like company websites.

This data has been collected by visiting a no. of Petrol

Pumps personally. The list of markets visited are as

follows:-

This list is divided in to two parts-

1). ARB (Allied Retail Business) related HPCL Petrol pumps

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2). Non- ARB related HPCL Petrol pumps

ARB—

1). krushna petroleum, Rajiv Gandhi IT Park, Phase- I,

pune

31

201

5

Petro

l

Diese

l

MA

R

254 742

APR 296 836

JAN 270 706

FEB 296 808


MARCH APRIL MAY JUNE0

100

200

300

400

500

600

700

800

900

PETROLDIESEL

2). Outlines, Shivaji nagar

PETROL POWER DIESAL2011 6919 3263 32632012 7051 4195 6852013 7560 291.5 4676

7646 281 4767

32


2011 2012 2013 20140

1000

2000

3000

4000

5000

6000

7000

8000

9000

PETROLPOWERDIESEL

3). Sai petroleum pune-banglore bypass

0 2011-122011-1222011-123

2011-12

2011-12

2012-13

2012-13

2013-14

2013-14

2014-15

2014-15

ms hsd ms hsd ms hsd ms hsd

April 300 615 245 635 185 635 232 601may 344 744 240 711 259 711 250 639june 290 683 225 614 212 614 225 657july 261 587 215 640 208 640 184 615aug 245 619 230 583 198 583 246 581sep 220 573 185 566 158 566 201 583oct 235 667 215 597 188 597 232 592nov 270 766 211 583 224 583 222 606dec 285 689 230 670 228 670 254 670jan 225 655 210 638 208 638 225 601feb 225 620 185 561 185 561 185 553mar 240 630 200 638 184 638 174 526

33


TOTAL314

0784

8259

1743

6243

7743

6263

0722

4

April may june july aug sep oct nov dec jan feb mar TOTAL0

1000

2000

3000

4000

5000

6000

7000

8000

9000

2011-122011-1222011-123

4). Sirode Petroleum,tathawade,pune

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Diesal No.of tanks Capacity/tank Selling/day Sat./Sun

2 22 kl 8 kl 10kl to 12kl

22kl 8 kl ----

Petrol 2 15 kl 4 kl 7kl to 6kl

15 kl 4 kl ----


5). Balwadkar Auto Service

Petrol NO. Of tanks Capacity Sold/day2 23kl 6500 lt

23kl 6500 ltPower- 1 9kl 600 lt

Diesal 2 23kl 2800 lt9kl

35


Non- ARB

1). Sangoi service station, Shivaji nagar

Diesel No. of tank capacity /tank selling/day Sunday2 22kl 7000 Lt. Low

16kl

Petrol 2 16kl 7000/day Low22kl

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2). Automotive service, Near dangechouk

2013-14 PURCHASE2014-15 PURCHASE

MS HSD TOTAL

APR 257 335 592

MAY 252 364 616

JUN 259 377 636

Total 768 1076 1844

JUL 246 394 640

AUG 269 399 668

SEP 246 346 592

Total 761 1139 1900

OCT 263 353 616

NOV 259 325 584

DEC 285 395 680

Total 807 1073 1880

JAN 274 374 648

FEB 260 352 612

37


MAR 278 398 676

Total 812 1124 1936

2014-15 PURCHASE

MONTH MS HSD TOTAL

APR 257 335 592

MAY 252 364 616

JUN 259 377 636

Total 768 1076 1844

JUL 246 394 640

AUG 269 399 668

SEP 246 346 592

Total 761 1139 1900

OCT 263 353 616

NOV 259 325 584

DEC 285 395 680

Total 807 1073 1880

JAN 274 374 648

FEB 260 352 612

MAR 278 398 676

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Total 812 1124 1936 MS

Series2

HSD

3148 4412 7560

SALE APR 222 352

MAY 245 390

JUN 228 381

Total 695 1123

JUL 223 386

AUG 234 391

SEP 223 376

Total 680 1153

OCT 244 414

NOV 221 334

DEC 243 404

Total 708 1152

JAN 238 405

FEB 222 355

MAR 244 371

Total 704 1131

Grand Total 2787 455

39


9

SALE

APR

MAY

JUN

Total

JUL

AUG

SEP

Total

OCT

NOV

DEC

Total

JAN

FEB

MAR

Total

40


3145

MAYTo

tal JUL

SEP

NOVTo

tal JAN

MARAPR

JUN

AUGTo

tal OCTDEC FE

BTo

tal0

1000

2000

3000

4000

5000

6000

7000

8000

222352574

41


3). Highway petroleum centre solapur road,Pune camp.

Diesal No. of tabks1 04-May

9Kl to 10Kl

Petrol 3 2,10per month

2,5022 kl to 23 kl

sat.=fast

Power- 1

10000 lt. sun.=slow

ATM 0Daily selling of petrol=7000 lt.

4). Shivaji services station, Pune

No. of tanks

3 9kl 5000 lt

9kl

9kl

42


Diesal

2 22kl 17- 18 lt

22kl

5). Vikas Petroleum,Hadapsar- pune

Petrol No. of tanks capacity

1 13,500 lt

2500 lt

Diesal 1 14000 lt 700- 800 lt

43


Some other ARB & Non- ARB Petrol Pumps are:

Petrol Dealers Association Sadhu Vaswani Chowk, Pune Gpo

Shell Petrol Pump Urit Nagar, Warje

Kulkarni Petrol Pump Laxmi Road, Sadashiv Peth

Kedari Service Station Kedari Road, Wanowrie

Gaikwad Service Station D P Road, Aundh

Kasat Petrol Pump Karve Road, Kothrud

Bhapkar Petrol Pump Opposite City, Pune Satara Road

Sai Gauri Petrol Pump Mumbai Pune Highway, Kasarwadi

Autolines Petrol Pump Road Main Road, Shivaji Nagar

Siddhivinayak Petrol Pump Pune Solapur Road, Manjari Farm

Shinde Petrol Pump Kiwale Village, Dehu Road

Bafna Petrol Pump Shukrawar Peth

Shree Seva Petrol Pump Shivaji Nagar Model Colony

Bright Travels And Petrol Pump Sassoon Road, Sasoon Road

Shirole Brothers Petrol Pump Maharaj, Jangali Maharaj Road

Saraswati Auto Services & Petr... To Pournima, Shankar Sheth Road

Saraswati Auto Services & Shankarsheth Road, Swargate

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Petr...Excel Petrol Pump Sahakari, Karve Road Deccan

Final comparison between ARB & Non- ARB HPCL Petrol Pumps:

ARB Petrol Pumps:

45

PETROL

DIESEL

11160000 30920000

660000 390000

8571 21344

30000 16000

13600 2800

TOTAL

11872171 2.14E+10


1 2 3 4 5 6 70

5000000000

10000000000

15000000000

20000000000

25000000000

PETROLSeries2DIESEL

Sampling Unit : Outlets in AKUDIMARKET, AUNDH, BALAJI NAGAR, CHINCHWAD

BUS STOP, CHINCHWAD STATION, CHINCHWAD STREET, DALVI NAGAR, DAPODI,

HINJEWADI, AKUDI, KALEWADI 1, KALEWADI 2, KARVENAGAR, KHADKI, KOREGAON

PARK/KALYANI NAGAR, PIMPRI, PRADHIKARAN, PUNE STATION, RAHATANI, RAVET,

DALVI NAGAR, THERGAON, VIMAN NAGAR, VISHAL NAGAR etc.

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Sample Size : All the Prospect Retailers of the area mentioned above.

Some might have been skipped but the report will however give an

accurate result.

Sampling Technique : Convenience Sampling, Random

Sampling

TOTAL RESPONDENTS

PUNE, = 165- 170 Petrol pumps.

RESEARCH TECHNIQUE

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The way to collect the data needed is to Interact with the Dealers.

Interaction with the Retailers has 3 main steps :-

Meeting with Dealers

Asking open creative questions about what is required.

Using a 'content mirror' to ensure understanding and show you

are listening and interested.

Data collected is of two types:-

Quantitative data

Qualitative data

To analyse quantitative data, statistical tool used are COLUMN CHARTS

To analyse the qualitative data, personal sense of judgment, knowledge

about the company and growing personal experience in the market with

the passage of time played a vital role.

Non- ARB Petrol Pumps:

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DIESEL

PETROL

1400 140004559000 27870004428000 3145000

9000 700017000 5000

700 2500

TOTAL9015100 5960500

Marketing models used in the study:

SWOT ANALYSIS:

Strength: weakness

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1).Network of 13000 outlets 1).Company operations are o bound by Government regulations

2).stage of Art Technologies At Refinery 2).Environmental Hazards from

3). Better connections. Wastages

Opportunity Threats

1).Demand-Supply gap in India 1).Threats comes competitors

2).Increasing natural gas market globally 2).Economic instability and f fluctuations in India’s policies

Competitors of HPCL:

Here, I found two big competitors of HPCL, which is known as:

1. IOCL (INDIAN OIL CORPORATION LIMITED)2. BPCL (BHARAT PETROLEUM CORPORATION LIMITED)

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IOCL:

Indian Oil began operations in 1958 as Indian Oil Company Ltd. The Indian Oil Corporation was formed in 1964, with the merger of Indian Refineries Ltd.Recently Indian Oil Corp (IOC) has raised $500 million by selling 10-year dollar-denominated bonds, its fourth such issue overseas in the last three and a half year.

In 2003, its Gujarat Refinery was awarded the "Best of all "Rajiv Gandhi National Quality Award .

The main services offered by Indian Oil are Refining, Marketing, Pipelines, R&D and Training. Indian Oil’s Research and Development Centre (R&D) at Faridabad supports, develops and provides the necessary technology solutions to the operating divisions of the corporation and its customers within the country and abroad.

Comparison between IOCL & HPCL:

Yearly --------------------------------- in Rs. Cr. ---------------------------------

Indian Oil Corporation Ltd.

Hindustan Petroleum Corporation Ltd.

Mar' 15 Mar' 15

Sales 437,526.13 206,626.19

Other Income 4,144.05 1,168.41

Stock Adjustment 8,216.07 3,749.44

Raw Material 205,049.94 56,158.44

Power And Fuel 0.00 0.00

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Employee Expenses 7,104.78 2,414.66

Excise 0.00 0.00

Admin And Selling Expenses 0.00 0.00

Research And Devlopment Expenses 0.00 0.00

Expenses Capitalised 0.00 0.00

Other Expeses 207,008.26 138,640.20

Provisions Made 0.00 0.00

Operating Profit 10,147.08 5,663.45

Interest 3,435.27 706.59

Gross Profit 10,855.86 6,125.27

Depreciation 4,528.66 1,971.15

Taxation 2,722.26 1,420.86

Net Profit / Loss 5,273.03 2,733.26

Extra Ordinary Item 1,668.09 0.00

Prior Year Adjustments 0.00 0.00

Equity Capital 2,427.95 338.63

Equity Dividend Rate 0.00 0.00

Agg.Of Non-Prom. Shares (in lacs) 7,629.87 1,655.51

Agg.Of Non PromotoHolding(%) 31.43 48.89

OPM(%) 2.32 2.74

GPM(%) 2.46 2.95

NPM(%) 1.19 1.32

EPS (in Rs.) 21.72 80.72

2). BP(Bharat petroleum):

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In 1889 during vast industrial development, an important player in the South Asian market was the Burmah Oil Company. Though incorporated in Scotland in 1886, the company grew out of the enterprises of the Chef Rohit Oil Company, which had been formed in 1871 to refine crude oil produced from primitive hand dug wells in Upper Burma.

In 1928, Asiatic Petroleum Company (India) started cooperation with Burma oil company. This alliance led to the formation of Burmah-Shell Oil Storage and Distributing Company of India Limited. Burmah Shell began its operations with import and marketing of Kerosene.

On 24 January 1976, the Burmah Shell was taken over by the Government of India to form Bharat Refineries Limited. On 1 August 1977, it was renamed Bharat Petroleum Corporation Limited. It was also the first refinery to process newly found indigenous crude Bombay High.

In 2003, following a petition by the Centre for Public Interest Litigation, the Supreme Court restrained the Central government from privatizing Hindustan Petroleum and Bharat Petroleum without the approval of Parliament.[3] As counsel for the CPIL, Rajinder Sachar and Prashant Bhushan said that the only way to disinvest in the companies would be to repeal or amend the Acts by which they were nationalized in the 1970s.[4] As a result, the government would need a majority in both houses to push through any privatization.

Comparison between BPCL & HPCL:

Yearly --------------------------------- in Rs. Cr. ---------------------------------

Bharat Petroleum Corporation Ltd.

Hindustan Petroleum Corporation Ltd.

Mar' 15 Mar' 15

Sales 238,086.90 206,626.19

Other Income 2,199.96 1,168.41

Stock Adjustment 4,513.32 3,749.44

Raw Material 94,424.39 56,158.44

Power And Fuel 0.00 0.00

Employee Expenses 2,085.60 2,414.66

53

https://en.wikipedia.org/wiki/Bharat_Petroleum#cite_note-4

https://en.wikipedia.org/wiki/Prashant_Bhushan

https://en.wikipedia.org/wiki/Rajinder_Sachar

https://en.wikipedia.org/wiki/Bharat_Petroleum#cite_note-Rautray20110304-3

https://en.wikipedia.org/wiki/Hindustan_Petroleum

https://en.wikipedia.org/wiki/Hindustan_Petroleum

https://en.wikipedia.org/wiki/Centre_for_Public_Interest_Litigation

https://en.wikipedia.org/wiki/Bombay_High

https://en.wikipedia.org/wiki/Asiatic_Petroleum_Company

https://en.wikipedia.org/wiki/Burmah_Oil


Excise 0.00 0.00

Admin And Selling Expenses 0.00 0.00

Research And Devlopment Expenses 0.00 0.00

Expenses Capitalised 0.00 0.00

Other Expeses 128,748.92 138,640.20

Provisions Made 0.00 0.00

Operating Profit 8,314.67 5,663.45

Interest 583.10 706.59

Gross Profit 9,931.53 6,125.27

Depreciation 2,516.02 1,971.15

Taxation 2,331.00 1,420.86

Net Profit / Loss 5,084.51 2,733.26

Extra Ordinary Item 0.00 0.00

Prior Year Adjustments 0.00 0.00

Equity Capital 723.08 338.63

Equity Dividend Rate 0.00 0.00

Agg.Of Non-Prom. Shares (in lacs) 3,258.84 1,655.51

Agg.Of Non PromotoHolding(%) 45.07 48.89

OPM(%) 3.49 2.74

GPM(%) 4.13 2.95

NPM(%) 2.12 1.32

EPS (in Rs.) 70.32 80.72

LIMITATIONS

Due to time constraint, few Dealers might have been skipped from the

areas visited.

Few of the respondents were not open with their responses.

Lack of Dealers cooperation was a major constraint.

There may be error due to biasness of respondents.

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FINDINGS

1). Retail Business Unit recorded a growth of 8.7 %growth in MS and 6.6 % growth in HSD

2). More than 723 new retail outlets were commissioned thereby making the total network of over 12869 outlets

3). In developed countries, allied retail business forms up to 60% of the total revenue earned by fuel stations

4). HPCL has tied up with 15 banks who set up their ATMs in urban stations.

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5). HPCL has already given a facelift to 150 such outlets at Rs 10 lakh per station. It is expected to cover 500 stations by 200

6). Most of the employees /Dealers of HPCL Petrol pumps were not aware about ARB

7). HPCL has also embarked on a beautification drive of all its petrol stations to bring it under the Club HP brand umbrella.

8). 17 out of 25 HPCL Petrol pumps were having ARB.

SUGGESTION & RECOMMENDATION

1) Service has to be improved extensively. Due to poor service

many Outlets have stopped or keeping low stocks of the

products.

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2) Company should select its Dealers properly as their

behaviour portrays either a negative image or positive image

of the company in the market.

3) A proper check should be kept on the prices at which our

products are available to the final retailers. Whether they are

getting proper margins, whether they have been exploited

by the distributor or not. All these point should be given

emphasis.

4) Proper check should be kept on Local & Duplicate Products.

5) Small Outlets also play an important role towards company

sales, therefore proper attention should be shown towards

them also.

6) Delivery time can be reduced by using an online billing

system.

Bibliography

57


Wikipedia.com

Google.com

www.indianotes.com

www.slideshare.com

Philip Kotler “Marketing Management”

Marketing Research, an Applied Research.

HINDUSTAN PETROLEUM CORPORATION LIMITED

Loni- Hadapsar Terminal, Pune

58

http://www.slideshare.com/


CUSTOMER SATISFACTION QUESTIONNAIRE

This survey is ARB (Allied Retail Business) petrol of HPCL

1. Do you know about ARB?

Yes No

If yes go to question 2

2. Do you think ARB has impact on sales of Petrol & Diesel ?

Yes

No

Question 3

3. What impact it has on sales of petrol and diesel?

Increase

Decrease

4. How much it has increased ?

%

5. Do you think ARB has been successful in recent years ?

Yes

No

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6. What are your remarks on ARB ?

60

summer internship project

Documents

balaji instituteof telecom

pune gaurav shukla tm1413335

retail business unit

new retail outlets

retail vision

hpcl loni

allied retail business

competitors of hpcl