Fundamentals of Marketing

2019-21 Batch
“Company Analysis “
(Bharat Petroleum)
Submitted by: Bharti Govindani
Roll no: PGFC1911
Submitted to: Dr Anurag Dugar
(Course Instructor)
Submitted on: 10 August 2019
Plagiarism Check
BHARAT PETROLEUM
 ( COMPANY PROFILE )
Bharat Petroleum Corporation Limited (BPCL) is an Indian
company which is into refining, processing and distributing
products of petroleum and exploration and production of
hydrocarbons. It provides aviation, fuel, kerosene, petrol, diesel,
compressed natural gas (CNG), liquefied petroleum gas and
lubricants. In addition, it offers industrial fuel products ,such as
white oil, black oil, industrial gases, naphtha, diesel, kerosene,
furnance oil, bitumen, sulphur and solvents. The company offers
its products under Speed, MAK and Bharatgas brands. BPCL
distributes fuel to airlines including international and domestic.
It operates fuel stations that sell petrol, diesel, automotive
liquefied petroleum gas (LPG),and compressed natural gas. The
company is headquartered in Mumbai, Maharashtra, India.
The company’s Downstream Petroleum segment’s activities
include refining and marketing of petroleum products. The
company also produces bitumen and sulfur. It also offers various
gases, including poly propelene feed stock, natural gas, and
bharat metal cutting gas. The company markets its products
through its network of retail outlets, gas stations, kerosene
dealers, LPG distributors, and lubricants shops, as well as
supplying fuels directly to international and domestic airlines.
During FY2018, BPCL’s refineries at Mumbai and Kochi had
12 MMT and 15.5 MMTPA, respectively. It had 50% interest in
Bharat Oman Refineries Ltd (BORL), a joint venture that
operates a refinery at Bina in Madhya Pradesh, 61.65% interest
in Numaligarh Refinery Ltd, which operates a 3 MMTPA
refinery at Numaligarh, Assam. In FY2018, the segment
operated four refineries with aggregate distillation capacity of
34.72 million metric tones (MMT). Its crude throughout was
34.72MMT. It had 110 depots, 51 LPG bottling plants, 50
aviation service stations, 3.95 million KL of total tankages,
13,980 retail outlets, 5084 LPG distributors and had 66.63
million LPG customers.
The company also operated a network of multiproducts pipelines
of 2,241 km with design capacity of 17.84 MMT and
throughput of 14.97 MMT. In FY2018, the Downstream
Petroleum segment reported revenues of INR 2,792,230 million,
which accounted for 99.9% of the company’s revenue.
BPCL’s Exploration and Production (E&P) of hydrocarbons
segment operates through Bharat Petro Resources (BPRL), a
wholly owned subsidiary of the company. BPRL has
participating interests in 24 exploration blocks in eight countries
along with equity stake in two Russian entities, holding the
license to 4 producing assets in Russia. Out of these blocks,
twelve blocks are in India, six in Brazil, and one each in UAE,
Mozambique, Indonesia, Israel, Australia and Timor Leste.
BPRL’s total acreage holding is around 25,359 sq. km, of which
approximately 77% is offshore acreage. BPRL and its consortia
have a total of 26 discoveries in respect of blocks held in five
countries including Mozambique, Brazil, Indonesia, India and
Australia. In FY2018, the Exploration and Production (E&P) of
Hydrocarbons segment reported revenues of INR897 million,
which accounted for 0.003% of the company's revenue. The
company's research activities aims to develop its existing
products and improve to offer better products. The company has
research facilities in India including Uttar Pradesh and Mumbai
and Greater Noida.
 SWOT & PESTEL ANALYSIS

SWOT ANALYSIS: This a technique, helpful to organization

to identify Strength, Weakness, Threats & Opportunities

PESTEL ANALYSIS: This is a framework used by marketers

to analyze MACRO environmental factors that have an impact
on organization.
 Company’s SWOT & PESTEL ANALYSIS

S. FACTOR INTERNAL/ STREN OPPORT- REASON STRATEGY

N S MI- GTH & UNITY &
o CRO/MACR WEAKN THREATS
O -ESS

1) Go-Green Macro Strength Opportuni In order to By utilizing

Approach (environmenta ty remain at the waste and
-l ) edge of the ecological
competitors and factors such
to pursue as :
sustainable and  Captive
profitable power
growth generation
opportunities. from solar
Also it becomes and wind
important for energy
an organization  Biogas
to take an generation
initiative from waste
towards society  Creating
welfare so as to feasible and
bolster economical
company’s way for EV
image and its charging
brand. solution-s.
2) Digital Macro The main aim is By digitally assessing the
Transform (Technological) to setup “Smart consumer’s requirement and
-ation Plant expectations for oil and gas
Implementation value chain and providing
” and also the the same which will further
objective is to help them in providing
empower predictive information on
people to do the impact of throughput.
better work.
This will further
help in
improving
refinery -
economics and
operations.
3) Customer Micro Strength Opportuni To target and  For rural segment:
–Oriented (Customer) t-y reach different BPCL has introduced
market 20 rural LPG
segments like marketing vechiles
urban, semi- which offers filling
urban,rural facility near customer
location.
 For industrial
customer: Company
has been showing
concern on B2B
initiatives.
Also company states
that in future will
focus on Vechile
Tracking System
through swipe cards.
4) Product Macro Due to the Under Propylene Derivatives
Expansion (Economical) Opportuni strong reach Petrochemical Project
ty and high (PDPP), BPCL has planned for
demand of the manufacturing niche
products of the petrochemicals such as
company,BPCL polyol, propylene glycol and
is expanding its monoethylene glycol at
product line so kochi refinery to be
as to reach the completed by 2024.
consumers in all
the ways so as
to gain high
 profit margins.

5) Sharehold Macro & ----- Threat Struggling to BPCL declared high interium
-er’s Internal meet budget dividend of 67.5% to 110%
Returns (Political & targets, of the face value of their
Legal) government shares also undertook share
asked BPCL and buybacks in financial year
other cash rich ended March 31st 2019.
PSU’s such as
OMC’s like
IOC,HPCL etc. to
pay second
interium
dividend as well
as buy back its
shares.
6) New Internal Strength Opportuni BPCL is BPCL is planning to invest
Subsidiary ty transferring its 1500-1700 crore in building
gas business to a floating liquefied natural
a new gas(LNG) import terminal at
subsidiary Krishnapatnam in Andhra
Bharat Gas Pradesh by 2022,the
Resources Ltd. company will hold 74% of
(BGRL) . As the the interest and remaining
company could 26% will be held by Petronet
estimate that LNG Ltd.
there is more
demand of
natural gas than
oil.
7) Profitabili Macro Threat Reports states The company must report
ty (Economical) that there is weak results by adventitious
37.70% year on loss which will be partially
year (YoY) fall in offset byhigher than normal
adjusted profits (over Rs. 0.5/litre).
due to loss in
inventory and
muted gross
refining
margins.
8) Outlet Internal Opportuni  The Investment of 11,300 is
Expansion ty main expected to expand the
aim is to refinery at Kochi Refinery till
reduce 2022 end where supply of
the special petrochemicals such
country’ as acrylic acid, butyl
s acid,ethyl hexyl
depende acylate,normal butanol will
nce on be there.
imports
of
petroche
-micals
this will
further
help in
foreign
exchang
e savings
of about
Rs.1300
crore
per
annum
for the
country.

 To
transfor
m Kochi
Refinery
into a
“World
Class
 Refinery
” with
largest
refining
capacity
among
public
sector
refinierie
s.
9) Promoting Macro Opportuni  The Under Integrated Refinery
Agro- (Economical) ty main Expansion Project (IREP),
Processin intentio BPCL Kochi refinery
g n was to launched the speciality
primarily product of Food Grade
support Quality Hexane (FGQ
(primary Hexane). This product is
sector) mainly used in manufactring
agro- spices ,vegetable oil, drugs
processi and pharmaceutical.
ng so as
to reach
and
target
the
custome
rs in
some or
the
other
way by
producin
g agro
products
.
 As this
agro
product
(FGQ
Hexane)
used in
our
country
is
 importe
d ,So the
compan
y
grabbed
this
opportu
n-ity by
producin
-g the
prouct in
our
country
which
would
further
benefit
both
country
as well
as the
organiza
tion.
10 Making a Macro Strength Opportuni The main aim Recruitment and training of
Difference (Social) ty was to make a 11 women chemical
difference by engineers has been done as
breaking gender panel operators in various
wall and units of BPCL’s operation
banishing the department at Mumbai and
belief that job Kochi. Their basic job is
involving night operating the units and
shifts cannot be solving problems in units.
done by Also several measures had
women. This been took to ensure the
new initiative safety of women working in
by firm can night shift.
fortify firm’s
image.
11 Skill Internal Strength Opportuni BPCL Skill This centre has been
Developm ty Development constructed as Green
ent Centre Centre was Building at a cost of
inaugurated Rs.14.98 crore. For
with the aim to training
develop skills of automobile,mechanic
human al,computer
personnel for engineering skills as
the efficient well as Human
working. Resource
Development skills.
(In my opinion
probably the
initiative is correct
from the company’s
perspective, but not
from the perspective
of the employees as
it becomes
challenging for them
to pursue the training
after working hours.)
12 Physical Internal Strength During Financial  Engaging
Performan year 2018-19, employees in
-ce BPCL created decision
new making of
benchmarks in operational
physical and financial
performance by matters so as
its staff to keep
members as transparency
BPCL achieved among them
highest refining which further
throughout of motivates
31.01 Million subordinates
Metric to work
Tonne(MMT) efficiently
and peak towards the
market sales of same
43.07 MMT. company’s
goal in order
to attain the
profits.
 Also by giving
 timely
feedbacks of
the
employees’s
performance.
 Cultivating a
positive work
environment
by rewarding
high
performing -
employees
with bonus &
incentives
13 Creating Internal Strength Opportuni BPCL is the first Manager has formed
Strategic ty oil company to five Strategic Business
Business begun concrete Units (SBU) for
Units work on different businesses
(SBU) restructuring its that are LPG,
operation industrial fuels,
,while its refinery, lubricants
competitors i.e. and logistics so as to
Indian Oil enable sharper on
Corporation every business unit.
(IOC),
Hindustan
Petroleum
Corporation
Ltd. (HPCL)
have only
started work
with Price
Waterhouse.
The main aim is
to be ahead of
its competitors
in the market
and and
enjoying
operational and
financial
freedom.
14 Ease in Internal Strength ---- The main  Company has
Decision- objective is to also formed
 Making have ease in top level
decision making management
by creating consisting of
flatter Chairman,Man
organization to aging Director
speed up and other two
decision making executive
process which director. They
would result in will be
what and how responsible
to achieve. for making
overall
business
strategy and
corporate
vision.

15 Rationalis- Internal Strength ------ In order to The more staff should

ation of manage the be transferred at the
Work- staff properly at crucial areas i.e. the
force every business more emphasis
unit. As there is should be there on
surpluses and field force than office
shortages at and clerical staff.
some locations.
So, to equalize
them by
shuffling
personnel onto
different
locations.
 References
1) https://www.livemint.com/companies/news/bpcl-to-set-up-centre-of-excellence-to-
boost-efficiency-1567161720763.html
2) https://www.livemint.com/companies/news/bpcl-to-set-up-centre-of-excellence-to-
boost-efficiency-1567161720763.html
https://www.aspentech.com/en/blog/blog/BPCL_Refinery_Reveals_Pathways_to_Digita
l_Transformation
3) https://economictimes.indiatimes.com/bpcl-unveils-retail-marketing-
strategy/articleshow/23261822.cms?from=mdr
4) https://www.livemint.com/companies/news/bpcl-to-set-up-centre-of-excellence-to-
boost-efficiency-1567161720763.html
5) https://www.business-standard.com/article/pti-stories/fitch-ratings-sees-risks-to-oil-
marketing-companies-as-govt-seeks-more-returns-119042600350_1.html
6) https://www.business-standard.com/article/pti-stories/bpcl-to-invest-rs-1-500-1-700-
cr-in-floating-lng-terminal-in-ap-119082600710_1.html
7) https://economictimes.indiatimes.com/markets/stocks/earnings/bpcl-may-report-35-
fall-in-q1-profit/articleshow/70593011.cms
8) https://www.bharatpetroleum.com/our-businesses/refineries/kochi-refinery/irep.aspx
9) https://economictimes.indiatimes.com/industry/indl-goods/svs/petrochem/bpcl-kochi-
refinery-develops-food-grade-quality-product-fgq-hexane/articleshow/66462003.cms
10) https://www.thehindu.com/news/cities/mumbai/bpcl-breaks-gender-wall-recruits-11-
women-engineers-for-night-shift/article27768147.ece
11) https://www.psuconnect.in/news/BPCL-Skill-Development-Center-inaugurated/18586/
12) https://www.psuconnect.in/news/bharat-petroleum-created-new-benchmarks-in-
physical-performance/18573
13) https://www.business-standard.com/article/specials/bpcl-embarks-on-major-
restructuring-exercise-197051701018_1.html
14) https://www.business-standard.com/article/specials/bpcl-embarks-on-major-
restructuring-exercise-197051701018_1.html
15) https://www.business-standard.com/article/specials/bpcl-embarks-on-major-
restructuring-exercise-197051701018_1.html