Research Insight

Sector: Oil and Gas

Company: Hindustan Petroleum Corporation Ltd. (HPCL)

General Overview of HPCL

With its headquarters in Mumbai, Maharashtra, Hindustan Petroleum Corporation

Limited (HPCL) is a subsidiary of Oil and Natural Gas Corporation, which is
owned by the Ministry of Petroleum and Natural Gas of the Government of India.
It has a 25% market share among public sector undertakings (PSUs) in India, as
well as a robust marketing infrastructure. ONGC, which owns a significant stake in
the corporation, is its parent company. As of 2016, the company was rated 367th
on Fortune's Global 500 list of the world's largest corporations. In March 2019,
HPCL was delisted from the NIFTY 50 INDEX. The corporation became a
Maharatna PSU on October 24, 2019.

Shareholding Pattern of HPCL

% Share
Holder's Name No of Shares Holding

No of Shares 1418548345 100%

Promoters 778845375 54.90%
Foreign
Institutions 259384523 18.29%
Non-Banks
Mutual Funds 161342312 11.37%
Central
Government 35103402 2.47%
Others 119179980 8.40%
General Public 64692750 4.56%

Management of HPCL

Name Designation

U Krishna Murty Chief Vigilance Officer

 Executive Director - Corporate R &
G Sriganesh D
Executive Director - Operations &
A Pande Distributions
Rakesh Misri Executive Director - LPG
Ajit Singh Executive Director - Direct Sales
V K Jain Executive Director - Treasury
Executive Director - Information
R Radhakrishnan Sytems
Executive Director - Corporate
R Kesavan Finance & CFO
MVR Executive Director - Central
Krishnaswamy Procurement
K Rajeswara Rao Adviser in EAC to the Honble PM
SWOT Analysis of HPCL

a) Strengths

1. HPCL is a prominent oil and gas business in India.

2. Hindustan Petroleum owns and operates India's largest lube refinery.

3. A diverse product portfolio that includes oil, natural gas, and lubricants,
among other things.

4. HPCL owns and operates India's largest lube refinery, which produces
international-standard lube base oils.

5. Produces over 300 different types of lubricants, specialty oils, and greases.

6. HPCL employs around 11,000 workers.

7. The refineries of HPCL are in Mumbai, Vishakhapatnam, Mangalore,

Bhatinda, and Rajasthan.

8. The Indian government's strong backing ensures financial stability.

b) Weaknesses

1. Limited market share due to intense rivalry from other PSUs and foreign oil
firms.
 2. Government intervention frequently degrades the efficiency of operations.

c) Opportunities

1. HPCL can take advantage of rising fuel/oil prices to boost profitability.

2. Increasing natural gas consumption in transportation and industry

3. To develop the export market, HPCL can focus on partnerships and

worldwide expansion.

4. Acquisitions and tie-ups to increase its position in the market.

d) Threats

1. HPCL's performance may be influenced by government rules.

2. There is a lot of competition from other gamers.

3. HPCL's profitability may be harmed by fluctuating market and crude prices.

Competitors of HPCL

a) Oil and Natural Gas Corporation (ONGC) is an energy holding corporation

that specializes in crude oil and natural gas exploration, development, and
production.
b) ICELAND OIL is a corporation that sells and services petroleum products.
c) Askar Oil is an oil marketing company.
d) Morgan Fuels is a corporation that provides fuel services.

Conclusion and way forward for HPCL

Despite the hurdles posed by the COVID-19 pandemic, the company's profitability
improved significantly because of smart planning, strong operational performance,
and good supply chain management. It also benefited from favorable exchange rate
fluctuations and inventory gains. During the year, the company generated gross
sales of Rs. 2,69,243 crores. With a strong balance sheet and cash flows, your
company continues to provide value to its owners. For the fiscal year 2020-21,
your Company's Board of Directors has suggested paying a final dividend of 22.75
per share.
The company is also collaborating with several organizations, including startups,
to provide end-to-end EV charging infrastructure across the country, allowing
customers to choose from a variety of fuel options. Your company is forming joint
ventures to build large-scale petrochemical production facilities to capitalize on
current and future prospects in chemicals and specialty products.