1. 8th Oil & Gas HR Round Table
New Delhi
JV Models – Learnings from Out / In - Sourcing

2. JV Definition
Joint Venture – entity formed between
two or more parties to undertake
economic activity together

3. Scope of Presentation
Experiences and Learning for HR -
implementation of JV models at
HPCL

4. THE HP HR WAY…
Learning’s from our JV Models

5. Existing Joint Ventures
HPCL 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 MW
CREDA-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

6. 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

7. 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

8. 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

9. HPCL HR Model - alignment of JV
Future/strategic focus
Strategic partner Change Agent
(Management of Strategic (Management of
Human Resources) Transformation
Processes
and change)
People
Administrative expert
Employee champion
(Management of
(Deployment of Best Practices)
Organisation infrastructure)
Day-to-day operational focus
The Dave Ulrich Model

10. Life Cycle of Change
7. Spin Off
6. Integrate
5. Implement
4. Customization
3.Conceptualization
2. Benchmark
8. Reassess
1. Strategic intent

11. Life Cycle of Change
1.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 root
8. Reassess Periodic reassessment

12. Outsourcing / Insourcing
Out-sourcing : Sourcing external expertise, knowledge
and experience for Effectiveness in initiatives
In-sourcing: Imbibing the Expertise for sustainable
implementation internally.

13. HP HR Leadership Model for JV’s
Initializing
Outsourcing
Manpower
Deployment
In-sourcing
Externalizing
Time Scale of implementation

14. JV- Leadership Opportunities for HR
Opportunity to work beyond the current restrictions
Opportunity to optimize/ opti-size.
Opportunity to implement contemporary HR thought
processes.
Opportunity for delivering value to business.
Opportunity to establish new cultural systems
Enables paradigm shift in traditional thought processes and
triggers directions towards exploring progressive areas.
Access to reservoir of international benchmarks.

15. JV- Pitfalls to avoid for HR
Implant existing culture
Supplant existing systems / procedures
Carry forward existing decision making models
Benchmark against internal indices/ equity
Entrench/ identify with the new JV

16. Thank You