hpcl strategic formulation ,bcg matrix ,porters 5 forces,swot analysis,corporate governance prepared by Nigamananda (papu)

1. CENTURION UNIVERSIITY ,PARALAKHEMUNDI
A
PRESENTATION ON
HPCL
• GROUP 6
• Dinesh ku padhy
• Suchismita mishra
• Sunil kumar biswal
• Manamohan mahapatro
• Sutapa rani dey
• Nigamananda Nanda

2. OBJECTIVES
 To know the brief introduction of HPCL
 TO know the products as well as competitors of
HPCL
 To know the SWOT analysis of HPCL
 To know the industry analysis of HPCL (Porter’s 5
forces)
 To know the CSR activities of HPCL
 To know the Research and development of HPCL
 To explore the corporate governance of HPCL

3. • Founded -1974
• Hindustan Petroleum Corporation (HPCL)
is a state-owned company, engaged in
the refining of crude oil and marketing of
oil products. The company primarily
operates in India.
• headquartered -Mumbai, India
• employees - 11,250 people.
• Chairman – S. Roy Choudhary

5. Products –
• Petrol
• Diesel
• Lubricants
• LPG
• Aviation turbine fuel
• Bitumen
• Furnace oil

6. Competitors
1. Bharat Petroleum
Corporation Ltd.
2. Chennai Petroleum
Corporation Ltd.
3. Hindustan Petroleum
Corporation Ltd.

7. SWOT ANALYSIS
Strength –
2. Network of 1400
Weak ness
retail outlets and more 1. Company
than 250 retail outlets operations are
in various stage of bound by Govt
construction
3. State of art regulations and
technologies at refinery fluctuations.
4. First Indian private
sector company to
enter petro retailing
2. Net sales are
5. Very active in CSR affected due to
activities increasing cost

8. Opportunity Threats
1. Demand-Supply 1.Threats from
gap in India competitors
2.Increasing natural 2. Competitors
gas market globally receiving subsidies on
3.Heavy taxes by central and
industrialization state government
causing an increase 3.Economic instability
in demand for fuel and fluctuations in
India's policies

9. Industrial analysis , (porter’s 5 forces) of HPCL
THREAT OF NEW ENTRANTS: BARGAINING POWER OF
HIGH SUPPLIERS: MEDIUM
• Developing Customer Base • Supplier industry is
takes dominated by Government
Long time Firms. Degree of
• Product Differentiation fragmentation is more in
• Capital costs are High supplier.
• Switching Costs are High • Supplier’s products have no
• Access to Distribution substitutes.
Channels • Product of the supplier
• Gestation Period is Long becomes an important input
• Government Policies to the product of buyer.
• Demand for suppliers
products
• Suppliers’ products have high
switching costs
•

10. BARGAINING POWER OF BUYERS: THREAT OF SUBSTITUTE PRODUCTS:
VERY LOW LOW
• Buyers are heavily dependent on • Clearly low substitute products as
the product. of now.
• Purchase accounts for a small • R&D for the substitutes in nascent
fraction of supplier’s sales. stage.
• Polymers allow better performance
• Products are heavily dependent
than substitutes in most
on the fuel for transportation. applications.
• Supplier can sell to anyone • But, Polymers are non-
irrespective of any restriction. biodegradable and cause concerns.
• Product Quality in the hands of • Fiber intermediates are used which
the supplier. have better properties than
substitutes.
• The prices charged by the firms are
limited to products with similar
function .

11. • RIVALRY AMONG COMPETITIVE FIRMS:
MEDIUM Intense rivalry is due to:
Fragmentation is Low.
Rivalry is cyclical and often happens.
Apart from prices, there is competition in quality,
cost and support.
Making new product introductions.

12. MAJOR ISSUES OF HPCL
• Difficult product differentiation
• Increasing consumption of petroleum products
@ 4% per year
• Fluctuating crude oil market involving geo-
politics
• Improper pricing mechanism
• Reducing income constraining further
investments
• Increasing competition from private as well as
other PSUs

13. Strategies of HPCL
• HPCL continually invests in innovative
technologies to enhance the effectiveness of
employees and bring qualitative changes in
service.
• Business Process Re-Engineering exercise,
• creation of Strategic Business Units
• ERP implementation
• Organizational Transformation
• benchmarking of refineries and terminals for
product specifications

14. REASEARCH AND
DEVELOPMENT
• The Energy and • Indian Institute of
Science
Resource (IISc ), Bangalore:
Institute • "Society for
Innovation and
(TERI ), New Development" (SID)
Delhi: is an innovation
Centre of IISc and
"Screening and will collaborate on
selection of behalf of IISc with
HPCL.
efficient microbial • setting up of R&D
strains for bio Centre and

15. • Advanced Research
Technologies (ART),
Chevron & IIT Kanpur :
HPCL has entered into a
Memorandum of
Understanding with the
following organizations.
• Advance Refining
Technologies LLC (ART)

16. CSR Purpose statement of HPCL
 Serving the community
 Using core competence, expertise and technology of our
business to reach the common people, especially the
underprivileged
 Developing capacity in the community
 Enhancing human excellence and improving quality of life is
our endeavor

17. MIDDAY MILL OF GOVT
Health services in Awareness on HIV among
SCHOOL
Rural Areas truckers - Suraksha
Health at Rehabilitation
Centres- Navjyot CHILD RIGHT –BAL HAQ MUSKAN

18. HP Exploration and Production Portfolio
• HP E&P has entered into strategic
partnerships and participated in various
bidding rounds within the country as well as
overseas.
• HPCL, in consortium with E&P partners
companies currently has 19 nos. blocks in
India, and 3 nos. overseas blocks in Australia
and Egypt.
• HPCL intends to leverage and consolidate its
current position and formulate & implement a
strategy for E&P business based on
opportunities both within and outside India.

19. BCG MATRIX
• it is a “star” product. Indian Oil is the highest ranked Indian
company in the prestigious Fortune Global 500 listing
• the 116th position(in 2008) based on fiscal 2007 performance
• 18thlargest petroleum company in the world and the number
one petroleum trading company among the National Oil
Companies in the Asia-Pacific region.

20. Corporate Governance in HPCL
– Implementation
– Decision making process
– Advisory Council
– Exercise of Authority
– Limits of Authority Manual (LAM)
– Purchase Manual
– Right to Information Act 2005