December 15, 2010

NOTE OF ACKNOWLEDGEMENT

Dear Reader:

I would like to thank Almighty ALLAH, for finally making my efforts

worthwhile. I would like to thank then Ms Umme Hina Faiz, Course Instructor,
Business Communication, for her amiable support and guidance in
completing this course and report. It is due to her that we had the
opportunity of learning Foundations of Business Communication and
enhance related aspects to it. This will help us in enhancing our
communication skills in the practical scenario.

Sincerely,

Syed Asif Ali Kazmi

Business Communication Page 1

December 15, 2010

Ms Umme Hina Faiz

Course Instructor
Business Communication

NOTE OF TRANSMITTAL

Dear Madam,

A brief report on “BYCO” is hereby submitted as a Project Report for the course of
Business Communication.
The Project Report is an effort to reflect all the elements being illustrated and
conceptualized by you during your instructions for this project.
During the course, our class was strongly motivated and enthusiastically supported
by you.

Your insightful guidance throughout the course has been vital for the improvement
and worthiness for our efforts not only as enhanced professional but more
importantly as an improved citizen of the society and last but not the least an
enhanced Patriotic of this motherland and this thanksgiving is not aimed at any
persuasion for good grades, but it is really meant to show our gratitude for all your
sincerity with your profession and your students.

We really thank you for all what you have been and we really look forward to your
guidance in the times to come.

Sincerely,

Syed Asif Ali Kazmi

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Table of contents:
Acknowledgement Page
1

Letter of Transmittal Page

2

Table of Contents Page 3

BYCO At a Glance Page 4

Brief History / Introduction Page

5

Mission Statement / Vision Page

7
• Environment Health Safety & Security Policy
Page 8
• Human Resource Development Page
9
Products
• Furnace Oil Page 10
• High Speed Diesel Page
11
• Motor Gasoline Page 12

• Liquefied Petroleum Gas Page

13
Future Outlook Page 14
Oil Refining Business Page
15
Petroleum Marketing Business Page
15

Business Communication Page 3

Conclusion of the Visit Page 16

BYCO At a Glance
Name Byco Petroleum Pakistan Limited
Formerly Bosicor Pakistan Limited

Established January 1995

Registered Office The Harbour Front, 9th Floor Dolmen

City
HC-3, Block 4, Marine Drive, Clifton
Karachi – 75600, Pakistan.
UAN: (92 21) 111 222 081
Fax: (92 21) 111 888 081

Plant Address
Mouza Kund Plant, Sub Tehsil Gadani,
Near Hub Power Company Ltd. Power
plant (HUBCO), District Lasbela,
Baluchistan.

Line of Business Oil Refining, i.e. producing & supplying

petroleum products such as Liquefied
Petroleum Gas (LPG), Naphtha, High
Octane Blending Component (HOBC),
Motor Spirits, Kerosene, Aviation Fuels 1
& 4, High Speed Diesel & Furnace Oil.

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 Crude Refining Capacity
Authorized Capital
Issued, Subscribed & Paid up
Capital
35,000 barrels per day
1.738 million metric tons per annum
Pak Rs. 5,000,000,000
Pak Rs. 3,921,043,960

Brief History / Introduction:

Byco Petroleum Pakistan Limited (BPPL), previously known as Bosicor

Pakistan Limited (BPL) formed in 1995 started off as a Business to Business
(B2B) market producing petrochemicals, oil refining and supplying oil to PSO.
BPPL was incorporated in Pakistan as a public limited company on January
09, 1995 and was granted the certificate of commencement of business on
March 13, 1995. The shares of the company are listed on the Karachi, Lahore
and Islamabad Stock Exchanges. The Company is engaged in the business of
refining crude oil into various saleable components including High Speed
Diesel (HSD), Liquefied Petroleum Gas (LPG), Motor Spirits (MS), High Octane
Blending Components (HOBC), Kerosene (K-Oil), Jet Fuels, Furnace Oil and
Naphtha. Refining capacity was enhanced by 5,000 bbl/day during
turnaround in June 2010, hence making the total refining capacity to 1.738
(million metric tons per annum) or 35,000 (barrels per day).

Then about three years ago a major shift occurred. We all witnessed some
heavy campaigning and promotion done by Byco. This change came about
with a change in strategic goals. The goal was now to make Byco one of the
top OMCs in Pakistan. Earlier oil marketing was a very small part of the
business and now the major focus was on it. The management identified that
this change was important as it already had a surplus production and a
refining capacity of 30000 barrels The implementation of goals by all
departments is primarily more evident with the hard work of the marketing

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department. The value proposition of Byco became differentiation. The
change came about by first changing its name from Bosicor to Byco. The
head of brand and advertising explained that this was important to give a
more modern and unique impression. Byco was also an easier word in terms
of pronunciation. The reason behind aggressive campaigning was o
familiarize customers with the name and establish Byco as an OMC implying
the Production concept Byco used. They are focusing to develop a network
more accessible and visible to consumers. By focusing on differentiation,
Byco aims to transform the look of the service stations, introduce multi-
product dispensers, convenience stores and specialized lubricant brands.

What Byco is doing is that its changing from a B2B market to a B2C market
(Business to Consumer) by opening up its own service station and competing
with other OMCs.it has become more consumer centric now. It now has 138
service stations across Pakistan. The increase in service stations improves
the competitive position of Byco from being a Nicher to a Follower. It has
gone from being the 10th largest to the 6th largest. Its strategic goal is to
move up to the 3rd or 4th place by 2011, improving their position further by
becoming a follower. Immense competition is seen from PSO- the leader,
Shell, Chevron and Total. However, drawing consumers towards itself is not
seen as a major problem by Byco as brand loyalty is not a problem in the
case of petroleum as petroleum is a generic product requiring Habitual
Buying Behaviour. Once people would use it they would realize its the same
as other OMCs. Therefore, Byco is confident of achieving success with a
change in strategy to expand and differentiate.

Byco and its associated entities have interests in the oil refining, petroleum
marketing and chemical manufacturing in Pakistan:

Byco Petroleum Pakistan

1. Oil Refining & Petroleum Marketing
Limited (BPPL)
Byco Oil Pakistan Limited Oil Refining & Chemical
2.
(BOPL) Manufacturing

Oil Refinery is located at District Hub, Lasbela, Baluchistan. The Company

started its commercial production from July 1, 2004 and ramped up the
capacity to 30,000 bpd from February 2008 after debottlenecking of the
whole plant and its corporate office at Harbour Front, Clifton, Karachi.

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 Mission Statement
Our Mission is to proactively invest to develop infrastructure in order to
become a single source chain for meeting the Economy’s Chemicals, Energy,
Petroleum and Petrochemical requirements, thereby provide the best
possible returns to our stakeholders

Vision Statement

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 Our Vision is to develop our Company on ethical and professional basis in
order to steadily grow and become a valued contributor to the Economy and
a respected Corporate Entity.

Environment Health Safety & Security Policy

Byco remains on ethical and professional basis and is a responsible
corporate entity with respect to Environment Health & Safety.

Management Belief
Management Leadership, Participation and Accountability: Our leaders, from
top management to frontline supervisors, are responsible and accountable
for Environment, Health and Safety, its compliance and for managing such
risks of their areas. Their active participation includes collaborating across
organizational lines to integrate risk management practices into our routine
business processes.

Management Role

• Worker Protection and Wellbeing: To enable all employees to accept

individual responsibility for EHS, implement best practices, and work in
partnership to create an ethos of continuous improvement by providing
appropriate training & information.
• Contractor Safety: To work with and demand compliance from our
contractors for adhering to our EHS Policies and Procedures, thereby

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 ensuring high standards for protection of our environment, workers
and assets.

Employee Responsibilities

• Environmental Protection: Adopt best in class practices that protect the

environment, including reducing the quantity of emissions, developing
opportunities for recycling, pollution prevention, and efficient use
recyclable materials.
• Emergency Vigilance: Anticipate emergency situations and be ready to
respond appropriately to eliminate harm to the environment, people
and property.
• Continual Improvement: Strive to constantly improve our EHS
performance and management processes by measures, including the
following:
o Benchmarking industry best practices to identify improvement
opportunities; and
o Conducting reviews and auditing our EHS management system
and operations to monitor progress and compliance.
o Incorporating newer generation technology and advance
management systems.
o Learning from events - accidents, close calls and identified
substandard conditions.

Human Resource Development

Our Staff are the most valuable asset.

In order to hire competent & quality resources, a pre-employment IQ test is

mandatory which screens participants after assessing them on three
dimensions: Intelligence, Comprehension & Analytical abilities.

The Company pays special attention on the training and development of its
Employees. All new employees go through a detailed Orientation Training
Program. Existing Employees are provided refresher training courses on a
regular basis. Theoretical and practical training to fresh engineering
graduates is also imparted through Graduate Trainee Engineer program. This
familiarizes graduates to the industry practices.

The Company focuses on environment, health, safety and security while

striving to achieve operational excellence to energize economic growth.
Business Communication Page 9
Products

FURNACE OIL

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 • Furnace Oil ("FO") is a major source of fuel for power and industrial
sectors with power sector accounting for 72% of total consumption in
FY 05.

• Cement (5%) and other industries (23%) account for the remaining
28%. FO is a deficit product and about 31% of domestic consumption
was met through imports during FY 05.

• FO was deregulated in July 2000 leading to stiff competition amount

MOCs and oil traders actively engaged in the marketing and import of
FO.

• FO sales experienced a decline of 15% in FY 03 and further 44% in FY

04 mainly due to increase in availability of gas and water for the power
sector and conversion of cement plants to coal and gas fired systems.

• FO sales bounced back in FY 05 with a growth rate of 23% due to

shortage of water and disruption of gas supplies

Demand Production

Sectoral Consumption of FO
(000 Tons)

7000

6000

5000
6113
4000
5398

3000

3319
2000
2493
1000 1544 1272
1265 1230

0
FY 04
FY 02 FY 03 FY 05

Others Power Sector

HIGH SPEED DIESEL:

• High Speed Diesel (“HSD") in terms of volume is the most consumed

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 Diesel SK/J-I Gasoline Furnace Oil LPG

Oil Refining Business

At present, the Company receives limited quantity of local crude oil and
blends it with imported crude oil while retaining product quality and yields.
This has not only reduced the Refinery’s exposure on foreign currency rate
fluctuations but also reduces the demand for foreign exchange. The
Company is seeking to increase its allocation of local crude oil and
condensate. Good Maintenance and Operations ensured 100% availability of
the crude oil processing capacity at the Oil Refining Business (ORB). Other
improvements included lower fuel and water usage, increased LPG recovery
and further enhancement in the recovery of High Speed Diesel. The
Company is completing studies to increase the processing capacity above
35,000 bpd, to implement as the trading scenario changes for the better.

Petroleum Marketing Business

Byco Petroleum Pakistan Limited, the only refinery in Pakistan which has
acquired marketing license from the start of its operation. During the year
2007, the Company has launched its fuel marketing activities managed by
the Petroleum Marketing Business (PMB) formerly known as Oil Marketing
Unit. The business has been re-launched with a new vision and has
developed progressively during this period and is now growing aggressively,

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so far approximately (till date 15th December, 2010) 180 retail outlets have
been set-up, primarily focusing on retail segment and PMB is now expanding
the canvas by targeting to become a dominant player in the industrial,
international and retail segments. Going forward, PMB will be increasing its
product portfolio by adding LPG and lubricants as well.

Plans are also underway to make LPG available at the Filling Stations, as well
as to market LPG cylinders with the Company’s Brand through a distribution
network and launch branded lubricants for the automotive and industrial
sectors which will be available at the Filling Stations as well as in the
commercial markets.

PMB is focusing and planning to cater to the international opportunities

available in the region where it can provide petroleum and lubricant
products.

With ever-increasing competition in the market today, availability of product

is a major challenge for all Oil Marketing Companies (OMCs). Byco has a
distinctive advantage through its Refinery, to meet the product requirement
in the south of the Country.

However, while we develop infrastructure that will assist in the delivery of

product to the consumers at their doorstep, to cater to the fast growing
requirements of the business in other parts of the Country, arrangements are
being put in place to acquire products through other sources, like the White
Oil Pipeline, as well as purchases from other refineries and oil marketing
companies.

Conclusion of the Visit dated 11 December, 2010.

A Brief Overview of the Report

BYCO commenced the sale of petroleum products with the establishment of its first
retail outlet in July 2007 and reached 100 retail outlets in the last fiscal year
achieving the milestone in less than 3 years. Now with 180 retail outlets in our
portfolio, it expect to continue adding Outlets, which will enable to consolidate
market position and have representation within major geographical areas of the
country spread from Karachi to Kashmir.

BYCO is the only OMC to be growing at a staggering rate of 208% as compared to

other competitors; with a growth of 390% in retail sales and turnover growing by

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303% in the last fiscal year. Though in its infancy stages, the Marketing Business
already has attained 5th ranking amongst the industry players in a very short span
of time. With a cumulative market share of 2.1% in liquid fuels, the Petroleum
Marketing has grown exponentially in terms of market share as compared to
previous fiscal year. Following a multipronged strategy entailing rapid expansion in
our key segments of Retail, Consumer and International Sales, your Company is
making its mark in the industry. Apart from retail sales your Company's ever
increasing and diversified consumer portfolio is also on a fast track growth.
Although it has not been long, the marketing business has developed a strong
customer base and is expanding every day by acquiring major customers in
bunkering and marine business, industrial consumer business, captive power
projects, cement, and consumer goods companies. Furthermore we have carved a
niche for ourself in the international market by supplying specialized diesel (Ultra
Winterized Diesel) and fuel oil (RMG 380) products in growing foreign markets and
bunkering businesses. The Company has had the privilege to be the first to
introduce these products in Pakistan. Supply chain mechanism has been
strengthened with availability of storages at Keamari, Machike, Ghatti, Chaklala,
Shikarpur, Tarujabba and Mehmoodkot in order to meet marketing requirements at
various geographical locations. Moreover with entry into the White Oil Pipeline the
Company is supplying the refinery's product across the length and breadth of the
country more efficiently. For the first time in the oil industry's history in the country,
our petroleum marketing business has entered into an agreement for managing
inventory for fuel oil at the customer's doorstep. Moreover your Company has
recently accomplished the milestone of importing its first consignment of Diesel and
Furnace Oil during the last financial year.

BYCO also endeavors to be a major part of the industry and is involved in molding
its business activities to the changing requirements of its customers and providing
them with the best possible experience. An essential step in this regard was the
launch of the new

An unparalleled brand architecture exercise by international brand consultants has

created a position for Byco over and above its competition. This is the first time
such an exercise has been undertaken in the country's oil Industry. Through this
exercise we aim to strengthen our corporate image by infusing brandstrategy
elements and aspects such as positioning and brand persona that allow us to not
only compete locally but also at a global level with international giants. As a result
of the new identity, our existing stations will be transformed into state-of-the-art,
modern retail outlets across Pakistan providing customers with Branchingout
Growth 19 Improvement through the addition of quality human resource.

Social Corporate Responsibility

• Timely and generous response to Flood victims of Baluchistan in particular

and to other parts of the Country in general.

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 • Evacuation of local residents during Cyclone PHET,which hit parts of
Baluchistan.

• Pirkhus Road repair to facilitate daily commutation of residents of Moza Kund

and adjoining areas.

• Industrial Visits of upcoming graduates from well reputed Universities.

• Supply of Drinking Water to Local Residents.

• Medical Relief Camps.

• Arrangements of Sports and recreational activities for local residents.

• Environment, Health, Safety and Security (EHSS);

• During the period under review, significant achievements were made by your
Company in EHHS. A few major achievements have been listed below:

• 3 million safe man-hours achieved without a Lost Time Injury (LTI).

• Total Recordable Incident Rate TRIR of 0.347 achieved against 0.8 target, the
achieved TRIR is a 113.25% improvement compared to the set target of 0.8.

• The Refinery achieved the milestone of Integrated Management System (IMS)

Certification. IMS includes certification of ISO 9001-2008, ISO 14001- 2004
and OHSAS 18001-2007 standards.

• 280 Standard Operating Procedures prepared and implemented through

Integrated Management System.

• An outsourced training program in five areas include Incident Reporting, IMS

Awareness, OHS Risk Assessment, EMS Risk Assessment and Internal
Auditing arranged by EHS Department for Management and staff through
Integrated Management system.

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