Professional Documents
Culture Documents
Bharat Petroleum
Corporation Limited
Group 7
Aroop Sanyal 1501074
Harmeet Singh
1501080
Prem Prakash 1501092
Sushant Anand 1501110
Vigneshwar P 1501114
Introduction
Background
24th January 1976, the Burmah Shell Group of Companies was taken over by the
Government of India to form Bharat Refineries Limited. On 1st August 1977, it was
renamed Bharat Petroleum Corporation Limited
BPCL is an integrated refining and marketing company with a refining capacity of 30.5
million tonnes
It is a Fortune 500 Company occupying the 289th position in the listing of fortune 500
companies, with and equity base of Rs.300 crores
Is a part of the prestigious Navratna companies in the Indian PSU sector and the second
largest player in the Oil refinery domain after IOCL
Evolution
The capacity was first expanded from 2.5 million tonnes per annum (MMTPA) to 3.3 MMTPA in
September 1973
The production of liquefied petroleum gas (LPG) and aviation Turbine Fuel (ATF) commenced
after the expansion
BPCL in the early 2000s, through its wholly-owned subsidiary, Bharat Petro Resources Ltd
(BPRL), has forayed into upstream exploration and production
Shareholding
As of June
2014
Cost
(Rs.
Billion
)
Completio
n date
%compl
etion
54.9
Mutual Funds/UTI
8.4
Financial Institutions/Banks/Insurance
companies
6.6
165
May - 16
47.4
14.2
Mar 15
77.6
12.2
Bodies Corporate
5.0
Public
12.8
2.8
Mar 15
74.5
Markets
Locations
Functions
Auto Fuels
Retail auto
fuels
MARKETS
Refining
Industrial Fuels
Industrial &
Commercial
Consumers
Northern India
Supply and
Distribution
LPG
Eastern India
Marketing
Engineering &
Projects
Lubricants
Lubricants
Western India
Finance
LPG
Aviation
Southern India
Information Systems
Convenience Goods
Human Resource
Products:
Liquefied Petroleum Gas: Environmental friendly fuel used widely in households for
cooking. LPG is meant for households and marketed my PSU Oil companies in cylinder of 14.2
kg and 5 kg.
Service:
Change in customer detail and safe custody of the cylinder to the customer
Auto LPG: LPG is also identified as an auto fuel in 2002 after amendment of relevant acts by
the Central and State governments. It serves as an economical fuel variant and less
pollutant
Retails auto fuel: The most common point of contact of customers with the Oil Industry is
the Petrol Pump. Petrol Pumps are referred to as Retail Outlets (ROs)
Lubricants: Lubricants essentially are liquids, semi liquids or solid substance to reduce
friction among the mover parts. Typically lubricants comprise of 90-95% of base oils and
balance performance enhancement additives based on the application
Organizational Environment
Specific Environment:
Customers: End Users , Aviation companies.
Distributors: Petrol bunks, Gas Stations.
Suppliers: Other Refining Companies.
Competitors: IOCL,HPCL,ONGC,CPCL.
Government: petroleum product administration through Oil Co-ordination
Committee(OCC)
General Environment:
Technological Forces: Implemented ERP - SAP . Need to look into its inventory
management and easy operations in a large number of areas. Increases skilled
manpower.
Economic Forces: Subsidies and importing the fuel from Middle East(OPEC).
Political Forces:
International Forces: International trading of oil. Impact of the international commodity
Environmental Dynamism
Enhance the appetite: The degree to which forces in the specific and general
environments change over time
Stable Environment
Unstable Environment
Crude Oil
Purchase & Storage
Refining
Transportati
on
Retailing/
Consumers
E-technology
Transportation
Live GPS tracking for vehicles
SmartFleet services
Reverse Logistics
Communications
Retailing/Consumer services
ValueFirst Mobile platform for dealers
Transparency portal For customers
In&Out stores
Innovations
Oil Explorations across the globe
In-house Research & Development department
Bio-fuels
Developed in-house
Numerous advantage over Acetylene Cutting (CA) which was used till then
Employee values
Employee benefits
Collaborative spirit
Standardised incentives
based on rank ( prescribed by
central government and
petroleum ministry of India)
Medical coverage
Brand and
corporate culture
Trust
People
Collaboration
Innovation
Caring
Reliable
Project Entrans
SAP platform for better value added service and ease of employee
incentives
Project Caliber
360 degree feedback system for employee grievances
Improved leadership initiatives among employees with learning inputs
Project Cusecs
Customer focused initiatives ( Eg. Pure for sure)
Organizational Structure
CMD
Director
Refineries
I/C Refinery
I/C Refinery
Company
Secretary
Corporate
Affairs
Audit
Coordination
Director
Personnel
Functional Structure:
Director
Marketing
Personnel &
Admin
Aviation
H.R.
Corporate S&D
Director Finance
Corporate LPG
EDP
E & P Marketing
Corporate
Planning
JV Refineries
Corporate
Communication
Corporate
Finance
Corporate Sales
Corporate
Lubes
Special Projects
Regional GMs
Support departments:
corporate affairs, audit, coordination.
Director Refinery: refinery,
corporate planning, joint
venture refineries and special
projects.
Director Finance: Corporate
finance and EDP.
Director Marketing: retail,
industry, lubricants, LPG and
aviation segments.
Director Personnel: H.R. and
Admin.
Regional Structure
Director
Marketing
General
Manager
East
General
Manager
West
Divisional
Manager
PTN
Divisional
Manager
BBSR
Divisional
Manager
KCL
Manager Sales
Manager
Engineering
Manager
Operations
Sales Officer
LPG
Area Sales
Officer
BBSR
Area Sales
Officer
SBP
Area Sales
Officer
BAM
Operations
Officers
General
Manager
North
Divisional
Manager
RNC
General
Manager
South
4 regions , 22
divisions
Divisional Manager :
sales, operations,
engineering.
Different customer
segments like retail,
L.P.G, industrial.
What if a customer
order Lubes?
Employee
Strategy
BPCL fosters effective value-based HR processes for development of people
and their organisational capabilities with a view to provide them with a
competitive edge and aim to realise their personal vision in tandem with the
organization`s vision. The thrust areas include:
Performance Management- Links organization `s goals with individual
performance goals
Competency Modelling- Recognize competencies and capabilities of
employees to bridge gaps through appropriate training and developmental
programmes
Multi-skilling- Encourage employees to take up initiatives in new
technological and managerial areas like Enhanced Fuel Proposition, Add-on
Stores, One Stop Truck Shops, Customer relationship management solutions,
Tracking Customer Receivables , Monitoring Cretit management, Inventory
Management etc.
Expansion Strategy
Upstream operations: Exploration and production business
Midstream operations: Transportation
Downstream operations: refining, marketing and petrochemicals
Organization
Turnover - 2014
(cr)
CAGR Revenue
(last 5 year)
IOCL
4,73,210
15.9%
-2%
BPCL
2,60,060
16.39%
19.09%
HPCL
2,23,271
17.34%
-6%
BPCL wanted to double volumes and increase profitability fourfold over a five-year period
which is unrealistic in India.
They have ventured into Exploration and Production, to attain margins as high as $30-40 a
barrel
This led to the creation of Bharat Petro Resources Ltd (BPRL)
Acquired 50% stake in Brazil's Encana Brazil Petroleo along with Videocon
Increase its refining capacity at its Kochi refinery from the current 9.5 MTPA to 15.5 MTPA by
2016-17.
Various exploration activities through its wholly owned subsidiary Bharat Petro Resources
Limited in in Australia, Indonesia, Mozambique, UK, Brazil etc.
BPCL in October 2000 acquired 61.65% stake in 3 million metric Tonne Numaligarh Refinery.
Expansion of Numaligarh Refinery Limitedfrom 3 Million Metric Tonne Per Annum (MMTPA)
to 9 MMTPA
Commissioned in May 2011, Bina Refinery came up with a Joint Venture with Oman Oil
Company with 50% stake of each.
Central UP Gas- Joint Venture with GAIL for implementation of city gas projects in Delhi
and Kanpur
Formed Joint Venture with GAIL to market CNG in Karnataka and Kerala.
Joint Venture with GAIL in co-operation with transmission and distribution of natural gas ,
LPG pipelines and city gas.
Problems with the current structure in accomplishing the above goals Old structure was designed majorly for the Mumbai refinery. This is no longer a viable option
with the scale BPCL is currently operation and aims to operate in future as a result of rapid
expansion.
Active expansion in Retail segment required good reach to customers to understand their
needs and reduced hierarchy to communicate the same to higher management so that policy
formulation could be accelerated.
1. The director marketing, regional manager, divisional manager etc handles different classes of
customers, spread over various segments hence in the existing structure deep focus on retail
customers could not be achieved.
2. Marketing activities spread to different functions, levels of hierarchy and involve many
individuals. Thus there is a need to reduce the same.
3. There is a need to improve the overall customer out reach.
Proposed Organization
Structure
1.
.
.
.
2.
.
.
Hybrid structure :
Divisional structure and
Marketing function directly
reporting to the CMD.
Divisional structureCaters rapid expansion by
saving efforts on
integration aspect.
Better control in lieu of
rapid expansion.
Better accountability of
Profits achieved which is
required in environment of
increasing tie-ups and joint
ventures.
Direct reporting of
Marketing to CMD
Customer needs are well
communicated to the
higher management.
Strategy of the organization
is well communicated to
lower staff and sales force.
iation
Focus o
fe
manag fficiency to
e lower
costs
Examp
le: Ada
pt
techno
logy lik ing
e SAP
Focus o
n E&P i
n
foreign
shores
future
crude s for
upply
Can he
lp BPCL
g
ahead
of IOCL row to
in futur
e
Cost Le
adershi
p
Organizational Structures: A
Comparison
Old Structure:
Functional
Structure
More of
Horizontal
Integration
Standardized
New Structure:
More Hybrid
Structure
Vertical Integration
Mutual Adjustment
Centralization vs
Decentralization
Task force formed during shutdown procedure (complete shutdown and restart of all
plants and operations-done once in 2 years)- Headed by the director of projects
Follows a highly centralized model during this period, Consisting of deputy general
managers of all major core departments along with select personnel downwards in the
structure, headed by the director of operations
The Gen managers takes all operations with a wide span of control
All members, even bottom level workers are under the direct authority of Gen.
managers, with a responsibility to report all events directly. Managers are required to
make decisions based on orders of general managers only
Day to day benchmark is set directly by the general managers up to the bottom level
workers
This type of task force model is for highly critical operations, high risk and safety
centred operations only
Conclusion:
References:
Thank You!