1.

1 Introduction
Bharat Petroleum Corporation Limited (BPCL) is an oil and gas company. It carries out the
upstream and downstream business. The company's activities comprise exploration, refining,
trading and marketing of petroleum products. BPCL's petroleum products include gasoline,
diesel and kerosene, liquefied petroleum gas (LPG), automotive and industrial lubricants, fuel
oils, and aviation fuels. It serves industrial, aviation and household customers. The company also
carries out the exploration and production of crude oil and gas. The company's refineries include
Mumbai Refinery, Kochi Refinery, Numaligarh Refinery and Bina Refinery. It classified
business operations into two segments, namely, Downstream Petroleum, and Exploration and
Production of Hydrocarbons. BPCL is headquartered in Mumbai, India. Bharat Petroleum
Corporation Limited (BPCL) is one of India's largest PSU companies, with Global Fortune 500
rank of 287 (2008). Its corporate office is located at Ballard Estate, Mumbai. As the name
suggests, its interests are in petroleum sector. It is involved in the refining and retailing of
petroleum

products.

Bharat Petroleum is considered to be a pioneer in Indian petroleum industry with various pathbreaking initiatives such as Pure for Sure campaign, Petro card, Fleet card etc. BPCL's growth
post-nationalization (in 1976) has been phenomenal. One of the single digit Indian
representatives in the Fortune 500 & Forbes 2000 listings, BPCL is often referred to as an MNC
in PSU garb. It is considered a pioneer in marketing initiatives, and employs Best in Class
practices.
Bharat Petroleum Corporation Limited (BPCL) specializes in refining, processing, and
distributing petroleum products. It offers petrol, diesel, aviation fuel, liquefied petroleum gas
(LPG) and lubricants. The company primarily operates in India, where it is headquartered in
Mumbai and employs about 13, 968 people.

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1.2 History.
The 1860s saw vast industrial development. A lot of petroleum refineries came up. An important
player in the South Asian market then was the Burmah Oil Company Ltd. Though incorporated
in Scotland in 1886, the company grew out of the enterprises of the Rangoon Oil Company,
which had been formed in 1871 to refine crude oil produced from primitive hand dug wells in
Upper Burma. The search for oil in India began in 1886, when Mr. Goodenough of McKillop
Stewart Company drilled a well near Jaypore in upper Assam and struck oil. In 1889, the Assam
Railway and Trading Company (ARTC) struck oil at Digboi marking the beginning of oil
production in India.
While discoveries were made and industries expanded, John D Rockefeller together with his
business associates acquired control of numerous refineries and pipelines to later form the giant
Standard Oil Trust. The largest rivals of Standard Oil - RoyalDutch, Shell, Rothschilds came
together to form a single organization: Asiatic Petroleum Company to market petroleum products
in South Asia.

FROM BURMA SHELL TO BHARAT PETROLEUM.

Burmah Shell Refineries was incorporated as a company in 1952, and established a refinery in
Mahul .On 24 January 1976, the Burmah Shell Group of Companies was taken over by the
Government of India to form Bharat Refineries Limited. On 1 August 1977, it was renamed
Bharat Petroleum Corporation Limited. It was also the first refinery to process newly found
indigenous crude Bombay High, in the country.
BHARAT PETROLEUM then and after
The company installed microprocessor based digital integrated distributed control systems in
catalytic reformers and introduced a new solvent unit to replace the pneumatic control system in
1993.The company also installed an advanced control system for its catalytic control unit. The
company then incorporated a joint venture company, Bharat Oman Refineries, in 1994.There
after BPCL signed a memorandum of understanding (MOU) with Bank of Baroda in 1995 to
launch the first co-branded credit card in the country. In 1998, BPCL entered into a joint venture

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with Petronet (India) for the construction of a 308 km pipeline from Kochi in Kerala to Karur in
Tamil Nadu.

1.3 Abstract
Data monitors Bharat Petroleum Corporation Limited - SWOT Analysis company profile is the
essential source for top-level company data and information. Bharat Petroleum Corporation
Limited - SWOT Analysis examines the companys key business structure and operations,
history and products, and provides summary analysis of its key revenue lines and strategy.
Bharat Petroleum Corporation (BPCL) specializes in refining, processing, and distributing
petroleum products, and exploration and production of hydrocarbons. It offers petrol, diesel,
kerosene, aviation fuel, liquefied petroleum gas (LPG), compressed natural gas (CNG), and
lubricants. The company primarily operates in India, where it is headquartered in Mumbai, and
employs about 13,900 people. The company recorded revenues of INR1, 337,491 million
($28,087.3 million) during the financial year ended March 2010 (FY2010), a decrease of 9.2%
compared to FY2009. The operating profit of the company was INR28, 498.5 million ($598.5
million) during FY2010, compared to an operating profit of INR11, 430.7 million ($240 million)
in FY2009. The net profit was INR16, 323.6 million ($342.8 million) in FY2010, compared to a
net profit of INR6, 337.6 million ($133.1 million) in FY2009.
An overview of the four factors (Strengths, Weaknesses, Opportunities and Threats) is given
below1. Strengths - Strengths are the qualities that enable us to accomplish the organizations
mission. These are the basis on which continued success can be made and
continued/sustained. Strengths can be either tangible or intangible. These are what you
are well-versed in or what you have expertise in, the traits and qualities your employees
possess (individually and as a team) and the distinct features that give your organization
its consistency. Strengths are the beneficial aspects of the organization or the capabilities
of an organization, which includes human competencies, process capabilities, financial
resources, products and services, customer goodwill and brand loyalty. Examples of
organizational strengths are huge financial resources, broad product line, no debt,
committed employees, etc.

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2. Weaknesses - Weaknesses are the qualities that prevent us from accomplishing our
mission and achieving our full potential. These weaknesses deteriorate influences on the
organizational success and growth. Weaknesses are the factors which do not meet the
standards we feel they should meet. Weaknesses in an organization may be depreciating
machinery, insufficient research and development facilities, narrow product range, poor
decision-making, etc. Weaknesses are controllable. They must be minimized and
eliminated. For instance - to overcome obsolete machinery, new machinery can be
purchased. Other examples of organizational weaknesses are huge debts, high employee
turnover, complex decision making process, narrow product range, large wastage of raw
materials, etc.
3. Opportunities - Opportunities are presented by the environment within which our
organization operates. These arise when an organization can take benefit of conditions in
its environment to plan and execute strategies that enable it to become more profitable.
Organizations can gain competitive advantage by making use of
opportunities.Organization should be careful and recognize the opportunities and grasp
them whenever they arise. Selecting the targets that will best serve the clients while
getting desired results is a difficult task. Opportunities may arise from market,
competition, industry/government and technology. Increasing demand for
telecommunications accompanied by deregulation is a great opportunity for new firms to
enter telecom sector and compete with existing firms for revenue.
4. Threats - Threats arise when conditions in external environment jeopardize the reliability
and profitability of the organizations business. They compound the vulnerability when
they relate to the weaknesses. Threats are uncontrollable. When a threat comes, the
stability and survival can be at stake. Examples of threats are - unrest among employees;
ever changing technology; increasing competition leading to excess capacity, price wars
and reducing

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1.4 Scope of the Study

Provides all the crucial information on Bharat Petroleum Corporation Limited required
for business and competitor intelligence needs

Contains a study of the major internal and external factors affecting Bharat Petroleum
Corporation Limited in the form of a SWOT analysis as well as a breakdown and examination of
leading product revenue streams of Bharat Petroleum Corporation Limited

Data is supplemented with details on Bharat Petroleum Corporation Limited history, key
executives, business description, locations and subsidiaries as well as a list of products and
services and the latest available statement from Bharat Petroleum Corporation Limited

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1.5 Objective
The results of the study would be very useful to the study SWOT of BPCL to make its vision, to
be a world-class energy company, well respected and consistently profitable with a dominant
presence in South
India, as it helps to understand its strengths and weaknesses and to identify its threats and
opportunities. It will be helpful to the study unit as it suggests ways to reduce the cost of
production and thereby enables it to increase the production volume and revenue.
The findings of the study would also be useful to the Government as the efficiency in the
production and distribution of petroleum products decreases the cost of production and increases
the productivity, which in turn reduces the prices of such products. It would also help the State
and Central Government in framing an appropriate Oil Policy and fixing the prices of petroleum
products.
The general public would also be benefited as the study paves the way for self- sufficiency in oil
production and reduction in the cost of oil. It would also open up avenues to the oil companies to
improve their efficiency in terms of their organizational climate, environmental conditions and
social responsibility thereby ensuring regular supply of products of high standards at an
affordable price.

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2.1 Literature Review

The SWOT analysis is a strategic analysis that deals with an overview of the internal and
external environment. The environmental factors that are usually known as internal consist
of Strengths and Weaknesses. The factors which can be classified as external to the firm
are Opportunities and Threats. The SWOT analysis was developed in the 1960s and credit for
the creation is given to Albert Humphrey. The SWOT analysis can be used by companies to
identify the key internal and external factors that are important in achieving their objective.
SWOT analysis can be used by any business in any decision making situation, not just by profitseeking companies. Ideally the SWOT analysis is used in academia, but can be very useful in
identifying areas for development.
WHEN TO USE SWOT?
A SWOT analysis can offer helpful perspectives at any stage of an effort. You might use it
to:

Explore possibilities for new efforts or solutions to problems.

Make decisions about the best path for your initiative. Identifying your opportunities for
success in context of threats to success can clarify directions and choices.

Determine where change is possible. If you are at a juncture or turning point, an

inventory of your strengths and weaknesses can reveal priorities as well as possibilities.

Adjust and refine plans mid-course. A new opportunity might open wider avenues, while
a new threat could close a path that once existed.

SWOT also offers a simple way of communicating about your initiative or program and an
excellent way to organize information you've gathered from studies or surveys.
WHAT ARE THE ELEMENTS OF A SWOT ANALYSIS?
A SWOT analysis focuses on Strengths, Weaknesses, Opportunities, and Threats.

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Remember that the purpose of performing a SWOT is to reveal positive forces that work together
and potential problems that need to be recognized and possibly addressed.
INTERNAL FACTORS: STRENGTHS AND WEAKNESSES (S, W)
Internal factors include resources and experiences. General areas to consider:

Human resources - staff, volunteers, board members, target population

Physical resources - location, building, equipment

Financial - grants, funding agencies, other sources of income

Activities and processes - programs, systems one employees

Past experiences - building blocks for learning and success, ones reputation in the
community

Don't be too modest when listing strengths. If you're having difficulty naming them, start by
simply listing your characteristics (e.g., small, connected to the neighborhood). Some of these
will probably be strengths.
Although the strengths and weakness of an organization are your internal qualities, don't
overlook the perspective of people outside your group. Identify strengths and weaknesses from
both your own point of view and that of others, including those you serve or deal with. Do others
see problems--or assets--that you don't?
How do you get information about how outsiders perceive your strengths and weaknesses? You
may know already if you've listened to those you serve. If not, this might be the time to gather
that type of information. See related sections for ideas on conducting focus groups, user surveys,
and listening sessions.
EXTERNAL FACTORS: OPPORTUNITIES AND THREATS (O, T)
Cast a wide net for the external part of the assessment. No organization, group, program, or
neighborhood is immune to outside events and forces. Consider your connectedness, for better
and worse, as you compile this part of your SWOT list.

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Forces and facts that your group does not control include:

Future trends in the field or the culture

The economy - local, national, or international

Funding sources - foundations, donors, legislatures

Demographics - changes in the age, race, gender, culture of those you serve or in your
area

The physical environment (Is your building in a growing part of town? Is the bus
company cutting routes?)

Legislation (Do new federal requirements make your job harder...or easier?)

Local, national or international events

WHO DEVELOPS THE SWOT?

The most common users of a SWOT analysis are team members and project managers who are
responsible for decision-making and strategic planning.
An individual or small group can develop a SWOT analysis, but it will be more effective if you
take advantage of many stakeholders. Each person or group offers a different perspective on the
strengths and weaknesses of your program and has different experiences of both.

Likewise, one staff member, or volunteer or stakeholder may have information about an
opportunity or threat that is essential to understanding your position and determining your future.

WHEN AND WHERE DO YOU DEVELOP A SWOT ANALYSIS?

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A SWOT analysis is often created during a retreat or planning session that allows several hours
for brainstorming and analysis. The best results come when the process is collaborative and
inclusive.
When creating the analysis, people are asked to pool their individual and shared knowledge and
experience. The more relaxed, friendly and constructive the setting, the more truthful,
comprehensive, insightful, and useful your analysis will be.
HOW DO YOU DEVELOP A SWOT ANALYSIS?

Steps for conducting a SWOT analysis:

Designate a leader or group facilitator who has good listening and group process skills,
and who can keep things moving and on track.

Designate a recorder to back up the leader if your group is large. Use newsprint on a flip
chart or a large board to record the analysis and discussion points. You can record later in
a more polished fashion to share with stakeholders and to update.

Introduce the SWOT method and its purpose in your organization. This can be as simple
as asking, "Where are we, where can we go?" If you have time, you could run through a
quick example based on a shared experience or well-known public issue.

Depending on the nature of your group and the time available, let all participants
introduce themselves. Then divide your stakeholders into smaller groups. If your retreat
or meeting draws several groups of stakeholders together, make sure you mix the small
groups to get a range of perspectives, and give them a chance to introduce themselves.
o The size of these depends on the size of your entire group breakout groups can
range from three to ten. If the size gets much larger, some members may not
participate.

Have each group designate a recorder, and provide each with newsprint or dry -erase
board. Direct them to create a SWOT analysis in the format you choose-a chart, columns,
a matrix, or even a page for each quality.
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o Give the groups 20-30 minutes to brainstorm and fill out their own strengths,
weakness, opportunities and threats chart for your program, initiative or effort.
Encourage them not to rule out any ideas at this stage, or the next.
o Remind groups that the way to have a good idea is to have lots of ideas.
Refinement can come later. In this way, the SWOT analysis also supports valuable
discussion within your group or organization as you honestly assess.
o It helps to generate lots of comments about your organization and your program,
and even to put them in multiple categories if that provokes thought.
o Once a list has been generated, it helps to refine it to the best 10 or fewer points
so that the analysis can be truly helpful.

Reconvene the group at the agreed-upon time to share results. Gather information from
the groups, recording on the flip-chart or board. Collect and organize the differing groups'
ideas and perceptions.
o Proceed in S-W-O-T order, recording strengths first, weaknesses second, etc.
o Or you can begin by calling for the top priorities in each category -the strongest
strength, most dangerous weakness, biggest opportunity, worst threat--and
continue to work across each category.
o

Ask one group at a time to report ("Group A, what do you see as strengths?") You
can vary which group begins the report so a certain group isn't always left
"bringing up the end" and repeating points made by others. ("Group B, let's start
with you for weaknesses.")

o Or, you can open the floor to all groups ("What strengths have you noted?") for
each category until all have contributed what they think is needed.

Discuss and record the results. Depending on your time frame and purpose:
o Come to some consensus about the most important items in each category
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o Relate the analysis to your vision, mission, and goals

o Translate the analysis to action plans and strategies

If appropriate, prepare a written summary of the SWOT analysis to share

with participants for continued use in planning and implementation.

3.1 Limitations
SWOT Analysis is not free from its limitations. It may cause organizations to view circumstances
as very simple because of which the organizations might overlook certain key strategic contact
which may occur. Moreover, categorizing aspects as strengths, weaknesses, opportunities and
threats might be very subjective as there is great degree of uncertainty in market. SWOT
Analysis does stress upon the significance of these four aspects, but it does not tell how an
organization can identify these aspects for itself.
There are certain limitations of SWOT Analysis which are not in control of management. These
includea. Price increase;
b. Inputs/raw materials;
c. Government legislation;
d. Economic environment;
e. Searching a new market for the product which is not having overseas market due to
import restrictions; etc.
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Internal limitations may includea. Insufficient research and development facilities;

b. Faulty products due to poor quality control;
c. Poor industrial relations;
d. Lack of skilled and efficient labour; etc

3.2 Advantages
SWOT Analysis is instrumental in strategy formulation and selection. It is a strong tool, but it
involves a great subjective element. It is best when used as a guide, and not as a prescription.
Successful businesses build on their strengths, correct their weakness and protect against internal
weaknesses and external threats. They also keep a watch on their overall business environment
and recognize and exploit new opportunities faster than its competitors.
SWOT Analysis helps in strategic planning in following mannera. It is a source of information for strategic planning.
b. Builds organizations strengths.
c. Reverse its weaknesses.
d. Maximize its response to opportunities.
e. Overcome organizations threats.
f. It helps in identifying core competencies of the firm.
g. It helps in setting of objectives for strategic planning.
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h. It helps in knowing past, present and future so that by using past and current data, future
plans can be chalked out.
SWOT Analysis provide information that helps in synchronizing the firms resources and
capabilities with the competitive environment in which the firm operates

3.3 Strategy of BPCL

Indian Public Sector Enterprises (PSEs) take significant strides as far as TBL(Triple Bottom
Line) is concerned. PSEs in India have always been significant contributors to economic
development. The recent release of Sustainable Development (SD) and Corporate Social
Responsibility (CSR) guidelines by the Department of Public Enterprises (DPEs), it is expected
that PSEs will play a key role in promoting and contributing sustainable development. The
guidelines are also expected to extend the standard framework, practices and processes which
exist today for the profit dimension of TBL to the other two dimensions, namely, people and
planet.
The broad strategy to win in the competitive environment is to focus on customers. Broad
Strategic
Initiatives identified are:
Customer-focused approach.
Build on product sourcing capabilities.
Brand building.
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 Strengthening Retail Network-security and development.

Building international trading skills.
Investments in R&D and technology.
Adopt an integrated on-line ERP solution.
Focused initiatives in LNG, Power, Petrochemicals and E&P.
Development of clean and renewable energy e.g. Wind Power, Solar Power and Bio - diesel.

BPCL has initiated various activities to meet the future challenges:

It is also among the first in the industry in implementing a comprehensive ERP solution
SAP R-3 led re-engineering exercise. The implementation has enabled us to incorporate globally
best processes and improve efficiency in all our business operations along the entire value chain.
The entire implementation which was completed by March 2002 has provided substantial
benefits to the Corporation through improved cost control, faster response to and follow up on
customers, improved information access and management throughout the organisation etc.
BPCL has a strong Retail presence through nationwide network to meet our customers'
aspirations. BPCL has shifted its focus from being purely a purveyor of fuel to a retailer by
meeting a wider range of customer needs like convenience goods, banking, and communication.
BPCL has entered into the non-fuel retailing business in a big way by undertaking ventures such
as Errand malls and e-tailing.
BPCL is the first Indian company in the Oil sector to launch the pre-paid loyalty scheme called
'Petro Bonus' and also has made an aggressive entry into the 'e-commerce' arena with the
introduction of B2B (Business to Business) application for Industrial & Commercial customers
and B2C (Business to Customer) solution for Bharat customers.
Retail automation is another key development that enables complete transparency in terms of
exact quantity of fuel dispensed, automated receipt and better payment options through
smartcard / credit / debit cards.

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 To provide superior customer enablement, BPCL has developed customer-centric business

solutions. These solutions focus on different segments of retail customers and provide service
offerings which truly enable them. Highway star ROs have been set up to meet the aspirations of
highway customers (truckers and motorists.) These new format ROs pack a host of amenities
ranging from hygienic restrooms, laundry, amphitheatre, kirana store, a fully equipped multicuisine restaurant with separate dining areas for truckers and motorists etc. In the urban market,
specific solutions have been developed in the form of 'Quick Serve RO' and for 'Short Distance
Commercial Vehicle customers' to enhance customer service.
BPCL has launched 'In & Out eTraveller', a one stop facility for all travel and hospitality
needs of the customers. The 'In & Out eTraveller' enables customers e-ticketing for air and bus
tickets, e-booking for railway tickets, and hotel accommodation, brought through a web of
alliances with best in the breed service providers.
BPCL LPG business has launched 'Beyond LPG' initiative a value added service to our
Bharatgas customers.
In order to tackle the challenging aviation market, BPCL & ST Airport Services Pvt. Ltd
(STARS a member of Singapore Airport Consortium) have formed the Joint Venture Company
Bharat Stars Services Pvt. Ltd & had jointly bid for Into-Plane Service concession at the new
Bengaluru International Airport.
The JV Company has been provided the SPRH (Service Provider Right Holder) status for
Into-Plane Services at Bengaluru International Airport and Delhi Terminal 3 airport. Our
Strategy is aligned with the Project Dream Plan with the Goal of becoming one million barrels
per day company, triple our profits, and undertake capital spend in excess of INR 5,000 billion
by 2015. The plan has been detailed in previous reports and in the reporting period entered the
execution phase.

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4.1 SWOT Analysis and its Parameters:

SWOT analysis is a useful tool for analyzing a systems overall situation. This approach attempts
to balance the internal strengths and weaknesses of a system with the opportunities and threats
that the external environment reflects. This approach suggests that the major issues facing a
system can be isolated through careful analysis of each of these four elements. Strategies can
then be formulated to address these issues. The key questions related to the Strengths,
Weaknesses, Opportunities and Threats of a system lead to the formulation of the parameters of
SWOT analysis. While carrying out a SWOT analysis, the parameters can be defined in two
ways, one way is to scan a system in a holistic fashion and enlist its Strengths, Weakness,
Opportunities and Threats in a linear manner. The other way is to analyze the Strength,
Weaknesses, Opportunities and Threats of every component that makes up the system.

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4.2 SWOT Analysis of BPCL

SWOT ANALYSIS
BPCL specializes in refining, processing, and distributing petroleum products, and exploration
and production of hydrocarbons. It offers petrol, diesel, kerosene, aviation fuel, liquefied
petroleum gas (LPG), compressed natural gas (CNG), and lubricants. Research and development
(R&D) is an integral part of BPCLs strategy for achieving sustainable growth and profitability.
However, increasing competition can create hindrances for the company in securing sites for its
new fuel stations, which could hurt the company's expansion plans.
Bharat Petroleum Corporation Limited is owned by Government of India. It has its
headquartered in Mumbai. R. K. Singh is its chairman and MD. According to financial year
ended in 2012, following are the important figures related to the company:

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 US$ 44.581 billion

Revenue

US$ 163 million

Net income

US$ 15.275 billion

Total assets

US$ 3.117 billion

Total equity

14,154

Employees

4.3 Strengths
Robust research and development capabilities
Research and development (R&D) is an integral part of BPCLs strategy for achieving
sustainable growth and profitability. To enhance R&D capabilities, BPCL is continuously
strengthening its infrastructure and manpower resources. The new products developed during the
year include OE specific high performance passenger car engine oil, semi-synthetic 4T engine
oil, high performance hydraulic oil, STOU (Super Tractor Oil Universal) for farm tractors,
environment friendly cutting oils, defense specific hydraulic oil, and alternate formulations for
existing products. Moreover, as part of its new initiatives, BPCL continued its research
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collaborations with a number of leading research institutes. These include collaborations with
Indian Institute of Science of Bangalore, Osmania University of Hyderabad, Tamil Nadu
Agricultural University of Coimbatore, IIT Roorkee, IIT Madras, Institute of Plasma Research of
Gandhinagar, and CSMCRI of Bhavnagar.

Non-conventional energy initiatives

BPCL has placed strong emphasis on the development of non-conventional sources of energy. A
number of initiatives have been undertaken in tapping non-conventional energy sources like biodiesel, wind energy, solar energy, and fuel cells in order to develop alternate sources of energy.
BPCL has promoted Bharat Renewable Energy (BREL), a joint venture company with the
objective of entering the bio-diesel value chain in the state of Uttar Pradesh. Project Triple One
has also been launched with the aim of producing one million tons of bio-diesel from the
plantation of Jatropha and Karanj, to replace diesel over the next 10 years.
As on March 31, 2013, the company has identified about 134,722 acres (54,520 hectares) of
waste/arid land, out of which 8,987 acres (3,637 hectares) of biofuel plantation has been
completed. BPCL is also in discussion with the State Governments of Bihar, Madhya Pradesh,
and Karnataka to set up bio-diesel facilities in these states. BPCL, in coordination with the
Government of Karnataka, has identified a location at the Bio-fuel Technology Park in Hassan
for setting up a green fuel retail outlet (GFRO) jointly with the Department of Agriculture,
Government of Karnataka. Moreover, BPCL has been one of the first energy companies to
successfully generate power through windmills in India. Windmills, with a capacity of five MW
(four windmills of 1.25 MW each) in the hilly range of Kappatguda in Karnataka, are currently
in operation and the power produced by them is being sold to the Karnataka state electricity grid.
BPCL is currently evaluating a proposal for setting up of a wind farm with 10 MW capacity in
Maharashtra to set off the electricity consumed in the state. BPCL plans to make further
investments in windmills in the states of Rajasthan, Maharashtra, Gujarat, and Madhya Pradesh.
The company is also setting up a one MW capacity grid connected solar farm at its LPG bottling
plant in Lalru in the state of Punjab. As the power generated from the plant is proposed to be sold
to the Punjab State Electricity Board, BPCL has signed a power purchase agreement with the
board. In addition, a five kilovolt amperes (KVA) solar cum wind power generator have been
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commissioned at one of BPCLs company owned company operated (COCO) retail outlets near
the city of Kolkata. A five KVA solar power generator has also been installed at a COCO outlet at
the city of Bangalore. BPCL is also evaluating proposals to set up a Solar Farm of five to 10 MW
capacity, either on its own or through joint ventures at select locations. These initiatives will
enable BPCL to strengthen its clean energy capabilities in the wake of changing environment
regulations. These initiatives enable BPCL to strengthen its clean energy capabilities in the wake
of changing environment regulations.

Strong production capabilities

BPCL has strong production capabilities. The aggregate refinery throughput at BPCLs refineries
at Mumbai and Kochi and that of its subsidiary company NRL in FY2013 was 23.21 MMT.
During FY2013, the Mumbai refinery processed 13.10 MMT of crude oil. Despite turnaround
activities, the refinery achieved a capacity utilization of 109% in FY2013. The refinery achieved
its highest ever production of several products including LPG, methyl tertiary butyl ether,
aviation turbine fuel (ATF), and lube base oils. The refinery also commenced the production of
Euro IV quality motor spirit (MS) and high speed diesel (HSD). The Kochi refinery recorded a
throughput of 10.1 MMT in FY2013. The Kochi refinery recorded its highest ever production of
ATF, Bitumen, LPG, MS meeting Euro III standards, and propylene.2012, the Kochi refinery
recorded its highest ever production of ATF, Bitumen, LPG, MS meeting Euro III standards, and
propylene. Strong production capabilities enable BPCL to continuously enhance its efficiency, to
evaluate opportunities to reduce costs, and to improve processes. In addition, it helps the
company to increase the reliability of order fulfillment and satisfaction of customer needs.
Fostering loyalty
BPCL share rewarding relationships with their customers and building loyalty has been a centre
of focus with them. Recognizing the need of their customers to make life more convenient and
rewarding and introduced the first loyalty-cum-rewards program, PetroBonus. Equipped with
Smart Card Technology, the Petro Card program combines convenience in payment along with
an inbuilt rewards program that rewards the customer with Petromiles every time he fuels. A
similar program, Smart Fleet was launched for Fleet Owners. The SmartFleet Programme offers
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the fleet owner an unbeatable convenience, security and a host of privileges such as cashless
transactions, vehicle tracking, Credit Option for Fleet Owners and Cash Management System.

Caring for customers vehicle need

BPCL also aim to provide service centre facilities through their V-CARE (Vehicle Care) Centres
across the urban network. The V-Care Centres provide customers with reliable, transparent and
value for money services for the basic vehicle care needs. BPCL have tie ups with Hero Honda
and General Motors for being their authorized After Sales Service Centres apart from the other
brands of cars and two-wheelers. With BPCLS reach to the nook & corner of the country they
are always near to their customers.

4.4 Weakness
Concentration of operations

BPCL primarily operates in India and generates major revenues from the country. Although the
company has presence in six countries across five continents, the company heavily depends on
the Indian market for its operating profits. As a result, this becomes a competitive disadvantage,
as its competitors carry a wider scale of operations. The prime concentration of companys

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operations in India not only increases its exposure to local factors but also deprives BPCL of
higher revenues from high growth markets in countries outside India.

Dependency on international market for supply of crude oil

BPCLs dependence on imports for meeting the crude oil requirements of its refineries has been
increasing. BPCLs imports of crude oil rose from 16.27 MMT in FY2012 to 17.00 MMT in
FY2013. The international crude oil markets remain extremely challenging since the crude oil
prices are volatile. On the other hand, supply of crude oil from domestic sources has been
declining, Also, geo-political developments like the sanctions imposed on Iran, a major crude oil
supplier, has made the task of imports more challenging. All these factors contribute in creating a
demand supply gap for the company. This also hampers the face value of the company as well as
hits the revenues adversely.

4.5 Opportunities

Strategic plan for the integrated refinery expansion project (IREP)

In recent years, BPCL has strategically planned for a major expansion program at its Kochi
refinery. BPCL, through IREP, plans to increase the crude oil refining capacity from 9.5 MMTPA
to 15.5 MMTPA, focusing on low-cost expansions as a part of the companys INR200,000
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million ($4,172 million) investment disbursement over the next three years. In accordance with
this target, in April 2011, the Board of Directors at BPCL approved the expansion of the Kochi
refinery by six MMTPA. Further, in June 2011, BPCL planned to expand its refineries in Kochi
from 190,000 barrels per day to 300,000 barrels per day and also planned to build a fluid
catalytic cracking unit at the same plant. These expansions are expected to be operational by
FY2015. In recent years, BPCL has strategically planned for a major expansion program at its
Kochi refinery. BPCL, through IREP, plans to increase the crude oil refining capacity from 9.5
MMTPA to 15.5 MMTPA, focusing on low-cost expansions as a part of the companys
INR200,000 million ($4,172 million) investment disbursement over the next three years. In
accordance with this target, in April 2011 the Board of Directors at BPCL approved the
expansion of the Kochi refinery by six MMTPA. Further, in June 2011, BPCL planned to expand
its refineries in Kochi from 190,000 barrels per day to 300,000 barrels per day and also planned
to build a fluid catalytic cracking unit at the same plant. These expansions are expected to be
operational by FY2015. Investment in the IREP project would help BPCL to provide an
enhanced flexible energy mix, to increase its own generation capacity, and to improve its
marketing activities and to gain competitive advantage over its peers.

Expansion of the petrochemical business

BPCL is planning to diversify into the petrochemicals business and also to build a niche
petrochemical project at a cost of INR5060 billion ($1.11.3 billion). For instance, in December
2011, BPCL planned to sign an agreement to form a joint venture with UK's LP Chemicals for
setting up a petrochemical plant at its Kochi refinery in Kerala. Further, in July 2012, BPCL
signed a MOU with LG Chemicals to set up a petrochemical plant next to its Kochi refinery
complex. The company would be installing a petrochemical fluid catalytic cracker (PFCC) which
would produce 500 thousand metric tons per annum (TMTPA) of propylene. This project is
scheduled for completion in the next four years dovetailed with the refinery expansion project,
with an expenditure of INR4060 million ($0.83$1.25 million). Later, in September 2012, the
company further planned to offer 51% stake in the petrochemical project to its Korean joint
venture partner LG Chemicals. The plant will be commissioned by the end of FY2017. The
propylene plant is part of the companys proposed petrochemicals complex planned at
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Ambalamugal near Kochi, where it also has a 9.5 MMT oil refinery. part of the companys
proposed petrochemicals complex planned at Ambalamugal near Kochi, where it also has a 9.5
MMT oil refinery. With the expansion of this petrochemical business the company will add a
new product line into its downstream business.

Growing demand for oil and gas

After the global economic meltdown, the years 201113 continued the pace of recovery,
especially in countries like India and China. The Indian economy was one of the few countries
with GDP estimated to have grown at 5.6% during the year. Indias GDP is expected to grow at a
healthy rate in the coming years. As energy demand grows, oil and gas companies will have a
major role to play in meeting the rising demand. Moreover, according to BPs Energy Outlook
2030, energy consumption in India has grown by 190% over the past 20 years and is likely to
grow by 115% over the next 20 years, a rate of over 4% per annum. The fastest growing fuels are
renewables (including biofuels) which are expected to grow at 8.2% a year between 2010 and
2030; among fossil fuels, gas grows the fastest (2.1% per annum) and oil the slowest (0.7% per
annum) for the same period. BPCL offers a wide range of petroleum products in India. The
aggregate refinery throughput at BPCLs refineries was 23.21 MMT during FY2013 and the
company plans to improve its output to meet customer demand. Therefore, BPCL is well
positioned to capitalize on the growing Indian oil and gas market.

Privatization
As a part of the ongoing economic reforms the government was actively pursuing privatization
of the public sector organizations. There was a clear message from the government that all public
sector organizations should have a business orientation irrespective of the social obligations. A
couple of senior managers state Privatization is something that will happen. One cant bother
too much about the future without knowing what is going to happen. It is inevitable and we cant
do anything about it.
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We dont know what will happen to BPCL and us. Tomorrow we may not exist as BPCL. We
might become a part of Shell or Reliance or some other organization.
The impeding competition as well as the uncertainty of existence in the present form created
anxiety in the organization across all levels. Some considered it to be an opportunity where as
others considered it as a let down by the government and the organization. The organization
initiated numerous changes in order to transform itself to face the future competition.

4.6 Threats

Intense competition
The competition in the downstream segment in India has increased due to the entry of private
sector companies. Other state-owned oil companies in India have shed their co-existence policy
in recent years and have gained noticeable market share in the oil industry. BPCL faces intense
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competition from other national and local companies such as Hindustan Petroleum, Indian Oil,
Chennai Petroleum, Hindustan Oil Exploration, and Mangalore Refinery and Petrochemicals.
In addition, deregulation of the downstream segment has led to the entry of private sector
companies such as Reliance Industries into this market segment. Increasing competition in the
downstream segment could force the company to offer additional subsidy and result in pricing
pressures. This in turn would increase costs and cause further decline in margins. Further,
increasing competition can create hindrances for the company in securing sites for its new
stations, which could hurt the company's expansion plans.

Under-recovery of the prices of petroleum products

Although the Indian-state owned oil marketing companies (OMC) like BPCL are in theory free
to raise the prices of their petroleum products, but in practice they are rarely allowed to do so by
the Indian government, their majority shareholder.
Currently, OMC are suffering a loss of INR9.84 ($0.20) for every liter of diesel sold in the
domestic market and a loss INR31.30 ($0.65) for every liter of kerosene sold, while the loss on
selling domestic LPG is INR478.50 ($9.98) per cylinder. Although BPCL had absorbed such
losses in the past whereby profits from its refining business had compensated the losses suffered
by its marketing operations allowing the company to record overall profits, but declining refining
margins are no longer enough to offset the marketing losses. Henceforth, inability to raise prices
of controlled petroleum products and delay in government compensation for the losses suffered
thereof, are pushing OMC like BPCL towards financial hardship.
Competitors
The main threat to the organization is of competitors. BPCL has a wide number of competitors
like ONGC
As the business economy rebounds, many entrepreneurs are thinking that life will soon get
easier, and their opportunity can only grow. In reality, the business world gets tougher every day,
with new entrants, new technology, and competitors more easily entering the fray from around
the globe.
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Startups that target profitable and growing markets with high returns should realize that these
will draw many new entrants. It will certainly also decrease profitability over time, as well as test
your sustainable competitive advantage. That leads to switching costs, sunk costs, brand equity,
and a host of other considerations, commonly called barriers to entry.

5.1 Recommendation
Bharat petroleum is performing well in its industry but the major changes that BPCL needs to is
following
Company need to do competitor analysis through which the can understand the new pricing
strategy so that company can sustain in the market because competitors are very hyper in the
market through pricing as Supper as well as Reliance gas

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 Company need to take feedback from time to time so that company can deliver better service
to consumer so that consumer can get better after sale service
BPCL need to penetrate retail market for industrial product as well as domestic product so
that company can increasing the market share because a lot of person has no time to take
connection and the company goes to them they take connection from him
Company should organize campaign for new connection so that industrial and domestic
customer can take easy connection , this is the easy way through which company can easily
increase market share
Company need to appoint a person who can do direct marketing and customer can easily send
and solve their problems
Company should be target oriented so that every staff can give hundred percent in the
company work and company can compete with private player
BPCL should also initiate the loyalty program to the existing customer so that existing customer
can be loyal and new customer can be attract as many retail marketer

5.2 Conclusion:
BPCL is an integrated marketing and refining company, engaged in refineries
and selling petroleum products, and has a higher presence in metro cities than peers. This gives it
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the advantage of higher growth rate, greater margins and lower competition. The companys
different programs add to its quality and competitive advantage. BPCLs expansion of its current
refining capacity and newer refineries, removes product supply risks.
Bharat Petroleum Corporation Limited is one of the leading in Indian petroleum arena, the main
competitor of BPCL were IOCL as well as HPCL but in the present scenario Supper as well as
Reliance private player came in to existing so company is getting more and more competition
from private player
Company has have good policy as well as good distribution but the only thing is company need
to be more transparent towards the customer. Customers have had a lot of problem in taking
connection so company need to organize campaign for connection at list in metropolitan city
because private players are taking good response from the market and they are providing
connection with ought any hurdle and because of that customer are attracting towards private
player
According to me and my project analysis I came to this point that BPCL need to be more
transparent towards the customer for domestic customer and for industrial product company need
to do direct marketing, in present scenario because competition is going to be more hyper in the
market because private players are taking more market share because of service although their
product is not good in the comparison of BPCL and others PSU in this industry.

5.3 Bibliography
Websites:

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http://store.globaldata.com/company-reports/oil-~-gas/bharat-petroleum-corporation-limitedbpcl-financial-and-strategic-swot-analysis-review#.Vip_k7_cLfY
https://marketpublishers.com/report/company_reports/bharat_petroleum_corporation_limited_sw
ot_analysis.html
https://en.wikipedia.org/wiki/SWOT
http://www.bharatpetroleum.in/EnergisingEnvironment/KochiRefinery.aspx?id=3
Newspaper Articles

Bharat Petroleum to invest Rs 40,000 crore to up capacity to 50 mtpa by 2021

PTI Sep 11, 2015, 08.43PM IST

MUMBAI: Bharat Petroleum Corp (BPCL) has set a target of increasing its refining capacity to
50 million tonne per annum with an investment of Rs 40,000 crore over the next five years as
part of its overall Rs 1 trillion capex plan under 'Project Sankalp'.
The PSU, which currently has a refining capacity of 30 million tonne per annum (mtpa), has
earmarked a whopping Rs 1 trillion capex by 2021 under 'Project Sankalp', primarily focusing on
brownfield expansion. This is double the capex amount it had spent in the past five years.
"We plan to increase our refining capacity to 50 mtpa from 30 mtpa now by investing Rs 40,000
crore in brownfield expansion by 2021. Our total capex under Project Sankalp is Rs 1 trillion
during the next five years," Chairman and Managing Director S Varadarajan said here.
Of the Rs 1-trillion capex, the refiner plans to spend Rs 25,000 crore for upstream development,
including developing its Brazilian and Mozambique oil and gas fields and buying more oil equity
abroad.
The remaining amount will go into marketing spends, which will see a lot of money being put
into ramping up its non-fuel retail venture under the In & Out brand, Varadarajan said on the
sidelines of the company's AGM.

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State-run oil cos like Indian Oil Corp, Bharat Petroleum Corp Ltd again pitch for fuel
price hike

October 19, 2011 | Rajeev Jayaswal , ET Bureau

BPCL hires four banks for US dollar bond offering

April 17, 2015 | PTI

Bharat Petroleum Corp Ltd to invest Rs 1,419 crore in Mumbai refinery

May 5, 2014 | PTI

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