SECTORS OF NATIONAL IMPORTANCE

MAK Lubricants started with very small volumes and has doubled its volumes in the
industrial B2B segment. Today it provides lubrication solutions to sectors of national
importance such as the Indian Railways, Defence, Cement, Power and Steel sectors.
MAK is also proud to be regarded as the trusted supplier for most of the leading
business-houses across India. MAK has taken the service to industrial customers to
the next level by offering consumer operated 'Lubes Godown' situated at the
premises of its large customers. It also offer services such as condition monitoring,
Mobile Laboratory for testing samples at customers' doorsteps, Total Lubes
Management - right from procurement to assistance of disposal of used lubricants,
Lubricant Surveys to suggest the most suitable product etc. MAK has also initiated
industrial branding in a big way through industrial sector specific journals,
magazines and through personalised mailers, participation in industrial exhibitions
etc.
ABOUT AUTOMOTIVE LUBRICANTS

MAK Lubricants is the fourth largest lubricant player in India with a market share of
21% amongst the PSU oil marketing companies. It markets lubricants through a
network of 13000 Fuel Stations and 591 exclusive lubricants distributors spread
across the country.

MAK markets both Automotive and Industrial Lubricants and recently ventured into
products for non-lubes application in a big way. The Automotive grades and
Industrial grades are available in various pack sizes at more than 60 thousand multi
brand retail counters, exclusive Lubes shoppe and other related counters. With 3
state of the art blending plants and 4 modern lubes filling plants, it is able to cater
to the market through 54 supply depots ensuring availability of all products at all
times. Truly with its top of the class products and services, Brand MAK has emerged
among the top three brands in India in terms of brand recall.

These accomplishments were made a reality through commitment and grit each and
every stakeholders, right from our esteemed customers, enterprising channel
partners and the ever agile members of the lubricants team. With a series of wellcrafted and perfectly executed customer-centric initiatives, MAK has been able to
challenge its own historical performance year after year as well as compete with
established multinational players in the market place.

Project Nishchay consists of four main steps -rural marketplace, integrated fleet
management, personal travel offering and urban household solutions. The rural

marketplace strategy has been named Umang. BPCL owns about 3,800 retail
outlets and 3,100 LPG points with a direct access to rural India.

With a highly respected brand name in the rural marketplace, the company decided
to launch multiple services like assisted e-commerce, financial services, allied
services agri advisory, vocational education and two-wheeler services at the pilot
retail outlets.

Through an all new integrated fleet management system Fleet Genie, BPCL hopes
to provide end to end solution for fleet operators and shippers through strategic
partnership with domain experts. Though the fragmented road transport industry is
mired with challenges for the transporters, BPCL is well poised to tap the
opportunity and carry out ground execution of fleet card program, solve real time
issues of fleet owners.

The company is to focus on areas like payment gateway and payment wallet,
mechanic training, driver training, driver verification, telematics device, cash
withdrawal system at retail outlets, working capital loan, commercial vehicle
insurance and telemedicine.

As a part of the personal travel offering strategy, BPCL will launch the Happy Roads
app, for several demand and supply side drivers owing to and increasing trend of
road trips in India guided by key design principles to address customers needs. The
objective is to inspire people to travel to new and exciting destinations without
worrying about shortfalls in information, basic facilities or emergency services. The
company has selected Bengaluru as the pilot location due to factors like high
employment, young and digitally savvy population and presence of multiple tourist
destinations nearby.

The final step is the urban household solutions strategy, which is yet to be named.
With the food and grocery market constitutes more than 60% of the Indian retail
market, BPCL hopes to put up and Omni-channel offering across physical and digital
platform.

And to set this up, the company needs a wide set of expertise for procurement,
supply chain, physical stores, E-commerce and customer acquisition. The company
expects to open 79 stores in about 58 cities in a span of 5 years with about 31,000
customers and 100,000 online orders.

The Indian government has consistently spent more than it earns from tax and non-tax sources. This
led to a high fiscal deficit. To fund this extra expenditure, the government borrows from the public.
However, high fiscal deficit and constant borrowing is not good for the economy. It is potentially
inflationary. Moreover, it forces the RBI to keep interest rates on the higher side.
Ideally, government expenditure has to balance between growth and social welfare. However, in the
past few years, welfare-related expenditure which barely contributes to economic growth was
higher than productive expenditure like infrastructure development. At a time when the economy
has slowed down, productive expenditure is the need of the hour.
At the same time, the government targets a cut in fiscal deficit. To do so, it has to cut its expenditure
and increase revenue. A high subsidy bill makes this target hard to achieve without compromising on
economic growth.
That said, with the crude oil prices falling internationally, the subsidy bill is expected to fall. This is
expected to help the government reduce its subsidy bill.
LPG subsidy: Reports suggests that the government is planning to cap subsidy on Liquified
Petroleum (LPG) cylinders for the tax payers coming under the 30% tax slab. This is the highest
income earners in the country.