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Bharat Petroleum Corp.

Ltd
Group B
1. Melwyn Furtado 2. Devendra Kunwer 3. Eric Lath 4. Sam Nambiar 5. Jitendra Sharma 6. Pravin Shetty 7. Sagar Naik 111 122 123 135 145 147 159

Road Map

Introduction Market Environment Porters 5 Force Model Insight to Strategy


Operational Competitive

SWOT Analysis Ansoffs Product / Market Matrix BCG Growth Market Share CSR Initiatives Conclusion
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Introduction

BPCL is one of India's largest PSU companies. Involved in the refining and retailing of petroleum products. Single digit Indian representative in the Fortune 500 & Forbes 2000 listings (MNC in PSU garb). Pioneer in Indian Petroleum Industry. (Pure for Sure campaign, Petro card, Fleet card etc.) Diverse range of products (Petrochemicals and solvents to aircraft fuel and speciality lubricants) Fuel supplied directly to hundreds of industries, and several international and domestic airlines.
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VISION

GOAL
Most profitable down stream player in the country in the next five years.
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BPCL - Market Environment


Deregularisation post 2000 leading to Open Mkt BPCL Production-Sales deficit (9.7 MMT) Presence only in western region Poor logistics High operational cost Production capacity Emission norms

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Porters 5 Forces analysis


Threat of Substitute product
Alternative fuels / energy like bio fuel

Bargain Power of Suppliers


OPEC Country Govt interference Diplomatic Interest of country Bombay high ONGC

Rivalry among existing competitors


Reliance / Shell / IOC / HPCL

Barriers to Entry
Huge investment Volatile market Land cost & acquiring at strategic location

Bargain Power of Buyers


Price fixed by govt on socio economic interest of company Huge competition in direct market

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Insight to BPCL Strategy


Operational efficiency Capacity expansion Plant modernization Mergers Kochi Refinery Major stake in Numaligarh Refinery Ltd Bharat Oman Refinery Ltd Bina Pipeline: Bombay to Delhi 6 SBU (Refinery, Retail, Industrial & Commercial,
Lubes, LPG & Aviation )

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Insight to BPCL Strategy


Competitive Advantage
Pure for Sure Campaign Fleet card Petro card

ERP Integration Logistics (SCM) National reach Plant efficiency

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SWOT ANALYSIS
Strength
Brand Name Refining Capacity Retail Network SAP Integration R&D support Best in SCM Cost advantage

Weakness
High cost of Crude oil prices Govt. control on pricing Subsidized product Black marketing Bureaucratic involvement on strategic decision.

Opportunity
Demand for Energy Avenues outside India City gas distribution (Joint venture with GAIL) Non conventional Energy like bio diesel Major stake in petronet LNG insuring the gas reserve

Threats
Volatile price of Crude oil & finished product Impact of financial health Openings for global players Competitors faster growing rate

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ANSOFFS GRID Product Present Market Present


Market Penetration Piped gas City gas Pune Indraprashtha Gas Market Development Lubricant sale in Sri Lanka Product Development Speed Petrol

New

New

Diversification Bio Fuel

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BCG Growth Market Share


Relative Market share High High Refining Distribution & petrochemicals Processing Gas sector LNG Lubricants Low

Market Growth

LPG Naphtha Bituminous product

Sulphur By product

Low

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CSR Initiatives

Community Development

Balwadis for children as pre-school intervention. Vocational guidance & self sustenance Women's Developments Self Help group. Tree plantation Building Community Halls Medical Aids Grain Banks Water Harvesting & Bride Scholarship Education Adopted village
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Infrastructure

Education

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Conclusion

BPCL is a organization that has redefined the Petroleum & Refining business by trading a unique path The Marketing Company of the year Award is in recognition of BPCs excellent performance in increasing volumes of products marketed and enhancing the customer base during 2006-07, while adhering to the stringent norms of health, safety and environment protection!

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THANK YOU

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