Hindustan Petroleum Corporation Limited (HPCL) Global Fortune 500

Transcription

1 Hindustan Petroleum Corporation Limited (HPCL) is a Global Fortune 500 company, ranked at 260 and engaged in business of refining & marketing of petroleum products in India. During the year ended 31 st March 2014, HPCL has achieved Market Sales of about 31 Million Metric Tonnes (MMT), Refining throughput of MMT and Pipeline throughput of 15.7 MMT. Considering HPCL 9 MMTPA GGSRL JVC Refinery at Bathinda, Punjab, the crude refining capacity increased to 23.8 MMTPA. HPCL also holds an equity of about16.95% in the 15 MMTPA Mangalore Refinery and petrochemicals Ltd. (MRPL). The company has been year on year displaying exceptional performance which has qualified the Corporation for Excellent ratings in terms of the MOU signed with the Government of India. For the year the MOU score was 1.034, which is the best score amongst all the PSUs under MOP&NG for the second successive year. The performance of the Corporation for the year also qualifies for Excellent rating basis self-evaluation. HPCL enjoys about 21% market share among PSU in India as of March HPCL also has the country's largest Lube Refinery with a capacity of 450 Thousand Metric Tonnes which amounts to about 40% of the national capacity of Lube Oil production. HPCL has given India a firm ground in

2 this sector with its world class standard of Lube Base Oils. Presently HPCL produces over 350+ grades of Lubes, Specialities and Greases and is the country s largest lube marketer. HPCL's infrastructure is at par with that of the best global standards in the hydrocarbons sector, it s vast marketing network consists of 13 Zonal offices in major cities and 101 Regional Offices facilitated by a Supply & Distribution infrastructure comprising 35 Terminals, 2459 kms of Pipeline networks, 35 Aviation Service Stations, 46 LPG Bottling Plants, 68 Inland Relay Depots, 7 Lube blending plants. The corporation has a formidable network consisting of Retail Outlets, 3506 LPG Distributorships, 1638 SKO/LDO dealerships apart from well represented distributorship / CFA for Lubes and CNG and Auto LPG stations. HPCL has achieved growth of 4.1% compared to PSU Industry average of 0.6% during In the retail segment, the Corporation continued to retain its 'Market Leadership' in terms of growth and achieved record domestic sales of 21 MMT with Market share growth in Total Motor Fuels (TMF) of 0.16% for the year making it A Decade of Excellence in Growth. HPCL has become India s largest lube marketer with Lubricant sales of 484 TMT during the year and continue to be the 2nd largest LPG marketer in the country with sales of MMT catering to about million customers.

3 HPCL has been equipping itself to face the impending deregulation in the sector and has focused on strategic network expansion, penetration of rural markets, improving network productivity, strengthening infrastructure, optimising supply chain, safety, key account management and achieving profitable growth. Recognising marketing and distribution network as one of the pillars of success, a number of infrastructure projects have been taken up for capacity expansion i.e., Mounded LPG Storage and Jetty Facility at MLIF, Mangalore; New LPG Bottling Plants at Solapur, Bhopal and Bangalore increasing the storage capacity to about 130 TMT and bottling capacity to 5 MMTPA; New POL Depots at Bokaro, Bihta and Kadapa and Revamping of POL terminals at Paradeep and Budge Budge; 3 Product Pipelines i.e., (i) 442 km long Rewari Bharatpur-Mathura Kanpur product pipeline, (ii) 93 km long Awa Salawas product pipeline and (iii) 14 km long Bahadurgarh-Tikrikalan product pipeline and 1 LPG Pipeline i.e., 397 Kms long Mangalore Hassan Mysore-Solur LPG Pipeline which will increase the POL tankage to about 3.1 MMT and Product pipe line capacity to about 39 MMTPA with a length of about 3,600 km. The company has started making its footprints in the Natural Gas segment, and in this regard has initiated the project activities for setting up a 5 MMTPA LNG terminal at Chhara, Gujarat in a JV partnership with M/s S P Ports Pvt Ltd (a group company Of Shapoorji Pallonji ). Further, HPCL is participating in two separate Joint Venture companies viz. GSPL India Gas Net Limited (GIGL) and GSPL India Transco Limited (GITL) with equity stake from GSPL (52%), IOCL (26%), HPCL (11%) and BPCL (11%) for laying, building and operating three (3) natural gas pipe lines. In Refining, the focus is on increasing the operating efficiency of the existing refineries at Mumbai and Visakh and increasing the refining capacity for bridging the demand-supply imbalance for HPCL by increasing capacity at Mumbai Refinery from existing 6.5 to 10 MMTPA and at Visakh Refinery from 8.3 to 15 MMTPA. In addition, HPCL is setting up Refinery-cum-Petrochemical complex at Barmer, Rajasthan in JV with Govt. of Rajasthan.

4 In Exploration & Production, M/s Prize Petroleum, wholly owned subsidiary of HPCL has signed a Sale Purchase Agreement with M/s AWE, Australia to acquire stake in two natural gas blocks in Australia, viz., 11.25% participating interest in a producing field Yolla and 9.75% interest in a discovered, to be developed field Trefoil for a total consideration of AUD 85 Million. In Renewables, HPCL has undertaken Wind Farm project to tap the vast wind potential in the country, HPCL has commissioned 50.5 MW generation capacity wind energy farms and plans to further expand by 50 MW. HPCL places significant thrust on research and development based growth. In the present scenario where margins are under pressure, investment in proprietary research in lubricants, petrochemicals, catalyst, refinery technologies, operations and product offerings is viewed as a thrust area for the Corporation. A Green R&D Centre is being setup in Bengaluru with 9 labs recognising the importance of R&D as a key driver for new businesses. To insulate the organisation against external volatilities and uncertainty, HPCL

5 has focussed on process improvements and has taken initiatives like Central procurement and integrated value chain management to extract greater value from existing businesses and achieve transparency and process standardisation for delivering superior value to the customers and stakeholders. HPCL is committed to ensuring HSE standards, and in this regard are the first in Industry to implement ISRS certifications in POL depots & terminals. To prepare the corporation for the VUCA times, the corporation is putting in place a Growth Strategy co-created by cross-functional management teams with complete alignment of the frontline field force christened UDAAN The strategy is focused on strengthening our core businesses of refining and marketing, building on the existing capabilities, asset optimization and preparing corporation for the future.