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A Presentation on BPCL (Refinery) Ashok Sinha- MD

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Introduction Phase

• Burmah Oil Refinery Ltd. Was incorporated in 1952 as a joint venture between Burmah Oil Company,

• UK and Shell petroleum company by an agreement with the Indian Govt. to set up a refinery at Mahul in Mumbai, Which went on stream in 1957.

• In 1976 Indian govt. nationalized the petroleum industry and acquire 100 % equity in Burmah Oil Refineries and named it Bharat Refineries Ltd. The name was later changed to Bharat Petroleum Corporation Ltd. (BPCL) in 1977.

• BPCL’s retail network was the third largest in the country with around 4,500 retail outlets (petrol pumps/ gas stations), around 950 dealership for kerosene and light diesel oil, and 1200 LPG distributor.

Introduction PhaseBPCL Training BMSU – ITM, 76 Feedback

Raw Material

Crude Oil

Additives

Base Oil

Ethanol

Others

Material Phase BMSU - ITM 76Raw Material

Feedback

The following Raw Material are used in the production of Oil, LPG Gas, Petrol etc.

Material Phase BMSU - ITM 76 Feedback

Finished Goods

Finished Goods

Product Name Unit

Crude Oil MT

Middle Distillates-Purchases MT

Light Distillates-Purchases MT

Adjustments Rs.

Others -Purchases MT

Additives MT

Base Oil KL

Reformate MT

Ethanol KL

Other raw materials consumed MT

Lubricants-Purchased MT

Benzene MT

Toluene-Purchased MT

Others (Grocery) NA

Unspecified NA

Crude Oil-Purchases MT

Production Process

Production Phase BMSU - ITM 76Production Process

Feedback

Marketing Strategy

1. Established network - Source of marketing strength in

oligopolistic industry2. Retail Plans - Branding Prerequisite for Future Growth:3. Controlled Marketing Margins - GoaI as Regulator4. Protection to Indian Refineries - Significant Source of

Comfort5. Dividend Policy - Key Determinant of Future Financial

Profile6. Implementation of GGSRL Project - Linked to Divestment

of Goal stake

Induction Phase BMSU – ITM 76 FeedbackMarketing Strategy

HR POLICY

Policy Phase BMSU – ITM 76HR Policy

Feedback

The company’s HR policy is to emerge as an employer of choice, to attract retain & provide excellent opportunities for growth to the best talent through it’s forward looking policies like merit pay for performance, employees stock option scheme.

Field staff are covered under one of the best incentives scheme in the industry

Promote the spirit of team work in the work place which` built a seamless organization

The company’s aim to encourage and assist in the training & retaining & career development of employees & conducting training programme for junior level employee & development programme for junior manager.

HR Policy

Recognition to Human Resource/ People : HR efforts are aimed at development of people to provide them competitive edge. It helps to realize them their personal vision as well as the vision of the organization.

Performance Appraisal : BPCL is an award winning company for its HRD efforts and also uses performance appraisal system to identify completeness and capabilities of staff through its competency gaps. Further it helps the organization to identify and place the right person for the right job.

Performance Building or Building Development and Upgrading Competencies :BPCL organized several programmes on development of employees.

Policy Phase BMSU – ITM 76 HR PolicyFeedback

HR Policy

Career Planning : Planning of Career by means of education, training, development and job search etc. Is known as career planning .

Multi- Skilling : BPCL has introduced Multi Skilling in the organization to encourage the employees to take up new initiatives.

Participative Management : Organization promotes workers participation in Management. Participative Management is provided to enhance the role of the employees in the decision making.

Leadership Development : In leadership development the company’s HR policy is ‘We care about the people who leverage our growth.

Policy Phase BMSU – ITM 76 HR PolicyFeedback

Customers

Customer BMSU – ITM 76 Main CustomersFeedback

The following are the main customers (Dealer’s) of BPCL :

Customer Name Address (Location)

V B Parekh Bpc Dealer, Nagewadi, Satara, Maharashtra

M Vivekanandiah & SonsP B Road, Nh-4, Chitradurga, Karnataka

Bpc Coco (Madavaram) Inner Ring Road , Madavaram, Chitradurga.

Baba Services Nh-8, Village Kukkas, Dist. Jaipur

Durga Service StationBaner- Sindri, Nh-8, Jaipur-Ajmer Road, Dist. Jaipur

Customers

customers BMSU – ITM 76 Main CustomersFeedback

The following are the main customers (Dealer’s) of BPCL :

Customer Name Address (Location)M/S Tarachand Saluja & Sons Dealer Bharat Petroleum,Neelam Chowk,New Town

Ship,Faridabad

Singh Service Station G.T. Road,Giani Border, P.O. Chikember, Ghaziabad

M/S Shah & Co. Nh-8, Baroda-Surat Highway, Por

Makin Brothers 32, Bon Behari Bose Road, Howrah

Mukherjee Service StationG T Road, Mahesh, Hoogly

Few Accounting Ratio’s

Current Ratio Proprietary Ratio Net Profit Ratio Stock Turnover Ratio Earning Per Share

Ratio Phase Accounting ProcessBMSU – ITM, 76 Feedback

Current Ratio = Current Asset / Current liabilities

= 23,583.93 cr./ 17,131.15 cr. = 1.37 cr.

Comments: This ratio indicates the short term solvency position of the company

the standard is 2:1 the current ratio is 1.37 it shows less than the standard the company can not meet short term liability so its solvency is not good.

Ratio PhaseCurrent Ratio

BMSU – ITM 76 Feedback

Current Ratio

Proprietary Ratio = Shareholders fund / Total Assets* 100 = 13,086.71 cr. / 53,272.36 cr.* 100 = 24.56 %

Comments: This ratio indicates amount invested by the

proprietors in total assets the standard is 65 to 70 % but the co. proprietary ratio is 24.56 % it shows company more dependent on borrowed fund.

Ratio PhaseProprietary Ratio

BMSU – ITM 76 Feedback

Proprietary Ratio

Stock Turnover Ratio

Stock Turnover Ratio = COGS / AV. Stock

Comments: This ratio shows number of times the stock has been turned over i.e purchase & sold it indicates the efficiency of buying and selling dept. in the business. A higher ratio indicates quick purchase and quick sales and very low ratio shows inefficiency of buying and selling dept. in the business.

Ratio Phase BMSU – ITM 76 FeedbackStock Turnover Ratio

Net Profit Ratio

Net profit ratio is the ratio of net profit (after taxes) to net sales. It is expressed as percentage.

Net Profit Ratio = Net profit / Net Sale * 100 = 1,719.98 / 1,23,816.72 *100 = 1.38

NP ratio is used to measure the overall profitability and hence it is very useful to proprietors. The ratio is very useful as if the net profit is not sufficient, the firm shall not be able to achieve a satisfactory return on its investment.

This ratio also indicates the firm's capacity to face adverse economic conditions such as price competition, low demand, etc. higher the ratio the better is the profitability.

Ratio Phase Net Profit RatioBMSU – ITM 76 Feedback

Earning Per Share Ratio

Meaning: The portion of a company’s profit allocated to each outstanding share of common stock. Earning per share serve as an indicator of a company’s profitability.

EPS = NPAT – Pref. Dividend No. of Equity Share = 1537.62 cr.- 0 36.15 cr. = 42.53

EPS ratio calculated for a number of years indicates whether or not the earning power of the company has increased.

Ratio PhaseEarning Per Share

BMSU – ITM 76 Feedback

P & L Statement 31st March 10

BMSU – ITM 76 Financial StatementP & L , A/C

Feedback

PV RATIO- BREAK EVEN POINT-MARGIN OF SAFTY

Ratio PhasePV, BOP, MOS

BMSU – ITM 76 Feedback

PV = CONTRIBUTION /SALES *100

51%

48%

09-10 08-09

BREAK EVEN SALES= FIXED COST /PV RATIO

358UNITS

317 UNITS

09-10 08-09

MARGIN OF SAFTY= SALES –BREAK EVEN SALES

56614RS

53791RS

09-10 08-09

Thank you

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