Bpcl Strategies

BPCL: In Quest of Excellence

About BPCLMission

Category Oil and Gas

USP One of India's most trusted oil brands

Target Group Enterprises looking for energy for production, people for petrol diesel for vehicles and domestic uses

• Majority Govt. of India shareholding of 54.93% and explicit Govt. support through under-recovery compensation mechanism .

• #225 ranking on Fortune 2012 global list; One of only eight Indian companies on the list .

• Well positioned to meet market demand across India through Strategically located Refineries and Marketing Infrastructure .

• India’s 3rd largest company by turnover over INR 2,400 bn in FY13

• India’s 2nd largest Oil Marketing Company (OMC)

Timeline…

Ongoing Projects…• Thriving to be self sufficient integrated source of fuel supply.

• Integrated Refinery Expansion Project (IREP) at Kochi – Increasing refining capacity from 9.5

MMTPA to 15.5 MMTPA along with modernization of existing facilities to produce future quality fuels.

• Mumbai Refinery – Catalytic Cracking Reformate (CCR) unit & Replacement of CDU I & II .

• Investments in Gas pipelines – GIGL & GITL pipelines in Joint Venture.

• Retail : Network expansion with infrastructure growth and upgradation .

• Expansion of marketing infrastructure across all business areas Significant Expansion in Downstream & Marketing network to drive future growth 20

Upcoming projects…• Kochi - Foray into Niche Petrochemicals.

• Funding for upstream developments and new assets.

• Mumbai Refinery – Upgrade/de-bottlenecking.

• Bina Refinery – Creeping Expansion.

• Investments in Gas.

• Kota – Jubner pipeline – Augmentation of existing product pipeline.

• Expansion of marketing infrastructure across all business areas.

• Investment of Rs. 40,000 crore on Upcoming and Ongoing project over the period of next 5 years More expansions in Upstream, Downstream business & Marketing network 21.

SWOT Analysis

Opportunity• Increasing fuel/oil prices.• Increasing natural gas market.• More oil well discoveries.• Expand export market.

Threats

• Government regulations.• High Competition.

Strengths• One of India's largest state

owned oil and gas company.• Has brand presence. • Refining and retailing of

petroleum

Weaknesses

• Legal issues.• Employee management.

Current Market Scenario..

• India is already a petroleum refining hub with over 20 refineries.

•Private companies such as Reliance Industries Limited and Essar Oil have become major refiners.

•Despite largely importing crude oil, India has become a net exporter of petroleum products.

•Investment opportunities are in Upstream, gas pipeline, CGD network, LNG Terminal, Petrochemical and Refinery.

•Fourth largest consumer of crude oil and petroleum products in the world.

•Second largest refiner in Asia

Opportunities brought in by FDI…• The New Exploration Licensing Policy has garnered FDI worth Rs 31,501.55 crore (US$ 5.13 billion) from

2001-2014.

• 246 Oil blocks have been thus awarded to many players.

• NELP has led to various joint ventures with foreign players such as –• British Petroleum (planning to invest 800Cr).• Japan-based Chubu Electric Power Co.• Progress Energy Canada Ltd.• PETRONAS Carigali Canada BV • Shell.• BG Group (Scotland).• Niko Resources (Canada).

• In Small & Medium sized Enterprises 100% FDI is permitted through competitive bidding in Exploratory and Processing while permitting 49% FDI in PSUs through automatic routing.

Exploration and production strategy• Has aspiration to Become independent operator. • Considerable progress in upstream exploration.• Till date 14 discoveries in exploration block.• Global Portfolio comprises of 28 blocks.• BPCL is operator for the first time.• Innovation options.

Customer Centric strategy• Project CUBE.• Interaction with different segment of customer.• Innovative Ideas.• Emphasis Achieving excellence in project execution.• Set Ambitious Targets.

HR Strategies• Strong leadership Pipeline• “Ascend” and integrated talent management framework.• The approach is styled to facilitate accelerated development by

managing high talent.

Corporate Social Responsibility strategy• Objective is to bring improvement in the life of community• Specifically targets in the area of education and water conservation

Digital literacy and Life Skills project wit leading NGO• Converted 20 villages from water scares to water positive • In collaboration with SEWA, imparted “chikankari” skills to 500

women in lucknow

Operating Performance strategy• 2011-12 BPCL achieved outstanding result in refining and marketing

operations.• Marketing sales volume increased form 29.27 MMT to 31.14 MMT• Increase in retail business share to 26.7 per cent• 1000 new retail outlets• Extended its marketing activities to Bhutan and Nepal.• Aviation business achieved its highest volume during the year

Sustainable development strategy• Maximize Energy efficiency • Undertaking Rainwater Harvesting • Mapping of water, waste and carbon footprint• It has been publishing Sustainability Report as and A+ report

Refine Sector Strategy• Committed to grown in this core area.• BOD approved the current level of 9.5 MMTPA to 15.5 MMTPA which

will involve a capital outlay of ₹14,255 cores.• Refining facilities at Kochi being modernised • Plans to enter petro-chemical business.