Hpcl Slide (1)

A CASE STUDY CONDUCT BYRAKESH KUMAR PASWANVED PRAKASH MISHRA MANSA LAL GIRIDIWAKAR DWIVED

VISHWA VISHWANI INSTITUTE OF SYSTEMS AND MANGEMENT

VISHWA VISHWANI INSTITUTE OF SYSTEM & MANAGEMENT

Presentation Topic: HPCL-Customer Service Initiatives

INDUSTRIAL PROFILE

Bharat Petroleum Corporation Limited Ticker: BPCL

Sales: 1,365,600,000,000 Major Industry: Oil, Gas, Coal & Related Services Sub Industry: Oil Refiners Distributors Country: INDIA Employees: 14021 Share-BSE- 509, NSE- 511 Profit earned by the company in march 2009 is

13,4073.43.

INDIAN OIL COR. Ltd.

Indian Oil Corporation at a Glance Ticker -IOC Number of Shares - 209934345 Promoters Holding - 80.50% Market Capitalization (Rs. In crores)

Rs.48135.10 Employees - 31945 Refinery Capacity (in MMTPA) 60.20 Retail Outlet (including IBP) over 32,500 18th largest petroleum company in the

world.

GAIL

GAIL Limited, is India's flagship Natural Gas company, integrating all aspects of the Natural Gas value chain (including Exploration & Production, Processing, Transmission, Distribution and Marketing) and its 6,700 km of Natural Gas high pressure trunk pipeline with a capacity to carry 148 MMSCMD of natural gas across the country

7 LPG Gas Processing Units to produce 1.2 MMTPA of LPG and other liquid hydrocarbons

North India's only gas based integrated Petrochemical complex at Pata with a capacity of producing 4,10,000 TPA of Ploymers

1,922 km of LPG Transmission pipeline network with a capacity to transport 3.8 MMTPA of LPG

27 oil and gas Exploration blocks and 3 Coal Bed Methane Blocks

Turnover (2008-09)Rs. 23, 776 crore

ONGC

Holds largest share of hydrocarbon acreages in India.

Contributes over 80 per cent of Indian’s oil and gas production.

About one tenth of Indian refining capacity.

Created a record of sorts by turning Mangalore Refinery and Petrochemicals Limited around from being a stretcher case for referral to BIFR to the BSE Top 30, within a year.

Interests in LNG and product transportation business. BSE 1173 ---- NSE -1178

HPCL DETAILS

Hindustan Petroleum Corporation Limited (HPCL) operates as an integrated oil refining and marketing company in India. It offers petrol, diesel, kerosene, naphtha, lube base oils, unleaded petrol, low sulphur diesel, motor spirit, and greases.

The company’s bulk fuels and specialties include bitumen; fuels, such as high speed diesel, furnace oil, light diesel oil, and low sulphur heavy stock; bunker fuels comprising heavy oil, marine diesel oil, and marine gas oil; marine lubes; special petroleum products consisting of hexane, propylene, jute batch oil, solvent, turpentine oil, carbon black feed stock, and molten sulphur; super kerosene oil; and aviation turbine fuel. It also operates retail outlets that offer petroleum products, liquefied petroleum gas (LPG), compressed natural gas, and turbojet diesel, as well as various petrol cards..

.

In addition, the company offers LPG to residential, commercial, and industrial customers; and aviation refueling services at various airports, as well as engages in the exploration and production of hydrocarbons.

It owns interests in 2 refineries located in Mumbai and Visakhapatnam; 2 wind projects located in Maharashtra and Rajasthan; and 19 exploration and production blocks in India, 1 block each in Oman and Australia, and 2 blocks in Egypt.

The company has joint ventures with Mittal Energy, Ltd.; Hindustan Colas; Prize Petroleum Company Limited; South Asia LPG Co Pvt., Ltd.; Bhagyanagar Gas Limited; Aavantika Gas Limited; Petronet India Limited; Petronet MHB Limited; Mangalore Refineries and Petrochemicals Limited; Petroleum India International; and Sushrut Hospital and Research Centre. HPCL is headquartered in Mumbai, India.

HPCL’s PROFILE

Registered Office- Mumbai Management Details- Chairperson and

MD: A Balakrishnan Directors: TL Sankar, C Ramulu, RV Shah, SR Choudhury, P Das, MA Tankiwala, M Nandagopal, IM Pandey, V Viziasaradhi

Business Operation Refining & marketing of petroleum

products 

BUSSINESS PROFILE

HPCL operates two refineries, one in Mumbai, Maharashtra and other in Visakhapatnam, AP, which achieved a crude throughput of 7.42 MMT and 9.24 MMT, respectively in FY07.

The company also operates a lube refinery that manufactures lube base oils.

HPCL’s brands include Power, Turbojet, Loyalty Cards, HP Junction, Hamara Pump and Club HP, among others. In FY07, HPCL catered to 23.9 mn LPG customers. In July 2007, the company signed a MoU with ONGC for product sale purchase infrastructure services and co-operation in energy and related fields.

BACKGROUND

Hindustan Petroleum Corporation Ltd (HPCL) was incorporated as Standard Vacuum Refining Company of India Ltd in 1952, and later became the ESSO Standard Refining Company of India Ltd in 1962. HPCL was formed with the merger of ESSO and Lube India Undertaking in 1974. Caltex Oil Refining India Ltd and Kosan Gas Company were merged with the company in 1976 and 1979, respectively. HPCL, a Navratna, is involved in refining and marketing petroleum products.

FINANCIAL

Mumbai, May 29 (IANS) public sector oil major Hindustan Petroleum Corporation Limited (HPCL) has posted a net profit of Rs.13.46 billion for the financial year 2007-08, a 24.36 percent drop from the Rs.16.74 billion net profit in the previous year.

Total income has increased from Rs.946.8 billion for the year ended March 31, 2007 to Rs.1,116.3 billion for the year ended March 31, 2008.

The company has recommended a final dividend of 30 percent for its shareholders.

Company Secretary -NR Narayanan Bankers--SBI, UBI, PNB, SCB, BoB, Bol, Citibank, CorpBank,

ICICI Bank, HDFC Bank Ranking-Income: 4 Net Profit: 23 Net Worth: 18

FACTS & ANALYSIS

FACTS ABOUT HPCL

HPCL India's IInd largest integrated oil/LPG

refining and marketing company Gross turnover of Rs. 53000crores.

having net profit of Rs.1,4000 cores in yr. 2002-2003.

LPG consumer base company of more than 16 million, and network of 1,823 distributers across in India.

FACTS ABOUT LPG MARKET  In India there are 43 LPG bottling plant through

out the country The market can be categorized into two

segments, i.e. Industrial market & Domestic market.

And the major role played by domestic market, it constitutes 90% of the total market.

So major target for LPG companies is middle class segment with its significant growth rate.

In 1993 govt. has opened up market for private companies, that increase the competition in this market.

HPCL focused on providing high customer service. It focused on three aspects. i.e.

QUALITY

For maintaining the quality 15000 Hp delivery boys across the country were provided with electronic and mechanical weigh scales.

By this customer cross-check the weight of cylinders at their door step.

this weight campaign projected HPCL’s image as a company provides quality products.

SAFETY

HPCL had taken enhanced umbrella insurance policy covering all consumers and third parties.

The company will provide a compensation of Rs.100,000 in case of demise. RS 25,000 towards loss of property and Rs 15 lakhs towards medical expenses if a person sustain injuries due to accident with LPG cylinder.

LOYALTY

HPCL started a customer helpline for HP gas customer that is 1716. and who enroll as a member. No fee gor enrollment

As member ,the customer could buy a range of products from hp home bazarat huge discount.

By this customer entitled to certain loyalty towards the company.

CONVENIENCE

HPCL CONSUMER CONVENIENCE SERVICES—

24 hours delivery services. Time- 8am to 8pm seven days in week. New connection would be installed in 24

hours.

QUESTION 1- In India, until recently, supply of LPG was always below the demand. The industry was dominated by a few public sector players. In this scenario. Identify, why HPCL focused on improving customer service. 

HPCL focused on improving customer service .the govt reduced subsidies on LPG in a phased manner, there is a possibility of it being removed completely. This was not expected to augur well for the public sector companies.

HPCL, Bharat petroleum and Indian oil, as low price was the differentiating factor for its product in the price sensitive domestic market.

HPCL, Bharat petroleum and Indian oil, as low price was the differentiating factor for its product in the price sensitive domestic market.

the company focused on three aspect viz; Quality, Safety and convenience. For the customer satisfaction these are three aspect can be lead the environmental forces.

.

According to the production concept company try to give more production on low cost and well distribution to make sufficient supply in the market and fulfill the desire of customer with more satisfaction.

The company have to focused on the distribution channel for a good supply to lead the shortages of product in the market.HPCL also providing the customer services related to customer safety.

i -100000/- compensation in the case of demise ii- 25000/- towards loss of properties iii- 15 lak towards medical expenses

QUESTION-2HPCL have undertaken customer satisfaction survey to identify customer expectation and complaints. What are the other ways to measure and track customer satisfaction ?   

ANSWER-HPCL have undertaken customer satisfaction survey to identify customer expectation and complaints

1-SAFETY-company is very sensitive on the basis of view of safty.

It will be provide compensation in the term of unwanted accident.

2-EASY FOR USE- it is very easy to use .very less chances of dangerous. its already check .

3-QUALITY- the cylinder have proper & perfect weight. It is very pure & refined. It is highly inflammable.

4-DELIVERY-time to time delivery after booking. Good response of company.

.

5-CONNECTION- to making new connection process is too easy & very short process.

6-RESPONS-the response of company should be very good in the term of safety , delivery, distribution. 

7-INFORMATION-whatever is information compulsory for customer like related to price ; offer, discount, services will be provided by company time to time

COMPLAINTS 

1-DELAY IN DELIVERY- generally delivery facility is not so good .it always get delay in delivery. Home delivery gets always late.

2-BOOKING- customer have to face many problems when they are going to booking like: always busy line provided online facility not working properly.

3-CONNECTION- Customer have to be in waiting line due to the new connection for a long time.

4-BLACK DELIVERY- In the market there are a lot of agent who take the cylinder from gas agency. Due to shortage of cylinder they sell it on a higher price.

5-SHORTAGE- Some time, customer have to face the shortage of cylinder in the market .it is very big problem in the city area .

6-RESPONSE- Response of worker are not good in the agency at the time of booking, delivery.

7-FUTURE- The future of company is too bright .company’s facility will be very improving and satisfactive in the coming day.

8-TECHNICAL PROBLEM- some time we get delivery and bottle is also sealed but it not going to check at the time of refilling, reason cylinder get lekage

MEASURE OF CUSTOMER SATISFACTION

1-QUALITY- All customer aspect about a good quality .weight of cylinder should be proper and perfect .it should be sealed at the time of delivery. The bottle of LPG should not be damage at the time of delivery.

2- SAFETY- tap of cylinders should be fully sealed by plastic or aluminum. And packed by good metal. Company should be providing compensation in the term of demise, insurance, medical claim facility, insurance policy for the consumer.

3-DELIVERY- delivery of cylinder should be 24 hour and delivered within 24 hour with fully check. Every day of week should be working day.

4- RESPONS- company must be take the responsibility of his product. All the employs, managers behave should be politely with customer. In any possibility of unwanted condition they should take action immediately when they get inform

.

5-DISTRIBUTION- for the good supply distribution channel should be effecting, good transport facility.

6-INTERNET, SMS BOOKING- These are time saving facility ,that should be provided, door to door booking would very effecting in rural area.

7-NEW CONNECTION-new connection or reconnection process must be easy. Company should provide installment facility for lower profile family.

8-INTRODUCE CYLINDER- At present, company should providing 5kg,10kg bottle who have not afford to pay more.

.

9-RURAL MARKET- HPCL should concentrate on rural area .they should plane something new &suitable for rural

10-.UNDER GROUND CONNECTION- Company should provide pipe line LPG under ground facility. It will save a lot of money ,time

11-TRAIN TO CUSTOMER- how to save fuel .how to use cylinder according to safety.  

THANK YOU