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CHAPTER1

INTRODUCTION

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1.1GENERAL INTRODUCTION

An organization is a social arrangement which pursues collective goals, which controls its

own performance and which has a boundary separating it from its environment.

Organization is the association formed by a group of people who see that there are benefits

available from working together towards some common goal.

Organizational studies are the study of individual and group dynamics in an organizational

setting, as well as the nature of organization themselves. Whenever people interact in

organizations many factors come into play. Organizational studies attempt to understand and

model these factors. Organizational study is essential to any MBA graduate as it help them

to connect theory with practice.

Organizational study refers to the study of organization as a whole and getting adequate

knowledge with various departments in the organization. The study is based on the different

aspects and dimensions of different departments of the company. The study provides an

insight into various management styles, various types of communication used within an

organization, work ethics, cultural diversity, types of technology used and also politics,

because no organization can work in the complete isolation as they are living in a global

village.

Organizational studies involve careful study about how people inside the organization

interact with one another and how they can be made better to communicate their concerns.

There are many factors that come into play when people interact with each other not just as

individuals but as a team as well. The study was carried out at Hindustan Petroleum

Corporation Ltd, Ernakulam.

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Brief about HPCL

HPCL is a Government of India Enterprise with a Navratna Status, and a Fortune 500 and

Forbes 2000 company, with an annual turnover of Rs. 1,90,048 Crores and sales/income

from operations of Rs 2,15,675 Crores(US$ 39.726 Billions) during Fianancial Year 2012-13

having about 20% Marketing share in India among Public Sector Undertakings and a strong

market infrastructure. HPCL's Crude Thruput and Market Sales (including exports) are 15.78

Million Metric Tonnes (MMT) and 30.32 MMT respectively in the same period.

HPCL operates 2 major refineries producing a wide variety of petroleum fuels & specialties,

one in Mumbai (West Coast) of 6.5Million Metric Tonnes Per Annum(MMTPA) capacity

and the other in Vishakhapatnam, (East Coast) with a capacity of 8.3 MMTPA. HPCL holds

an equity stake of 16.95% in Mangalore Refinery & Petrochemicals Limited, a state-of-the-

art refinery at Mangalore with a capacity of 15 MMTPA. In addition, HPCL has constructed

a 9 MMTPA refinery at Bathinda, in Punjab, with Mittal Energy Investments Pvt. Ltd.

HPCL also owns and operates the largest Lube Refinery in the India producing Lube Base

Oils of international standards, with a capacity of 335 TMT. This Lube Refinery accounts for

over 40% of the India's total Lube Base Oil production.

HPCL's vast marketing network consists of 13 Zonal offices in major cities and 101 Regional

Offices facilitated by a Supply & Distribution infrastructure comprising Terminals, Pipeline

networks, Aviation Service Stations, LPG Bottling Plants, Inland Relay Depots & Retail

Outlets, Lube and LPG Distributorships. HPCL, over the years, has moved from strength to

strength on all fronts. The refining capacity steadily increased from 5.5 MMTPA in 1984/85

to 14.8 MMTPA presently. On the financial front, the turnover has grown from Rs. 2687

Crores in 1984-85 to an impressive Rs 1,69,011 Crores in Financial Year 2011-12.

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1.2 INDUSTRY PROFILE

INTRODUCTION

HPCL, a Government of India undertaking and a Fortune 500 company, is one of the major

integrated oil refining and marketing companies in India. It is a Mega Public Sector

Undertaking (PSU) withNavaratna status.

HPCL accounts for about 20% of the market share and about 10% of the nation's refining

capacity with two coastal refineries, one at Mumbai (West Coast) having a capacity of 6.5

Million Metric Tonnes Per Annum (MMTPA) and the other in Vishakhapatnam (East Coast)

with a capacity of 8.3 MMTPA. HPCL also holds an equity stake of 16.95% in Mangalore

Refinery & Petrochemicals Limited (MRPL), a state-of-the-art refinery at Mangalore with a

capacity of 9 MMTPA. In addition, HPCL, in collaboration with M/s Mittal Energy

Investment Pvt. Ltd. has set up a 9 MMTPA refinery at Bathinda, in the state of Punjab, as a

Joint Venture.

HPCL owns the country's largest Lube Refinery with a capacity of 335,000 Metric Tonnes

which amounts to 40% of the national capacity of Lube Oil production. HPCL has given

India a firm ground in this sector with its world class standard of Lube Base Oils. Presently

HPCL produces over 300+ grades of Lubes, Specialities and Greases.

HPCL has earned "Excellent" performance for fifteen Consecutive years upto 2005-06, since

signing of the first MOU with the Ministry of Petroleum & Natural Gas. HPCL won the

prestigious MOU Award for the year 2007-08 for Excellent Overall Performance, and for

being one of the Top Ten Public Sector Enterprises who fall under the 'Excellent' category.

HPCL's performance for the year 2010-11 also qualifies for "Excellent" rating.

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HPCL, over the years, has moved from strength to strength on all fronts. The refining thruput

has increased three fold between 1984/85 to 2007/08, rising from 4.47 MMTPA in 1984/85

to 16.19 MMTPA (2011-12). Consistent excellent performance has been made possible by

highly motivated workforce of over 11,226 employees working all over India at its various

refining and marketing locations.

HPCL continually invests in innovative technologies to enhance the effectiveness of

employees and bring qualitative changes in service. Business Process Re-Engineering

exercise, creation of Strategic Business Units, ERP implementation, Organizational

Transformation, Balanced Score Card, Competency Mapping, benchmarking of refineries

and terminals for product specifications, ISO certification of Refineries and Supply Chain

Management are some of the Initiatives that broke new grounds.

HPCL has successfully integrated Information Technology in its activities at different levels.

The Enterprise Resource Planning (ERP) system is now operational on J.D.Edwards, an

Oracle product, across the Corporation.

The strengthening of the marketing network over the years has lead to dominance in the

market reflected in its growth and leading to best quality of service.

HPCL was one of the first companies to understand the nation's energy requirements and

take necessary measures to fulfill the expectations. Its increasing infrastructure facilities are

due to the successful realization of set targets and sustained quality of Service and customer

relations.

GLOBAL SCENARIO

HPCL is a Fortune Global 500 company as per the ranking of 2013 and was ranked at

position 260. HPCL was featured on theForbes Global 2000 list for 2013 at position 1217.

Hindustan Petroleum Corporation Limited is committed to continue rendering support to the

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Global Compact programme of the United Nations and will Endeavour to abide by the ten

Principles of the programme, some of which are a part of HPCL Vision and Mission

Statements. Therefore, the company continues to pledge support to the programme through

its policies, processes, products and services.

INDIAN SCENARIO

HPCL is the 10th most valuable brand in India according to an annual survey conducted

byBrand Finance and The Economic Times in 2010.

HPCLs commitment to the development of weaker sections of society is over 2 decades old.

Lately, it has upgraded its activities to cover a larger section of the society. HPCL draws its

strength from its Vision and Mission statements, to support the downtrodden, needy and

marginalized citizens and create social infrastructure for their sustenance. Under CSR,

HPCL has undertaken projects under 5 different themes: They are:

Child Care

o Child Rights - "Bal Haq"

o Care of Slum Children - "Muskan"

o Rescue of Children in destress- "Child Line"

Education

o Computer awareness- "Unnati"

o Girl Child - Nanhi Kali

o Children with special needs- ADAPT

o

Mid-Day Meals for Govt. schools- Akshaya Patra

Health Care

o Medical facilities at Rehabilitation centres- Navjyot

o Awareness on HIV among truckers -"Suraksha"

o Medical Care in Rural Areas -Wockhardt

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o Sushrut Hospital

Livelihood

o Skill Development - "Swavalamban"

o Employability for youth in Urban Slums -Smile

Community Development

o Rain water harvesting -"Jal-tarang"

o Solar lighting- LaBL

o Community Kitchen -"Rasoi Ghar"

The CSR (Corporate Social Responsibility) programs undertaken at the field level, focused

on the backward communities are completely employee driven. The field personnel identify

the needs of the community in the periphery of their function / location. Plans are then drawn

in consultation with Local Government authorities and projects / schemes are implemented to

bridge the need gaps of these communities. These projects create a very strong bond between

the community and the local setup where HPCL has its business operations

The oil industry of India can be broadly classified into two major streams.

Upstream:

This stream is dominated by the firms which deal in exploration and production of petro

chemical products. Firm engaged in the exploration of the fields do not undertake the

refining of the crude oil as their main area of business. They explore and become the

provider of the crude oil to the refining units located inside the country and outside as well.

Downstream:

This stream includes firm which undertake the refining of the crude oil and marketing the

final products. They get their raw material from the firms engaged in the exploration of the

crude oil.

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Awards

The Corporations commitment to excellence has won several national awards and accolades

for outstanding performance in the field of Safety and Environment.

Mumbai Refinery

Mumbai Refinery has won the following Safety & Environment awards:

Refinery has been conferred with "GREENTECH AWARD" for the year 2008

under the 'Environmental Excellence' category by Greentech Foundation, New Delhi.

Refinery has been conferred with GOLDEN PEACOCK AWARD for the year

2007 for excellence in Environmental Management Systems by World Environment

Foundation (WEF) & Institute of Directors (IOD), New Delhi.

Visakh Refinery

Visakh Refinery has won the following Safety & Environment awards:

Conferred with "SILVER GREENTECH AWARD" for the year 2007 under the

'Environmental Excellence' category by Greentech Foundation, New Delhi.

Jawaharlal Nehru Centenary Award, instituted by Ministry of Petroleum and Natural

Gas for Improvement in Specific Energy Consumption was bagged by the refinery.

Energy Conservation in Petroleum Refining Sector for the year 2007 by Center for

High Technology New Delhi.

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Marketing Loctions:

The Marketing Locations have won the following Safety & Environment awards:

Oil Industry Safety Directorate Award - 2006-07 for SBU of LPG and Lubes

operations.

Jawaharlal Nehru Centenary Award, instituted by Ministry of Petroleum and Natural

Gas for Improvement in Specific Energy Consumption was bagged by the refinery.

nergy Conservation in Petroleum Refining Sector for the year 2007 by Center for

High Technology New Delhi.

Greentech Environment Excellence Gold Award 2007 for Hasan Terminal .

Golden Peacock Award 2007 for Excellence in Occupational Health and Safety

Management for Mangalore Terminal.

National Safety Award -2006 for Budge Terminal.

Silver Green Tech Safety Award -2007 for Salawas depot and Sanganer.

Green Tech Safety Award 2007 for Loni, Nasik , Raipur Jatni , Hazaribagh and Patna

LPG Plants.

Safety Innovation Award 2007 from Institution Of Engineers (India)for Palam ASF.

Safety Innovation Award 2007 from Institution Of Engineers(India)for Santacruz

ASF.

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Environment Excellence Gold Award 2007 from Greentech Foundation for Palam

ASF.

Golden Peacock Innovation Award 2007 from Institution of Directors for Chennai

ASF.

Environment Excellence Silver Award 2007 from Greentech Foundationfor Santacruz

ASF.

According to the reports of consumption and production from petroleum and planning cell,

the production and the consumption of the petroleum products has increased more. It can be

noticed that the consumption rate is higher than the production rate of the petroleum

products.

PRESENT SCENARIO

HPCL maintains high standards of safety, health and environmental care at all its operating

locations, always ensuring that increasing scales of operation have no negative impact on the

standards of safety, health and environment and without losing sight of its long term goal of

zero occupational injuries, operational incidents and environmental releases.

HPCL is committed to conducting business with a strong focus on preserving the

environment, sustainable development, safe work place and enrichment of the quality of life

of employees, customers and the community. Established systems and procedures are

constantly revised for continual improvement to achieve the higher standards of safety,

occupational health and environment protection.

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Health: HPCL has well equipped health care facilities / arrangements at all major locations.

Occupational Health is focus area for HPCL and all issues pertaining to occupational health

are addressed comprehensively

Safety:HPCL has made significant improvements in its safety performance over the years.

The safety management systems of both the refineries are being audited continually by

M/s. DNV, in line with their International Safety Rating System (ISRS). Mumbai Refinery &

Visakh Refinery has already been upgraded from level 6 to level 8.

Environment: Emissions of pollutants in the refineries like SO2 have been drastically

reduced from 60 TPD in 1984 to less than 25 TPD now, in spite of capacity increase from 4.5

MMTPA to 13 MMTPA and addition of various secondary processing and lube producing

facilities.

HPCL had pioneered Eco-friendly technologies such as changeover from Phenol to NMP

solvent in three lube extraction units and changeover from Oleum to NMP in the Hexane

Treating Plant, which were widely appreciated.

Diesel Desulphurisation facilities are fully operational in both the Refineries to reduce the

sulphur in diesel from 1.0% to less than 0.05 %, to conform to BIS 2000/Euro II norms.

HPCL has undertaken projects worth about Rs. 2750 Crore for its green fuels project in its

Refineries for de-bottlenecking and process up gradation for the production of Euro III diesel

and petrol, to be in line with the national policy to implement Euro III and Euro IV norms for

fuel quality. These Projects are in an advanced stage of completion.

Both refineries have taken initiatives for treating the crude tank sludge, in environmental

friendly manner using in situ BALCO Technology of M/s Balmer and Lawrie & Co. Ltd .

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Over 75% of the petroleum products from the Refineries are being evacuated through

pipelines. Dependence on road transport for evacuation of products has been reduced

drastically, resulting in considerable reduction in auto emissions to atmosphere.

Waste Management: In line with the hazardous Waste Management rules, different

hazardous waste like spent catalysts, oily silt, non oily insulations etc. are being disposed off

to Treatment, Storage & Disposal Facilities approved by Pollution Control Board. In order to

comply with the future proposed liquid effluent norms, replacement of existing ETP-I &

ETP-II with new integrated ETP by adopting Cyclic activated Sludge treatment followed by

Membrane Bio-Reactor and TTP has been approved and work placement is in progress at

Mumbai Refinery.

Ambient Air quality is being monitored round the clock and maintained as per National

Ambient Air Quality Standard.

On line Monitoring of pollutants like CO, NOx, HC, SO2, SPM from all the stacks are being

carried out.

The Environment Management System of both the Refineries, have been re-audited and

awarded accreditation under ISO-14001 revised standards.

Marketing Locations:All the 44 LPG Plants are certified with ISO 9001:2000, 38 plants

with ISO 14001 and 21 plants are OHSAS: 18001 certified.

68 POL locations (as of 2008) are certified with ISO 9001, 32 locations with ISO 14001 and

12 locations with ISRS and 3 locations with OHSAS 18001.

Extensive green coverage has been provided in and around the refineries, marketing

installations and housing colonies.

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1.3 COMPANY PROFILE

INTRODUCTION

Hindustan Petroleum Corporation Limited (HPCL) is a Government Company within the

meaning of Section 617 of the Companies Act 1956. The Registered Office of the

Corporation is at Petroleum House, 17 Jamshedji Tata Road, Churchgate, Mumbai 400020.

HPCL is an amalgamation of the erstwhile foreign oil companies ESSO and Caltex, which

were taken over by the Government of India in 1974 and 1976 respectively.

HPCL is a Central Public Sector Undertaking, with a subscribed capital of Rs. 339.33 Crores.The President of India is presently holding 51.01 % of the paid share capital, the remaining

shares being held by various Financial Institutions, FIIs, Banks, Mutual Funds, NRIs and

general public including employees of the Corporation. The shares are listed on BSE / NSE

and are actively traded.

HPCL is one of the largest integrated Public Sector Undertaking, engaged in the business of

refining Crude Oil and marketing of various petroleum products like Petrol, Diesel, LPG,

Kersoene, Lube Oils, Asphalt, branded products like Power, Turbojet, naphtha, ATF

(Aviation Turbine Fuel) throughout India and at select foreign countries. Some of these

products are exported to other countries.

HPCL owns and operates two refineries situated at Mumbai and Visakhapatnam. HPCL has

focused on its business throughout India by segmenting its business outlook into Retail

(Petrol Pumps), LPG, Industries & Commercial (Bulk Fuels supplies to industries, ships),

Lubes, Aviation, Refineries etc, with support from the shared services like Finance,

Company Secretary, Human Resources, Public Relations, Legal etc.

HPCL has 7 Retail and 6 LPG Zonal offices at major Cities, in addition to 90 Regional

Offices, 37 major Terminals / Installations / Tap Off Points and an elaborate Pan India

Infrastructure network comprising Lube Blending Plants, Depots, LPG Bottling Plants, LPG

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Import Facilities, Petrol Pumps, Compressed Natural Gas outlets, Auto LPG Pumps, HP Gas

LPG Distributors, Superior Kerosene Oil/ Light Diesel Oil Distributors, Lube Carrying and

Forwarding Agents, Aviations Service Facilities (ASF) etc.

HISTORY

HPCL was incorporated in 1974 after the takeover and merger of Erstwhile Esso Standard

and Lube India Limited by theEsso (Aquisition of Undertakings in India) Act 1974.Caltex

Oil Refining (India)Ltd.- CORIL was taken over by Govt. of India. in 1976 and merged with

HPCL in 1978 by the CORIL-HPCL Amalgamation Order, 1978.Kosan Gas Company was

merged with HPCL in 1979 by theKosangas Company Aquisition Act, 1979.

In 2003, following a petition by theCentre for Public Interest Litigation (CPIL), theSupreme

Court of India restrained the Central government from privatizing Hindustan Petroleum and

Bharat Petroleum without the approval of Parliament. As counsel for the CPIL, Rajinder

Sachar andPrashant Bhushan said that the only way to disinvest in the companies would be

to repeal or amend the Acts by which they were nationalized in the 1970s. As a result, the

government would need a majority in both houses to push through any privatization

HPCL has been steadily growing over the years. The refining capacity steadily increased

from 5.5 million metric tonnes in 1984/85 to 14.80 million metric tonnes (MMT) as of March

2013. On the financial front, the Net income form Sales/operations grew from IN 2687

crores in 1984-85 to IN 2,06,529 Crores in Financial year 2012-13. During Financial Year

2012-13, its net profit was IN 904 Crores.

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MANAGEMENT

HPCL is managed by aBoard of Directors.The Board of Directors consists of a maximum of

15 Directors, incuding the Chairman & Managing Director. The Chairman and Managing

Director is the head of the Corporation. The Board comprises of Wholetime Directors also

called Functional Directors Director Marketing, Director Refineries, Director Human

Resources, Director Finance. In addition, part time Directors representing Government of

India, through Ministry of Petroleum & Natural Gas, and part time Independent Directors,

also called Navratna Directors are on the Board. All these Directors are nominated by the

Government of India. The Board of Directors is assisted by Executive Directors, General

Managers and other Officers / employees in carrying out the day-to-day functions of the

Corporation

Nature of business

HPCL deals with the product and services like Refineries, Aviation, Bulkfuels and

specialities, International trade, LPG- Hp gas Lubes- Hp lubes, Retail, Exploration and

production, Joint ventures, Alternate energy. HPCL is concerned with refining and marketing

of petroleum products.

Powers and Duties of Officers & Workmen

The power and duties of the officers and workmen of the Corporation are derived mainly

from the provisions of the Company Act 1956, the Memorandum & Articles of Association

of the Corporation, and the various manuals specifying the area of operation of individuals,

basis the job description, terms and conditions of appointment, and the delegation of the

authorities as specified.

HPCL is a commercial organization and the officers and workmen are appointed to carry out

the business operations of the Corporation, in line with the objectives set forth in the

Memorandum of the Association of the Corporation and the cocreated vision statement.

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While discharging the assigned duties, all employees are required to comply with the

applicable provisions of statutes and rules and regulations in force, including the manualised

instructions.

Decision Making Process

The apex level decision making authority is the Board of Directors of HPCL, except for

matters which, as per the Companies Act 1956 are to be decided by the shareholders in the

Annual General Body Meeting. The Board has constituted several sub committees, such as

Committee of Functional Directors (CFD), the Audit Committee, the Investment Committee,

the HR Committee, the Investor Grievance Committee, etc. The meetings of these

committees are convened on need basis and the minutes of these meetings are placed for

information of the Board. Majority of the members of the Committees except the CFD are

independent Non-Executive of Government nominated directors with the whole time

directors playing a facilitating role.

The Corporation has constituted an Executive Council comprising of C&MD, the Functional

Directors and the Business Unit Heads. This Council discusses important issues concerning

the organization, analyse the same and recommend the way forward in respect of matters

discussed. The emphasis laid by this council is on team approach, mutual support offunctions and joint deliberations on issues which has enhanced further the decision making

process. It has thus facilitated an integrated thinking process and an aligned approach across

the Corporation for achieving the Corporate Vision.

Exercise of Authority:

The Corporation has well documented Limits of Authority Manual, Purchase Manual, Chart

of Accounts, etc, facilitating the decision making process at various levels within the

organization.

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Limits of Authority Manual:

Limits of Authority Manual lays down the authorities that can be exercised at various levels,

i.e. the Board, Committee of Functional Directors, the Executive Committee, the Contracts

Committee, the Bids Committee and also the senior individual positions, etc. for different

activities of the Corporation. The manual is divided into segments representing different

functions like Sales, Crude & Shipping, Capital Projects, Operations & Distribution, Finance,

HR etc., and provides for a decision making process through various committees as above,

represented by inter-functional groups including Finance. This ensures a transparent and

streamlined decision making process adhering to the laid down systems and procedures and

thereby leaving no room for arbitrariness.

The Committee of Functional Directors has delegated further powers to various sub-

committees within the organization, viz., Contracts Committee, Bids Committee, Credit

Committee etc.

Purchase Manual:

This manual lays down elaborate procedures to be followed while undertaking purchases and

in finalization of contracts. It lays down, inter alia, the purchasing authorities at various

levels, norms and process for procurement.

The norms set for discharge of functions

The entire organizational functioning is basis the down delegation of authority at appropriate

levels and measures to the individual officers. Several documented manualised instructions

have been developed and approved by the Board of Directors, for the discharge of functions

by the officers of the organization.

Further guidelines issued by the Government of India, through the applicable departments,

and Central Vigilance Commission, Central Information Commission from time to time are

also followed. The guidelines issued by SEBI, Central Vigilance Commission, Stock

Exchange listing agreements also aid in the discharge of the functions. Particulars of

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arrangement for consultation with the members of the public in relation to the formulation of

policy or implementation thereof:

HPCL is a commercial organisation engaged in the refining of crude oil and marketing of

finished products and allied products and does not have formal arrangement or committee

wherein public can attend to formulate policies in the area of activity of HPCL.

However, HPCL do have mechanism of collecting feedback from customers / public for

upgrading the service levels to improve the customer satisfaction.

Infrastructure

HPCL's infrastructure is at par with that of the best global corporations in the hydrocarbons

sector. For over a quarter century now, HPCL has been consistently breaking new grounds in

production and marketing.

Operations

HPCL operates two major refineries producing a wide variety of petroleum fuels &

specialties, one in Mumbai (West Coast) of 6.5 Million Metric Tonnes Per Annum

(MMTPA) capacity and the other in Vishakapatnam, (East Coast) with a capacity of 8.3

MMTPA. HPCL holds an equity stake of 16.95% in Mangalore Refinery & Petrochemicals

Limited (MRPL), a state-of-the-art refinery at Mangalore with a capacity of 9 MMTPA.

Another Refinery of 9 MMTPA, set up inBathinda,Punjab byHMEL,a Joint Venture with

Mittal Energy Investments Pte.Ltd. HMEL has commenced commercial operations. HPCL

has signed a MOU with Government of Rajasthan for setting up a Refinery near Barmer in

Rajasthan.

HPCL also owns and operates the largest Lube Refinery in India producing Lube Base Oils

of international standards, with a capacity of 335 TMT. This Lube Refinery accounts for over

40% of India's total Lube Base Oil production. Presently HPCL produces over 300+ grades

of Lubes, Specialities and Greases.

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The marketing network of HPCL consists of 13 Zonal offices in major cities and 101

Regional office facilitated by a Supply & Distribution infrastructure comprising Terminals,

Aviation Service Facilities, LPG Bottling Plants, Lube filling plants, Inland Relay Depots,

Retail Outlets (Petrol Pumps) and LPG & Lube Distributorships. HPCL has state of art

information technology infrastructure to support its core business. The data center is located

at Hitech city in Hyderabad.

Joint Ventures

HPCL-Mittal Energy Ltd.(HMEL)

The refinery is designed to process Arab Heavy Crude with flexibility to process other heavy

/ sour / acidic crudes. The configuration of the refinery includes primary units and secondary

process units viz. CDU/VDU, VGO-HDT, FCC, NCU/ISOM, HGU, DHDT, SRU, DCU and

Polypropylene manufacturing facilities. Other facilities include utilities such as CPP, Steam

generation, Effluent Treatment plant, product storage etc. Facilities include refinery units, a

pipeline from Mundra to Bathinda, crude oil receiving terminal, SPM and jetty at Mundra

port.

HPCL Biofuels Limited (HBL)

In line with Governments policy for blending of Ethanol, a new wholly owned subsidiary

company HPCL Biofuels Limited (HBL) was incorporated on October 16, 2009 to produce

Ethanol for blending into Petrol. HBL has set up Ethanol plants for blending into petroleum

fuels, through installation of integrated Sugar plant (3500 TCPD capacity), Ethanol plant (60

KLPD capacity) & Co-Gen power plant (20 MW capacity), one each at Sugauli in East

Champaran District and Lauriya in West Champaran District of the State of Bihar.

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CREDA-HPCL Biofuel Limited (CHBL)

CREDA-HPCL Biofuel Limited is a Subsidiary company of Hindustan Petroleum

Corporation Limited (HPCL), with Chhattisgarh State Renewable Energy Development

Agency (CREDA) for the plantation of jatropha in the State of Chhattisgarh. CHBL was

incorporated on 14th October 2008. Jatropha seeds are used for the production of bio-diesel

as viable renewable source of energy. The Companys objective is to carry out jatropha

planatation on 15,000 hectares of land leased to HPCL by the Govt. of Chhattisgarh. HPCL

holds 74%, and CREDA holds 26% shareholding in CHBL.

Hindustan Colas (HINCOL)

Joint Venture promoted with M/s COLAS SA, France. Incorporated on July 17, 1995.

Manufactures International quality value-added bituminous products such as bitumen

emulsions & cutbacks and modified bitumen. The products of HINCOL are widely used by

agencies associated with road construction.

Prize Petroleum Company Limited

HPCL, in partnership with ICICI and HDFC, had formed this Joint Venture E & P Company

for participating in exploration and production of hydrocarbons. Prize Petroleum Company

Ltd (PPCL) was incorporated on October 28, 1998. PPCL is also providing consultancy

services related to E & P. It has since become a 100% subsidiary E&P unit of HPCL.

South Asia LPG Co Pvt. Ltd. ( SALPG)

Joint Venture with Total Gas and Power India (a wholly owned subsidiary of Total of

France) with HPCL's equity participation of 50% was incorporated on November 16, 1999.

First of its kind in India, the underground SALPG Cavern facility for storing LPG was

commissioned in December, 2007 and formally inaugurated by the Minister of Petroleum &

Natural Gas on 14th January, 2008. Setup at the cost of Rs.333.30 crores,the Cavern Marine

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Terminal has a 60,000 MT capacity underground LPG storage Cavern and associated

receiving & despatch facilities at Visakhapatnam. The SALPG Cavern is the largest LPG

storage facility in South Asia with the lowest point 192 M below the Mean Sea Level (MSL)

ranking among the deepest Caverns in the World. SALPG has obtained IMS certification

from DNV for ISO 9001, ISO 14001, and OHSAS 18001.

Bhagyanagar Gas Limited (BGL)

Joint Venture with GAIL for distribution and marketing of environmental friendly fuels

(green fuels) viz. CNG and Auto LPG for use in the transportation, domestic, commercial

and industrial sectors, in the state of Andhra Pradesh. Incorporated on August 22, 2003.

Aavantika Gas Limited

Incorporated on June 07, 2006, is is a Joint Venture Company with GAIL for distribution and

marketing of environmental friendly fuels (green fuels) viz. CNG and Auto LPG for use in

the transportation, domestic, commercial and industrial sectors, in the State of Madhya

Pradesh.

Petronet India Limited (PIL)

Joint Venture formed in May 1997. PIL, with different oil companies, implement individual

pipeline projects-like Petronet MHB, through Special Purpose Vehicles (SPVs). Since oil

companies are now having pipelines independently, PIL has initiated action to disinvest its

equity holding in individual Joint Ventures.

Petronet MHB Limited (PMHBL)

Promoted (PMHBL) with Petronet India Limited (PIL) for the construction and operation of

Mangalore - Hassan - Bangalore product pipeline. Meets fuel transportation needs between

Mangalore, Hassan and Bangalore. Executed at a cost of Rs. 667 crores.

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Mangalore Refineries and Petrochemicals Limited (MRPL)

Commissioned in March 1996 with a Refinery capacity of 3 MMTPA . HPCL and MRPL

have been exchanging intermediate process streams between their refineries to supplement

efforts to meet new environmental norms in respect of products like MS and HSD on

mutually agreed terms.

Rajiv Gandhi Institute of Petroleum Technology (RGIPT)

The Rajiv Gandhi Institute of Petroleum Technology (RGIPT), an Institute of national

importance, was set up at Jais, Dist. Rae Bareli, Uttar Pradesh through an Act of Parliament.

RGIPT is co-promoted as an energy domain specific institute by six leading Oil Public Sector

Units (ONGC, IOCL, OIL, GAIL, BPCL and HPCL) in association with the Oil Industry

Development Board (OIDB). The Institute is empowered to award degrees in its own right.

The Institute associates with leading International Universities / Institutions specializing in

the domain of Petroleum Technology.

Sushrut Hospital and Research Centre

SUSHRUT HOSPITAL is an exclusive effort of the Chembur Hospital Project Trust - a joint

venture promoted by likeminded Organizations, both from the Public and Private Sectors.

Since its inception in 2000 Sushrut Hospital and Research Centre has an outstanding

reputation for providing the highest quality health care services at a reasonable cost. Sushrut

Hospital and Research Centre endeavors to provide medical treatment that is safe, ethical and

affordable.

It is a five storeyed Multi Speciality Hospital with a large basement and is strategically

located at Swastik Park in Chembur, Mumbai. The Hospital offers comprehensive medical

and surgical care by renowned doctors and experienced staff using state-of-the-art

technology. Sushrut also offers specialized care in Oncology, Nephrology, Trauma and

Burns.

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MAJOR ONGOING PROJECTS

o New Refinery near Barmer in Rajastan

o

Rewari Kanpur Pipeline (RKPL)

o Diesel Hydro Treating(DHT) at Mumbai & Visakhapatnam Refineries.

o Rajiv Gandhi Institute of Petroleum Technology.

Profile in brief

Type : Public

Industry : Oil & Gas

Founded : 1974

Headquarters : Mumbai

Owners : Govt. of India

Revenue : US $34.44 billion

MISSION

HPCL, along with its joint ventures, will be a fully integrated company in the hydrocarbons

sector of exploration and production, refining and marketing; focusing on enhancement of

productivity, quality and profitability; caring for customers and employees; caring for

environment protection and cultural heritage.

It will also attain scale dimensions by diversifying into other energy related fields and by

taking up transnational operations

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VISION

To be a World Class Energy Company known for caring and delighting the customers with

high quality products and innovative services across domestic and international markets with

aggressive growth and delivering superior financial performance. The Company is a model

of excellence in meeting social commitment, environment, health and safety norms and in

employee welfare and relations.

IMPORTANCE OF LOCATION

HPCLs location has a great importance as it is located in Cochin City. The Raw Crude Oil

has been received directly at Cochin Port as it is a harbour city, so the availability of Raw

Material becomes easier. Facility to purchase of Crude Oil from Cochin Refinery through

Pipe Lines is another advanatage of the location. Shifting of raw material through Bullets are

expensive as compared to pipe line transfers.

BUSINESS MANTHRA

Hindustan Petroleum" slogan

"Future full of Energy"

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COMPETITORS

The main Competitors are :

BPCL (Bharath Petroleum Corporation Ltd)

IOCL (Indian Oil Corporation Ltd)

RELIANCE PETROLEUM LTD.

ESSAR OIL

CALS REFINERIES LTD

BONGAIGON REFINERY & PETROCHEMICALS LTD. (Merged)

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1.4 ORGANISATIONAL CHART

-

MD - Managing Director

GMGeneral Manager

DGMDeputy General Manager

CHAIRMAN & MD

DIRECTOR

MARKETING

DIRECTOR

FINANCE

DIRECTOR

HR

DIRECTOR

REFINERY

INDEPENDENT

DIRECTOR

EXECUTIVE

DIRECTOR

RETAIL

EXECUTIVE

DIRECTOR

DIRECT SALES

EXECUTIVE

DIRECTOR

LPG

EXECUTIVE

DIRECTOR

PIPE LINE

EXECUTIVE

DIRECTOR

AVIATION

GM

WEST

ZONE

GM

NORTH

ZONE

GM

EAST

ZONE

GM

SOUTH

ZONE

GM

NORTH

CENTRAL

GM

NORTH

WEST

GM

SOUTH

CENTRAL

DGMRETAIL

ENGINEERING

DGMOPERATION &

DISTRIBUTION

CHIEFMANAGER

MARKETING

SENIORREGIOAL

MANAGER

DGMFINANCE

DGMLEGAL

SALES

OFFICER

RETAIL

ENGINEERING

MARKETING

MANAGER

MANAGER

FINANCE

OFFICER

SALES/MIS

MOBILE

LABORATORY

LEGAL

VIGILE

NCEHR

OFFICER

RETAIL

ENGINEERING

ASSISTANT

MANAGERSASSISTANT

MANAGERS

CLERK

CLERK

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1.5 PRODUCT PROFILE

1.

Petrol: Known as Motor Spirit (MS) in Oil Industry. HPCL markets the productthrough its retail pumps spread all over India. Its principle consumers are regular

personal vehicle owners.

2. Diesel: Known as Heavy Stock Diesel (HSD) in Oil Industry. HPCL markets the

products through its retail pumps as well as terminals and depots. Its consumers are

not only regular auto owners but also transport agencies, industries etc.

3. Lubricants: Riding on its brandHP Lubes,HPCL is the market leader in lubricant

and associated products. It commands over 30% of market share in this sector. The

popular brands of HP lubes are Laal Ghoda, Milcy, Thanda Raja, Koolgard,Racer4,

etc.

4. LPG:HPGAS,The HPCL brand of LPG is a popular brand across India for domestic

and industrial uses.

5. Aviation Turbine Fuel With major ASF(Air Service Facility) present in all major

airports of India. HPCL is a key player in this sector supplying ATF to major airlines.

It has an accomplishment of sorts to supply fuel to US Air Force.

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6. Bitumen Low Sulpher

7. Furnace Oil

8. Light Diesel Oil9. Kerosene10.Naphtha Furnace Oil11.Heavy Stock Lubes12.Greases Propylene

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CHAPTER2

OBJECTIVES OF THE STUDY

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2.1 OBJECTIVES OF THE STUDY

Objectives of the study can be broadly classified into two. They are as follows:

PRIMARY OBJECTIVE

SECONDARY OBJECTIVE

Primary Objective:

To study about the departments and its functions in Hindustan Petroleum CorporationLtd.

Secondary Objective:

To understand how the key business processes are carried out in Hindustan Petroleum

Corporation Ltd.

To familiarize with different departments in Hindustan Petroleum Corporation Ltd

(HPCL) and the functions and activities including documentation.

To know about the duties and responsibilities of key personnel.

To study about the overall performance of HPCL.

To understand the growth and diversification strategies of HPCL.

To understand the technology adoption in HPCL for various activities.

To check out whether there is a need for introducing corrective measures in any of the

company strategies.

To understand the performance measurements of the employees and various

employee welfare activities.

To get practical experience regarding the HPCLsfunctioning.

To conduct a SWOT analysis of Hindustan Petroleum Corporation Ltd.

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2.2 Scope of the Study

To get accustomed with the business environment of Hindustan Petroleum

Corporation Ltd.

To understand the structure, function and process of various departments and the

interdependence.

To experience the organizational culture and its real colours.

To know the environmental issues regarding Hindustan Petroleum Corporation Ltd.

To evaluate the real business situation and to know how HPCL cope with its

challenging situations.

To know about the competing business Links.

To familiarize with the innovative technologies adopted by the HPCL.

To familiarize with the training measures given by HPCL to their employees.

Overall practical experience about HPCL and the business world, would enable to

understand the real situation and help the studies easier.

To understand the steps taken to increase the productivity in HPCL.

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CHAPTER3

METHODOLOGY

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3. METHODOLOGY

The methodology of research was to conduct a detailed study of an organization. The main

part of the study includes data collection. The major data collection tools of study were

interviews, searching the websites, reports and brochures that were provided from the

organisation.

1. METHODS OF DATA COLLECTION PRIMARY DATA

SECONDARY DATA.

Primary Data

Primary Data are those data which are collected by the investigator for the first time. It is

fresh in nature and is specially designed to fulfill the requirement of the problem in hand.

For collecting Primary Data the following are conducted:

Interviews

Discussion with Department Heads and Managers

Direct Observation

Secondary Data

As the name indicates, it is the data which is collected by the investigator for the second

priority. It needs less time, money and effort and it includes :

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Annual Reports

Brochures and other quality manuals

Website etc.

II. Period of Study

The period of study covers 30 days, from August 15th

2013 to September 15th

2013 atCochin Regional Office of Hindustan Petroleum Corporation Limited.

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CHAPTER4

DEPARTMENTAL ANALYSIS

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4.1 HR DEPARTMENT

ED - Executive Director

GMGeneral Manager

DGMDeputy General Manager

DIRECTOR (HR)

ED

HRED

EMPLOYEE

RELATION

ED

COMPENSATION

MANAGEMENT

HEAD

HR

MARKETING

GM (HR)

MUMBAI

REFINERY

DGM (HR)

VISHAKPATNAM

REFINERY

HR

NORTH

ZONE

HR

EAST

ZONE

HR

WEST

ZONE

HR

SOUTH

ZONE

HR

NORTH

CENTRAL

HR

SOUTH

CENTRAL

HR

NORTH

WEST

DEPUTYMANAGER

HROFFICERS

COCHINHR

CLERK

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Human Resource is the most important asset of every company. The success and failure of

every company is dependent upon its human resource. It is a fact that the people are vital for

the effective operation of a company as human efforts and minds are the main driving force

behind any organization. Employment of competent and specialized persons a various levels

is one important reasons of their contiuous success. Moreover employment of women at

certain key areas of operations avoid to great unreasonable labour problems. The key factor

in the growth of HPCL is mainly the good and healthy employer-employee relationship.

Objectives

To develop and sustain core values.

To develop business leaders for tomorrow.

To provide job contentment through empowerment, accountability and responsibility.

To build and upgrade competencies through virtual learning, opportunities for growth

and providing challenges in the job.

To foster a climate of creativity, innovation and enthusiasm.

To enhance the quality of life of employees and their family.

To inculcate high understanding of Service to a greater cause HR vision, mission

and objectives.

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HR Strategy

To meet challenging demands of the business environment, focus if the HR strategy is

on change of the employees mindset.

Building quality, culture and resources.

Re-engineering and redeployment for maximizing utilization of human resource

potential.

To Build and upgrade competencies through virtual learning, opportunities for growth

and providing challenges in the job.

Re-strengthening mutual faith, trust and respect.

Developing human resource through virtual learning, providing opportunities for

growth including involvement and exposure to benchmarking in performance.

Role of HR

Alignment of HR vision with corporate vision.

Shift from support group to strategic partner in business operations.

Enhance productivity and performance by developing employee competency and

potential.

Developing professional attitude and approach.

Developing Global managers for tomorrow to ensure the role of gloal player.

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Training & Development

HPCL has a full-fledged Corporate Training Department, to augment the learning and

development requirements of its officers. The specific training needs of individual

employees are identified through Competency Mapping Exercises. The Training Department

interacts with all Business Units/functions to identify and design training programs to cater to

these needs. These programs enable employees to enhance their skills and realize their full

potential.

Objectives

Improve the performance of Employees in their respective assignments

Enhance competencies to take up higher responsibilities

Strengthen the Leadership Pipeline

Bring cultural change from Command & Control to Team based structure

Leverage technology in human resources development

Facilitate learning in the organization and build a Learning Organization

Training Policy

The Training Policy at HPCL provides broad directions to guide the learning solutions and

initiatives.

Management Staff

o Entry level: Samavesh (Induction/ orientation Training) facilitates a new

employee to build a sense of belongingness.

o Supervisory level: Employee is equipped with function specific inputs and

job related technical skills.

o Managerial Level:Employee is exposed with the principles of Management

which will help blend theory with practice, with focus on leadership

development. HPCL has developed Project Akshay" for development of

leadership pipeline.

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o All training initiatives are planned in order to address new needs required by

change in the market scenario.

Non-Management Staff

o Trainings with focus on Safety at locations, Skills relating to job requirement -

(technical, computer operations, team spirit etc.)

Identifying Training Needs

Individual Level:Mainly through recommendation from the Performance Appraisal

System.

Functional / Departmental Level:Customized Training programs are developed for

the departments in consultation with the SBU/Functions.

Organizational Level:Individual Development Plan obtained from the Competency

mapping exercise is used to provide specific Training to bridge the observed the

employee skill gaps.

Other Training Plansfor enhancement of the officers' competencies are scheduled.

Training Plans

In-Company Programs

The In-company programs are conducted through internal faculty, external faculty and

external courses. Focus is given to the development of core internal faculty members, who

will effectively train employees at different levels of the Corporation.

HP Management Development Institute, (HPMDI) Nigdi.

HPCL has a full-fledged, well equipped Training Institute at Nigdi, Pune, standing testimony

to the value that HPCL places on training. Away from distractions, it is the Temple of

learning by virtue of its perfect learning ambience. HPMDI is equipped with the best

infrastructure conducive for effective learning. It is also having adequate recreational

facilities to keep the employees occupied before / after learning hours.

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The faculty is largely drawn from premier institutes or reputed independent training

consultants. They are academicians and professionals who are well versed with the updated

techniques and changing trends in the field of professional training. Tools like Group

discussions, Role plays, case studies, presentations etc are used in the training.

Customized Programs

The training plan for the year for each Business Unit / Function is finalized after mutual

discussions with them. The SBU specific requirements due to the change in market scenario

and thereby required competencies are delved upon. Then suitable Consultants/ practitioners

are identified and customized programs are designed in consultation with line functions.

External Seminars/ Conferences

HPCL nominates officers for external seminars and conferences in connection with their

functional requirements.

Foreign Training

Advanced Management Programs are organized for officers of levels DGM and above, byreputed Business Schools like ASCI- Hyderabad, MDI- Gurgaon, ISB- Hyderabad and IIM-

Kolkata, including visit to select foreign countries. HPCL also sponsors Study Tour for

employee groups to enrich their knowledge and skills, a few employee groups for select

foreign training to enrich their knowledge and skills, in the form of select foreign training.

E-Learning

Various e-learning programs on defined competencies, including Online certificationcourses on Project Management, Supply Chain Management, different e learning resources

on various behavioral areas are facilitated.

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Learning Centers

Learning Centers are available in all Zones and Corporate HQO for accessing information

through internet, books and CDs leading to learning.

Education Refund Plan (ERP)

Education Refund Plan (ERP) enables the employees to undertake academic courses to

further their self-development process, in relation to Corporation's requirement.

Akshay

Project Akshay is leadership development programme, where multiple methodologies like

executive coaching, 360 Degree Feedback based on Emotional and Social Competency

Inventory, Classroom sessions by experts, experiential learning through mentoring

opportunities and group projects etc. are entwined together and deployed in well designed,

co-ordinated and aligned manner.

This provides the participants :

With a simulation on working with peers towards a common objective and

consciously examine their own interactions with peers

To explore for themself their reactions to different situations as they presentthemselves

To observe how their behaviors impact others and

To identify their own strengths and areas for development.

Training Effectiveness

Based on the post-training evaluation, the Training department continuously monitors the

effectiveness of the facilitator and relevance of the content. Alterations / modifications takeplace on this basis. Similarly Participant assimilation of training is also recorded.

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Performance Management

The performance management processes strives to effectively tread through employees

hopes and aspirations. It is all about endorsing an empowering environment which takes the

employee to their best. And makes sure that the employees get valuable feedback, coaching,

and knowledge from the people they work with.

Grievance Handling

For the Redressal of Grievances, workmenwill be governed by the provisions of the agreed

grievance procedure adopted by the corporation. The HR Department Head, who takes

decisions regarding grievances of employees. Employee can inform HR Manager, regarding

grievance. In case of not getting any response within 6 dyas after the information, the

employee can appeal to the top authorities.

The Grievance Redressal Cell, who takes decisions regarding grievances of Tendering

Parties. There will be a process to deal with the grievances received from the tendering

parties or the prospective tenders based on the Tender document issued.

The first level, say Level I, of such process will comprise of a Grievance Redressal Cell.

This Cell will examine the grievances received from the parties and decide the matter. The

Co-ordinator for each of the Cell is respective Head - Materials/Procurement of - Visakh

Refinery, Mumbai Refinery, Marketing SBUs & Corporate. All the grievances will be

lodged with the Co-ordinator of the Cell.

The second level of Grievance Redressal Mechanism is the Executive Committee -

Refineries for both Mumbai & Visakh Refineries, Executive Committee - Marketing &

Executive Committee -Corporate for respective functions. The decision of the Executive

Committee is final.

Grievance Redressal Cell (GRC) consist of the following:

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* Includes Marketing Projects.

** Concerned SBU

Sr.No. BU/Function Head Member

Finance

Member Purchase (Co-

ordinator)

Refineries

GRCs

1 Visakh Refinery Head Refinery Head-

Finance

Head-Materials

2 Mumbai Refinery Head Refinery Head-

Finance

Head-Materials

Marketing

GRCs

1 Retail SBU Head-Retail Head-

Comml.**

Head-Proc.**

2 Direct Sales SBU Head-Direct

Sales

Head-

Comml.**

Head-Proc.**

3 LPG SBU Head-LPG Head-

Comml.**

Head-Proc.**

4 Aviation SBU Head-Aviation Head-

Comml.**

Head-Proc.**

5 Projects & Pipelines* Head-P&P Head-

Comml.**

Head-Proc.**

6 Operations and

Distribution (O&D)

Head-O&D Head-

Comml.**

Head-Proc.**

Corporate

GRCs

1 Corporate Head-IS/HR (as

applicable)

Head-

Finance

(Corp.)

Head-Procurement

(DGM-Administration)

2 Central Engineering (CE) Head-CEC Head-

Finance

(CE)

Head-Procurement

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Compensation Management

Remuneration to the officers is governed by the directives of the Department of Public

Enterprise. During the training period, trainees are entitled to a consolidated stipend per

month. The Management and Non-Management staffs are paid as per their Salary Grades.

The workmen compensation is through negotiations with the recognized unions. Besides the

salary other perquisites as applicable to particular grade are also provided. . The monthly

pay structure for officers and workmen, indicating the minimum and maximum of the pay

scales are as under:

Management Employees

Salary

Grade

Basic

Minimum

Basic

Maximum

DA Pattern

A 24900 50500 Industrial DA pattern.

B 29100 54500

C 32900 58000

D 36600 62000

E 43200 66000

F 51300 73000

G 51300 73000

H 51300 73000

I 62000 80000

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MarketingNon Management Employees (effective from1st Oct. 2008)

Salary

Grade

Basic

Minimum

Basic

Maximum DA Pattern

M 00 10380 15000 Industrial DA pattern

M 01 12370 20410

M 02 12510 22470

M 03 12550 26310

M 04 12610 27150

M 05 12670 29380

M 06 12870 31250

M 07 13110 32850

M 08 13500 37630

M 09 13610 39300

M 10 13920 40680

M 11 14470 48600

Visakha RefineryNon Management Employees(effective from 1st July 2007).

Salary

Grade

Basic

Minimum

Basic

MaximumDA Pattern

RW 00 8000 14000 Industrial DA pattern

RW 01 10000 20000

RW 02 11000 22000

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RW 03 12800 28000

RW 04 13000 33000

RW 05 13300 38000

RW 06 13500 45000

Mumbai RefineryNon Management Employees (effective 1st Oct. 2008)

Salary

Grade

Basic

Minimum

Basic

MaximumDA Pattern

R 00 10380 15000 Industrial DA pattern

R 01 12370 20410

R 02 12510 22470

R 03 12610 27150

R 04 12670 29380

R 05 12870 31250

R 06 13110 33500

R 07 13800 38000

R 08 13910 40000

R 09 14120 41500

R 10 14470 48600

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Perquisites:

VDA (Variable Dearness Allowance)

HRA (House Rent Allowance)

Medical insurance program: - That covers the whole array of medical expenses for

you, spouse and dependent children only, as per the applicable policy from time to

time.

Educational refund plan: - Offers the support in pursuing the course of your interest.

Study leave policy: - Includes a time-off to pursue higher studies related to their

profession.

Housing and vehicle loans: - Housing and vehicle loans at prescribed interest rate will

help in securing employees family future.

Superannuation benefit

City Compensatory Allowance

Other benefits:

Furniture and computer advance

Home lease facility

Accommodation at a very minimal charge depending upon availability.

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Allowances and Medical Reimbursement schemes

Provident fund, gratuity and retrial benefits.

Non-Monetary Benefits

Outstanding Achievement Award:

Employees Hardwork and contribution never go unnoticed at HPCL. If their performance is

of unrevaled standards and has led to substantial savings, their contribution is rewarded with

Outstanding Achievement Award. It is a recognition of their unrelenting and steadyperformance.

Service Awards:

HPCL values loyalty and rewards it suitably. Employees who have been a part of the

corporation for more than fifteen years are rewarded for their service since they have proved

to be a major force behind the HPCLs successful journey.

Recruitment & Selection

HPCL has two modes of recruitment - Campus Recruitment and All India Written Test. The

Corporation publishes advertisement through major Newspapers, National Dailies,

Employment News, Web site etc. During the specified period, applications are received

online through the website. Candidates application which satisfies the needs of the

organization are called for a preliminary Interview. The selected candidates has to undergo

for Medical test, Aptitude Test, Mental Ability Test etc.. Then the final Interview is

conducted.

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Induction and Placement

Samvesh:

HPCL conducts six month Induction programme (Samvesh) for a newly appointed person.

The Induction programme is conducted by a mentor and an HR person. The duration is

classified into four stages such as :

The selected candidate has to undergo for a classroom lecture for one week. During this

period an introduction about the company, Strategic Business Unit (SBU), Divisions etc.. are

given through lecture.

From 2nd week to 30 days the plant location is visited to get familiarize with different

machines and processes.

From 30 days to 90 days the candidate is sent to plant location to get practical experience.

From 90 days to 180 days a project has been given for completion and at the same time

training also has been completed.

Industrial Relations Scenario

Industrial Harmony between the Union Members, Employer and the employees in the

organization is attained. The Outstanding Industrial Relations award is only one-of-its-kind

in the country constituted by AIOE(All India Organization of Employers) and given to

organizations with sound track record in Industrial Relations. HPCL bagged this prestigious

award for the year 2008-09 for its excellent track record.

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Discipline

Each and every employee in the organisation has to follow the Policies framed by the

organization to achieve certain Discipline. if anyone is found to be violated, they are

punished. For example Practice of continuous Leave, Late coming, Not in proper dress code

etc.. The Punishments will be Warrning Letter, Suspension, Transfer and finally Dismissal.

The Policy is framed on the basis of Indian Employees Act and with the consensus of Trade

Union in view of organisations vision and mission.

Corporate Social Responsibility

HPCL has always worked towards being a model of excellence in meeting our commitment

to society with which we engage and interact, and beyond. HPCL has been consciously

striving towards this commitment. The initiatives of the corporation are broadly classified as

Child Care, Education, Healthcare, Skill development and Community development.

Interventions in these areas make a meaningful and long-term impact on the community.

The CSR(Corporate Social Responsibility) programs undertaken at the field level, focused on

the backward communities are completely employee driven. The field personnel identify the

needs of the community in the periphery of their function / location. Plans are then drawn in

consultation with Local Government authorities and projects / schemes are implemented to

bridge the need gaps of these communities. These projects create a very strong bond between

the community and the local setup where HPCL has its business operations

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4.2 PRODUCTION DEPARTMENT

ZONAL

MANAGER

SOUTH ZONE

MANGLORE

REGIONAL

OFFICE

CHENNAI

REGIONAL

OFFICE

COCHIN

REGIONAL

OFFICE

MADHURAI

REGIONAL

OFFICE

SECRETARY

PALGHAT

PLANTCOCHIN

LPG PLANT

LPG SALES

OFFICERS

FINANCE

MANAGER

CLERK

PLANT MANAGER

PRODUCTION

PLANNING

OPERATIONS

OFFICERSAFETY

OFFICERMAINTENANCE

PLANNING

CLERK

PLANT

OPERATOR

TECHNICIAN

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LPG Storage

LPG storage Bullets 3X300 mounded type filled in soil and covered with wall. A new

storage system has been introduced in Vishakpatnam named Cavern. Cavern excavated 200

meter below in a fully saturated rock mass situated below permanent water table.

There are two ways of receiving LPG to storage bullets. - LPG is transferred directly

through pipeline from Cochin Refinery and the other mode of receiving LPG is transfer to

pressure vessels / Tank Trucks using compressors / pumps. This mode of receiving LPG is

highly expensive. A Weigh Bridge cabin has been kept there in order to weigh the TT

Gantry.

10kg of pressure is given in bullets because pressure on air liquefies gas and keeps the LPG

in its form. But in the case of Cavern, no continuous check and pressure is given as it is kept

below the water table.

Washing:

The unloaded empty cylinders are sends through the water tap to wash them. For the

movement of cylinders, the cylinders are kept on a chain which is moving. Two casual

employees has been placed to remove the caps of cylinders and to encode the DPT (Due for

Pressure Test). Each cylinder has different weights. The encoded empty weight cylinders

are moved towards the filling unit. The Code will be A18, C14 etc.. that means the next

rechecking period

Hydro Testing :

An year is divided into four on quaterly basis. Code A represents Jan, Feb and March, Code

B means April, May and June, Code C is July, August and September and Code D shows

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October, November and December. 14, 18 etc.. represents the year 2014, 2018 respectively.

Hydro Testing is conducted on cylinders after 5 years. The empty cylinders are filled-in

waters to detect the leakages if any. After that it paints and the next Hydro Testing Date is

noted on cylinders for future veifications and test.

LPG Evacuation System :

The Cylinders which are having leakages, sends to Evacuation System. Valves of the

cylinder has been removed and is put downward to evacuate the gasous present in the

cylinder and extracts the same. The emptied cylinder is forwarded to fix a new valve and

then sends for Hydro Testing.

Kerosene Filling Unit:

The encoded empty cylinders are pushed by a piston to the Kerosene Filling Unit. 24

cylinders are filled at a time. Yellow Pipe lines are connected towards the filling unit for the

incoming of LPG from the storage unit. A gun has been connected to the valves of the

cylinders and fills it. The filling of LPG is 14.2kg per cylinder. The vapour spreads out

while filling LPG is extracted by vapour extractors (Air System humatic) founded on floor.

It functions like a vaccum cleaner. The filled-in cylinders are pushed by another piston

towards the chain movement and hence to weight checking system. The Total weight

(weight of empty cylinder plus 14.2kg LPG) of the cylinder is checked by each cylinders

code. Even a slight variation in cylinder weights are moved to another section (Weight

Adjustment Scale) for filling as per total weight.

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Weight Adjustment Scale :

All Cylinders that shows variation in weight are brought here by the piston. Man Power is

used here to fill the cylinder as per accurate weight and pushes the cylinder to the moving

chain.

GMS (Gas Monitor System) :

Gas Monitor System has been introduced in order to check the quantity of LPG present in the

cylinder as per Indian standards . LPG is the mixture of Propane and Butane gasous. Certain

percentage of pressures are given on these gasous form to liquefy it.

Quality Checking :

The three different types of Leakages are

Valve Leakage

Regulator Leakage

Body Leakage

Valve Leakage:

The dust particles struck by the cylinder valves may cause leakage of LPG. Electronic Bulb

Detector is used to detect the leakage on valves. Whether the bulb shows 180PPM (Parts Per

Million) above, there is leakage caused to the cylinder.

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Regulator Leakage:

Rubber O Ring is used to prevent the leakage in Regulator. When the valve is pressed and

the gas releases. Rubber O Ring helps to prevent the jamming of valves.

Body Leakage:

To detect the Body leakage of the cylinder, a test bath is conducted. The cylinder is moved

through the water and checkes whether there is any bubbles present in the water. After Test

Bath is conducted successfully the cylinder is send for capping and sealing.

Capping & Sealing :

After checking the quality of the cylinder a cap is placed on the valve and a blue colour thick

plastic paper is put above it. This plastic paper is firmly fixed by using Hot Air Sealing.

Now the cylinder is ready for dispatch and sends to dispatch Section.

Re-Testing :

For Re-Testing Valves has been removed and filled in water by 25kg pressure to detect the

leakage

Pump House :

An Operator has been placed to operate the LPG Pump House. Three types of pipe lines has

been connected to the plant. One is yellow in colour, which carries LPG to the filling unit.

The other is Green colour pipe lines which carries water for washing and the red colour

pipelines keeps water as safety measures when fire occurs.

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4.3 SAFETY AND SECURITY DEPARTMENT

ZONAL

MANAGERSOUTH ZONE

MANGLORE

REGIONAL

OFFICE

CHENNAI

REGIONAL

OFFICE

COCHIN

REGIONAL

OFFICE

MADHURAI

REGIONAL

OFFICE

SECRETARY

PALGHAT

PLANTCOCHIN

LPG PLANT

LPG SALES

OFFICERS

FINANCE

MANAGER

CLERK

PLANT MANAGER

PRODUCTION

PLANNING

OPERATIONS

OFFICERSAFETY

OFFICERMAINTENANCE

PLANNING

CLERK

PLANT

OPERATOR

TECHNICIAN

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General Safety, Health & Environment

In HP gas Safety, Health and Environment have continued to gain increasing importance, and

rightly so, in view of the ecological imbalance that the world is facing at large. HPCL as a

responsible Corporate Citizen has always strived to strike a right balance between operating

its business and maintaining a sense of harmony with its surroundings.

It is the PEOPLE who make their working environment safe by adopting safe work practices

and it is these work practices that form a part of any Environment, Health & Safety (Sh&e)

Policy. The Objective of SH&E Policy is not only to bring about awareness, but also to

promote a pollution free environment; and create a healthy surrounding and safe working

conditions by constantly guiding all the actions within a consciously recognized and adopted

set of standards.

The SH&E Policy is a testimony to HP GAS's Commitment towards protection of

environment as they have a great responsibility not only to protect the health & safety of the

employees but also hand over a safe word to the future generation to come. HPCL follow

the SH&E Policy, not only in word but in spirit, and actively contribute towards achieving its

objectives.

Safety

HP GAS committed to conduct its business in the way that protects the safety of personnel

involved in the business including the customers and the public. HPCLs goal is to have

their business 100% free from accidents, injuries and occupational illness through the active

participation of everyone involved in the business.

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To meet goal of 100% accident free operation HP Gas carry out following:

nstall, implement and maintain facilities which control safety risks.

effective use of equipment's to avoid any incident/accident.

operational equipment's for achieving the accident free operations economically.

ation of OISD (Oil Industry

SafetyDirectorate), Ministry of Petroleum and Natural Gas,New Delhi(india) for safe

operation of plants. DMP (Disaster Management Plan) & RA (Risk Analysis) studies

being conducted as and when required at Plants/Import facilities to analyze the risk

involved and how to manage the risk.

Necessary measures taken to mininmize the risk at work places.

o GMS (gas Monitoring System)

o Wireless Communication

o Metal Detector

o Wall with Consertive Barred Coil

o Work Permit System

o Boom Barrier to Vehicles

o 24 hour manned plant

o Watch Tower to see the Peremeters

o Locked Gate

o Fire Water Storage

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DMP(Diaster Management Plan)- On site & off site DMP has been prepared in consultation

with local administration and other concerned statutory authorities to control on any

emergency/exigency situation. Monitoring for improvement and well control for safe

working. Safety and Security Department carry out internal safety audits and coordinate for

100% compliance of internal & external safety audits recommendations. Following are key

activities of SH&E:

Product Knowledge

Health

HP GAS is committed to create a healthy working atmosphere and to overcome on any kind

of Ocupational Health hazard associated with LPG at work place. HP Gas have plans to

evaluate health risk is any at work place, and take appropriate measure to overcome on such

risks.

HP GAS has engaged Company Designated Physicians and made arrangement with nearby

hospital for regular medical checkup / monitoring health & handling of medical emergencyof the employees. In addition company has got medical centers at main controlling offices at

metros. In addition the employees are medically insured as per HPCL Policy. HPCL comply

with statutory regulations on "HEALTH".

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progress.

ETP(Effluent Treatment Plants) at our major plants to ensure that no pollution go out of

plants through waste.

nt has been installed at few plants. MLIF has planned to

install shortly second harvesting plant.

Under ISO 9000 Certifications:

lants.

certification.

ting

System) Level 7 Certified location. It's the First Marketing Location in Oil

Industry in India who has got ISRS level certification

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Major Fire Fighting Facilities:

- Quarzoid Bulb heat detection system for detection of

any fire and actuate for Auto fire fighting system and operating water sprinklers for

extinguish fire. Also push buttons Auto fire fighting system is provided.

fighting.

tuate auto

shut off pumps/compressors system.

any leakage/short circuit.

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4.4 MARKETING DEPARTMENT

SOUTH ZONE (RETAIL)

--------------------------------------------

DGMDeputy General Manager

Dy.Depuy

SR. - Senior

GENERAL

MANAGER

DGM

OPERATION &

DISTRIBUTION

DGM

RETAIL

ENGINEERING

SENIOR

MANAGER

MARKETING

DGM

FINANCECHIEF

MANAGER

SALES

REGIONAL

MANAGERS

KOZHIKODE MADURAI CHENNAI SRMCOCHI

SECRETARY

HR VIGILENCE LEGAL

CLERK MANAGERMARKETING&

ADVERTISING

DY. MANAGER

RETAIL

ENGINEERING

OFFICER

RETAIL

ENGINEERING

& MIS

MANAGER

FINANCEAREA

SALES

MANAGER

SR. OFFICER

RETAIL

ENGINEERING CLERKSCLERKS

CLERK

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Marketing is the core of an organization. Without Marketing any product cannot be sold or

purchased. The corporation produces the entire range of petroleum products and serves all

sectors of economy - industry, agriculture, transport, domestic public utilities and also major

cosumers like the railways, power plants, steel plants, defence, fertilizer plants etc. For

retail outlets HPCL have only one marketing manager. Role of the Marketing Manager is to

give support to the sales team, which consists of number of officers. Sales Officers look at

the outlets or dealers. Marketing Manager has to guide these sales officers. Markting

Managers are different for retail, LPG, Lubes etc.

Products at a Glance

o

PETROL

o DIESEL

o LIGHT DIESEL OIL

o LPG

o KEROSENE

o AVIATION TURBINE FUEL