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A STUDY ON RURAL MARKRTING OF HPCL 2014

1 SRN ADARSH COLLEGE

PART – A

History of the oil industry in India

The history of the Indian oil industry extends back to the period of the British

Raj, at a time when petroleum first became a primary global energy source.

The origin of the Indian oil & gas industry can be traced back to the late 19th

century, when oil was first struck at Digboi in Assam in 1889. At independence,

oil exploration and production activities were largely confined to the North-

Eastern region, particularly Assam and the daily crude oil production averaged

just 5,000 barrels per day. In the downstream sector, the first refinery was set up

at Digboi in 1901. In view of the significance of the oil & gas sector for overall

economic growth, the Government of India, under the Industrial Policy

Resolution of 1954, announced that petroleum would be the core sector

industry. In pursuance of the Industrial Policy Resolution, 1954, petroleum

exploration & production activity was controlled by the government-owned

National Oil Companies (NOCs), namely Oil & Natural Gas Corporation

(ONGC) and Oil India Private Ltd (OIL).

With the discovery of the Cambay onshore basin (in 1958) and the Bombay

offshore basin (in 1974), the domestic oil production increased considerably. As

a result, in the early 70s, almost 70% of the country‟s oil requirement was met

domestically. However, by the end of the 1980s, some of the existing oil & gas

fields were experiencing a decline in their production since they had already

been in production for several years and were past their 3 plateau phase. At the

same



time, there was a steady increase in consumption of oil & gas, leading the two

NOCs to meet only about 35% of the domestic oil requirement.

After the oil shock of 1970s, the nationalisation of both the upstream &

downstream sectors was initiated and was completed on October 14, 1981. This

resulted into the exit of the international oil companies from the Indian oil &

gas industry. Moreover, the resource crunch in the beginning of the 1990s that

held up the NOCs from developing some of the then newly discovered oil & gas

fields (such as Gandhar, Heera Phase-II & III, Neelam, Ravva, Panna, Mukta,

Tapti, Lakwa Phase-II, Geleki and Bombay High Final Development scheme),

had adversely impacted domestic oil production. Apart from this, controls were

imposed by the Government on the pricing and distribution of crude oil and

petroleum products in India. Factors like the administered oil prices and non-

availability of appropriate technology logistics augmented the problem.

Upto 1990s, there were three rounds of exploration bidding with no success in

finding new oil/gas deposits by the foreign companies who only were allowed

to participate in the bidding process. This led the government to initiate

Petroleum Sector Reforms (PSR) in 1990, under which the fourth, fifth, sixth,

seventh and eighth rounds of exploration bidding were announced during 1991-

94. For the first time, Indian companies with or without prior experience in

exploration & production activities were allowed to participate in the bidding

process during these rounds. In 1995, the Government announced the Joint

Venture Exploration Programme. However, this was viewed as a deterrent by

major private sector oil companies. This led the government to announce New

Exploration Licensing Policy (NELP) in 1997 (operationalized in 1999) as part

of its Hydrocarbon Vision



2020, a landmark 25-year planning document. Under NELP, licenses for

exploration are being awarded only through a competitive bidding system and

NOCs are required to compete on an equal footing with Indian and foreign

companies to secure Petroleum Exploration Licenses. In addition to NELP,

other efforts were made to address the need for achieving energy security.

These include:

1. Acquisition of Oil and Gas assets abroad;

2. Developing strategic storage facilities at identified locations;

3. Exploring alternate sources of Energy, including Coal Bed Methane, gas

hydrates, etc.

4. Improving the recovery of oil and gas from existing fields through

methods such as Enhanced Oil Recovery (EOR) and Increased Oil

Recovery (IOR).

Consequent to the various initiatives taken by the government, currently the

area under exploration has increased fourfold. Prior to implementation of

NELP, 11% of Indian sedimentary basins area was under exploration. With the

conclusion of seven rounds of NELP, the area under exploration has increased

to about 50%. One of the world‟s largest gas discoveries was made by Reliance

Industries Ltd in 2002, in Jamnagar (about 5 trillion cubic metres). Besides, the

entry of international companies like Hardy Oil & Gas, Santo, GeoGlobal

Resources Inc, Newbury, Petronas, Niko Resources and Cairn Energy into India

has helped boost the growth of the industry.



Stages of evolution in petroleum industries

Colonial rule, 1858-1947

The first oil deposits in India were discovered in 1889 near the town of [Digboi]

in the state of Assam. This discovery came on the heels of industrial

development. The Assam Railways and Trading Company (ARTC) had recently

opened the area for trade by building a railway and later finding oil nearby. The

first well was completed in 1890 and the Assam Oil Company was established

in 1899 to oversee production. At its peak during the Second World War the

Digboi oil fields were producing 7,000 barrels per day. At the turn of the

century however as the best and most profitable uses for oil were still being

debated, India was seen not as a producer but as a market, most notably for fuel

oil for cooking. As the potential applications for oil shifted from domestic to

industrial and military usage this was no longer the case and apart from its small

domestic production India was largely ignored in terms of oil diplomacy and

even written off by some as hydrocarbon barren. Despite this however British

colonial rule laid down much of the country‟s infrastructure, most notably the

railways.



Independence, 1947-1991

After India won independence in 1947, the new government naturally wanted to

move away from the colonial experience which was regarded as exploitative. In

terms of economic policy this meant a far bigger role for the state. This resulted

in a focus on domestic industrial and agricultural production and consumption, a

large public sector, economic protectionism, and central economic planning.

The foreign companies continued to play a key role in the oil industry. Oil India

Limited was still a joint venture involving the Indian government and the

British owned Burmah Oil Company (presently, BP) whilst the Indo-Stanvac

Petroleum project in West Bengal was between the Indian government and the

American company SOCONY-Vacuum (presently, ExxonMobil). This changed

in 1956 when the government adopted an industrial policy that placed oil as a

“schedule A industry” and put its future development in the hands of the state.

In October 1959 an Act of Parliament was passed which gave the state owned

Oil and Natural Gas Commission (ONGC) the powers to plan, organize, and

implement programmes for the development of oil resources and the sale of

petroleum products and also to perform plans sent down from central

government.

In order to find the expertise necessary to reach these goals foreign experts from

West Germany, Romania, the US, and the Soviet Union were brought in. The

Soviet experts were the most influential and they drew up detailed plans for

further oil exploration which were to form part of the second five-year plan.

India thus adopted the Soviet model of economic development and the state

continues



to implement five-year plans as part of its drive towards modernity. The

increased focus on exploration resulted in the discovery of several new oil fields

most notably the off-shore Bombay High field which remains by a long margin

India‟s most productive well.

Liberalization, 1991-present

The process of economic liberalization in India began in 1991 when India

defaulted on her loans and asked for a $1.8 billion bailout from the IMF. This

was a trickle-down effect of the culmination of the cold war era; marked by the

1991 collapse of the Soviet Union, India‟s main trading partner. The bailout was

done on the condition that the government initiates further reforms, thus paving

the way for India‟s emergence as a free market economy.

For the ONGC this meant being reorganized into a public limited company (it is

now called for Oil and Natural Gas Corporation) and around 2% of government

held stocks were sold off. Despite this however the government still plays a

pivotal role and ONGC is still responsible for 77% of oil and 81% of gas

production while the Indian Oil Corporation (IOC) owns most of the refineries

putting it within the top 20 oil companies in the world. The government also

maintains subsidized prices. As a net importer of oil however India faces the

problem of meeting the energy demands for its rapidly expanding population

and economy and to this the ONGC has pursued drilling rights in Iran and

Kazakhstan and has acquired shares in exploration ventures in Indonesia, Libya,

Nigeria, and Sudan.



India‟s choice of energy partners however, most notably Iran led to concerns

radiating from the US. A key issue today is the proposed gas pipeline that will

run from Turkmenistan to India through politically unstable Afghanistan and

also through Pakistan. However despite India‟s strong economic links with Iran,

India voted with the US when Iran‟s nuclear program was discussed by the

International Atomic Energy Agency although there are still very real

differences between the two countries when it comes to dealing with Iran.

PART - B

RURAL MARKETING

DEFINITION

Rural Marketing is defined as any marketing activity in which the one dominant

participant is from a rural area. This implies that rural marketing consists of

marketing of inputs (products or services) to the rural as well as marketing of

outputs from the rural markets to other geographical areas.

Marketing is the process used to determine what products or services may be of

interest to customers, and the strategy to use in sales, communications and

business development. It generates the strategy that underlies sales techniques,

business communication, and business developments. It is an integrated process

through which companies build strong customer relationships and create value

for their customers and for themselves. It is a function which manages all the

activities involved in assessing, stimulating and converting the purchasing

power to effective demand for a specific product and service. This moves them

to the rural areas to create satisfaction and uplift the standard of living.



Rural areas of the country or countryside are areas that are not urbanized,

though when large areas are described country towns and smaller cities will be

included. They have a low population density, and typically much of the land is

devoted to agriculture. Defra have a working definition, The Rural/Urban

Definition, that was introduced in 2004 as a joint project between a numbers of

Government Departments and was delivered by the Rural Evidence Research

Centre at Birkbeck College (RERC).

Marketing strategies that worked for urban markets do not necessarily

work for the rural ones.



There are 7 differentiators identified in Why the rural market is different -

1. Intra community influences are relatively more important than inter-

community ones. Word-of-mouth in close knit communities is more powerful.

2. Scarcity of media bandwidth. Rural individual's access to media channels is

limited and in the case of broadband the comparable upload and download

speed may be slower. Online shopping is seen as a solution by many but will be

dependent on broadband speed.

3. Slow to adopt brands. Slow to give them up. Rural consumers will be slower

to pick up trends or brands but will remain loyal when accepted.

4. Expenses are yearlong; income is seasonal. Many rural areas rely on seasonal

tourism peaks when income will be high and to a lesser extent agricultural

incomes from seasonal crops. This means there will be more disposable income

at certain times with rural businesses and employees.

5. Information hungry; but entertainment starved. Isolation from entertainment

centers has led to companies trying edutainment to get their message across.

6. Higher receptivity to experience advertising. Retail outlets in rural areas have

many demonstration areas along with markets for tasting.

7. Commercially profitable; and socially acceptable. Brands with demonstrable

local, rural, environmental and/or social credibility stand a better chance.



Rural Marketing meant different in 3 different periods -

Part1 (before 1960) -It was a completely an unorganized market, where

“baniyas and mahajans” dominated the market. Rural marketing was another

word for agricultural marketing because agricultural produces like food grains

and industrial like food grains and industrial like cotton, oil seeds, sugarcane etc

occupied primary attention and the supply chain activities of firm supplying

agricultural inputs and of artisans in the rural areas received secondary

attention.

Part 2(1960 to 1990) - The greatest thing which happened in this period was

green revolution which led to farming involving scientific and technological

methods and many poor villages became prosperous business centers. With

better irrigation facilities, soil testing, use of high yield variety seeds, fertilizers,

pesticides and deployment of machines like power tillers, harvesters, threshers

etc, the output increased especially wheat and paddies. Due to this marketing of

agricultural inputs was also now there a new potential market. Now marketing

of rural marketing meant “marketing of agricultural inputs” and “agricultural

marketing”. Agencies like Khadi and Village Industries Commission, Girijan

Cooperatie Societies & Fabrics, Company bloomed and government paid

special attention to promote these products. Sale of handicrafts, handloom

textiles, soaps ,safety matches and crackers increased on large scale in urban

areas.

Part 3(after mid 1990) - Since 1990 ,India‟s industrial sector had gained

strength and maturity. It‟s contribution to GNP increased substantially. There

was metamorphosis of agricultural society to industrial society. With support

and development programmes of central and state governments, service

organizations and socially responsible business groups like Mafatlal, Tatas,

Birla, Goenkas and others the rural areas progressed socially and economically.



RESEARCH DESIGN

TITLE OF THE STUDY -

To study the rural marketing strategies adopted by HINDUSTAN

PETROLEUM CORPORATION LIMITED in Rural areas.

STATEMENT OF THE PROBLEM -

Rural marketing is an emerging trend. Even in rural areas people use

automobiles like tractors, 2 wheelers, 4 wheelers and other heavy vehicles like

trucks, tempo and other goods carrier vehicles. In this context, the study

explores the different aspects of rural marketing with reference to the

customers‟ fuel requirement.

OBJECTIVE OF THE STUDY -

In this study, the focus is on the emergence of rural markets as the most

happening market on which every marketer has an eye. And so this study will

be based on studying the emergence of rural market in various contexts. The

following are the objectives of this research study:-

1) To study the emergence of rural markets in the context of India.

2) To study the present scenario of rural marketing in India.

3) To study the future prospects of rural markets and their scope in India.

4) To study the challenges faced by rural marketers in India.

5)To study the reasons of popularity of rural markets in India.



6) Present a rural marketing perspective.

7) Present a profile of Indian Rural market.

SCOPE OF THE STUDY:

The study is restricted to selected districts of KARNATAKA. Further, product

and brand penetration is examined. As regards marketing of consumer products

in rural areas, the study analyzes products of petroleum products marketed by

the HINDUSTAN PETROLEUM CORPORATION LIMITED. Some of the

advantages of Rural Marketing are –

1) Large Population.

2) Market growth rates higher.

3) Rural marketing is not expensive.

4) Remoteness is no longer a problem.



LIMITATIONS OF RURAL MARKETING -

There are several roadblocks that make it difficult to progress in the rural

market. Marketers encounter a number of problems like dealing with physical

distribution, logistics, proper and effective deployment of sales force and

effective marketing communication when they enter rural markets. The major

problems are listed below -

1) Standard of living -

The number of people below the poverty line is more in rural markets.

Thus the market is also underdeveloped and marketing strategies have to be

different from those used in urban marketing.

2) Low literacy levels -

The low literacy levels in rural areas leads to a problem of

communication. Print media has less utility compared to the other media of

communication.

3) Low per capita income -

Agriculture is the main source of income and hence spending capacity

depends upon the agriculture produce. Demand may not be stable or regular.

4) Transportation and warehousing -

Transportation is one of the biggest challenges in rural markets. As far as

road transportation is concerned, about 50% of Indian villages are connected by

roads. However, the rest of the rural markets do not even have a proper road

linkage which makes physical distribution a tough task. Many villages are

located in hilly terrains that make it difficult to connect them through roads.

Most marketers use tractors or bullock carts in rural areas to distribute their

products.



Warehousing is another major problem in rural areas, as there is hardly

any organized agency to look after the storage issue. The services rendered by

central warehousing corporation and state warehousing corporations are limited

only to urban and suburban areas.

5) Ineffective distribution channels -

The distribution chain is not very well organized and requires a large

number of intermediaries, which in turn increases the cost and creates

administrative problems. Due to lack of proper infrastructure, manufacturers are

reluctant to open outlets in these areas. They are mainly dependent on dealers,

who are not easily available for rural areas. This is a challenge to the marketers.

6) Many languages and diversity in culture -

Factors like cultural congruence, different behavior and language of the

respective areas make it difficult to handle the customers. Traits among the

sales force are required to match the various requirements of these specific

areas.

7) Lack of communication system -

Quick communication is the need of the hour for smooth conduct of

business, but it continues to be a far cry in rural areas due to lack of

communication facilities like telegraph and telecommunication systems etc. The

literacy rate in the rural areas is rather low and consumers‟ behavior in these

areas is traditional, which may be a problem for effective communication.

8) Spurious brands -

Cost is an important factor that determines purchasing decision in rural

areas. A lot of spurious brands or look-alikes are available, providing a low cost

option to the rural customer. Many a time the rural customer may not be aware

of the difference due to illiteracy.



9) Seasonal demand -

Demand may be seasonal due to dependency on agricultural income.

Harvest season might see an increase in disposable income and hence more

purchasing power.

10) Dispersed markets -

Rural population is highly dispersed and requires a lot of marketing

efforts in terms of distribution and communication.



DATA COLLECTION -

Sample unit -

1) Working people (including men &women), basically farmers and daily wage

workers.

2) College students.

3) Drivers.

4) Senior citizen.

Sample size – Total 100

1) Working people - 32%.

2) College students - 29%.

3) Drivers - 23%.

4) Senior citizens - 16%.

Sample region -

1) I have selected Karnataka as the area of study.

2) I have chosen BIDADI, DODDABALAPUR, KOLAR and TUMKUR as

areas of research



DATA COLLECTION METHOD -

1. Primary data -

It was collected with the help of a self-administered questionnaire. This

questionnaire aims to gather information related to products of HINDUSTAN

PETROLEUM CORPORATION LIMITED.

Questionnaire design:

As the questionnaire is self- administrated one, the survey is kept simple and

user friendly. Words Used in questionnaire are readily understandable to all

respondent. Also technical jargons are avoided to ensure that there is no

confusion for respondents.

2. Secondary data -

It was collected with the help of books, research papers, magazines,

newspapers, journals, Internet, etc.



RESEARCH INSTRUMENTS

Primary data –

It was collected to meet the specific objective of the study. The

primary data collection technique was questionnaire.

Secondary data –

It was collected from the manager of Sri Venkus & co, Mr.

Ramesh, company websites and related books.



COMPANY PROFILE

INTRODUCTION

Hindustan Petroleum Corporation Limited (HPCL) (BSE: 500104, NSE:

HINDPETRO) is an Indian state-owned oil and natural gas company with its

headquarters at Mumbai, Maharashtra and with Navratna status. HPCL has been

ranked 260th in the Fortune Global 500 rankings of the world's biggest

corporations (2013) and 4th among India's Companies for the year 2012. HPCL

has about 20% marketing share in India among PSUs and a strong marketing

infrastructure. The President of India owns 51.11% shares in HPCL.

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 Vishakapatnam (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 Pte.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.

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 11,000 employees working all over India at its various

refining and marketing locations. View Past Annual Reports to know more

about HPCL.

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.



HISTORY

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

Esso Standard and Lube India Limited by the Esso (Acquisition 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 the Kosangas Company Acquisition Act, 1979.

In 2003, following a petition by the Centre for Public Interest Litigation (CPIL),

the Supreme 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 and Prashant 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 FY 2012-13, its net profit was IN 904 Crores.



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 in Bathinda, Punjab by HMEL, 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. It would be operated under a JV Company

called HPCL-Rajasthan Refinery Limited.

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.

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

and 101 Regional offices 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.



KEY EXECUTIVES

S.No Name Designation

1 S Roy Choudhury Chairman

2 S Roy Choudhury Managing Director

3 Shrikant M Bhosekar Company Secretary

4 Rohit Khanna Part Time Non-Official Director

5 SC Khuntia Non Executive Director

6 R K Singh Non Executive Director

7 Nishi Vasudeva Wholetime Director - Marketing

8 KV Rao Wholetime Director - Finance

9 G K Pillai Non Executive Independent Director

10 AC Mahajan Non Executive Independent Director

11 G Raghuram Non Executive Independent Director

12 Gitesh K Shah Non Executive Independent Director

13 Pushp Kumar Joshi Whole Time Director

14 BK Namdeo Whole Time Director



PRODUCTS

1. Petrol : Known as Motor Spirit(MS) in Oil Industry. HPCL markets the

product through 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 brand - HPLubes, 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.

6. Bitumen

7. Furnace Oil



COMPETITORS

1. RIL Industries

2. RIL Petroleum

3. Indian Oil Corp.

4. BPCL

5. Essar Oil

6. MRPL

7. IBP Co

8. Bongaigaon Refinery

9. Chennai Petrol. Corp

10. Nagarjuna Oil

11. Kochi Refineries



REFINERIES

HPCL has a number of refineries in India. Some are listed below:

1. Mumbai Refinery - 6.5 Million Metric Tonnes (MMT) Capacity

2. Visakhapatnam Refinery - 8.3 MMT at Visakhapatnam

3. Mangalore Refinery Pvt. Ltd. - 9.69 MMT at Mangalore,

Karnataka(HPCL has 16.65% Stake).

4. Guru Gobind Singh Refinery - 9 MMT at Bathinda, Punjab (HPCL &

Mittal Energy each have 49% stake).

5. Barmer Refinery -9 MMT Capacity. It is a Joint Venture with Rajasthan

Government.



MILESTONES

1. HPCL‟s Vishakapatnam refinery Bagged First Prize for Energy

Conservation In Petroleum Refining Sector in 2007.

2. HPCL has been awarded Silver Trophy at the EMPI-Indian Express

Indian Innovation Awards Ceremony.

3. HPCL was awarded the “Trusted Brand Gold Award ” in gas station

category in survey conducted by Reader‟s Digest and AC Nielsen.

4. HPCL's brand petrol „Power‟ was awarded as “Most Preferred Auto

Fuel” at CNBC Awaaz Consumer Award 2007.

OTHER AWARDS

1. NDTV Profit Business Leadership Award

2. Reader‟s Digest „Trusted Brand Asia Platinum‟ Award

3. Golden Peacock Corporate Governance Award 2008

4. CIO 100 Award 2008

5. India Star Award

6. National Award For Excellence In Cost Management

7. Greentech Environment Excellence Award 2008

8. Best HR Practices in „People Management‟.



GROWTH/ FUTURE PROSPECTS

HP Gas, its LPG business segment, has 2100 distributors reaching 21 million

household.

Through its retail outlets “Club HP”, the company provides wide range of

products as Auto LPG, CNG, Power, Turbo Jet and Power 93. It has tie up with

Café coffee Day, Diary Den, Western Union, US Pizza and Tata Motors.

In bulk fuel and specialties segment, it offers products like bitumen, fuels,

marine- bunker fuels, hexane, propylene, sulpur, kerosene oil and many more.

Through its aviation service facility PCL provides aviation turbine fuel (ATF)

to major airports in the country including Delhi, Mumbai, Chennai, Kolkata,

Bangalore, Calicut and Cochin.

HPCL, in association with CREDA ( Chhattisgarh State Renewable Energy

Development Agency ), plans to form a subsidiary -- CREDA-HPCL Biofuels.

This company will produce bio-disel from jatropha plants in Chhattisgarh state

HPCL has tied up with Renuka Sugar to form joint venture for setting up a fully

integrated sugar mill with associated facilities for producing ethanol. The joint

venture is based on the Brazilian concept of flexible approach where production

of sugar and ethanol will depend on market conditions. Ethanol is a byproduct

of sugar. The total investment on the project will be over Rs 550 crore.



Major On-going Projects

1. New Refinery near Barmer in Rajasthan

2. Rewari Kanpur Pipeline (RKPL)

3. Diesel Hydro Treating (DHT) at Mumbai & Visakhapatnam refineries

Major facilities

1. Mumbai refinery - Fuel & Lubes

2. Vizag refinery - Fuel.

3. Mangalore - MRPL

4. Batinda - HMEL

5. Lube, Grease & Specialities - State of art plant at Silvassa. (One of the most

advanced fully automated Installation in Asia)

6. Lube & Grease mfg facility - Mazagaon, Mumbai.

7. LPG storage Cavern - one of the biggest storage facility of LPG in Asia at

Vizag - SALPG

8. Pipelines - MBPL, PSPL, MDPL, VVSPL.

9. Several Terminals & depots.

10. Many LPG bottling plants.



INTERNATIONAL RANKINGS

1. HPCL is a Fortune Global 500 company as per the ranking of 2013 and was

ranked at position 260.

2. HPCL was featured on the Forbes Global 2000 list for 2013 at position 1217

3. It is 10th most valuable brand in India according to an annual survey

conducted by Brand Finance and The Economic Times in 2010



CUSTOMERS

Prominent customers of HPCL:

Ispat Industries

Tata Motors

State Transport

Indian Railways

Indian Army

Coast Guard

Mahindra & Mahindra

Punjab Tractors

Tyre Companies:

o MRF

o Ceat

o JK

o Bridgestone

o Apollo

Coal Mines:

o Northern

o South-Eastern

o Western



RURAL MARKETING OF HP

Hindustan Petroleum Corporation Ltd (HPCL), one of the leading petroleum

products retailers in the country, will invest around Rs 1,140 crore to finance

3,000 retail outlets by 2012. Of these, 2,100, or 70%, will be located in rural

areas.

With the new outlets, the total number of the company‟s retail outlets in the

country will go up by 27% to 11,000. At present, HPCL has 8,000 retail outlets

spread across the country, of which 800 are in the rural areas. HPCL sells 9

million tonnes of fuel through its outlets.

The company has set a target of opening 500 outlets every year over the next

five years. “We are planning to concentrate on rural outlets as rural areas offer

good return on investments,” HPCL chairman and managing director MB Lal

said. HPCL already operates low-cost retail outlets, also known as “Hamara

Pumps”, in rural areas.

The company‟s focus on rural areas is aimed at cornering the growing market

for diesel.



Through tie-ups with other firms, it will utilise these rural outlets to provide

agricultural services to the local population. Industry analysts say the intention

behind partnering with non-petroleum retail companies is to attract vehicle

owners.

The minimum service obligation (MSO) requires oil marketing companies to set

up at least 11% of their retail outlets in rural areas.

“Apart from concentrating on rural areas and highways, we will slow down a bit

on expansion in other areas. Consolidating on the existing outlets will be

another focus area”.

HPCL, which has a tie-up with Godrej Aadhaar, the agricultural services arm of

Godrej Agrovet Ltd, plans to set up small format stores at its rural retail outlets

to sell agro-products like seeds and fertilizers. It has tied up with Tractor and

Farm Equipment Ltd for tractor sales and service and Hindustan Insecticides,

Rashtriya Chemical Fertilisers and Maharashtra State Seeds Corporation for

insecticides, fertiliser and seed sales, respectively.HPCL also has got together

with Mahindra & Mahindra Financial Services for helping farmers to

arrange finance for purchase of fertilizers, seeds, farm equipment and household

items in addition to providing credit for fuels.Currently, these tie-ups are

running on a pilot basis and the company claims that it has received a

tremendous response. Analysts say the companies that have tied up with HPCL

stand to gain more from the deals as the outlets will give.



Hindustan Petroleum Fortifies LPG Business

'Jee haan' focusing on consumer satisfaction theme of the new brand campaign

Hindustan Petroleum Corporation Limited (HPCL), announced a range of

personalised initiatives to consolidate and build a stronger alliance with its

consumers in the LPG business. HPCL is the second largest LPG marketing

company with a consumer base of more than 16 million serviced through a

network of 1823 distributor across length and breath of the country. Hitherto,

LPG was marketed as a commodity and there was huge waitlist for new

connections. With the release of 2.3 crore new connections in the last two years,

the entire waitlist has been eliminated and connections are being released across

the counter.



Customer expectations are not merely limited to receiving timely refills, but

now look forward to value added services. HPCL had anticipated these changes

and have taken measures to standardize and benchmark all marketing activities

across the country.

As part of HPCL's strategic marketing initiative that seeks to break out of

traditional LPG business and establish 'HP Gas' as a distinct and unique LPG

brand across the country it has endeavored to increase consumer focus,

penetrate untapped rural markets - all the efforts being consolidated towards

building a stronger brand image. Basis extensive research undertaken to

understand the needs of the customer, HP GAS would be positioned to provide

totally hassle free experience to the consumers.

The distinct set of value added offerings range from services tailor made for

consumer convenience - delivery of refills within 24 hours, extended delivery

timings - 8 am to 8 pm all seven days a week, efficient and expert services -

installation of a new connection within 24 hours and single point contact for

refill booking, customer service enquiries and Emergency services - 4 digit

single number 1716 across the country, for safety and convenience of our

valued consumers. The single number facility will be introduced in Mumbai

followed by the other cities.



The entire communication is being launched with a specially designed

pneumonic of an animated cylinder proclaiming 'Jee haan' reinforcing a strong

positive service orientation. The phased roll out of 'Jee haan' initially covers 258

distributorships in the cities of Mumbai, Delhi, Kolkata, Bangalore, Hyderabad

and Pune.

HPCL is one of the first Oil Companies to computerise the entire distributor

network to provide value added services to consumers such as refill booking

thru IVRS, internet etc. Special training module termed as "Millennium

Distributor" has been rolled out and more than 1000 distributors covered for re-

orientation of their mindset to meet challenges of competitive scenario.

In HPCL Safety comes first. Suraksha LPG hose which has been recently

launched is an example of our commitment to safety.

As the Urban domestic market is fast nearing saturation, HPCL has also started

focusing on rural markets, which would be the engines for future growth. It is

operating 2 skid mounted filling plants exclusively for rural areas and would be

shortly introducing 5 Kg cylinders. It has also played a leading role in providing

LPG connections under Deepam scheme in the state of Andhra Pradesh.

HPCL is equally concerned about protecting the environment. It has embarked

on an ambitious plan of creating infrastructure for dispensing LPG as Auto

Fuel.



HPCL has currently set up seven Auto LPG stations in Mumbai and two in

Delhi. It is in the process of setting up 30 more stations within this financial

year. HPCL is also facilitating conversion of the vehicles at its outlets in

Mumbai through an approved agency.

Announcing the strategic intent, Shri N K Puri, HPCL's Director- Marketing,

said, "The entire concept of 'Jee haan' has been launched post analyzing the

various options to build a stronger market share and greater mind recall for HP

GAS. The main focus is on Customer service, Safety, Branding and Rural

marketing. We are always looking to bring to our consumers the latest and the

best in customer satisfaction and our latest offerings will make us uniquely

positioned to bridge the gap between our consumers through cost effective and

seamless initiatives."



More News from Hindustan Petroleum Corporation Limited

26/04/2005

HPCL signs up with Zaheer Khan

Hindustan Petroleum Corporation Limited, the 2nd largest Oil PSU with a

Fortune 500 rating and Navratna status to its credit has signed up with Zaheer

Khan, the Indian Cricket team's leading Fast Bowler for ensdorsing.

24/07/2003

Hindustan Petroleum LPG Business Unveils Consumer Initiatives

Hindustan Petroleum Corporation Limited (HPCL) today announced a range of

new exciting, value added services designed to create a purposeful relationship

with its consumers. HP Gas launches, HP Home Perk programme.

18/07/2003

Hindustan Petroleum Introduces 5 kilogram LPG Janta Cylinder in Chattisgarh

Shri Ram Naik, Honorable Minister of Petroleum and Natural Gas, today

launched the 5 kilogram LPG Janta cylinder targeting the rural masses at a

function held at the HP Gas bottling plant at Raipur, Chattisgarh.



Marketing and Distribution of Petroleum Products in India

Overview:

The public sector oil marketing companies (OMCs) which include Indian Oil

Corporation Ltd. (IOCL), Bharat Petroleum Corporation Ltd. (BPCL) and

Hindustan Petroleum Corporation Ltd. (HPCL) are primarily responsible for the

marketing and distribution of petroleum products in India. With the opening of

retail sector for the private players, Reliance Industries Ltd. (RIL), Shell and

Essar have also entered the retail marketing related to petroleum products. The

marketing and distribution infrastructure in the petroleum sector include -

petrol/diesel stations, liquefied petroleum gas (LPG) distributorships, lubricants

and greases outlets and the large volume consumer pumps are backed by bulk

storage terminals and installations, inland depots, aviation fuel stations, LPG

bottling plants and lube blending plants amongst others. IOCL is the market

leader in terms of marketing and distribution of petroleum products.

ROs in India:

The number of retail outlets (ROs) in India has increased from 31,650 in April

2006 to 40,819 in January 2011. IOCL has the widest network of ROs across

India with 19,057 ROs as in January 2011. The number of IOCL ROs have

increased almost 2.5 times since April 2002. The number of ROs of HPCL and

BPCL have almost doubled since 2002. The increase in the the number of ROs

in India from 2005-06 to 2010-11 and the petroleum products' retail market

share is as follows:



SKO dealers in India:

There has been a very marginal increase in the number of superior kerosene oil

(SKO) dealers in India since April 2004. The number of SKO dealers in India as

in April 2010 is 6615 as against 6547 in April 2004. However the number SKO

dealership has gone down since April 2008 from 6624 to 6615 in April 2010.

IOCL is the market leader with respect to number of SKO dealers in India.

IOCL has an extensive network of 3,963 dealers out of the total 6,613 dealers in

India. IOCL commands almost 60 percent market share. The trend of SKO

dealers' growth in India and the market share of SKO dealership in India is as

follows:



Conclusion:

As reflected above, the number of retail outlets (ROs) in India has increased

from 31,650 in April 2006 to 40,819 in January 2011. The number of LPG

distributors in India has increased to 9,686 as in 2010 from 6,477 in 2001. There

has been a very marginal increase in the number of superior kerosene oil (SKO)

dealers in India since April 2004. IOCL is the market leader in terms of

marketing and distribution of petroleum products with 47 percent share in retail

business, 53 percent share in the LPG distributorship and 60 percent share in

SKO dealership.



HPCL to get aggressive on refining, retailing - Renewable energy part of

Vision 2030

Hindustan Petroleum Corp Ltd (HPCL) has launched Vision 2030, a new set of

objectives to be achieved over the next 15 years. While this will include

aggressive numbers for refining capacity, retail outlets and pipelines, there will

also be an added focus on renewable energy options keeping in mind

environment regulations in the future. Vision 2030 is the brainchild of S Roy

Choudhury, Chairman and Managing Director, who retires at the end of this

month. The idea is to ensure that HPCL stays ahead of the curve in a

competitive environment, where private players such as Reliance Industries,

Essar and Shell will also be part of the fuel retail arena.

It is perhaps keeping this in mind that the company has roped in international

consultant McKinsey to study and recommend better integration of its

operations right from refining to marketing. At present, these are largely silo

functions, but going forward, greater synergies will become imperative for front

and back-end operations. The savings on costs are expected to be “quite

substantial” as a result. Choudhury, who took charge in August 2010, is upbeat

about the Barmer refinery in Rajasthan, which is scheduled for commissioning

over the next three years. “It‟s going to be a critical project for the north and

will enhance HPCL‟s presence in the region,” he said. The Rajasthan refinery

will kick off with a capacity of 9 million tonnes (mt), but this can be

comfortably doubled to 18 mt.



The other critical pillar for the north is the 9-mt Bhatinda refinery, a joint

venture between HPCL and the Lakshmi Mittal group. Its capacity, likewise,

can be enhanced to 18 mt with the added prospects of supplying products to

Pakistan. All it takes is building a pipeline from Bhatinda to Lahore for supply

of petrol and diesel, says Choudhury. In reality, though, this will need a formal

trade pact to be formalised between India and Pakistan. In the meantime, the

Bhatinda and Barmer refineries will cater to demand for products in Punjab,

Rajasthan, Delhi, Uttar Pradesh and Bihar.

From Choudhury‟s point of view, the Barmer refinery is as relevant since it will

have an integrated facility for petrochemicals. “It is definitely an interesting

business stream for the future,” he says. HPCL will also increase the capacity of

its Vizag refinery to 15 mt and this will be its single largest facility by 2017.

Along with Mumbai, Bhatinda and Barmer, the company hopes to have 40 mt in

place by that time. The next phase of expansion will see Bhatinda and Barmer

double capacities, while work on a new west coast refinery could also kick off.

All this is part of Vision 2030, where HPCL is expected to have 70 mt of

refining capacity in its kitty.

Choudhury is pleased that his tenure saw the company strengthen its

infrastructure base, comprising pipelines, terminals and retail outlets. The recent

tie-up with the Shapoorji Pallonji group for an LNG terminal in Gujarat is

expected to kick-start the process of a larger road map for gas distribution

across the country. On March 1, Nishi Vasudeva takes over from Choudhury

and will become the first woman to be at the helm of affairs in a public sector

oil company.



DATA INTERPRETATION

1. TABLE SHOWING NUMBER OF RESPONDENTS SURVEYED

NO OF RESPONDENTS 100

MALE 73

FEMALE 27

MALE PERCENTAGE 73%

FEMALE

PERCENTAGE 27%

INTERPRETATION –

This graph clearly shows that number of male respondents (73%) is more

than women (27%) respondents.

INFERENCE

This indicates that female respondents are less as compared to men.



GRAPH SHOWING THE NUMBER OF RESPONDENTS

SURVEYED

MALE 73%

FEMALE 27%



2. TABLE SHOWING THE AGE GROUP OF RESPONDENTS

AGE GROUP NO OF

RESPONDENTS

PERCENTAGE

15-25 11 11%

25-35 13 13%

35-45 19 19%

45+ 57 57%

TOTAL 100 100%

INTERPRETATION

The graph shows that the respondents are maximum (57%)in the 45+ age

group followed by 35-45 age group (19%). 13% are of 25-35 age group while

only 11% of them were of 15-25 age group.

INFERENCE

There are more number of respondents from age group of 45+ as

compared to other age groups.



GRAPH SHOWING THE AGE GROUP OF RESPONDENTS

0

10

20

30

40

50

60

15-25 25-35 35-45 45+



3. TABLE SHOWING THE OCCUPATIONS OF RESPONDENTS

OCCUPATION NO OF

RESPONDENTS

PERCENTAGE

DAILY WAGE

WORKER

30 30%

COLLEGE

STUDENT

9 9%

DRIVER 34 34%

OTHERS 27 27%

TOTAL 100 100%

INTERPRETATION

Out of 100 respondents 30% of them are daily wage workers while 34%

are drivers. Only 9% of them were students while rest others (27%) were doing

other occupations.

INFERENCE

Most of the respondents are either drivers or daily wage workers. Only a

few were students and others did various other occupations.



GRAPH SHOWING THE OCCUPATIONS OF RESPONDENTS

DAILY WAGE WORKER

30%

COLLEGE STUDENT

9% DRIVER

34%

OTHERS 27%



4. TABLE SHOWING FAMILY INCOME OF RESPONDENTS

INCOME NO OF RESPONDENTS

LESS THAN RS 10,000 22

RS 10,000 – RS 15,000 29

RS 15,000 – RS 20,000 35

RS 20,000 + 14

TOTAL 100

INTERPRETATION –

Most of the respondents (35%) are from the income

group of RS 15,000 – RS 20,000 in rural areas, followed by 10-15,000

income group (29%). There were 22% from income group of <10,000

and least from 20,000+ income group (14%).

INFERENCE

Respondents with income ranging from 15 to 20 thousand were

highest followed by others.



GRAPH SHOWING FAMILY INCOME OF RESPONDENTS

22

29

35

14

LESS THAN RS10,000

RS 10,000 - RS15,000

RS 15,000 - RS20,000

RS 20,000+



5. TABLE SHOWING THE BRAND OF PETROL & DIESEL USAGE

OF RESPONDENTS

BRAND NO. OF PEOPLE PERCENTAGE

HP 29 29%

IOL 31 31%

SHELL 17 17%

OTHERS 23 23%

TOTAL 100 100%

INTERPRETATION

29% of respondents use HP products while 31% of

respondents IOL products. 17% of respondents are customers of shell and

rest others (23%) use other brands of petrol & diesel products.

INFERENCE

Most of the respondents use IOL products followed by

HP product users. While only a few use SHELL products and other brand

of fuels.



GRAPH SHOWING THE BRAND OF PETROL & DIESEL

USAGE OF RESPONDENTS

HP 29%

IOL 31%

SHELL 17%

OTHERS 23%



6. TABLE SHOWING NUMBER OF HP CUSTOMERS WITH

REFERENCE TO THE SURVEY

OPINION NO OF

CUSTOMERS

PERCENTAGE

YES 29 29%

NO 71 71%

TOTAL 100 100%

INTERPRETATION

Out of the surveyed people 29% of the respondents are customers of HP

while others (71%) are not.

INFERENCE

Out of surveyed respondents most of them are not the customers of HP

while only a few are.



GRAPH SHOWING NUMBER HP CUSTOMERS WITH REFERENCE

TO THE SURVEY

YES 29%

NO 71%



7. TABLE SHOWING THE SATISFACTION LEVEL OF HP

CUSTOMERS

OPINION NO OF

CUSTOMERS

PERCENTAGE

VERY GOOD 2 7%

GOOD 12 41%

AVERAGE 15 52%

NOT SATISFIED 0 0

TOTAL 29 100%

INTERPRETATION

7% of the surveyed customers of HP are very much satisfied with the

level of service provided by HP, while 41% feel their service is good and rest

(52%) feel the service being provided is average. None of the HP customers felt

that the service being provided is poor.

INFERENCE

Out of surveyed respondents on satisfaction level of HP products majority

of them rated HP as an average company. While other felt that their products

are good and only a handful of customers were fully satisfied with the HP

products.



GRAPH SHOWING THE SATISFACTION LEVEL OF HP

CUSTOMERS

7%

41% 52%

0%

VERY GOOD GOOD AVERAGE NOTSATISFIED



8. TABLE SHOWING THE KIND OF VEHICLES RESPONDENTS

USE

VEHICLE NO OF

RESPONDENTS

PERCENTAGE

2 WHEELER 46 46%

4WHEELER 7 7%

LARGE VEHICLES 28 28%

OTHERS 19 19%

TOTAL 100 100%

INTERPRETATION

The graph clearly suggests that majority (46%) of the respondents

use 2 wheelers followed by large vehicle users (28%). Only 4% of respondents

use 4 wheelers while the remaining (19%) use other types of vehicles.

INFERENCE

Most of the respondents ride on a 2 wheeler while next majority

respondents are large vehicles drivers. A few drive/ride other type of vehicles

and only a handful of them own a car.



GRAPH SHOWING THE TYPE OF VEHICLE THE RESPONDENTS

USE

2 WHEELER 46%

4 WHEELER 7%

LARGE VEHICLES 28%

OTHERS 19%



9. TABLE SHOWING THE AVERAGE DISTANCE TRAVELLED

BY RESPONDENTS

DISTANCE NO OF

RESPONDENTS

PERCENTAGE

100-200 KMS 3 3%

200-300 KMS 11 11%

300-400 KMS 25 25%

400+ KMS 61 61%

TOTAL 100 100%

INTERPRETATION

Out of 100 respondents 61% of them drive their vehicle over 400 kms

and 25% of them drive between 300-400 kms. 11% use their vehicles to travel

between 200-300 kms while only 3% use their vehicle to travel the distance of

100-200 kms. All the distance travelled is calculated on monthly basis.

INFERENCE

A majority of the respondents drive their vehicle for over 400 kms. While

some of them drive between 300-400 kms. Only a few use their vehicle to travel

less than 300 kms.



GRAPH SHOWING THE AVERAGE USAGE OF VEHICLES OF

RESPONDENTS

3% 11%

25%

61%

100-200 KMS 200-300 KMS 300-400 KMS 400+ KMS



10. TABLE SHOWING THE TIMELY VISITING OF RESPONDENTS

TO PETROL BUNKS

TIMELY VISITING NO OF

RESPONDENTS

PERCENTAGE

DAILY 8 8%

WEEKLY 77 77%

½ MONTHLY 15 15%

TOTAL 100 100%

INTERPRETATION

Out of surveyed respondents 8% of them visited the petrol bunks daily

while 77% of them visited on weekly basis. The rest (15%) visited once in 15

days to petrol bunks.

INFERENCE

Most of the respondents visit the petrol bunks on weekly basis. While a

few visit ½monthly and daily basis.



GRAPH SHOWING THE TIMELY VISITING OF

RESPONDENTS TO PETROL BUNKS

0

10

20

30

40

50

60

70

80

90

DAILY WEEKLY 1/2 MONTHLY



11. TABLE SHOWING THE OPINION OF RESPONDENTS ON

AVAILIBILITY OF HP PRODUCTS

EASY AVAILABLE NO OF

RESPONDENTS

PERCENTAGE

YES 66 66%

NO 34 34%

TOTAL 100 100%

INTERPRETATION

66% of respondents feel that HP products are easily available to them

while 34 % gave the opposite response.

INFERENCE

Most of the respondents feel that HP products are easily available to them

while a few doesn‟t feel the same.



GRAPH SHOWING THE OPINION OF RESPONDENTS ON

AVAILIBILITY OF HP PRODUCTS

YES 66%

NO 34%



12. TABLE SHOWING THE SATISFACTION LEVEL OF HP

CUSTOMERS ON QUALITY OF SERVICE PROVIDED BY THE

STAFF

OPINION NO OF

RESPONDENTS

PERCENTAGE

YES 23 79%

NO 6 21%

TOTAL 29 100%

INERPRETATION

79% of HP customers were satisfied with quality of service provided by

the staff at petrol bunks, while 21% were unsatisfied with the service provided

by the staff.

INFERENCE

Majority of the respondents are satisfied with the service provided by the

staff while others are not.



GRAPH SHOWING THE SATISFACTION LEVEL OF HP

CUSTOMERS ON QUALITY OF SERVICE PROVIDED BY

STAFF

YES 79%

NO 21%



SUMMARY OF FINDINGS AND CONCLUSIONS

1. The numbers of female respondents are less as compared to men.

2. There are more number of respondents from age group of 45+ as

compared to other age groups.

3. Most of the respondents are either drivers or daily wage workers. Only a

few were students and others did various other occupations.

4. Most of the respondents earned between 15,000-20,000 RS per month

followed by others.

5. Most of the respondents use IOL products followed by HP product users.

While only a few use SHELL products and other brand of fuels.

6. Out of surveyed respondents most of them are not the customers of HP

while only a few are.

7. Out of surveyed respondents on satisfaction level of HP products majority

of them rated HP as an average company. While other felt that their

products are good and only a handful of customers were fully satisfied

with the HP products.



8. Most of the respondents ride on a 2 wheeler while next majority

respondents are large vehicles drivers. A few drive/ride other type of

vehicles and only a handful of them own a car.

9. A majority of the respondents drive their vehicle for over 400 kms. While

some of them drive between 300-400 kms. Only a few use their vehicle to

travel less than 300 kms.

10. Most of the respondents visit the petrol bunks on weekly basis. While a

few visit ½monthly and daily basis.

11. Most of the respondents feel that HP products are easily available to them

while a few doesn‟t feel the same.

12. Majority of the respondents are satisfied with the service provided by the

staff while others are not.

CONCLUSION

Outcome of the study has lot of positive feedback from the

respondents. However the company needs to open some more outlets and

has to concentrate on youths. The rural marketing has enormous scope.



RECOMMENDATIONS AND SUGGESTIONS

1. Try to concentrate on retaining female customers and concentrate on

male customers too.

2. Try to attract more young customers.

3. Try to improve the quality of products.

4. Open more and more HP outlets in rural areas.

5. Train the staff to improve their quality of service and approach

towards the customers.

6. Create awareness about the petroleum products in rural areas.

7. Try to remind the regular customers when their visit is due weekly or

bimonthly to refill.

8. As majority of the customers are driving two wheelers. Formulate

strategy to attract them.



A PUBLIC OPINION ON SERVICES PROVIDED BY HINDUSTAN

PETROLEUM CORPORATION LIMITED IN RURAL AREAS

QUESTIONNAIRE

Respected sir/Madam,

I am AJIT.D.SAWANT studying in S.R.N Adarsh College. As a part

of study, I am conducting a survey on “services provided by Hindustan

Petroleum Corporation Limited in Rural areas” in partial fulfillment of the

requirement for the award of Bachelor of Business Management course to the

Bangalore University. It would be grateful if you answer the following

questions.

1. NAME - __________________________________

2. GENDER - a) Male b) Female

3. AGE –

a) 15-25 b) 25-35 c) 35-45 d) 45+

4. OCCUPATION –

a) Daily wage worker b) College student

c) Driver d) Others



5. What is your family income?

a) Less than Rs 10,000 b) Rs 10,000 - Rs 15,000

c) Rs 15,000 - Rs 20,000 d) Rs 20,000+

6. Which brand of petrol or diesel do you prefer?

a) HP b) Indian Oil

c) Shell d) Others

7. Are you a customer of HP?

a) Yes b) No

8. If yes, from how long are you using HP products?

a) 1-5 years b) 5-10 years

c) 10-15 years d) 15+

9. Are you satisfied with HP products or services?

a) Very Good b) Good

c) Average d) Not Satisfied

10. What kind of vehicle are you using?

a) 2 wheeler b) 4 wheeler

c) Large vehicles d) others



11. What is the average usage of your vehicle in a month?

a) 100-200 kms b) 200-300 kms

c) 300-400 kms d) 400+ kms

12. How often do you visit petrol bunks?

a)Daily b)Weekly c)1/2 monthly

13. How long do you need to travel to fill HP petrol/diesel?

Specify _____________________________________

14. Is HP products easily available to you?

a) Yes b) No

15. Are you satisfied with the quality of services provided by the staff?

a) Yes b) No

16. Do you suggest any improvement for HP in the following areas?

a) To improve service _______________________________

b) To open new outlets ______________________________

c) To increase working hrs ___________________________

d) TO train the staff _________________________________

THANK YOU



BIBLIOGRAPHY

1. Primary Research –

I had visited Sri Venkus & Co the Chamrajpet outlet of Hindustan

Petroleum Corporation Limited where the branch manager Mr. G

Ramesh gave their valuable time and provide me with some very vital

information.

2. Secondary Research -

WEBSITES -

www.hindustanpetroleum.com

www.petroleum.nic.in

www.google.co.in

www.infraline.com

http://www.ruralmarketing.org/

BOOKS -

MARKETING MANAGEMENT, 2nd SEM BBM.

MARKETING OF INDUSTRIAL GOODS, 6tSEMBBM.

BUSINESS RESEARCH METHODS, 5th SEM BBM.

www.hindustanpetroleum.com

www.petroleum.nic.in

www.google.co.in

www.infraline.com

http://www.ruralmarketing.org/

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