Ans.

1) Hindustan Petroleum
Introduction
Hindustan Petroleum Corporation Limited (HPCL) is an Indian oil and natural
gas company with its headquarters at Mumbai, Maharashtra. It has about 25% market-
share in India among public-sector companies (PSUs) and a strong marketing
infrastructure. Oil and Natural Gas Corporation, also second promoter of the company
(first promotor is The President of India), owns 51.11% shares in HPCL and others are
distributed amongst financial institutes, public and other investors. The company is
ranked 367th on the Fortune Global 500 list of the world's biggest corporations as of
2016. HPCL got removed from NIFTY 50 INDEX in March 2019. Recently on 24
October 2019 the company has conferred with Maharatna status.
Market Share
Hindustan Petroleum Corporation Limited (HPCL) is an Indian oil and natural gas
company with its headquarters at Mumbai, Maharashtra. It has about 25% market-
share in India among public-sector companies (PSUs) and a
strong marketing infrastructure.
HPCL refineries 
Without refining, the rich resources of crude petroleum of nature would remain latent.
Value-added products from crude petroleum like petrol, diesel, kerosene, liquefied
petroleum gas, naphtha and many more products would not be available for growth
and development of a nation.
HPCL refineries upgrade the crude petroleum into many value-added products and
over 300 grades of lubricants, specialties and greases. The Lubricating Oils Refinery
set up at Mumbai is largest lube refinery in India. It produces superior quality lube
base oils.
Supplier
Hindustan Petroleum Corporation Ltd. Is a supplier of oil and Liquefied petroleum
gas in all over India and also the company refine the cured oil which gave us the
petrol as well as diesel and also company have their own outlet all over the India.

Distribution channel
Hindustan Petroleum Corporation Limited is the 2nd largest lube marketer in the
country and the proud owner of India’s largest Lube Refinery. HPCL attaches great
significance to sustainable growth in this highly competitive lube market. In order to
improve its market share, HPCL has chartered an ambitious growth plan, targeting top
line CAGR of over 10% for the next five years.
In addition to the traditional sales channel of Retail Outlets Network and continued
focus on B2B segments, we have also established robust channels of Lube
Distributors (for Bazaar Network) and CFAs (for MSME segment). Similarly, for
tapping the growing potential of Rural & Semi urban markets, we have made
aggressive plans of appointing Rural Distributors. The first lot of such Distributors has
already been appointed in Uttar Pradesh & Chhattisgarh.
Appointment of New Channel Partners for Non-Domestic LPG Marketing
Hindustan Petroleum Corporation Limited is a leading Oil Marketing Company
dealing in marketing / refining of various petroleum products, including marketing of
Commercial LPG and Propane Supplies in Bulk for various industries viz. Steel,
Chemical, Textiles, Paint, Glass, Food, Ceramic, Extrusion etc. and ND Packed LPG
to retail customers and commercial and industrial establishments.

HP GAS has been a pioneer in the oil industry in Non-Domestic LPG sales and with
its "Ji-Haan" motto, serves lacs of Industrial and Commercial establishments across
the country. For a decade, HP Gas has maintained its market leadership in Non-
Domestic Bulk LPG trade, providing technical support and complete end to end FUEL
solutions to its esteemed customers through its channel partners. HPCL has its
modern, State/UT of the art, 48 electronic LPG Bottling Plants and 5000+ LPG
Distributorships located pan India to take care of the customers’ requirements.
 Industry Competitors

INDUSTRY COMPITITORS
(stock shares by industry, as of 27/05/2014, by BSE)

Company Open High Low Last PRV Change %CHG Net Profit
Name Price Price in Cr.
(2013)

BPCL 557.40 559.40 536.50 551.10 555.65 -4.55 -0.82 2642.90

Chennai 95.10 96.65 92.40 94.00 94.90 -0.09 -0.95 -96.80
Petro

Essar Oil 83.55 87.00 79.20 85.90 83.70 2.20 2.63 -1,180.44

HPCL 436.0 438.00 418.40 425.40 436.75 -11.35 -2.60 904.71

IOC 372.00 375.00 353.20 361.65 370.65 -9.00 -2.43 764.54
MRPL 70.00 70.20 66.70 67.90 69.90 -2.00 -2.86 -247.68
Reliance 1105.00 1106.0 1076.0 1087.75 1101.00 -13.25 -1.20 21,003.00
0 5

As you can see in the table that BPCL, HPCL IOC and Reliance having positive net
profit for the year 2013 and HPCL is on the second position in term of profit and on
the first positon reliance is there in the market.
Pestle Analysis on Petroleum Industry
PESTEL analysis is used by organizations for identifying the factors of external
environment of the market that could influence the organization and entire industry.
PESTEL analysis is formed by six macro-environment group of factors: political factors,
economic, social, technological factors, environmental factors and legal factors.

Political factors
Political factors are represented by the influence of a political entity (party, country,
organizations or other type of faction) on the national level, regional level or
international level. Most of the countries consider that the oil industry (upstream and
downstream) is a strategic point in political, economic and social needs of a country,
because this industry has a great influence on transport capacity, energy production,
industrial production, chemical production, agriculture and social welfare.
Economic factors
Economic factors are represented by the: influences of the supply and demand on the
oil price; influences of the supply or demand of the complementary goods; influence
of the supply and demand of substitute resources; the USD exchange rate (petrol-
dollar policy); the price of the oil barrel on the important stock exchanges; economic
situation on regional and global stages; value of the known reserves, interest rate for
financing; value of stock market indexes (DOW Jones, Standard Poor).
Social factors
Social factors are represented by demography, culture, ethnic structure, religion
structure, inter-cultural relation, structure of family, ideological view, literacy,
urbanization, income distribution, migration, use of communication technology,
cultural view to the different products.
Technological factors
Technological factors are represented by technologies, techniques and methods that
influence the activities within an organization (Palmer A. & Hartley B., 2009). The
technological factors could influence an organization from inside the industry, by
making the need to acquire the last technologies (by buying equipment), techniques
and methods (by hiring a trained human resource in new techniques or train the old
human resource with the new techniques and methods).

Environment factors
Environment factors are represented by the geographical position, landform, climate,
fauna, flora, rock structure and natural resource that are in case of petroleum
companies represented by oil reserves. Geographic position influence the activity of
oil companies because it defines the distances between exploitation, refiners and
consumers (for example, oil from Middle East can be transported half the world,
exploitation to refiners), or could influence the demand for oil because of transports,
international trade and migration.

Legal factors
Legal factors are represented by constitutions, laws, norms and regulations of the local
authorities, governments, international institutions, international communities
(European Union, the North American Free Trade Agreement, the African Union and
the Association of South East Asian Nations).
Ans.2) BCG Matrix of HPCL
Product of HPCL
 Liquefied petroleum gas  Bitumen
 Naphtha  Others
 Motor Spirit
 Hexane
 Propylene
 Mineral turpentine Oil
 Aviation turbine fuel
 Superior Kerosene oil
 High speed diesel
 JBO/WO
 Light diesel oil
 Lubes & Greases
 Furnace oil
 Low sulphur heavy stock

M Stars Question Mark

A
R Liquefied Petroleum Gas Naphtha
K
E Motor Spirit Superior Kerosene oil
T
High Speed Diesel Lubes & Greases
G
R
O Cash Cows Dogs
W
T Furnace oil JBO/WO
H
Bitumen Hexane
R Aviation turbine fuel Low sulphur Heavy stock
A
T
E

MARKET SHARE
The product category are being classified through annual report of HPCL from the
financial year 2018-2019. On the basis of annual report I be able category the product
into the BCG Matrix quadrant.