Summer Internship Project

GROWTH TRENDS OF PETROLEUM PRODUCTS & COST BENEFIT

ANALYSIS OF DIFFERENT PRODUCT INPUT MODESPresented by –

V. Arun Kumar

(Roll N0 : 15070)

PGDM (2015-17)

Calcutta Business School

Indian Oil & Gas Industry

Company ProfileThe Company was incorporated in the name of Standard Vacuum Refining

Company of India Limited on July 5, 1952.

Hindustan Petroleum Corporation Limited comes into being after the takeover and merger of erstwhile ESSO Standard and Lube India Limited in 1974.

HPCL operates two major refineries – Mumbai (West Coast). Vishakhapatnam (East Coast).

Largest lube refinery in India producing Lube Base Oils of International Standards. This lube refinery accounts for over 40% of India's total lube base oil production.

The marketing network of HPCL consists of 13 zonal offices in major cities and 101 regional offices.

HPCL has state of art information technology infrastructure to support its core business. (Source:- www.hindustanpetroleum.com)

Company Products

HP LUBRICANTS 

Automotive Grades Industrial Grades Industrial Specialties Greases

Automotive Grades 

Engine Oils Gear Oils Transmission Oils Defense Grades Auto Specialties

Engine Oils 

Diesel Engine Oils Petrol Engine Oils Natural Gas Engine Oils HP LAAL GHODA 20W40 HP GASENOL 20W50HP MILCY SYNTHETIC 15W40 FOUR WHEELER FOUR STROKE HP AUTO SHAKTI HYLUBE HDX MG 20W 40 HP CRUISE -- HP RACER 2 LOW SMOKEHP MILCY SUPER 20W 40 1) CLASSIC 20W 40 HP RACER 4 20W40HP X-3 10W KLT 2) 15w 40 HP BAJAJ GENUINE OILHP MILCY TURBO 15W 40 3) CLASSIC TATA 20W40, 20W50 GENUINE OIL 20W 40

(Source:- www.hindustanpetroleum.com)

Research Objectives

Primary objective of this project is to understand the growing need of petroleum products.

Secondary objective of this is to find the cheapest mode of transportation of petroleum products between coastal and railway .

Literature review is done through secondary data, and a greater share of inputs and data was provided by the employees of the HPCL.

Research Methodology

INDIA’S OIL DEMAND

India’s energy consumption stood at 638Mtoe in 2014–15, a growth of 7.1% from the 2013–14 levels.

India’s real GDP has been growing by 5-10% per year, up $110 billion in 2014.At 23% of total energy supply, Petroleum is India’s second largest source, half the market share of coal.

 India’s oil demand has risen 300,000 b/d, putting the country on track to surpass China in incremental growth for 2015.

INDIA’s GROWING DEMAND

India’s Consumption Of Oil

Impact Of Oil On India’s Fiscal Position

Down-Stream Petroleum Distribution

Modes of Transporting Petroleum Products

Comparison Of Different Modes of Transportation

COASTAL COST RAILWAY COST7000000

7200000

7400000

7600000

7800000

8000000

8200000

8400000

8600000

8800000

9000000

COASTAL Vs RAILWAY

Rs.

COST/BENEFIT ANALYSIS

Charter Cost

Bunker Cost

Port Charges

Maintenance Cost

Freight

Lease

Coastal Railway

Elements Of Cost

PROJECTED COST COMPARISON

Recommendation

The draft situation became critical in the last three months as DredgingCorporation of India (DCI), a central government outfit, employed only two to three dredgers during this period.

This would directly result into shortfall of the required quantity as per theprojected short fall there will be a shortage of 424111 kilo litres and the cost for the extra shortfall would be Rs. 2332615680 within 10 years.

Lack of proper connectivity, inadequate infrastructure, high capital cost andunfavourable taxation facility are some of the other major hindrances faced incoastal shipping.

Hence, Railway would be both economically and the best suited mode for transportation of large volumes of petroleum over long period of time.

Recommendation (Contd..)

THANK YOU