Hindustan Petroleum Corporation (HPCL) is a Fortune 500 company, with an annual turnover of Rs 1,16,428 crore and sales/ income from operations of Rs 1,31,802 crore during FY 2008-09, having about 20% market share in India and a strong market infrastructure. It is a Mega Public Sector Undertaking (PSU) with Navaratna status.
HPCL operates two major refineries producing a wide variety of petroleum fuels and 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 7.5 MMTPA. HPCL holds an equity stake of 16.95% in Mangalore Refinery & Petrochemicals, a state-of-the-art refinery at Mangalore with a capacity of 9 MMTPA. In addition, HPCL is constructing a refinery at Bhatinda, in the state of Punjab, as a joint venture (JV) with Mittal Energy Investments.
HPCL also owns and operates the largest lube refinery in the country 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 has earned 'Excellent' performance for fifteen consecutive years up to 2005-06, since signing of the first MOU with the Ministry of Petroleum and 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 which fall under the 'Excellent' category. HPCL's performance for the year 2008-09 also qualifies for 'Excellent' rating.
HPCL, over the years, has moved from strength to strength on all fronts. The refining output has increased three fold between 1984-85 to 2007-08, rising from 4.47 MMTPA in 1984-85 to 13.70 MMTPA currently. HPCL's vast marketing network consists of 13 zonal offices in major cities and 90 regional offices facilitated by a supply and distribution infrastructure comprising terminals, aviation service stations, LPG bottling plants, and inland relay depots and retail outlets, lube and LPG distributorships. The refining capacity steadily increased from 5.5 MMTPA in 1984/85 to 13 MMTPA presently. On the financial front, the turnover grew from Rs. 2687 crore in 1984-85 to an impressive Rs 1, 16,428 crore in FY 2008-09.
HPCL has successfully integrated information technology in its activities at different levels. The enterprise resource planning (ERP) system is now operational on JDEdwards, an Oracle product, across the corporation.
1952 - The company was incorporated in the name of Standard Vacuum Refining Company of India Limited on July 5, 1952
1962 - On 31st March, the name was changed to ESSO Standard Refining Company of India Limited.
1974 - Hindustan Petroleum Corporation Limited comes into being after the takeover and merger of erstwhile Esso and Lube India Undertaking
1976 - Caltex Oil Refining Ltd is taken over by the Government of India and subsequently merged with HPCL in 1978.
1979 - Kosan Gas Company, the concessionaries of HPCL in the domestic LPG market, are taken over and merged with HPCL.
Business areas of the company:
Refineries, Aviation Bulk Fuels And Specialities, International Trade, LPG (HP Gas), Lubes (HP Lubes), Retail (Petrol Pumps, etc.), Exploration & Production, Alternate Energy
Awards and achievements:
• HPCL Wins CIO 100 Award for the fourth Time in a Row
Hindustan Petroleum Corporation has been awarded the “CIO 100” Award for the fourth consecutive year. The award was presented to HPCL’s ED-Information Systems by renowned IT visionary Kiran Karnik at a grand ceremony held on September 4, 2009 at Goa.
• Indira Gandhi Rajbhasha Puraskar
HPCL has been conferred with the Indira Gandhi Rajbhasha Puraskar [third prize] by Govt. of India, Ministry of Home Affairs - Rajbhasha Vibhag for the year 2007-08 under PSU category for excellent performance in “B” Region.
• Enterprise Connect Award
HPCL received the Enterprise Connect Award 2009 which recognizes and rewards excellence among CIOs . The awards are instituted by CIOL (Cybermedia India Online Ltd, India's leading & first IT portal addressing the information needs of the IT community) in association with Dataquest magazine.
• SAIL HR Excellence Award
HPCL has bagged the SAIL HR Excellence Award under the “Large Scale Organisation” category (manpower strength above 5000).
• Reader’s Digest ‘Trusted Brand Gold Award
HPCL has bagged the Reader’s Digest “Trusted Brand” Gold Award 2009 in Petrol Station Category. The coveted Trusted Brand Awards by the reputed publication, Reader’s Digest are based on extensive market research carried out by Nielsen Research.
• Golden Peacock Corporate Governance Award
The award is conferred by ‘World Council for Corporate Governance’ (WCFCG), UK and Institute of Directors, India. The award was presented at the 9th International Conference on Corporate Governance held at London. This annual award is conferred to companies which demonstrate benchmark standards and excellence in corporate governance.
• CIO 100 award
HPCL has been awarded the CIO 100 Award for the third consecutive year. The annual award program recognizes organizations that exemplify the highest level of operational and strategic excellence in information technology (IT). The award theme ‘The Bold 100’ recognizes those executives and organizations who embrace great risk for the sake of great reward.
• India Star
The corporation has been conferred with India Star 2008, a national award (the highest recognition) for excellence in packaging in India in the Consumer Pack Category for marketing lubricant oils in PET bottles. HPCL is selected for this innovation award in packaging from a list of 357 entries received.
• OISD Safety Award
HPCL bagged two safety awards from Oil Industry Safety Directorate (OISD) as the ‘Best Performer’ for the year 2007-08, one under the category of ‘LPG Marketing Organizations’ and the other amongst ‘Lube Oil Blending Organizations’.
• National Award for Excellence in Cost Management
HPCL was conferred with the National Award for Excellence in Cost Management from the Institute of Cost Accountants of India (ICWAI). HPCL has won the second award in the Public Sector – Manufacturing (Organization) – Turnover more than Rs 1000 crore category of National Award for Excellence in Cost Management.
• Greentech Environment Excellence Award
HPCL’s has been awarded 15 ‘Greentech Environment Excellence Award’ for the year 2008 at the 9th Annual Global Environment Conference held at Goa.
• Best HR Practices in ‘People Management’
Awarded by Amity International Business School for HPCL’s comprehensive HR practices. HPCL bagged the award among several other organisations that were researched for best HR practices.
• NDTV Profit Business Leadership Award
HPCL has been conferred the coveted ‘NDTV Profit’ Business Leadership Award in the category of Oil & Gas. The award was presented by Union finance minister, P Chidambaram and was received by the company's CMD, Arun Balakrishnan.
• Reader’s Digest ‘Trusted Brand Asia Platinum’ Award’
Awarded in the Petrol Station category, this is the third year in succession that HPCL has received the trusted brand award. The Reader’s Digest Trusted Brand awards are based on survey carried out by ‘The Nielsen Company’ and reflect the consumers’ choice of their most trusted and favorite brands.
HPCL has been awarded the CIO 100 Award for the third consecutive year. The annual award program recognizes organizations that exemplify the highest level of operational and strategic excellence in Information Technology (IT). This year’s award theme ‘The Bold 100’ recognizes those Executives and Organizations who embrace great risk for the sake of great reward.
• India Star
The Corporation has been conferred with India Star 2008, a National Award (the highest recognition) for excellence in Packaging in India in Consumer Pack Category for marketing Lubricant Oil in PET bottle.
HPCL bagged 2 Safety Awards from Oil Industry Safety Directorate (OISD) as the ‘Best Performer’ for the year 2007 – 08, one under the category of ‘LPG Marketing Organizations’ and the other amongst ‘Lube Oil Blending Organizations’.
HPCL was conferred with the National Award for Excellence in Cost Management from the Institute of Cost Accountants of India (ICWAI). HPCL has won the Second Award in the Public Sector – Manufacturing (Organization) – Turnover more than Rs. 1000 Crores category of National Award for Excellence in Cost Management.
HPCL’s has been awarded 15 ‘Greentech Environment Excellence Award’ for the year 2008 at the 9th Annual Global Environment Conference held recently at Goa. HPCL’s Mumbai & Visakh Refineries were awarded the Greentech ‘Gold’ Award in Petroleum Refining Sector.
Greentech Foundation’s Environment Excellence Awards are presented to Organizations & Individuals as a mark of recognition for the significant contribution made towards protection, preservation & improvement of environment.
Awarded by Amity International Business School for HPCL’s comprehensive HR practices at the Amity Annual Global HR Summit.. HPCL bagged the award among several other organisations that were researched for best HR practices.
• ENCON Award
HPCL's Visakh Refinery has been awarded the First Prize for Energy Conservation in Petroleum Refining Sector for the year 2007.
• Forecourt Retailer of the year 2007 award: Star Retailer Awards
HPCL has been awarded Forecourt Retailer of the year 2007 Award for the second year successively. This Recognition is testimonial to the trust placed on HPCL by the millions of consumers.
• EMPI-Indian Express Indian Innovation Awards- ' Silver Trophy'
Hindustan Petroleum Corporation (HPCL) has been awarded the Silver Trophy at the EMPI-Indian Express Indian Innovation Awards Ceremony. The Trophy and Citation was presented by His Excellency Dr. A.P.J Abdul Kalam, former President of India.
• Best Work Place Practices
HPCL was awarded the prestigious 'Asian CSR Awards 2007' under the 'Best Work Place Practices' category. This award was co-presented by 'Asian Institute of Management' and 'Chemoil'. HPCL emerged victorious among 186 entries from 117 companies across 14 countries. HPCL has bagged this Award for the second time after 2004.
• Reader’s Digest“Trusted Brand Gold Award”
HPCL has been awarded in the 'Gas Station category in India' for the year 2007 in recognition of Club HP Brand. The Trusted Brand Survey, with unaided interviews as the modality, is regarded as the Ultimate Seal of Consumer Approval by a large customer base across the country.
• CNBC Awaaz Consumer Award
HPCL's branded petrol 'Power' has been voted as the Most Preferred Auto Fuel consecutively for the second year at the CNBC Awaaz Consumer Award 2007. HPCL has been selected as 'India's Most Preferred Auto Fuel' based on a comprehensive study conducted by The Nielsen Company on behalf of CNBC Awaaz.
• Most Admired Retailer of the Year - Forecourt Retailing Award
HPCL has won the 'Most Admired Retailer of the Year' award at the Images Retail Awards 2007, a ceremony to felicitate India's top Retail companies, professionals and concepts. HPCL has won this award for the second consecutive year.
• Golden Peacock Award for Excellence in Corporate Governance
HPCL has been conferred the 'Golden Peacock Award for Excellence in Corporate Governance' by the 'World Council For Corporate Governance' (WCFCG) and the Institute of Directors (IOD). The winners were selected through an elaborate multilevel and transparent assessment process.
• CIO 100 Award
After the inaugural year of the award in 2006, HPCL won it a second time in 2007.The award was given for 'Project Parivartan' undertaken by HPCL and the extension of benefits of the ERP system to various stakeholders through the deployment of information portals, vendors & transporters and inauguration of e-payments.
• Amity HR Excellence Award
The 'Amity HR Excellence Award' has been conferred on HPCL on the occasion of Fourth Global HR Summit 2007 at Amity International Business School. The Award was conferred on HPCL for achieving enviable position of one of the best and most admired companies due to innovative strategies for Human Resource Management and Development.
• Safety Innovation Award 2007
HPCL's Santacruz (Mumbai) Aviation Service Facility (ASF) has been awarded the 'Safety Innovation Award 2007'. The Award was conferred by the Institution of Engineers (India), Safety & Quality Forum in recognition of HPCL's initiative for developing total Safety Culture & Innovation at the work place .
HPCL was awarded the OISD Safety Award for the year 2006-07 in the 'POL Marketing Organizations' category. The OISD Awards felicitate Excellence in Safety Operations at POL Depots, Terminals and other marketing installations including safety during transportation of the POL products.
• Golden Peacock Award for Excellence in Occupational Health & Safety
HPCL's Mangalore POL Terminal was awarded the Golden Peacock Award 2007 for Excellence in Occupational Health and Safety Management. The award, conferred by the World Environment Foundation and the Institute of Directors, New Delhi, recognizes the achievements and certifications of Mangalore Terminal such as ISO 9001:2000 for Quality Management Systems, ISO 14001:2004 for environment Management Systems and OHSAS 18001:1999 for occupational Health and Safety. Mangalore Terminal was the first Terminal in the Oil Industry to be awarded the OHSAS 18001:1999 in the year 2005.
• Greentech Foundation ‘Environment Excellence Gold Award’
HPCL's Palam Aviation Service Facility (ASF) has been awarded the 'Environment Excellence Award' by Greentech Foundation. Greentech Award is a cornerstone for outstanding performance by organizations in environmental management as well as industrial fire safety & security.
• DMA Erehwon Innovative HR Award
DMA Erehwon Innovative HR Award, co-founded by Delhi Management Association and Erehwon Innovation Consulting, Bangalore upholds organizations for taking HR idea from concept to reality with sustained long term results.‘Project Organization Transformation’ authored by HPCL’s Project ACE won the first prize for HR Initiatives. HPCL's entry was one of 8 short listed out of 83 entries and it was the only PSU among the finalists.
• Best Safe Industry Award
HPCL's Mangalore LPG Import Facility (MLIF) was awarded the 'Best Safe Industry Award' at the State Award Ceremony for its outstanding achievement in the field of Safety. The Award was conferred by Karnataka State Safety Institute, Department of Factories & Boilers on the occasion of the 36th National Safety Day, 2007.
• HPCL-Mittal Energy (HMEL)
JV with Mittal Energy Investments, an L N Mittal group company, for implementation of Guru Gobind Refinery.a greenfield refinery project located at Bhatinda, Punjab. HPCL and Mittal Energy Investments each have 49% stake, balance 2% with financial institutions. The project is expected to be completed by 2011.
• Hindustan Colas (HINCOL)
It is a joint venture (JV) promoted with Colas SA, France and was incorporated on July 17, 1995. The company manufactures International quality value-added bituminous products such as bitumen emulsions and cutbacks and modified bitumen. It currently operates seven manufacturing plants across India.
• Prize Petroleum Company
HPCL, in partnership with ICICI and HDFC, had formed this joint venture E&P company for participating in exploration and production of hydrocarbons. PPCL was incorporated on October 28, 1998. PPCL is also providing consultancy services related to E&P. The company has signed a service contract with ONGC for development of marginal fields in the Cambay basin with 50% holding in the consortium. During the year, these fields produced 49,123 barrels of oil. PPCL has also entered into a Production Sharing Contract (PSC) with 50% stake in an onland marginal field at Sanganpur. During the year, there was a production of 1,426 barrels of oil from this field.
• South Asia LPG Co (SALPG)
It is a JV with Total Gas and Power India (a wholly-owned subsidiary of Total of France) with HPCL's equity participation of 50%. The company was incorporated on November 16, 1999.
• Bhagyanagar Gas (BGL)
It is a JV 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. It was incorporated on August 22, 2003. HPCL and GAIL, each, hold 22.5% of the equity while 5% is held by the government of Andhra Pradesh and 50% by strategic/financial investors.
• Aavantika Gas
Incorporated on June 7, 2006, it 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 (PIL)
It is a JV formed in May 1997, with 50% equity by Oil PSUs, HPCL holding 16% equity and balance 50% being taken by private companies/financial institutions. PIL, with different oil companies, implement individual pipeline projects-like Petronet MHB, through Special Purpose Vehicles (SPVs).
• Petronet MHB (PMHBL)
Promoted (PMHBL) with Petronet India (PIL) for the construction and operation of Mangalore-Hassan-Bangalore product pipeline. HPCL and PIL each have 26% equity participation. ONGC with 23% equity has joined as a strategic partner. PMHBL obtained Integrated Management System Certification covering Quality Management System-ISO-9001, Environmental Management system - ISO - 14001 and OHSAS - 18001 in any PSU pipeline or PIL pipelines.
• Mangalore Refineries and Petrochemicals (MRPL)
Commissioned in March 1996 with a refining capacity of 3 MMTPA capacity that was enhanced to 9 MMTPA during 1999-2000. 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.
• CREDA-HPCL Biofuel (CHBL)
CREDA-HPCL Biofuel 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. HPCL holds 74%, and CREDA holds 26% shareholding in CHBL.
• Sushrut Hospital and Research Centre
HPCL is a major constituent of the Chembur Hospital Project Trust (CHPT) -- a public charitable trust, which manages the hospital. Sushrut Hospital is a 90 bedded, tertiary referral acute care private hospital. It is the first of its kind in India for handling burns and extended trauma care with state-of-the-art facilities.
Clientele (Top 5 Customers amongst others)
• Major Domestic Customers -- NACIL, Kingfisher, Paramount,SpiceJet, Indigo
• Major International Customers -- Delta Airlines, Lufthansa, Air France, British Airways, Virgin Atlantic
• Major Corporate Customers - Reliance Commercial Dealers, GMR Aviation, Jubliant Enpro, Adani Group, Jindal Steel Works
• Major Charter Customers -- United Helicharters, Global Vectra, Bjets
• Major Government Customers -- Indian Air Force, Indian Army, Indian Navy, Border Security Force, Coast Guard
Major Ongoing Projects:
• New FCCU at Mumbai Refinery:• Lube Oil Base Stock (LOBS) upgradation project at Mumbai Refinery:• Diesel Hydro Treating (DHT) at Mumbai & Visakhapatnam refineries:• SPM Project at Visakh Refinery:• Resitement of Visakh Terminal:• Guru Gobind Singh Refinery Products Evacuation Project:• Ennore Terminal Project:
In the recent past, HPCL has commissioned some major projects like:
• Mundra-Delhi Pipe Line (MDPL): A 1056 km product pipeline connecting the port of Mundra in Gujarat to Delhi with tap-offs in between. Completed in 36 months at an cost of Rs 1757 crore. Dedicated to the nation on 3rd February 2009
• LPG Cavern Storage at Visakhapatnam by SALPG, a joint venture of HPCL: 60000 MT of LPG storage at a cost of Rs. 333 crores, commissioned in January 2008.
• Visakh-Vijayawada-Secunderabad Pipe Line (VVSPL): Length of pipeline: 571 Km, cost Rs. 841 crore, commissioned in 2002.