BPCL: LEANING HEAVILY ON MARKETING
Article Abstract:
Deregulation in the petroleum product sector would improve refining margins of companies by allowing them import parity prices. Bharat Petroleum Corporation (BPCL), which is the only company among the three integrated refining and marketing companies, plans to focus on marketing activities. BPCL has a 20 percent market share and has its retail outlets spread across the country. BPCL's high value added lighter fuels like aviation turbine fuel, petrol and liquefied petroleum gas yield better margins. BPCL produced only 7.59 million tonnes of petro-products but sold 15.78 million tonnes in 1996-97. The company has only one refinery at Mumbai to process six million tonnes of oil and it imports or borrows from other oil companies. The capacity utilisation at the refinery has been over 122 percent in the last three years. Purchases of petroleum products from other refineries would be reduced or eliminated after the marketing of petro-products are deregulated. With these conditions, BPCL will succeed in the market only if it builds new capacities before the market is deregulated. BPCL has already formed joint ventures with IBP for a three million tonne Numaligarh refinery, with Oman Gas for a six million tonne Bharat Oman refinery, and with Shell for a seven million tonne Bharat Shell refinery. BPCL's capacity share would be 18 percent even after commissioning of all these projects. BPCL also plans to construct a pipeline which would carry petroleum products from Mumbai to central India. BPCL stands fourth in the lubricant sales in India with a 7.5 percent market share. After losing its share steadily, the company has tied-up with Shell to market Shell's range of lubricants which has 3.5 percent market share. (pc)
Comment:
Plans to focus on marketing activities being the only co among the 3 integrated refining & marketing co(s)
Publication Name: Financial Express Investment Week
Subject: Business, international
ISSN: 0015-2005
Year: 1998
User Contributions:
Comment about this article or add new information about this topic:
BHARAT PETROLEUM CORPORATION (BPCL)
Article Abstract:
The government of India has disinvested its stake in Bharat Petroleum Corporation Ltd (BPCL) from 100 percent to 66 percent and would further dilute it to 51 percent. BPCL has one refinery located near Mumbai, port facilities at six locations and a marketing network of depots, LPG bottling plants, superior kerosene oil (SKO), light diesel oil (LDO) dealers and retail outlets. BPCL produced 7.41 million tonnes of petroleum products with a crude throughput of 7.59 million tonnes in 1996-97. During the last four years, BPCL has achieved capacity utilisation of 120 percent. BPCL sold 15.3 million tonnes of petroleum products in 1996-97. Even though the company's share in India's production of refined products is 13 percent it accounts for 20.4 percent of petroleum products sold. The balance is accounted for by buying the products from other refineries. The company has two lubricants blending plants with a combined capacity of 0.1 million tonnes and also has minor capacities to manufacture chemicals benzene and toulene which contribute more than one percent of its turnover. BPCL is planning to invest over Rs14 crore in three joint ventures grassroot refineries. The refinery at Bina has a capacity of six million tonnes per annum (tpa), three million tpa Numaligarh refinery and a seven million tpa UP refinery. BPCL is also planning to set up a 250 kilometres product pipeline between Mumbai and Manmad with Rs4 billion investment, and hydro desulphurisation facility with Rs6.2 billion investment. (pc)
Comment:
Reduces govt-owned stake from 100% to 66% & would further dilute it to 51%
Publication Name: Financial Express Investment Week
Subject: Business, international
ISSN: 0015-2005
Year: 1998
User Contributions:
Comment about this article or add new information about this topic:
BPCL: A QUICK GLANCE
Article Abstract:
Bharat Petroleum Corporation Ltd's (BPCL) net profit has increased to Rs4,276.50 million on net sales of Rs163,162.50 million for 1996-97 from net profit of Rs3,857.80 million on net sales of Rs136,649.50 million for 1995-96. (pc) ------------------------------------------------------------ Bharat Petroleum Corporation Ltd: Financial Results ------------------------------------------------------------ Particulars 1996-97 1997-98 (Rs In Millions) ------------------------------------------------------------ Net Sales 136,649.50 163,162.50 ------------------------------------------------------------ Other Income 2,006.30 1,577.90 ------------------------------------------------------------ Operating Profit 9,105.60 9,798.80 ------------------------------------------------------------ Net Profit 2,668.50 4,276.50 ------------------------------------------------------------ Total Debt 5,243.80 13,608.10 ------------------------------------------------------------ Total Assets 38,628.20 54,246.50 ------------------------------------------------------------ Investments 1,658.00 2,448.00 ------------------------------------------------------------
Comment:
Net profit has increased to Rs4,276.50 mil on net sales of Rs163,162.50 mil for 1996-97
Publication Name: Financial Express Investment Week
Subject: Business, international
ISSN: 0015-2005
Year: 1998
User Contributions:
Comment about this article or add new information about this topic: