Move into new millennium with determination and vigour
Hindustan Petroleum Corporation Limited (HPCL) came into being in mid 1974 after the take over and the merging of the erstwhile Esso and Lube India undertakings. Caltex was taken over by the Government in 1976 and subsequently merged with HPCL in 1978. Kosan Gas Company, the concessionaires of HPCL in the domestic LPG market were taken over and merged with HPCL in 1979. HPCL thus came into being after merging four different organisations at different points of time.
Hindustan Petroleum Corporation Limited today is the second largest integrated oil Company in India-playing a significant role in the nation's economic development and growth. Against the background of economic liberalisation, HPCL is diversifying upstream and downstream into Exploration & Production and Power & Petrochemicals while at the same time strengthening infrastructural facilities ... the area of care competence being ENERGY MANAGMENT.
REFINING CAPACITY
Hindustan Petroleum Corporation Limited has 20% of the country's refining capacity. It operates two major refineries, on at Mumbai of 5.5 million metric tonnes per annum (MMTPA) capacity and the other at Visakhapatnam of 4.5 MMTPA capacity. The Corporation also has the largest Lube Refinery of 335000 MTPA which accounts for 4% of the  capacity in the country producing Lube base oils of International standards. 
SERVING ALL SECTORS
The Corporation produces the entire range of petroleum products and serves all sectors of the economy... industry, agriculture, transport, domestic public utilities and also major consumers like the railways, power plants, steel plants, defence, fertiliser plants, etc.
PRODUCTS AT A GLANCE
PETROL  DIESEL  LIGHT  DIESEL  OIL  LIQUEFIED PETROLEUM GAS  KEROSENE   AVIATION TURBINE FUEL NAPHTHA  FURNACE   OIL  BITUMEN  LOW  SULPHUR HEAVY STOCK  LUBES & GREASES  PROPYLENE 
SOUND  MARKETING INFRASTRUCTURE
Hindustan Petroleum Corporation Limited has 20% market share which is backed by a...
VAST MARKETING NETWORK

• 4 Zonal Offices
• 34 Zonal Offices (including 10 LPG Regional Offices) 
• 22 Terminals 
• 31 LTG Bottling Plants
• 9 Aviation Service Stations
• 4 Lube blending plants & a lube pipeline for base oil evacuation from the refinery 
• 90 Inland relay depots
• 4327 Retail outlets
• 1622 SKO/LDO dealerships 
• 1463 LTG distributorships 

In addition to the above, two pipelines i.e. the 161 kms long Mumbai-Pune Product Pipeline of 3.67 MMTPA capacity and the recently commissioned 350 kms long Visakh-Vijayawada pipeline of 4.1 MMTPA capacity, are used for transportation of MS. SKO, HSD and LDO to the terminals.
EXCELLENT TRACK RECORD
Hindustan Petroleum Corporation Limited has continuously recorded significant performance year after year. The Corporation has achieved an `Excellent' rating for the past 7 years in succession as per the MoU evaluation by the Government of India.
The Corporation has maintained high productivity in the Industry in terms of crude thruput per employee and low refining and marketing costs.
MOVING FAST FORWARD INTO THE FUTURE
In the coming years, HPCL envisages for itself an important role in the Oil Sector. Behind the entrepreneurial spirit is the team work that has concentrated on synergy at all levels. The Corporation has inhouse capabilities of conceiving, planning, developing and implementing large projects. The Corporation has envisaged an investment of Rs. 115 billion up to the end of the Ninth Plan Period (2001-02). The various ongoing and proposed schemes include modernisation and expansion of the existing refining capacity, value-added and improved quality products, new product pipelines, development of marketing and infrastructure facilities and investment in joint venture projects. The funding of these projects would be mainly through resources generated internally and from the Public Issue, warrant conversion and balance through loans.
With the help of additional refining capacity together with improved marketing and distribution infrastructure, HPCL is all set to increase its market share to around 25% by the turn of the century.
SYNERGY THROUGH JOINT VENTURES
Mangalore Refinery and Petrochemicals Limited. A major landmark was achieved during 1995-96 when MRPL, a JVC project with M/s. Indian Rayon and their associated group of companies was commissioned in March 1996, three months ahead of schedule. Government has approved expansion of capacity from  3 to 9 MMTPA. The project is progressing as per schedule.
Refinery at Bhatinda in Punjab 
A grass root refinery with 9 million tonnes capacity is being set up as a Joint Venture at Bhatinda in Punjab at an estimated cost of Rs. 110 billion. Work on the project which envisages a captive power plant and a cross country crude pipeline, has started.
Bitumen Emulsions
Hindustan Colas Ltd., formed with M/s Colas, S.A. of France, a global leader in bitumen emulsions, has commenced its second plant at Bahadurgarh near Delhi during March 1998. The first plant set up at Vashi, Navi Mumbai recorded a sales volume of 16000 MT during 1997-98.
LTC Infrastructure
HPCL proposes to build through a Joint Venture, the country's largest storage of LPG at Visakhapatnam. An underground cavern storage of 60,000 metric tonnes capacity is under consideration.
Exploration and Production
Prize Petroleum Co. Ltd., a new company which will engage in Exploration and Production activity has been incorporated. The Corporation will have an equity participation of 50% and balance from its JVC partners i.e. ICICI, TDICI & HDFC.
Power Plant at Visakhapatnam
HPCL in association with APSEB is proposing to set up a 500 MW power plant at Visakhapatnam at an estimated cost of Rs. 18.65 billion.
RESEARCH & DEVELOPMENT
Presently, HPCL has separate R & D facilities for its Refineries & Marketing Division. An integrated R & D Division is being set up for the Corporation as a whole. This would include activities on the exploration and production front.
COMMITTED WORKFORCE
The Corporation believes that the key to organisational excellence is human resource development. It has around 11,500 employees and its policies are employee oriented. HPCL's performance appraisal system ensures growth based on merit as well as seniority. It has a residential training institute at Nigdi near Pune and it has always been the Corporation's endeavour to constantly upgrade the skills of its personnel.
KEEPING PACE ...
HPCL has undertaken a Business Process Re-engineering (BPR) study with the assistance of M/s. Arthur Andersen & Associates to sharpen the Corporation's competitive edge in critical areas of operations, and specially the challenges arising out of deregulation of the Petroleum Sector, to make the organisation more responsive to market requirements and to update information technology for quicker decision making. The conclusions of the BPR study have been accepted by the Management and are under implementation in all major areas of activity. The exercise includes :

• Creation of 4 Strategic Business Units (SBUs) within Marketing - Lubricants, Retail, I&G and LPG.
• Development of an action plan to reposition and strengthen the Lubricants business.
• Decentralisation of the purchase function to SBUs to quicken purchase process.
• Broad banding of various positions, to allow greater continuity and development of expertise.
• Delayering/flattening the organisation to quicken decision making process.
• Enterprise Resource Planning (ERP) system to meet the long-term information technology needs of the Corporation. HPCL has kept itself abreast with the developments in the field of Information Technology, deploying state-of-the-art computers and systems for its activities.
• It has installed computers at over 250 locations and developed various applications including on-line transaction processing systems at very remote locations.
• It has also installed computer networks at its administrative offices, refineries and its major locations to share information among the personnel at these locations for responses.
• It is in the process of implementing a voice and data network connecting over 22 sites at 5 cities, to provide instant access to information available.
• It also plans to set up usage of applications like Interactive Voice Response Systems for LPG cylinder booking and the use of the Internet to provide access to the public to Corporate Informations. 

SOCIAL OBJECTIVES
HPCL, as part of its social commitment, assists in community welfare programmes for uplifting the weaker sections of the society. The major socio-economic welfare oriented activities include various income generating schemes, vocational training, scholarships for SC/ST students, drinking water facilities, health and family welfare camps and distribution of free medicines, etc.
THINKING GREEN
HPCL bas always taken keen interest in the protection, preservation and improvement of the environment. Environment protection efforts begin at the planning and design stage of new projects by incorporation various measures for ensuring minimal impact on the environment. Environment Management also covers development of environment-friendly technologies, tree plantation and implementation of energy conservation and environment improvement projects. Both Mumbai and Visakhapatnam Refineries have already implemented various environment protection projects. The recently introduced NMP technology, developed by Mumbai Refinery and Indian Institute of Petroleum, in the hexane plant is but an illustration of our commitments to strive for newer ways to protect the environment. Also, other environmental projects like diesel hydro-desulphurisation, continuous stack monitors, co-boiler are under implementation.
OIL AND MUCH MORE
In a fast changing economic environment where the concept of the global presence is emerging as a reality, Hindustan Petroleum is poised for accelerated growth. With its extensive infrastructural facilities, investments in technology upgradation, strong financials & high standards of operation, the Corporation aims to capitalise on the opportunities available in the changing economic scenario. HPCL has the confidence to rise and meet the challenges and by virtue of its excellent track record & capabilities in handling mega projects set and achieve ambitious targets.Finally, the vision to be a leading  world class company in HYDROCARBONS and ENERGY  RELATED SECTORS WITH A GLOBAL PRESENCE.

Contributed by
Special Correspondent
Mumbai