About
Hindustan Petroleum Corporation Ltd
Hindustan Petroleum Corporation Ltd (HPCL) is a Mega Public Sector Undertaking (PSU) with Navratna status. HPCL is a Government of India Enterprise listed on the Bombay Stock Exchange Limited and National Stock Exchange of India Limited, with Oil and Natural Gas Corporation Limited (ONGC /the Holding Company) holding 51.11% of Equity Shares w.e.f. 31st January, 2018, which has increased stake further to 54.90% as of March 31, 2023.
HPCL in collaboration with M/s Mittal Energy Investments Pte. Ltd. operates 11.3 MMTPA capacity refinery at Bathinda, Punjab with 49% equity stake. Besides, the company also holds an equity stake of 16.96% in Mangalore Refinery & Petrochemicals Ltd (MRPL), a refinery at Mangalore with a capacity of 15 MMTPA. The Corporation is engaged, primarily in the business of refining of crude oil and marketing of petroleum products. It has, among others, refineries at Mumbai and Vishakhapatnam, LPG bottling plants and Lube blending plants. Its marketing infrastructure includes vast network of Installations, Depots, Aviation Service Stations, Retail Outlets and LPG distributors.
Hindustan Petroleum Corporation Ltd was incorporated on July 5th, 1952 with the name Standard Vacuum Refining Company. Then, the name was changed to ESSO India. When ESSO and Lube India were nationalized, the company was renamed to Hindustan Petroleum Corporation Ltd in the year 1974. The Caltex undertaking was nationalized in the year 1976, which were subsequently merged with the company in the year 1978. In the year 1979, the undertakings of Kosan Gas Company, the concessionaires of HPCL in the domestic LPG market, was merged with the company.
In December 2000, the 'Guru Gobind Singh Refineries' was incorporated as a wholly owned subsidiary company. The company completed the Rs 378 crore pipeline project from Vijayawada to Secunderabad, which was commissioned on March 2002. They set up a new LPG Bottling plant with capacity of 44 TMTPA in Kota. The company implemented 15 company tank trucks in the year 2004.
During the year 2004-05, the company completed their construction of a new grassroot depot at Aonla, Bareilly in Uttar Pradesh with total cost of Rs 10.25 crore. Also, they completed the construction of another new grassroot depot at Ramagundam, Andhra Pradesh at a total cost of Rs 11.47 crore. Further they commissioned a total of 13100 KL additional tankage at various locations during the year. The company branded their retail outlets under the name 'CLUB HP'. They launched 'Turbojet' branded diesel and the 'Power' branded petrol in India.
During the year 2005-06, the company's Mumbai Refinery undertook mega project at an approved cost of Rs 1850 crore to meet the MS/HSD of EURO-III grade in Metro/Mega cities and Bharat stage-II grade in the rest of the country and the Visakhapatnam Refinery undertook Clean Fuel Project at an approved cost of Rs 2147.8 crore to meet the MS/HSD of Euro-III grade in metro-mega cities and Bharat-II grade in the rest of the country. The company commissioned 647 retail outlets during the year.
During the year 2008-09, the installation of facilities for production of Euro III / IV Petrol (Motor Spirit) at both the Refineries was completed. In pursuit of promoting alternate fuels, CREDA-HPCL Biofuel Ltd (CHBL) was incorporated on October 14, 2008, as a subsidiary company with equity shareholding of 74% by the company and 26% by Chhattisgarh State Renewable Energy Development Agency (CREDA). CHBL is to undertake cultivation of Jatropha plant, an energy crop used for production of bio- diesel, on 15,000 hectares of land leased by the Government of Chhattisgarh.
HPCL Refineries commissioned Clean Fuels Projects and Euro-IV MS production started prior to January 2010 as per Auto Fuels Policy. Mumbai Refinery was the First Indian PSU refinery to commence BS-IV MS production facilities and first batch of BS-IV MS was rolled out in January 2010. In its continual effort to widen the crude basket, Mumbai Refinery processed 2 new crudes, namely Iran Mix and Ravva crude.
In April 2011, the company approved the acquisition of balance 50% shares held by other joint venture partners in Prize Petroleum Company Ltd. In November 2011, the company entered into a MoU with Greater Calcutta Gas Supply Corporation Ltd (GCGSCL) and Gas Authority of India Ltd (GAIL) to carry out natural gas business in the City of Kolkata and its adjoining districts.
The company is setting up a state-of-the-art Green R&D Centre at Bangalore with an objective to become a technology leader through continuous & innovative R&D efforts. The project is being executed in a phase manner with a phase-I capital investment of Rs 210 crore.
In 2012, HPCL, Mittal Energy joint venture ties-up with IBM for data solutions. The company became a promoter of the Rajasthan refinery by taking a majority stake of 51 per cent in Rs 25,000-crore refinery with annual capacity of 9 million metric tonnes.
In 2013, a Memorandum of Understanding (MOU) was signed between Government of Rajasthan (GOR) and the company for setting up a state-of-the-art 9 MMTPA refinery-cum-petrochemical complexes in Barmer District of Rajasthan. The company proposed to enter into a 50:50 joint venture with Shapoorji Pallonji Group for LNG terminal for import of liquid gas (LNG) on Gujarat Coast. The company procures 1mn barrels of Nigerian Qua Iboe crude oil. The company has been bestowed with the Golden Peacock Award for Excellence in Corporate Governance for the year 2013 by Institute of Directors. The company signs MoU with MOP&NG, Govt. of India for FY 2013-14.
In 2014, the company's Mumbai Refinery bagged the coveted 'National Energy Conservation Award (First prize)' in the refinery sector. The company inaugurates KSP on world's highest motorable road. The company bags the Platts Top 250 Global Energy Award. The company acquires two gas blocks in Australia for AUD 85 million.
In 2015, Hindustan Petroleum Corporation Ltd (HPCL) approved the proposal for implementation of capacity expansion of the company's Mumbai refinery from 7.5 MMTPA to 9.5 MMTPA. HPCL - HP-HiGAS Unit', a new commercial scale unit developed based on HPCL R&D technology at Visakhapatnam refinery was inaugurated during the year. The company commenced marketing of Bio-Fuel blended High Speed Diesel (B-5 Diesel) in select retail outlets of the country.
On 27 May 2016, the Board of Directors of HPCL approved acquisition of 2.16 crore equity share of Petronet MHB Ltd. (PMHBL) at Rs 12.04 per share from Petronet India Ltd totaling to Rs 26.09 crore.
The Board of Directors of HPCL at its meeting held on 20 July 2016 recommended issue of bonus shares in the ratio of 2 bonus shares for every 1 existing equity share. The board also approved Rs 20928-crore project to increase the capacity of Visakhapatnam refinery to 15 MMTPA from 8.33 MMTPA, with residue up-gradation facility meeting BS VI fuel specification compliance.
On 21 July 2016, HPCL announced that the nameplate capacity of its Mumbai refinery stands enhanced to 7.5 MMTPA from 6.5 MMTPA due to various process improvements and de-bottlenecking schemes implemented by the company.
Following approved from HPCL's Board of Directors as well as shareholders, the Reserve Bank of India on 5 August 2016 notified increase in the ceiling on investment in HPCL's shares by foreign institutional investors (FIIs) from 24% to 40% of the paid up capital of the company.
HPCL commissioned Mangalore-Hassan-Mysore-Solur LPG pipeline (356 km) in October 2016 with a cost of nearly Rs 838 crore and ahead of scheduled time of completion. To reduce carbon footprints and promote renewable energy, HPCL commissioned a 50.5 MW wind power project in Rajasthan in December 2016, taking the total wind power capacity to 101 MW.
On 7 December 2016, HPCL announced that it has signed a Consortium Agreement with Indian Oil Corporation Limited and Bharat Petroleum Corporation Limited to carry out pre project activities for setting up of 60 MMTPA West Coast Refinery and a Petrochemical Project in the State of Maharashtra through a Joint Venture Company.
The Board of Directors of HPCL at its meeting held on 17 April 2017 approved resumption of Rajasthan Refinery Project and signing of revised MOU with the State Government of Rajasthan for implementation of the project. The project involves the setting up of 9 MMTPA grass root refinery at Pachpadra in Barmer district in Rajasthan.
The Board of Directors of HPCL at its meeting held on 26 May 2017 recommended issue of fully paid bonus shares in the ratio of 1 bonus equity share of Rs 10 each for every 2 existing equity shares of Rs 10 each.
HPCL registered highest ever Profit after Tax of Rs 6209 crore on standalone basis with gross sales of Rs 213489 crore for the year ended 31 March 2017 (FY 2017). HPCL refineries at Mumbai and Visakhapatnam maximized crude processing and achieved the highest ever-combined refining throughput of 17.81 MMT with capacity utilization of 113% in FY 2017, compared to throughput of 17.23 million tonnes in FY 2016. HPCL successfully rolled out daily pricing of petrol and diesel across India effective from 16 June 2017 to smoothen flow of products from supply locations to the consumer and align the prices to the international prices on daily basis.
On 6 July 2017, HPCL announced that it has raised $500 million from fixed rate senior unsecured notes in overseas markets. The company intends to use all of the proceeds of the issue to fund capital expenditure for its ongoing and future domestic projects in accordance with the ECB Guidelines of India.
During 2017-18, three new ASFs at Srinagar, Tirupati and Patna were commissioned. Under Regional Connectivity Scheme, 3 new locations were comissioned at Vidyanagar, Jalgaon and Mundra in aviation business.
In FY 2017-18, the Corporation commissioned Panagarh LPG plant with a bottling capacity of 250 TMTPA, which is the biggest LPG plant in Asia.Government of India transferred whole of its 51.11% of the total paid up equity share capital of HPCL to Oil and Natural Gas Corporation Limited (ONGC) on 31st January 2018. Post-acquisition, HPCL continues to be central public sector enterprise (CPSE) and a government company within the meaning of Section 2 (45) of the Companies Act, 2013.
During 2017-18, HPCL completed the turnaround of CDU-I unit at Visakh Refinery and also implemented the best practice of risk-based inspection in some of the critical units at Mumbai Refinery and Visakh Refinery.
During 2017-18, a number of process improvement schemes were implemented at both refineries including SEU II Furnace revamp at Mumbai Refinery and commissioning of the slop-processing scheme at Visakh Refinery.
During 2017-18, HPCL commissioned 669 new retail outlets and exceeded the mark of 15,000 retail outlets by taking the total outlet number to 15,062 as on 31st March 2018. Besides network expansion, improving the volumes of the existing network also has been a key focus area for Retail SBU. About 1,000 outlets were modernized during the year with an investment outlay of over Rs 350 crore.
HPCL Middle East FZCO, a 100% Subsidiary of your Corporation was incorporated on 11th February, 2018 as a Free Zone Company under Dubai Airport Free Zone and Establishment Card was issued on 22nd March, 2018 for the Company. The foreign subsidiary was established for trading in Lubricants & Grease, Petrochemicals and Refined Oil Products.
RRPCL was incorporated on 22nd September, 2017 with Indian Oil Corporation Limited (IOCL), Bharat Petroleum Corporation Limited (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) holding equity in the ratio 50%: 25%: 25% respectively.
Ujjwala Plus Foundation, a joint venture of Indian Oil Corporation Limited (IOCL), Bharat Petroleum Corporation Limited (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) with fund contribution in the ratio 50%: 25%: 25%, respectively was incorporated on 21st July, 2017 as a not-for-profit Private Company Limited by Guarantee (without Share Capital) under Section 8 of the Companies Act 2013.
CHBL, in which HPCL holds 74% of equity shareholding, was dissolved with effect from 8th March 2018.
During 2017-18, more than 650 outlets were added to the network of branded Club HP / Club HP Star outlets taking the total to over 2,700 as of March 2018.
In line with the commitment to ensure a cleaner and greener environment, solar panels were installed at 464 retail outlets during the year. HPCL also launched an electric vehicle charging station at a retail outlet in Nagpur. To adapt to green energy solutions, HPCL initiated process of replacing existing conventional Metal Halide Lamps with LEDs at retail outlet network and LED installation was completed at 4,510 retail outlets during the year 2017-18.
To cater to growing LPG demand, HPCL commissioned its largest LPG bottling plant at Panagarh in West Bengal with bottling capacity of 250 TMPTA. In addition, bottling capacity augmentation projects of 60 TMTPA each at Unnao (Uttar Pradesh) and Purnea (Bihar) LPG plants were also completed during the year 2017-18.
During 2017-18, HPCL successfully executed retailer loyalty scheme aimed to create a larger customer base within Bazaar market and enhance brand awareness for HP Lubricants in the market. To strengthen connection to the key stakeholders in lube market i.e. retailer and mechanics, HPCL launched its market activation campaign named BANDHAN' during the year. Various activities were conducted at important markets involving a number of retailers and mechanics and educating them on HPCL's lubricant products and benefits.
During 2017-18, HPCL made its footprint in UAE with incorporation of 100% owned subsidiary company, HPCL Middle East FZCO' at DAFZA (Dubai Airport Free Zone Area) in UAE. HPCL has also appointed a distributor in Myanmar in 2017 and have commenced sales. HPCL's sales efforts in Myanmar were bolstered by product launches in important markets of Yangon and Mandalay and are being supported through various promotional and marketing activities in the region.
During 2017-18, HPCL commissioned 5 new Kerb Side Pumps (KSPs) for Indian Army, taking total KSPs to 93 with total tankage of 4,841 KL to ensure smooth supply of POL products to Army in toughest terrains of country. The Company also commissioned 8,600 KL of scattered tankage for Indian Army at Leh during the year. It further completed the Advance Winter Stocking of POL products for Indian Army in Kashmir Valley and Leh within stipulated time.
During 2017-18, international airlines and carriers like Azur Air, Thai Airways, Kenya Airways, Scoot Tiger Air, Silk Air, Nepal Airlines, SriLankan Airlines and Biman Bangladesh were added to the existing customer portfolio. During 2017-18, aviation fuel infrastructure was augmented by setting up new fixed facilities at Tirupati, Srinagar & Patna airports. In addition, 3 new ASFs were commissioned during 2017-18 at Jalgaon, Vidyanagar and Mundra airports where flight operations were commenced under Regional Connectivity Scheme of Government of India.
During 2017-18, HPCL revamped and augmented the facilities at various locations including 8 bay Tank Truck (TT) filling gantry with allied facilities at Loni & Nalagarh and 6 Bay ATF TT loading facilities (fully compliant to MBLC requirements) along with allied facilities at Bahadurgarh terminal. In addition, revamp of Jabalpur depot was completed with state of the art safety features. The depot was made fully compliant to latest OISD standards and enabled with fully automated loading operation.
During 2017-18, HPCL implemented a number of cost leadership initiatives in operation and distribution of petroleum products, which resulted in substantial savings for the Corporation. Major initiatives undertaken during 2017-18 include simultaneous tanker discharge at Ennore and Visakh terminals and realignment of retail outlets to optimize the logistics cost.
Energy efficient lighting system was installed at 40 locations and solar plants (Rooftop and ground mounted) of total capacity 2,700 KW were installed at 32 POL locations during the year 2017-18. Strict monitoring of specific energy & water consumption across locations was achieved through sustained awareness building. Rainwater harvesting at all major locations along with fresh water management has helped to reduce water consumption significantly.
During 2017-18, the Company's joint venture Hindustan Colas Private Ltd. (HINCOL) supplied Bitumen emulsions to numerous road projects in India registering a sales growth of 5% over historical. It also supplied Polymer Modified Bitumen for construction of runways at Chandigarh and Kannur international airports and Air Force stations at Pune, Tambaram, Awantipur, Sirsa and Kalburgi.
During 2018-19, HPCL's wholly owned subsidiary, HPCL Middle East FZCO commenced business operations in UAE. HPCL exported lubes
to Nepal, Bangladesh, Bhutan, Sri Lanka, Myanmar, Vietnam, South Korea, UAE, Democratic Republic of Congo (Africa) and Ecuador (South America). HP Lubricants was the first Indian brand to mark its presence in Vietnam & Ecuador. New lubricant distributorships were commissioned in Bangladesh, Bhutan, Vietnam, UAE & Democratic Republic of Congo during 2018-19. HPCL recorded the bulk diesel sales of 1,372 TMT and commissioned 50 new consumer pump facilities across the country for consolidation of bulk Diesel business. Pipeline project for capacity expansion of Ramanmandi Bahadurgarh Pipeline (RBPL) from 4.71 to 7.11 MMTPA was completed. It strengthened supply infrastructure of various infrastructure projects including storage & distribution depot at Leh, new wagon gantry at Visakh black oil terminal and revamp of the existing tank wagon facility at Jabalpur depot. It signed a business agreement with Indigo at various new airports and added a number of international airlines to the existing customer portfolio.
In 2018-19, Corporation commissioned 478 new retail outlets during the year with network totaling to 15,440. 1,018 new LPG distributorships were commissioned during the year. It commissioned LPG plant in Warangal with a bottling capacity of 60 TMTPA. Aviation Service Facilities was augmented by setting up new fixed facilities at Amritsar, Bhubaneshwar, Raipur and Regional Connectivity Scheme (RCS) location at Kolhapur. HPCL launched its own packaged drinking water brand Reminero', marketed through company's retail outlet network in the cities of Hyderabad, Bangalore and Mysore. Another new initiative undertaken was marketing of Adblue' (Diesel exhaust fluid) through HPCL retail outlet network. It commissioned 478 new retail outlets taking the number of total retail outlets to 15,440 as of 31st March, 2019. In May 2018, mobile fuel dispenser HP Fuel Connect' to supply Diesel to select customers at their premises was commissioned. Solar power panels were installed at 737 outlets and energy efficient LED bulbs were marketed through the retail outlet network. In addition, Electric Vehicle (EV) charging stations have been commissioned at 7 HPCL retail outlets, as of 31st March, 2019.
In FY'20, the Corporation commissioned its first outlet in Bhutan as a part of the tie-up with State Trade Corporation of Bhutan Limited (STCBL) for setting up of retail outlets and supply of motor fuels in Bhutan. It launched a new product, Very Low Sulphur Fuel Oil (VLSFO), to
leverage the opportunities of low sulphur marine fuels effective from January 01, 2020. Aviation Service Facilities (ASFs) was augmented by setting up new facilities at Nagpur, Ranchi and Vidyanagar in Karnataka taking the total ASFs to 44.
In March, 2021 Company acquired 50% stake in HPCL Shapoorji Energy Pvt. Ltd. (HSEPL) held by SP Ports Pvt. Ltd. and became subsidiary of HPCL. In FY'21, Corporation launched a new product 'HP GAS FLAME PLUS' for commercial and industrial customers. It commissioned 112 new regular LPG distributorships taking the total number of distributors to 6,192. During 2021, 51 new CNG stations were commissioned. Import of LNG from International Market commenced and Corporation started marketing natural gas to industrial customers. Aviation Service Facility (ASF) network was augmented with commissioning of new ASFs at Shirdi and Kurnool taking the total number of ASFs to 46. During FY 2020-21, Corporation installed captive solar power capacity of 11.4 MWp at Retail Outlets, POL locations, Pipeline stations etc. taking the total solar power capacity to 43.95 MWp.
During the year 2022, Retail SBU of the Corporation ventured into non fuel retailing by launching branded store Club HP 'Happy Shop' at retail outlets. Further, packaged drinking water under the brand name 'Paani@Club HP' was also launched. 1391 Retail Outlets were commissioned taking the total to 20,025 and 273 Door-to-Door Mobile Dispensers were commissioned, totaling to 660. To meet the rising demand in North East India, a 30 TMTPA Bottling plant was commissioned at Goalpara, the first HPCL bottling plant in Assam. The Corporation has commissioned the 120 TMTPA capacity LPG Plant at Gonda, Uttar Pradesh and an additional 5.5 TMT of LPG Mounded Storage Vessels at various locations. Lube R&D at Mumbai was amalgamated with HPCL Green R&D Centre, Bengaluru with additional facilities bringing in better synergy and resource optimization. Corporation's Mumbai refinery commissioned new tanks at MR-II facility and implemented Naphtha and MTO loading facility ex Mahul terminal. Visakh refinery achieved mechanical completion for Tankage-B package and as part of Sagarmala project at Oil Wharf, commissioned Bitumen shipping line to OR-III jetty during the year. Corporation was the first Oil Marketing Company to place an order for Electrolyser to produce Green Hydrogen.
In March 2023, the Corporation commissioned Crude Distillation Unit with a capacity of 9 MMTPA; it commissioned other critical systems, including, Grid Power connectivity, Raw Water, Bearing Cooling Water, Sea Cooling Water, Plant Air/ Instrument Air Cryogenic
Nitrogen Unit, and a state-of-the-art 'Staged Flare'. Further, in January 2023, six new crudes, including, Ural, Amenam Blend, Egina, Tupi, Novy Port, and Sokol, were processed for the first time in Visakh refineries.
During the financial year 2022-23, the Mumbai Refinery commissioned rooftop solar panels with a capacity of 700 KW. Furthermore,
the Mumbai Refinery continued to source more than 70% of its power requirement from the grid. Additionally, as part of the Visakh Refinery Modernization Project (VRMP), the Visakh Refinery commissioned a project to connect the refinery power to grid at 220KV levels. Virtual Reality Training facilities were launched recently in both Mumbai and Vishakhapatnam Refineries as a part of transformative journey in 2023.
During the year 2023, 1161 Retail Outlets were commissioned taking the total retail network to 21186 numbers. 301 CNG facilities were added at Retail Outlets and EV Charging Systems (EVCS) were added at 1026 Retail Outlets. Corporation launched Power95', a high octane premium branded petrol; solar panels were installed at 4064 Retail Outlets during the year, taking the total number of Retail Outlets with solar power to 10475 of the total Retail network. Corporation commissioned 3 LPG Plants during the year 2023, namely 120 TMTPA capacity LPG Plant at Barhi, Jharkhand; 180 TMTPA capacity LPG Plant at Patalganga, Maharashtra; and 60 TMTPA capacity LPG Plant at Sitarganj, Uttarakhand. Additionally, 21 mounded storage vessels were commissioned at 9 different locations augmenting the LPG storage capacity by 9.8 TMT. It commissioned 45 new domestic and 51 non-domestic LPG distributors, totalling to 6283 domestic LPG distributors and 328 LPG non-domestic LPG distributors. It strengthened the Lubes marketing network by adding 36 new Channel Partners. The Corporation ventured into marketing of Petrochemical products thru the launch of 'HP DURAPOL' brand. It launched new products like HP Super Solvent, LSHS Premium, Marine Bio Fuel and Warm Mix Additive. It started MTO rake unloading facilities at Dharmapuri and Vadodara, commissioned LDO rake receipt and Tank Truck loading facility at Haldia and Hexane tankages at Akola and Sitarganj depots. It acquired 5 nos. Air Force stations and two new locations of Kannur and Mopa during the year 2023 into the Aviation business.
During the year 2023, Corporation commissioned 86 new CNG stations in the GAs authorized to it, taking the total number of CNG stations in authorized GAs to 209. Additionally, 2110 inch-km of steel pipeline, 1233 KM of MDPE pipeline was added and 22,733 new PNG connections were released during the year. Two new locations of Dharmapuri Terminal in Tamil Nadu and Sitar Ganj Depot in Uttarakhand were commissioned and the Kozhikode Depot was recommissioned. To ensure correct quality and quantity of fuel delivered, it has installed upgraded Vehicle Tracking System with AIS-140 compliant devices and Electro Mechanical Locking systems for all Tank Trucks. The Corporation's Pipeline vertical increased the network to 5,132 KM with the commissioning of major pipeline projects of Hassan Cherlapally Pipeline (650 KM) and Vijayawada Dharmapuri Pipeline (697 KM). With these commissionings, petroleum-product-pipeline mainline capacity rose to 35.2 MMTPA. New grade of Bio-marine fuel for bunker use was launched. The Corporation installed captive solar power capacity of 30.34 MWp across various locations during the year, taking the total solar power capacity to 84.355 MWp as of 31st March, 2023.
Hindustan Petroleum Corporation Ltd
Chairman Speech
Dear Shareholders,
It gives me great pleasure to present the 71st Annual Report on the
performance of your Company for the year 2022-23. Your Company continues to ‘Deliver
Happiness' ensuring the availability of affordable energy to meet the nation's energy
needs. Our sustained efforts during the year have seen your Company mount new peaks of
success and register several ‘best ever' milestones and significant achievements
across all spheres of business.
The global economy grew by 3.4% in 2022 despite the multifarious challenges posed by
geopolitics, the associated inflationary pressures and economic woes in countries around
the world. With a growth rate of 7.2%, India's output rebounded to its pre-pandemic level
in 2022-23, reinforced by the government's capex push and resilient private consumption.
Moreover, the world's second-largest vaccination drive, with more than 2 billion doses,
also served to lift consumer sentiment, which helped prolong the rebound in consumption.
India was the fastest-growing major economy in 2022-23, despite the three shocks of
COVID-19, the geo-political challenges, synchronized policy rate hikes to curb inflation,
etc.
Escalated geopolitical tensions and resultant financial volatility led to a significant
surge in the prices of oil and other commodities at the end of the previous financial
year. The prices of crude oil continued their rising trend in 2022-23, with benchmark
crude prices averaging US$ 96.2 per barrel, the highest since 2013-14. The price
volatility was substantial, with crude prices peaking at US$ 123.7 per barrel in June 2022
and reaching a level of US$ 78.6 per barrel by March 2023. Against the backdrop of the
increased prices and volatility of global crude prices, India's petroleum product
consumption also hit a new record in the financial year 2022-23, reaching the highest-ever
level of 222.3 MMT. HPCL continued to meet the nation's energy needs even while marketing
margins were suppressed for certain petroleum products.
I am happy to share that while navigating these challenging environments, Gross sales
of your Company registered a growth of 24.7% in 2022-23, rising from Rs.3,72,642 Crore in
2021-22 to Rs.4,64,684 Crore, reaching a new peak. Your Company achieved its highest-ever
annual sales of 43.45 MMT during the period, with a growth rate of 11% compared to the
historical. The highest-ever crude throughput of 19.09 MMT was achieved by our refineries,
which is 36.7% higher than the 13.97 MMT of crude processed during the previous year.
Average GRMs for 2022-23 were US$ 12.09 per barrel compared to US$ 7.19 per barrel during
the corresponding period of the previous year, recording an increase of 68.2%. The
exceptionally high international oil prices along with suppressed marketing margins on
select transport fuels, severely impacted the profitability, resulting in Net Loss of Rs.
8,974 Crore in 2022-23.
In a noteworthy development, the ongoing Visakh Refinery Modernization Project (VRMP)
attained the critical milestone of commissioning the 9 MMTA Crude Distillation Unit
(CDU-4), which is highly energy efficient. On the operations front, our refineries at
Mumbai and Visakhapatnam recorded an excellent performance, clocking the highest-ever
combined refining throughput of 19.09 MMT and capacity utilization of 107%. Meticulous
crude sourcing, right crude mix and expeditious evacuation of finished products, duly
complemented by improved refinery reliability and standardized operating processes, were
the key contributors to the performance of refineries. With the stabilization of the
expanded capacity, Mumbai Refinery achieved its highest ever annual crude throughput of
9.8 MMT. The highest production of MS, HSD and LOBS was achieved during the year.
Your Company recorded robust growth in sales across various business lines during
2022-23 on the back of a wide array of customer-centric initiatives supported by a strong
supply chain network. Market sales have touched a new peak of 43.45 MMT during the year,
recording the highest-ever sales for major products. The growth was 11% in comparison with
sales achieved in the previous year. In retail business, the year 2022-23 saw the highest
sales volume of 28.2 MMT. Sales of petrol and diesel increased by 16.2% and 16.5%
respectively and LPG sales growth was 4.9%. The domestic LPG segment gained market share
for the seventh consecutive year. Your Company is the second-largest LPG marketer in the
country. Your Company maintained its dominance in lubricant sales and continued to occupy
the leadership position in the market, recording year-on-year growth of 16% and a market
share increase of 2.48%. During the year, the Industrial & Consumer (I&C) business
line recorded overall sales of 4.32 MMT. With the continuing recovery in air travel, HPCL
achieved ATF sales of 692.5 TMT during 2022-23, registering a growth rate of 33.1% over
the previous year.
HPCL continues to lay strong emphasis on operational efficiency & cost optimization
towards achieving operational excellence. Both refineries are taking part in a performance
benchmarking study by M/s. Solomon Associates, USA, to achieve reliability and operational
excellence. Refineries are also participating in the
Refinery Performance Improvement Programme (RPIP) to optimize processes and improve
energy consumption. During the year, your Company recorded significant gains in overall
throughput performance and productivity across the network of depots & petroleum
product pipelines. An all-time high throughput of 57.3 MMT was achieved in 2022-23 in the
supply & distribution of petroleum products, which ensured uninterrupted product
availability throughout the country. Your Company recorded the highest-ever pipeline
throughput of 23.25 MMT as compared to 19.91 MMT in 2021-22, thus registering a YOY growth
of 16.8%.
Safety, health and environment are high priorities for HPCL and your Company has taken
several steps in this direction. The Vulnerability Index (VI) for job safety monitoring
has been implemented in refineries in 2022-23. The VI helps in identifying potential
safety risks and hazards in operations, enabling proactive mitigation measures, thereby
ensuring a safer workplace. With 35.6 million man-hours of safe operation as of 31st March,
2023, Mumbai Refinery has achieved its best-ever safety performance. To enhance safety in
operations at terminals, depots and retail outlets, various steps were taken, such as
interlocking of various equipment and alarm systems in the terminal/depot premises,
SOP-based hands-on training for all operating staff, training on safe driving for tank
truck drivers, monitoring of tank truck movement through a vehicle tracking system, etc.
To ensure availability and seamless & cost-efficient distribution of petroleum
products across the country, your Company has significantly expanded the refining and
supply chain infrastructure during the year with a capital expenditure of Rs. 14,043 Crore
(including equity investment in its JVCs and subsidiaries) in 2022-23. As part of the
Visakh Refinery Modernization Project (VRMP), a new Crude Distillation Unit (CDU-4) has
been commissioned. Three new LPG plants with a combined capacity of 360 TMTPA were
commissioned during the year at Barhi (Jharkhand), Patalganga (Maharashtra) and Sitarganj
(Uttarakhand). Additionally, LPG storage capacity was augmented by 9.8 TMT with the
commissioning of 21 mounded storage vessels at nine different locations. A new POL depot
at Sitarganj in Uttarakhand was commissioned during the year and the existing POL depot at
Kozhikode in the state of Kerala was revamped. With the addition of new aviation refueling
facilities at Kannur (Kerala) and Mopa (Goa), your Company now has 54 Aviation Service
Facilities (ASFs), including defense and open-access locations. The commissioning of the
697 km long Vijayawada Dharmapuri pipeline (VDPL), along with a major greenfield terminal
at Dharmapuri and the 650 km long Hassan Cherlapalli LPG pipeline (HCPL), helped increase
the operating cross-country pipeline network to 5,132 km.
HPCL continues to improve customer reach by adding new customer touchpoints such as
retail outlets, LPG dealerships, etc. During 2022-23, HPCL commissioned 1,161 retail
outlets, taking the total to 21,186 retail outlets as of 31st March, 2023,
making us the second-largest retail network owner in the country. Your Company
commissioned 45 new domestic LPG distributors during 2022-23, taking the total to 6,283.
Your Company enrolled 25.98 Lakh new LPG customers during the year, enhancing customer
reach, thereby taking total LPG customer base to over 9.3 Crore. To tap the non-domestic
segment, a record 51 non-domestic distributors were
Your Company is well aligned with the Government of India's plans to increase the
percentage of natural gas in the country's energy mix in recognition of its valuable role
in mitigating climate change, improving air quality, enhancing energy security and
providing cleaner transportation solutions commissioned during the year, taking the total
to 328.
Your Company is cognizant of the importance of environmental sustainability for the
health of our planet, the well-being of current and future generations and the
preservation of ecosystems and biodiversity. Towards this objective, various initiatives
were undertaken by HPCL in the areas of carbon footprint reduction, energy efficiency,
water conservation, waste management, renewable energy, etc. Equal focus is thrust on the
triple bottom line framework of financial, social and environmental capital towards
greater business values. Your Company is also actively participating in the ‘Mission
LiFE' movement to bring lasting change in individual behaviors to the forefront of the
global climate action narrative and to meet the objectives of the nation's sustainable
development agenda.
Your Company is well aligned with the Government of India's plans to increase the
percentage of natural gas in the country's energy mix in recognition of its valuable role
in mitigating climate change, improving air quality, enhancing energy security and
providing cleaner transportation solutions. HPCL is participating in the entire value
chain of the natural gas business by setting up a LNG import and regasification terminal
through a 100% subsidiary, participating in natural gas pipelines through joint ventures
and expanding its presence in the CGD business. The 5 MMTPA LNG terminal at Chhara,
Gujarat, being constructed through our subsidiary company, HPCL LNG Limited, achieved
mechanical completion in March 2023. HPCL, along with its JVs, has the authorization for
CGD presence in 23 geographical areas in 12 states of the country. As of 31st
March, 2023, HPCL and its JVs had 535 CNG outlets and about 6.4 lakh PNG connections in
the geographical areas allocated to HPCL and JVs. On an all India and standalone basis,
CNG facilities were added by HPCL at 301 retail outlets during the year, taking the total
number of HPCL retail outlets with CNG facilities to 1,387.
Given the market's projected expansion and the present low per capita consumption of
petrochemicals in the country, your Company has prioritized expanding its petrochemical
portfolio. Large-scale investments are underway for building petrochemical manufacturing
capacities through the joint venture route. For marketing HPCL's own-produced and
externally sourced petrochemical products, the ‘Route to Market' strategy has been
developed and is under implementation. In line with strategic roadmap, your Company
entered petrochemical marketing in 2022-23 with the launch of the ‘HP DURAPOL' brand.
The Government of India is promoting the usage of biofuels in transportation sectors to
contribute to energy security, sustainable energy, environmental conservation, climate
change mitigation and social benefits. Your Company is actively participating in the
initiative with action on various fronts. HPCL achieved ethanol blending of 10.59% by
blending 129 crore litres of ethanol in Motor Spirit (MS) in 2022-23. HPCL is also
actively participating in the Government of India's SATAT (Sustainable Alternative Towards
Affordable Transportation) initiative for the promotion of Compressed Bio Gas (CBG).
Letters of Intents (LOIs) were released for the setting up of 63 CBG plants in 2022-23,
taking the total to 476 and plant capacity to 943 TMTPA. Your Company is constructing a
second-generation ethanol biorefinery at Bathinda, Punjab, with a production capacity of
100 kiloliters per day of ethanol from biomass. I am happy to share that your Company has
completed the construction of a compressed biogas plant (CBG) with a 100 TPD biomass
processing capacity at Budaun, UP. Setting up a CBG plant with 100 TPD of cow dung
processing capacity at Pathmeda, Rajasthan, under the CSR scheme is in progress.
Your Company is actively harnessing renewable energy sources to reduce carbon
footprints and electricity costs across the value chain. During 2022-23, 30 MWp of captive
solar power capacity was installed across various locations, taking the total to 84 MWp as
of 31st March, 2023. During 2022-23, our 100.90 MW wind power capacity
generated about 18.29 crore KWh of electricity. Solarization of 4,067 retail outlets was
undertaken in 2022-23, whereby about 49% of the total retail outlets have been solarized.
EV (Electric Vehicle) charging facilities are now available at 2,037 retail outlets of
HPCL.
Your Company has embraced the principles of DEI (Diversity, Equity and Inclusion) to
foster innovation, engage employees, attract top talent, enhance reputation and meet legal
& societal expectations. These principles and practices make your Company more
dynamic, resilient and better equipped to navigate the challenges of a diverse and rapidly
changing world
HPCL focuses on research & development to create an enduring advantage for our
business. Your Company has a state-of-the-art HP Green Research & Development Centre
(HPGRDC) in Bengaluru to provide advanced technical support to marketing SBUs and
refineries. With the commissioning of seven labs in Phase 2, the state-of-the-art HPGRDC
has 14 labs in various areas. During 2022-23, 33 new products and technologies were
developed and launched and 36 patents were granted to HPGRDC, taking the cumulative
patents granted to 160 as of 31st March, 2023.
Your Company is successfully treading the digital transformation journey towards
improving processes, increasing productivity, enhancing customer value and convenience.
The digital transformation journey encompasses multiple layers, such as modernization of
the technological foundation of your Company, reimagining and redesigning existing
processes to leverage the capabilities of digital technologies and improving the
interactions & experiences that customers have with HPCL. As part of modernization of
the technological foundation, ‘Aarohan', our
ERP Modernization Project which aims at building a robust digital foundation for the
Company, has been completed successfully.
HPCL has 64 ‘SMART' terminals in our network, enabling us to increase operational
efficiency, optimize cost and ensure safety & stakeholder convenience. On the process
front, video analytics of forecourt operations have been further extended to include
safety aspects of retail outlet operations as well. HPCL is the first oil company in the
industry to use drones to survey a section of the Rewari-Kanpur pipeline network. To
enable effective inventory management of products across the supply chain, an AI/ML based
demand forecasting solution has been implemented that predicts the demand for various
products at the granular level of fuel stations, LPG distributorships and institutional
customers with high accuracy. AR/VR based training and simulation facilities have been
installed at Mumbai and Visakh refineries to create a virtual plant environment where
employees can undertake training and equipment operations safely before working in the
actual plant. Towards an enriching customer experience, the powerful loyalty and payment
program ‘HP Pay' is being leveraged to provide complete fuel management solutions to
customers in the form of an unbeatable combination of control, convenience, security and
attractive reward points.
Your Company has always been a Corporation with conscience, firmly believing that
business priorities can co-exist with social commitments and inclusive growth. As part of
Corporate
Social Responsibility (CSR), your Company has undertaken various activities during the
year under the focus areas of childcare, education, health care, skill development,
environment & community development and sports, thus positively influencing the lives
of less privileged. During 2022-23, Rs. 155 Crore has been spent on CSR activities by
HPCL.
Large-scale energy projects are essential for India to meet its growing energy demand,
diversify its energy sources, improve energy access, stimulate economic development,
create jobs, enhance energy security and promote environmental sustainability. Against
this backdrop, your Company has taken up a number of projects to meet the growing energy
demand of the country. The Visakh Refinery Modernization Project (VRMP) to enhance the
refining capacity to 15 MMTPA is in an advanced state of completion. A 9 MMTPA grass-root
refinery and petrochemical complex being set up by HPCL Rajasthan Refinery Limited (HRRL),
a joint venture company between HPCL and the Government of Rajasthan, at Pachpadra in
Barmer District of Rajasthan. The construction activities are progressing in full swing at
the site. A number of projects are underway to strengthen our distribution network. These
include the Bathinda-Sangrur product pipeline, the Haldia-Panagarh LPG pipeline, the
revamping of Raipur and Vashi POL terminals, new LPG plants at Varanasi (Uttar Pradesh)
and Abu Road (Rajasthan) and the 80TMT LPG Cavern at Mangalore. The 5 MMTPA LNG
regasification terminal at Chhara, Gujarat, has reached mechanical completion and has
moved into the commissioning phase. The 370 TPA green hydrogen plant at the Visakh
Refinery is in an advanced stage of completion. With respect to alternative fuels and
energy storage, new avenues of value creation in the electric vehicle (EV) ecosystem,
including battery swapping and energy storage solutions, are being explored in
collaboration with various technology start-ups, OEMs, etc.
ESG parameters are becoming more and more relevant for evaluating the performance of
organizations. Focusing on ESG helps in better risk management, enhancing reputation and
stakeholder trust, long-term sustainability and resilience and meeting regulatory
compliance & legal requirements. Your organization is integrating ESG factors into
future strategies and operations with a view to enhance competitive advantage, attracting
investors, building resilient business models and contributing to a more sustainable &
inclusive global economy. In this direction, your Company has developed a validated
roadmap for achieving Net Zero in Scope 1 and 2 emissions by 2040. Enhancing energy
efficiencies in operations, using renewable power in refineries, replacing hydrogen
requirements with green hydrogen, reducing flare gas emissions and abating emissions by
CCU/offsetting are the key levers identified for achieving Net Zero. To accelerate the
energy transformation journey, your Company has established a new ‘Energy Transition
Cell' dedicated to achieving the company's Net Zero goals. The incorporation of a wholly
owned subsidiary, subject to the approvals from Competent Authorities, for consolidation
of all green and emerging business opportunities under one umbrella is being planned.
Your Company continues to explore new business models to stay competitive, respond to
changing market dynamics, drive innovation and maximize growth opportunities. Towards this
objective, a roadmap was developed for unlocking value in lubricant business. In-principle
approval has been accorded for exploring options including carving out to unlock value in
the high-growth high-potential lubricant business subject to the approvals from competent
authorities.
HPCL places a strong focus on effective human capital management to ensure long-term
success in a rapidly evolving business landscape. The entire spectrum of human capital
management, including talent acquisition & retention, employee development &
growth, promotion of productivity & performance, succession planning, leadership
development, etc., are being managed with the guiding principle of ‘enabling people
performance'. Your Company has embraced the principles of DEI (Diversity, Equity and
Inclusion) to foster innovation, engage employees, attract top talent, enhance reputation
and meet legal & societal expectations. These principles and practices make your
Company more dynamic, resilient and better equipped to navigate the challenges of a
diverse and rapidly changing world.
Your Company continues to provide greater flexibility, personalized approaches and
optimum working conditions to build a stimulating work environment. The Company's
workforce has an ideal mix of experience, youthful energy, an innovative mindset and
multiple perspectives. Various employee engagement initiatives were undertaken during the
year with the objective of creating an enabling, participative, nurturing and winning work
culture in the organization. Multi-modal training methodologies such as webinars,
experiential workshops, e-modules, certifications, simulations, action learning,
drama-based workshops, etc. are undertaken with extensive use of technology for
progressive learning and building the capabilities of employees. Your Company has
partnered with various Centers of Excellence (CoE) and premier institutions to promote
industry-academia collaboration and enhance the technical and behavioral capabilities of
our employees. The keen focus of your Company on people orientation and enablement has
borne fruit in creating a pool of about 8,500 committed, dedicated and competent employees
who are the backbone of the organization.
The world economy is expected to grow by 2.8% in 2023 before settling at about 3.0% in
2024. India's economy is projected to grow by about 6% to 6.5% in 2023-24 on the back of
strong agricultural production, a post-pandemic rebound in contact-intensive services,
strengthening of private sector balance sheets and much-improved financial health of the
public sector banks, which has positioned them better to increase the credit supply and
the government's capex push. External factors that may be a drag on growth are slowing
global economy, geopolitical tensions, an upsurge in financial market volatility,
tightening global financial conditions, etc.
According to UN population estimates, India has overtaken China as the world's most
populous country. An expanding economy, urbanization and industrialization, coupled with a
rising population, will drive energy demand growth in India. India is projected to see the
largest increase in energy demand in any country in this decade. In order to meet this
demand, significant investment will be needed in all energy sources, including oil, which
currently meets one-third of India's energy needs. It also presents an opportunity for the
country to transition to a more sustainable and diversified energy mix in the long term to
meet the objectives of energy security and climate change.
Your Company is embracing responsible practices to achieve growth as they align with
the principles of sustainability, social impact and ethical business practices. The
objective is to generate shared value for its stakeholders and the broader society while
ensuring growth. HPCL is cognizant of evolving energy scenarios, changing consumer
preferences, proliferation of digital technologies and is continually remodeling its
actions to be relevant and future-ready. The strategy is to create value and deliver
growth responsibly by strengthening existing businesses, leveraging new growth engines
such as petrochemicals, natural gas and seizing green & emerging opportunities with a
focus on technology and innovation. We remain steadfast in our goal of delivering
consistent, competitive, responsible growth & value creation through sustainable business
models.
I am thankful to the Ministry of Petroleum
& Natural Gas, State Governments and various statutory and local bodies for their
guidance and support in all our efforts and look forward to their continued support in the
future as well.
I would like to thank all our customers, shareholders, business associates, employees
and other stakeholders for their unflinching commitment and support. I would also like to
convey my sincere appreciation to the Board of Directors for their guidance and mature
counsel.
I look forward to your continued support in all our endeavors to deliver happiness in
the lives of millions of people and continue our journey of shared success.
Thank you
Pushp Kumar Joshi
  Â
Hindustan Petroleum Corporation Ltd
Company History
Hindustan Petroleum Corporation Ltd (HPCL) is a Mega Public Sector Undertaking (PSU) with Navratna status. HPCL is a Government of India Enterprise listed on the Bombay Stock Exchange Limited and National Stock Exchange of India Limited, with Oil and Natural Gas Corporation Limited (ONGC /the Holding Company) holding 51.11% of Equity Shares w.e.f. 31st January, 2018, which has increased stake further to 54.90% as of March 31, 2023.
HPCL in collaboration with M/s Mittal Energy Investments Pte. Ltd. operates 11.3 MMTPA capacity refinery at Bathinda, Punjab with 49% equity stake. Besides, the company also holds an equity stake of 16.96% in Mangalore Refinery & Petrochemicals Ltd (MRPL), a refinery at Mangalore with a capacity of 15 MMTPA. The Corporation is engaged, primarily in the business of refining of crude oil and marketing of petroleum products. It has, among others, refineries at Mumbai and Vishakhapatnam, LPG bottling plants and Lube blending plants. Its marketing infrastructure includes vast network of Installations, Depots, Aviation Service Stations, Retail Outlets and LPG distributors.
Hindustan Petroleum Corporation Ltd was incorporated on July 5th, 1952 with the name Standard Vacuum Refining Company. Then, the name was changed to ESSO India. When ESSO and Lube India were nationalized, the company was renamed to Hindustan Petroleum Corporation Ltd in the year 1974. The Caltex undertaking was nationalized in the year 1976, which were subsequently merged with the company in the year 1978. In the year 1979, the undertakings of Kosan Gas Company, the concessionaires of HPCL in the domestic LPG market, was merged with the company.
In December 2000, the 'Guru Gobind Singh Refineries' was incorporated as a wholly owned subsidiary company. The company completed the Rs 378 crore pipeline project from Vijayawada to Secunderabad, which was commissioned on March 2002. They set up a new LPG Bottling plant with capacity of 44 TMTPA in Kota. The company implemented 15 company tank trucks in the year 2004.
During the year 2004-05, the company completed their construction of a new grassroot depot at Aonla, Bareilly in Uttar Pradesh with total cost of Rs 10.25 crore. Also, they completed the construction of another new grassroot depot at Ramagundam, Andhra Pradesh at a total cost of Rs 11.47 crore. Further they commissioned a total of 13100 KL additional tankage at various locations during the year. The company branded their retail outlets under the name 'CLUB HP'. They launched 'Turbojet' branded diesel and the 'Power' branded petrol in India.
During the year 2005-06, the company's Mumbai Refinery undertook mega project at an approved cost of Rs 1850 crore to meet the MS/HSD of EURO-III grade in Metro/Mega cities and Bharat stage-II grade in the rest of the country and the Visakhapatnam Refinery undertook Clean Fuel Project at an approved cost of Rs 2147.8 crore to meet the MS/HSD of Euro-III grade in metro-mega cities and Bharat-II grade in the rest of the country. The company commissioned 647 retail outlets during the year.
During the year 2008-09, the installation of facilities for production of Euro III / IV Petrol (Motor Spirit) at both the Refineries was completed. In pursuit of promoting alternate fuels, CREDA-HPCL Biofuel Ltd (CHBL) was incorporated on October 14, 2008, as a subsidiary company with equity shareholding of 74% by the company and 26% by Chhattisgarh State Renewable Energy Development Agency (CREDA). CHBL is to undertake cultivation of Jatropha plant, an energy crop used for production of bio- diesel, on 15,000 hectares of land leased by the Government of Chhattisgarh.
HPCL Refineries commissioned Clean Fuels Projects and Euro-IV MS production started prior to January 2010 as per Auto Fuels Policy. Mumbai Refinery was the First Indian PSU refinery to commence BS-IV MS production facilities and first batch of BS-IV MS was rolled out in January 2010. In its continual effort to widen the crude basket, Mumbai Refinery processed 2 new crudes, namely Iran Mix and Ravva crude.
In April 2011, the company approved the acquisition of balance 50% shares held by other joint venture partners in Prize Petroleum Company Ltd. In November 2011, the company entered into a MoU with Greater Calcutta Gas Supply Corporation Ltd (GCGSCL) and Gas Authority of India Ltd (GAIL) to carry out natural gas business in the City of Kolkata and its adjoining districts.
The company is setting up a state-of-the-art Green R&D Centre at Bangalore with an objective to become a technology leader through continuous & innovative R&D efforts. The project is being executed in a phase manner with a phase-I capital investment of Rs 210 crore.
In 2012, HPCL, Mittal Energy joint venture ties-up with IBM for data solutions. The company became a promoter of the Rajasthan refinery by taking a majority stake of 51 per cent in Rs 25,000-crore refinery with annual capacity of 9 million metric tonnes.
In 2013, a Memorandum of Understanding (MOU) was signed between Government of Rajasthan (GOR) and the company for setting up a state-of-the-art 9 MMTPA refinery-cum-petrochemical complexes in Barmer District of Rajasthan. The company proposed to enter into a 50:50 joint venture with Shapoorji Pallonji Group for LNG terminal for import of liquid gas (LNG) on Gujarat Coast. The company procures 1mn barrels of Nigerian Qua Iboe crude oil. The company has been bestowed with the Golden Peacock Award for Excellence in Corporate Governance for the year 2013 by Institute of Directors. The company signs MoU with MOP&NG, Govt. of India for FY 2013-14.
In 2014, the company's Mumbai Refinery bagged the coveted 'National Energy Conservation Award (First prize)' in the refinery sector. The company inaugurates KSP on world's highest motorable road. The company bags the Platts Top 250 Global Energy Award. The company acquires two gas blocks in Australia for AUD 85 million.
In 2015, Hindustan Petroleum Corporation Ltd (HPCL) approved the proposal for implementation of capacity expansion of the company's Mumbai refinery from 7.5 MMTPA to 9.5 MMTPA. HPCL - HP-HiGAS Unit', a new commercial scale unit developed based on HPCL R&D technology at Visakhapatnam refinery was inaugurated during the year. The company commenced marketing of Bio-Fuel blended High Speed Diesel (B-5 Diesel) in select retail outlets of the country.
On 27 May 2016, the Board of Directors of HPCL approved acquisition of 2.16 crore equity share of Petronet MHB Ltd. (PMHBL) at Rs 12.04 per share from Petronet India Ltd totaling to Rs 26.09 crore.
The Board of Directors of HPCL at its meeting held on 20 July 2016 recommended issue of bonus shares in the ratio of 2 bonus shares for every 1 existing equity share. The board also approved Rs 20928-crore project to increase the capacity of Visakhapatnam refinery to 15 MMTPA from 8.33 MMTPA, with residue up-gradation facility meeting BS VI fuel specification compliance.
On 21 July 2016, HPCL announced that the nameplate capacity of its Mumbai refinery stands enhanced to 7.5 MMTPA from 6.5 MMTPA due to various process improvements and de-bottlenecking schemes implemented by the company.
Following approved from HPCL's Board of Directors as well as shareholders, the Reserve Bank of India on 5 August 2016 notified increase in the ceiling on investment in HPCL's shares by foreign institutional investors (FIIs) from 24% to 40% of the paid up capital of the company.
HPCL commissioned Mangalore-Hassan-Mysore-Solur LPG pipeline (356 km) in October 2016 with a cost of nearly Rs 838 crore and ahead of scheduled time of completion. To reduce carbon footprints and promote renewable energy, HPCL commissioned a 50.5 MW wind power project in Rajasthan in December 2016, taking the total wind power capacity to 101 MW.
On 7 December 2016, HPCL announced that it has signed a Consortium Agreement with Indian Oil Corporation Limited and Bharat Petroleum Corporation Limited to carry out pre project activities for setting up of 60 MMTPA West Coast Refinery and a Petrochemical Project in the State of Maharashtra through a Joint Venture Company.
The Board of Directors of HPCL at its meeting held on 17 April 2017 approved resumption of Rajasthan Refinery Project and signing of revised MOU with the State Government of Rajasthan for implementation of the project. The project involves the setting up of 9 MMTPA grass root refinery at Pachpadra in Barmer district in Rajasthan.
The Board of Directors of HPCL at its meeting held on 26 May 2017 recommended issue of fully paid bonus shares in the ratio of 1 bonus equity share of Rs 10 each for every 2 existing equity shares of Rs 10 each.
HPCL registered highest ever Profit after Tax of Rs 6209 crore on standalone basis with gross sales of Rs 213489 crore for the year ended 31 March 2017 (FY 2017). HPCL refineries at Mumbai and Visakhapatnam maximized crude processing and achieved the highest ever-combined refining throughput of 17.81 MMT with capacity utilization of 113% in FY 2017, compared to throughput of 17.23 million tonnes in FY 2016. HPCL successfully rolled out daily pricing of petrol and diesel across India effective from 16 June 2017 to smoothen flow of products from supply locations to the consumer and align the prices to the international prices on daily basis.
On 6 July 2017, HPCL announced that it has raised $500 million from fixed rate senior unsecured notes in overseas markets. The company intends to use all of the proceeds of the issue to fund capital expenditure for its ongoing and future domestic projects in accordance with the ECB Guidelines of India.
During 2017-18, three new ASFs at Srinagar, Tirupati and Patna were commissioned. Under Regional Connectivity Scheme, 3 new locations were comissioned at Vidyanagar, Jalgaon and Mundra in aviation business.
In FY 2017-18, the Corporation commissioned Panagarh LPG plant with a bottling capacity of 250 TMTPA, which is the biggest LPG plant in Asia.Government of India transferred whole of its 51.11% of the total paid up equity share capital of HPCL to Oil and Natural Gas Corporation Limited (ONGC) on 31st January 2018. Post-acquisition, HPCL continues to be central public sector enterprise (CPSE) and a government company within the meaning of Section 2 (45) of the Companies Act, 2013.
During 2017-18, HPCL completed the turnaround of CDU-I unit at Visakh Refinery and also implemented the best practice of risk-based inspection in some of the critical units at Mumbai Refinery and Visakh Refinery.
During 2017-18, a number of process improvement schemes were implemented at both refineries including SEU II Furnace revamp at Mumbai Refinery and commissioning of the slop-processing scheme at Visakh Refinery.
During 2017-18, HPCL commissioned 669 new retail outlets and exceeded the mark of 15,000 retail outlets by taking the total outlet number to 15,062 as on 31st March 2018. Besides network expansion, improving the volumes of the existing network also has been a key focus area for Retail SBU. About 1,000 outlets were modernized during the year with an investment outlay of over Rs 350 crore.
HPCL Middle East FZCO, a 100% Subsidiary of your Corporation was incorporated on 11th February, 2018 as a Free Zone Company under Dubai Airport Free Zone and Establishment Card was issued on 22nd March, 2018 for the Company. The foreign subsidiary was established for trading in Lubricants & Grease, Petrochemicals and Refined Oil Products.
RRPCL was incorporated on 22nd September, 2017 with Indian Oil Corporation Limited (IOCL), Bharat Petroleum Corporation Limited (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) holding equity in the ratio 50%: 25%: 25% respectively.
Ujjwala Plus Foundation, a joint venture of Indian Oil Corporation Limited (IOCL), Bharat Petroleum Corporation Limited (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) with fund contribution in the ratio 50%: 25%: 25%, respectively was incorporated on 21st July, 2017 as a not-for-profit Private Company Limited by Guarantee (without Share Capital) under Section 8 of the Companies Act 2013.
CHBL, in which HPCL holds 74% of equity shareholding, was dissolved with effect from 8th March 2018.
During 2017-18, more than 650 outlets were added to the network of branded Club HP / Club HP Star outlets taking the total to over 2,700 as of March 2018.
In line with the commitment to ensure a cleaner and greener environment, solar panels were installed at 464 retail outlets during the year. HPCL also launched an electric vehicle charging station at a retail outlet in Nagpur. To adapt to green energy solutions, HPCL initiated process of replacing existing conventional Metal Halide Lamps with LEDs at retail outlet network and LED installation was completed at 4,510 retail outlets during the year 2017-18.
To cater to growing LPG demand, HPCL commissioned its largest LPG bottling plant at Panagarh in West Bengal with bottling capacity of 250 TMPTA. In addition, bottling capacity augmentation projects of 60 TMTPA each at Unnao (Uttar Pradesh) and Purnea (Bihar) LPG plants were also completed during the year 2017-18.
During 2017-18, HPCL successfully executed retailer loyalty scheme aimed to create a larger customer base within Bazaar market and enhance brand awareness for HP Lubricants in the market. To strengthen connection to the key stakeholders in lube market i.e. retailer and mechanics, HPCL launched its market activation campaign named BANDHAN' during the year. Various activities were conducted at important markets involving a number of retailers and mechanics and educating them on HPCL's lubricant products and benefits.
During 2017-18, HPCL made its footprint in UAE with incorporation of 100% owned subsidiary company, HPCL Middle East FZCO' at DAFZA (Dubai Airport Free Zone Area) in UAE. HPCL has also appointed a distributor in Myanmar in 2017 and have commenced sales. HPCL's sales efforts in Myanmar were bolstered by product launches in important markets of Yangon and Mandalay and are being supported through various promotional and marketing activities in the region.
During 2017-18, HPCL commissioned 5 new Kerb Side Pumps (KSPs) for Indian Army, taking total KSPs to 93 with total tankage of 4,841 KL to ensure smooth supply of POL products to Army in toughest terrains of country. The Company also commissioned 8,600 KL of scattered tankage for Indian Army at Leh during the year. It further completed the Advance Winter Stocking of POL products for Indian Army in Kashmir Valley and Leh within stipulated time.
During 2017-18, international airlines and carriers like Azur Air, Thai Airways, Kenya Airways, Scoot Tiger Air, Silk Air, Nepal Airlines, SriLankan Airlines and Biman Bangladesh were added to the existing customer portfolio. During 2017-18, aviation fuel infrastructure was augmented by setting up new fixed facilities at Tirupati, Srinagar & Patna airports. In addition, 3 new ASFs were commissioned during 2017-18 at Jalgaon, Vidyanagar and Mundra airports where flight operations were commenced under Regional Connectivity Scheme of Government of India.
During 2017-18, HPCL revamped and augmented the facilities at various locations including 8 bay Tank Truck (TT) filling gantry with allied facilities at Loni & Nalagarh and 6 Bay ATF TT loading facilities (fully compliant to MBLC requirements) along with allied facilities at Bahadurgarh terminal. In addition, revamp of Jabalpur depot was completed with state of the art safety features. The depot was made fully compliant to latest OISD standards and enabled with fully automated loading operation.
During 2017-18, HPCL implemented a number of cost leadership initiatives in operation and distribution of petroleum products, which resulted in substantial savings for the Corporation. Major initiatives undertaken during 2017-18 include simultaneous tanker discharge at Ennore and Visakh terminals and realignment of retail outlets to optimize the logistics cost.
Energy efficient lighting system was installed at 40 locations and solar plants (Rooftop and ground mounted) of total capacity 2,700 KW were installed at 32 POL locations during the year 2017-18. Strict monitoring of specific energy & water consumption across locations was achieved through sustained awareness building. Rainwater harvesting at all major locations along with fresh water management has helped to reduce water consumption significantly.
During 2017-18, the Company's joint venture Hindustan Colas Private Ltd. (HINCOL) supplied Bitumen emulsions to numerous road projects in India registering a sales growth of 5% over historical. It also supplied Polymer Modified Bitumen for construction of runways at Chandigarh and Kannur international airports and Air Force stations at Pune, Tambaram, Awantipur, Sirsa and Kalburgi.
During 2018-19, HPCL's wholly owned subsidiary, HPCL Middle East FZCO commenced business operations in UAE. HPCL exported lubes
to Nepal, Bangladesh, Bhutan, Sri Lanka, Myanmar, Vietnam, South Korea, UAE, Democratic Republic of Congo (Africa) and Ecuador (South America). HP Lubricants was the first Indian brand to mark its presence in Vietnam & Ecuador. New lubricant distributorships were commissioned in Bangladesh, Bhutan, Vietnam, UAE & Democratic Republic of Congo during 2018-19. HPCL recorded the bulk diesel sales of 1,372 TMT and commissioned 50 new consumer pump facilities across the country for consolidation of bulk Diesel business. Pipeline project for capacity expansion of Ramanmandi Bahadurgarh Pipeline (RBPL) from 4.71 to 7.11 MMTPA was completed. It strengthened supply infrastructure of various infrastructure projects including storage & distribution depot at Leh, new wagon gantry at Visakh black oil terminal and revamp of the existing tank wagon facility at Jabalpur depot. It signed a business agreement with Indigo at various new airports and added a number of international airlines to the existing customer portfolio.
In 2018-19, Corporation commissioned 478 new retail outlets during the year with network totaling to 15,440. 1,018 new LPG distributorships were commissioned during the year. It commissioned LPG plant in Warangal with a bottling capacity of 60 TMTPA. Aviation Service Facilities was augmented by setting up new fixed facilities at Amritsar, Bhubaneshwar, Raipur and Regional Connectivity Scheme (RCS) location at Kolhapur. HPCL launched its own packaged drinking water brand Reminero', marketed through company's retail outlet network in the cities of Hyderabad, Bangalore and Mysore. Another new initiative undertaken was marketing of Adblue' (Diesel exhaust fluid) through HPCL retail outlet network. It commissioned 478 new retail outlets taking the number of total retail outlets to 15,440 as of 31st March, 2019. In May 2018, mobile fuel dispenser HP Fuel Connect' to supply Diesel to select customers at their premises was commissioned. Solar power panels were installed at 737 outlets and energy efficient LED bulbs were marketed through the retail outlet network. In addition, Electric Vehicle (EV) charging stations have been commissioned at 7 HPCL retail outlets, as of 31st March, 2019.
In FY'20, the Corporation commissioned its first outlet in Bhutan as a part of the tie-up with State Trade Corporation of Bhutan Limited (STCBL) for setting up of retail outlets and supply of motor fuels in Bhutan. It launched a new product, Very Low Sulphur Fuel Oil (VLSFO), to
leverage the opportunities of low sulphur marine fuels effective from January 01, 2020. Aviation Service Facilities (ASFs) was augmented by setting up new facilities at Nagpur, Ranchi and Vidyanagar in Karnataka taking the total ASFs to 44.
In March, 2021 Company acquired 50% stake in HPCL Shapoorji Energy Pvt. Ltd. (HSEPL) held by SP Ports Pvt. Ltd. and became subsidiary of HPCL. In FY'21, Corporation launched a new product 'HP GAS FLAME PLUS' for commercial and industrial customers. It commissioned 112 new regular LPG distributorships taking the total number of distributors to 6,192. During 2021, 51 new CNG stations were commissioned. Import of LNG from International Market commenced and Corporation started marketing natural gas to industrial customers. Aviation Service Facility (ASF) network was augmented with commissioning of new ASFs at Shirdi and Kurnool taking the total number of ASFs to 46. During FY 2020-21, Corporation installed captive solar power capacity of 11.4 MWp at Retail Outlets, POL locations, Pipeline stations etc. taking the total solar power capacity to 43.95 MWp.
During the year 2022, Retail SBU of the Corporation ventured into non fuel retailing by launching branded store Club HP 'Happy Shop' at retail outlets. Further, packaged drinking water under the brand name 'Paani@Club HP' was also launched. 1391 Retail Outlets were commissioned taking the total to 20,025 and 273 Door-to-Door Mobile Dispensers were commissioned, totaling to 660. To meet the rising demand in North East India, a 30 TMTPA Bottling plant was commissioned at Goalpara, the first HPCL bottling plant in Assam. The Corporation has commissioned the 120 TMTPA capacity LPG Plant at Gonda, Uttar Pradesh and an additional 5.5 TMT of LPG Mounded Storage Vessels at various locations. Lube R&D at Mumbai was amalgamated with HPCL Green R&D Centre, Bengaluru with additional facilities bringing in better synergy and resource optimization. Corporation's Mumbai refinery commissioned new tanks at MR-II facility and implemented Naphtha and MTO loading facility ex Mahul terminal. Visakh refinery achieved mechanical completion for Tankage-B package and as part of Sagarmala project at Oil Wharf, commissioned Bitumen shipping line to OR-III jetty during the year. Corporation was the first Oil Marketing Company to place an order for Electrolyser to produce Green Hydrogen.
In March 2023, the Corporation commissioned Crude Distillation Unit with a capacity of 9 MMTPA; it commissioned other critical systems, including, Grid Power connectivity, Raw Water, Bearing Cooling Water, Sea Cooling Water, Plant Air/ Instrument Air Cryogenic
Nitrogen Unit, and a state-of-the-art 'Staged Flare'. Further, in January 2023, six new crudes, including, Ural, Amenam Blend, Egina, Tupi, Novy Port, and Sokol, were processed for the first time in Visakh refineries.
During the financial year 2022-23, the Mumbai Refinery commissioned rooftop solar panels with a capacity of 700 KW. Furthermore,
the Mumbai Refinery continued to source more than 70% of its power requirement from the grid. Additionally, as part of the Visakh Refinery Modernization Project (VRMP), the Visakh Refinery commissioned a project to connect the refinery power to grid at 220KV levels. Virtual Reality Training facilities were launched recently in both Mumbai and Vishakhapatnam Refineries as a part of transformative journey in 2023.
During the year 2023, 1161 Retail Outlets were commissioned taking the total retail network to 21186 numbers. 301 CNG facilities were added at Retail Outlets and EV Charging Systems (EVCS) were added at 1026 Retail Outlets. Corporation launched Power95', a high octane premium branded petrol; solar panels were installed at 4064 Retail Outlets during the year, taking the total number of Retail Outlets with solar power to 10475 of the total Retail network. Corporation commissioned 3 LPG Plants during the year 2023, namely 120 TMTPA capacity LPG Plant at Barhi, Jharkhand; 180 TMTPA capacity LPG Plant at Patalganga, Maharashtra; and 60 TMTPA capacity LPG Plant at Sitarganj, Uttarakhand. Additionally, 21 mounded storage vessels were commissioned at 9 different locations augmenting the LPG storage capacity by 9.8 TMT. It commissioned 45 new domestic and 51 non-domestic LPG distributors, totalling to 6283 domestic LPG distributors and 328 LPG non-domestic LPG distributors. It strengthened the Lubes marketing network by adding 36 new Channel Partners. The Corporation ventured into marketing of Petrochemical products thru the launch of 'HP DURAPOL' brand. It launched new products like HP Super Solvent, LSHS Premium, Marine Bio Fuel and Warm Mix Additive. It started MTO rake unloading facilities at Dharmapuri and Vadodara, commissioned LDO rake receipt and Tank Truck loading facility at Haldia and Hexane tankages at Akola and Sitarganj depots. It acquired 5 nos. Air Force stations and two new locations of Kannur and Mopa during the year 2023 into the Aviation business.
During the year 2023, Corporation commissioned 86 new CNG stations in the GAs authorized to it, taking the total number of CNG stations in authorized GAs to 209. Additionally, 2110 inch-km of steel pipeline, 1233 KM of MDPE pipeline was added and 22,733 new PNG connections were released during the year. Two new locations of Dharmapuri Terminal in Tamil Nadu and Sitar Ganj Depot in Uttarakhand were commissioned and the Kozhikode Depot was recommissioned. To ensure correct quality and quantity of fuel delivered, it has installed upgraded Vehicle Tracking System with AIS-140 compliant devices and Electro Mechanical Locking systems for all Tank Trucks. The Corporation's Pipeline vertical increased the network to 5,132 KM with the commissioning of major pipeline projects of Hassan Cherlapally Pipeline (650 KM) and Vijayawada Dharmapuri Pipeline (697 KM). With these commissionings, petroleum-product-pipeline mainline capacity rose to 35.2 MMTPA. New grade of Bio-marine fuel for bunker use was launched. The Corporation installed captive solar power capacity of 30.34 MWp across various locations during the year, taking the total solar power capacity to 84.355 MWp as of 31st March, 2023.
Hindustan Petroleum Corporation Ltd
Directors Reports
Hindustan Petroleum Corporation Ltd
Company Background
| Incorporation Year | 1952 |
| Registered Office | Petroleum House,17 Jamshedji Tata Road
Mumbai,Maharashtra-400020 |
| Telephone | 91-22-22863900,Managing Director |
| Fax | 91-22-22872992 |
Pushp Kumar JoshiPushp Kumar Joshi| Company Secretary | V Murali |
| Auditor | CNK & Associates LLP/J Singh & Associates |
| Face Value | 10 |
| Market Lot | 1 |
| Listing | BSE,MSEI ,NSE, |
| Registrar | Link Intime India Pvt Ltd
C-101 247 Park,L B S Marg,Vikhroli West,Mumbai-400083 |
Hindustan Petroleum Corporation Ltd
Company Management
| Director Name | Director Designation | Year |
|---|
| Pushp Kumar Joshi | Chairman & Managing Director | 2023 |
| RAJNEESH NARANG | Whole Time Director & CFO | 2023 |
| S Bharathan | Whole-time Director | 2023 |
| AMIT GARG | Director (Marketing) | 2023 |
| Vimla Pradhan | Independent Non Exe. Director | 2023 |
| Bechan Lal | Independent Non Exe. Director | 2023 |
| Vivekananda Biswal | Independent Non Exe. Director | 2023 |
| Ramdarshan Singh Pal | Independent Non Exe. Director | 2023 |
| Nagaraja Bhalki | Independent Non Exe. Director | 2023 |
| K S Narendiran | Independent Non Exe. Director | 2023 |
| Sujata Sharma | Nominee (Govt) | 2023 |
| Pankaj Kumar | Nominee (Govt) | 2023 |
| Suresh K Shetty | Executive Director - Human Resources / WTD | 2023 |
| V Murali | Company Sec. & Compli. Officer | 2023 |
Hindustan Petroleum Corporation Ltd
Listing Information
| Listing Information |
|---|
| BSE_500 |
| BSE_200 |
| BSEDOLLEX |
| BSE_PSU |
| CNX500 |
| BSEOIL |
| BSEMID |
| CNXMIDCAP |
| CNXINFRAST |
| CNXMID50 |
| CNX_PSE |
| CNX200 |
| CNXCOMMODI |
| BSEALLCAP |
| BSEENERGY |
| MID150 |
| LMI250 |
| MSL400 |
| BSEEVI |
| NFTYLM250 |
| NFTYMC150 |
| NFTYMSC400 |
| NFTYOILGAS |
| NF500M5025 |
| NFTYMIDCPS |
| NFTYTOTMKT |
| NFTY200A30 |
| NMIM503020 |
| NMIF503020 |
Hindustan Petroleum Corporation Ltd
Finished Product
| Product Name | Unit | Installed
Capacity | Production
Quantity | Sales
Quantity | Sales
Value |
|---|
| Petroleum Products-Bulk | MT | 0 | 0 | 0 | 372576.02 |
| Rent Recoveries | NA | 0 | 0 | 0 | 795.07 |
| Other Operating Revenues | NA | 0 | 0 | 0 | 460.07 |
| Subsidy | NA | 0 | 0 | 0 | 65.58 |
| Discounts | NA | 0 | 0 | 0 | 0 |
| Adjustment | NA | 0 | 0 | 0 | 0 |
| Pool Account Adjustment | NA | 0 | 0 | 0 | 0 |
| Feed Stock-Carbon Black | MT | 0 | 0 | 0 | 0 |
| Net Recovery for LPG filling | NA | 0 | 0 | 0 | 0 |
| Axle Oil | MT | 0 | 0 | 0 | 0 |
| Greases | MT | 0 | 0 | 0 | 0 |
| Lubricants-Oils | MT | 0 | 0 | 0 | 0 |
| Lubricants-Oils-Base Stocks | MT | 0 | 0 | 0 | 0 |
| Insecticides | MT | 0 | 0 | 0 | 0 |
| Textile Auxiliaries | MT | 0 | 0 | 0 | 0 |
| Rubber Processing Oil | MT | 0 | 0 | 0 | 0 |
| Brake Fluids-Hydraul./Insect. | MT | 0 | 0 | 0 | 0 |
| Automotive Accessories | Rs. | 0 | 0 | 0 | 0 |