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Hindustan Petroleum Corporation Limited (HPCL)


Introduction to HPCL

HPCL is a Navratna Status, and a Forbes 2000 and Global Fortune 500 company. It had originally been incorporated as a company under the Indian Companies Act 1913.

It’s CIN No. L23201MH1952GOI008858.

It is listed on the Bombay Stock exchange (BSE) and National Stock Exchange (NSE), India.

It has about 25% market-share in India among public-sector companies (PSUs) and a strong marketing infrastructure. Oil and Natural Gas Corporation owns 51.11% shares in HPCL and others are distributed amongst financial institutes, public and other investors.

 The company is ranked 367th on the Fortune Global 500 list of the world's biggest corporations as of 2016.

HPCL owns & operates 2 major refineries producing a wide variety of petroleum fuels & specialties, one in Mumbai (West Coast) of 7.5 Million Metric Tonnes Per Annum (MMTPA) capacity and the other in Visakhapatnam, (East Coast) with a capacity of 8.3 MMTPA.

HPCL also owns and operates the largest Lube Refinery in the country producing Lube Base Oils of international standards, with a capacity of 428 TMT. This Lube Refinery accounts for over 40% of the India's total Lube Base Oil production.

HPCL in collaboration with M/s Mittal Energy Investments Pte. Ltd. is operating a 9 MMTPA capacity Refinery at Bathinda with 49% equity and also holds an equity of about 16.95% in the 15 MMTPA Mangalore Refinery and Petrochemicals Ltd. (MRPL).

HPCL has the second largest share of product pipelines in India with a pipeline network of more than 3370 kms for transportation of petroleum products and a vast marketing network consisting of 21 Zonal offices in major cities and 128 Regional Offices facilitated by a Supply & Distribution infrastructure comprising Terminals, Pipeline networks, Aviation Service Stations, LPG Bottling Plants, Inland Relay Depots & Retail Outlets, Lube and LPG Distributorships.

Consistent excellent performance has been made possible by highly motivated workforce of over 10,500 employees working all over India at its various refining and marketing locations.

HPCL is committed to achieve the economic, ecological & social responsibility objectives of sustainable development consistently through varied operations and activities. HPCL’s focus areas are in the fields of Child Care, Education, Health Care, Skill Development & Community Development, touching lives of weaker section of society.

HistoryImage result for Hindustan Petroleum

HPCL was incorporated in 1974 after the takeover and merger of erstwhile Esso Standard and Lube India Limited by the Esso (Acquisition of Undertakings in India) Act 1974. Caltex Oil Refining (India) Ltd. (CORIL) was taken over by the Government of India in 1976 and merged with HPCL in 1978 by the CORIL-HPCL Amalgamation Order, 1978. Kosan Gas Company was merged with HPCL in 1979 by the Kosangas Company Acquisition Act, 1979.

In 2003, following a petition by the Centre for Public Interest Litigation (CPIL), the Supreme Court of India restrained the Central government from privatising Hindustan Petroleum and Bharat Petroleum without the approval of Parliament. As counsel for the CPIL, Rajinder Sachar and Prashant Bhushan said that the only way to disinvest in the companies would be to repeal or amend the Acts by which they were nationalised in the 1970s. As a result, the government would need a majority in both houses to push through any privatisation.

HPCL has been steadily growing over the years. The refining capacity increased from 5.5 million metric tonnes (MMT) in 1984/85 to 14.80 million metric tonnes as of March 2013. On the financial front, the net income from sales/operations grew from ₹2687 crores in 1984–1985 to ₹2,06,529 crores in financial year 2012–2013. During FY 2013-14, its net profit was ₹1740 crores.

Merger and Acquisition

On 19 July 2017, the Government of India announced the acquisition of Hindustan Petroleum Corporation by Oil and Natural Gas Corporation. On 1 November 2017, the Union Cabinet approved ONGC for acquiring majority 51.11% stake in HPCL (Hindustan Petroleum Corporation Limited). On 30 January 2018, Oil & Natural Gas Corporation acquired the entire 51.11% stake of Hindustan Petroleum Corporation.

OperationsImage result for Hindustan Petroleum

HPCL operates two major refineries[8] producing a wide variety of petroleum fuels and specialties, one in Mumbai (West Coast) of 7.5 million metric tonnes per annum (MMTPA) capacity and the other in Visakhapatnam, (East Coast) with a capacity of 8.3 MMTPA. HPCL holds an equity stake of 16.95% in Mangalore Refinery and Petrochemicals Limited (MRPL), a state-of-the-art refinery at Mangalore with a capacity of 9 MMTPA. Another refinery of 9 MMTPA (set up in Bathinda, Punjab by HMEL, a joint venture with Mittal Energy Investments Pte. Ltd). HPCL has signed a memorandum of understanding with the Government of Rajasthan for setting up a refinery near Barmer. It would be operated under a joint venture company (JVC) called HPCL-Rajasthan Refinery Limited.

HPCL also owns and operates the largest lubricant refinery in India producing lube base oils of international standards, with a capacity of 335 TMT. This refinery accounts for over 40% of India's total lube base oil production. Presently HPCL produces over 300+ grades of lubes, specialities and greases.

The marketing network of HPCL consists of 21 zonal offices in major cities and 128 regional offices[12] facilitated by a supply and distribution infrastructure comprising terminals, aviation service facilities, liquefied petroleum gas (LPG) bottling plants, lube filling plants, inland relay depots, retail outlets (petrol pumps) and LPG and lube distributorships.

HPCL has state-of-the-art information technology infrastructure to support its core business. The data center is at Hitech city in Hyderabad.

Products and Services

CSR

  • EnvironmentTo have safe, healthy and pollution free environment in and around all our refineries, plants, facilities and other premises at all times;
    Know More...on Environment
  • CSR PolicyHPCL’s commitment to the development of weaker sections of society is over 2 decades old. Lately, it has upgraded its activities to cover a larger section of the society.
    Know More...on CSR Policy
  • CSR ProjectsAs a responsible Corporate Citizen, HPCL has taken up Education, Health Care, Child care, Livelihood and Community Development. For more information, contact csr(at)hpcl[dot]co[dot]in.
    Know More...on CSR Projects
  • Global CompactHindustan Petroleum Corporation Limited is committed to continue rendering support to the Global Compact programme of the United Nations.
    Know More...
  1. CSR Objectives

    1. HPCL will focus its CSR activities on local communities around which the Company lives and operates like Refineries, Terminals, Depots, LPG Plants, Pipelines, Aviation Stations, Lube Blending Plants, Project locations and other offices, etc. HPCL is committed to allocate at least 60% of the CSR Budget for these local communities.
    2. HPCL will implement CSR activities to empower weaker, less privileged and marginalized sections of the society to create Social Capital.
  2. ORGANIZATIONAL STRUCTURE

    1. CSR CommitteeCorporation will have a Board Level Sub-Committee herein after referred to as CSR Committee consisting of three or more Directors out of which at least one shall be an Independent Director.
      The role / responsibilities of the CSR Committee include:

       

      1. Formulate and recommend to the Board, a Corporate Social Responsibility Policy which shall indicate the activities to be undertaken by the company as specified in Schedule VII of the Companies Act 2013.
      2. Recommend the amount of budgeted expenditure to be incurred on the activities referred to in clause (1) above.
      3. Monitor the Corporate Social Responsibility Policy of the company from time to time.
      4. Institute a transparent monitoring mechanism for implementation of the CSR projects/programs/activities.
      5. Monitor implementation of CSR activities on quarterly basis.
      6. Approve programs / projects / activities with monetary value of Rs.70 Lakhs and above in each case.
      7. Approve projects/programs/activities of any value which are outside HPCL’s focus areas.
    2. CSR Council:Members of the CSR Council:

      Chairman: Director HR,
      Members : ED–HRD, ED–Retail, ED–LPG, ED–O&D, ED–P&P, ED–HSE, ED-MR and Head CSR

      The role / responsibilities of the CSR Council include:

      1. Suggest CSR activities to CSR Department which align with Corporate Vision
      2. Review quarterly the CSR activities and expenditure vs Budgets, for midcourse corrections, if any.
    3. CSR Management CommitteeMembers of CSR Management Committee

      Chairman: Director HR,
      Members: ED – HRD, Functional SBU Head / ED RCD (for Mktg. /Ref proposals resp.), Head – CSR, GM – Corp. Finance, Chief Manager – CSR (Secretary)

      The role / responsibilities of the CSR Management Committee include

      1. Review the proposals for CSR projects/programs/activities received from various locations.
      2. Approve proposals of value between Rs.40 lakhs and Rs.70 lakhs against approved allocated budget.
    4. CSR Working Committee
      Members of CSR Working Committee:

       

      Chairman: Head - CSR
      Members: Head – HR Mktg, DGM Sustainability, Chief/Senior Manager Corp Finance, Chief Manager - CSR (Secretary)
      The role/responsibilities of the CSR Working Committee include:

      1. Review the proposals for CSR projects / programs / activities received from various locations.
      2. Approve proposals of value less than Rs.40 lakhs against approved allocated budget.
  3. CSR Focus area Projects / Programs / Activities:

    1. The corporation’s CSR focus areas are inspired from national developmental policies and international commitments of nation for development of children, women and weaker sections. HPCL CSR focus areas are based on inspiration from legislations on Child Rights, Child Development and Education, National Health Policy and National Health Missions, Health Care in India- Vision 2020, National Skill Development Mission, and policies on community / rural development.

      All projects/programs/ activities will be in the areas of:

      1. Child Care
      2. Education
      3. Health Care
      4. Skill Development
      5. Sports
      6. Environment & Community Development
    2. Detailed break up of projects/programs activities under each of these will be approved in line with the Limits of Authority Manual.
    3. Any projects/programs activities in areas other than the above will be taken with the approval of CSR Committee.
    4. These projects/programs/activities shall be undertaken at any of the following:
      1. The Local development plan of HPCL which is in proximity to HPCL operation areas/locations
      2. In BRGF (Backward Region Grant Fund) districts as identified by Planning Commission.
      3. Where there is a strategic connect for HPCL.

      Not less than 60% of the budget will be spent for the community in and around HPCL locations.

    5. CSR projects / programs / activities will be implemented through implementing partners/specialized agencies. The minimum eligibility criteria of an implementing partner are as follows:
      1. It must be a registered society, trust, company or any specialized agency having minimum three years of experience post registration in handling activities of similar nature.
      2. Experience of working with any Government Body or Public Sector Enterprise will be preferred.

      However the selection authority can request any other qualification on a mandatory basis from the applicants while selecting the implementing partners.

  4. FINANCIAL RESOURCES

    1. Annual CSR Budget
      In alignment with The Companies Act, 2013 the corporation shall earmark as CSR Budget, at least 2% of the average of net profits of the company made during the three immediately preceding financial years.
    2. Budgetary Allocations
      1. Not less than 60% of the Budget will be allocated for activities in a Project mode.
      2. Not more than 5% of the budget will be allocated for capacity building and communications.
      3. Balance budget will be for one time and Other Social Activities.

      On an overall basis, at least 25% of the budget should be with a special focus on SC/ST/Welfare Plan for Weaker Section.
      Any surplus arising out of the CSR projects/programs / activities will not form part of the business profit of the Company.

  5. Monitoring

    1. Monitoring process will be a two tier mechanism thru:
      1. CSR Committee on quarterly basis.
      2. CSR Council on quarterly basis.
    2. In addition to the above, at the end of the year, Third Party Impact Assessment of major projects will be carried out.

HPCL, as a responsible Corporate Citizen, has practiced the CSR model of "Creating Shared Values", by reaching out to the stakeholders, community and society who are directly or indirectly involved in its business operations. It has identified four focus areas for its CSR Programs - Child Care & Education, Health Care, Skill Development and Community Development to make a difference to the underprivileged. HPCL’s CSR activities primarily focuses on identifying gaps in the existing system of the delivery to society and intervening meaningfully with them, so as to create a long-term, sustainable impact; rather than create parallel systems.

Child Care & Education

Health Care

Livelihood

Details of CSR expenditure

Contact Details-

Website - www.hindustanpetroleum.com

Office Of Email / Link Tel.
1. Chairman & Managing Director cmd(at)hpcl[dot]in 022-2286 3600
2. Director - Finance corphqo(at)hpcl[dot]in 022-2286 3601
3. Director - Human Resources corphqo(at)hpcl[dot]in 022-2286 3613
4. Director - Refineries corphqo(at)hpcl[dot]in 022-2286 3603
5. Director - Marketing mktghqo(at)hpcl[dot]in 022-2263 7404
6. Government Directors http://petroleum.nic.in/funmini.htm External Website that opens in a new window -
7. All Other Directors
c/o Company Secretary,
Hindustan Petroleum Corp Ltd,
Petroleum House, 17,
Jamshedji Tata Road,
Mumbai 400020
shrikantb(at)hpcl[dot]in 022-2286 3611

 

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