Hindustan Petroleum Explained

Hindustan Petroleum Corporation Limited
Type:Subsidiary
Industry:Petroleum
Location:Mumbai, Maharashtra, India
Key People:Pushp Kumar Joshi [1]
Revenue: (2024)[2]
Operating Income: (2024)
Net Income: (2024)
Assets: (2024)
Equity: (2024)
Num Employees: 8,154 (2024)
Parent:Oil and Natural Gas Corporation

Hindustan Petroleum Corporation Limited (HPCL) is an Indian public sector undertaking in petroleum and natural gas industry, headquartered in Mumbai, and a subsidiary of the Oil and Natural Gas Corporation (ONGC), which is owned by the Ministry of Petroleum and Natural Gas, Government of India.[3] [4] [5]

Since 2018, Oil and Natural Gas Corporation has owned majority of its stake.[6] It is ranked 367th on the Fortune Global 500 list of the world's biggest corporations as of 2016.[7] On 24 October 2019, it became a Maharatna (PSU).[8]

History

HPCL was incorporated on 5 July 1952 as Standard Vacuum Refining Company of India Limited. In 1974, it changed its name 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 privatizing 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 nationalized in the 1970s. As a result, the government would need a majority in both houses to push through any privatization.[9]

HPCL has been steadily growing over the years. The refining capacity increased from 5.5 million metric tons (MMT) in 1984–85 to 14.80 million metric tons as of March 2013. On the financial front, the net income from sales and operations grew from 2,687 crores in 1984–1985 to 2,06,529 crores in the 2012–13 financial year. During the 2013–14 financial year, the company's net profit was 1,740 crores. During the 2021–22 financial year following the COVID-19 pandemic, HPCL's profit was ₹6,383 crore and its revenue was ₹ 3,72,642 crore (its highest ever, up by 38%).

Merger and acquisition

On 19 July 2017, the Government of India announced the acquisition of HPCL by the Oil and Natural Gas Corporation (ONGC).[10] On 1 November 2017, the Union Cabinet approved ONGC for acquiring a majority 51.11% stake in HPCL. On 30 January 2018, ONGC acquired the entire 51.11% stake, thus gaining majority ownership.[6]

Operations

HPCL wholly owns two major refineries in India:[11] one in Mumbai (west coast) with a capacity of 9.5 million tonss per year, and one in Visakhapatnam (east coast) with a capacity of 8.3 million tons per year.[12]

In addition, HPCL holds an equity stake of 16.95% in Mangalore Refinery and Petrochemicals Limited, a company that runs a state-of-the-art refinery in Mangalore with a capacity over 9 million tons per year. HMEL, a joint venture between HPCL and Mittal Energy Investments Pte. Ltd, operates another refinery of 11.3 million tons per year in Bathinda, Punjab.[13] HPCL has signed a memorandum of understanding with the Government of Rajasthan for constructing a refinery near Barmer; it would be operated under a joint venture company called HPCL Rajasthan Refinery Limited (Popularly known as HRRL).[14]

HPCL also owns and operates the largest lubricant refinery in India, with a capacity of 335,000 metric tons, producing lube base oils of international standards. This refinery accounts for over 40% of India's total lube base oil production. Presently, HPCL produces over 300 grades of lubes, specialties, and greases.

The marketing network of HPCL consists of 21 zonal offices in major cities and 128 regional offices[15] facilitated by a supply and distribution infrastructure comprising terminals, aviation service facilities, liquefied petroleum gas bottling plants and distributors, lube filling plants and distributors, inland relay depots, and retail outlets (petrol pumps).

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

Facilities

HPCL operates refineries in India, including:

In addition, HPCL operates other manufacturing facilities, including:

Products

HPCL produces a wide variety of petroleum fuels and specialties:

HPCL also offers HP Drive Track Plus cards for consumers purchasing their products, and provides cashback as per the government cashback offers.

International rankings

Major ongoing projects

Subsidiaries

Hindustan Petroleum Gas

HPCL is focused on the appraisal and development of hydrocarbon accumulations in onshore and offshore projects. Operating projects include the Hirapur Marginal oil fields of the Cambay basin (near Gandhinagar, Gujarat) under a service contract with ONGC, and the pre-NELP production sharing contract for the Sanganpur field (Mehsana) with M/s Hydrocarbon Development Company (P) Ltd.

See also

Notes and References

  1. Web site: Limited. Hindustan Petroleum Corporation. Bod.
  2. Web site: https://www.bseindia.com/xml-data/corpfiling/AttachLive/351daa32-5d7e-4893-8431-6905c8c96db6.pdf.
  3. Web site: Latest Shareholding Pattern - Hindustan Petroleum Corporation Ltd.. 2020-07-29. trendlyne.com.
  4. Web site: 2014. Sustainability report 2013-14. live. https://web.archive.org/web/20150317142817/http://hindustanpetroleum.com/documents/pdf/HPCL_Sustainability_report_2014.pdf. 17 March 2015. 13 May 2015. 7.
  5. Web site: List of Maharatna, Navratna and Miniratna CPSEs |. dead. https://web.archive.org/web/20130719123802/http://dpe.nic.in/publications/list_of_maharatna_navratna-and_miniratna. 19 July 2013. 2013-07-28. dmy-all.
  6. News: ONGC buys govt's entire 51.11% stake in HPCL for Rs 36,915 crore. The Economic Times. live. https://web.archive.org/web/20180618175430/https://economictimes.indiatimes.com/industry/energy/oil-gas/ongc-buys-govts-entire-51-11-stake-in-hpcl-for-rs-36915-crore/articleshow/62729805.cms. 18 June 2018. 10 October 2018.
  7. News: Fortune Global 500 list. CNN Money. live. 22 July 2016. https://web.archive.org/web/20160821170013/http://beta.fortune.com/global500/list/filtered?hqcountry=India. 21 August 2016.
  8. News: Press Trust of India. 2019-10-23. Govt accords 'Maharatna' status to Hindustan Petroleum, Power Grid Corp. Business Standard India. 2020-08-02.
  9. Book: Privatization and Labor Restructuring . 136 . Gopal Ganesh . Academic Foundation . 2008 . 978-8171886340.
  10. Web site: Cabinet allows ONGC to buy out govt stake in refiner HPCL. 19 July 2017. hindustantimes.com. 7 April 2018. https://web.archive.org/web/20180212201943/https://www.hindustantimes.com/business-news/cabinet-allows-ongc-to-buy-out-govt-stake-in-refiner-hpcl/story-2oqzKRbSfScBDmCt3oiL2L.html. 12 February 2018. live.
  11. Web site: Hindustan Petroleum Corporation Limited Relies on Oracle Database Security Solutions . /www.indiaprwire.com . 2010-07-26 . https://web.archive.org/web/20130926215420/http://www.indiaprwire.com/pressrelease/information-technology/2010051750909.pdf . 26 September 2013 . dead .
  12. Web site: IBM News room - 2008-09-04 HPCL Partners With IBM to Deploy a Path-Breaking RFID Solution - United States . 03.ibm.com . 2008-09-04 . 2012-11-09 . https://web.archive.org/web/20111011134512/http://www-03.ibm.com/press/us/en/pressrelease/25041.wss . 11 October 2011 . live .
  13. http://www.hmel.in HMEL
  14. Web site: HPCL to set up new Refinery in Barmer Rajasthan. 22 September 2013. https://web.archive.org/web/20131017061957/http://news.biharprabha.com/2013/09/hpcl-to-set-up-new-refinery-in-barmer-rajasthan/. 17 October 2013. live.
  15. Web site: Buy HPCL With Target Of Rs 490 | TopNews . Topnews.in . 2010-05-07 . 2010-07-26 . https://web.archive.org/web/20120406172035/http://www.topnews.in/buy-hpcl-target-rs-490-2265932 . 6 April 2012 . live .
  16. Web site: Welcome to Mangalore Refinery and Petrochemicals Ltd . live . https://web.archive.org/web/20191021081220/https://www.mrpl.co.in/ . 21 October 2019 . 28 June 2013.
  17. Web site: Home - HMEL . live . https://web.archive.org/web/20150703002949/http://www.hmel.in/ . 3 July 2015 . 2 July 2015.
  18. Web site: SALPG - South Asia LPG Company Pvt Ltd . live . https://web.archive.org/web/20150503005823/http://www.salpg.com/ . 3 May 2015 . 2 July 2015.
  19. Web site: :: Hp Lubes :: . 6 December 2019 . https://web.archive.org/web/20120529225052/http://www.hpmilcy.com/ . 29 May 2012 . dead .
  20. http://www.hpracer4.com/ Racer4
  21. http://www.hpaviation.in HP Aviation
  22. Web site: India's top 10 brands. business.rediff.com. 26 Oct 2010. https://web.archive.org/web/20101028074814/http://business.rediff.com/slide-show/2010/oct/26/slide-show-1-tata-motors-is-indias-top-brand.htm. 28 October 2010. live.

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