BPCL braces for clash
With the entry of private players, it prepares for competition
By : DC Correspondent
Update: 2014-09-20 02:27 GMT
Mumbai: With the deregulation of diesel in the not too distant future Bharat Petroleum Corporation Ltd (BPCL) has been preparing itself to take on the competition that is expected with the entry of private players. Among them will be Reliance Industries Ltd which is preparing to reopen its pumps it closed six years ago because of the disparity in the pricing of diesel at the pumps. The public sector marketing companies were able to sell at lower prices as they were subsidised by the government.
BPCL chairman and managing director, S.Varadarajan said, “With the gap between the retail selling price of diesel and the desired selling price narrowing significantly, competition can be expected to intensify in the days ahead, with the likely entry of private players. BPCL has been preparing itself for dealing with the expected changes in the business landscape and is confident of holding it own in the market place.”
K.K. Gupta, director (marketing), told this newspaper that BPCL has the best automation technology and has 4,408 automated petrol pumps and 50 per cent of the volumes. They are automating another 4,000 outlets in the next three years and expect to have a volume share of 75 per cent. The company sells 28 million tonnes (MT) through petrol pumps presently.
Bharat Petroleum Corporation Limited has recorded the highest ever profit till date of Rs 4,060.88 crore on the back of excellent performance of the refining and marketing divisions.The refineries at Mumbai and Kochi generate the highest gross refining margins in the industry due to initatives undertaken to enhance GRMs.The company’s sales volumes was 34.00mt compared to 33.30 mt last year. It gross revenue increased 8.13 per cent from last year at Rs2,7037.25 crore and its net worth stands at Rs 19,458.76 crore.