INTRODUCTION
Bharat pumps & compressors ltd. Incorporated 1970 was established at Naini, the
Trans yamuna area of Allahabad with objective to design, manufacture and supply of capital
goods in the fluid handling field including provision of services connected therewith.
BPC which caters to the need of core sector of the economy such as oil exploration,
refineries, petrochemical, chemical and fertilizer, process industries nuclear and thermal
power plant had in its earlier phases entered into technical collaboration with world
renowned manufacturers of indigenously design and manufacture heavy duty centrifugal and
reciprocating pumps, reciprocating compressors and high pressure gas cylinders and other hi-
tech oil filed equipments such as cementing units, suckers rod pumps etc.
In a very short span, the company absorbed the technology and established itself as
the world renowned manufactured of a wide range of hi-tech products. BPC has supplied its
products to the total satisfaction if the customers in almost all national projects of companies
like ONGC, OIL, BPCL, IOCL, HPC, RCF, Nuclear Power Corporation, Department of
Atomic Corporation, Department of Atomic Energy, IPCL etc.
2
ISO CERTIFICATION
3
4
ABOUT THE PROJECT
This project is based on BPCL’s Market Plan & Product Analysis to ascertain the
marketing plans of the BPCL the primary data is collected from all executive officers of all
departments through direct interview method and the secondary data was collected through
annual report, magazines, personal manual, charts, internet and tables.
Marketing plan is a systematic anticipation and analysis of future coupled with the
methodology for adapting such changes. It takes cares of all the lapses of a marketing
manager and also highlights the weakness of the company, which would be attacked for
meeting the ultimate objective of the company i.e. “Profitability through Customer Delight”.
The marketing planning is must to ensure growth and continued profitability to a
company. This can be achieved through identification of market opportunities, proper
investment plans and utilizing existing resources at the right time and right place.
Without proper marketing planning a marketing manager
a) Losses control over the future of the firm, as he is not in position to know the reasons
of failure and cannot take any corrective action.
b) Faces with the problems of managing by crisis rather than design.
c) Remains busy in counteracting the well timed, well planned offensive strategies of
competitors.
d) Cannot bring his company to the seat of the market leader rather the company will
always be a follower of the competitors.
Every product is designed in a particular way – product analyses enable us to
understand the important materials, processing, economic and aesthetic decisions which
are required before any product can be manufactured. An understanding of these
decisions can help us in designing and making for ourselves.
Product Analysis includes following patterns:
1. Quality of products
2. Technology of products
3. Price concerning products
4. Delivery performance of products
5. Sales promotion concerned with products
6. Market share
Product analysis can seem to follow a fixed pattern:
1. Think about the design from an ergonomic and functional viewpoint.
2. Decide on the materials to fulfil the performance requirements.
5
CHAPTER- II
6
BPCL-NAINI (An Overview)
LOCATION- NAINI
Naini is a satellite township of the city of Allahabad, located on the banks of river yamuna
and developed into an industrial centre. Some other manufacturing organizations located in
Naini are ITI, TSL, AREVA, SAIL, etc
7
About:
Bharat pump & compressor ltd.,, Naini , Allahabad is a certified integrated management
systems company having ISO 9001:2000, ISO 14001:2004, OHSAS 118001:1999 Includes
Environment, occupational health & safety Management systems, with the objective to
design, manufacture and supply capital goods in the fluid handling field including provision
of services connected therewith. BPC caters to the need of core sector of the economy such
process industries and power plants and indigenously designs and manufactures heavy duty
seamless gas cylinders and other hi-tech oil field equipments such as cementing units, sucker
BPC : VISION
• To become an Indian MNC in the field of fluid handling, gas compression, gas
storage equipment, services and project management.
BPCL: MISSION
• To provide quality products and services to core sector industries with special thrust
on oil and natural gas, petro chemicals, refineries, nuclear and thermal power plants,
fertilisers and public transport services complying to health and safety requirements.
BPCL: OBJECTIVES
• To increase market share of their products and services.
• To maximise customer’s satisfaction by providing quality product and services within
stipulated delivery.
• To increase the business of spares and rendering prompt after sales service including
refurbishment.
• Achieve export turnover of 15% by 2009-10.
BPC is the only company in Asia to manufacture a wide range of high tech products,
heavy duty pumps and compressors and high pressure seamless and welded gas cylinders,
under one roof. Such high valued hi-tech products are functioning to the total satisfaction of
the customers with least maintenance cost and optimum energy.
8
BPC is the exclusive manufacturer in the country of carbonate and ammonia pumps for
fertilizer plants, mud pumps, cement pumping units and high pressure reciprocating gas
The company’s important clients to name a few are the following: ONGC, IOC, IPC, GAIL,
IOL and the Department of atomic energy.
CAPABILITIES
• Such high valued hi-tech products are functioning to the total satisfaction of the
customers with least maintenance cost and optimum energy conservation. BPC, the
ISO 9001:2000, ISO 14001:2004, OHSAS 18001 :1999 Company, manufactures
highly technically sophisticated and environmentally friendly products, equalling
International Standards of quality and performance with the support of a most modern
and sophisticated machining centre having latest CMC Machines, assembly, testing ,
heat treatment and fabrication workshops.
• Test facilities. The factory is equipped for full load testing of various parameter for
complete product range up to 2000 KVA
• Quality Assurance. Quality Assurance Department ensures that the products-pumps
and compressors meet the specifications of international codes such as API and are
fully guaranteed for performance on the basis of proven and most updated designs.
Gas cylinders are manufactured as per specifications of international standards such
as DOT, BS, BIS, ISO etc. and usage approval from recognized national/international
agencies.
COMPETENCY
• Quality Assurance Programmes conform to International specifications and
requirements.
• Research and Development efforts are supported by test facilities for model testing in
the centrifugal pumps, reciprocating pumps and compressors area and also carry out
live testing of expendables etc.
• Fully groomed Installation, Commissioning and Spare Parts Division renders Product
Support, Technical Assistance and advice besides providing quick and effective after
sales service
• A strong Design Department has been established which houses Computer aided
Design Centre. Highly qualified, trained, experienced and competent engineers are
9
involved in application engineering, thermodynamic calculations, hydraulic
calculations and systems design in the area of piping, instrumentation, electrical,
operational control etc.
• The company undertakes long term maintenance contract of the equipments installed
and commissioned at customers' plants, with the objective to maximise their profits
and minimise their risks.
CLIENTS
10
PRODUCTS
Centrifugal Pumps
Pumps for Application in Power Plants.
Pumps and Reciprocating Piston and Plunger Pumps.
Compressors Cementing Units.
Sucker Rod Pumping Unit.
Reciprocating Compressors.
Range of Products
11
Reciprocating Compressors
Maximum Power 25,000 KW
Maximum Pressure 450 kg/cm2
Maximum
70,000 NM3/Hr
Capacity
Fluids Handled Air, Nitrogen, Oxygen, Carbon Di-Oxide,
Hydrocarbons, Ammonia, Synthesis Gas,
Hydrogen Sulphate, Coal Gas etc.
GAS CYLINDERS
Maximum Pressure 400 kg/cm2
Maximum Capacity 110 Litres.
Fluids Handled Oxygen, Nitrogen, Hydrogen, Argon, Air,
Helium, Carbon Di-Oxide, Nitrous Oxide,
Acetylene, Ammonia, Chlorine, Freon, LPG,
Compressed Natural Gas (CNG)
12
BPCL BRANCH OFFICES
14
CHAPTER-III
15
CUSTOMER SATISFACTION
In Time Delivery,
Installation
Commissioning of
Products
Right to information Act 2005(here-in-after called the act) provide for setting out
the practical regime of Right to information to secure access to information under the
control of public authorities, in order to promote transparency and accountability in the
working of every public authority. Bharat Pumps & Compressors Ltd., Naini, Allahabad
- 211010(India) is a Public sector Enterprise.
POWER AND DUTIES OF OFFICER AND EMPLOYEES:
BPCL is a manufacturing unit and a commercial organisation. Power and duties
of the officials are well defined.
16
DECISION MAKING PROCESS
Pump compressor
Pumps and compressors Business
CGM(W) production technology DGM(DESIGN-
unit
TECH)
17
NORMS FOR DISCHARGING FUNCTIONS
BPCL has formulated the rules/guide-lines for conducting business in the company.
Some major guiding documents are listed below:
• Delegation of Powers
• Purchase Manual
• Works Manual
• Conduct, Discipline and Appeal rules
• Standing orders
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• Information Facility for Public
• Public Information Officers
• Other Useful Information
19
INFORMATION FACILITY FOR PUBLIC
20
CORPRATE PHILOSOPHY AND OBJECTIVES
Corporate Objectives
• To increase the profitability through judicious productions.
• To maximise customer satisfaction through effective Redressal of
customer queries and complaints.
• To optimise the utilisation of available resources through comprehensive
ERP Techniques.
MANUFACTURING CAPABILITIES
21
TENDER NOTIFICATION
BPT No.
Date of
Descriptio
Notification Date Opening of
n
Bids
461- NON-RETURN VALVE 13.06.2009 04.07.2009
16720892-
264
461- FORGED BAR DIA 280X 15.06.2009 04.07.2009
16510791-
270
461- VANE CELL PUMP 15.06.2009 29.06.2009
2402019-
271
461- CONE. RED./ELBOW 15.06.2009 02.07.2009
16723691-
273
461- SMART LEVEL TRANSMITTER 15.06.2009 02.07.2009
1675279-
274
461- SHIMSET 18.06.2009 29.06.2009
16771343-
277
461- SET OF GASKET 19.06.2009 06.07.2009
16741991-
278
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291 TYPE
461-16771221- "O" RING ID 65.09 CHARD 21.06.2009 06.07.2009
292
461-16715491- HEX BOLT M14 21.06.2009 06.07.2009
293
461-1675379- SMART TEMP.TRANSMITTER 22.06.2009 09.07.2009
294
461-16783684- SEAL RING PAIR TYPE 22.06.2009 09.07.2009
295
461-2401016- ROTARY ENCODER 22.06.2009 13.07.2009
296
461-2679069- PRESSURE GAUGE 22.06.2009 09.07.2009
297
461-16513783- FLANGE 23.06.2009 09.07.2009
298
461-16510991- FLANGE 25.06.2009 11.07.2009
299
461-1673679- THERMOCOUPLE EXT.CABLE 26.06.2009 11.07.2009
300
461-1304119- TAPER MILLING CUTTER 26.06.2009 11.07.2009
301
461-16510492- FLANGE 26.06.2009 11.07.2009
302
461-16650392- UN MACHINED IMPELLER 26.06.2009 11.07.2009
303
461-16650391- DIFFUSER BOWL 26.06.2009 11.07.2009
304
461-2401018- SEMI CONDUCTOR FUSE 26.06.2009 02.07.2009
305
461-3523028- AIR CONDITIONER 27.06.2009 06.07.2009
307
461-16783382- SEAL RING TYPE T-R 27.06.2009 18.07.2009
308
461-352358- PROVIDING AND FIXING OF 27.06.2009 13.07.2009
309 SLIDING WINDOW
461-1644129- DIP STICK 27.06.2009 02.07.2009
310
461-2402069- COVER OF WATER JACKET FOR 28.06.2009 13.07.2009
311 HYDROLIC
461-3523638- SUPPLY & INSTALLATION OF SME 29.06.2009 11.07.2009
312 BATTERIES
461-3523628- HYDRA AS PER FOLLOWING 29.06.2009 20.07.2009
313 SPECIFICATION
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461-3523608- LIGHT COMMERCIAL VEHICLE 30.06.2009 20.07.2009
314
461-16715392- FILLY THREADED STUD 30.06.2009 16.07.2009
315
461-1672619- CSS GATE VALVE NB 2" 30.06.2009 16.07.2009
316
461-3101019- THINNER FOR QUENCHING 30.06.2009 04.07.2009
317
461-3102039- HEAT RESISTANT ALUMINIUM 30.06.2009 16.07.2009
318
461-3104129- THREAD BALL RALL 80 GRMS 30.06.2009 16.07.2009
319
461-1673059- 200KW/4P EX(N)IIA IIB SCI 02.07.2009 13.07.2009
320
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BOARD OF DIRECTORS
7045, SECTOR-B,
DIRECTOR POCKET-10,,
SHYAM 011- s.choubey@eil.co.in
VASANT KUNJ,
CHOUBEY 26101458
(NOMINEE OF EIL) NEW DELHI-
110070, INDIA
HIGHLIGHT
BPC marches ahead with turnover of Rs. 236.36 Corers (Growth 21.4% over last
year) and Profit before tax of Rs. 26.88 Corers for the Financial Year 2008-09
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CHAPTER-IV
26
MARKETING PHILOSOPHY
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• BPCL has initiated action to become a member of international Trade
Council. Exp.
• As agents are the main contacts with the ultimate customers, we are also
looking for appointing some agents of repute in foreign countries.
• To participate in international trade fairs which are held in India & abroad.
• Contacting ultimate customers and mailing our product leaflet and brochures
to them.
• Improve the level of customer satisfaction be mail questionnaires and
personal discussion. Organising camps at various sites for a limited period listening to
customer’s problems, resolving them and providing technical guidance.
• Presentation to customers / consultants before project sets date through
audiovisual presentation slides / films.
• Tie ups with turnkey contractors.
• Scanning and circulation of tender notices advertised in newspapers,
Government bulletin.
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PRODUCTS
Gas Cylinder
• High pressure seamless industrial cylinders.
Pumps & Compressors
• Centrifugal pumps
• Reciprocating piston and plunger pumps
• Reciprocating compressors carbonate and ammonia pumps
• Sucker rod pumping units
• Pumps for nuclear power station application.
• Vadodara
• Mumbai
• Chennai
• Delhi
• Dibrugarh
• Kolkata
QUALITY OBJECTIVE
To improve average delivery performance of our products by five percent,
yearly. Target for delivery performance of the year 2004-05 is seventy percent.
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30
CHAPTER- V
31
ACCOUNTING POLICIES
FIXED ASSETS
1. Capitalisation
• Land given by the government of Uttar Pradesh is valued notionally at
value shown in the records of land Acquisition officer, Allahabad and the corresponding
amount credited to Capital Reserve Account.
• Fixed Assets are valued at cost including allocation from expenditure
during construction wherever so applicable.
• Capitalisation out of inter plant transfer is made at factory cost
including excise duty.
2. Depreciation
• Depreciation on assets capitalised and put to use and / or sold /
discarded during the year is charged on monthly pro-rata basis.
• Pattern and dies with fabricators, suppliers / contractors and in
stock are depreciated @11.31%.
VALUATION OF INVESTMENT
Investments are valued at cost.
VALUATION OF INVENTORY
Raw materials, components and stores and spares
The pricing of issues of raw materials, components and stores and
spares is done on periodical weighted average cost method.
Loose tools
Loose tools valuing Rs.500/- or above are depreciated @ 20% on written
down value and below Rs.500/- are charged off revenue.
Work in progress
Work in progress of the products manufactured by the company are
valued at absorption cost or estimated realizable value whichever is lower jobs done
internally for use in capital works are valued at factory cost.
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Finished goods
Finished goods are valued at absorption cost or realisable value
whichever is lower. Finished goods manufactured against stock orders are valued at
absorption cost.
Advance from customers
Advance from customers include those received with letters of intent /
sale contract and progressive payments received as per contracts during the tendency of
the order.
Miscellaneous expenditure to the extent not written off or adjusted
Deferred Revenue Expenditure:
Techs know how / application engineering charges:
Deferred revenue expenditure of technical know-how fees / application
engineering charges are charged off to profit and loss account as per technical estimates.
Payment under V.R.S.
The ex-grated payment made by the
company under V.R.S. (Voluntary Retirement Scheme) is treated as deferred revenue
expenditure to be charged off to profit and loss account in five equal yearly instalments.
However, the same is charged to profit and loss account in full, in case of receipt of
grant of equivalent amount from Govt. of India.
Claims
By The Company:
Claims for the price escalation on sale contracts, export incentives
and other fiscal incentives etc. are accounted for on accrual basis.
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Research & Development expenditure
Research & Development expenditure is charged to profit and loss
account in the year of incurrence. However, R&D expenditure on fixed assets is treated
in same way as other fixed assets of the company.
Foreign Exchange
Liability for foreign currency loan and / or deferred credit
payments is realigned at the year’s end exchange rates. Any loss or gain arising thereon
is charged to profit and loss account.
Provisions
Gratuity
The gratuity liability of the company has been taken into account
based on actuarial valuation got done through actuary, at the end of the year.
Leave Encashment
The liability on account of leave encashment of the company has
been taken into account based on actuarial valuation got done through actuary, at the end
of the year.
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HUMAN RESOURCE DEVELOPMENT
35
DIRECTORY OF COMPANY EMPLOYEES
36
37
CHAPTER-VI
38
MARKETING DEPARTMENT
Energy is a sector which is vastly flourishing around the world as all the vehicles
and machineries some where or around requires oil. Various companies are indulged in
oil business so as to provide service and furnish their business. Companies indulged in
oil business relates to:
- Oil Exploration
- Oil Refining
The geological section of oil exploration companies search for oil in the block
section. For this purpose they require certain equipments for which they send an enquiry
and pass the tender for the same.
Also oil refining companies while refining oil to extract different forms of oil
from crude oil being provided by Oil Exploration Company, require certain equipment
for which they also send an enquiry and pass the tender for the same. Some of their
requiring equipments are manufactured at BPC, such as Reciprocating pumps,
Centrifugal Pumps, Reciprocating Compressors, etc.
Enquiry is of two types:
- Budgetary
- Firm
In Budgetary enquiry the budget is estimated as to what is the competitive price
and what is the price company can bear and how can company can add a new feature
into the product to create its USP and still making it competitive in its market.
In firm enquiry the enquiry of firms are made that which are the companies who
can provide the equipments meeting the standards, lower price(L1) and other required
specifications
TENDER
A tender is a list of required materials in a specific format as intended by
the desired party. After the firm / company enquiry is being made by the company the
39
tender is being raised or opened so as to invite those companies capable of meeting the
specifications required by the company.
TYPES OF TENDER
- Global
- National
- Limited
- Single
Note: BPC generally uses limited tender.
PARTS OF ENQUIRY
• Commercial
In this commercial terms are decided with the company
• Technical
In this technical terms are decided with the company.
If all the terms are agreed between parties then supplier is being sent a letter of
intent (L.O.I.). Then for furnishing the objective the company distributes the sale order
with help of marketing department to all sections or department of company for
furnishing their orders.
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PURCHASE DEPARTMENT (M.P.X.)
The functioning of purchase department initiates from issuing of indent or
requirement slip, in the organisation the purchase is made of:
• Production Items:
- Metallic
- Non Metallic
It includes raw materials, semi finished goods prepared by casting, finished product
• Non Production Items:
- Non Consumables
- Consumables
It includes office stationeries, electricity etc.
If indent budget is below 8 lacks then tender committee B takes decision
regarding purchase of items, it includes managers in the purchase department.
If indent budget is above 8 lacks then tender committee A takes decision
regarding purchase of items, it includes chiefs of marketing department.
Some of the items that are purchased are such as face milling cutters, cooling
systems, oil seal, moulds, wax seals, rubber materials, connectors for tube fittings etc.
Normally enquiry for intent preparation takes 21 days otherwise if urgent
according to the requirement.
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DESIGN DEPARTMENT
ASSEMBLY DEPARTMENT
After all the quality check is being done and material is purchased the production
starts in various stages; as products are bulky so various parts of the product is
manufactured separately.
After it is being manufactured, there assembling takes place. And the product is
assembled tested and finalised.
After that inspection is done by an inspector i.e. a third party generally they are
member of a statutory body, if product meets the desired standard a Letter Of
Award( L.O.A.) is being issued by the inspector. And he provides a release note after
getting it packing is done and product is being delivered.
Important Terms
• Bank Guarantee:
If any supplier is contingent in supplying the product then
bank pays the loss.
• Performance Security:
If supplier fails to provide proper service then the bank
pays back the customer.
• Liquidated Damages:
If delivery is late on part of customer of payment then he is
liable to pay back the supplier the compensation and instead if supplier
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delays the delivery of the product at a given time then customer is liable
to receive the compensation from supplier leading to deduction in
product’s price.
• Deemed Order:
It is if Indian suppliers get excise free from government in
their product’s delivery with foreign parties so as to increase exports.
SALES DEPARTMENT
STEPS TO PROCESS A SALES ORDER
1. Receipt of sales order from our marketing department and spare parts and
component division (SPCD) (SB).
2. Open a file corresponding to the sale order simultaneously control that file
in file control that file in file control register by sale order no.
3. After receiving the packing list from packing department. We are sending
this packing list after valuation to the market in the case of main product
(RP, CP, & RC) and SPCD in the case of spares of above main product for
the rechecking of valuation.
4. After rechecking the valuation of above packing list, the packing list is sent
to the excise cell of our department for the calculation of excise duty.
5. Preparing excise invoice in five copies for clearing the material from
factory gate, after getting packing list from excise cell.
6. Sending this excise invoice to store department for dispatch of material and
after dispatching the material they send us dispatch documents (GR,
Challan, Invoice Cum Delivery Note first copy i.e. original for buyer.)
7. After getting dispatch documents we are preparing commercial invoice in
ten copies with six forwarding :
1. 3 copy for customer
2. 2 for marketing department
3. 1 for branch
4. 2 for office record
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5. 1 for master record
6. 1 for consignee
8. After making final commercial invoice we send it our marketing
department as well as SPCD for taking actions to realise the payment.
44
Sales Tax Section
Sales tax is a statutory due which is collected from the customers and paid to the
government on sales made by the company during financial year.
The sales tax section is an integral part of sales section.
Types of Sales Tax:
1. Central Sales Tax (CST) charged @ 2% against form “C” and 4% if form “C” is
not collected from the customers.
2. Value Added Tax (VAT) charged flat @ 4% without any form for any type of
goods sold whether it is RP, CP, RC or GC.
Deposit Of Tax:
The tax collected as above is to be deposited to thee government account as
follows:
1. CST / VAT – Up to every 20th of the following next month if 20th is a holiday
then the day before the 20th. But for the month of March we have to deposit the tax for
the period of 1st march to 0th march on 25th march and for the period from 21st to 31st
march, the tax is to be paid as usual on 20th of following month i.e. April.
2. Interest @ 14% per annum will be charged if the sales tax not deposited in the
stipulated time as mentioned above.
3. The tax is to be deposited on due date without fail ass mentioned above
irrespective of whether the same is collected from our customers or not.
Filing Of Return:
We are required to file the Sales Tax Return within the 20th of every next month
in the prescribed Form No. 24 with annexure ‘A’ & ‘B’ as per the VAT Rules 2008.
Forms required to be produced under CST:
1. ‘C’ – For any central sale.
2. ‘E’ – For transit sales, required to be produced when the goods dispatched to the
other site of the party.
3. ‘F’ – for the transfer of the stock from H.O. to the other branches of the
company.
4. ‘H’ – Used in the course of export.
45
SPECIMEN OF TAX RETURN BEING FILED BY AN EMPLOYEE:
08-NOV-08
TAX RETURN FOR 2008-09
PSL NO: 0184 NAME: MUNNA LAL PH. NO.
DEPT. NO: 150 DESIG: SR ATTDT (W) SCALE CODE: 8PAN NO: ACJPL3781C
TOTAL = 243376.90
HBLD. INTT (-) = 0.00
PROFESSIONAL TAX (-) = 0.00
MEDICLAIM (-) = 0.00
HANDICAPT (-) = 0.00
TOTAL = 243376.90
PF (+) = 22116.00
VPF (+) = 30000.00
GLIC (+) = 637.00
LIC PENSION (-) = 0.00
LIC (+) = 0.00
LIC PERSONAL (+) = 34300.00
EDUCATION (+) = 0.00
PPF (+) = 0.00
ULIP (+) = 0.00
HOUSE BUILD LOAN (+) = 0.00
NSC (+) = 0.00
NSC DEEMED (+) = 0.00
IDBI / ICICI (+) = 0.00
TOTAL (TAXABLE) = 156330.00
TOTAL SAVING FOR REBATE = 87053.56
TAX = 633.00
CESS / SURCHARGE = 19.00
NET TAX = 652.00
TAX ALREADY PAID = 0.00
NET PAYABLE TAX = 652.00
NOTE:
46
*IF ANY CHANGE PL. RETURN THE SIGNED FORM BY 20.11.08 IN FINANCE
(SIGN.OF EMPLOYEE)
47
STORE ( M.S.X.)
Store consists of three sections:
• Receiving Cell
• Transport Cell
• Custody Cell
For which Daily Material Arrival Report is prepared i.e. DMA Report. After
DMA, DR is prepared i.e. Daily Receipt of stores in which location is specified after that
SRV is prepared Store Receipt Voucher and all the copies of SRV are distributed to all
concerned departments.
SRV is maintained in group codes and is matched by material. The store keeper
keeps a watch on the procedure. The entries are made and material’s inventory is
maintained. After all formalities the details are sent to finance department and feedings
are made.
PEX department issues Store Issue Voucher which is are forwarded to work in
progress department. After forwarding material ship the material’s code is matched and
if found true then it is transferred to W.I.P. Custody time to time issues material for
production so that there cannot be any in convenience while production.
In transport cell items are transported in and out of the organisation, if only few
items are there for transporting then BPC sends Their Truck. The terms of payment by
the party in the process of transport are:
48
CHAPTER-VII
49
ANALYSIS OF MARKETING PLAN
Tender/Enquiries from Customer
Marketing Department
(Register all Tender)
Marketing Department
(Preparation Of Offer)
Offer Negotiation
(Commercial terms & condition, Technical quarries if any)
Job Manufactured
Packaging
Departure Of Customer
Troubleshooting
50
(If Any)
After getting the order the function of marketing department does not end. This
department also monitors the execution of order. After receiving the order the marketing
department gives the order details to the design department to prepare indent, later on
various other departments carry of the functions like purchases, production planning and
control, shop and assembly, technical section and lastly marketing department also carry
on their function of the manufacturing process.
Not only order fetching in the beginning and seeing at the end is the function of
marketing, but execution of orders is also its prime responsibilities.
MARKETING STRATEGY
The main marketing strategy of BPCL is CAPTIVE MARKETING STRATEGY.
In this regard company used to sell their product at low profit or at no profit at loss and
put high price of spare parts of that good to take out margin and losses. That is company
used captive pricing strategy for the growth of sell of company’s product.
PROFIT AND GROWTH STRATEGIES
Prior to the Liberalized Economic Policy, Public Sector Enterprises had the
benefits of price and purchase preference (with no limits) in case of domestic bids and
deemed export benefits in case of ICB bid with the increased competition from private
sector cos. Into Indian Market. The following measures have to be adopted to counter
external threats and offset our weakness.
CREATING OF MARKETING CELL
Marketing cell is fully responsible for:
• Market Survey
• Data Bank maintenance for market demands, business share, competitors
data activities.
• To find market strategies of competitors, their strength and weakness.
• Arrangement of technical seminars for new projects.
• Updating market plans.
51
• Once the order is matured into order, the file will be taken over by
contract execution group.
RELOOKING INTO PRICING POLICY
In view of very tough market conditions and worldwide recession and low order
book position.
• Order will be booked on marginal costing basis.
• Review of pricing policy once order book position improves recovery overheads
from spare parts.
SEPARATE COSTING CENTRES FOR DIFFERENT PRODUCTS
Since machining facilities and labour requirement are different for different
products, separate costing centres shell is created so that the each product price is
competitive as compare to our competitors.
PREORDER PURCHASING ACTIVITIES BY MARKETING
• To have competitive detailed offers for bought outs and major casting.
• To have complete technical details of bought outs before finalization of
order by the customer.
• Sub-ordering time period will be reduced.
• Reduction in overall cost will be assured.
STRENGTHNING OF BRANCH OFFICE
• For day to day dealings with customers and to have latest feedback on
offers and competitors activities.
• To improve upon business relationship with customers and consultants.
AGGRESSIVE MARKETING
• Frequent interaction with end users and consultants.
• Impress upon customers to include conditions in favour of BPCL.
• To impress upon customers to recommend to turnkey bidders for buying
BPCL made equipment only.
• Marketing intelligence reports and takes immediate action on it.
52
SERVICES AND SPARE PARTS
• Prompts after sales services and supply of spare parts.
• Posting of service personnel at major business centres.
• Taking up turnkey projects.
• Will help improve in order book position as well as financial position.
• Will also help to have more orders for as now most of the customers are
going for turnkey jobs rather than having more vendors for different items.
• Tie-ups will be arranged with reputed turnkey bidders.
OPTIMUM SELECTION
Optimum selection of BPC products as well as bought outs to meet customers
requirements.
ENTRY TO THERMAL POWER SECTORS
Since 60% of total pump requirements are from power sectors, entry to this
business give additional business to the tune of 300-500 lacks initially. This will require:
• Simplification of design
• Procurement of casting and manufacturing will be done in batches.
• Tie-ups with BHEL/DCPL and other turnkey contractors.
IMPROVEMENT IN DELIVERIES
• By creating separate market cell for review of ordered.
• Production control sales otherwise.
SALES PROMOTIONAL STRATEGIES
• Maintaining close liaison with government and public sector clients and
consultants.
• Participation in trade delegation, trade fare and exhibitions in India and
abroad.
• Organization seminars and workshops for important users and
consultants.
53
• Improve the level of customer satisfaction by:
• Presentation to customers before projects zero data through audio-visual
presentation.
• Tie-ups with turnkey contractors.
• Scanning and circulation of tender notices advertised in newspaper,
government bulletins.
MARKETING OBJECTIVES
• To achieve a leading position in design, manufacture, testing supply and
creation of equipment for process industries.
• To be a leader in design, manufacture, testing 7 supply of nuclear pumps.
• To improve up market share of centrifugal pumps for refineries,
petrochemicals, fertilizers sectors and other into power sector.
• To develop a team of experts for centrifugal pump engineering, quality
control, production, erection and commission to make available consultancy services so
as to guide and supervise plant performance of other companies.
• To develop system capabilities in executing turnkey projects.
54
PRODUCTS ANALYSIS
55
(1) PRODUCT: CENTRIFUGAL PUMPS
56
• Slop Oil Pumps
• Bitumen Pumps
• Molten Sulphur Pumps
THERMAL POWER
• Condense Extraction Pumps
• Feed Water Pumps
• Boiler Feed Pumps
• Booster Pumps
• Boiler Recirculation Pumps
• Lube Oil Pumps
CROSS COUNTRY OIL PIPELINES
• Crude Transfer Pumps (Main Line as well as Booster)
• Product Transfer Pumps (Main Line as well as Booster)
• Sump Pumps
NUCLEAR POWER / HEAVY WATER
• Primary Heat Transfer (PHT) Pumps
• Moderate Pumps
• Shut-down Cooling Pumps
• Emergency Core Cooling (ECCS) Pumps
• Canned Motor Pumps
• D.M. Water (containing H2S) Pumps
PETROCHEMICALS
• Aromatic Pumps
• Naphtha Pumps
MAJOR COMPTETORS
* KSB pumps ltd, Pune
* Kirloskar Ebara ltd. Pune
* Sulzer Pumps Pvt. Ltd. Mumbai
* Best & Compton Engg. Ltd. New Delhi
57
* Worthington Pumps, Calcutta
FACTOR AFFECTING BUSINESS
* Prices
* Deliveries
* Adherence to customer’s requirements/ specialization
* After sales services & spare pates backup
* Government policies
58
SWOT ANALYSIS
STRENGTH
• Good engineering capabilities.
• Good design backed by reputed foreign pump manufacturer.
• Good manufacturing & testing facilities.
• Good performance of equipments already supplied.
• Good quality & high degree of reliability.
• Stable industrial relations.
WEAKNESS
• High material & manufacturing cost.
• Delays in deliveries.
• Lack of planning & scientific monitoring of jobs.
• Lack of reliable vendors for casting and other bought outs.
• Inadequate after sales services & delays in resolving customer’s problems.
• Higher fixed costs & administrative expended.
• Lack of aggressive marketing
• Inadequate technology up gradation.
• Poor liquidity position 7 market credibility.
OPPORTUNITIES
• Large investment planned in oil & gas, petrochemical’s refineries, power 7
chemical industries etc. during 8th plan period.
• Growing demand for pumps in all the core sectors.
THREATS
• Entry of foreign suppliers due to recession in world markets.
• Increase competition from Pvt. Sector cost and entry of more & more foreign cos.
into main.
59
• Markets resulting in cut – throat competition
• Dependence on World Bank, other agencies for funds resulting large – scale
import of equipments.
• Project consultants/process licensors imposing preference on Indian customers
leading to imports.
• Foreign cost quoting dumping prices.
• Reduction in customers’ duties has made offers from overseas companies.
• More competitive in comparison to Indian counterparts.
• Due to financial constraints customers going in for turnkey package with credit
package manufacturers/suppliers.
• Our own ex-collaborators are now competing us.
• Ability of foreign companies.
• To quote very competitive price.
60
(2) PRODUCTS: RECIPROCATING PUMPS
FERTILIZERS
61
• Sucker Rod Pumps
STEEL AND OTHERS
• Hydraulic Press
• Hydro-blasting Pumps
• De-scaling Pumps
MAJOR COMPETITORS
SWOT ANALISIS
STRENGTH
62
• Good engineering capabilities.
• Good design backed by reputed foreign pump manufacturer.
• Good manufacturing & testing facilities.
• Good performance of equipments already supplied.
• Good quality & high degree of reliability.
• Stable industrial relations.
WEAKNESS
• High material & manufacturing cost.
• Delays in deliveries.
• Lack of planning & scientific monitoring of jobs.
• Lack of reliable vendors for casting and other bought outs.
• Inadequate after sales services & delays in resolving customer’s problems.
• Higher fixed costs & administrative expended.
• Lack of aggressive marketing
• Inadequate technology up gradation.
• Poor liquidity position 7 market credibility.
OPPORTUNITIES
• Large investment planned in oil & gas, petrochemical’s refineries, power 7
chemical industries etc. during 8th plan period.
• Growing demand for pumps in all the core sectors.
THREATS
• Entry of foreign suppliers due to recession in world markets.
• Increase competition from Pvt. Sector cost and entry of more & more foreign cos.
into main.
• Markets resulting in cut – throat competition
• Dependence on World Bank, other agencies for funds resulting large – scale
import of equipments.
63
• Project consultants/process licensors imposing preference on Indian customers
leading to imports.
• Foreign cost quoting dumping prices.
• Reduction in customers’ duties has made offers from overseas Companies.
• More competitive in comparison to Indian counterparts.
• Due to financial constraints customers going in for turnkey package with credit
package manufacturers/suppliers.
• Our own ex-collaborators are now competing us.
• Ability of foreign companies.
• To quote very competitive price.
• Eliminating domestic bidders
• Prices preference available earlier may be dropped in public company
• Increasing competition from private sector companies
64
RANGE Maximum pressure -450 kg./cm2
Maximum pressure -450 kg./cm2
Maximum power – 25,000 Kw
GASES HANDLED Air nitrogen, oxygen, hydrogen, carbon Di- oxide,
hydrocarbons, ammonia, syntheses gas, hydrogen- sulphate
coal gas etc.
FERTILIZERS
65
• Air compressors for well activation service.
• Condense off gas service for Gas sweetening plants.
• Propane Gas service for Gas processing plant.
PETROCHEMICALS
OTHERS
66
• Cooper engineering USA
• Prices
• Deliveries
• Technology
• After sales services & spare parts back up
• Govt. policies
MARKET SHARE: 70%
PRESENT MARKET SIZE Rs. 160 COROR
SHARE IN CO. BUSINESS: 70
SWOT ANALYSIS
67
STRENGTH
• Good design backed up by reputed foreign pump manufacture
• Good performance of equipment already supplied
• Good quality & high degree of reliability
• Good reference as more than 200 compressors gad been already supplied
WEAKNESS
• High material & material manufacturing cost
• delays in deliveries
• Lack of sufficient design and engg. Expertise
• Very low value addition.
• Limited experience leading to lack of optimum selection.
• Lack of planning & scientific monitoring of jobs.
• Inadequate after sales services & delays in resolving customer’s problem
• Lack of aggressive marketing
• Lack to technology up gradation
• Poor liquidity position & marker credibility
• Reference to BIFR
• Enhancement in no. of site problem.
OPPORTUNITIES
• Very good requirement of compressors exist from GAIL, ONGC, IOCL, IBP,
Hydrocracker Projects Fertilizers & petrochemicals project large investment
envisages in these sector during 8th plan period.
THREATS
• Entry if foreign suppliers due to recession in the world market.
• Competition from ex-collaboration.
• Dependence on the world – bank, other agencies of fine result in large scale
import equipments
• Project consultants/process licensers imposing preference on Indian customer.
• Foreign cos. Quoting dumping prices
68
• Reduction in customer duties has made offer from overseas companies.
• Due to financial constraints customers are going in for turnkey package of credit
package thus altogether
• More competitive in comparison on Indian Customer.
69
SWOT ANALYSIS
STRENGTHS
• Good design backed by reputes foreign pump manufacture
• Good manufacture & testing facilities.
• Good quality & high degree of reliability.
WEAKNESS
• High material & manufacturing cost.
• Lack of aggressive marketing.
OPPORTUNITIES
• Requirement of gas cylinder exist from BPCL, ONGC, NTPC, NPCIL, TELCO,
BHEL & for Delhi Transport (CNG) Gas cylinders.
THREATS
• Entry of foreign suppliers due to recession in the world market.
• Project consultants.
• Preference on Indian customers.
70
PRODUCTS TYPE
A) CENTRIFUGAL PUMPS
BPCL offers a wide range of pumps types conforming to latest API 610
edition available in various size and ideally suited for use in process and allied
industrial such as:
• Petrochemicals
• Chemicals
• Fertilizers
• Thermal Power
• Crude and Product Petroleum Pipelines
• Pipeline Services for crude and refined petroleum transportation
• Nuclear Power Plants
• Off-Shore Oil Exploration
• Refineries
• Booster Services
NUCLEAR PUMPS:
BPCL developed moderator pumps model VN400X75
(mechanical seal type) and emergency core cooling pump model VBN 430X16 for
235MW Nuclear Power Plants.
For more advanced technology BPCL after absorption of technology from
Pumps Gruinard, France is manufacturing a comprehensive product time for Nuclear
Pumps required for 235 MW and 500 MW Nuclear Power Plants..
B) RECIPROCATING PUMPS:
71
BPCL design and manufacture custom built Reciprocating pumps
confirming to API(674) latest edition available in various sizes for a wide range
of applications for handling a variety of liquids such as Petroleum, Crude, Mud,
Ammonia, Carbamate, Cementing Slurry, DM – Water Condensate.
These pumps are basically required for services such as:
• Oil Exploration and Refining
• BPCL offers crude transfer pumps/Effluent injection pumps/Water recycle
pumps/Drilling mud pumps/Work over rig pumps/Cementing slurry
pumps/Sucker rod pumping units for such services.
FERTILIZERS:
In this area, BPCL offer Ammonia Reactor Feed Pumps, Carbamate Feed
Pumps and H.P.Wash Pumps.
REFINERIES:
In this area, BPCL offer sulfadizing Chemical Pumps wash water pumps
and wax hydro finishing units.
NUCLEAR POWER PLANTS:
• TRIPLEX PLUNGER PUMPS:
• QUINTUPLEX PLUNGER PUMPS:
• TRIPLEX MUD PUMPS:
C) RECIPROCATING COMPRESSORS:
BPCL design and manufacture custom built Reciprocating Compressors for a
wide range of applications/gases such as:
• Ammonia synthesis (N2+3H2), Carbon di-oxide, Ethylene, Natural gas (CNG),
Hydrocarbon mixtures, Ammonia, Oxygen, air etc.
• Maximum power rating is 25000KW and the discharge pressure is up to
450kg/cm2.
• BPCL enjoys the unique privilege of having shared with its ex-collaborator M/s
Nuevo Pig none, Italy a world-renowned giant having vast experience in this
field.
72
RECIPROCATING COMPRESSORS SERVE THE FOLLOWING SECTOR:
• Fertilisers
• Refineries
• Oil & Gas exploration and refining
• Petrochemicals
• CNG for automotives
• Air Separation Plants
• Heavy water projects
• Steel plants
• Gas distributor plants
• Oxygen plants.
73
Volumetric: 1000 litres to 4800 litres (water capacity)
Working Pressure: 365kg/cm2 and more
Test Pressure: 447kg/cm2
Code: IS – 7285(PT-II):2004
Material: CR-MO Alloy Steel
74
ANALYSIS OF COMPETETION
PRODUCT ANALYSIS OF CENTRIFUGAL PUMPS
S.No. Competitive Factors BPC KSB Sulzer Kirloskar Flowmore Others
Of Ebara
01 Quality A A C B C C
02 Technology A A B A B B
03 Price C B A A A A
04 Delivery Performance B B A A A B
05 Sales Promotion C A B A A B
06 Market Share 20% 20% 20% 15% 10% 15%
BPC
KSB
Sulzer
Kirloskar of Ebara
Flowmore
Others
01 Quality A C B B
02 Technology A C B B
03 Price B A B A
04 Delivery Performance A B A A
05 Sales Promotion B A B B
06 Market Share 40% 5% 10% 45%
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BPC
METRIPLEX
L&T
Others
01 Quality A A C B B
02 Technology A A C B C
03 Price C B A B B
04 Delivery Performance A A A B B
05 Sales Promotion B A B A B
06 Market Share 25% 15% 10% 10% 40%
BPC
IR
KGK
Atlas Copco
Others
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PRODUCT ANALYSIS OF HIGH PRESSURE CYLINDERS
S.No. Competitive Factors BPC Everskanto Maruti Others
01 Quality A A B B
02 Technology A A A A
03 Price B A A A
04 Delivery Performance C A A B
05 Sales Promotion C A A B
06 Market Share 20% 35% 30% 15%
BPC
Everskanto
Maruti
Others
77
BROAD CUSTOMER PROFILE
78
• Oil & natural gas corporation ltd.
• Gas authority of India ltd.
• Oil India ltd.
(D) THERMAL POWER
• National thermal power corp.
• Harduaganj thermal power station
• Captive power plant
• Namrup thermal power station
• Neyveli lignite Corp. ltd.
(E) ATOMIC ENERGY
• atomic energy commission
• Nuclear power corp. ltd.
• Heavy water projects at : Talcher, Manu guru, Tuticorin.
• Bhabha atomic research centre.
• Indira Gandhi centre for atomic research
(F) OTHER INDUSTRIAL SECTOR
• National aluminium co, ltd.
• Steel authority lf India ltd, : Bokaro, Bhilai, Riurkela, Vizag
• Central coal fields led., Giddi
• Kerala news print & paper ltd.
• Bharat heavy plate & vessels ltd., Visakhapatnum.
• Rashtriya Ispat Nigam ltd., Vizag.
• Hindustan Zinc ltd. Vizag.
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(B) FERTILIZERS
• Fertilizers corp. of India ltd.
• Hindustan fertilizers corp. of India ltd.
• National fertilizers ltd.
• Indian farmers fertilizers co-operative ltd.
• Fact-cochin
• Indian explosive ltd., Kanpur
• Krishak Bharti co-operative ltd., Hazira
• Rourkela steel plant Rourkela
• Indo- gulf fertilizers & chemical corp. ltd.
• Tata chemicals ltd. Bavaria
(C) OIL & GAS
• Oil & natural gas commission
• GAS authority of India ltd.
• Oil India ltd.
(D) OTHER INDUSTRIAL PROJECTS
• Coal India ltd.
• Steel authority of India ltd. Bokaro, Bhilai, Rourkela, Vizag
80
PRODUCT COLLABORATION
CONSULTANTS
81
EXPORTS
1. Objective:
Situation Government of India in its new industrial policy has great emphasis on
exports in all spheres including engineering goods. In view of this BPCL should
immediately explore possibilities for export and services.
The recent devaluation of rupees and the rupees convertibility will help BPCL to
be more competitive. It is true that immediate returns will not accrue, but
certainly it will help BPCL in the export business in the long run.
Once we enter into export market handling of foreign turnkey bidders, will be
easier and they will be attached towards BPCL automatically.
2. Scope for export:
Pumps and compressors are being manufactured with latest design
and technology. Once quality and delivery is maintained entry into export market
will not be difficult with little additional efforts. Export market exists for
following products Centrifugal and Reciprocating pumps, Reciprocating
Compressors, Gas Cylinders finished castings, components for pumps and
compressors. Target market for above items exists in following countries Middle
East and African countries such as Arabia, UAF, Iraq, Uganda, Philippines,
Nigeria, Sudan, South East Asian Countries such as Romania, Russia etc.
Neighbouring countries such as Bangladesh, Sri Lanka and Nepal etc.
3. Past performance:
(a) 10 numbers centrifugal pumps to Romania during 1984-85 of value Rs.
17 lacks
(b) 1500 nos. gas cylinders to Oman and Kuwait during 1970-80
(c) BPCL has executed an order for 12000 oxygen and 11000 DA cylinders.
Valuing Rs. 1000 lacks for Algeria through Mhan Exports India Ltd.
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CHAPTER-VIII
83
CONCLUSION
It is felt that the company is now better geared to manage its order execution
cycle more satisfactorily orbit this assessment is based on an analysis of its currents
order book log position. A security of its recent operational and financial performance a
study of orientation related to order execution also due consciences has been taken of the
series of systematic improvement recently implement by the company.
The main objective attained from the study of marketing plan and product
analysis is to grow the company (BPCL) in following areas:
• Grow its Capital in Market
• Sustain and Grow its Market Share
• Grow Performance Wise.
• Understand and meet out Customer Demands
• Create Goodwill
• Improving Technology
• Becoming a leader in Design, Manufacturing, Testing, Supply of Pumps and
Compressors.
• Attain Share in Foreign Market, also.
In the absence of proper marketing plan and analysis company may lose in all
above mentioned areas. Thus for growth of economic, social health of the organisation in
local and global market proper designing and analysis of marketing plan must be
carefully and effectively conducted to gain desirable results.
BPCL is also participating in international trade fairs which are held in India &
abroad as a strategic policy of its marketing planning to cover the national and
international market.
The systems are mostly in place though some process simplifications have to be
carried out and certain procedural redundancies need to be remained. The company also
need to make the inter-department co-ordination and effective in addition BPCL must be
completely responsible for internal follow up as well as service as a single paint contact
with the client.
84
It is felt that the company is now better geared to manage its order execution
cycle more satisfactorily; this assessment is based on an analysis of its current order
book log position. A security of its recent operational and financial performance a study
of orientation related to order execution also due consciences has been taken of the series
of systematic improvement recently implemented by the company.
85
SUGGESTIONS
In the report we have seen the graph of order booking targets and sales turnover.
In the graph of order booking we have seen that the order for our product is increasing
year. It means that with the increase of order to target. We have efficiency of the
organisation; we have to improve on certain points:
• Cost efficiency:
To get the achievement of cost efficiency we have to keep certain
points in our mind they are resale of scraps, inventory management, work
distribution.
• Profit generation:
In the SWOT analysis we have seen there is a great opportunity
products, these can be turnkey for the company. The company should try to work
on export. They should lay more emphasis on export.
• Improving technology:
There is no doubt that the product of company is not good.
But from time to time the regular improvement of the technology. It improves the
quality of the product as well as save the time.
• Becoming a global player:
With the last dealings we can conclude that the company had
satisfy there maximum customers. After those dealings the company should try
to get a good name in India as well as in international market.
• Employee handling:
Generally we have seen that in the maximum government sectors
there is lack of professionalism. It means that we have to make an environment
of work in the company. The company should try to motivate the worker to
become punctual and loyal for the company.
86
BIBLIOGRAPHY
Bibliography refers to the sources through which information has been retrieved
in my project development:
Books:
Websites:
• http://google.com
• http://bharatpumps.co.in
• http://altavista.com
• http://hindustantimes.com
• http://indianexpress.com
87
ANNEXURE
88