Monday, May 19, 2008

HPCL Set For Next Level Of Growth

Mumbai: It took two major challenges and a strong desire to succeed for state-owned Hindustan Petroleum Corporation Ltd (HPCL) to undergo a complete transformation from a public sector entity to a corporate in the real sense.

In the winter of 2002, the company’s top management got together to deal with what was said to be the biggest challenge in its 40 years of existence — the deregulation of fuel retail business.

In a bid to break free from the humdrum existence of a conventional pubic sector unit and get on to the fast lane of innovation and development, the company decided to develop a customer-centric strategy and plug the gaps where it was lacking since inception.

“What followed was six months of extensive research at the grassroots level, involvement of all junior level officers and inputs from cross-functional teams,” S P Chaudhry, executive director — retail, HPCL told DNA Money.

He said the company carved out a task force comprising four zones, each having 8 teams with a total of 200 junior level officers. “These people travelled across the country spending time talking to customers such as truck drivers, tractor owners, premium class customers and even three-wheeler owners.”

“That was our phase of transformation as everybody found a role for themselves in the company’s growth,” said Chaudhry. The company decided to develop strategies individually focused on highways, rural areas and urban areas.

The exercise started showing results and customer loyalty increased. HPCL started frequenting award functions, bagging awards on quality, customer loyalty and branding, etc, apart from increasing its market share every year quite substantially. However, the company didn’t get time to rest on its laurels.

By the time it was two years into its concerted customer-centric practice, it realised that in spite of an increasing recognition of the company’s efforts, it was losing market share to new entrants like Reliance, Essar and Shell.

“That was the second-biggest challenge for the company and we were determined to overcome it,” said Chaudhry.

Though, the company again adopted a customer-focused approach, this time it was more inclined towards innovation and bringing in best practices.

“That was the time we introduced concepts such as retail automation, e-fuel stations, adoption of high-end technology, vehicle management system, refreshing washrooms called Fleurs and many more,” he said.

The company also tied up with several food and beverage companies and brought in a loyalty cards scheme for its customers.

Consequently, HPCL regained its position as an important player in the Indian fuel retail industry and witnessed tremendous growth in its market share.

Today, the company is the third-biggest fuel retailer in the country and has one of the best maintained and designed petrol pumps chains in the country.

But, much remains to be done. “Though we have come a long way, we are not at all satisfied. We are focusing on deliverance of guaranteed quality and quantity, dealer training and third-party surveillance for our next level of growth,” said Chaudhry.

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