HPCLs Distribution Challenges of

Lube Oils

Lube Oil Market

Engine Oil

Diesel Engine
Oil

Passenger
Car Motor Oil

Fore Stroke

Write your great subtitle here

Market Leader

Lal Ghoda

Racer 4

HPCL is market leader in Base Oils,

Racer 4
Excel

Benefit Number Two

Cruise
Milcy

Cruise
Classic

Milcy Turbo
HP Ace

which comes from Crude.

Entrepreneur It is defined as an individual

who organizes or operates a business or
businesses.

Benefit Number Three

Entrepreneur It is defined as an individual
who organizes or operates a business or

Champion

businesses.

Benefit Number Four

Entrepreneur It is defined as an individual

HP No.1

who organizes or operates a business or

businesses.

HPCLs Lube Oil Scenario

Refineries

Depots

Out for distribution

HPCL is market leader in base Oils
and sells to other PSUs and MNCs
Lube Oil Market Growing at 3%, HPCL
Lube Oils growing at 15% due to
Aggressive Pricing, Brand Promotion,
Channel Restructuring, and Strategic
Planning

HPCL
Base Oils

Distributors

Genuine
Oil

Fleet
Owners

Retailers
/
Worksho
ps

B2B

Castrol,
Shell

Bajaj Auto,
Tata Motors

Petrol
Pump
Dealers
B2C

Logistic
Companies

Retail
Consumers

Retail
Consumers

HPCLs Channel Structure

Levels

Intensity
Sales
Management
4

3 layer structure in B2B Sales. 10% of Sales

4 layer structure in B2C Sales. 90% of Sales
Higher Margin in Genuine Oil Sales. Bulk Sales to fleet
owners

4000 retail outlets in Delhi/NCR

100 Fleet Owners and about 20 Genuine Oil Centres
90% Penetration in Delhi, while about 70% Pan-India
In Delhi/NCR serviceability of all outlets is high

Does not have company owned sales force

Sales Officer is the entry level position, handling
territory, stocks, distributors, and training sales force
Territory allocation done based on experience, seniority,
and skill level
Mechanics are the major influencers in the market

HPCLs Channel Structure

Distributors

Retailers/Workshops

OEM/Genuine Oils

Petrol Pump Dealers

Fleet Owners

Consumers

Selected based on capital,

space available, sales force,
fleet
Delhi- 5, Rewari , Gaziabad,
and Faridabad - 1
5-7% Margins
3 DSRs
30-50kl/m average
15-30 days Credit Cycle
Evaluated on Sales , Capital
Put in, and Effort Put in
Exclusive & Shared
Distributorship depending on
regional sales, and Competitors

4000 MultiBrand retailers in

Delhi/NCR
10% Margins
3-5kl/Month
Retailer Meets, Mechanic Meet
and Loyalty Programs exist
Servicibility is high in
Delhi/NCR
Retailers and Mechanics Key
Influencers

Force Motors, Bajaj

Higher Margins for HPCL
Growing area for HPCL

petrol pump owners who sell

diesel/petrol
also keep lube oils in
sales of lubes are generally not
as high here

Companies such as DHL,

FedEx
Bulk Sales over extended
period of time
Not more than 2% of lube sales

4 key attributes while buying

engine oils-:
Quality
Quantity
Price
Availability
Customers are the automobile
owners or drivers who shop for
the lube oils.
SKU Litres 0.5,0.9,1,5,10,15,20,26, 50 and
210 Litres
Bikes Upto 1 Litre, Car 3-5
Litres
HPCL has no control on the
end customer

Issues & Recommendations Navale please

put as per format

Spurious
Products

Cross Territory
Sales

Fluctuating
Prices

Retailers
working as
Wholesalers