Last time we saw the SWOT Analysis of Bharat Petroleum, today let’s look at the SWOT analysis of Hindustan Petroleum.
Hindustan Petroleum is a market leader in the oil and gas industry in India. The company is known for its services and has strong backing from the government also.
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In this blog, we will look at the SWOT analysis of Hindustan Petroleum, before that let’s know more about the company.
About Hindustan Petroleum
HРСL оr Hindustаn Рetrоleum Соrроrаtiоn, fоunded in 1974 is аn Indiаn stаte оwned enterprise hаving its heаdquаrters аt Mumbаi, Mаhаrаshtrа. The Government оf Indiа owns neаrly 51% equity in HРСL. It’s field оf орerаtiоns аre in Оil аnd Nаturаl gаs. HРСL is listed in bоth Bombay stock exchange аnd Nаtiоnаl stock exchange in India. It hаs Mаhаrаtnа stаtus аmоng the рubliс seсtоr organizations in India аnd also features in Forbes glоbаl fоrtune 500 lists. HРСL neаrly hаs а mаrket shаre оf 25% market share in Indiа. In terms of turnover, it is Indiа’s 6th largest соmраny.
| Founder | Mukesh Kumar Surana |
|---|---|
| Year Founded | 1928 |
| Origin | Mumbai, India |
| No. of Employees | 10,352 |
| Company Type | Public |
| Market Cap | ₹ 46.05 T Crore (2021) |
| Annual Revenue | ₹ 350,773 Crore (2020) |
| Net Income/ Profit | ₹ 31,006 Crore (2020) |
Products offered by Hindustan Petroleum:
The company offers various kinds of products.
- Natural Gas
- CNG
- LNG
- Lubricants
- Petrochemicals
Competitors of Hindustan Petroleum:
Being in the oil industry, it faces tough competition. Some of its competitors are as follows.
- BPCL
- British Petroleum
- ONGC
- Indian Oil
SWOT Analysis of Hindustan Petroleum
It is a brief overview of the company’s strengths, weaknesses, opportunities & threats it offers. The strengths and weaknesses of a company are shown through its internal efforts and threats and opportunities are affected by external factors.
1. Strengths of Hindustan Petroleum
- Leading Player – HРСL is оne оf India’s mаjоr oil and gas companies, it also operates lаrgest lube refinery in Indiа.
- Wide Portfolio – The company operates in multiple products including oil, lubricants, natural gas. It has multiple stations all over the company generating good revenue.
- Large Employee Base – HPCL has a large employee base empowering the company, it has an employee base of more than 11000 workers.
- Backing by Government – The company has strong backing from the government that helps it in having financial stability.
2. Weaknesses of Hindustan Petroleum
- Intense Competition – The company faces stiff competition from other oil companies and international players in this industry.
- Government Interventions – The interventions from the government often lead to disruption in operations leading to loss.
- Rising Prices of Fuel- The rising prices of fuel are making people move towards electric vehicles.
3. Opportunities of Hindustan Petroleum
- Increase in Demand – There is an increase in the demand for natural gas in the transport industry. Also, the covid has made people prefer their vehicles over public transport which is a great opportunity for the company.
- Partnerships – Hpcl can look towards strong partnerships with international players and big companies for further expansion and growth.
- Increase the Price – Going with the trend the company can raise the prices to earn marginal profits.
4. Threats of Hindustan Petroleum
- Electric Motors and Appliances – Several customers are shifting to the new market segment and are using electric vehicles and solar appliances which is a major threat for the company in the future.
- Tough Competition – The company faces intense competition from its established companies like Reliance, Essar, BPCL, etc.
- Price Fluctuations – The price of crude oil constantly fluctuates in the Middle-East countries according to its irregular excavations which leads to continuous change in their product’s prices.
Conclusion
Hindustan Petroleum is one of the leading corporations in the petroleum sector in India. In the SWOT analysis of Hindustan Petroleum, we observed that the company has made a presence across the nation and its brands are well established in the market. The company regularly faces challenges with the increase in the number of competitors in the same space.
With increasing awareness of the customers upon the use of electric motors and appliances, the company needs to expand its services and grow it using better marketing efforts. In a changing world where digital marketing is of supreme importance, being well informed in the field is a must for all marketing passionates. If you are eager to learn more, check out IIDE’s 3 Month Advanced Online Digital Marketing Course to know more.
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