Feasibility of Power 99 Petrol in Dehradun City: Guidance

Feasibility of Power 99 petrol in Dehradun City
Internship project submitted in partial fulfillment of requirements for

Masters of Business Administration (Oil & Gas Management)
Under the guidance of
Internal Guide: External Guide:
Mr. Anirudh Singh Mr. G.H.V. Rao
Asst. Professor Chief Regional Manager
UPES Dehradun HPCL Dehradun
Submitted by
Simran Dua R020217068
Abhishek Nautiyal R020217001
Gyanesh Bhardwaj R020217092
Rupal Johari R020217093
MBA- Oil & Gas Management
2017-2019
School of Business, UPES

Feasibility of Power 99 petrol in Dehradun city
Student Declaration
I hereby declare that the submission is my own work and that, to the best of my knowledge and
belief, it contains no material previously published or written by another person nor material which
has been accepted for the award of any other degree or diploma of university or other institute of
higher learning except where due acknowledgement has been made in the text.
Simran Dua
500058541
R020217068
MBA- Oil & Gas Management
2017-2019
School of Business, UPES
Page no (2) of the Report- Feasibility of Power 99 petrol in Dehradun City

Acknowledgement
It is my proud privilege to express my profound sense of gratitude and sincere indebtness towards
Mr. G.H.V. Rao, Chief Regional Manager, Dehradun Retail Regional Office- Hindustan Petroleum
Corporation Limited (A Government of India Enterprises), who gave me this opportunity to work on
this project and helped me in this process wherever necessary. I would like to extend my sincere
gratitude and appreciation to Miss Priyanka Panwar, HPCL, Dehradun Regional Office for helping
me throughout my project.
I would like to express my deepest gratitude towards my internal mentor Mr. Anirudh Singh, Asst.
Professor- SOB, UPES for his guidance and Dr. S.K. Pokhriyal, Associate Dean, UPES for his
continuous support and help.

Table of Contents
1. Student declaration………………………………………………………………………….2
2. Acknowledgement…………………………………………………………………………..3
3. Executive Summary…………………………………………………………………………6
4. Research Objective………………………………………………………………………….7
5. Company Profiling and Competitors Comparison……………………………………….….8
6. Branded Fuels……………………………………………………………………………….13
7. Octane Number (RON, MON) & Knock Resistance………………………………………..15
8. Problem Identification………………………………………………………………………16
9. Research Methodology……………………………………………………………………...17
10. Sales of Branded Fuels in India……………………………………………………………..21
11. Sales of Branded fuel in North Central Region……………………………………………..22
12. Sales of Branded Fuel in Uttarakhand………………………………………………………23
13. Vehicles that require power 99………………………………………………………………24
14. Presence of vehicles in Dehradun that require Power99…………………………………….26
15. Survey for Power 99…………………………………………………………………………29
16. Singh Service Station………………………………………………………………………..33
17. Premier Motors………………………………………………………………………………35
18. Devbhoomi Filling Station…………………………………………………………………..37
19. Comparison of sales in Retail Outlet in Dehradun…………………………………………..39
20. Racing competition in Dehradun…………………………………………………………….40
21. Ethanol Blending…………………………………………………………………………….43
22. Conclusion…………………………………………………………………………………...47

List of Tables, Graphs and Charts

1. Table 1-Financial Comparison for year 2016-2017…………………………………………11
2. Graph 1- Financial Comparison for year 2016-2017………………………………………..12
3. Table 2 & Graph - Sales of Branded Fuels in India…………..……………………………..21
4. Table 3 & Graph - Sales of Branded fuel in North Central Region………….……………...22
5. Table 4 & Graph - Sales of Branded Fuel in Uttarakhand………………...……………..…23
6. Table 5- List of high end motorcycles………………………………………………………25
7. Presence of vehicles in Dehradun that require Power99
8. Survey for Power 99…………………………………………………………………………21
 Singh Service Station………………………………………………………………...34
 Premier Motors………………………………………………………………………36
 Devbhoomi Filling Station…………………………………………………………...38
 Comparison of sales in Retail Outlet in Dehradun…………………………………..39

Executive Summary
Rising income, expanding product lines and affordable repayment options have fuelled India’s
appetite for luxury cars, pushing the market 21 spots in just 10 years in world ranking.
India saw sales of close to 40,000 luxury cars last calendar year, marking a staggering 10-fold jump
in just 10 years. According to research firm IHS Markit, India’s luxury car market was ranked 27th
last year. It was in the 48th position in 2007.
No less than 100 luxury car models and dozens of their variants are on sale in India with prices
ranging from Rs 25 lakh to Rs 10 crore. Mercedes-Benz, BMW, Audi, Jaguar Land Rover, Volvo,
Porsche are the brands forming the luxury car market.
Last year, the segment’s growth broke a five year record with a rise of 16 percent. This growth has
come despite the segment being in the highest tax bracket where such cars share space with sin
goods such as tobacco, pan masala and aerated drinks. Luxury cars are presently taxed at 53 percent
(28% GST + 25% Cess).
The per capita income of Uttarakhand is expected to rise to Rs 1,77,356 in financial year 2017-18
from Rs 1,61,102 in 2016-17 marking an increase of Rs 16, 254 as per data prepared by the State
Directorate of Economics and Statistics which was released on Saturday. As per the data, the state’s
growth rate was estimated at 6.77 % in FY 2017-18, down from 6.95% in 2016-17 and 7.52 in 2015-
16.
In terms of per capita, the state showed a steady increase with income levels rising from Rs 1,46,454
in 2015-16 to Rs 1,61,102 in 2016-17 and Rs 1,77,356 in 2017-18. In the national context, too, the
data said, per capita levels in the country had risen from Rs 94, 130 in 2015-16 to Rs 1,03,219 in
2016-17 to Rs 1,11,782 in 2017-18. The state GDP was estimated at Rs 2,17,609 at current prices for
the year 2017-18 which indicated an increase of 11.25 % from 2016-17, the data said.
Though India’s luxury car market is much smaller than other countries and even other emerging
markets, what makes the Indian market a unique case is the fact that the country is one of the few in
the world to boast of having assembly facilities of every luxury car manufacturer.
Rapid growth in the economy of state as well as rising income of individuals in the city are the
combined factors tha might be the cause for the sale of branded fuel.

Research Objectives
1. To study the feasibility of Power 99 in Dehradun city
2. To find the number of high octane power vehicles in Dehradun city
3. To analyze the Retail Outlet selection for launching Power 99 fuel

Company Profiling and Competitors comparison
Indian Oil Corporation Limited (IOCL)
Indian Oil Corporation Limited is the country’s flagship national oil company, with business
interests straddling the entire hydrocarbon value chain - exploration & production of crude oil & gas,
refining, pipeline transportation and marketing of petroleum products, natural gas and
petrochemicals. Ranked at 88th position in the year 2013, it is the highest ranked Indian corporate in
the prestigious Fortune ‘Global 500’ listing. IndianOil and its subsidiaries enjoy a dominant share of
national refining capacity, pipeline capacity in the downstream sector and petroleum products’
market. IndianOil’s strong workforce of over 34,000 employees has been instrumental in meeting
India’s energy demands for more than five decades now. At IndianOil, operations are strategically
structured along the verticals - Refineries, Pipelines, Marketing, R&D Centre and Business
Development - E&P, Petrochemicals and Natural Gas. IndianOil and its subsidiaries own and
operate 10 of India’s 22 refineries and its cross-country network of over 11,000 kms of crude oil,
product and gas pipelines is the largest in the country, meeting the vital energy needs of consumers
in an efficient and environment-friendly manner. The Corporation caters to the rural market through
its indigenous Kisan Seva Kendra retail outlets. IndianOil serves every nook and corner of the
country, every hour of the day, with countrywide supply network, backed by bulk storage terminals
and depots, aviation fuel stations and LPGas bottling plants. Almost every second household in India
Profile is fuelled through Indane LPGas, through its vast network of retail distributors.
A large network of consumer pumps is also in operation for the convenience of bulk consumers,
ensuring products and inventory at their doorstep. The Corporation has a portfolio of powerful and
much-loved energy brands that include Indane LPGas, SERVO lubricants, PROPEL petrochemicals
and the likes. IndianOil’s ISO-9002 certified Aviation Service commands an enviable market share
in the aviation fuel business and successfully services the demands of the Indian Defence Service,
domestic and international flag carriers as well as private airlines. The Corporation also enjoys a
major share of the fuel needs of the bulk consumer, industrial, agricultural and marine sectors. To
maintain its position as a market leader and to provide the best quality products and services,
IndianOil is presently investing in a multitude of projects for augmentation of refining, pipelines and
petrochemicals capacities, expansion of marketing infrastructure and product quality up gradation.
IndianOil’s world-class Research & Development Centre is a pioneer in lubricants formulation,
refinery processes, pipeline transportation and alternative fuels. This nodal agency of the Indian
hydrocarbon sector has been instrumental in ushering in research on Hydrogen fuel in the country.
DHDT technology, Light Naptha Isomerization technology, INDMAX technology (for maximizing
LPGas yield), INDAdeptG, Oilivorous bio-remediation technology (extended to marine applications
too), IndianOil - Bringing Energy to Life 13 Diesel Hydro DeSulphurisation(DHDS) catalyst, a
special Indicat catalyst for Bharat Stage - IV compliant Diesel, IndVi catalyst for improved distillate
and FCC throughput, and adsorbent based deep sulphurisation process for gasoline and diesel

streams are some of the in-house technologies and catalysts developed by IndianOil. Having set up
subsidiaries in Sri Lanka, Mauritius, United Arab Emirates (UAE), Sweden and USA IndianOil is
simultaneously scouting for new business opportunities in the energy markets of Asia and Africa.
IndianOil has been pursuing exploration and production (E&P) activities in collaboration with
consortium partners. The Corporation’s domestic portfolio includes 13 blocks, out of which in two
blocks, IndianOil is having 100% participating interest as an operator.
The overseas portfolio consists of 10 blocks spread across Libya, Iran, Gabon, Nigeria, Yemen &
Venezuela. Natural Gas Business is a thrust area for IndianOil with focus on marketing, import,
transportation & infrastructure development. IndianOil has marketing rights for 30% of the LNG
procured by Petronet LNG Limited for its Dahej Terminal & upcoming Kochi Terminal. IndianOil is
setting up a 5 MMTPA LNG regassificiation terminal of its own at Ennore. The Corporation has
presence in City Gas Distribution through its JV company, Green Gas Ltd and is in two joint
ventures with other state run oil & gas marketing companies to set up laying three cross country gas
pipelines. The Corporation has forayed into alternative energy options such as wind, solar, bio-fuels
and nuclear power. A wind power project is operational in Gujarat and underway in Andhra Pradesh
and the solar power initiative is being spearheaded on a pilot basis in Jodhpur, Rajasthan. The Bio
Energy Research Centre has commissioned the first integrated lignocellulosic Biomass to Ethanol
pilot plant in India for conversion of biomass to Ethanol. IndianOil has a concerted social
responsibility programme to partner communities for health, family welfare, education, environment
and cultural heritage protection. The Corporation has always been at the forefront during national
emergencies stepping in to provide assistance and relief & rehabilitation as well as maintaining an
uninterrupted supply of petroleum products. IndianOil has successfully combined its corporate social
responsibility with its business offerings, meeting the energy demands of millions of people every
day, across the length and breadth of the country.

Hindustan Petroleum Corporation Limited (HPCL)
HPCL is a Navratna Status, and a Forbes 2000 and Global Fortune 500 company. It had originally
been incorporated as a company under the Indian Companies Act 1913. It’s CIN No.
L23201MH1952GOI008858.
It is listed on the Bombay Stock exchange (BSE) and National Stock Exchange (NSE), India.
HPCL owns & operates 2 major refineries producing a wide variety of petroleum fuels & specialties,
one in Mumbai (West Coast) of 7.5 Million Metric Tonnes Per Annum (MMTPA) capacity and the
other in Visakhapatnam, (East Coast) with a capacity of 8.3 MMTPA. HPCL also owns and operates
the largest Lube Refinery in the country producing Lube Base Oils of international standards, with a
capacity of 428 TMT. This Lube Refinery accounts for over 40% of the India's total Lube Base Oil
production. HPCL in collaboration with M/s Mittal Energy Investments Pte. Ltd. is operating a 9
MMTPA capacity Refinery at Bathinda with 49% equity and also holds an equity of about 16.95%
in the 15 MMTPA Mangalore Refinery and Petrochemicals Ltd. (MRPL).
HPCL has the second largest share of product pipelines in India with a pipeline network of more
than 3370 kms for transportation of petroleum products and a vast marketing network consisting of
21 Zonal offices in major cities and 128 Regional Offices facilitated by a Supply & Distribution
infrastructure comprising Terminals, Pipeline networks, Aviation Service Stations, LPG Bottling
Plants, Inland Relay Depots & Retail Outlets, Lube and LPG Distributorships.
Consistent excellent performance has been made possible by highly motivated workforce of over
10,500 employees working all over India at its various refining and marketing locations.
HPCL is committed to achieve the economic, ecological & social responsibility objectives of
sustainable development consistently through varied operations and activities. HPCL’s focus areas
are in the fields of Child Care, Education, Health Care, Skill Development & Community
Development, touching lives of weaker section of society.

Bharat Petroleum Corporation Limited (BPCL)
Bharat Petroleum Corporation Limited (BPCL) is one of the largest state-owned oil and gas
company in India, with Fortune Global 500 rank of 287 (2008). Its corporate office is located at
Ballard Estate, Mumbai. As the name suggests, its interests are in downstream petroleum sector. It is
involved in the refining and retailing of petroleum products.
Bharat Petroleum is considered to be a pioneer in Indian petroleum industry with various path-
breaking initiatives such as Pure for Sure campaign, Petro card, Fleet card etc.
BPCL's growth post-nationalisation (in 1976) has been phenomenal. One of the single digit Indian
representatives in the Fortune 500 & Forbes 2000 listings, BPCL is often referred to as an “MNC in
PSU garb”. It is considered a pioneer in marketing initiatives, and employs “Best in Class” practices.
Bharat Petroleum Corporation Limited (BPCL) is engaged in the petroleum industry in India.
During the fiscal year ended March 31, 2009 (fiscal 2009), the aggregate refinery throughput
at BPCL's Refineries at Mumbai and Kochi, along with that of BPCL's subsidiary company,
Numaligarh Refinery Limited (NRL), was 22.20 million metric tons (MMT). The Company is
engaged in downstream petroleum sector, which consists of refining and marketing activities.
BPCL holds 61.65% interest in NRL as on March 31, 2009. Bharat PetroResources Limited
(BPRL), a 100% subsidiary of the Corporation, holds 50% equity in VB (Brazil) Petroleo
Private Ltda., a joint venture company. BPRL has participating interests in nine exploration
blocks. BPRL also has participating interests in five blocks in the United Kingdom, Australia
and Oman.
Table 1-Financial Comparison for year 2016-2017
Financials/Company IOCL BPCLnk HPCL
Sales/Revenues(Rs 453,725 2,43,747(Gross 213,488

Crores) Revenue)
Net Profit(Rs Crores) 6,208 8,563 20,385(Profit for the

year)
Source- Company Annual Reports

Financials for year 2016-2017
20,385
HPCL
213,488
8,563
BPCL
243747
6,208
IOCL
453,725
0 50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000 450,000 500,000
Net profit Sales
Graph 1- Financial Comparison for year 2016-2017

Branded Fuels
Performance cars and motorcycles require a high octane fuel and for quite a long time that scarcity
of this fuel has forced users of such vehicles to use lower octane fuel. Hindustan Petroleum (HP)
launched 99 octane petrol in Mumbai in 2017 , at the company’s Auto Care Centre retail outlet at NS
Road. Called ‘Power 99’, the fuel has already been launched by the company in Bengaluru and Pune
wherein it is claimed to have got a good response.
The Power 99 petrol is claimed to be capable of offering a lower engine knock and damage due to
the fact that it can withstand a greater rise in temperature during the compression stroke of an
internal combustion engine. The fuel also allows for the longevity of the engine’s internal equipment
as it does not contain heavy metals and emissions are reduced as well thanks to lower NOX and CO
output.
Due to the higher octane number, the ability of Power 99 to withstand compression without
detonating is more. Power 99 can withstand a greater rise in temperature during the compression
stroke of an internal combustion engine without auto-ignition, which will then result in lower engine
knocking and damage. This makes it an ideal fuel choice for high-performance cars and two-
wheelers. It is also claimed to reduce equipment failure, does not contain any harmful heavy metals
and reduces emissions due to superior combustion of the fuel.
99 Octane fuel comes without heavy metals and thus, helps in reduction of NO and CO output from
a typical high performance engine. Before its availability, BPCL offered Speed 97 petrol with 97
Octane rating for supercars and superbikes. Regular fuel available at most filling stations carry 87
Octane while those termed Xtrapremium are 91 Octane..Premium fuel launched by Hindustan
Petroleum Corporation Limited.99 is the octane rating of the fuel. An empirical number measuring
anti-knocking capacity.It can also be called Anti Knocking Index.

AKI=RON+MON/2
In general terms higher the octane number the more compression fuel can withstand before
ignition.Suited for high compression engines as fuel can be compressed to a higher ratio without
detonating and Results in lower engine knocking and damage. HPCLs outlet in Murgeshpalya
Bangalore was the first to deliver this fuel.

Octane Number (RON, MON) & Knock Resistance

The octane number (ON) is a measure of the knock resistance of gasoline. It defines a numerical
value from 0 to 100, and describes the behavior of the fuel in the engine during combustion. In
determining the octane number, a distinction is primarily made between the research octane number
(RON) and the motor octane number (MON).
* Research octane number (RON)
The research octane number (RON) describes the behavior of the fuel in the engine at lower
temperatures and speeds, and is an attempt to simulate acceleration behavior.
* Motor octane number (MON)
The motor octane number (MON) describes the behavior of the fuel in the engine at high
temperatures and speeds – a full-throttle range, comparable to driving fast on a highway. This octane
number is not generally known to the public, as it is not specified at service stations.
* Knock resistance
Knock resistance is a fuel’s ability not to self-ignite and burn in an uncontrolled way while the fuel
is being compressed. This means that the air-fuel mixture in the engine is not ignited only by the
ignition spark, but also by compression. An octane number describes this phenomenon under defined
conditions.

Problem Identification
The feasibility analysis of power 99 in Dehradun is a challenge as of now because of various issues
persisting in the city. Power 99 is a branded fuel launched by HPCL in some parts of India lie Delhi
Chandigarh, Bangalore and Pune. It is an ideal choice for high performance cars by automakers like
Lamborghini, Mercedes, Porsche, Ferrari etc. in particular.
Thus as in these cities there is an apparent rise in number of such cars therefore demand for high
octane rated fuel is there. In Dehradun high end vehicles like mustang, Kawasaki, UM, Harley are
making their existence since the last 5 years. Thus we can foresee a growing graph for them.
As the price for power 99 is more as compared to normal fuel, thus there exists a barrier for its
growth. The cost might act as a restraint for its sale in the city as customers hesitate in buying it. The
power 99 launched in Mumbai was priced at Rs 103/litre whereas normal fuel cost was Rs 80/ litre
therefore the price difference of Rs 23 for a litre is a big issue in the city where a price surge of Rs
4/litre can create havoc among the citizens.
Customers using branded fuel are well aware of the benefits that came along the fuel and thus aren’t
reluctant in buying so. Lack of knowledge also acts as barrier apart from the cost incurred by the
customer. People try to buy pocket friendly fuel unaware that in future it might add up to the cost of
maintenances and thus will finally have impact on their pocket.

Research Methodology
For the research report, we conducted a mix of secondary research that included surveys, along with
deliberations with industry participants. The process of research begins from classifying the
problem, leading to data collection further leading to data analysis and finally arriving to findings
and action points. We follow the qualitative and quantitative research methodology to approach our
problem. The data for the research is collected through primary and secondary research.
primary sources include:
 archives and manuscript material

 photographs, audio recordings, video recordings, films
 journals, letters and diaries
 speeches
 scrapbooks
 published books, newspapers and magazine clippings published at the time
 government publications
 oral histories
 records of organizations
 autobiographies and memoirs
 printed ephemera
 artifacts, e.g. clothing, costumes, furniture
 research data, e.g. public opinion polls
Quantitative research (Secondary Research) involves the gathering of numerical data and includes
the following:
 Surveys to collect information about the frequency at which customer return.

 Information about sales figures
 Surveys to gather data about industry product sales figures.
 Existing financial scenario or trend
 Phone or online questionnaires.
Other Sources of information include:
 Internal data such as databases, sale reports, past primary researches;

 Government statistics and information from government agencies such as Ministry Of
Statistics (Data.gov.in)
 Different media such as articles from respected magazines and newspaper, reports from
university research centers or non-profit agency.

INTERVIEW OF FIELD OFFICER (DEHRADUN SALES AREA) Mr. AMIT SONAR
INTERVIEW OF UPES FACULTY , Dr. ANIRUDH SINGH

INTERVIEW OF OWNER (KTM AND BAJAJ SHOWROOM, DEHRADUN)
INTERVIEW OF UPES FACULTY , Dr. KARUNAKAR JHA

INTERVIEW OF OWNER (SINGH FILLING STATION, DEHRADUN)

Table 2-Sales of Branded Fuels in India
HPC BPC IOC

Volume (KL) Volume (KL) VOLUME (KL)
Cur (2017-18) Hist (2016-17) % Grth Cur (2017-18) Hist (2016-17) % Grth Cur (2017-18) Hist (2016-17) % Grth
549700 269909 103.66 567081 632787 -10.4 1082571 851643 27.1
Market Share Market Share VOLUME (KL)
Cur (2017-18) Hist (2016-17) Inc/Dec Cur (2017-18) Hist (2016-17) Inc/Dec Cur (2017-18) Hist (2016-17) % Grth
25.00 15.40 9.60 25.80 36.10 -10.30 49.20 48.50 0.70
Graph 2

Table 3-Sales of Branded Fuels in North Central Region
HPC BPC IOC

Volume (KL) Volume (KL) VOLUME (KL)
Cur (2017-18) Hist (2016-17) % Grth Cur (2017-18) Hist (2016-17) % Grth Cur (2017-18) Hist (2016-17) % Grth
55574 21014 164.5 71455 83766 -14.7 222864 171867 29.7
Market Share Market Share VOLUME (KL)
Cur (2017-18) Hist (2016-17) Inc/Dec Cur (2017-18) Hist (2016-17) Inc/Dec Cur (2017-18) Hist (2016-17) % Grth
19.50 11.10 8.40 16.70 26.90 -10.20 63.80 62.00 1.80
Graph 3

Table4-Sales of Branded Fuel in Uttarakhand
COMPANY Branded Volume (KL) Branded Market Share Normal + Branded Volume (KL) Normal + Branded Market Share
HPCL 11355 31.20 98149 24.80
BPCL 6023 16.50 91630 24.10
IOCL 19050 52.30 190543 50.10
Graph 4

Vehicles that require Power 99

Vehicles with high compression ratio requires high octane fuel so that the fuel can withstand
complete compression and don’t burn before ignition causing engine knocking which is not good for
such high end vehicles

Table 5-LIST OF HIGH END MOTORCYCLES ( ABOVE 600 CC AND ABOVE 5 Lacs.)
BRAND MODELS
1. SUZUKI HAYABUSA INTRUD GSX S750 GSX V GSX GSX GSX

ER 1800 R1000 STORM 1000R S1000 S1000F
1000
2. HONDA CBR CBR GOLDWIN CB1000R CRF1000

1000RR 650F G L
3. KAWASAKI ZX 10R Z900 NINJA Z1000 VERSYS ZX14R H2 Z800

1000 1000
4. YAMAHA YZF R1 MT 09 R1 M R6
5. APRILIA RSV4 SRV 850 SHIVER TUONO CAPONO MANA

900 RD 1200
6. HARLEY IRON 883 FOURTY FATBOY STREET FATBOB CVO LOW ROAD
DAVIDSON EIGHT ROD RIDER KING
7. DUCATI MULTI X MONSTER HYPER PANIGAL 1299 SUPER SCRAMBL

STRADA DIAVEL 1200 MOTARD E PANIGALE SPORT ER
950
8. BENELLI TNT 600I TNT
600GT
9. INDIAN SCOUT CHIEF ROAD SCOUT SPRING CHIEFTAIN SCOUT

MASTER SIXTY FIELD BOBBER
10. BMW S1000RR R1200 K1600 GTL R NINE T S1000XR 1200 GS R1200 RT K1600 B
GS
11. TRIUMPH STREET BONNE TIGER 800 STREET THUNDE DAYTONA SPEED THRUXTO
TRIPLE VILLE TWIN RBIRD LT 675 R MASTER NR
T120

Presence of vehicles in Dehradun that require Power99
Bikes With Engine Specification Above 150 CC
1. UM Renegade Sports S
2. UM Renegade Commando
3. UM Mojave
4. UM Renegade Classic
5. Suzuki gixxer SF SP Bike
6. Suzuki gixxer SF Bike
7. Suzuki gixxer Bike
8. Quad sport Z400 Quad Runner
9. Suzuki GSX –R 1000 bike
10. Bajaj Pulsar 220
11. Avenger Street 220
12. Yamaha Fazer F1
13. CBR 250 R
Above are some of the bikes that cost near about 1 lakh or more and most o them are
sports bike which require high performance fuels. These bikes are widelyused for a
variety of races as well as rallies which take place in dehradun some of which are
mentioned in subsequent part of the report. Since these bikes are a bit affordable than
high end bikes they are present in more number.
Although the power 99 fuel is designed to run high end vehicles with heavy engine
specification it can also work in bikes above 150 cc because it lowers down the
deposits in the fuel tank.It is advised to use such fuel for better performance and
prolonged engine life. Showroom dealers often come across complaints from their
customers regarding moisture content in the fuel tank, low average from fuel,
minimised engine life etc. Therefore in order to substantiate such issues and problems
HPCL has come up with power 99 fuel with Octane rating of 99 thus it can mitigate
such issues as the fuel has exclusive additives which thereby increases the efficiency
and power of the vehicle.


LUXURY VEHICLE SUPPLIER IN DEHRADUN
1. TVS Doon Motor

2. Royal Enfield- Ahuja enterprises and Allied Jakhan
3. Hero MotoCorp, Hero Bhatia Agency
4. UM Dehradun Trust Motors,G MS Road
5. KTM, Rajpur Road
6. Mayur Bajaj,Rajpur Road
7. Foothills Harley Davidson
8. Doon Suzuki
9. Firefox Bike Station
10.Asco Kawasaki Dehradun
11.Pride Suzuki
12.Cypress
13.Amit Auto
14.Performance Yamaha
15.Ess Ell Motors
16.Eutopia Hyundai
17.Volkswagen Dehradun
18.Berkeley Motors Limited Dealer Mercedes-Benz
19.Audi Dehradun, Mohbewale Industrial Area
20.Tata Motor, NH 72
21.Grand Toyota, Mohbewala Chowk
22.DPM Hyundai, Haridwar Bypass
23.PM Hyundai, Mohbewala

Survey for Power 99

Do you prefer Normal fuel or Branded fuel in your vehicle.

60 57 %
50
43 %
40
30
20
10
0
Branded Normal
What is the fuel RON ( octane number) requirement for your

vehicle?
80
70 %
70
60
50
40
30 %
30
20
10
0
91 91 above

Do you know the difference between Octane Number 91 and

99 of fuel ?
52%
51%
51%
51%
50%
50%
49%
49%
49%
48%
yes no
Would you like to use Power 99 in your vehicle if launched in

Dehradun ?
60%
50% 48%
46%
40%
30%
20%
10%
6%
0%
Yes No Maybe

HPCL’s top three sales Retail Outlet in Dehradun

According to the sales and space available to launch power99 we selected three outlets which are
highest selling outlets.
1. Singh Service Station

2. Premier Motors
3. Devbhoomi Filling Station
These outlets were selected on sales of both normal fuel and branded fuel. Then we checked other
points such as location, Vicinity, hours of operation, cleanliness, dealer’s presence in retail office
etc.

Singh Service Station
 Located at Chakrata Road

 Clean Driveways
 24x7 working
 Ample space for new storage tank as the facility of retail outlet is very spacious.
 The location of outlet is close to areas like Rajendra Nagar, Rajpur Road, Chakrata Road and
clock tower area. It is the best outlet to launch Power 99 as many high end vehicles owner
reside near this area, retail outlet is spacious and kept clean, owners are mostly present in the
retail office which is a very good point and retail outlet is top selling and working 24x7 that
is one of the main points to notice when we launch power 99.

Table 6
Month sales (in kl)

Jul-17 36 Mar-18
Aug-17 Jan-18
33 5%
Dec-17 10% Feb-18
Sep-17 27 9% 7%
Oct-17 Apr-18
33
8%
Nov-17 45 Nov-17
Dec-17 33 12% Other
29% May-18
Jan-18 39
Oct-17 8%
Feb-18 27 9%
Mar-18 18 Sep-17 Jun-18
Jul-17
Apr-18 30 7% Aug-17 8%
8% 9%
May-18 30
Pie Chart 1
Sales of power petrol in singh service station ( in kl)
50
45 45
40 39
35 36
33 33 33
30 30 30 30
27 27
25
20 SALES OF POWER PETROL IN
18 SINGH SERVICE STATION
15
10
5
0

Premier Motors
 Located at G.M.S. Road, Majra, Dehradun

 Working Hours are 6 am to 10:30 pm
 Clean driveways
 One island is for autogas but isn’t operating since one year.
 Owner is not always available at the Retail Outlet, Location of outlet is in the semi urban
area and not many high end vehicle owners live there. The road goes to transport nagar
where there are fleet operators of heavy transport. The sale of power petrol is negligible in
this retail outlet as compared to other outlets.

Table7
Month Sales( in kl)

Jul-17 3.5
Mar-18
Aug-17 3 Feb-18
11%
Sep-17 1 17%
Oct-17 0 Jan-18
Nov-17 4 20%
Apr-18
Dec-17 5 Other 7%
Jan-18 11 32%
Feb-18 9 Dec-17
Mar-18 5.7 May-18
9% 9%
Apr-18 4
May-18 5 Nov-17
Jul-17
Oct-17 7% Sep-17 Aug-17 Jun-18
Jun-18 2.5 0% 2% 7% 6% 5%
Pie chart 2
Sales of power petrol in premier motors ( in kl)

12
11
10
9
8
6 5.7
5 5 SALES OF POWER PETROL IN
4 4 4 PREMIER MOTORS
3.5
3
2.5
2
1
0 0

DevBhoomi Filling Station
 Located at Haridwar bypass road, Dehradun

 Working hours are 6 am to 10:30 pm
 Clean Driveways
 Location is out of urban areas
 Sale is good but hardly any high end vehicle comes here.
 Power sales is high as they fill two wheelers with power without asking them
 Owner is sometimes available at retail outlet.
 Outlet is near to ISBT, Dehradun

Table 8
Month Sales (in kl)

Jul-17 30 Mar-18
Jan-18 Feb-18
Aug-17 34 8% 8% 10%
Sep-17 29 Dec-17
Oct-17 33 8%
Apr-18
Nov-17 34 Nov-17
9%
Dec-17 32 8%
Other
Jan-18 32.5 38%
Oct-17 May-18
Feb-18 30.5
8% 9%
Mar-18 40.5
Sep-17
Apr-18 36.5 7%
May-18 34.5 Aug-17 Jul-17 Jun-18
Jun-18 40.5 8% 7% 10%
Pie chart 3
Sales of power petrol in devbhoomi filling st. ( In kl)
45
40 40.5 40.5
35 36.5
34 33 34 34.5
32 32.5
30 30 29 30.5
25
20 SALES OF POWER PETROL IN
15 DEVBHOOMI FILLING STATION
10
5
0

Graph 11- Comparison between the Three Retail Outlets based on Power Sales
SALES OF POWER PETROL IN PREMIER MOTORS
SALES OF POWER PETROL IN SINGH SERVICE STATION
SALES OF POWER PETROL IN DEVBHOOMI FILLING STATION
50
45 45
40 40.5 40.5
39
36 36.5
35 34.5
34
33 33 34 33
32 32.5
30 30 30.5 30 30 30
29
27 27
25
20
18
15
10 11
9
5 5 5.7 5
3.5 3 4 4
2.5
0 0 1 0

RACING COMPETITION IN DEHRADUN
In Dehradun we found lot of bike racing tournaments conducting throughout the major
portion of the season. Some of the motor bikes tournament are -
1. Dehradun Motor Heads DMHs
2. Down and dirty in Doon at maiden dirt-bike race

3. Droolworthy Motorbiking Trails of Uttarakhand for the Everyday Off-Roader
Dehradun — Nainbagh — Banchaura — Chianyalisaur
4. Raid the Himalaya

Almost all the bikes used in these competitions are super bikes which require higher
power to exceed. Hence, it can aid to the following points –
1. These bikes require fuel which will aid to the poWer 99 fuel consumption.
2. Most of these racers either pass by or take a halt at Dehradun, hence they either
refill or carry an extra load of gasoline.
3. Raises demand of super bikes in the market which ultimately leads to increase
in sells of poWer 99 petrol.
4. These completions will attract outsiders to come in dehradun with their bikes
which will aid to the selling of Power petrol.

Ethanol Blending
 Ethanol is a form of renewable energy that can be produced from agricultural feedstock.
It can be made from very common crops such as hemp, sugarcane, potato, cassava and
corn.
 Ethanol fuel is ethyl alcohol, the same type of alcohol found in alcoholic beverages,
used as fuel. It is most often used as a motor fuel, mainly as a biofuel additive for
gasoline. The first production car running entirely on ethanol was the Fiat 147,
introduced in 1978 in Brazil by Fiat.
 Ethanol fuel has a "gasoline gallon equivalency" (GGE) value of 1.5, i.e. to replace the
energy of 1 volume of gasoline, 1.5 times the volume of ethanol is needed.
 Ethanol-blended fuel is widely used in Brazil, the United States, and Europe
Ethanol is a renewable, domestically produced transportation fuel. Whether used in low-level blends,
such as E10 (10% ethanol, 90% gasoline), or in E85 (flex fuel)—a gasoline-ethanol blend containing
51% to 83% ethanol, depending on geography and season—ethanol helps reduce emissions. Like
any alternative fuel, there are some considerations to account for when contemplating the use of
ethanol

Energy Security
In 2017, the United States imported about 19% of the petroleum it consumed, and that number
would have been significantly higher if ethanol had not been domestically produced and consumed.
Because transportation accounts for nearly three-fourths of total U.S. petroleum consumption, using
ethanol fuel blends has a significant impact. This also supports the U.S. economy, helps diversify the
U.S. transportation fleet, and reduces the impact of international supply disruptions. All of this adds
to our nation’s energy security.
Fuel Economy and Performance
A gallon of ethanol contains less energy than a gallon of gasoline, resulting in lower fuel economy
when operating your vehicle. The impact to fuel economy varies depending on the energy difference
in the blend used. For example, E85, which contains 83% ethanol content, has about 27% less
energy per gallon than gasoline (the impact to fuel economy lessens as ethanol content decreases).
Engines in gasoline vehicles, including flexible-fuel vehicless (FFVs), are optimized for gasoline. If
they were optimized to run on higher ethanol blends, fuel economy would likely increase as a result
of increased engine efficiency.
Ethanol also has a higher octane number than gasoline, which provides increased power and
performance. For example, Indianapolis 500 drivers often fuel their race cars with E98 because of its
high octane. There are currently projects underway, including the Co-Optimization of Fuels and
Engines initiative, to understand the potential for improving engine efficiency through the use of
ethanol blends and other high-octane biofuels.
Job Impacts
Ethanol production creates jobs in rural areas where employment opportunities are needed.
According to the Renewable Fuels Association, ethanol production in 2017 accounted for more than
71,900 direct jobs across the country, $45 billion to the gross domestic product, and $24 billion in
household income.
Lower Emissions
The carbon dioxide released by a vehicle when ethanol is burned is offset by the carbon dioxide
captured when the feedstock crops are grown to produce ethanol. This differs from gasoline and
diesel, which are refined from petroleum extracted from the earth. No emissions are offset when
these petroleum products are burned. On a life cycle analysis basis, GHG emissions are reduced on
average by 34% with corn-based ethanol produced from dry mills, and up to 108% if cellulosic
feedstock are used, compared with gasoline and diesel production and use.
Equipment and Availability

Low-level blends of E10 or less require no special fueling equipment, and they can be used in any
conventional gasoline vehicle.
It is also possible to accommodate blends above E10 in existing fueling equipment, however, some
equipment needs to be upgraded to comply with federal code.
FFVs (which can operate on E85, gasoline, or any blend of the two) are available nationwide as
standard equipment with no incremental cost, making them an affordable alternative fuel vehicle
option. Fueling stations offering E85 (flex fuel) are located in 42 states.
UTTARAKHAND SCENARIO (GARHWAL REGION)
PANIPAT REFINERY (IOCL)
TAX 1 (HPCL)
ROORKEE TERMINAL (IOCL) ROORKEE DEPOT (HPCL)
ETHANOL BLENDING ETHANOL BLENDING
TAX 1 TAX 2
RETAIL OUTLET RETAIL OUTLET
Currently Following
Should be followed as per government orders

Advantages of Ethanol blended fuels
1. Ethanol is good for the environment, Lower CO, CO2, hydrocarbons and oxides of nitrogen
emissions
2. Also has fewer volatile components than gasoline, which means fewer emissions from
evaporation. Ethanol is widely available and easy to use Ethanol is good for the economy 1. Ethanol
production supports farmers and creates domestic job, which also reduce dependency over foreign
oil.
3. According to industry sources, the government can save anywhere up to $3 billion a year, by
blending E10. The biggest advantage of e-diesel is its partially renewable character Ethanol is an
anti-freeze (ethanol-blend fuels will not freeze when air temperature below freezing
Disadvantages of Ethanol Blended fuels
The energy content of ethanol is about 33% less than "pure" gasoline which lead lower fuel mileage.
Ethanol can absorb water which may lead to metal corrosion, phase separation.
It highly flammable and explosive compared to gasoline, need more attention to handle in daily life.
Aldehyde a function of ethanol volume, is a threat to nose, eyes, and throat and possibly causes
cancer.

Conclusion
The study on branded fuel "power 99" in Dehradun city, its feasibility and usage pattern
forecast was done in order to implement the high octane number fuel. Specifications and advantages
were told to probable users who owned high end vehicles. A questionnaire survey was done in order
to find out the usage pattern, customer knowledge and consumer behavior in Dehradun city. We
surveyed around 200 users who were having vehicles like BMW, Audi ,Toyota ,Honda City, Verna,
Pulsar, Dominar, KTM 390, etc., we analyzed with this data that 43 % customers preferred branded
fuel and around 48 % wished to use power 99 if launched in Dehradun city.
Out of many factors analyzed during the research study we interviewed various people from
UPES, HPCL officials, showroom managers, etc. The questionnaire tool used to study the users
made relevant idea about the usage of branded fuels and its awareness among customers.
In our survey we found that there are good number of vehicles present in Dehradun which
require 95+ RON but in all the retail outlets there are 91 RON fuel so the vehicle owners have to add
additives every time they refuel, which is not as effective as a high octane fuel.
To launch Power 99 we picked 3 retail outlets which are highest selling outlets, out of those
three, we found that Singh Service Station will be the optimum outlet to launch Power 99 fuel
because it is a 24 x 7 operating RO, has high demand and sale for power, owner visits RO daily
which keeps the management effective and efficient. The location of RO is near to areas like
Rajendra Nagar, Rajpur Road, Clocktower, etc. where most of high end customers reside.

Bibliography
1. www.hindustanpetroleum.com
2. www.bcmtouring.com
3. www.team-bhp.com
4. https://en.wikipedia.org
5. www.arthapedia.in
6. https://currentaffairs.gktoday.in/tags/ethanol-blending
7. https://energy.economictimes.indiatimes.com
8. https://timesofindia.indiatimes.com
9. www.zigwheels.com
10. https://autoportal.com
11. www.google.com

Feasibility of Power 99 Petrol in Dehradun City: Guidance

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Feasibility of Power 99 petrol in Dehradun City

Internship project submitted in partial fulfillment of requirements for

Under the guidance of

Internal Guide: External Guide:

Mr. Anirudh Singh Mr. G.H.V. Rao

Asst. Professor Chief Regional Manager

UPES Dehradun HPCL Dehradun

Simran Dua R020217068

Abhishek Nautiyal R020217001

Gyanesh Bhardwaj R020217092

Rupal Johari R020217093

MBA- Oil & Gas Management

School of Business, UPES

MBA- Oil & Gas Management

School of Business, UPES

Page no (2) of the Report- Feasibility of Power 99 petrol in Dehradun City

Page no (3) of the Report- Feasibility of Power 99 petrol in Dehradun City

Page no (4) of the Report- Feasibility of Power 99 petrol in Dehradun City

List of Tables, Graphs and Charts

Page no (5) of the Report- Feasibility of Power 99 petrol in Dehradun City

Page no (6) of the Report- Feasibility of Power 99 petrol in Dehradun City

Page no (7) of the Report- Feasibility of Power 99 petrol in Dehradun City

Company Profiling and Competitors comparison

Indian Oil Corporation Limited (IOCL)

Page no (8) of the Report- Feasibility of Power 99 petrol in Dehradun City

Page no (9) of the Report- Feasibility of Power 99 petrol in Dehradun City

Hindustan Petroleum Corporation Limited (HPCL)

Page no (10) of the Report- Feasibility of Power 99 petrol in Dehradun City

Bharat Petroleum Corporation Limited (BPCL)

Table 1-Financial Comparison for year 2016-2017

Financials/Company IOCL BPCLnk HPCL

Sales/Revenues(Rs 453,725 2,43,747(Gross 213,488

Net Profit(Rs Crores) 6,208 8,563 20,385(Profit for the

Source- Company Annual Reports

Page no (11) of the Report- Feasibility of Power 99 petrol in Dehradun City

Financials for year 2016-2017

Net profit Sales

Graph 1- Financial Comparison for year 2016-2017

Page no (12) of the Report- Feasibility of Power 99 petrol in Dehradun City

Page no (13) of the Report- Feasibility of Power 99 petrol in Dehradun City

Page no (14) of the Report- Feasibility of Power 99 petrol in Dehradun City

Octane Number (RON, MON) & Knock Resistance

* Research octane number (RON)

* Motor octane number (MON)

Page no (15) of the Report- Feasibility of Power 99 petrol in Dehradun City

Page no (16) of the Report- Feasibility of Power 99 petrol in Dehradun City

primary sources include:

 archives and manuscript material

 Surveys to collect information about the frequency at which customer return.

Other Sources of information include:

 Internal data such as databases, sale reports, past primary researches;

Page no (17) of the Report- Feasibility of Power 99 petrol in Dehradun City

INTERVIEW OF FIELD OFFICER (DEHRADUN SALES AREA) Mr. AMIT SONAR

INTERVIEW OF UPES FACULTY , Dr. ANIRUDH SINGH

Page no (18) of the Report- Feasibility of Power 99 petrol in Dehradun City

INTERVIEW OF OWNER (KTM AND BAJAJ SHOWROOM, DEHRADUN)

INTERVIEW OF UPES FACULTY , Dr. KARUNAKAR JHA

Page no (19) of the Report- Feasibility of Power 99 petrol in Dehradun City

INTERVIEW OF OWNER (SINGH FILLING STATION, DEHRADUN)

Page no (20) of the Report- Feasibility of Power 99 petrol in Dehradun City

Table 2-Sales of Branded Fuels in India

HPC BPC IOC

Page no (21) of the Report- Feasibility of Power 99 petrol in Dehradun City