HPCL eyes partners for fuel pump automation

Hindustan Petroleum Corporation is looking for global and local partners for automation of its fuel retail outlets.

A senior official of the state run oil refining and marketing company said talks were on with a number of companies including Japanese technology firm, NEC Corporation.

As part of its upgradation efforts, HPCL has already started an automation pilot project in Mumbai and Navi Mumbai. As of now 40 outlets have been automated and about 425 more pumps are expected to be automated across the country by the end of FY06.

The automation, the company expects, would provide efficient realtime information on the reconciliation of stocks. "It will enable us to tighten our distribution systems, and make sure that the supply chain is as efficient as possible," said the official.  Most of the automation is expected to take place on the highways, where 70 per cent of the 425 slotted pumps are located.

The company has been facing competition from the private players in the highway segment. However, the losses are seen to be lower in comparison with the other public sector companies, at 0.4 per cent compared with an average of two per cent losses.

The total technological upgradation will cost the company Rs 1,000 crore, and each outlet will cost approximately Rs 20 lakh (Rs 2 million) to set up the facilities.

However, this is seen as a long-term investment as the costs on conducting checks, as well as ensuring efficient supply of stocks are eventually expected to reduce.

The total number of commissioned retail outlets in 2004-2005 was 1,163, the highest among the oil companies. HPCL has a total of 6,667 retail outlets as of March 2005.