Shaping the destiny of a public sector enterprise

Abstract

At the time of Independence, Burmah Shell had a dominant presence in India, with a market share of 67%. However, nationalisation of oil majors was inevitable and Bharat Petroleum Corporation Limited (BPCL) was formed in 1976 consequent to the nationalisation of the erstwhile Burmah Shell Oil Storage and Distribution Company and Burmah Shell Refineries. Constraints imposed by the government were aplenty and it was little surprise that the company’s share collapsed to a meagre 15% of the market. After a period of three years of further decline and inaction, BPCL embarked on an effort to resurrect itself. This involved extensive representations to the government to increase its share of allocation of new business opportunities. In today’s competitive world, it is acknowledged that it is the human factor that gives a company its edge. Acting with far reaching vision and foresight, BPCL has consistently nurtured its employees and picked the best entrepreneurs as its dealers. It has thought of customers in an era of public sector dominance where customers were taken for granted. It has several 'firsts' and 'biggests' in India to its credit – first to introduce premium fuel and first bottled gas, largest loyalty programme and largest convenience store network to name a few. J Ramachandran and Vani Venkatesh spoke to Ashok Sinha, CMD, BPCL to understand the journey from the days of steady decline to the current position of leadership in thought, action and innovation. Embedded in the company’s DNA are three remarkable traits – ability to get the government’s buy-in on step changes, ability to think ahead of the curve and appetite for innovation and change. Ashok Sinha reflects the spirit of the company – the courage, conviction and pride that got BPCL to where they are today, and the belief that they still have a long way to go