Since 2018, Oil and Natural Gas Corporation has owned majority of its stake.[3] It is ranked 367th on the Fortune Global 500 list of the world's biggest corporations as of 2016.[7] On 24 October 2019, it became a Maharatna (PSU).[8]
HPCL was incorporated on 5 July 1952 as Standard Vacuum Refining Company of India Limited. In 1974, it changed its name after the takeover and merger of erstwhile Esso Standard and Lube India Limited by the Esso (Acquisition of Undertakings in India) Act 1974. Caltex Oil Refining (India) Ltd. (CORIL) was taken over by the Government of India in 1976 and merged with HPCL in 1978 by the CORIL-HPCL Amalgamation Order 1978. Kosan Gas Company was merged with HPCL in 1979 by the Kosangas Company Acquisition Act 1979.
In 2003, following a petition by the Centre for Public Interest Litigation (CPIL), the Supreme Court of India restrained the central government from privatizing Hindustan Petroleum and Bharat Petroleum without the approval of Parliament. As counsel for the CPIL, Rajinder Sachar and Prashant Bhushan said that the only way to disinvest in the companies would be to repeal or amend the Acts by which they were nationalized in the 1970s. As a result, the government would need a majority in both houses to push through any privatization.[9]
On 19 July 2017, the Government of India announced the acquisition of HPCL by the Oil and Natural Gas Corporation (ONGC).[10]
On 1 November 2017, the Union Cabinet approved ONGC for acquiring a majority 51.11% stake in HPCL. On 30 January 2018, ONGC acquired 51.11% stake, thus gaining majority ownership.[3]
HPCL wholly owns two major refineries in India:[11] one in Mumbai (west coast) with a capacity of 9.5 million tonss per year, and one in Visakhapatnam (east coast) with a capacity of 8.3 million tons per year.[12]
In addition, HPCL holds an equity stake of 16.95% in Mangalore Refinery and Petrochemicals Limited, a company that runs a refinery in Mangalore with a capacity over 9 million tons per year. HMEL, a joint venture between HPCL and Mittal Energy Investments Pte. Ltd, operates another refinery of 11.3 million tons per year in Bathinda, Punjab.[13] HPCL has signed a memorandum of understanding with the Government of Rajasthan for constructing a refinery near Barmer; it would be operated under a joint venture company called HPCL Rajasthan Refinery Limited (Popularly known as HRRL).[14]
HPCL also owns and operates the largest lubricant refinery in India, with a capacity of 335,000 metric tons, producing lube base oils.[citation needed] This refinery accounts for over 40% of India's total lube base oil production. HPCL produces over 300 grades of lubes, specialties, and greases.
The marketing network of HPCL consists of 21 zonal offices in major cities and 128 regional offices[15] facilitated by a supply and distribution infrastructure comprising terminals, aviation service facilities, liquefied petroleum gas bottling plants and distributors, lube filling plants and distributors, inland relay depots, and retail outlets (petrol pumps).
HPCL produces a wide variety of petroleum fuels and specialties:
Petrol (known as "motor spirit" in the oil industry) – HPCL markets its petrol at its retail pumps all over India. Its principal consumers are personal vehicle owners.
Diesel (known as "high-speed diesel" in the oil industry) – HPCL markets its diesel at its retail pumps, terminals, and depots. Its consumers include personal vehicle owners, transport agencies, and industries.
Lubricants – HPCL is the market leader in lubricants and associated products. It commands over 30% of the market share in this sector. The popular brands of HP lubes are Laal Ghoda, HP Milcy,[19] Thanda Raja, Koolgard, and Racer4.[20]
Liquefied petroleum gas – HPCL's brand of liquified petroleum gas is popular across India for domestic and industrial uses.
Aviation fuel[21] – With major air service facilities in all major airports of India, HPCL is a key player in this sector, supplying turbine fuel to major airlines. It also supplies fuel to the US.[citation needed]
HPCL is focused on the appraisal and development of hydrocarbon accumulations in onshore and offshore projects. Operating projects include the Hirapur Marginal oil fields of the Cambay basin (near Gandhinagar, Gujarat) under a service contract with ONGC, and the pre-NELP production sharing contract for the Sanganpur field (Mehsana) with M/s Hydrocarbon Development Company (P) Ltd.
