Petroleum and Supply Chain

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Castrol India Ltd., Mumbai

Assignment: Supply Chain

Executive Summary

Castrol India LTD.

Castrol India Limited is a Public Limited Company with 70.92% of the equity held by Castrol Limited UK (part of BP Group).From a minor oil company, with a share of about 6% in 1991, Castrol India has grown to become the second largest lubricant company in India with a market share of around 28%. Castrol India manufactures and markets a range of automotive and industrial lubricants. It markets its automotive lubricants under two brands - Castrol and BP. The company has leadership positions in most of the segments in which it operates including passenger car engine oils, premium 2-stroke and 4-stroke oils and multigrade diesel engine oils. Castrol India has the largest manufacturing and marketing network amongst the lubricant companies in India. The company has 5 manufacturing Plants across the country, including a state-of-the-art plant in Silvassa. The company reaches its consumers through a distribution network of 270 distributors, servicing over 70,000.retail outlets. From a minor oil company, with a share of about 6% in 1991, Castrol India has now grown upto a market share of around 28%.

Product and services
* Passenger car oil

* Gear Oil

* Diesel Engine oil

* Two wheeler engine oil

* Grease

* Coolant

* Castrol Supply Chain Network Overview

* Manufacturing facilities : In India there are 12 production facilities with major ones at Patalganga, Silvassa, Tondiarpet, Paharpur. Each production plant has its own capacity in terms of different packing lines and not SKU.

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* Plant and capacity data

Daily available filling capacities across current locations(in KL) - Single | Shift w/o overtime*Data taken by project Report
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Distribution:
Inbound Logistics: The base oil for Castrol is centrally purchased by British Petroleum. Some of the Indian refineries also provide base oil to Castrol India Limited. The oil is brought to the plants by tankers from offshore tanks. Castrol India Limited has four plants-Patalganga, Silvassa, Paharpur and Tondiarpet and in total 12 filling stations.

Outbound Logistics: Castrol has three tier distributor structure-distributor hubs (CDC/RDC), carrying & Forwarding Agents (CFA) and Distributors. The transportation from manufacturing plant to distributor hub is called Primary Transportation (P0). Transportation from distribution centre to carrying & forwarding agency (CFA) (P1), from warehouse to warehouse (P2) and warehouse to customer and distributors is called Secondary transportation. The entire country is divided into four zones North, East, West and South. There are 30 CFA,2 DC and 4 Marine warehouses in India. The diagram below shows the supply chain distribution structure at Castrol India. There are five layers - Supplier, Plants, Distribution Hubs, Warehouses and Distributors. Castrol has recently implemented DRM in which demand is generated at the CFA level once the inventory at the distributor level falls below an established norm.

* The diagram below shows the supply chain distribution structure at Castrol India. There are five layers - Supplier, Plants, Distribution Hubs, Warehouses and Distributors.

* Castrol has recently implemented DReaM in which demand is generated at the CFA level once the inventory at the distributor level falls below an established norm.

Global Reach: The global reach of British Petroleum is shown in the below mentioned figure. Castrol is a subsidiary of that.

Planning Process:
Forecasting:

Generating production forecasts is a key business process in the oil and gas industry. Production forecasts are used to calculate cash flow using economic models and to assess reserves in the corporate portfolio....
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