Presented by

Bharat Oil Company Amoghavaesha L

Nikitha Dasari
Saurabh Shah
Milind Gurav
Radhika Bhadala
Soumika Sree
Situational Analysis
Mexican Crude
Bharat Oil Company Gasoline, Kerosene
petroleum

Sulphuric Acid

Manufacturer

• Used Sulphuric Acid return to manufacturer

• Problem become more significant- storage constraints
• Difficult to dispose sulphuric acid
• Other refinery installed reclaim unit
Problem Statement
• Acid manufacturer unable to accept return shipment
• Freight charges and re-cleaning of tank cars
• Without reclaiming of sulphuric acid – no value

Objective
• Reduce the cost
• Hassel free input supply
• Smooth logistics
Constraint
• No obnoxious gases – reclaiming plant
• No nitrogen in reconverted product
• Logistics

Criteria
• Financial feasibility
• Proper supply of sulphuric acid
• No disposal problem
• No environmental effect
Options available
1. Return Acid to manufacturer
• 100% procurement from acid
manufacturer and return
• More dependency on acid
manufacturer
• More logistic issue and cost
• Not cost effective
Financial Analysis: Appendix
2. Install reclaiming unit with new
technology
• 25% procurement from acid
manufacturer & return 25% sludge
• 75% requirement fulfilled by
reclaiming unit
• Less logistic issues and cost
• More financial benefits
Recommendations
• To set the new reclaiming plant
• Operate it 50% production capacity
• Reduce the procurement of sulphuric acid

Action Plan

Stabilize the
Reduce the
process and Negotiation with
Setup Unit procurement
trained the existing supplier
gradually
worker
Contingency Plan
• Demand may fluctuate in future
• Price of sulphuric acid may increase in negotiation
• Acid manufacturer can decline to supply 25% sulphuric acid
Thank You
Financial analysis
Annual Consumption 1800 MT
Total Cost per annum INR 30600
Investment INR 30000
25% procurement INR 7650
25% sludge Freight INR 750
50% production capacity INR 14400
Yearly Consumption INR 22800
Saving INR 7800
Payback time Approx. 50 months