The Hindu Business Line : Accenture helps BPCL build TRM capability

ACCENTURE, a global management consulting, technology and outsourcing company, has helped Bharat Petroleum Corporation Ltd (BPCL) build a trading and risk management (TRM) capability, said Mr Sandeep Biswas, Partner, Accenture India, here today in a press briefing.

Accenture has helped BPCL realise the risks it is exposed to at a time when the crude prices are looking upwards and recommended a trading and risk management framework to it, he said.

The refining companies may see a further fall in their revenues if the gap between product and crude prices continues to reduce. A retailing company may not be able to pass on the price increase to the consumer. BPCL faces these problems as it is involved both in refining and retailing, Mr Biswas said.

The TRM has helped BPCL improve its decision-making in managing and measuring risk and reporting tools for all oil trades executed by its staff. It has also improved its efficiency through better matching of demand and supply.

Accenture helped BPCL define an overall governance structure and design a trading floor. This included responsibilities like project management, configuration and implementation of the IT platform and training of BPCL staff.

"Change in mindset is a massive change. Acquiring the mindset of a trader with a conscious attempt to manage prices, margins and cash flows (for BPCL) was never easy," he said.

Accenture wants BPCL and other Indian oil companies to become a price influencer and not a price taker. "India is huge enough a market to make this possible," Mr Biswas said.

This can have a say in changing the demand-supply dynamics in Asia, where at present China determines oil prices, he said.

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