Bharat Petroleum Corporation Limited (BPCL) is an Indian public-sector oil company that features among the Fortune Global 500. The company has historically been in the business of refining and marketing petroleum products. For about 25 years, BPCL operated in a protected environment where it was assured 12 per cent post-tax returns by the Indian government. In 2002, the government stopped guaranteeing returns to its oil companies, and BPCL found that its sales were increasing but its profitability was declining. In response, BPCL ventured upstream into the exploration and production of hydrocarbons. The case is set in 2010, seven years after BPCL adopted a corporate strategy of vertical integration. BPCL’s chairman and managing director assesses reasons for the company’s spectacular success and considers what BPCL should do next.

Bharat Petroleum Corporation Limited (BPCL) is an Indian public-sector oil company that features among the Fortune Global 500. The company has historically been in the business of refining and marketing petroleum products. For about 25 years, BPCL operated in a protected environment where it was assured 12 per cent post-tax returns by the Indian government. In 2002, the government stopped guaranteeing returns to its oil companies, and BPCL found that its sales were increasing but its profitability was declining. In response, BPCL ventured upstream into the exploration and production of hydrocarbons. The case is set in 2010, seven years after BPCL adopted a corporate strategy of vertical integration. BPCL's chairman and managing director assesses reasons for the company's spectacular success and considers what BPCL should do next.