IBM to deploy RFID tracking for Hindustan Petroleum's gas cylinders

05 September 2008

In a $2.2-million deal, IBM will deploy a radio frequency identification (RFID)-based tracking system to enable Hindustan Petroleum keep track of around 500,000 cylinders at its at Nashik plant.

This $2.2-million contract is one of the single largest implementations in India for RFID-based tracking solutions.  IBM will design, deploy and integrate the RFID solution for tracking LPG cylinders from the plant to the end-consumer.

The RFID solution will streamline the process of identification of LPG cylinders during bottling, distribution and supply chain, and is expected to cover 500,000 cylinders in the initial phase. HPCL intends to evaluate the technology and deploy the same in a phased manner to cover the entire supply chain from bottling plant, logistics, and distributors to the end-consumers.

"This RFID-based cylinder tracking project is the first of its kind in India.," says G A Shirwaikar, executive director, LPG, HPCL. "Considering the magnitude of our operations, which continues to grow significantly, it has become imperative for us to bring greater efficiencies in our supply chain. We aim to achieve this with our new RFID-based tracking solution.

On the choice of IBM,Shirwaikar expalins, "Their global expertise in deploying such solutions would help HPCL strengthen its supply chain of LPG cylinders end-to-end, and finally result in significant operational benefits for the organisation. We also expect to roll out this solution to other plants in India (an additional 42) besides extending it to dealers for an integrated supply chain."

Nipun Mehrotra, vice president and general manager, Global Technology Services, IBM India / South Asia, said, "IBM is committed to build capabilities to address some very unique business challenges faced by Indian enterprises."