HPCL will leverage IBM’s technology expertise to deploy a tracking solution based on RFID technology at HPCL’s Nashik plant. Signed in March 2008, this $2.2 million deal is one of the largest implementations in India for RFID-based tracking solutions and involves infrastructure services.

Under this agreement, IBM will design, deploy and integrate the RFID solution for tracking LPG cylinders from plant to the end-consumer. The 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.

Nipun Mehrotra, vice president and general manager of global technology services at IBM India and South Asia, said: We are very excited about the RFID implementation at HPCL and especially the fact that this solution covers the entire supply chain of HPCL’s significant LPG business. The energy sector is seeing a growth in India and we believe that a solution like this will help HPCL to improve its operational efficiencies while strengthening their competitive edge in the market.