Bangalore: IBM has announced that it is implementing a Radio Frequency Identification (RFID) based solution for Hindustan Petroleum (HPCL), a Fortune 500 company and a petroleum organization in India. IBM technology will deploy the tracking solution at HPCL's Nashik plant. Signed in March 2008, this $2.2 million deal is one of the single-largest implementations in India for RFID-based tracking solution.

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.

Commenting on the deal, G A Shirwaikar, Executive Director-LPG, HPCL said, "RFID-based cylinder tracking project is the first of its kind in India. We also expect to rollout this solution to other plants in India besides extending it to dealers for integrated supply chain."

"The energy sector is seeing a tremendous growth in India and we believe that a unique solution like this will help firms like HPCL improve their operational efficiencies while strengthen their competitive edge in the market," said Nipun Mehrotra, Vice-President and General Manager, Global Technology Services, IBM India/South Asia.