Submitted By:
Avinash Roshan(2010MB70)
Jitendra Singh(2010MB33)
Kunal Bhasney(2010MB29)
Sachin Kumar(2010MB44)
Introduction to IR
Indian Railways
 The world’s second largest railway, carries 18 million passengers each

day and it ha...
SOURCES OF REVENUE
OTHERS 10%

PASSENGER
28%
FREIGHT (GOODS) 62%
Operating Ratio
100

98.3

96

92.3

92.1

91
83.2

90

78.7

80

75.9

70
60
50
40
30
20
10
0

2002

2003

2004

2005

20...
Commercialization of
Indian Railways
Commercialization is important aspect of

Indian railways.

Aims at providing not o...
Why Commercialization???
How it revolved?
Conceptual Framework
Retrenchment
Strategy

Effect

1 ) Reviewing value adding business
(Catering, parcel service )

Cost saving > Rs 1,000 cro...
Repositioning
Strategy

Effect

1 ) Developing new products (Double
stack containers)

Saving: 7% on capital cost , 25%
op...
Re- Organization
Strategy

Effect

1) Changes in planning system

Improved efficiency

2) Extent of decentralization ( lik...
Areas of Commercialization
Transportation.
Introduction of I.T.
Outsourcing.
Transportation
Daily expenditure is about Rs 100 cr (42% staff, 18%

fuels).
Daily earnings Rs120 cr .
Daily loss on un...
Transportation
 Goods Trains
Railway earns mainly from goods traffic.
More than a million ton of goods transported dail...
Transportation
Passenger Trains
Carries 1.4 crore passengers daily.
Greater attention to passenger services and safety....
Transportation
VARIETY OF SERVICES
 AC FIRST CLASS.
 AC SLEEPER.
 FIRST CLASS.
 AC 3 TIER.
 AC CHAIR CAR.
 SLEEPER ...
Usage of IT in Railways
A large complex Infrastructure System with Large

Geographical Dispersion such as the Indian Rail...
Usage of IT in Railways
Transforming Transport through Technology.
Jewels in the Crown.
•
•
•
•
•
•

Freight Operations ...
OUTSORCING
IT giants like TCS and WIPRO eyeing Railways'

outsourcing deal.
L&T Infotech wins system integration project...
Parcel Management System
Following Functions are covered
•
•
•
•
•

Parcel Booking, Cancellation and Loading
Monitoring a...
Vinyl wrapped train by Airtel
80 crores contract with airtel and kurkure for ad
Catering
PALACE ON WHEELS
WHEELS OF CHANGES
MoU with CHINESE counterpart
Rail fleet with eco-friendly technology
Train traffic control will be co...
What`s next now???
References
www.indianraiways.gov.in
www.indianrail.gov.in
Milind.Sathye@canberra.edu.au
www.rbi.org.in
www.reservebank.com...
References
www.indianraiways.gov.in
www.indianrail.gov.in
Milind.Sathye@canberra.edu.au
www.rbi.org.in
www.reservebank.com...
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Indian railways commercialisation

  1. 1. Submitted By: Avinash Roshan(2010MB70) Jitendra Singh(2010MB33) Kunal Bhasney(2010MB29) Sachin Kumar(2010MB44)
  2. 2. Introduction to IR Indian Railways  The world’s second largest railway, carries 18 million passengers each day and it has
  3. 3. SOURCES OF REVENUE OTHERS 10% PASSENGER 28% FREIGHT (GOODS) 62%
  4. 4. Operating Ratio 100 98.3 96 92.3 92.1 91 83.2 90 78.7 80 75.9 70 60 50 40 30 20 10 0 2002 2003 2004 2005 2006 2007 2008 2009 back
  5. 5. Commercialization of Indian Railways Commercialization is important aspect of Indian railways. Aims at providing not only service but also to generate revenue.
  6. 6. Why Commercialization???
  7. 7. How it revolved?
  8. 8. Conceptual Framework
  9. 9. Retrenchment Strategy Effect 1 ) Reviewing value adding business (Catering, parcel service ) Cost saving > Rs 1,000 crores /annum 2) Reduction of wagon turnaround time 14 % time saved 3) Outsourcing Improved efficiency
  10. 10. Repositioning Strategy Effect 1 ) Developing new products (Double stack containers) Saving: 7% on capital cost , 25% operational expenses 2) Product differentiation E-ticketing, new passenger coaches 3) Focus on revenue growth(like Freight revenue jumped from 233 enhancement in loading capacity, cash m(2001) to 417 m(2007). incentive to free up wagons)
  11. 11. Re- Organization Strategy Effect 1) Changes in planning system Improved efficiency 2) Extent of decentralization ( like Zones raised from (2003) to 16 (2005)) Improved vendor satisfaction
  12. 12. Areas of Commercialization Transportation. Introduction of I.T. Outsourcing.
  13. 13. Transportation Daily expenditure is about Rs 100 cr (42% staff, 18% fuels). Daily earnings Rs120 cr . Daily loss on uneconomic branch line Rs 8 cr. Greater competition from Roadways, with major investments in Highway network upgradation. Upgradation of the Railway Production units for improved efficiency and productivity.
  14. 14. Transportation  Goods Trains Railway earns mainly from goods traffic. More than a million ton of goods transported daily. Carries 16 lakh tonnes of goods every day. Railways has 7500 engines,38000 coaches & about 2.5 lakh of wagons. Goods train maxm. 100 kmph.
  15. 15. Transportation Passenger Trains Carries 1.4 crore passengers daily. Greater attention to passenger services and safety. Heavily subsidised passenger fares, distorted passenger pricing. Indian railways have a share of nearly 22% in the passenger transport market.
  16. 16. Transportation VARIETY OF SERVICES  AC FIRST CLASS.  AC SLEEPER.  FIRST CLASS.  AC 3 TIER.  AC CHAIR CAR.  SLEEPER CLASS.  ORDINARY CHAIR CAR.
  17. 17. Usage of IT in Railways A large complex Infrastructure System with Large Geographical Dispersion such as the Indian Railways can benefit greatly from the intelligent use of IT E-GOVERNANCE OBJECTIVE • Freight revenue enhancement • Passenger revenue enhancement • Improvements in Customer and public service • Investment optimization
  18. 18. Usage of IT in Railways Transforming Transport through Technology. Jewels in the Crown. • • • • • • Freight Operations Information system ( FOIS). Passenger Reservations System (PRS). Unreserved Ticketing System (UTS). Instant voice response system (IVRS). Rail Net. E- Ticketing.
  19. 19. OUTSORCING IT giants like TCS and WIPRO eyeing Railways' outsourcing deal. L&T Infotech wins system integration projects from Indian Railways. Indian Railways formed a PPP cell at the Board level to guide in the initiatives of Indian Railways . Organisations like RITES, RVNL, CONCOR, IRCTC, etc. have been formed as an FBO. Parcel Service, Catering,Vinyl Wrapping of trains,Palace on Wheels are part of outsourcing of IR.
  20. 20. Parcel Management System Following Functions are covered • • • • • Parcel Booking, Cancellation and Loading Monitoring and tracking of Parcels Printing of Parcel labels Networking of all parcel offices RFID tags for tracing parcels
  21. 21. Vinyl wrapped train by Airtel 80 crores contract with airtel and kurkure for ad
  22. 22. Catering
  23. 23. PALACE ON WHEELS
  24. 24. WHEELS OF CHANGES MoU with CHINESE counterpart Rail fleet with eco-friendly technology Train traffic control will be computerised soon WI-FI will be introduced soon in business class Railway will utilize solar energy
  25. 25. What`s next now???
  26. 26. References www.indianraiways.gov.in www.indianrail.gov.in Milind.Sathye@canberra.edu.au www.rbi.org.in www.reservebank.com www.irfca.org en.wikipedia.org Rakesh Mohan Committee. 2001. Highlights of the Executive Summary Raghuram, G. 2007. ‘Turnaround’ of Indian Railways: A critical appraisal of strategies and processes’, Indian Institute of Management Working Paper no. 2007– 02–03, Indian Institute of Management, Ahmedabad.  A Case Study Desh Gupta and Milind Sathye* Faculty of Business & Government University of Canberra, Canberra, Australia.         
  27. 27. References www.indianraiways.gov.in www.indianrail.gov.in Milind.Sathye@canberra.edu.au www.rbi.org.in www.reservebank.com www.irfca.org en.wikipedia.org Rakesh Mohan Committee. 2001. Highlights of the Executive Summary Raghuram, G. 2007. ‘Turnaround’ of Indian Railways: A critical appraisal of strategies and processes’, Indian Institute of Management Working Paper no. 2007– 02–03, Indian Institute of Management, Ahmedabad.  A Case Study Desh Gupta and Milind Sathye* Faculty of Business & Government University of Canberra, Canberra, Australia.         
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