turnaround of railway business strategy 1232686454800627 2
Post on 04-Apr-2018
223 Views
Preview:
TRANSCRIPT
-
7/31/2019 Turnaround of Railway Business Strategy 1232686454800627 2
1/27
-
7/31/2019 Turnaround of Railway Business Strategy 1232686454800627 2
2/27
Worlds third largest railway network Prime movers to the nation.
Approximately 65,000 km of rail tracks and over 7,151railway stations.
IR owns a fleet of 2,22,379 wagons, 42,441 coaches and
7,910 locomotives. It runs 16,0251 trains, including 9,550 passenger trains,
carrying about 1.6 million tonnes of freight and about 15million passengers daily.
Prime infrastructural sector.
Perform the dual role
1. Commercial Organization
2. Vehicle for fulfillment of social obligations
Part and parcel of the total receipts and expenditure of
the Government of India.
-
7/31/2019 Turnaround of Railway Business Strategy 1232686454800627 2
3/27
The site which serves online ticketing for IndianRailways is the largest e-commerce
website(www.irctc.com)
-
7/31/2019 Turnaround of Railway Business Strategy 1232686454800627 2
4/27
Member
Staff
Members
CivilEngineering
Member
Signaling& Telecom
Railway Board
Financial
Commissioner
Member
Traffic
Ministry of Railways
Research,Design,
and Stds. Org.
Production
Units
General
Manager
Member
Stores
Minister of Railways
The Govt. of India
-
7/31/2019 Turnaround of Railway Business Strategy 1232686454800627 2
5/27
Strengths the Biggest Company in the
world in terms of employeestrength.
Palace on Wheels is a majorpart of income.
connects different cities andcountries.
luxurious and affordable tocommon man.
Technological advancement
-
7/31/2019 Turnaround of Railway Business Strategy 1232686454800627 2
6/27
Weaknesses
Corruption within the department.
Lack of accident proof magnetic wheels in all trains.
Lack of safety
Poor infrastructure
Delayed trains
Non pro-active employees
-
7/31/2019 Turnaround of Railway Business Strategy 1232686454800627 2
7/27
Opportunities METRO in a commercial city like Mumbai
Development in small cities
Profit through privatization
-
7/31/2019 Turnaround of Railway Business Strategy 1232686454800627 2
8/27
Threats Low cost airlines
Improvement of other infrastructure like roadways
Could be taken over by airlines
-
7/31/2019 Turnaround of Railway Business Strategy 1232686454800627 2
9/27
The Indian Railways is hurtling towards financial andorganizational bankruptcy.
-Rakesh Mohan Committee.
Sectors due to which Railways incurred LossesPassenger Business.
Reduction in the share of Transport Market.
Freight Segment.
Scrap Disposal.
Unremunerative Projects.Increase in wages and salaries.
Social Service Obligations.
-
7/31/2019 Turnaround of Railway Business Strategy 1232686454800627 2
10/27
INDIAN RAILWAYS
MARCHING TOWARDS
HUGE PROFIT
-
7/31/2019 Turnaround of Railway Business Strategy 1232686454800627 2
11/27
Railways reap the benefits of volume growth andbetter management
-
7/31/2019 Turnaround of Railway Business Strategy 1232686454800627 2
12/27
play on volumes
reduce the unit cost
pass on the benefits to the consumer.
improvisation or reinventing instead of restructuring
-
7/31/2019 Turnaround of Railway Business Strategy 1232686454800627 2
13/27
FREIGHT SECTOR
Indian Railway carries a huge variety of goods ranging
from mineral ores, agricultural produce, petroleum, milkand vehicles.
Indian Railways makes 70%of its profits from the freightsector
-
7/31/2019 Turnaround of Railway Business Strategy 1232686454800627 2
14/27
DECISION MADE IN BUDGET
No change in rates
Enhancing the quality of freight trains
Double stack container freight trains
Increase in wagon production & locomotive production Meeting global demand
-
7/31/2019 Turnaround of Railway Business Strategy 1232686454800627 2
15/27
SCHEMES INTRODUCED
Engine-on-Load
Terminal Incentive Scheme
Electronic Payment Gateway
Wagon Investment Scheme
Non-peak season incremental freight discount scheme Loyalty Discount Scheme
-
7/31/2019 Turnaround of Railway Business Strategy 1232686454800627 2
16/27
Commodities have been moved to higher brackets
iron ore, fertilisers and petroleum products being some
examples.
A congestion charge has been put on specific
commodities
In addition, the Railways have raised the maximum
permissible carrying capacity of its wagons by two to
eight tonnes.
-
7/31/2019 Turnaround of Railway Business Strategy 1232686454800627 2
17/27
PASSENGER SECTOR
Indian Railways operates approx. 8,702passenger trains and transports around 5
billion annually across twenty-seven states
and three union territories
-
7/31/2019 Turnaround of Railway Business Strategy 1232686454800627 2
18/27
Decisions Taken in Budget
Safety Initiatives: IR created a Special Railway Safety Fund of Rs. 170
billion to improve safety environment, through replacement of over agedrailway assets, that is, tracks, bridges, rolling stock, signaling gears etc.
The number of accidents have been more than halved from 473 (2001)
to 200 (2007).
Use of high technology for passenger safety (train safety devices like
Train Protection and Warning System and Anti-Collision Devices).
Security: Railway Protection Force was strengthened to escort passengertrains in security sensitive areas.
Cleaner Trains Book stalls
Reducing journey times
Increasing bogies
Special Measures for Women commuters
-
7/31/2019 Turnaround of Railway Business Strategy 1232686454800627 2
19/27
Catering
-
7/31/2019 Turnaround of Railway Business Strategy 1232686454800627 2
20/27
A view of the Garib Rath, train for the poor,that provides comfortable, air-conditioned
travel at affordable cost to India's poor.
-
7/31/2019 Turnaround of Railway Business Strategy 1232686454800627 2
21/27
Tatkal (instant)-reserved tickets In the last three years, the number of tatkal seats more
than doubled.
In 2005-06, the daily average number of berths in tatkalquota was 43,000. The next year, it increased to 57,000
and in 2007-08 raised further to 98,000. Tatkal revenue for the Railways almost doubled from Rs
200 crore in 2006-07 to Rs 396 crore in 2007-08.
No slack season (February-March and August) for trainsthat see high purchase of such tickets 80 per cent and
above of the quota .The tatkal quota in such trains hasbeen kept higher than others.
-
7/31/2019 Turnaround of Railway Business Strategy 1232686454800627 2
22/27
In the last four years, the Railways have upgraded 210
mail and express trains to the super-fast category, taking
the total number of such trains to 350.
These trains run at an average speed of 55 km per hour
and, after the conversion, their journey time has been cut
by three to six hours.
However, this reclassification has also resulted in more
money (over Rs 114 crore in 2007-08) for the Railways
as each passenger needs to fork out Rs 15 for super-fastcharges. Today, over a fifth of all passenger trains
operated by the Railways are super-fast trains.
-
7/31/2019 Turnaround of Railway Business Strategy 1232686454800627 2
23/27
Changes in organizational culture from politicized decision making
to commercial, business oriented decision making.
Facilities for licensed porters
Crew friendly drivers cabins and brake vans were designed.
Establishment of International Railway Strategic ManagementInstitute in 2005
Participation of Railway Employees in Management (PREM)
Corporate Welfare Plan, Staff Welfare, sports club
Evolved a system of ensuring managerial accountability,Performance based rewards
-
7/31/2019 Turnaround of Railway Business Strategy 1232686454800627 2
24/27
Internal revenue generation increased from Rs 6,902 crin 2003-04 to Rs 13,612 cr in 2005-2006.
The operating ratio improved from 92% in 2003-2004 to
83.7% in 2005-2006.
The railways transported freight weighing 667 tonnes in2005-06, a 20% increase over the last year.
IR generated a Rs 13,612 cr with 1.422 million
employees on its rolls, ignoring the recommendations of
the Rakesh Mohan committee which emphasized on
having a thinner organization.
More effective use of manpower led to improvement in
staff productivity. Revenue per staff witnessed a rise by
68 percent (2001-2006) as against 49 percent (1996-
2001).
-
7/31/2019 Turnaround of Railway Business Strategy 1232686454800627 2
25/27
He disallowed plastic cups used for serving tea at railway
stations and announced that they will be replaced bykulhads(earthen cups). generate rural employment.
reduce garbage as the kulhads are bio- degradable.
He made personal inspections in the railways. He undertook asurprise check at Rail Bhavan in New Delhi. He deducted thesalaries of about 500 latecomer employees and sent them back.
Lalu carried out a surprise check on a goods train coming fromMumbai at Danapur station. He found that weights of
consignments were under-assessed, leading to loss of revenuefor Railways. He claimed that railway officials, transporters andconsignees were part of a racket. A few top BJP leaders,associated with a company called Samrudha Overseas Pvt Ltd,were allegedly involved in the racket.
-
7/31/2019 Turnaround of Railway Business Strategy 1232686454800627 2
26/27
He said that he would revoke the contract of A H Wheeler & Co,which runs newspaper stands on most Indian railway stations,because they were enjoying monopoly ever since English(British) left India and would invite open tender.
He maintained passenger profile so that compartments could betaken off or added to trains according to seasonal demand.
As part of his drive to modernize the railways Lalu Prasad Yadavhas decided to send nearly 100 top officials abroad for training inlatest techniques and sharpen their managerial skills in
Management Schools of USA and France.
Lalu Prasad Yadav is now credited with engineering the financialturnaround of Indian Railways, which was on the verge ofbankruptcy. Under him, the Railways booked an unprecedentedsurplus of 110 billion rupees (2.47 billion dollars).
-
7/31/2019 Turnaround of Railway Business Strategy 1232686454800627 2
27/27
top related