MANAGERIAL ECONOMICS

ASSIGNMENT
CASE 01- IDENTIFYING AND ANALYZING MONOPOLY FIRMS IN INDIA
CASE 02- ANALYZING PERFORMANCE OF UBER AND AMAZON IN INDIA

SUBMITTED TO-VASUNDHARA SEN

SUBMITTED BY:
NAME -HITESH PAREEK
GROUP- 2
SECTION -B
ROLL NO- 18416
Case 01 –Identifying and Analyzing Monopoly Firms in India
 Indian Railways
 Coal India Limited
 Hindustan Aeronautics Limited
 Nuclear Power Corporation of India Limited

1) INDIAN RAILWAYS:
Indian Railways is owned and operated by Ministry of Railways, Government of India. It
is founded in 8 May 1845, having revenue of 1.683 trillion INR and number of employees
1.331 million, is the biggest monopoly in India and on the rank fourth in the world. It has
a total track of 119630 kms

Services offered by Indian Railways-

 Passenger Railways
 Freight Services
 Parcel carrier
 Catering and Tourism Services and other related services

Indian Railway is a Monopoly because it is one of its kind in the country having large
number of customers and it is the only seller, it is a price maker.

Advantages of Monopoly in Railways:

 Huge funds can be involved by the Government

 As it is monopolized by the Government of India ticket fares of the journeys and
freight charges are subsidized

Disadvantages of Monopoly in Railways:

 Because of no competition there is less infrastructure and services

 As it is undertaken by Government there is no entry for private sector
 Because of high level of job security among employees they do not work
effectively and efficiently

2) COAL INDIA LIMITED:

Coal India Limited is a coal mining company which has its headquaters in Kolkata, West
Bengal, India. It is owned by the Government of India. It has a revenue of 806.9 billion
INR, and number of employees 333,097. It is the largest coal producing company in the
world. It has a contribution of around 82% of the country’s total coal.

Subsidiaries of Coal India Limited-

 Bharat Coking Coal Limited

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  Central Coalfields Limited
 Central Mine, Planning and Design Institute Limited
 Eastern Coalfields Limited
 Mahanadi Coalfields Limited
 Northern Coalfields Limited
 South Eastern Coalfields Limited
 Western Coalfields Limited

Monopoly in Coal mining in the country should be put to an end because-

 So that FDI’s can take place

 It will increase the revenues in the coal industry
 It will increase the living standards of mine workers as they get very minimum
wages.

3) HINDUSTAN AERONAUTICS LIMITED

Hindustan Aeronautics Limited is an Indian state owned and defence company based in
Bangalore, Karnataka, India. It has a revenue of 177.5 Billion INR and number of
employees 32,108.

Subsidiaries of Hindustan Aeronautics Limited:

 BAEHAL Software limited

 International Aerospace Manufacturing Private Limited
 Helicopter Engines MRO Private Limited
 Infotech HAL ltd

HAL has over 20 units and 10 R&D centres across India and it designs and
manufactures Aircrafts for Indian Defence.

The opening up of Indian Defence to 100% FDI may also help HAL for foreign
partnerships to tap new opportunities.

4) NUCLEAR POWER CORPORATION OF INDIA LIMITED

Nuclear Power Corporation of India Limited is a Government of India Owned enterprise.
It has its headquarters in Mumbai, India. It is responsible for generation of Nuclear
Power for electricity. NPCIL is administered by the Department of Atomic Energy,
Government of India.

Products of NPCIL:

 Nuclear Power

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  Electricity Generation and Distribution

There are 22 Nuclear reactors operating under 8 nuclear plants. The usual rule of thumb
for nuclear power is that about two third of the generation cost is accounted by fixed
cost. The cost of fuel is lower in Nuclears whereas operating and maintenance cost is
higher in Nuclear Plant.

NPCIL should remain monopoly because

 The reason is safety

 Rate of return is very slow
 Requirement of high investments and protective infrastructure.

Case 02- Analyzing performance of Uber and Amazon in

India
CASE 2.1 PERFORMANCE OF UBER IN INDIA
Uber is the main unit of Indian taxi aggregator. Uber India systems which is the provider
of marketing and support services to Uber, posted a 442% in its revenue for the year
ended March 2016 at Rs 374 Crore against 69 Crore in the previous year.

Uber operates in around 30 cities in India and planning to add 6-7 more.

Company has not filled latest profit numbers in its annual returns. It was profitable in two
years after its inception

In India Uber competes with Ola, which has raised more than $1 billion in Investments.

Currently Uber is operating in 30+ cities while its competitor Ola is in 100 cities

CASE 2.2 PERFORMANCE OF AMAZON IN INDIA

According to Jeff Bezos founder of Amazon, Amazon is in India prominent market place
and they are planning to invest billions in future to capture and win the leadership race of
India’s 16 billion $ E commerce industry.

Amazon India net loss for its India Business is Rs 1724 crore in the year end in March
2015. Taking the combined loss of big 3 online firm including Flipkart and Snapdeal to
Rs 5025 crore as hunted for buyers by offering deep discounts.

The performance in India was the hallmark of the Amazon CEO Post result comments
that happens to be his first on the country’s internet marketplace after local rival Flipkart

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recently raised $2 billion from softbank .Flipkart is currently ahead of Amazon India on
the value of goods sold through its platform.

Amazon has cost cutting initiative ‘Get-fit’ includes cost cutting in Packaging, more
Automation in warehouse and more effectively product delivery

Another initiative is ‘Get-Big’ which is to make company the largest online retailer in
India. In past two quarters, the Indian Business has specifically called out as one of the
biggest loss driver in Amazon Inc.

From above it can be stated that

Untill unless there is no monopoly in E- Commerce , Neither Amazon nor flipkart is going
to stop big discount offers.

 Amazon is more focused toward its Prime customers

 Two big initiatives get fit and get big will help amazon to recover its loss despite
being selling large number of products.

REFERENCES:
 CIL
 NPCIL
 BUSINESS STANDARD
 ECONOMIC TIMES
 AMAZON INC.
 INDIAN RAILWAYS
 TIMES OF INDIA
 HAL
 UBER INDIA

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