A Project Report on ‘SWOT ANALYSIS of Indian Railways’ Submitted By Manoj B.Com Final Roll No. 1106 Submitted To Prof.

Harmesh Lal Head.of Comm.Dept.

A Such a helpul Enviorenment to creat this Presentation . Student of sis of Indian Railways’ To kful to my Subject Teacher mrit Varsha who provide Us .I Manoj Kumar . Harmesh Lal. 2 B. I am Heartly Than Prof. Harmesh Lal And Our Respected Principal Mirs.Com Final Submitting this Presentation on ‘Swot Analy Our Indain Economy Prof.

< o n c e p t > C < a g e n o . Introduction 2. SWOT Analysis 4. Weakness 6. Threats 4 5 7 8 10 12 15 3 . Strenth 5. P > 1. Important Facts 3. Op portunities 7.

is the stateowned railway company of India.4 million employees.000 locomotives. transporting over 18 million passengers and more than 2 million tonnes of fre ight daily. 4       . The railways traverse the length and breadth of the country. By 1947. wi th more than 1. which owns and operates most of the country s ra il transport. metre and narrow gauges. the year of India s independence.000 coaches and 8. becoming one of the largest networks in the world.An Introduction Indian Railways . Indian Railways has one of the largest and busiest rail networks in the worl d. In 1951 the systems were nationalised as one unit. covering 6. Railways were first introduced to India in 1853. there were forty-tw o rail systems. It als o owns locomotive and coach production facilities.327 kilometres (39. 50.350 mi).909 stations over a total route length of more than 63. abbreviated as IR.000 (freigh t) wagons. It is overseen by the Ministry of Railwaysof the Government of Ind ia. IR owns over 200. It is one of the world s largest commercial or utility employers. As to rolling stock. IR operates both long distance and suburba n rail systems on a multigauge network of broad.

000.525 trains’ daily covering7.503 kms.000 kms. 5 . The Indian railway largest in the Asia and second largest in the world afterthe USSR. 2004 the electrified route was 17. SOME FACTS: The total route length of Indian railway is approximately 63.SOME MISCELLANEOUS FACTS ABOUT INDIAN RAILWAYS.031 railwa y stations. The total number of railway station in India is more then 7. The first electric train was opened in February 1925 on Mumbai suburbanrailway o n Mumbai Victoria Terminus (VT) – Kurla branch line. As on 31st march. The Indian railway operates approximately 7.

Railway set up a fund in 1974 to give financial assistance to victims of railway accidents. The length is 10. AC-3T. 65 kms. 6 .AC-1st. Now there are seven classes.The largest platform in India is at Kharagpur. The longest railway tunnel is Konkan railway tunnel i.052 feet. AC-2T. The longest rail bridge is across Godavari River.e. The largest marshalling yard is at Mughalsarai. Sleeper. first class and second cl ass.733 feet. AC chair car. It is s ituated in west Bengal. The length is 2. The third class in the Indian railway was abolished in 1974.

but it is a w ide term used as S.On Indian Railways As far as we will go to SWOT Analysis on Indian Railways we must clear the meani ng of SWOT. S.W. 7 .W. All the four as pects of SWOT in the manner of Indian Railways are explained and described furth er. in which ‘S’ stands for ‘STRENTH’ of the concern object. Firm. Others Institutions etc. It has great oppo rtunities in its circle as well as threats from other private sector efforts. ‘W’ stands for ‘WEAKNESS’ . In other words we can say that Indian Railways is a widely used term in Indian Eco nomy.O. ‘O’ stands for ‘OPPORTUNITY’ and ‘T’ stands for ‘THREATS’ for that concern As we apply this ‘SWOT’ concept on Indian Railways we see that there is a solid stre ngth of Indian Railways in itself as well as weaknesses of it.T which contains all the necessary data or information of a Business Organization. Though at the first look the word ‘SWOT’ seems too simple.O. It alone covers more than 25% of Indian Economy Structure.T contains four d ifferent aspects in it.

ENVIRONMENTAL FACTORS. AVERAGE LENGTH OF HAUL BEIN G LARGE BREAK EVEN DISTANCE FEASIBLE FOR RAILWAY SYSTEM IS AVAILABLE. IN PASSENGER SEGMENT. FOR LON G DISTANCE AND BULK SECTOR RAILWAYS IS THE MOST ECONOMICAL COMPARATIVELY SAFER M ODE OF TRANSPORT. ENERGY COST.A LARGE NETWORK OF 7000 STATIONS COUNTRY. PETROLEUM PRODUCTS PROCURED THROUGH IMPORTS ARE VERY EXPENSIVE AND THUS ELECTRICITY BASED RAILWAY SYSTEM WILL ALWAYS HAVE AN EDGE ON PARAMERTE RS OF POLLUTION. FOR A COUNTRY OF 1000 M ILLION PEOPLE WITH LOW PURCHASING POWER RAILWAY SYSTEM IS MORE SUITABLE. EXISTS IN THE A SUBSTANTIAL MARKET SHARE EXISTS. 8 .

Greenfield passenger terminals on similar lines are also being contemplated and could offer more opportunities for development through the PPP route.1 b illion) and is expected to be higher in 20072008. with the IR planning substanti al investments in fixed infrastructure and rolling stock to achieve efficiency a nd productivity gains in freight operations that could in turn generate signific ant multiple benefits for the economy as a whole. 9 . 23. The Railw ays is also actively considering a proposal to re-design the airconditioned thre e-tier coaches for general trains and increase its passenger carrying capacity.The budget outlay for financial year 2006-2007 was Rs.500 Crore (~ USD 5. including refurbishment of the design and look of stations. Indian Railways is looking at significantly improving passenger amenities. includ ing separating passenger handling areas from commercial areas. Changes in the design could increase the capacity of an AC 3-tier coach in gener al trains to 81 from the existing 64. like in airports. The 2007-08 Railway Budget is likely to focus on improving passenger services extensively. Work to convert 16 major railway stations in to world-class ones is expected to be set into motion in the this fiscal.

MARKETING IS PERIPHERAL ACTIVITY AND COMMERCIAL DEPARTMENT IS BASICAL LY ENGAGED IN SELLING BUSINESS ONLY CUSTOMER FOCUS IS MISSING AND CUSTOMER SATIS FACTION IS NOT AN ORGANISATIONAL MISSION. INDIAN RAILWAYS IS LOOSING ITS MARKET SHARE IN PASSENGER AND FREIGHT BUSINESS. 10 . THERE IS OVER EMPHASIS ON MAXIMISING PK MS.HOW TO B ALANCE DEMAND AGAINST AVAILABLE CAPACITY.THE ORGANISATION IS PRODUCTION ORIENTED. THERE IS CAPACITY CONSTRAINT . NTKMS.

like rising of tariffs and expendi ture control are inadequate for generating the levels of investment required. 11 . So they require much maintains and they do not give proper return. They are as follows: Outdated tech nology of locomotive : The rail engines used to run the trains are very old and outdated technology. we can not ignore that there are many serious drawback of Indian railways. Problem of fina ncial crunch : The railway is facing the problem of financial crunch. So there must be ex tension in the rail networks as per the demand and requirements. There is immediate need to change the engines by new and updated ones. The conven tional methods of increasing the net revenue. Further India’s pop ulation which is increasing leads pressure on such facility.In spite of all various advantage and specialties. Small and inadequate rail networks : As India is world’s second largest rail networks country but if we look by considering requ irements of economy and size of country then it is not enough. as they do not performefficiently.

12 .MEASURES TO IMPROVE FREIGHT BUSINESS: Reduction in unit cost of freight traffic due to increase in loading capacity of wagons and some other measures. Additiona l loading of 4 to 8 tonnes per Wagons per adds 100 Million Tonnes to loading cap acity with resultant Revenue generation of Rs 5000 Cr. Validity of brake power c ertificate for CC rakes increased from 6000 to 7500 km.

Wagon manufacture to increase by about 25% Production of electric locomotive to increase by 17% and diesel locomotive by 5%. Over 200 ma il/express trains to be made super fast. Cut down losses in the coa ching services by about Rs 1000 Cr in the coming year and by 50% in the next thr ee years by increasing the number of coaches and occupancy of trains . 13 . reducing travel time and reducing losses in the catering and parcel segments. Journey time of a majority of the Shata bdis. Rajdhanis and of certain mail/express trains likely to reduce. REDUCTION OF LOSSES IN PASSENGER BUSINESS: Increase Volumes reduced unit costs s trategy to be adopted in the passenger business also.

Platform length at 200 stations to be increased at a cost of Rs 60 Cr Up gradati on of lower class passengers to higher class without any additional payment intr oduced on all Rajdhanis and mail/express train. OPPORTUNITIES FOR INDIAN RAILWAY IN INCREASING THEIR PROFIT FROM MARKET.The number of coaches in about 190 popular passenger carrying trains to be incre ased up to 23-24 coaches enabling railway to earn Rs 200Cr additionally every ye ar. Year Rail 1950-51 1996-97 89% 40% Freight Road 11% 60% Rail 80% 20% Passenger Ro ad 20% 80% Shift of Traffic from Rail to Road 100% 80% 60% 40% 20% 0% 1950-51 1996-97 Freight Rail Freight Road Passenger Rail Passenger Road 14 .

NTKMS.THE ORGANISATION IS PRODUCTION ORIENTED. THERE IS OVER EMPHASIS ON MAXIMISING PK MS. THERE IS CAPACITY CONSTRAINT . INDIAN RAILWAYS IS LOOSING ITS MARKET SHARE IN PA SSENGER AND FREIGHT BUSINESS. 15 .HOW TO BALANCE DEMA ND AGAINST AVAILABLE CAPACITY. MARKETING IS PERIPHERAL ACTIVITY AND COMMERCIAL DEPARTMENT IS BASICALLY ENGAGED IN SELLING BUSINESS ONLY CUSTOMER FOCUS IS MISSING AND CUSTOMER SATISFACTION IS NOT AN ORGANISATIONAL MISSION.