RAILWAY

INFRASTRUCTURE
Prepared By: Karn Bhargava (80303190014)
GOAL
TO IDENTIFY INVESTMENT OPPORTUNITIES IN THE LISTED SPACE
WITHIN THE RAILWAYS INFRASTRUCUTRE SECTOR GIVEN THE PUSH
FROM THE GOVT. TOWARDS EXPANSION AND IMPROVEMENT OF THE
RAILWAY INFRASTRUCTURE AND NETWORK IN INDIA.
INTRODUCTION
• RANKED 4TH IN THE WORLD IN TERMS OF LENGTH
• RANKED 8TH LARGEST EMPLOYER IN THE WORLD
• 65% TRAINS ARE PASSENGER TRAINS
• 16 PSUs THAT SERVICE THE INDIAN RAILWAYS
• RITES
• RVNL
• IRCTC
• DFCCIL
RITES LTD.
• INCORPORATED IN 1974
• MULTI-DISCIPLINARY CONSULTING FOR INDIAN RAILWAYS
• IT IS THE ONLY EXPORT ARM OF INDIAN RAILWAYS
• SERVICES OVER 55 COUNTRIES
RAIL VIKAS NIGAM LTD. (RVNL)
• INCORPORATED FOR THE IMPLEMENTATION OF THE NATIONAL RAIL
VIKAS YOJANA.
• OBJECTIVES:
• RAISING EXTRA-BUDGETARY RESOURCES
• IMPLEMENTATION OF PROJECTS ON A FAST TRACK BASIS
• 2004 – SHIFT FROM RAISING FUNDS TO IMPLEMENTATION OF
PROJECTS AND CREATING OF PROJECT SPECIFIC SPVs.
TEXMACO RAIL & ENGINEERING LTD.
• OFFERS ROLLING STOCK AND STEEL CASTINGS.
• HEAVY ENGINEERING
• EPC
• STEEL FOUNDRY
• ITS PRODUCTS INCLUDE
• RAILWAY FREIGHT CARS
• HYDRO-MECHANICAL EQUIPMENT
• INDUSTRIAL STRUCTURALS
• STEEL CASTINGS
• PRESSURE VEHICLES
• ONE-FOURTH OF ALL FREIGHT CARS IN INDIA HAS ROLLED OUT OF
TEXMACO
TITAGARH WAGONS LTD.
• CATERS TO THE ROLLING STOCK DEMAND OF INDIAN RAILWAYS
UNDER THE BRAND FIREMA.
• EMU/MEMU TRAINS FOR THE PASSENGER DIVISION OF THE INDIAN
RAILWAYS.
• TYPES OF WAGONS:
• FLAT WAGONS
• CAR CARRYING WAGONS
• MILITARY WAGONS
• TANK WAGONS
• HIGH SIDED OPEN TYPE WAGONS
• POWDER WAGONS
CIMMCO LTD.
• MANUFACTURING OF RAILWAY WAGONS AND HEAVY ENGINEERING
PROJECTS.
• WAGONS ARE MAINLY USED FOR TRANSPORT OF FREIGHT.
• EPD DIVISION HAS TWO SEGMENTS
• CEMENT GROUP
• PROJECT GROUP
HIND RECTIFIERS LTD.
• INCORPORATED IN 1958 IN COLLABORATION WITH WESTINGHOUSE
BRAKE SIGNAL.
• SPECIALIZATION IN DEVELOPING, DESIGNING, MANUFACTURING AND
MARKETING POWER, SEMICONDUCTOR, POWER ELECTRONIC
EQUIPMENT AND RAILWAY TRANSPORTATION.
• CATERS TO LOCOMOTIVE TRANSFORMERS FOR THE INDIAN RAILWAYS
• REHABILITATION AND UPGRADATION OF TRANSFORMERS FOR INDIAN
RAILWAYS
RISK FACTORS
• LEVERAGE
• REGULATORY RISK
• INCREASING OPERATING RATIO (98.4% IN 2017-18)
• INCREASING COMPETITION
• OVERCAPACITY
• INFLATION
• INCREASING PENSION OBLIGATION
DEVELOPMENTS
• GOVT PLANS ON INVESTING 90,500KM BY 2020
• HIGH SPEED RAIL
• REDEVELOPMENT OF 400 STATIONS
• DOUBLE TRACKS TO REDUCE CONGESTION
• REFURBISHING OF OLD COACHES
• ENABLING GPS ON TRAINS
• DIGITIZATION OF INDIAN RAILWAYS
• ROOFTOP SOLAR PLANNED AT STATIONS
• LED LIGHTING AT STATIONS IN PLACE OF INCANDECENT AND CFL BULBS
• ACHIEVEMENTS
• IMPLEMENTATED ELECTRIFICATION OF 49% OF THE NETWORK
• FIRST SOLAR TRAIN AND 50 COACHES WITH ROOFTOP SOLAR
INUSTRY STRUCTURE
• CLASSIFIED AS AN OLIGOPOLY
• BUYING SIDE
• INDIAN RAILWAYS
• NATIONAL HIGH SPEED RAIL CORPORATION
• DELHI METRO RAIL CORPORATION
• BANGALORE METRO RAIL CORPORATION
• SOME SELLING SIDE COMPANIES
• CIMMCO
• TEXMACO
• BEML
• TITAGARH WAGONS
• HIND RECTIFIERS
STAKEHOLDERS
• SOME OF THE MAJOR STAKEHOLDERS IN THE INDUSTRY ARE:
• GOVT OF INDIA
• MINISTRY OF RAILWAYS
• RAILWAY BOARD
• RAILWAY EMPLOYEES
• RESIDENTS OF INDIA
• CONSTRUCTION SECTOR
• STEEL INDUSTRY
• LENDERS TO INDIAN RAILWAYS
• ROLLING STOCK MANUFACTURERS
• INVESTMENT BANKERS
• INVESTORS
• VENDORS TO THE INDUSTRY
DU-PONT ANALYSIS
RATIO ANALYSIS
COST-STRUCTURE ANALYSIS
PESTLE ANALYSIS
• POLITICAL FACTORS –LOW COST POLICY
• ECONOMIC FACTORS – 65% OF THE IR REVENUES FROM CONSUMER
SPENDING ON TRAVEL.
• SOCIAL FACTORS – SHIFT FROM RAIL TO AIR FOR REDUCED TIME
• TECHNOLOGICAL FACTORS – ELECTRIFICATION OF NETWORK,
UMNANNED CROSSINGS AND HIGH SPEED RAIL
• LEGAL FACTORS – HEAVILY REGULATED SECTOR
• ENVIRONMENTAL FACTORS
• ELECTRIFICATION OF NETWORK
• SOLAR POWERED TRAINS
• ROOFTOP SOLAR AT STATIONS
• LED LIGHTING INSTEAD OF INCANDECENT AND CFL
• OFF-GRID SOLAR AND WIND POWER
THANK YOU