SWOT analysis of INDIAN RAILWAY Indian Railways, abbreviated as IR, is the state owned railway company of India, which

owns and operates most of the countries rail transport. It is overseen by the Ministry of Railways of the Government of India. Indian Railways has one of the largest and busiest rail networks in the world, transporting over 18 million passengers and more than 2 million tons of freight daily. It is one of the world's largest commercial or utility employers, with more than 1.4 million employees. The railways traverse the length and breadth of the country, covering 6,909 stations over a total route length of more than 63,327 kilometers (39,350 mi). As to rolling stock, IR owns over 200,000 (freight) wagons, 50,000 coaches and 8,000 locomotives. Railways were first introduced to India in 1853. By 1947, the year of India's independence, there were forty-two rail systems. In 1951 the systems were nationalized as one unit, becoming one of the largest networks in the world. IR operates both long distance and suburban rail systems on a multigauge network of broad, meter and narrow gauges. It also owns locomotive and coach production facilities.

SOME MISCELLANEOUS FACTS ABOUT INDIAN RAILWAYS. SOME FACTS: The total route length of Indian railway is approximately 63,000 kms. The first electric train was opened in February 1925 on Mumbai suburban railway on Mumbai Victoria Terminus (VT) Kurla branch line. As on 31st march, 2004 the electrified route was 17,503kms.The Indian railway largest in the Asia and second largest in the world after the USSR. The total number of railway station in India is more then 7,000.The Indian railway operates approximately 7,525 trains daily covering7,031 railway stations. The largest platform in India is at Kharagpur. The length is 2,733 feet. It is situated in west Bengal. The longest railway tunnel is Konkan railway tunnel i.e. 65 kms. The longest rail bridge is across Godavari River. The length is 10,052 feet. The largest marshalling yard is at Mughalsarai. The third class in the Indian railway was abolished in 1974. Now there are seven classes- AC-1st, AC-2T, AC-3T, Sleeper,AC chair car, first class and second class. Railway set up a fund in 1974 to give financial assistance to Victims of railway accidents. Departmental Undertaking of The Railways, Government Of India.

Indian Railways, which a few years ago was operating at a loss, has, in recent years, been generating positive cash flows and been meeting its dividend obligations to the government, with (unaudited) operating profits going up substantially.[40] The railway reported a cash surplus of 900 crore (US$200.7 million) in 2005, 14,000 crore (US$3.1 billion) in 2006, 20,000 crore (US$4.5 billion) in 2007 and 25,000 crore (US$5.6 billion) for the 2007-2008 fiscal year. Its operating ratio improved to 76% while, in the last four years, its plan size increased from 13,000 crore (US$2.9 billion) to 30,000 crore (US$6.7 billion). The proposed investment for the 2008-2009 fiscal year is 37,500 crore (US$8.4 billion), 21% more than for the previous fiscal year.[2] Budget Estimates-2008 for Freight, Passenger, Sundry other Earnings and other Coaching Earnings have been kept at 52,700 crore (US$11.8 billion), 21,681 crore (US$4.8 billion), 5,000 crore (US$1.1 billion) and 2,420 crore (US$539.7 million) respectively. Maintaining an overall double digit growth, Gross Traffic Earnings have been projected as 93,159 crore in 200910 (19.1 billion USD at current rate), exceeding the revised estimates for the current fiscal by 10,766 crore (US$2.4 billion).[2] Around 20% of the passenger revenue is earned from the upper class segments of the passenger segment (the airconditioned classes).

On Indian Railways As far as we will go to SWOT Analysis on Indian Railways we must clear the meaning of SWOT. Though at the first look the word SWOT seems too simple, but it is a wide term used as S.W.O.T which contains all the necessary data or information of a Business Organization, Firm, Others Institutions etc.

Strength:A large network of 7000 stations exists in the country. A substantial market share exists, in passenger segment. for a country of 1000 million people with low purchasing power railway system is more suitable. For long distance and bulk sector railways is the most economical comparatively safer mode of transport. Petroleum products procured through imports are Very expensive and thus electricity based railway system will always have an edge on parameters of pollution, energy cost, environmental factors. Average length of haul being large break even distance feasible for railway system is available. The Sixth Pay Commission was constituted by the Government of India in 2005 to review the pay structure of government

employees, and submitted its recommendations in April 2008. Based on its recommendations, the salaries of all Railways officers and staff were to be revised with retrospective effect w.e.f. January 1, 2006, resulting in an expenditure of over 13,000 crore (US$2.9 billion) in 2008-09 and 14,000 crore (US$3.1 billion) in 200910. Consequently, staff costs have risen from 44% of ordinary working expenses to 52%.Indian Railways is looking at significantly improving passenger amenities, including refurbishment of the design and look of stations.Work to convert 16 major railway stations into world-class ones is expected to be set into motion in the this fiscal, including separating passenger handling areas from commercial areas, like in airports. Greenfield passenger terminals on similar lines are also being contemplated and could offer more opportunities for development through the PPP route. The Railways is also actively Considering a proposal to re-design the air-conditioned Three-tier coaches for general trains and increase its passenger carrying capacity. Changes in the design could increase the capacity of an AC 3-tier coach in general trains to 81 from the existing 64.

Weakness:THE ORGANISATION IS PRODUCTION ORIENTED. THERE IS OVER EMPHASIS ON MAXIMISING PKMS, NTKMS. 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. INDIAN RAILWAYS IS LOOSING ITS MARKET SHARE IN PASSENGER AND FREIGHT BUSINESS. THERE IS CAPACITY CONSTRAINT HOW TO BALANCE DEMAND AGAINST AVAILABLE CAPACITY.In spite of all various advantage and specialties, we cannot ignore that there are many serious drawback of Indian railways. They are as follows: Outdated technology of locomotive :The rail engines used to run the trains are very old and outdated technology. So they require much maintains and they do not give proper return, as they do not perform efficiently. There is immediate need to change the engines by new and updated ones. Small and inadequate rail networks : As India is worlds second largest rail networks country but if we look by considering requirements of economy and size of country then it is not enough. Further Indias population which is increasing leads pressure on such facility. So there must be extension in the rail networks as per the demand and requirements.

Problem of financial crunch : The railway is facing the problem of financial crunch. The conventional methods of increasing the net revenue, like rising of tariffs and expenditure control are inadequate for generating the levels of investment required.

Opportunity:MEASURES TO IMPROVE FREIGHT BUSINESS: Reduction in unit cost of freight traffic due to increase in loading capacity of wagons and some other measures. Additional loading of 4 to 8 tones per Wagons per adds 100 Million Tones to loading capacity with resultant Revenue generation of Rs 5000 Cr. Validity of brake power certificate 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%. REDUCTION OF LOSSES IN PASSENGER BUSINESS: Increase Volumes reduced unit costs strategy to be adopted in the passenger business also.Cut down losses in the coaching services by about Rs 1000 Cr in the coming year and by 50% in the next three years by increasing the number of coaches and occupancy of trains , reducing travel time and reducing losses in the catering and parcel segments.Over 200 mail/express trains to be made super fast. Journey time of a majority of the Shatabdis, Rajdhanis and of certain mail/express trains likely to reduce. The number of coaches in about 190 popular passenger carrying trains to be increased up to 23-24 coaches enabling railway to earn Rs 200Cr additionally every year. Platform length at 200 stations to be increased at a cost of Rs 60 Cr .Up gradation of lower class passengers to higher class without any additional payment introduced on all Rajdhanis and mail/express train.

Threats:The organization is production oriented. There is over emphasis on maximizing pkms, ntkms. 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. indian railways is loosing its market share in passenger and freight business. There is capacity constraint how to balance demand against available capacity.