TURNAROUND-A PAIN OR GAIN

TURNAROUND OF INDIAN RAILWAYS

PRESENTED BY:

Akash Jindal

Turnaround

•“The implementation of a set of actions required to save an organization from business failure and return it to operational normality and financial solvency.”

•Turnaround management usually requires strong leadership and can include corporate restructuring and redundancies, an investigation of the root causes of failure, and long-term programs to revitalize the organization.

Turnaround- A Gain

•Brings everything from new starting

•All the loopholes are eliminated

•Preventions from insolvency can be made

•New sources and processes are introduced

•Weaker workforce can be eliminated

•Competitive advantage can be gained

Turnaround – A Pain

•Difficulties in introducing and managing new resources•New resources may also have some loopholes •Difficulties in implementing new processes•May require huge financial investments and things can go in wrong direction•Some experienced and worthy workforces can be lost•May not lead to overall success

Conclusion

Pain Gain

Indian Railways The world’s third largest railway, carries 13 million

passengers each day and it has

Introduction to IR

Why turnaround???

How it revolved?

Conceptual Framework

Retrenchment

Strategy Effect

1 ) Reviewing value adding business (Catering, parcel service )

Cost saving > Rs 1,000 crores /annum

2) Reduction of wagon turnaround time

14 % time saved

3) Outsourcing Improved efficiency

Repositioning

Strategy Effect

1 ) Developing new products (Double stack containers)

Saving: 7% on capital cost , 25% operational expenses

2) Product differentiation E-ticketing, new passenger coaches

3) Focus on revenue growth(like enhancement in loading capacity, cash incentive to free up wagons)

Freight revenue jumped from 233 m(2001) to 417 m(2007).

Re- Organization

Strategy Effect

1) Changes in planning system Improved efficiency

2) Extent of decentralization ( like Zones raised from (2003) to 16 (2005))

Improved vendor satisfaction

The Turnaround Effect

WOW LALOO BHAI!!!NOW MAMTA BEHAN …

What`s next now???

Cut down the Accident rate Hi tech systems Better infrastructure Proper recruitment and

training of employees Disaster management Less political interference Increased security

assurance

As per our thinking…

THANK YOU!!!

ANY QUERIES ????