Prasanna Purple Mobility Solutions

Complete Surface Mobility Solution

To be people’s chosen brand universally, in mobility solutions, by serving beyond their expectations for every journey whilst adding value to all stakeholders and society at large

About Purple

A complete Mobility Solutions provider company, specialized in Human Logistics

In the market since 1988

Our business vertical includes – City Bus, Intercity, Rentals, Holidays etc

Fleet of more than 1000+ buses operated on daily basis across national geography

City Bus Operations in Delhi, Indore, Pune & Surat

Indore Purple Public Transportation

Delhi Purple Public Transportation

Surat BRT Service

Prasanna Purple Mobility Solutions

Our Bhopal City bus project of 225 buses had got the National Award for Best public transportation under the category “Best PPP Initiative in Urban Transport 2011”. The award was given by Honorable Union Urban Development Minister Mr. Kamal Nath in New Delhi.

2011 - Best PPP Initiative in Urban Transport

National Award

Prasanna Purple Mobility Solutions

WINNER of the top 100 SME's of INDIA for 2014, presented by Bank Of India.

2014 - WINNER of the top 100 SME's of INDIA

National Award

Prasanna Purple Mobility Solutions

Awards for Excellence in Bus transport service. West Zone of India.

2015 - Excellence in Bus Transport (West)

National Award

Prasanna Purple Mobility Solutions

Awards for Excellence in Bus transport service. West Zone of India. Second time in a row

2016 - Excellence in Bus Transport (West)

National Award

India's Small Giants. The award was felicitated by Hon. Union Minister Shri Kalraj Mishra

2016 - India's Small Giants

National Award

Prasanna Purple receives 4 National Awards “India Bus Award” 2017 under the following categories : Excellence in Bus Transport - Private (PAN India) Excellence in Bus Transport - Private (West) (3 times consecutive in a row) Excellence in Marketing Initiative (Customer Retention) Excellence in Bus Transport - Private (Corporates) The award was honored by Deputy Chief Minister of Telangana, Md. Mohamood Ali & Minister IT, Industries & Commerce, Shri K. T. Rama Rao

Prasanna Purple Mobility Solutions

Why PPP?

of Government and Private sector to provide better service

Leveraging Strengths

Urban Local Body’s do not have enough capital to invest.

Lack of Capital with STU or SPV

State Government is not willing to invest in STUs.

No investment by State Governments

To bring in capital and entrepreneur skills of private person / organization

To attract Private Capital

• Managing fleet with crew • Revenue collection ,Sale of tickets, passes . • Development & Management of bus stops , Terminals. • Marketing of value added services • Various ways of generating additional revenue by Advertising

Which services can be Outsourced

9/11/2017 11

Types of PPP

Ideal when there is a single concessioner in a city.

Requires very effective implementation of concession agreement

Gross income is collected by the concessioner and City gets fixed income

either on per bus / per month or operated Km basis. NET

BASIS

Gross Income is collected by STU / SPV and concessioner gets paid a fixed sum on

Per Km basis irrespective of income.

GROSS BASIS

What is it?

STU / SPV having strong administrative and financial strengths outsource fleet

procurement, operation and maintenance to increase operating efficiency

Where is it used?

9/11/2017 12

Gross Vs Net Contract Model : Features

Factor/ Activity/ Feature Gross Contract Net Contract

Most likely bidding factor for contract Per km revenue to be paid

by city authorities

Per bus monthly fees/VGF to

be paid/ received to/from

PTA by/to operator

Revenue to operator Based on per Km charge

contracted in the agreement

Based on direct ticketing

revenue on daily operations

Revenue to PTA Direct ticketing on daily

operations

Per bus monthly/yearly fees

paid by operator

Employment of crew by operator Only driver Driver and conductor

Responsibility of operator Entire O & M Cost Revenue Collection and

Entire O & M Cost

Ownership of buses PTA / operator PTA / operator

Additional revenue thru advertising on

buses

PTA / operator PTA / operator

Planning and implementation of daily

bus schedules

PTA PTA

Infrastructure PTA PTA

Safety & Quality Assurance Joint Responsibility Joint Responsibility

ITMS PTA PTA

PTA- Public Transport Authority

Slow pace of progress

• Gross Cost - Cities do not have enough financial resources.

• Net Cost - Operators are not willing to work because of high royalty expectations & inadequate support by local authorities.

Not being implemented because many cities do

not have expertise to run the system & resources to

fund losses

Not many operator are willing to come forward to

take risk of revenue, as experience of getting

Government support is very bad

Models of PPP

PPP Models

Integrated Single Operator

Advertising Rights

Pass Pricing and Sale

Fare Box Collection

Fragmented

Vendor 1

Advertising Rights

Vendor 2

Pass Sale

Vendor 3, 4 & 5

Operate Certain Routes

RESULT

Maximise revenues

with the focus on

enhancing COMMUTER

COMFORT

9/11/2017 15

Revenue model and priority

Possible only when one operator undertakes entire city operations. Priority is given to passenger convenience ,as main focus is to carry more number of passengers to increase revenue. To attract more passengers he can leverage advertising space to be used as barter to provide discounts to pass holders in certain shops, malls, multiplexes, restaurants intercity bus operators etc.

INTEGRATED MODEL

Difficult without good organisational capabilities of SPV . Priorities of different service provider is different . Revenue model of bus stop advertiser - Is to generate revenue through only advertising hence he will opt for a place of bus stop where advertising will become profitable and will not consider passenger’s convenience.

FRAGMENTED MODEL

Prasanna Purple Mobility Solutions | www.prasannapurple.com

9/11/2017 16

ABCD Trip Analysis

Trip A Trips which generate revenue crossing all expenses or profit making trips.

Trip B Trips which generate revenue upto all expenses like monthly contract payment (royalty) to city authorities and overheads, but excluding finance/bank EMI , or meeting breakeven costs.

Trip C Trips which generate revenue above the direct/ operating cost .

Trip D Trips which are loss making, or generating revenue below direct cost.

ABCD Trip Analysis

0

20

40

60

80

100

120

Jan Feb Mar Apr May Jun Jul Aug Sep

50 51 45 50 55 59 62 64 65

14 13 14 14 12 10 10 9 10 8 9 11 10 9 9 8 8 7

28 27 30 26 24 22 20 19 18

Changing Percentage in ABCD Trips

D%

C%

B%

A%

25.00

27.00

29.00

31.00

33.00

35.00

37.00

39.00

JanFeb

MarApr

MayJun

JulAug

Sep Before ABCD

After ABCD

Average EPKM- 31.11

Average EPKM- 29.18

EPKM : Before and After ABCD Trip Analysis

Effect Of Rescheduling On Improving Earning Per KM ( EPKM )

Best of Best : Bus to Run Highest Kms

Vehicle No. Fuel in Ltrs B-O-B Fuel in Ltrs

MP-1 4946 13077

MP-2 3131 12972

MP-3 4118 12459

MP-4 13536 12366

MP-5 4479 11070

MP-6 4203 7608

MP-7 13907 6117

MP-8 4116 5349

MP-9 7890 4671

MP-10 11578 4425

MP-11 13077 4384

MP-12 13503 4235

MP-13 6494 3526

Total 104979 102259

Result

0

2000

4000

6000

8000

10000

12000

14000

16000

Fuel in Ltrs

B-O-B Fuel in Ltrs

Result : 2720 ltrs fuel saved due to B-O-B

Bus with best mileage does max Kms, consumes highest fuel

Route Bus No. Avg KMPL KMPL

Ranking Total Run

Kms Km Ranking

SR2

MP-1 3.85 1 19041 8

MP-2 3.84 2 12022 13

MP-3 3.75 3 15443 10

MP-4 3.68 4 49812 2

MP-5 3.65 5 16350 9

MP-6 3.63 6 15256 11

MP-7 3.62 7 50345 1

MP-8 3.56 8 14653 12

MP-9 3.5 9 27616 6

MP-10 3.49 10 40407 5

MP-11 3.48 11 45508 4

MP-12 3.46 12 46722 3

MP-13 3.41 13 22145 7

SR2 Total 3.59 375320

Driver Code Avg KMPL KMPL Rank Run Kms Kms Rank

CBB00138 3.99 1

3738 7

CBB00632 3.93 2 4007 6

CBB00574 3.89 3 4605 4

CBB01074 3.85 4 5994 3

CBB00705 3.85 5 6562 1

CBB00416 3.82 6 4092 5

CBB00124 3.68 7 6148 2

Best of Best : Driver to Run Highest Kms

Driver Code Fuel in Ltrs B-O-B Fuel in Ltrs

CBB00138 937 1645

CBB00632 1020 1564

CBB00574 1184 1541

CBB01074 1557 1196

CBB00705 1704 1063

CBB00416 1071 1049

CBB00124 1671 1016

Total 9143 9074

Result

800

1000

1200

1400

1600

1800

CBB00138 CBB00632 CBB00574 CBB01074 CBB00705 CBB00416 CBB00124

Fuel in Ltrs

B-O-B Fuel in Ltrs

Driver with best mileage does max Kms, consumes highest fuel

Result : 70 ltrs fuel saved due to B-O-B

Issues affecting success of PPP model

• Poor understanding of ( PPP) Partnership concept

• No Model concession agreement.

• Fare fixation and timely revision

• Reimbursement of Concession amounts

• Weak SPV responsible for poor Planning & control

• Poor support by local Administration , Police & RTO

• Lack of commitment to build necessary infrastructure .

• No provision of Viability Gap Funding to Private Operator .

• Expectation of High Royalty & Taxes (double standards Vs STUs)

Prasanna Purple Mobility Solutions | www.prasannapurple.com

What is required

• Priority sector – Infrastructure status

• Successful Implementation of NUTP and JnNURM guidelines

• UMTA to be made statutory body with legislative support by CMV Act.

• Capacity building of SPV / STU

• Auto fare revision formula

• Adoption of ITS

• Education to all stake holders- Citizens, Politician , Bureaucrats & Operators

• To bring City bus under essential services

• Third party quality audit mechanism.

• Proof of concept - build one city as a role model.

Prasanna Purple Mobility Solutions | www.prasannapurple.com

Availability of low cost long term funds for entire project Method to provide viability gap funding or fuel and tax subsidy Real estate avenues to earn additional revenue Multimodal terminals, Other associated Passenger & Depot Infrastructure.

Responsibility of Each Stake Holder

By Government

• Build political consensus & will to improve Public Transport • Include all stake holders in the process and educate citizens • Allocate Depot land at strategic location for better and efficient service • Build modern bus terminals with better passenger amenities. •Effective Insurance scheme ( cash less) • Scheme of Project finance for Public Transport Operators. •Give Industry Status to Public Transport by road, like rail.

By Operator

• Modernize bus depots • Upgrade house keeping and maintenance systems to improve on road bus ratio and image of bus. • Adopt ITS, new technology and establish centralized control rooms. • Rationalize routes, plan schedule, manage frequency as per customers requirement. • Bring in more staff training, incentive schemes and motivational programs. • Introduce attractive passenger schemes to attract more commuters. •Work towards road safety program. •Improve image of Public Transport

Provide end to end better experience like Metro to bus users

Thank You