Scribd Logo
Upload

Welcome to Scribd!

  • 139 views

    Turnaround of Indian Railway

    Uploaded by

    Karan Soni
    1) Under Lalu Prasad Yadav's leadership in the 1990s-2000s, the Indian Railways underwent a major turnaround from being loss-making to profitable. 2) Key strategies included downsizing the workforce, outsourcing non-core functions, increasing freight rates, and focusing on increasing volumes rather than costs. 3) Lalu Prasad Yadav took a hands-on approach, conducting surprise inspections and introducing innovations like replacing plastic cups with biodegradable earthen cups.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd

    Turnaround of Indian Railway

    Uploaded by

    Karan Soni
    139 views17 pages
    1) Under Lalu Prasad Yadav's leadership in the 1990s-2000s, the Indian Railways underwent a major turnaround from being loss-making to profitable. 2) Key strategies included downsizing the workforce, outsourcing non-core functions, increasing freight rates, and focusing on increasing volumes rather than costs. 3) Lalu Prasad Yadav took a hands-on approach, conducting surprise inspections and introducing innovations like replacing plastic cups with biodegradable earthen cups.

    Original Description:

    Copyright

    © Attribution Non-Commercial (BY-NC)

    Available Formats

    PPT, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    1) Under Lalu Prasad Yadav's leadership in the 1990s-2000s, the Indian Railways underwent a major turnaround from being loss-making to profitable. 2) Key strategies included downsizing the workforce, outsourcing non-core functions, increasing freight rates, and focusing on increasing volumes rather than costs. 3) Lalu Prasad Yadav took a hands-on approach, conducting surprise inspections and introducing innovations like replacing plastic cups with biodegradable earthen cups.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    139 views17 pages

    Turnaround of Indian Railway

    Uploaded by

    Karan Soni
    1) Under Lalu Prasad Yadav's leadership in the 1990s-2000s, the Indian Railways underwent a major turnaround from being loss-making to profitable. 2) Key strategies included downsizing the workforce, outsourcing non-core functions, increasing freight rates, and focusing on increasing volumes rather than costs. 3) Lalu Prasad Yadav took a hands-on approach, conducting surprise inspections and introducing innovations like replacing plastic cups with biodegradable earthen cups.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 17

    TURNAROUND OF INDIAN

    RAILWAY
     Whenever a situation develops to
    its extreme, it is bound to 
    turn around
     and become its opposite
    Lalu Prasad Yadav leadership
    style
     My mother always told me not to handle a
    buffalo by its tail, but always catch it by its
    horns. And I have used that lesson in everything
    in my life, including the Railways. 
    Lalu Prasad Yadav 
    leadership style
     The solution lay in increasing volumes
    and not the cost .
     Don’t micro manage ,delegate your

    work , take calculated risks.


     If you don’t milk the cow fully ,it falls

    sick.
     Think out of the box
    THE LOSS MAKING ERA
     The Expert-Group report submitted in July 2001
    stated:
    “Today Indian Railway is on the verge of a
    financial crisis... To put it bluntly, the ‘business
    as usual low growth’ will rapidly drive IR to fatal
    bankruptcy, and in sixteen years Government
    of India will be saddled with an additional
    financial liability of over Rs 61,000 crores… On a
    pure operating level, IR is in a terminal debt
    trap.”
    key strategies the Indian
    Railways adopted
    Downsizing
    The number of employees, which peaked at
    1.652 million in 1991, was brought down
    progressively to 1.472 million by 2003,
    and to 1.412 million by 2006. One of the
    elements of retrenchment strategy is to
    trim off excess staff. The approach that
    the IR adopted was not to fill in vacancies
    created due to retirement or other reasons
    key strategies the Indian
    Railways adopted
    Outsourcing
    Besides the catering and parcel service
    activity, the IR also outsourced advertising
    activity. In the other business areas of
    parcel, catering and advertising, the
    strategy of outsourcing through public
    private partnership and wholesaling rather
    than retailing was adopted
    key strategies the Indian
    Railways adopted
     Product Innovation
    The IR introduced double stack container trains on some
    diesel routes. These containers increased the carrying
    capacity of each train to 2,500 tonnes against 1,500
    tonnes.
    Further, it introduced new design of wagons with higher
    pay load (carrying capacity) but lower tare weight
    (weight of the empty wagon) that improved safety
    features. The effect of these measures can be seen in
    higher freight revenue.
     
    key strategies the Indian
    Railways adopted

    Rise in demand 
    The rise in freight revenue - the main
    plank of the IR turnaround. IR raised
    the freight on iron ore by 17%.
    Lalu and Indian Railways

    He disallowed plastic cups used for serving


    tea at railway stations and announced that
    they will be replaced by kulhads (earthen
    cups)
    generate rural employment
    reduce garbage as kulhads are bio-degradable
    Lalu and Indian Railways

     He made personal inspections in the


    railways . He undertook surprise check at
    Rail Bhavan. He deducted the salaries of
    500 latecomer employees and sent them
    back.
     He maintained passenger profile so that
    compartments could be taken off or added
    to trains according to seasonal demands.
    Lalu and Indian Railways

     As a part of his drive to modernize the


    railways , he decided to send nearly 100
    top officials abroad for training in latest
    techniques and sharpen their managerial
    skills in management schools of USA and
    France.
    Lalu and Indian Railways

     He said that he would revoke the contract


    of AH wheeler & company which runs
    newspaper stands on most Indian railway
    stations, because they were enjoying
    monopoly ever since British left India and
    would invite open tender.
    “Turnaround”
     The essence of the ‘turnaround’ was in the
    fact that -
     (i) total revenues increased by a
    significant percentage in the last two
    years
     (ii) the net revenues continued a robust
    upward trend.
    Fully air-conditioned Garib
    Rath

     A view of the Garib Rath, train for the poor that


    provides comfortable , air-conditioned travel at
    affordable cost to India's poor.
    IRCTC
     The site which serves online ticketing for
    Indian railways is the largest e-commerce
    website (www.irctc.com)
    A dead end street is a good
    place to turn around

    Tanya grover
    Parvinder kaur
    Gaurav dutt
    Shakti vohra

    You might also like