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
 Introduction to IR
Indian Railways
 The world’s third largest railway, carries 13 million passengers each day
and it has
Why turnaround???
How it revolved?
Conceptual Framework
 Retrenchment

Strategy Effect

1 ) Reviewing value adding business Cost saving > Rs 1,000 crores /annum
(Catering, parcel service )

2) Reduction of wagon turnaround time 14 % time saved

3) Outsourcing Improved efficiency

 Repositioning

Strategy Effect

1 ) Developing new products (Double Saving: 7% on capital cost , 25%

stack containers) operational expenses

2) Product differentiation E-ticketing, new passenger coaches

3) Focus on revenue growth(like Freight revenue jumped from 233

enhancement in loading capacity, cash m(2001) to 417 m(2007).
incentive to free up wagons)
 Re- Organization

Strategy Effect

1) Changes in planning system Improved efficiency

2) Extent of decentralization ( like Zones Improved vendor satisfaction

raised from (2003) to 16 (2005))
The Turnaround Effect
 What`s next now???

WOW LALOO BHAI!!!

NOW MAMTA BEHAN …
 As per our thinking…

 Cut down the Accident rate

 Hi tech systems
 Better infrastructure
 Proper recruitment and training of
employees
 Disaster management
 Less political interference
 Increased security assurance
THANK YOU!!!
ANY QUERIES ????