For the complete report, get in touch with us at: info@netscribes.com Abstract: Netscribes’ latest market research report titled Rail Transport Market in India 2014 states that with the government opening up the rail freight transport sector to private companies in 2006, the market has developed considerably and offers tremendous potential for players. Freight traffic has increased considerably in the past few years and is projected to grow even further. Although the sector had faced challenges from road freight in the recent past, with several infrastructural development projects being on the verge of completion, the sector is expected to get a major boost. With developments in the sector, efficiency will increase and more companies will be willing to transport products through rail freight. Dedicated freight corridors will vastly aid in this. Further, the country’s growing international trade has increased the need for transportation services, especially from the ports. This will further assist growth in the market. To encourage rail freight and to develop the sector, several marketing schemes have been formulated by Indian Railways. Also, the aim is to modernize the entire railway network. This will provide operational benefits to players active in the sector. At present, there are 16 companies that have the license to operate in the sector with the Government of India undertaking, Container Corporation of India Ltd. (CONCOR) dominating the market. The private players are yet to establish themselves with most of them having a very small fleet size compared to CONCOR. However, with the implementation of various wagon investment schemes and wagon leasing schemes, the private players will benefit and the market will exhibit steady growth. Coverage • Overview of the rail transport market in India and historical data for freight earnings and freight loading over 2009-10 to 2013-14, as well as forecasted data over 2013-14 to 2018-19e • Information on the zone-wise freight earnings and freight loading, and commodity-wise freight revenue generation • Analysis of the various initiatives for freight services and freight marketing schemes • Analysis of the key drivers and challenges influencing the market • Analysis of the competitive landscape and detailed profiles of major players • Analysis of the major modernization plans and investment requirements of Indian Railways Table of Contents: Slide 1: Executive Summary Macroeconomic Indicators Slide 2: GDP at Factor Cost: Quarterly (2011-12, 2012-13, 2013-14, 2014-15), Inflation Rate: Monthly (Jul 2013 – Dec 2013) Slide 3: Gross Fiscal Deficit: Monthly (Feb 2013 – Jul 2013), Exchange Rate: Half Yearly (Apr 2014 – Sep 2014) Slide 4: Lending Rate: Annual (2011-12, 2012-13, 2013-14, 2014-15), Trade Balance: Annual (2010-11, 2011-12, 2012-13, 2013-14), FDI: Annual (2009-10, 2010-11, 2011-12, 2012-13) Introduction Slide 6: Indian Railways – Overview Slide 7:

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Rail Transport Market – India
November 2014

2. 2
RAIL TRANSPORT MARKET IN INDIA 2014.PPT
Executive Summary
Market
Drivers & Challenges
Competitive Landscape
Indian Railways (IR) generated INR ‘f’ bn in freight earning in 2013-14 and is expected to earn INR ‘k’ bn by 2018-19, growing at a CAGR of x1%
Freight loading for IR stood at ‘p’ mn tonnes in 2013-14, and it is expected to grow and reach ‘q’ mn tonnes by 2018-19
Drivers
Shift Towards Rail by Private Players
Increasing Exports and Imports
Dynamic Tariff Policy
Opportunity in Emerging Sector
Challenges
Poor Quality of Service
Increase in Rail Freight Rates
Problems with Connectivity
Major Players
Company 1
Company 2
Company 3
Company 4
Company 5
Company 6
Freight Services Initiatives
Segregation of freight and passenger corridors
Construction of dedicated freight corridors
Improving transit speed
Cost-efficiencies in bulk transport
Meeting customers needs in service delivery, logistics services, transit time and tariff
Freight Marketing Schemes
Special Freight Train Operator Scheme (SFTO)
Wagon Investment Scheme
Terminal Development Scheme (TDS)
Wagon Leasing Scheme (WLS)
Private Freight Terminals (PFT)
Liberalized Wagon Investment Scheme (LWIS)
Automobile Freight Train Operator Scheme (AFTO)

3. 3
•Macroeconomic Indicators
•Introduction
•Market Overview
•Revenue Generation
Zone-Wise Income
Commodity-Wise Income
•Freight Rates
•Freight Services Initiatives
•Freight Marketing Schemes
•Vision 2020
Operational Strategy
•Drivers and Challenges
•Competitive Landscape
•Future Requirements and Investments
•Strategic Recommendations
•Appendix
RAIL TRANSPORT MARKET IN INDIA 2014.PPT

4. 4
Macroeconomic Indicators (1/3)
12
13
14
15
16
INR tn
Q4
d3
d2
d1
Q3
c3
c2
c1
Q2
b3
b2
b1
Q1
a4
a3
a2
a1
2011-12 2012-13 2013-14 2014-15
GDP at Factor Cost: Quarterly
Inflation Rate: Monthly
-2
-1
0
1
2
%
Nov 2013 - Dec 2013
-t
r
Oct 2013 - Nov 2013
s
q
Jul 2013 - Aug 2013 Aug 2013 - Sep 2013 Sep 2013 - Oct 2013
p
RAIL TRANSPORT MARKET IN INDIA 2014.PPT

5. RAIL TRANSPORT MARKET IN INDIA 2014.PPT 5
• Indian Railways’ earnings from freight traffic increased from INR ‘a’ bn in 2009-10 to INR ‘f’ bn in 2013-14, at a CAGR of
‘y’%
•Nine major commodity groups, namely, coal, iron and steel, iron ore (both for export and domestic steel plants), other
raw materials for steel plants, cement, food grain, fertilizer, petroleum products and container traffic dominate the
freight basket of IR
 Bulk freight such as coal, pig iron and finished steel, iron ore, cement, foodgrains, fertilizers and POL products accounted for ‘p’% of IR’s
total earnings in 2013-14, while other commodities accounted for the remaining ‘q’%
Rail Transport Market – Overview (1/2)
Market Size & Growth – Freight Earnings
Freight earnings for Indian Railways is expected to increase
in the coming years
0
500
1,000
1,500
2,000
INR bn
+x1%
2018-19e
k
2017-18e
j
2016-17e
i
2015-16e
h
2014-15e
g
2013-14
f
2012-13
d
2011-12
c
2010-11
b
2009-10
a

6. 6
20
0
10
30
50
40
q4%
2014-15
Till Sep 2014
f1
u5% v5%
w5%t 5% r5% s5%
s3%w 3%
r3%
p3%
2011-12
b1
v2%
u2%
t2%
s2%w 2%
r2%
q2%
p2%
2010-11
a1
v1%
u1%
t1% 6% r1% s1% q1%
p1%
q5%
p5%
p4%
d1
v4%
u4%
t4%
w4%
s4%
2012-13 2013-14
c1
t3%
INR bn
v3%
u3%
r4%
Commodity 7
Commodity 6
Commodity 5
Commodity 4
Commodity 3
Commodity 2
Commodity 1
Others
Commodity 9
Commodity 8
0
10
20
30
40
50
60
2014-15
Till Sep 2014
q9% f2
u10% 5%
t10%
qs1100%%r1 0% 6%
p10%
2013-14
d2
v9%
u9%
t9%
s9%
r9%
t8%
w8%
2012-13
v8%
u8%
s8%
r8%
p8%
2011-12
v7%
u7%
t7%
r7%
s7%
p9%
mn Tonnes
p7%
2010-11
a2 c2
w7%
b2
u6%
t6%
r6%
p6%
v6%
Zone-Wise Income (1/16)
RAIL TRANSPORT MARKET IN INDIA 2014.PPT
• Central Railway covers a large part of the State 1 and parts of State 2 and State 3
• It covers ‘l’ km of route network with ‘m’ km of track linking ‘n’ stations
• It is divided into five divisions: Division 1, Division 2, Division 3, Division 4, and Division 5
• Major commodities carried include Commodity 1, Commodity 2, Commodity 3, Commodity 4, Commodity 5, and
Commodity 6
Central Railway – Overview
Freight Revenue Earning Profile (By Value) Freight Loading Profile (By Volume)

7. 7
Commodity-Wise Income (1/14)
RAIL TRANSPORT MARKET IN INDIA 2014.PPT
Freight Revenue Earnings (2013-14)
0
20000
40000
60000
80000
100000
120000
INR mn
Zone P
p
Zone N
n
Zone M
m
Zone L
l
Zone K
k
Zone J
j
Zone I
i
Zone H
h
Zone G
g
Zone F
f
Zone D
d
Zone C
c
Zone B
b
Zone A
a
Total Freight Revenue Earnings: INR ‘y’ mn
s%
r%
q%
p%
Segment 4
Segment 3
Segment 2
Segment 1
Coal – Overview
• In 2013-14, IR carried ‘z’ mn tonnes of coal, earning INR
‘y’ bn in revenues
• ‘m’% of the coal transported by IR was for use in thermal
power stations, while ‘n’% was for steel plants
• Zone J and Zone B are the major transporters of coal due
concentration of coal around Region 1 and Region 2
Coal Usage – Segments (2013-14)
Based on Volume

8. 8
Freight Rates (1/6)
Freight Rate Per Tonne (INR)
RAIL TRANSPORT MARKET IN INDIA 2014.PPT
Distance (kms)
Class LR3
Class LR2
Class LR1
Class 100
Class 110
Class 120
Class 130
1 – 125
126 – 150
151 – 175
176 – 200
201 – 225
226 – 250
251 – 275
276 – 300
301 – 325
326 – 350
351 – 375
376 – 400
401 – 425
426 – 450
451 – 475

9. 9
Scheme B
•xx
Schemes for Freight Marketing (1/3)
Scheme A
•xx
RAIL TRANSPORT MARKET IN INDIA 2014.PPT
Scheme C
•xx

10. 10
Drivers & Challenges – Summary
Drivers
Shift Towards Rail by Private Players
Increasing Exports and Imports
Dynamic Tariff Policy
Opportunity in Emerging Sector
Challenges
Poor Quality of Service
Increase in Rail Freight Rates
Problems with Connectivity
RAIL TRANSPORT MARKET IN INDIA 2014.PPT

11. 11
Competitive Rivalry
Bargaining Power of Suppliers
Bargaining Power of Buyers
Threat of Substitutes
Threat of New Entrants
Impact
Impact
Impact
Impact
Impact
Market Competition – Porter’s Five Forces Analysis
RAIL TRANSPORT MARKET IN INDIA 2014.PPT

12. 12
Key Ratios of Top 3 Companies – Operational Basis (FY 2014) (1/3)
-50
0
50
100
%
KRIBHCO Infrastructure Ltd.
-c2
c1
Innovative B2B Logistics Solutions Pvt. Ltd.
-a2 -b2
Adani Agri Logistics Ltd.
b1
a1
Operating Margin Net Margin
• Company 3 recorded operating margin of c1%, higher than that of Company 1 and Company 2 which recorded
operating margin of a1% and -c2% respectively
• Net margin was highest for Company 1 which recorded a net margin of b1%, followed by Company 2 and Company 3
which recorded net margin of -b2% and -c2% respectively
Competitive Benchmarking (1/4)
RAIL TRANSPORT MARKET IN INDIA 2014.PPT

13. 13
Public: Domestic Company – Company 1 (1/4)
Products and Services
Company Information
Offices and Centres – India
Corporate Address
Tel No.
Fax No.
Website
Year of Incorporation
Ticker Symbol
Stock Exchange
Category
Products/Services
Railroads
Head Office
RAIL TRANSPORT MARKET IN INDIA 2014.PPT
Key People
Name
Designation
Person 1
Chairman and Managing Director
Person 2
Director
Person 3
Director
Person 4
Director

14. 14
Financial Snapshot Key Ratios
Financial Summary
• Company incurred a net loss of INR XX mn in FY 20XX, as compared
to net profit of INR Y mn in FY 20YY
• It reported total Income of INR XX mn in FY 20XX, registering an
increase of X per cent over FY 20YY
• It earned an operating margin of X.X per cent in FY 20XX an increase
of X.X percentage points over FY 20YY
• The company reported debt to equity ratio of X.XX in FY 20XX, an
increase of X.X per cent over FY 20YY
Key Financial Performance Indicators
Indicators Value (dd/mm/yyyy)
Market Capitalization (INR mn)
Total Enterprise Value (INR mn)
EPS (INR)
PE Ratio (Absolute)
Particulars
y-o-y change
(2014-13)
2014 2013 2012 2011
Profitability Ratios
Operating Margin
Net Margin
Profit Before Tax Margin
Return on Equity
Return on Capital Employed
Return on Working Capital
Return on Assets
Return on Fixed Assets
Cost Ratios
Operating costs (% of Sales)
Administration costs (% of
Sales)
Interest costs (% of Sales)
Liquidity Ratios
Current Ratio
Cash Ratio
Leverage Ratios
Debt to Equity Ratio
Debt to Capital Ratio
Interest Coverage Ratio
Efficiency Ratios
Fixed Asset Turnover
Asset Turnover
Current Asset Turnover
Working Capital Turnover
Capital Employed Turnover
Improved Decline
Total Income Net Profit/Loss
5
10
40
0
60
20
0
INR bn INR bn
2014
d2
d1
2013
c2
c1
2012
b2
b1
2011
a2
a1
RAIL TRANSPORT MARKET IN INDIA 2014.PPT
Public: Domestic Company – Company 1
(2/4)

15. 15
Key Business Segments Key Geographic Segments
Business Highlights
Description News
Overview
Container Operations
Partnerships
0%
50%
100%
q4%
p4%
2011 2013 2014
q2% q3%
p3%
q1%
p1%
2012
p2%
100%
50%
0%
100%
2014
Country A
India is the only geographic
segment in which the company
has been operating for the last
five years
Segment 1 Segment 2
RAIL TRANSPORT MARKET IN INDIA 2014.PPT
Public: Domestic Company – Company 1
(3/4)

16. 16
T
O
W
S
RAIL TRANSPORT MARKET IN INDIA 2014.PPT
Public: Domestic Company – Company 1 – SWOT Analysis (4/4)

17. 17
Key People
Products and Services
Company Information
Offices and Centres – India
Category
Products/Services
Integrated logistics solutions
Name
Designation
Person 1
Director
Person 2
Managing Director
Person 3
Director
Corporate Address
Tel No.
Fax No.
Website
Year of Incorporation
Head Office
RAIL TRANSPORT MARKET IN INDIA 2014.PPT
Private: Domestic Company – Company 2 (1/5)

18. 18
100.0%
Category 1
Shareholders of the Company
Ownership Structure
Name
No. of Shares held
Shareholder 1
Shareholder 2
Shareholder 3
Shareholder 4
Shareholder 5
Shareholder 6
Shareholder 7
Total
RAIL TRANSPORT MARKET IN INDIA 2014.PPT
Private: Domestic Company – Company 2 (2/5)

19. 19
Financial Snapshot Key Ratios
Particulars
y-o-y change
(2014-13)
2014 2013 2012 2011
Profitability Ratios
Operating Margin
Net Margin
Profit Before Tax Margin
Return on Equity
Return on Capital Employed
Return on Working Capital
Return on Assets
Return on Fixed Assets
Cost Ratios
Operating costs (% of Sales)
Administration costs (% of
Sales)
Interest costs (% of Sales)
Liquidity Ratios
Current Ratio
Cash Ratio
Leverage Ratios
Debt to Equity Ratio
Debt to Capital Ratio
Interest Coverage Ratio
Efficiency Ratios
Fixed Asset Turnover
Asset Turnover
Current Asset Turnover
Working Capital Turnover
Capital Employed Turnover
Improved Decline
Financial Summary
• Company earned a net profit of INR XX mn in FY 20XX, as
compared to net profit of INR Y mn in FY 20YY
• It reported total Income of INR XX mn in FY 20XX, registering
an increase of X per cent over FY 20YY
• It earned an operating margin of X.X per cent in FY 20XX an
increase of X.X percentage points over FY 20YY
• The company reported debt to equity ratio of X.XX in FY 20XX,
an increase of X.X per cent over FY 20YY
Total Income Net Profit/Loss
-300
0
100
-100
-200
-400
1,500
1,000
500
0
INR mn INR mn
2014
q4
p4
2013
-q3
p3
2012
-q2
p2
2011
q1
p1
RAIL TRANSPORT MARKET IN INDIA 2014.PPT
Private: Domestic Company – Company 2
(3/5)

20. 20
Business Highlights
Description
News
Overview
Container Operations
RAIL TRANSPORT MARKET IN INDIA 2014.PPT
Private: Domestic Company – Company 2 (4/5)

21. 21
T
O
W
S
RAIL TRANSPORT MARKET IN INDIA 2014.PPT
Private: Domestic Company – Company 2 – SWOT Analysis (5/5)

22. 22
Modernization Initiatives and Investment Requirements
15 focus areas have been identified in order to drive modernization in IR
Core Assets
Revenue Models
Projects
Enablers
Resources
u%
r%
t%
s%
q%
p%
w%
y%
v%
Segment 5
Segment 2
Segment 3
Segment 4
Segment 6
Segment 1
Segment 8
Segment 7
Segment 9
5,000
3,000
0
2,000
4,000
1,000
6,000
h
j
g
5,603
i
f
INR bn
b
c
d
a
RAIL TRANSPORT MARKET IN INDIA 2014.PPT
Total Investment Requirements for Modernization

23. 23
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