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Tag: indian railway

  • Indian Railways Grants INR 43.87 Crore to Startups for 23 Innovation Projects

    A total of 23 innovation projects valued at INR 43.87 crore have been granted to startups by Indian Railways with the aim of improving services. Elastomeric pad design, lightweight wagons, track inspection technology, and rail stress monitoring are some of the issues that solutions aim to address.

    A news source reported that out of 28 problem statements put up on an innovation portal for gathering ideas from companies, the Railways received 423 submissions. To support qualifying firms working on ongoing innovation projects, the Indian Railways have distributed approximately INR 10.52 Cr in funding.

    In addition, it will simplify the design of OHE cantilevers, create rapid point locking clamps/systems, and install sensor-based fire/smoke detection systems with wireless networking for Indian Railways coaches. In power vehicles, these selected startups will be constructing load-counting devices with audio-visual alerts.

    Initiated on June 13, 2022, the ‘Startups for Railways’ programme sought to enhance operational efficiency and safety within the railway network by using the talents of Indian startups, MSMEs, individual innovators, R&D companies, NGOs, and entrepreneurs.

    The projects also centre on solar power generating systems that use flexible solar PV panels on the roofs of LHB coaches, warning systems for loco pilots, and guards for the initiative’s second phase.

    Preventing Human Incidents: Indian Railways Seeks Innovations to Enhance Safety

    Along with the existing collaborations, 59 innovators are being considered for potential solutions to six concerns. Some of these pressing problems include finding non-invasive technical ways to detect drugs and explosives in delivery vans and goods rakes and avoiding human runovers on trains.

    Preventing human accidents on rails is a major task for several reasons, such as trespassing, safety violations, and diversions. The rail company sent an invitation to tech companies to suggest solutions that may detect when people are nearby and react accordingly. The railways are now finalising their choices after eight businesses were shortlisted in the initial stage of screening.

    Startups for Railways

    A decentralised strategy, the “Startups for Railways” concept gives authority to divisional levels to speed up product development and reduce delays. The Ministry has established an open, unbiased, and user-friendly platform for promoting partnerships and pushing technological progress to transform the future of Indian Railways through the establishment of the Indian Railway Innovation Portal.

    With a network size of approximately 123,542 km of tracks and 7,300 stations, employing nearly 1.2 million people, the Indian Railways (IR) is on the verge of embracing cutting-edge technology, environmentally friendly practices, and vast operations. IR is also the largest railway network in Asia and the fourth largest in the world. Aiming to complete manufacturing of India’s debut hydrogen train, wholly built within the nation, and witnessing the introduction of the indigenous high-speed train, Vande Bharat Express, 2023 was a critical year for the Indian Railway.

    Top 10 Landowners in India
    Discover the top 10 landowners in India, including prominent individuals and influential entities that own vast tracts of land across the country.
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  • Will IRCTC Sell Your Data?

    The Indian Railway Catering and Tourism Corporation or more popularly known as the IRCTC is a wholly owned subsidiary of the Indian Railways, Government of India. Established as a public sector company on September 27, 1999, the IRCTC is authorised to provide services like online ticketing, catering and selling drinking water on trains and at railway stations for the Indian Railways.

    IRCTC pioneered internet-based rail ticket booking through its website as well as its mobile app. It offers services like the Tatkal scheme, allowing passengers to book tickets on short notice. It introduced pantry cars for long-distance journeys, serving freshly cooked meals to passengers. It also launched an e-catering service in 2014 allowing passengers to pre-order food from partner restaurants.

    IRCTC also operates and manages air-conditioned waiting lounges, retiring rooms, and budget hotels in partnership with private players. It also organizes budget and deluxe package tours for domestic and foreign tourists. In 2020, IRCTC began operating India’s first private train, The Tejas Express from Lucknow to New Delhi.

    In 2019, IRCTC was listed on the National Stock Exchange following which the Government of India’s stock holding in the company was reduced to 87%. By December 2020, the Indian Government further reduced its holding to 67% as it divested another 20% to be publicly traded.

    IRCTC’s Tender Issuance
    The Background

    How to Create IRCTC Account?

    IRCTC’s Tender Issuance

    A total of 100 million users, 75 million of which are active users, make the extensive databank of IRCTC, which has been collecting user data since 2002. It recently floated a tender in a bid to hire a consultant in an effort to monetize its passenger and freight customer data to generate a revenue of INR 1000 crore. The tender document mentions that the data to be studied would include information that was captured by its various applications like name, age, mobile number, gender, address, email ID, class of journey, payment mode, log-in id and password and other personal details.

    An IRCTC representative clarified that as a commercial entity, IRCTC is constantly exploring new business sectors, apart from its existing enterprises like rail ticket booking, retiring room booking, hotel booking, catering service, bus booking, air ticket booking, etc. Additionally, it does not save the client’s financial information on its servers as the control is transferred to the appropriate payment gateway or bank for due process when the client makes an online payment.

    This move by IRCTC, however, has given rise to certain media reports claiming that it is selling consumers’ personal information in an effort to monetize the information. Even as the Railways has since denied these reports, the tender document can be viewed on the IRCTC website.

    IRCTC, however, has withdrawn the controversial bid and told the Parliamentary standing committee on Information and Technology that the intention behind floating the tender was only to leverage the information to improve its own services. There was never any intention to sell the data to a third party. An IRCTC spokesperson has clarified – “IRCTC has withdrawn tender for appointment of consultant for suggesting business strategies using data available.”

    IRCTC – How Does This Indian Railway Catering and Tourism Company Make Money?
    IRCTC is an Indian company that undertakes ticketing, catering, and tourism services for the Indian Railways. Here’s a look at its business model.
    StartupTalkyShalini Rath

    The Background

    Indian Railways Revenue from FY2017 to FY2023
    Indian Railways Revenue from FY2017 to FY2023

    From the conversations with the Ministry of Electronics & Information Technology, it seems that its intent is to position India as the World’s Artificial Intelligence Model Making Capital and IRCTC may have aspired to be seen among those with the ‘first mover’ advantage. These include pharmaceutical giants, e-commerce firms and fintech companies which are consistently pushing the boundaries of technology while having unfettered access to personal data.

    The reason behind such a move from IRCTC can be attributed to the outdated privacy protection laws that still rely on the IT Act of 2000, which only states that a person can claim compensation if his data is misused. This law does not specify the ownership of the data, hence an individual can lay no claim of ownership on personal data.

    For close to a decade now, the Personal Data Protection (PDP) Bill for India has been in limbo, which, if introduced, was finally expected to guarantee the right to privacy and data protection this year. It was shelved as the panel which was studying the bill suggested a total of 12 recommendations and 81 amendments. This has forced the government to completely redesign the bill which is expected to be tabled in the parliament by December 2022.

    Business Model of IRCTC | How does IRCTC Make money
    Indian Railway Catering and Tourism Corporation is a subsidiary of Indian railways. Lets look at its business model to understand how does IRCTC make money.
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    Conclusion

    Data is the new oil and for companies that deal with enormous primary data, it can be relatively easy to monetize it as secondary data without stringent laws to govern it. While the government is responsible for national security and safety and could very well be exempt from this law, IRCTC’s brief tryst with data monetization has stressed the importance and urgency to introduce the Data Protection Bill. It is the hope that the Data Protection Bill will become law by 2023.

    FAQs

    What does IRCTC do?

    IRCTC stands for Indian Railway Catering and Tourism Corporation. It is a wholly-owned subsidiary of the Indian Railways, Government of India and is authorised to provide services like online ticketing, catering and selling drinking water on trains and at railway stations for the Indian Railways.

    How many users does IRCTC have?

    IRCTC has more than 100 million users, 75 million of which are active users.

    Is IRCTC selling user data?

    IRCTC recently floated a tender in a bid to hire a consultant in an effort to monetize its passenger and freight customer data. However, later it withdrew the bid and clarified that the intention behind was only to leverage the information to improve its own services and explore new business opportunities.

  • IRCTC – How Does This Indian Railway Catering and Tourism Company Make Money?

    Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations. The content in this post has been approved by IRCTC.

    It can be safe to say, the need for catering services is constant throughout the year. The catering industry provides services to millions of customers worldwide through its variety of channels designed to cater to the customers’ needs. Even though event catering is likely the most well-known form of channel, it is not the only one available.

    In India, the catering business is tremendously huge and growing. It is not only about weddings and birthdays, but we are talking about the catering services on railways which is also a thing that grabs one’s attention.

    Nowadays, the Railway catering services are managed by both the government and some private licensed contractors. IRCTC is the largest government-owned catering service in India today.

    IRCTC, the short-form of Indian Railways Catering and Tourism Corporation Limited, is a Central Public Sector Enterprise under the Ministry of Railways, Government of India that provides services such as ticketing, catering, and tourism services for the Indian Railways.

    The company was founded in 1999 as an extended business of the Indian Railways to look after the catering and hospitality department at railway stations, in general.

    In this article, discover all the information about IRCTC, its highlights, startup story, its business and revenue model, challenges faced, and much more.

    IRCTC – Company Highlights

    Startup Name IRCTC
    Headquarters New Delhi, India
    Sector Public
    Founder Ministry of Railways
    Industry Railways: Catering and Hospitality
    Founded 27 September 1999
    Revenue Rs 216 crore (March 2022)
    Website www.irctc.com

    IRCTC – About
    IRCTC – Industry
    IRCTC – Leadership
    IRCTC – Startup Story
    IRCTC – Mission and Vision
    IRCTC – Name, Tagline, and Logo
    IRCTC – Business Model
    IRCTC – Revenue Model
    IRCTC – Challenges Faced
    IRCTC – Partnerships and Collaborations
    IRCTC – Mergers and Acquisitions
    IRCTC – Social Media Presence
    IRCTC – Competitors
    IRCTC – Awards and Achievements
    IRCTC – Future Plans

    IRCTC – About

    Termed the Mini Ratna (Category-I), IRCTC comes under the ownership of the Central Public Sector Enterprise under the Ministry of Railways, Government of India. The company was incorporated with the aim to take over all the catering and hospitality services at every station, and train by creating low-cost accommodations, unique tour packages, informational and promotional materials, and global reservation systems for the development of local and international tourism in India.

    IRCTC has its main administered office in New Delhi along with ten regional offices situated at Lucknow, Chandigarh, Jaipur, Bhopal, Ahmadabad, Guwahati, Bhubaneswar, Patna, Ernakulam, and Bangalore. The tourism and ticketing offices are located in New Delhi.

    IRCTC is mainly involved in the following activities:

    • Catering and Hospitality
    • E-Ticketing
    • Travel and Tourism
    • Packaged Drinking Water (Rail Neer)

    Currently, IRCTC has its operations located in the following manner,

    Fourteen Rail Neer manufacturing plants at

    • Nangloi (Delhi)
    • Danapur (Bihar)
    • Palur (Tamil Nadu)
    • Ambernath (Maharashtra)
    • Amethi (Uttar Pradesh)
    • Parassala (Tamil Nadu)
    • Bilaspur (Chhatisgarh)
    • Hapur (Uttar Pradesh)
    • Sanand (Gujarat)
    • Mandideep (Madhya Pradesh)
    • Jagiroad (Assam)
    • Maneri (Madhya Pradesh)
    • Nagpur (Maharashtra)
    • Sankrail (Kolkata)

    Eleven Base Kitchens setups at

    • New Delhi
    • Howrah
    • Ahmedabad
    • Patna
    • Mumbai Central
    • Mumbai CST
    • Ballarshah
    • Nagpur
    • Balasore
    • Sealdah
    • Kharagpur

    Five Zonal Offices at

    • New Delhi
    • Mumbai
    • Kolkata
    • Chennai
    • Secundrabad

    Additionally, IRCTC also has its services extended globally. They provide hassle-free tour packages to foreign destinations like the USA, Australia, Europe, Russia, Nepal, Macau, China, Hong Kong, Dubai, Singapore, Thailand, Malaysia, and Sri Lanka.

    IRCTC – Industry

    IRCTC belongs to the Catering and Hospitality industry. It was during the 19th century, that the network of railways began in the country. During that period, traveling was slowly picking up pace as many people started to travel from one part of the country to another, who needed food and drinks for the journey.

    Ever since then, the catering and hospitality industry is increasing at a significant rate with the increase in travel by many tourists.

    Compared to US$28.9 billion in 2018, the Indian tourism and hospitality industry expects to generate US$50.9 billion in traveler exports by 2028.

    IRCTC – Leadership

    IRCTC is headed by Smt. Rajni Hasija. She is the Chairman and MD at IRCTC.

    Smt. Rajni Hasija

    Smt. Rajni Hasija is a science scholar with an M.Phil from Delhi University. A postgraduate in Human Resource Management and a degree in Law, Smt. Rajni Hasija is the whole-time Director of Tourism & Marketing at IRCTC. Along with this role, she also happens to be the Chairman and Managing Director at IRCTC.

    Smt. Hasija has over 29 years of experience in Indian Railways and has also worked in many managerial capacities as well as various public sector undertakings. She played a pioneering role in the creation and growth of the railroads’ www.irctc.co.in website for online ticketing facilities.

    Smt. Hasija has also successfully completed many time-constrained projects for IRCTC, ranging from planning and executing the dynamic online cum counter ticketing platform for the Commonwealth Games 2010 to international marketing of the Maharajas’ Express Luxury Tourist Train.

    She was able to pull this off because of her strong technical knowledge, organising and planning skills, and ability to communicate with her peers and team.

    IRCTC – Startup Story

    The story of IRCTC began in 1999 when the company was incorporated with the aim of the Ministry of Railways. IRCTC was initially entirely owned by the Government of India, but in 2019 it has been listed on the National Stock Exchange, with the Government still maintaining majority ownership. The government owns about 67% of ownership in IRCTC.

    IRCTC is the only enterprise that is authorised to supply specific services to the Indian Railways. They are allowed to offer services such as online ticket booking, catering, and selling of packaged drinking water on trains and at railway stations. It was classified as a Mini Ratna public corporation in May 2008, which gave it some monetary independence.

    IRCTC – Mission and Vision

    Being in the catering and hospitality industry, IRCTC has developed many CSR activities.

    They truly believe in doing for the society, for which their CSR vision is, “To be the leading provider of high-quality travel, tourism, and hospitality related services, for a range of customer segments, with consistently high level of customer satisfaction.”

    IRCTC means the Indian Railway Catering and Tourism Corporation Limited. The name rightly tells us the work they do that is providing catering and hospitality services to every railway station across India.

    The tagline of IRCTC says, “Lifeline of the nation”

    The logo of the IRCTC displays a combination of blue and grey symbols, which means pan-India connectivity of railway networks.

    IRCTC – Business Model

    IRCTC business is divided into four main services  – hospitality and catering, online ticket booking for flights, trains, and buses, tour packages for both national and international places, and providing packaged drinking water under the label Rail Neer.

    Here’s an in-depth dig into the business operations of IRCTC:

    IRCTC boasts of being one of the largest hospitality and catering companies in the county. The catering business of IRCTC scatters across every passenger train in India, railway stations, and in and around the station premises.

    The hospitality and catering business is split into three parts:

    Mobile Catering Business

    IRCTC oversees all of the Indian Railways’ onboard catering operations in more than 460 passenger trains with pantry cars, including the Rajdhani, Shatabdi, Duronto, Gatimaan Express, Mail/Express, and recently introduced Vande Bharat Express, and Tejas Trains.

    In all of these trains, the pantry carriages are installed from which they get their onboard catering services.

    Other Catering Services (OCS)

    Under this service, its business is divided into two categories:

    Static Catering Businesses

    Under this business, IRCTC has static catering businesses as well. It’s amusing to know that IRCTC also indulges in managing Train side vending (TSV) on Mail/Express and Superfast trains that do not have the option of pantry cars.

    With the help of TSVs, the onboard merchants take orders from the customers who have been offered with the menu chart. After the prescribed order is confirmed, the food is then picked up by vendors at the designated “meal pick-up places”,  and it is then given to the passengers.

    Base Kitchens

    Another static business of IRCTC is Base Kitchens. The Ministry of Railways upgraded a total of 46 base kitchens with the object of producing high-quality meals for every one of its customers on trains.

    These kitchens are in process and will be equipped with modern technology. Furthermore, the Ministry of Railways is soon going to activate CCTC cameras for live streaming in the public domain along with QR code facilities on meal packets.

    Besides these two static businesses, IRCTC is also involved in other ancillary business activities. They have Food Plazas, fast food units, cell kitchens, and refreshment rooms.

    Other Hospitality Businesses

    IRCTC has also introduced other hospitality businesses like:

    Executive Lounge

    The idea is to provide and cater to the demands of the mid-segment and high-end passengers. It wanted to build a comfortable place inside the railway stations to dining in hygienic surroundings. The company took inspiration from airport lounges, it has already opened eight Executive Lounges in the Railway Stations mainly at the New Delhi (Paharganj Side & Ajmeri Gate side), Agra Cantt, Jaipur, Ahmedabad, Madurai, Sealdah, and Varanasi. Some of the other facilities provided at these lounges are wifi services, reclining sofas to relax, shower facilities, etc.

    Retiring Rooms

    IRCTC has already established retiring rooms at 19 railway stations. Furthermore, there are many rooms, which are under construction right now. The concept of these rooms is to enhance the accommodation facilities for the travelling passengers.

    Rail Yatri Niwas/BNR hotels

    At present, there are two Rail Yatri Niwas at New Delhi and Howrah railway stations and two BNR Hotels at Puri, Odisha, and Ranchi, Jharkhand.

    E-catering Business

    The most recent expansion of IRCTC’s catering and hospitality operations is E-Catering. This new business by the company is a combination of technology and cuisine.

    With the help of a smartphone application, customers can order food from participating restaurants and food outlets using this internet-based service while riding a train. The passengers’ seats or berths are where food is delivered. To enjoy the service, customers have to book in advance.

    Online ticket or Internet Ticketing

    IRCTC launched its internet ticketing facility in 2002, and ever since then, IRCTC has made the lives of many travellers easy and convenient.

    As per data and survey, there have been 15.88 lakh e-tickets booked as of 21st March 2022.

    This proves that the company has emerged as one of the largest e-commerce websites not in India but also in Aisa Pacific.

    Tourism business

    Apart from just catering and hospitality business, IRCTC has put its benchmark in the tourism department as well. The company has played a majestic role in the development of rail tourism in India.

    With its website www.irctctourism.com, the company offers a myriad of options Rail based Packages, Hotels, and Railway Retiring Rooms to provide the users with a one-stop solution to all their travel needs.

    By 2015, IRCTC started giving tour packages that include flight booking, hotel accommodation, sightseeing, etc. These packages are meant for both national and international trips.

    One of the most unique services provided by IRCTC is the Land Packages. These packages are meant for those customers who are interested in visiting temples for darshans, more commonly for teertha darshan.

    It also offers air ticketing, and bus ticketing and has now also ventured into cruise bookings targeting both domestic and international markets.

    Packaged Drinking Water

    Another major business of IRCTC is manufacturing packaged drinking water known as Rail Neer. Rail Neer is the company’s own branded packaged drinking water.

    Presently, the company has fourteen operational manufacturing plants of Rail Neer. These are located at Nangloi, Danapur, Palur, Ambernath, Amethi, Parassala, Bilaspur, Sanand, Hapur, Mandideep, Nagpur, Jagiroad, Maneri, and Sankrail. In addition to this, the company is planning to set up six other plants to increase the production capacity of 18.40 lakh bottles per day in FY 2021-22.

    IRCTC – Revenue Model

    IRCTC’s most of its earnings are through its internet ticketing facility. The company has reported that a total amount of Rs. 38178.32 crores was collected as ticket fare from the users of E-ticketing during the year 2021-22. It has also been shared by IRCTC that the total number of tickets booked was 4174.49 Lakhs, which is 140% of the previous year.

    IRCTC gets 63% from e-ticketing, 22% from the catering business, 8% from Rail Neer, 7% from tourism, and the rest from State teertha.

    IRCTC – Challenges Faced

    In 2016, there was a case against the IRCTC by the Mumbai police for not maintaining its customers’ data. The allegation was that the company was involved in leaking the private data of its 10 million customers.

    The company also faced criticism that there were data breaches and exposures, and there are worries that the government may have utilised passenger information to transmit targeted advertisements.

    Another challenge faced by IRCTC was during the 2020–2021 Indian farmers’ protests. The company was criticised for sending emails without its customer’s content.

    The email advertised the benefits of government policies to Sikh farmers who are protesting under the subject “PM Modi and his government’s special relationship with Sikhs”. Later, it was found that these emails were sent to promote government messages.

    IRCTC – Partnerships and Collaborations

    Earlier this year, IRCTC announced that it has partnered with Paytm to digitise its ticketing system for customers through its Automatic Ticket Vending Machines (ATVM) installed at every railway station. Its online ticketing system now has QR code digital payment solutions.

    On 21 February 2022, IRCTC collaborated with the Bank of Baroda to launch  IRCTC BOB Loyalty Cobranded Credit Card on the RuPay platform.

    Previously, it has also collaborated with SBI to come up with a travel credit card called IRCTC Rupay SBI card. The credit card gives access to various benefits like railway lounges, travel offers, rewards, and many other benefits.

    IRCTC – Mergers and Acquisitions

    As per sources, the Central government is planning to merge the six public sector undertakings (PSUs) by the end of 2023.

    The companies which are likely to be merged are Rail Vikas Nigam Limited (RVNL) with Indian Railway Construction Limited (IRCON), RailTel Corporation with Indian Railway Catering and Tourism Corporation (IRCTC), and Braithwaite and Co Limited with Rail India Technical and Economic Services (RITES).

    The Ministry of Railways hopes to get better funding and boost the overall value of these PSUs with this merge.

    IRCTC – Social Media Presence

    The IRCTC does strong advertising and branding on its social media profiles. The company does seem to be quite active on its social media channels by posting various interactive and informative posts regarding its services.

    You can follow the company for its latest updates on its Facebook, Twitter, and LinkedIn page.

    IRCTC – Competitors

    The tourism and hospitality sectors are swarming in the Indian market, which of course, gives rise to tough competition between these companies. IRCTC is not alone in the catering business, many other companies give a tough fight. IRCTC competes with the following companies:

    • Interglobe Aviat
    • Delhivery
    • Indian Hotels Co.
    • Blue Dart Expres.
    • Devyani International Ltd.
    • Easy Trip planners Ltd.
    • Westlife Development Ltd.
    • Sapphire Foods
    • TCI Express
    • Chalet Hotels
    • Restuarant Brand
    • Lemon Tree Hotel
    • NIIT
    • Mahindra Holiday
    • Thomas Cook
    • ITDC
    • SpiceJet

    IRCTC – Awards and Achievements

    Throughout its journey, IRCTC has come a long way in receiving many achievements or milestones to take its catering and tourism services to newer heights.

    Some of the achievements of IRCTC are:

    • IRCTC launched a new e-Ticketing Website & Mobile App for the booking of online Railway Ticket (2020)
    • A payment wallet named iMudra provides an easy way to book railway tickets, and pay, send or withdraw money. (launched in 2019)
    • Launched the first semi-private Train ”Kashi Mahakaal’ inaugurated by Prime Minister Narendra Modi (2020)
    • Launched second semi-private train ”Tejas” between Mumbai and Ahmedabad (2020)
    • Launched Tejas Express from Mumbai CST to Karmali, Goa (2017)

    IRCTC – Future Plans

    IRCTC has shown great results in the stock market. Many experts believe that the company is planning to grow exponentially. It is expected that stocks would grow from Rs 3,000 to Rs 5,000 stock level. As of 2021, the market capitalisation of IRCTC is Rs63,726 crore.

    From the looks of this tremendous growth, the future of IRCTC seems bright. It is also assumed that with the rise of internet usage, the company will see a growth in its online ticketing business at a CAGR of 17% in the coming years.

    FAQs

    What is the revenue of IRCTC?

    The revenue of IRCTC was $300 million as of 2020.

    When was IRCTC founded?

    IRCTC was founded on 18 February 1905.

  • Business Model of IRCTC | How does IRCTC Make money

    Of course, being an Indian, you would definitely travel a lot by train even if the distance is literally from one city to another. But what if you have to itinerant from one state to another for instance- You can’t run for each train in each station from Chennai to Mumbai right? That’s Why the Indian Government established IRCTC – an effortless e-ticketing booking website & mobile app, scheduled train system, hospitality and catering services to travellers.

    Besides, IRCTC promulgates One-Stop Solutions such as Tour Packages, Packaged drinking water Lounges & restaurants according to the tourist’s budget and global reservation.

    IRCTC launched on 27th September 1999 and over 20 years the organisation has become an ultimate revenue source in the development of GDP in India. Currently, the corporation is worth 460 million USD and earning around 900 USD per day by generating services.

    Where does IRCTC operate?
    Main Products and Services of IRCTC
    Target Audience of IRCTC
    Business Model of IRCTC
    What is unique about the IRCTC business model
    FAQ

    Where does IRCTC operate?

    IRCTC operates around and across India, 14 Rail Neer plants at Nangloi, Danapur, Palur, Ambernath, Amethi, Parassala, Bilaspur, Hapur, Sanand, Mandideep, Jagiroad, Nagpur, Sankrail and Maneri;

    These centres have been established for low-cost packaged drinking water to tourists. Moreover; 11 Base Kitchen has catering services which are located in New Delhi, Patna, Mumbai, Central Mumbai, Ballarshah, Nagpur, Howrah, Balasore, Chennai, Kolkata, Kharagpur, Sealdah and Secunderabad.

    With the expectation of services, IRCTC bestows 5 zones offices at New Delhi, Mumbai, Chennai, Secunderabad and Kolkata.

    Ten regional offices at Lucknow, Chandigarh, Bhopal, Patna, Ernakulam, Bangalore, Bhubaneswar, Ahmadabad, Guwahati and Jaipur.

    Besides; IRCTC owns One e-ticketing and tourism office in New Delhi.

    Other than that, IRCTC offers foreign destinations to the USA,  Russia, Australia, Europe, Hong Kong, Nepal, Macau, China, Dubai, Thailand, Singapore, Malaysia and Sri lanka etc.

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    Main Products and Services of IRCTC

    IRCTC is an Indian Railway Catering and Tourism Corporation Ltd. with a main purpose to facilitate the development of rail tourists across the country. Apart from railway, IRCTC provides domestic and international tourism that subsumes flight or bus tickets, accommodations, tour packages inside and out- sightseeing and other travel needs.

    Furthermore, IRCTC eases foreign tour packages to Dubai, Thailand, Hong Kong, China, Nepal, USA, Singapore etc.

    Does it sound so fun, when you are travelling on IRCTC along with your friends, Damn, what else is needed? When IRCTC is ready to provide all facilities you are looking for from the beginning to end of your journey at an affordable price which depends on the booking class- AC first class, AC 2-Tier, AC 3-Tier, First class, AC Chair Car, Sleeper and second sitting. For instance, if you are in an AC F-class then the fare costs an arm and a leg.

    IRCTC provides Air Packages, Rail Based Tourism, Tourism accommodation, Air e-ticketing, Bus ticketing and sells packaged drinking water.

    Target Audience of IRCTC

    IRCTC focuses on the citizens who travel from one place to another. Additionally, as of 2019 more than 20 million users have been registered on the IRCTC portal.

    Business Model of IRCTC

    The IRCTC offers five major services to the Indian public. The services offered are E-Ticketing, Packaged Drinking water, Catering, Tourism and State Teertha.

    As of 2021, the IRCTC makes most of its profit from e-ticketing and catering services as it provides 63% and 22% of the total revenue respectively.

    Travel and tourism contribute to 7% of the revenue with packaged water about 8%.

    The Tatkal scheme by IRCTC is a scheme that is widely used by people in which people can book the tickets for travel one day prior to their travel on the Indian Railways Internet Portal.

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    What is unique about the business model of IRCTC

    What makes IRCTC stand out apart from the fact that it is a monopoly in India are the services offered by the company:

    E-Ticketing

    The Internet ticket sale by IRCTC was launched in 2002 and it is the only authorised application to sell railway tickets by the Indian Railways. The website is managed by TCS. IRCTC books nearly 8 lakh tickets daily through this feature.

    Catering

    IRCTC is the largest catering company operating in India. In 2020, catering accounted for 38% of the revenue. The catering services given by IRCTC are Static Catering, Mobile Catering Business, E-Catering and other services like executive lounges, budget hotels at major railway stations, etc.

    Tourism

    IRCTC offers budget and deluxe packaged tours for foreign and domestic tourists. The company also offers adventure tourism packages that include activities like water sports, wildlife treks, etc. It also offers services like Air tickets and corporate travel, Mass tourism, etc.

    Packaged Drinking Water

    IRCTC has a packaged drinking water service known as Rail Neer that offers pure and safe packaged water to customers. On average, it sells about 34 million water bottles per month.

    State Teertha

    State Teertha is a scheme sponsored by the state governments for pilgrimage trains and due to the COVID pandemic, this scheme did not see much success.  

    Conclusion

    Gone are the days when long queues were the only way to book a railway ticket. With the IRCTC offering online ticket booking people from anywhere in India with a smartphone can book their tickets hassle-free.

    Despite the COVID pandemic and the profit drop of 26.6 percent suffered by the IRCTC, the company has bounced back. The expected growth in online ticketing with a CAGR of 17% in the upcoming years; the growing catering industry is also expected to have a growth rate of CAGR of 18% making the IRCTC a successful venture.

    FAQ

    What is IRCTC?

    Indian Railway Catering and Tourism Corporation(IRCTC) is a subsidiary completely owned by the Indian Railways. It provides services like ticketing, catering and tourism.

    Is IRCTC a private company?

    No, IRCTC is majority-owned by the government of India.

    What is the revenue of IRCTC?

    IRCTC’s total revenue for FY20 was INR 2353.53 crore with a net profit of INR 528.57 crore. As of 2020, the company’s net assets are valued at US $460 million with total equity being US $ 190 million.