Railway Privatization in Metros

Why Should Private Companies like Reliance enter Railways ?

Year 2006, and its future scenario:

• With exponential growth in Vehicular Density and Congested Passenger Traffic is resulting in slower average distance time and higher cost of road transport.
• With almost no scope of expansion of roads, bottleneck in roadways is unavoidable
• With thousands migrating to Metros on daily basis, how will the Metros move?

What is the Business?

• Offer State of Art Metropolitan Railways Transport System in Mumbai & Bangalore which is fast, efficient and cost effective.
• Offer routes which have the highest traffic density
• Rail Station with a retail and multiplex model
• Cross Selling from Webworld- Internet, Telecom Products, Retail Kiosks, Gaming, Video on Demand, Reliance mobile alerts & booking, Reliance Radio, Selling Reliance Capital products-Mutual Funds,
• Reliance Skyline powered by Reliance Energy
• Offering rental space to
• Direct Selling Agents of Credit Cards/Banks,
• Retail branches of banks
• Hotel facilities
• Top up with Multiplexes
• ATMs
• Smoking cafes
• Postal Services

Differentiation:

• Good project management experience will give first move advantage
• Close relations and government lobbying will catalyze faster execution
• Timings and routes strategically planned to increase competitor entry cost
• Greater role of IT in collaboration with Reliance Infocomm, using high end technology as RFIDs and GPS
• Provide longer trains to cater to large passenger demand supplemented with Moving walkways which can be used by commuters just like an escalator. (The speed of a moving walkway is usually 3 km/h, but there is a high-speed version at Gare Montparnasse station in Paris at 9km/h.)
• Create different Rail Stations as Retail Anchor, a Business Hub, a Multiplex, Hotel zone

Revenues:

• Commuters Tickets
• Cross selling Reliance Business products as well as strategic partners
• Retail Kiosks
• Leases on Multiplexes, retail anchors
• Pay Parking
• Advertising space
• Inside Trains
• Hoardings On the Skyline Bridges
• Stations
• Outer Surface of Train
• Catalogue shopping- delivery next day at boarding station
• Rentals from News Channel, Entertainment Channel, Music Channels for their showcase
• Retailer Margins as vendor for Food, Grocery, Newspapers etc.
• Market Research captive audience
• Restaurants/ Caterers/ Food Courts providing Breakfast, Lunch, Dinner
• Provide Hotel accommodation – major revenue share
• Temples / Church / Mosque as Corporate Social Responsibility
• Rentals from Automobile Showrooms, Healthcare specialists, Gymnasium etc.

Challenges:

• Space Management: with given congestion in available space for infrastructure development, finding available space for this project is a challenge.
• For the success of Skyline one needs supporting Feeder Services either Public Buses or Employers Buses

Message Content for Segment

· 8 am wakeup for young male model, sleepy eyes reaches Reliance Bandra Station, (state of art) does his routine from brushing teeth, workout / bathing breakfast, radio listening, uses drawer facility, smartly dressed in suit hops in prayer room, followed in cozy seat in the Reliance Skyline. Puts on the provided headphones and watches the News Channel.

o RELIANCE SKYLINE- part of your life

· 7 pm. on the female model’s watch, goes with her pals to Shopper Stop at Reliance MG Road Station, eats her favorite spicy Chaat, so many women around at 8 pm. Checks the Habibs new opened on the second floor. Hops in the train to Bandra sits next to male model from campaign above.

Target Segment

ANY INDIAN WHO WANTS TO TRAVEL in Bangalore / Mumbai