3. Primary Objective
To find out what is the requirement of the
following products in Indian Railways:
Cable Joints and Terminations
Insulators
Lightning Arresters
6. Indian Railways – One of the major focus areas
for Raychem RPG for FY 2012-13.
Only 25% (approx.) of the total railway tracks are
electrified (16001 rkms out of 63028 rkms).
1825 kms of electrification (725 kms new
construction and 1100 kms of electrification) is
scheduled in the year 2012-13.
17. Organization
Need to know more about:-
• The Electrical Department
• The Stores Department
• The Accounts Department
• CORE Allahabad
• RDSO Lucknow
19. The Electrical Department
Grade Designation Location
HAG CEE Zonal HQ
SAG CESE (Service)
CEGE (General)
CEDE (Distribution)
CETE (Traction)
CELE (Locomotive)
CEE/CON(Construction)
Zonal HQ
Zonal HQ
Zonal HQ
Zonal HQ
Zonal HQ
Zonal HQ
JAG Dy. CEE (Zonal/Divisional)
Sr. DEE
Zonal HQ/Div. Office
Divisional Office
Sr. DEE Divisional Office
Jr. AEE/Zonal
AEE/Divisional
Zonal HQ
Divisional Office
Gazetted Establishment
20. The Stores Department
Grade Designation Location
HAG Controller of Stores (COS) Office of COS
SAG Chief Material Manager (CMM) Office of COS
JAG Dy. Chief Material Manager (Dy.
CMM)
Zonal HQ/ Divisional HQ/
Depots
Sr. Senior Materials Manager (SMM) Zonal HQ/ Divisional HQ/
Depots
Jr. Assistant Materials Manager (AMM) Zonal HQ/ Divisional HQ/
Depots
Gazetted Establishment
21. The Accounts Department
Grade Designation Location
HAS FA & CAO Zonal HQ
SAG FA & CAO (G)
FA & CAO (T)
FA & CAO (W&S)
Various Locations
JAG Dy. FA & CAO Various Locations
Sr. Sr. AFA Various Locations
Jr. AFA Various Locations
Gazetted Establishment
22. CORE Allahabad
• Centrally responsible for all the electrification work
in Indian Railways
• Responsible for several approvals needed by
vendors for supplying their products to railways
23. RDSO Lucknow
• Responsible for development of standards for
materials and products needed by Indian Railways
• Technical investigation, statutory clearances, testing
and providing consultancy services
24. Procurement Process
• Promoter of open market
• Utilizes tender system for procurement
• Tenders are called by the Gazette of Stores
Department (Table showing Power of Gazette)
• Railways uses two methods:
• Procure material through tendering
• Contract out the procurement of material while
contracting out the jobs
26. Tender Committee
Value Stores Consuming Finance
10 L to 30 L Sr. (SMM) Sr. (DEE) Jr. (AFA)
30 L to 1 Cr JAG (Dy. CMM) JAG(Dy.CEE/Sr.DEE
)
Sr. (Sr. AFA)
1 Cr to 2 Cr JAG (Dy. CMM) JAG(Dy.CEE/Sr.DEE
)
JAG(Dy.FA & CAO)
2 Cr to 15 Cr SAG (CMM) SAG (CEDE/CETE) SAG (FA & CAO)
15 Cr to 25 Cr HAG (COS) HAG (CEE) SAG (FA & CAO)
25 Cr to 50 Cr HAG (COS) HAG (CEE) HAG (FA & CAO)
27. Tender Accepting Authority
Value Accepting Authority
10 L to 30 L JAG (Dy. CMM)
30 L to 1 Cr SAG (CMM)
1 Cr to 2 Cr SAG (CMM)
2 Cr to 15 Cr HAG (COS)
15 Cr to 25 Cr AGM
25 Cr to 50 Cr GM
Below 10 L, the tender is accepted by AMM for value up to 2 L. Above
2 L, the SMM becomes the accepting authority.
28. Types of Items Procured
• Stock Items:
• Annual requirement can be predicted
• EAC: Estimated Annual Consumption
• BAVR: Book Average Rate
• Non-Stock Items:
• No consumption pattern
• Procured as and when needed
29. Inventory Control
• Use Selective Inventory Control (ABC Analysis)
• Allows for control of larger share of expenses by
controlling lesser number of items
• Every year a value is set for Annual Consumption
(=EAC * BAVR) for dividing items in ABC
categories.
Category % of no. of items % of annual
consumption value
A 10 70
B 20 20
C 70 10
30. Inventory Control
• For example:
• For SE Railways:
• For Eastern Railways:
Category Annual Consumption
A Rs. 35,00,001 or more
B Rs. 17,50,001 to Rs. 35,00,000
C Rs. 17,50,000 or less
Category Annual Consumption
A Rs. 33,92,001 or more
B Rs. 6,10,001 to Rs. 33,92,000
C1 Rs. 25,001 to Rs. 6,10,000
C2 Rs. 25,000 or less
33. Cable Joints and Terminations:
Among these technologies, the heat shrink technology has
proven to be the most suitable technology, as it is very
durable, is cost effective and takes least time for setting.
34. Cable Joints and Terminations:
What Indian Railway
requires?
• LT - 3.5 core 1.1kV
• Heat Shrink Straight through Jointing Kit for PILC/XLPE Cables
(Size range – 25 mm2 to 400 mm2)
• Heat Shrink Indoor/Outdoor End Termination Kit for PILC/XLPE
Cables (Size range – 70 mm2 to 240 mm2)
• HT – 3 core 11 kV
• Heat Shrink Straight through Jointing Kit for PILC/XLPE Cables
(Size range – 25 mm2 to 400 mm2)
• Heat Shrink Indoor/Outdoor End Termination Kit for PILC/XLPE
Cables (Size range – 70 mm2 to 240 mm2)
35. Cable Joints and Terminations:
• LT - 3.5 core 1.1kV
• Heat Shrink Straight through Jointing Kit for PILC/XLPE Cables
(Size range – 1.5 mm2 to 1000 mm2)
• Heat Shrink Indoor/Outdoor End Termination Kit for PILC/XLPE
Cables (Size range – 4 mm2 to 1000 mm2)
• HT – 3 core 11 kV
• Heat Shrink Straight through Jointing Kit for PILC/XLPE Cables
(Size range – 16 mm2 to 400 mm2)
• Heat Shrink Indoor/Outdoor End Termination Kit for PILC/XLPE
Cables (Size range – 16 mm2 to 400 mm2)
What Raychem can offer?
37. Insulators:
Among these technologies, the polymeric technology has
proven to be the most suitable technology, as it is
lightweight and thus, easy to handle and install
41. Lightning (Surge) Arresters:
Among these technologies, the polymeric technology has
proven to be the most suitable technology, as it is
lightweight and thus, easy to handle and install
43. Lightning (Surge) Arresters:
• Polymeric Surge Arresters from 1.1 KV to 800KV range.
• Porcelain Surge Arresters from 6.6KV to 36KV range.
• Where we lag behind is the CORE approval.
What Raychem can offer?
49. Construction:
• 1825 Kms of Construction planned
• Estimate per unit distance available
• Consumption=(Consumption per unit distance )*
(Total distance)
• BO = Consumption * Price as per estimate
(Exhibit)
50.
51. Data for South Eastern Railways (2493 Rkms):-
Stock Items
P.L. No. Description EAC BAVR (Rs.) Business
Opportunity
(Rs.)
46453544 Stay Arm
Insulator
1225 1291.17 1581683.25
46453562 Post Insulator 16 N/A N/A
46453570 9 Tonne Insulator 310 1325.46 410892.6
46453672 Sectioning
Insulator
50 3591.44 179572
46454767 Bracket Insulator 1275 1170.39 1492247.25
Total 3664395.1
53. Thus, considering just the stock items for S.E. Railways and
Eastern Railways, the total business opportunity is
(Rs.3664395.1+Rs.10474493.17=) Rs. 1,41,38,888.27
N.B.: This opportunity can be extended over to all the zones of
Indian Railways in the ratio of their route kms, but considering the
differences in terrain and geographical conditions, this will provide
us erroneous results. If we neglect this error, the total business
opportunity across the country would be:
Business Opportunity= Rs. (14138888.27/4915)*63028
= Rs. 18,13,11,464
54. Construction:
Products Requirement
for every 25
kms (a) in
units
Requirement
for 1825 kms
(b=a*73) in
units
Price as per
the estimate
(c) in Rupees
per unit
Total business
opportunity
(b*c) in Rupees
25 kV Post Insulator 20 1460 7822 1,14,20,120
25 kV Solid-core/cut-in
Insulator
71 5183 7822 4,05,41,426
25kV Solid-core suspension
Insulator
15 1095 7822 85,65,090
Section Insulator assembly 12 876 32071 2,80,94,196
25 kV Stay Arm Insulator 650 47450 1320 6,26,34,000
25 kV Bracket Insulator 650 47450 1170.39 5,55,35,005.5
Total 20,67,89,837.5
55. Construction:
Across 1825 kms, the no. of TSS and SP can be approximated to
(1825/60=30.41) thirty one. Thus,
Products Requirement
for every TSS
(a) in units
Requirement
for 31 TSS
(a*31) in units
Price as per the
estimate (c) in
Rupees per unit
Total business
opportunity
(b*c) in Rupees
132 kV Lightning Arrestor
Assembly
4 124 1,68,859 2,09,38,516
42 kV Lightning Arrestor
Assembly
7 217 24,808 53,83,336
132 kV Support Insulator 20 620 21,199 1,31,43,380
132 kV Termination with Disc
Insulator
10 310 14,021 43,46,510
25 kV Post Insulator 150 4650 2,474 1,15,04,100
25 kV suspension 9 Tonne
Insulator
20 620 2,954 18,31,480
Total 5,76,47,322
56. Construction:
Taking the distance between consecutive SSP as 15, the total
number of SSP in 1875 kms will be (1875/15=) 125
Thus, total number of SP/SSP= 125 (SSP) + 31 (SP)=156
Since, two 42 kV LA assemblies are required for every SP/SSP;
Thus, no. of LA assemblies required- 312
Price of one LA assembly- Rs. 79606
Thus, business opportunity (79606*312)- Rs. 2,48,37,072
Thus, the total business opportunity available through construction
is Rs. 28,92,74,231.5 across the country.
57. Findings:
• Very less big players in the market
• Present players little myopic.
• Competition:
• Cable Joints and Terminations
• Yamuna Densons
• M-Seal (3M)
• Insulators
• Aditya Birla Insulators
• Goldstone Infratech Limited
• Insulators and Electricals Company (A unit of Hindustan Vidyut
Products Ltd)
• BHEL Ceramics
• Modern Insulator Limited
• Asiatic Electrical and Switchgear Pvt. Ltd.
• Deccan Enterprises Private Limited
60. Cable Joints and Terminations:
• Requirement for Cable Joints and Terminations cannot be
predicted.
• Maximum business via contractors.
• Negligible direct business.
• More requirement in construction than maintenance
• No approvals required.
• Required at the Sub-stations and General purposes.
• Required by Electrical General Department.
• Yamuna Densons – The major competitor.
61. Insulators:
• Direct business possible
• Requirement in both construction as well as maintenance.
• Biggest opportunity among the other three products considered.
• Required by Electrical TRD Department.
• Require RDSO approval.
62. Lightning (Surge) Arresters:
• Direct business possible
• Major requirement for construction.
• Required by Electrical TRD Department.
• Require CORE approval.
63.
64. Approach
contractors
• Follow all the tenders for electrical works
• Approach all contractors participating in the bid
Improve
Visibility
• Provide our latest price list to the demand forming
department of consumption side.
• Get registered on the e-procurement site
• If possible, get into a rate contract with DGS&D
Spread
Awareness
• Presentation in front of gazette
• Explain why we are better than others
For Cable Joints and Terminations:
65. Obtain
Drawings
• Get RDSO vendor approval for manufacturing.
• Obtain required Specifications/ Drawings from RDSO Lucknow.
R&D and
Manufacturing
• Manufacture products as per the specifications
• RDSO provides assistance which can be sought for, if needed.
• Some new specification can also be suggested to RDSO which if
included, provides us an leap over other players.
Get Approvals
• Get RDSO approval for Insulators
• Get CORE approval for Lightning Arresters
For Insulators and LAs:
66. Spread
Awareness
• Presentation in front of gazette
• Explain why we are better than others
Increase
Visibility
• Provide our latest price list to the demand forming
department of consumption side.
• Get registered on the e-procurement site
• If possible, get into a rate contract with DGS&D
Approach
contractors
• Follow all the tenders for electrical works
• Approach all contractors participating in the bid
For Insulators and LAs
(contd.):
67. For Insulators and LAs:
According to a Sr. DEE: “If big companies like yours consider
acquiring or getting into a partnership with the companies which
fabricate products like traction mast, i.e., for which there are no
other players in the market, the business will be really helped.”
So, we can also try moving in this direction.
68.
69. Appendix 1: Important Websites:
• Indian Railways (http://www.indianrailways.gov.in/)
• Can get links to all zonal railways sites from here
• All codes and manuals
(http://www.indianrailways.gov.in/railwayboard/view_section.jsp?lang=0
&id=0,5,377)
• CORE (http://www.core.indianrailways.gov.in/)
• RDSO (http://www.rdso.indianrailways.gov.in/)
• RDSO Vendor Interface
(http://www.rdso.indianrailways.gov.in/view_section.jsp?lang=0&id=0,5)
• RDSO Online Purchase of documents
(http://www.rdsoqa.org/qamd/Vendor_Application_Form_next.aspx)
• E-Procurement (http://www.ireps.gov.in)
• DGS&D (http://www.dgsnd.gov.in/)
70. Appendix 2: List of Contractors:
• R K Electric Automation Limited, Hyderabad.
• Contact - 04023720426
• ECI Engineering & Construction Co. Ltd., Hyderabad.
• Contact - 04024786099
• Ranjit and Company, Ranchi
• Contact - 06512511708
• BCPL Railway Infrastructures Limited/ Bapi Construction Private Limited, Kolkata
• 13B, Bidhan Sarani, Chanda Plaza, 4th Floor
• Contact – 03322198668
• http://www.bcril.com
• Bright Power Projects (I) Pvt. Ltd., Mumbai
• Contact – 02242333777
• Kalicon Electricals, 50, Prince Anwar Shah Road, Kolkata
• Contact – 9339306625
• Bikash Enterprises, 143/C, Dr. Rajendra Road, Kolkata-20
• Contact – 03324314825 / 9830016377
• Mukherjee Commercial Enetrprises, Reckjoiani, Rajarhat, North 24 Paraganas, Kolkata-135
• Contact - 03325737248
• Macintosh Burn Limited, Kolkata, MBL House, DD 18/8, Sector-1, Salt Lake City, Kolkata – 64
• Contact – 03323581418/1420, 03323371654, 03323592645/3068
• www.macintoshburn.com
• Swamina International Private Limited, Plot Y-20, EP Block, Sector –V, Salt Lake, Kolkata – 91
• Contact – 03364502408
• B. P. Construction, Sri Kunj Apartment, Devi Mandap Road, Ratu Road, Ranchi – 834065
• Contact – 06512525232 / 9430144687
