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DMRC

DMRC

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DMRC ABOUT THE COMPANY

The Delhi Metro is a rapid transit system servingDelhi, Gurgaon and Noida in the National CapitalRegion of India.

Established in 1995

Joint venture of The Government of India and theGovernment of Delhi

Managing Director - E. Sreedharan

Physical construction work on the Delhi Metrostarted on October 1, 1998

The first section, on the Red Line, opened in 2002

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WHYDMRCCAMEUP ?

POPULATIONINCREASE

TRAFFICCONGESTION

EXISTING SYSTEMFAILURE

UNRELIABLE SERVICE

LONG WAITING TIMES

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PRODUCTS

The main stay is service.

The network that the Metro has achieved is

most commendable.

Integration with other modes of public

transport.

Smart cards and Tourist cards.

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MARKETING AND INDUSTRY ANALYSIS

SWOT

STRENGTHS- saves on time,air conditioned,environment friendly

WEAKNESS-MINIMUM FARE IS HIGH,DIFFICULTIES IN ACQUIRING LAND,HIGH

DEVELOPMENT COST OPPORTUNITIES-EXPANDING RIDERSHIP,REVENUE FROM ADVERTISING,NEXT

METRO LINE WILL BE CHEAPER

THREATS-SECURITY THREATS,COST OVERRUNS MAY LEAD TO RIDERSHIP FALL

COMPETITORS ANALYSIS

NO COMPETITOR WHICH PROVIDES AN IDENTICAL SERVICE,BUSES ARE THECLOSEST COMPETITORS

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Porters five forces

RIVALS IN THE INDUSTRY No existing rivals,buses are the closest competitors

THREAT OF SUBSTITUTES No identical substitute but presence of close substitutes

BUYERS BARGAINING POWER The company is a monopoly so the buyers have no say in the pricing of

services

SUPPLIERS BARGAINING POWER Relatively a lot of bargaining power rests with them but it isintabsolute

BARRIERS TO ENTRY

Not feasible to have two metros running parallel in the city.

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Sources of FUN ING

Cost Financed By Phase I Phase II

1) Equity (50% each by GOI

& GNCTD)

30% 30%

2) Long Term Debt (OECF,

Japan) @ 3% p.a. or less

60% 56%

3) Revenues From Property

Development

7% 10%

4) Subordinate Debt 3% 4%

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Achievements of DMRC

In 2007 DM claimed to be one of only 5 metro systemin world that operated at profit without governmentsubsidy.

This was actually possible by keeping maintenance costminimum and harnessing additional revenue fromadvertisement & property development

It also generates revenue by leasing out its trains &stations for shooting

Earning of DMRC from advertisementRs 2 crore

Earning from film shooting is Rs 1 lakh for every hourbesides security deposit and insurance

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The Delhi MRTS is essentially a "social" sector project, whose

benefits will pervade wide sections of economy. The modified firstphase will generate substantial benefits to the economy by the wayof:

Time saving for commuters Reliable and safe journey

Reduction in atmospheric pollution

Reduction in accident

Reduced fuel consumption

Reduced vehicle operating costs Increase in the average speed of road vehicles

Improvement in the quality of life

More attractive city for economic investment and growth

Economic benefits:

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Liquidity Ratio

Current Ratio = 2536.89/(11427.76+237.41)=0.217Quick Ratio = (2536.89-32.92-

366.03)/(11427.76+237.41)=0.1833

Other RatioReturn on Assets = 41.32/(2536.89+2582.87)*2=0.0162

Debt to Equity ratio= (11427.78+237.41)/1914.36=6.094

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THANK YOU