The Indian Railway Catering and Tourism Corporation Ltd
The Indian Railway Catering and Tourism Corporation Limited (IRCTC), a Mini-Ratna Public Sector Enterprise Under Ministry of Railways, was incorporated on 27th September 1999 as an extended arm of the Indian Railways for upgrading and professionalizing the catering and tourism business of Railways over the country.
Due to the onset of the COVID-19 pandemic, being essentially a service sector organization, IRCTC had to bear the brunt of the cascading effect of the series of lock downs imposed by the government to contain the spread of the disease; this resulted in severe restrictions on the movement of domestic as well as international tourists and adversely affected all the businesses lines of the company. However, the company, because of its diversified portfolio of businesses, a competent management and a team of dedicated employees, was able to sail through the period with substantial profits in its books.
During FY 20-21, the Company achieved a total income of Rs 868.69 Crores, as compared to Rs 2342.41 crores in the FY 2019-20. The Company earned a Profit-before-tax of Rs 260.89 crores in 2020-21 as compared to Rs 729.58 crores in 2019-20 and Profit-after- tax of Rs 189.90 crores in 2020-21 as compared to Rs 513.11 crores in 2019-20.
CATERING & HOSPITALITY
IRCTC kept pace with the phased out lifting of the lockdown to fulfil the catering and hospitality needs of the passengers on trains and at railway stations around the country. On trains, the company started the service of Ready To Eat Meals for passengers and at the stations; it gradually opened its catering outlets at stations to serve the passengers with food and beverages during their transit. During this period, IRCTC aggressively promoted e-catering options to the train passengers,by which they were able to order meals of their choice from reputed restaurants through a mobile app. IRCTC, has been mandated by Railway Board for restoration of cooked food service in trains.
IRCTC specializes in mass tourism business with its Special Tourist Trains in the budget segment being patronized by a large number of domestic tourists annually. Besides, the company also operates luxury tourist trains such as the Maharajas’ Express and Golden Chariot for the upscale market and Deluxe Tourist Trains for the mid-segment tourists.
With the easing of Covid restrictions, IRCTC is progressively taking action for its restoration in a phased manner.
TRAVEL AND TOURISM
IRCTC is one of the leading travel and tourism companies in the country and is also a major player in the field of Online Travel Agency (OTA) business with its presence in almost all forms of tourism activities. IRCTC specializes in mass tourism business with its Special Tourist Trains in the budget segment being patronized by a large number of domestic tourists annually. Besides, the company also operates luxury tourist trains such as the Maharajas’ Express and Golden Chariot for the upscale market and Deluxe Tourist Trains for the mid-segment tourists. Despite the ongoing pandemic, IRCTC was among the few travel companies which could do limited domestic tourism business in FY 2020-21, as international travel restrictions were in place. IRCTC has also ventured into the business of cruise booking, bus bookings too. Subsequent to the opening up of travel, IRCTC is looking forward to catch up with the market now.
INTERNET TICKETING
IRCTC increased its share in booking of train tickets over Indian Railways with around 80% of the reserved tickets being booked by its internet ticketing portal www.irctc.co.in. On an average, about 4.80 lakh tickets were booked daily through IRCTC’s website and an app, during FY2020-21 despite, passenger train services were severely hit during the first and second quarter of FY 2020-21. During Q3 of 2021-22, bookings had increased upto 8.5 Lakh per day on an average.
RAIL NEER PACKAGED DRINKING WATER
The trusted brand Rail Neer, packaged drinking water, is exclusively sold in trains and stalls on Railway Stations. Till the end of FY 2020-21, the company had 14 Rail Neer plants across the country and recorded a production of 7.53 Crore bottles. Another Rail Neer plant is now operational at Una in Himachal Pradesh.
COUNTRY-WIDE WELFARE ACTIVITIES DURING THE PANDEMIC
IRCTC during the onset of the pandemic played a pivotal role in assisting Ministry of Railways and Ministry of Home Affairs in provision of on-board catering services in 4,185 Shramik Special Trains, which were operated by the authorities for the movement of migrant workers, pilgrims, tourists, students and other person, who were stranded. IRCTC had supplied meals, along with Rail Neer drinking water to the passengers of the Shramik Special Trains. A total of 1.74cr. meals in 4184 Shramik Special Trains were provided by IRCTC. During this period of lockdown, as a humanitarian gesture, IRCTC distributed community meals for the poor and distressed people with NGOs, RPF and other associations. In all, IRCTC distributed over 21 lakh community meals from 35 kitchens and over 1 lakh Rail Neer bottles across the country from March to May 2020.
(A marketing initiative by Open Avenues)
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