Kavitha File 2

A Report on
“ORGANIZATION STUDY AT RAIL WHEEL FACTORY”

BY
KAVITHA R
USN: 4VV21BA044
Submitted To
VISVESVARAYA TECHNOLOGICAL UNIVERSITY
In partial fulfilment of Post Graduate Degree
MASTER OF BUSINESS ADMINISTRATION
Under the guidance of

INTERNAL GUIDE EXTERNAL GUIDE
Dr. P S V BALAJI RAO Ms. SAGEETHA
Professor & Head, Department Chief Office Superintendent
Rail Wheel Factory
of Business Administration,
Banglore
Vidyavardhaka College of Engineering, Mysuru.
Vidyavardhaka Sangha (R), Mysuru

VIDYAVARDHAKA COLLEGE OF ENGINEERING
(Autonomous Institute Affiliated to VTU Belagavi)
Department Of Business Administration
Accredited by NAAC with ‘A’ Grade
PB No 206, Gokulam III Stage, Mysuru - 570 002,
Karnataka
2021-2023
DECLARATION
I KAVITHA R hereby declare that this organization study conducted at “RAIL WHEEL
FACTORY” is record of independent work carried out by me under the guidance of Dr.
PSV BALAJI RAO Department of Business Administration.
I also declare that this organization study is towards the partial of the university regulation
for the award of degree of Master of Business Administration by Visvesvaraya
technological university, Belagavi
I have undergone an organization study for a period of four weeks. I further declare that
this organization study is based on the original study undertaken by me and not been
submitted for the award of any degree from any other University/Institution.
DISCLAIMER
The enclosed document is the outcome of a student academic assignment and does not
represent the opinions / views of the university or the institution or the department or any
other individuals referenced or acknowledged within the document. The data and
information studied and presented in this report have been accessed in good faith from
secondary sources / web sources / public domain, including the organization’s website
solely and exclusively for academic purposes, without any consent / permission, express
or implied, from the organization concerned. The author makes no representation of any
kind regarding the accuracy, adequacy, validity, reliability, availability or completeness of
any data / information here in contained
Place: Mysuru
Date:
Kavitha R
4VV21BA044
RAIL WHEEL FACTORY
ACKNOWLEDGEMENT
An endeavor is successful only when it is carried out under proper guidance and blessings.
I would like to thank few people who helped me in carrying this work by lending valuable
time and assistance.
I express my immense gratitude to Dr. B. Sadashive Gowda, Principal, Vidyavardhaka

College of Engineering, Mysore, for providing an opportunity to enrich my knowledge.
I express my sincere gratitude to Dr. PSV Balaji Rao, Head of Department of Master of
Business Administration for his support and guidance.
I am extremely grateful to Dr. PSV Balaji Rao Department of Master of Business

Administration, Mysore, for his encouragement, effective guidance and valuable
suggestions. I am also thankful to all other lectures in our department and students of my
class for their support and suggestions.
KAVITHA R
USN:4VV21BA044
Department of MBA Vidyavadhaka College of Engineering, Mysuru

TABLE OF CONTENTS
Sl. No Particulars Page no.
Executive summary 3
CHAPTER 1 Industry profile 4-8
Company profile 9
Background & History 10-11
Nature of Business 12
Vision, Mission, Quality policy 13
CHAPTER 2 Workflow Model 14-17
Products & Services profile 18
Ownership pattern 20
Achievements and Awards 20-21
Future Growth and Prospects 21-23
McKinsey’s 7s Framework and Porter’s Five

CHAPTER 3 24-29
Force Model
CHAPTER 4 SWOC Analysis 30-31
CHAPTER 5 Analysis of Financial Statements 32-43
CHAPTER 6 Learning Experience 44
Bibliography 45
LIST OF TABLE/GRAPHS/FIGURES
Sl.NO Particulars Page no.
Graph 5.1 Net profit Ratio 36
Graph 5.2 Return on Capital Employed 37
Graph 5.3 Return on Sales 38
Graph 5.4 Current Ratio 39
Graph 5.5 Quick Ration 40
Graph 5.6 Debtors to Equity Ratio 41
Graph 5.7 Interest Caverge Ratio 42
Table 1.1 Industry Profile 5
Table 2.1 Land Area 10
Table 2.2 Ownership Pattern 20
Table 5.1 Balance sheet 34
Table 5.2 Profit and Loss 34
Table 5.3 Cashflow Statement 35
Table 5.4 Rail Way Revenue 43
Figure 1.1 Inside the Factory View 4
Figure 1.2 Recent trends & Innovation 6
Figure 2.1 Railway Wheel Factory 8
Figure 2.2 Company View 10
Figure 2.3 General Department 14
Figure 2.4 Store Department 14
Figure 2.5 Account Department 15

RAIL WHEEL FACTORY
Figure 2.6 Personnel Department 15
Figure 2.7 Civil Department 16
Figure 2.8 Electrical Department 16
Figure 2.9 Medical Department 17
Figure 2.10 Vigilance Department 17
Figure 2.11 Product Profile 18
Figure 2.12 Axle 18
Figure 2.13 Wheel 19
Figure 3.1 McKinney’s 7s Frame Work model 24
Figure 3.2 Structure 25
Figure 3.3 Porters five force model 28
Figure 4.1 Swoc Analysis 30

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RAIL WHEEL FACTORY
EXECUTIVE SUMMARY
The MBA course offered by Visvesvaraya Technological University Belagavi has a syllabus which
requires its MBA student to undertake an internship with any of the business organization for a
period of four weeks after the second semester.
I have carried out my internship on organization study of RAIL WHEEL FACTORY, that is mainly
into production of rail wheels and axles. It possesses good information about the market and knows
a greatdeal about the common attributes of the targeted customers.
This study gives an insight about Mckinsey’s 7s Framework, Porter’s Five Force Model, SWOT
analysis with respect to RAIL WHEEL FACTORY. It also gives the information about the
company future growth and prospects. Financial statements of the company are also attached with
the report to give insight on the total fund allocation done by the company during the following
years.
Rail Wheel Factory, Yelahanka (RWF) (also known as Wheel and Axle Plant) is a manufacturing
unit of Indian Railways producing wheels, axles and wheel sets of railroad wagons, coaches and
locomotives for the use of Indian Railways and overseas customers is situated at Yelahanka,
Bangalore in the Indian state of Karnataka It has a planned capacity to manufacture of about 70,000
wheels of different sizes, 23,000 axles and to assemble 23,000-wheel sets. It employs over 2000
employees in the company.

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RAIL WHEEL FACTORY
CHAPTER-1
INDUSTRY PROFILE
INTRODUCTION TO THE INDUSTRY
Rail Wheel Factory (RWF) at Yelahanka, Bangalore is a premier manufacturing unit of Indian
Railways, which is engaged in the production of wheels, axles and wheel sets of railroad wagons,
coaches and locomotives for the use of the Indian Railways and some overseas customers. It was
commissioned in 1984 to manufacture wheels and axles for the Indian Railways.
Fig.1.1 Inside the factory view
The plant has many unique and modern features incorporating state of art development in
technology and designs. For example, the civil engineering structures are planned on with modern
architectural concepts; the cast steel technology used in the manufacture of wheels uses the scrap
steel collected from Railways own workshops as raw material, the end products (the wheels, axles
and wheel sets) are precisely engineered with little scrap for human errors; rigid quality control
and latest MIS for production planning and control.
It has a planned capacity to manufacture 70,000 wheels of different sizes, 23,000 axles and to
assemble 23,000-wheel sets. It employs over 2000 personnel and has an annual turnover of about
82 crores.It is an ISO 9001: 2000 and ISO 14001 certified unit for its business processes. It has
claims to the best productivity figures among comparable industries. It has a very high level of
automation in its manufacturing facilities and has an enviable information technology to set up.
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RAIL WHEEL FACTORY
INDUSTRY PROFILE
RAIL WHEEL FACTORY
TYPE Government owned corporation
INDUSTRY Wheels, Coaches and locomotives
FOUNDED 1984
HEADQUATERS Yelahanka, Bangalore India
AREA SERVED India
PRODUCT Wheels for all Railway Wagons of Indian
OWNER Government of India
Table 1.1 Industry Profile
Job scope involves the employees' responsibilities and workload. It provides fulfilment when the
workload is rationally decided among all the employees. Diversity to some extent leads to
satisfaction. Excessive variety creates confusion and also the repetitive tasks without any variety
cause monotony and dissatisfaction.

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RAIL WHEEL FACTORY
Autonomy and work freedom act as a source of satisfaction among employees' dislike that every
step and action of the work is being checked and determined by the superior. Clarity and
transparency in the division of work focuses on the reductio on ambiguity and conflict in the
working environment and it minimizes confusion and job dissatisfaction.
OVERVIEW OF INDUSTRY
The global market for rail wheels has been sustained from 4.5-5 million in the past 10 years. The
production of wheels undergoes forging and casting process. The key strategy of RWF is to develop
forged wheel with cast wheels with respect to thermal and mechanical properties. Keeping this in
view, a huge bound has been achieved by RWF by producing micro alloyed wheels which can be
used on a regular basis, confirmed by the Railway Board in 2002. In a span of time a design center
will be coming up in RWF, which will then become the nodal center of manufacturing and
production of cast wheels. Therefore, it has the capacity to hold the maximum part of the market
in African and American.
RECENT TRENDS IN INDUSTRY
Fig.1.2 Recent Trends and innovationts
CHALLENGES IN INDUSTRY
Detection and rectification of rail defects are major issues for all rail players around the world.
Some of the defects include worn out rails, weld problems, internal defects, corrugations and
rolling contact fatigue (RCF) initiated problems such as surface cracks, head checks, squats,
spalling and shelling. If undetected and/or untreated these can lead to rail breaks and derailment.

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RAIL WHEEL FACTORY
CURRENT ISSUES IN INDUSTRY
• Strengthening the attractiveness of the railways.
-Ensuring safety, health and hygiene on board and around the trains.
-Improving passengers' connectivity and comfort
• Digitalizing rail transport. To increase line capacity
-To increase line capacity
-To improve train availability while lowering costs.
• Designing ever more virtuous trains. -
Development of new modes of electrical energy storage to reduce the consumption of diesel fuel,
particularly on non-electrified sections of track. Over the past 10 years, thanks in particular to the
boom in e-mobility in sectors such as the automobile or heavy goods vehicle industries, the
performance of batteries has significantly improved in terms of power and efficiency.
Then new fuels with a promising carbon footprint compared to fossil fuels have moved from
experimentation to commercialization, such as Alstom’s Hydrogen lint train, or prototypes running
on liquefied natural gas being tested in Spain.

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RAIL WHEEL FACTORY
CHAPTER-2
ORGANIZATION PROFILE
INTRODUCTION ABOUT COMPANY
Fig.2.1 Rail Wheel Factory
The Rail Wheel factory is one of the greatest inventions of humanity and has led to the present
mass transportation system through railways for both passengers as well as for goods all over the
world. The RWF was conceived in 1978 and built with world bank assistance of about 150 crores.
The foundation stone for the wheel unit of the Rail Wheel Factory at Bangalore was laid by the
railway minister Shri-Kamatapathi Tripathi in October 1980. The late Prime Minister Indra Gandhi
inaugurated the plan on the 15th of September 1984.
Rail Wheel Factory is in Yelahanka, Bangalore, which is the political and industrial capital of the
state of Karnataka. The plant is situated 16km from the city Center. It is a state-of-the-art plant,
meeting bulk of the requirements of wheels, axles and wheel. Sets for the India Railways. The
spare capacity available is profitably utilized to meet the domestic demands for non-railway
customers and experts. RWF strives to build successful and lasting relationships with its customers
by consistently exceeding their expectations. Customer focus and quality remain our watchwords.
The plant is certified to ISO-9001:2000 and ISO-14001:1994 standards by M/s BYQL. It is also
certified to confirm to the Quality Assurance Programmed of Association of American Railroads
(AAR) in respect of manufacturing of new wheel and axles.

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RAIL WHEEL FACTORY
All products are subjected to stage and final inspection, starting from the chemical composition of
the molten metal till the final inspection. This includes micro/macro properties of the material,
magnetic particle testing, ultrasonic testing hardness, webpage dimensional parameters, surface
finish etc.
COMPANY PROFILE
unit of Indian Railways, producing wheels, axles and wheel sets of railroad wagons, coaches and
Bangalore in the Indian state of Karnataka.
The unit was started by C. K. Jaffer Sharief, the then Railway Minister, who got this project to
Bangalore. It was commissioned in 1984 to manufacture wheels and axles for the Indian Railways.
This factory uses cast steel technology in the manufacturing of wheels which utilizes scrap steel
collected from Railways' own workshops as raw material. The products (Wheels, Axlesand wheel
sets) are engineered with little scope for human errors.
It has a planned capacity to manufacture about 70,000 wheels of different sizes, 23,000 axles and
to assemble 23,000-wheel sets. It employs over 2000 personnel and has an annual turnover of about
82 crores. It is an ISO 9001:2000 and ISO 14001 certified unit for its business processes. It was
the first unit of Indian Railways to receive ISO 9001:2008 accreditation.
Location
The organization is located 16km away from Bangalore city in Yelahanka. The organization is
connected by road and rail, the nearest railway station being the Yelahanka station.
Management Railways
Initially the BODs in England had appointed an agent in India for supervision and control over the
companies. In 1855 Railways were placed under PW Din. Ultimately the railways board was
organized in 1850. The separate ministry of railways was formed after independence.
Land Area

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RAIL WHEEL FACTORY
Plant Area Construction 77.30
Building area West part 22.11

East part 13.36
Table 2.1 Land Area
Founder of the Business
Till early 1980s Indian Railways was importing about 55% of requirement of wheels and axles.
Indigenous capacity was available only at Tata Iron & Steel Company [TISCO] and Durgapur Steel
Plant [DSP]. The TISCO plant was technically not capable of meeting the changing requirement
of wheels and axles for the new designs of rolling stock and production was discontinued. DSP
was only able to partially meet Indian Railways’ needs. The cost of imports was high with prices
rising in the world market. The financing of imports, delays in supplies and limited availability of
foreign exchange adversely affected wagon production and rolling stock maintenance. It was in
this context that in the early 1970s the Railway Ministry felt the necessity for setting up a new
specialized Production Unit for manufacture of rolling stock wheels and axles as import substitute.
The ultimate objective was that DSP and the Rail Wheel Factory [RWF, formerly Wheel & Axle
Plant] should be able to totally meet Indian Railways requirement for standard wheels and axles so
that their import could be stopped.
BACKGROUND
Fig2.2 Company view
Till early 1980s Indian Railways was importing about 55% of requirement of wheels and axles.
Indigenous capacity was available only at Tata Iron & Steel Company [TISCO] and Durgapur Steel

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RAIL WHEEL FACTORY
Plant [DSP]. The TISCO plant was technically not capable of meeting the changing requirement
of wheels and axles for the new designs of rolling stock and production was discontinued. DSP
was only able to partially meet Indian Railways’ needs. The cost of imports was high with prices
rising in the world market. The financing of imports, delays in supplies and limited availability of
foreign exchange adversely affected wagon production and rolling stock maintenance. It was in
this context that in the early 1970s the Railway Ministry felt the necessity for setting up a new
specialized Production Unit for manufacture of rolling stock wheels and axles as import substitute.
The ultimate objective was that DSP and the Rail Wheel Factory [The Wheel and Axle Plant]
should be able to totally meet Indian Railways requirement for standard wheels and axles so that
their import could be stopped.
An extensive study was made of the latest technology and equipment available globally, the
possibility of collaboration and foreign exchange requirement. Based on this study the Rail Wheel
Factory project was conceived in the mid-70s with IR deciding to:
Adopt the cast wheel technology developed by M/S Griffin Wheel CO., USA for wheel
manufacture. American Railroads have been using cast wheels for freight operations while
European Railways use forged wheels. Adoption of cast wheel technology was found more suitable
as the productivity of the plant is higher and cost of production lower as compared to forged wheels.
The net saving in foreign exchange on wheel imports were estimated at Rs.8 Crores per annum.
Undertake axle forging on special purpose Long Forging Machine followed by heat treatment
furnaces with automated conveyors for movement of axles.
Provide axle-machining facilities incorporating profile copying lathes, special purpose end
machining equipment and a wheel set assembly complex with integrated engineering for handling
and movement of axles.
The Planning Commission sanctioned the Rail Wheel Factory Plant project in 1978 at a cost of
Rs.146 Crores. Trial production commenced during 1983. Late Smt. Indira Gandhi, the then Prime
Minister of India formally commissioned the plant on 15 September 1984. To reinforce the fact
that we belong to the Indian Railways Family and to display our commitment to change with times,
the factory was renamed as RAIL WHEEL FACTORY on 15 February 2003.
An extensive study was made of the latest technology and equipment available globally, the
possibility of collaboration and foreign exchange requirement. Based on this study the Rail
Wheel Factory project was conceived in the mid-70s with IR deciding to:
Adopt the cast wheel technology developed by M/S Griffin Wheel CO., USA for wheel
manufacture. American Railroads have been using cast wheels for freight operations while
European Railways use forged wheels. Adoption of cast wheel technology was found more suitable
as the productivity of the plant is higher and cost of production lower as compared to forged wheels.
The net saving in foreign exchange on wheel imports were estimated at Rs.8 Crores per annum.
Undertake axle forging on special purpose Long Forging Machine followed by heat treatment

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RAIL WHEEL FACTORY
Provide axle-machining facilities incorporating profile copying lathes, special purpose end
machining equipment and a wheel set assembly complex with integrated engineering for handling
and movement of axles.
The Planning Commission sanctioned the Rail Wheel Factory Plant project in 1978 at a cost of
Rs.146 Crores. Trial production commenced during 1983. Late Smt. Indira Gandhi, the then Prime
Minister of India formally commissioned the plant on 15 September 1984. To reinforce the fact
that we belong to the Indian Railways Family and to display our commitment to change with times,
the factory was renamed as RAIL WHEEL FACTORY on 15 February 2003.
NATURE OF THE BUSINESS
Rail wheel factory produces cast wheels of 36(900mm) to 43(1100mm) diameters to AAR M- 208,
(class A, B, C) and IRS R 62 specifications, forged steel and axle 4.5inch (120mm) to 6.5inch
(175mm) journal diameters, to AAR M 101 and R16 AND R-43 specifications and assembled
wheel sets from customer supplied or rail wheel factory made wheels and axles.
Rail wheel factory is a manufacturing unit of Indian railways, producing wheels, axles, and wheel
set of coaches, railroad wagons and locomotives for the use of Indian railways.
The rail wheel factory was started by CK Jaffer Sherriff, the railway minister who got this project
to Bangalore. It was commissioned in 1978 to manufacture wheel and axles for the Indian railways.
Wheel and axle plan largely meets the Indian railways present requirement of wheels, axles, and
wheel sets. Till the early 1980s they were a lot dependent on import for meeting their requirement
of wheel and axles.
Wheel and axles plant is a step towards building self-capability in production of railways wheel
and axles. An extensive study was made of the latest technology and equipment existing globally,
and the possibility of collaboration. Facilities were added to the plant like machine followed by
heat treatment furnaces with computerized conveyors for movement of axles, machining services
incorporating lathes, machinery equipment and a wheel set to profitably utilize the infrastructure
to meet the domestic demands for non-railways customers.
The rail wheel factory builds successful and long-lasting relationships with its customers by every
time meeting their expectation. And quality remains the watchwords.
The rail wheel factory used in cast wheel technology developed by M/S Griffin wheel CO. USA.
In this technology used by manufacturing of wheel which utilizes scrap steel collected from
railways own workshops as raw material. It started producing in 1984 and the plant has the capacity
to manufacture about 70,000-wheel sets, it has more than 2500 employees and has annual turnover
of about 85 crores.

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RAIL WHEEL FACTORY
All products are subjected to step and final inspection starting from the chemical composition of
the molten metal till the inspection. This includes micro/macro properties of the material &
magnetic particle testing, hardness, ultrasonic testing, dimensional parameters, surface finish etc.
All manufactured products are accompanied by quality assurance certified and take a guarantee of
one year from shipment. RWF has the full capability to plan and manufacture any size of wheel,
wheel sets and axles to suit individual customers' special requirements.
RWF has been re-certified by M/S Indian Register Quality System, with latest version of Integrated
Management System (IMS). Quality management system confronting to the standard ISO
9001:2008 is an international quality management of wheels axles and wheel sets, specifies
environment management standards of ISO 14001:2004 occupational Health and Safety
Management System to the standard of OHSAS 18001:2007 and Association of America Railroads
(AAR) are implemented. Accreditation for all activities related to manufacturing of wheel, wheel
sets and axle support activities such as canteen, hospital, Kendraya Vidyalaya, and maintenance
transportation in township.
VISION, MISSION, QUALITY POLICY
VISION
To become renowned global leader in the business of developing and manufacturing cast steel
railroad wheel, precision forged axles and immaculate assembled wheel sets.
MISION
• To emerge as a unique global Centre for design, development and manufacturing excellence of
our products through continuous improvement by upgrading our quality, reliability,
dependability and value addition in a deliberate and proactive manner.
• To perennially endeavor to sustain excellence in customer satisfaction
• To perennially endeavor to sustain excellence in customer satisfaction by consistently
exceeding their expectation. To develop our human capital by constant enhancement. To
develop our human capital by constant enhancement of their technical, managerial and
innovative capabilities.
• To promote ethical business practices and values in the true spirit of corporate governance
To become a growth engine for the development of the region.
QUALITY POLICY
• To sustain our excellence in quality in the manufacturing of Wheel, Axels and Wheel sets.
• To delight our customer
• To continually improve

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RAIL WHEEL FACTORY
WORKFLOW MODEL
General Department
Fig.2.3 General Department.
Store Department
Fig.2.4 Store Department

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RAIL WHEEL FACTORY
Account Department
Fig.2.5 Account Department
Personnel Department
Fig.2.6 Personnel Department.

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RAIL WHEEL FACTORY
Civil Department
Fig.2.7 Civil Department.
Electrical Department
Fig.2.8 Electrical Department.

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RAIL WHEEL FACTORY
MEDICAL DEPARTMENT
Fig.2.9 Medical Department
Vigilance Department
Fig.2.10 Vigilance Department

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RAIL WHEEL FACTORY
PRODUCT PROFILE
Fig.2.11 Product Profile.
The unit was started by C. K. Jaffer Sharief, the then Railway Minister, who got this project to
Bangalore. It was commissioned in 1984 to manufacture wheels and axles for the Indian Railways.
This factory uses cast steel technology in the manufacturing of wheels which utilizes scrap steel
collected from Railways' own workshops as raw material. The products (Wheels, Axles and wheel
sets) are engineered with little scope for human errors. It has a planned capacity to manufacture
about 70,000 wheels of different sizes, 23,000 axles and to assemble 23,000-wheel sets. It employs
over 2000 personnel and has an annual turnover of about 82 crores. It is an ISO 9001:2000 and
ISO 14001 certified unit for its business processes. It was the first unit of Indian Railways to receive
ISO 9001:2008 accreditation.
Axle
Fig.2.12 Axle

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RAIL WHEEL FACTORY
An axle or axle tree is a central shaft for a rotating wheel or gear. On wheeled vehicles, the axle
may be fixed to the wheels, rotating with them, or fixed to the vehicle, with the wheels rotating
around the axle. In the former case, bearings or bushings are provided at the mounting points where
the axle is supported. In the latter case, a bearing or bushing sits inside a central hole in the wheel
to allow the wheel or gear to rotate around the axle. Sometimes, especially on bicycles, the latter
type of axle is referred to as a spindle.
ISO 14001-
ISO 14001 defines criteria for an EMS. It does not state requirements for environmental
performance but rather maps out a framework that a company or organization can follow to set up
an effective EMS. It can be used by any organization that wants to improve resource efficiency,
reduce waste, and reduce costs. Using ISO 14001 can provide assurance to company management
and employees as well as external stakeholders that environmental impact is being measured and
improved. ISO 14001 can also be integrated with other management functions and assists
companies in meeting their environmental and economic goals.
ISO 14001, like other ISO 14000 standards, is voluntary, with its main aim to assist companies in
continually improving their environmental performance and complying with any applicable
legislation. The organization sets its own targets and performance measures, and the standard
highlights what an organization needs to do to meet those goals, and to monitor and measure the
situation. The standard does not focus on measures and goals of environmental performance, but
of the organization. The standard can be applied to a variety of levels in the business, from the
organizational level down to the product and service level.
Wheel
Fig.2.13 Wheel
The wheel is a simple machine consisting of a wheel attached to a smaller axle so that these two
parts rotate together in which a force is transferred from one to the other. The wheel and axle can
be viewed as a version of the lever, with a drive force applied tangentially to the perimeter of the
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RAIL WHEEL FACTORY
wheel and a load force applied to the axle, respectively, that is balanced around the hinge which is
the fulcrum.
ISO9000
The ISO 9000 family of quality management systems (QMS) is a set of standards that helps
organizations ensure they meet customer and other stakeholder needs within statutory and
regulatory requirements related to a product or service.ISO9000 deals with the fundamentals of
QMS, including the seven quality management principles that underlie the family of standards.
ISO 9001 deals with the requirements that organizations wishing to meet the standard must fulfill.
Third-party certification bodies provide independent confirmation that organizations meet the
requirements of ISO 9001. Over one million organizations worldwide are independently certified,
making ISO 9001 one of the most widely used management tools in the world today. However, the
ISO certification process has been criticized as being wasteful and not being useful for all
organizations.
OWNERSHIP PATTERN
Type Government Organization
Industry Wheels, Coaches and Locomotives
Founded 1984
Headquarters Yelahanka, Bangalore, India
Owner Indian Railways

Table.2.2 Ownership Pattern
AWARDS AND ACHIEVEMENTS
• ISO 14001-1996 for Environment Management System.

• AAR for Quality Management System.
• Occupational Health and Safety Assessment Series OHSAS 1001-1999
• December 1995 first 915 mm (about 3 ft) die Wagon Wheel set produced, and the first
consignment of wheel and axles exported to USA 9ch-36 wheels and f-class axles

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RAIL WHEEL FACTORY
• Genentech Environment Award in the year 2003
• Flaxman Rao Kirloskar Merit Certificate for Best foundry in 2003.
• Golden Peacock Award for Corporate Social Responsibility in the year 2004.
• In June 2002, Golden Peacock Environment Award
• On Feb 2003, Golden Peacock Award for Innovative Products
• 2004, Rajiv Gandhi Parisar- Prashanhti cash Award of Rs.1000000 EMS
• 2005, Golden Peacock Award for Quality and Safety
• 2008, Golden Peacock Award for Industrial Health and Safety
• 2011, Rail Mantra Rajbanshi Running Trophy
• 2013, International Star for Quality (ISAQ) Award in Planning Category. 2013, Golden
Peacock Award on Special Commendation for Sustainability
• 2014, Star Award for Sustainability.
• RWF is certified with Five ‘S’ Workplace Management System.
• RWF Awarded with Greenco Certificate during the GreenCo summit.
• RWF won the Golden Peacock Eco-Innovative Award –2021
• RF was awarded as best performing Production Unit of Indian Railways on Environment
Management for the year 2018-19.
• RWF has been recognized as ‘Factory of the future 2022’ by Economic Times Edge & The
• RWF has achieved daily out turn of 402 Wheelsets assembly
FUTURE GROWTH AND PROSPECT
Global Rail Wheel and Axle Market to Reach $4 Billion by 2026
Amid the COVID-19 crisis, the global market for Rail Wheel and Axle estimated at
US$3Billion in the year 2022, is projected to reach a revised size of US$4 Billion by 2026,
growing at a CAGR of 4.4% over the analysis period.
Solid Axles, one of the segments analyzed in the report, is projected to record 4.6% CAGR and
reach US$3.3 Billion by the end of the analysis period. After a thorough analysis of the business
implications of the pandemic and its induced economic crisis, growth in the Hollow Axles segment
is readjusted to a revised 3.8% CAGR for the next 7-year period.

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RAIL WHEEL FACTORY
The U.S. Market is Estimated at $570.8 Million in 2022, While China is Forecast to Reach $878
Million by 2026
The Rail Wheel and Axle market in the U.S. is estimated at US$570.8 Million in the year 2022.
China, the world's second largest economy, is forecast to reach a projected market size of US$878
Million by the year 2026 trailing a CAGR of 6% over the analysis period. Among the other
noteworthy geographic markets are Japan and Canada, each forecast to grow at 2.9% and 3.8%
respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately
3.3% CAGR.
The market is expected to witness healthy long-term growth on account of rising locomotive
production, technological advancements and efforts to modernize rail infrastructure. The market is
projected to grow supported by the increase in locomotive and bogie production in both developed
and developing countries, mainly in China, Russia, Mexico and Germany.
The market is also favored by expansion of the railway network in less developed and developing
regions for connecting rural areas. While expanding the network of OEMs presents new growth
avenues, technological progress related to trains and their networks is expected to bolster the
market growth.
Various companies in the market are investing in R&D projects for producing lightweight materials
for axles and wheels of short-distance, passenger and freight trains. OEMs in the railway industry
are adopting advanced technology like big data analytics for bolstering their service offerings.
The global market for rail wheels and axles is poised to be catalyzed by increasing population
across metropolitan cities and rising number of office goers, mainly in emerging economies.
Railways are anticipated to remain an integral component of the public transportation system and
estimated to hold considerable significance owing to rising urbanization and public density along
with evolving travel behavior,
The increasing use of rail network for commuting is likely to drive governments to modernize the
infrastructure for faster passenger transport. The market is bound to receive a major impetus from
government efforts to establish smart cities along with smart railway infrastructure. Investments in
largescale public transport infrastructure including bullet trains and high-speed trains are expected
to make public transport easier and faster.
The increasing production of bullet and high-speed trains is slated to push the demand for rail
wheels and axles. The market growth is further bolstered by ongoing efforts to improve the energy
efficiency of railway infrastructure along with electrification of existing lines, mainly across
developing countries like China and India.
Expansion of existing rail network lines, especially in Europe, China and India including the One
Belt One Road project is likely to drive the market growth. Emerging countries like Japan, China
and South Korea are expected to shift towards magnetic rail systems for accelerating train journey
and reducing maintenance costs due to lack of frictional parts.

22
RAIL WHEEL FACTORY
GROWTH OF THE COMPANY
Having been established itself as a reliable source of high-quality wheels, axles and wheel sets for
meeting the requirement of Indian railways, RWF is presently on the trust world of a major effect
to diversify its customer's base. Concerted efforts are focused to explore the expert market for
wheels and axles and established RWF as major supplier in global market. These efforts are being
complemented by sustainable initiatives in augmenting the capacity of RWF by replacement
aggradation of existing machinery.
There is also consistency to widen our product range by the development of new types of wheels
and axles. Setting up of the design, development and testing center is a major effort in this direction
which empowers RWF to tackle future needs.
In order to grow furthermore it is planning mainly on:
• Adopting the cast wheel technology developed by M/S Griffin wheel CO. USA for wheel
manufacturing.
• Undertake axle forging on special purpose long forging machine followed by heat treatment
• Provide axle machine facilities incorporating profile copying lathes, special purpose end
machining equipment and a wheel set assembly complex with integrated engineering for
handling and movement of axles.
• The global rail wheel market is projected to grow from $3,772.3 million in 2020 to $4,869.1
million in 2025 at a CAGR of 5.2% in the 2020-2025 period.

23
RAIL WHEEL FACTORY
CHAPTER-3
MCKINSEY 7S FRAMEWORK AND PORTER`S FIVE FORCE MODEL
MCKINSEY 7S FRAMEWORK
Introduction
The McKinsey 7-S Model is a change framework based on a company's organizational design. It
aims to depict how change leaders can effectively manage organizational change by strategizing
around the interactions of seven key elements: structure, strategy, system, shared values, skill,
style, and staff
Fig 3.1 MCKINSEY 7S Framework Model
McKinsey 7S Framework with reference to the Organization
1.Structure
Structure or organizational structure refers to a clear chain of command to avoid chaos & confusion.
Structure is a simple yet crucial element as it creates a sense of employee accountability within the
organization.

24
RAIL WHEEL FACTORY
Fig 3.2 Structure
2.System
Systems refer to the business processes and operational procedures employed to complete a
business’s routine activities. An organization’s SOPs consist of such practices and workflows that
directly impact productivity and decision-making.
Train control and monitoring systems (TCMS) used in railways, for example, are critical for the
efficient control of the train and ensure the safety of passengers.
Railways are a safe land transport system when compared to other forms of transport. Railway
transport is capable of high levels of passenger and cargo utilization and energy efficiency but is
often less flexible and more capital-intensive than road transport, when lower traffic levels are
considered.
3.Strategy
The strategy element is a detailed plan that organizations create for successful change
implementation and to gain a competitive edge. A well-crafted strategy is aligned with the other
six elements of the 7-S model and is reinforced by a strong vision, mission, and values.
• The Manufacturing cost is determined by historical cost (actual cost).
• The transfer price is based on cost.
25
RAIL WHEEL FACTORY
• The functional departments in the Rail Wheel Factory, that is the accounts department, stores
department, production department, are classified as cost centers.
• The RWF has adopted a time-based process costing system.
• The organization is under the control of the Ministry of Railway all its policies and directed
and controlled by the ministry of railways about the operations.
• The Rail Wheel Factory holds more stock of inventory, which comes under the “A”category.
• The company's operational and non-operational funds are met through budgetary support from
the Ministry of Railways.
• The unit cost of direct materials of Box ―N Wheel is reducing. The production of wheels cost
is decreasing each year; which leads to gaining more profit.
4. Shared Values
These are the core values governing an organization’s health. While implementing a change,
organizations expect behavioral modification from their employees, which is only possible in a
strong change culture and organizational values.
• To develop a product development strategy based on analysis of customer needs &

expectations. We shall strive to mitigate defects and to target "ZERO defect".
• To comply with all statutory & regulatory requirements, guidelines and obligations applicable
to products & processes.
• To ensure failure prevention by incorporating risk management in all processes.
• To create an atmosphere of awareness by training and educating employees & contract
personnel. To promote a framework of improvement and innovation.
• To evaluate and improve performance by periodical review of the suitability and effectiveness
of the system.
5. STYLE
This element refers to the management style prevalent in a company that decides the level of
employee productivity and satisfaction.This factory uses cast steel technology in the manufacturing
of wheels which utilizes scrap steel collected from Railways' own workshops as raw material. The
products (Wheels, Axles and wheel sets) are engineered with little scope for human errors. It has a
planned capacity to manufacture about 70,000 wheels of different sizes, 23,000 axles and to
assemble 23,000-wheel sets. It employs over 2000 personnel and has an annual turnover of about
82 crores.

26
RAIL WHEEL FACTORY
6.STAFF
This element represents the talent pool required, the size of the existing workforce, and their
motivations. It also considers how they are trained and rewarded within the organization.
Vacancies in Indian Railways are filled either by recruitment-by-Recruitment agencies like UPSC
or RRB or by promotion from serving candidates.
Group A recruitments are filled by UPSC by All India Competitive examinations. Group B posts
are normally filled by promotion from serving Group C candidates. Group C recruitments are made
by Railway Recruitment Boards. Group D posts (Those posts with GP 1800) are filled by Railway
Recruitment Cells. Retirement benefits like Pension, Death cum Retirement Gratuity, Provident
Fund, Post retirement complimentary passes, compensation in case of death/disablement in service,
Leave encashment, medical facilities. Retired employee re-employment help scheme.
7. SKILLS
Skills refer to the abilities of employees to complete tasks. A study suggests that 45% of
respondents reported that a skill gap caused a loss in productivity. Skills gaps overburden
experienced employees who have to pick up the slack for their coworkers’ inexperience. It’s
essential to identify the skill gaps and create relevant employee training programs to bridge these
gaps.
Flexibility Rolling stock jobs, particularly contract/freelance, would expect a reasonable
amount of flexibility. There are large operations taking place throughout the UK but it’s unlikely
that the role would be on your doorstep and so you’d have to consider working away from home.
Shifts can also include nights and unsociable hours, so flexibility is a must.
 Previous fault-finding experience
If you’ve worked in an in-depth fault-finding environment, you could be a perfect match for rolling
stock maintenance engineering. Finding a fault, identifying the problem, fixing it and then testing
is a highly desirable experience. Some of the industries this could be relevant to are:
• Armed Forces (REME, Royal Navy and RAF)

• Automotive
• Aviation & Aerospace
• Factory Maintenance (production equipment including drives, motors, PLCs)
Adaptability The rail industry has changed massively over the years, the ‘boys club’
stigma of old is less prominent and the rolling stock environment is more diverse than it’s ever
been. Technology is also shifting to modern electrical/electronic systems as part of the evolution
towards the digital railway – these factors mean that you would need to be adaptable to change if
moving from a different industry.

27
RAIL WHEEL FACTORY
PORTERS FIVE FORCE MODEL
The tool was created by a Harvard Business School professor Michael Porter. Since its publication
in 1979, it has become one of the most popular and highly regarded business strategy tools. Porter's
Five Forces model can help you to analyze the attractiveness of a particular industry, evaluate
investment options, and assess the competitive environment in your market.
Fig 3.3 Porter’s Five Forces Model

1. Competitive Rivalry-
In an industry where rivalry is intense, companies attract customers by cutting prices aggressively
and launching high-impact marketing campaigns. This can make it easy for suppliers and buyers
to go elsewhere if they feel that they're not getting a good deal from you. On the other hand, where
competitive rivalry is minimal, and no one else is doing what you do, then you'll likely have
tremendous competitor power, as well as healthy profits.
The competition commission has answered competition-based questions as far as transportation is
concerned, roads and Pvt operators such as CONCOR offer competition. In terms of prices, it
depends on the segment buses and flights for passengers. Roads for freight.
In terms of value of money, the fares are highly subsidized for passengers,
In May this year, Jindal Steel and Power Ltd. (JSPL) said that it will be setting up India’s first
private sector Rail Wheelset manufacturing plant at its Raigarh facility in Chhattisgarh. A company
statement had said that JSPL has collaborated with GIFLO Steel - Hungary for this project. The
push for setting up domestic wheel manufacturing in the country had regained momentum after
supply disruptions due to the Russia-Ukraine conflict. Facing constraints due to global conflict, the
rail minister ended up awarding a tender of supply for wheels and axles to a Chinese company.

28
RAIL WHEEL FACTORY
2.Supplier Power-
Suppliers gain power if they can increase their prices easily or reduce the quality of their product.
If your suppliers are the only ones who can supply a particular service, then they have considerable
supplier power. Even if you can switch suppliers, you need to consider how expensive it would be
to do so. In early 1980`s Indian railway was importing 55% of requirements of wheels and axles.
Later in 1986 in order to have control over the imports, the central government set up a
manufacturing unit in Yelahanka Bangalore. After the setup of plant for many years they met the
needs of wheel and axles in the country but recently due to not being able to meet the needs the
contract has been given to Chinese company. The Chinese company will supply 39,000 train
wheels for Indian Railways.
3. Buyer Power-
If the number of buyers is low compared to the number of suppliers in an industry, then they have
what's known as "buyer power." This means they may find it easy to switch to new, cheaper
competitors, which can ultimately drive down prices.
As Rail wheel factory is the only oldest and the first unit set up for the manufacturing of wheels
and axles and except for Bihar plant there are no other plant manufactures wheels and axles the
Rail wheel factory has PRICE FIXATION power as the manufactures are less and the demand is
more. So, in the global market they are the price makers and not the price takers.
4. Threat of Substitution-
This refers to the likelihood of your customers finding a different way of doing what you do. It
could be cheaper, or better, or both. The threat of substitution arises when customers find it easy to
switch to another product, or when a new and desirable product enters the market unexpectedly.
India has been importing wheels from Ukraine, Czechoslovakia and Germany. In June, wheels
meant for Vande Bharat trains were stuck in war-torn Ukraine and had to be airlifted to India meet
the timelines set for production of rakes.
5. Threat of New Entry-
Your position can be affected by potential rivals' ability to enter your market. If it takes little money
and effort to enter your market and compete effectively, or if you have little protection for your
key technologies, then rivals can quickly enter your market and weaken your position.
In May this year, Jindhal Steel and Power Ltd (JSPL) said that it will be setting up India`s first
private sector Rail Wheelset manufacturing plant at its Raigarh facility in Chhattisgarh. A company
statement said that JSPL has collaborated.

29
RAIL WHEEL FACTORY
CHAPTER-4
SWOC ALYSIS
INTRODUCTION
SWOC analysis is a strategic planning and strategic management technique used to help a person
or organization identify Strengths, Weaknesses, Opportunities, and Threats related to business
competition or project planning. It is sometimes called situational assessment or situational.
Fig 4.1 SWOC Analysis
STRENGTHS
The strength of RWF lies in the technology adopted for manufacturing wheels and axles.
• Trained, talented and dedicated employees with committed management skill set.
• Flexibility in production and supply of products with different product mixtures.
• Development of new product as per requirement of the customer with minimum lead time.
• On time delivery of product as per specification or drawing.
• Completive price
• Complete information on local area network (LAN) system for easy traceability.
• Well-equipped Chemical and Metallurgical laboratories

30
RAIL WHEEL FACTORY
• Satisfied and loyal customers
WEAKNESS
Weaknesses stop an organization from performing at its optimum level.
• Restricted government policies

• Recruitment is restricted through railway board exams
• No technology up graduation.
• Liberalization and dumping tendency of other firms, especially from foreign countries.
• Government policies.
• Changing pattern of requirements of rolling stock by Indian railways.
• Inability to manufacture wheels in small quantities due to the target fixed or manufacturing
cost.
OPPORTUNITIES
Opportunities refer to favorable external factors that could give an organization a competitive
advantage.
• Determine and review the requirements of related products.

• Planning production process and identifying the additional resources required for
manufacturing and supply of new products.
• Exporting to USA, Malaysia, Korea, South Africa, Sri Lanka, and Sudan Competitive
environment calls for improvement and increase in productivity.
• Introduction of new machine to update new technology.
CHALLENGES
Threats include anything that can negatively affect your business from the outside, such as
supply-chain problems, shifts in market requirements, or a shortage of recruits.
• Bullet trains which move with Magnetic instead of Iron wheels.

• Expenditure can be made only by sanction from the parliament. The environment in RWF is
very conducive to all workers

31
RAIL WHEEL FACTORY
CHAPTER 5
ANALYSIS OF FINANCIAL STATEMENT
Financial analysis is the process of evaluating businesses, project, budgets and other finance related
transactions to determine their performance and suitability. Financial analysis is used to analyse
whether an entity is stable, solvent, liquid or profitable enough to warrant a monetary investment.
Financial analysis is used to evaluate economic trends, set financial policy, build long-term plans
for business activity and identify projects or companies for investment. This is done through the
synthesis of financial numbers and data.
A financial analyst will thoroughly examine a company’s financial statements- the income
statement, balance sheet and cash flow statement. Financial analysis can be conducted in both
corporate finance and investment finance settings.One of the most common ways to analyze
financial data is to calculate ratios from the data in the financial statements to compare against
those of other companies or against the company’s own historical performance.
Analysing through financial statements involves many factors such as solvency, liquidity,
profitability and efficiency of operations is as certained, thus by identifying the weakness, the intent
is to strive at an appropriate recommendation and to take an appropriate decision and to give the
forecast for the future of business identity.
There are various types of financial analysis, some of them are mentioned below.
1. External analysis:
This analysis is done based on the basis of published financial statements by those who don’t have
the access to the accounting information, usually it is done by the general public.
2. Internal analysis:
This analysis is performed to provide the information to the top management and helping them to
take the decision and this analysis is done by the finance and accounting department.

32
RAIL WHEEL FACTORY
RATIO ANALYSIS
What is ratio analysis:
Ratio analysis is a quantitative method of gaining of insights into company’s liquidity, operations
Efficiency, and profitability by studying its financial statement such as the balance sheet & income
statement.
Ratio are classified in to main 3 Types:
• Profitability ratio: - Analyses the profit based on sales, net worth, assets etc.
• Liquidity ratio: - Analysis the ability to repay short term obligations.
• Solvency ratio: -Analysis the ability to repay long term obligation.
• Activity ratio: - Used to determine the efficiency of the organisation in utilising its assets for
generating cash and revenue.
BALANCE SHEET
A Balance Sheet is a financial statement that contains details of a company's assets or liabilities
at a specific period
Equities &
Mar-18 Mar-19 Mar-20 Mar-21 Mar-22
Liabilities
Share Capital 6,526 9,380 11,880 13,068 13,068
Reserves &
7,038 15,648 19,081 22,844 27,927
Surplus
NonCurrent
25,471 7,622 89,635 1,62,154 4,08,456
Liabilities
current Liabilities 1,23,295 1,73,952 1,55,336 1,79,983 5,27,357
Total Liabilities 1,62,332 2,06,603 2,75,934 3,78,051 4,49,980
Assets
Fixed Assets 11 11 11 45 37

33
RAIL WHEEL FACTORY
Current Assets 14,106 2,05,046 2,73,864 3,70,213 4,32,810
Inventory 1,48,214 1,545 2,058 7,792 17,131
Total Assets 1,62,332 2,06,603 2,75,934 3,78,051 4,49,980
Table 5.1 Balance Sheet

PROFIT AND LOSS ACCOUNT
The profit and loss (P&L) statement is a financial statement that summarizes the revenues, costs,
and expenses incurred during a specified period.
Mar-
Annual Mar-18 Mar-19 Mar-20 Mar-21
22
Sales 11,018 11,133 13,838 15,770 20,299
Other Income 1 0 0 0 2
Total Income 11,020 11,133 13,838 15,770 20,301
Total
38 48 66 117 136
Expenditure
EBIT 10,982 11,084 13,772 15,653 20,164
Interest 8,436 8,183 10,079 11,237 14,074
Tax 537 646 0 0 0
Net Profit 2,007 2,254 3,692 4,416 6,089
Table 5.2 Profit and Loss

34
RAIL WHEEL FACTORY
CASH FLOW STATEMENT:
Mar-22 Trend Mar 18 - Mar 22 Mar-18 Mar-19 Mar-20 Mar-21
Operating
-27,936 -41,748 -62,717 -89,906 -64,412
Activities
Investing
1 1 1 0 -4
Activities
Financing
28,026 41,749 62,713 90,202 64,266
Activities
Others 0 0 0 0 0
Net Cash
92 2 -2 295 -150
Flow
Table 5.3 Cash flow statement
RATIO ANALYSIS:
PROFITABILITY RATIO: -
The profitability ratio shows how successful a business is in earning profits over a period of time
in relation to operation costs, revenue, and shareholders' equity. The higher the ratio, the better it
is for the company because it shows that the business is highly capable of generating profits
regularly.
Profitability ratio: - Gross profit / Net sales * 100.

Net Profit Ratio, also referred to as the Net Profit Margin Ratio, is a profitability ratio that measures
the company's profits to the total amount of money brought into the business.

35
RAIL WHEEL FACTORY
year 2018 2019 2020 2021 2022
PAT 2,007 2,254 3,692 4,416 6,089
SALES 11,018 11,133 13,838 15,770 20,299
Net profit ratio 0.18 0.20 0.27 0.28 0.30
Net profit ratio

0.35
0.30
0.30 0.28
0.27
0.25
0.20
0.20 0.18
0.15
0.10
0.05
0.00
2018 2019 2020 2021 2022
Graph 5.1 Net profit ratio
Interpretation: In the retail sector, for example, anything between 0.5% to 3.5% is
considered a good net profit ratio. This might not, however, be considered good for other
businesses. In general, though, aiming for a net profit ratio of 10% - 20% is considered average.
RETURN ON CAPITAL EMPLOYED:
It is also known as operating income and indicates how much a firm generates from its operations
alone, excluding interest and taxes.
ROCE= EBIT/Capital Employed

36
RAIL WHEEL FACTORY
year 2018 2019 2020 2021 2022

Operating profit(or) EBIT
10,982 11,084 13,772 15,653 20,164
in (CRS)
Total equity (CRS) 13,564 25,028 30,961 35,912 40,995
ROCE 81% 44% 44% 44% 49%
ROCE
90%
81%
80%
70%
60%
49%
50% 44% 44% 44%
40%
30%
20%
10%
0%
2018 2019 2020 2021 2022
ROCE
Graph 5.2 Return on Capital Employed
RETURN ON SALES: -
Return on sales (ROS) is a measure of how efficiently a company turns sales into profits. ROS
is calculated by dividing operating profit by net sales. ROS is only useful when comparing
companies in the same line of business and of roughly the same size.
Return on Sales = EBIT ÷ Net Sales Revenue

37
RAIL WHEEL FACTORY
year 2018 2019 2020 2021 2022

Operating profit(or)
10,982 11,084 13,772 15,653 20,164
EBIT in (CRS)
sales from revenue 11,018 11,133 13,838 15,770 20,299
ROS/GROSS
MARGIN 100% 100% 100% 99% 99%
ROS/GROSS MARGIN
100%
100%
100%
100% 100%
100%
100%
99%
99%
99% 99%
99%
99%
99%
2018 2019 2020 2021 2022
Graph 5.3 Return on Sales
Interpretation: -If return on sales average 15% in your industry, an 18% ROS is considered
reasonably good. Company Trends. If the returns on your sales are on the up year after year, your
company becomes more profitable. A 10% increase in ROS means your sales are increasing and
you're
CURRENT RATIO: -
The current ratio estimates a firm's capacity of paying short-term or current liabilities, including
payables and debts, with its short-term or current assets, like receivables, inventory, and cash.
38
RAIL WHEEL FACTORY
Current ratio: - current assets/current liabilities.
year 2018 2019 2020 2021 2022

CURRENT ASSETS 14,106 2,05,046 2,73,864 3,70,213 4,32,810
CURRENT
1,23,295 1,73,952 1,55,336 1,79,983 527
LIABILITY
CURRENT RATIO 0.11 1.18 1.76 2.06 821.27
CURRENT RATIO
821.27
0.11 1.18 1.76 2.06

2018 2019 2020 2021 2022
Graph 5.4 Current Ratio
Interpretation: -A current ratio above 1.0 is considered good for a construction company. This
indicates that the company could pay off all its liabilities if they become immediately due. A ratio
of less than 1.0 implies a high level of liabilities and could be a sign of upcoming financial problems
QUICK RATIO: -
The quick ratio communicates how well a company will be able to pay its short-term debts using
only the most liquid of assets.
Quick ratio: - CA-Inventory/CL

39
RAIL WHEEL FACTORY
YEARS 2017 2018 2019 2020 2021
CURRENT ASSETS 14,106 2,05,046 2,73,864 3,70,213 4,32,810
CURRENT LIABILITY 1,23,295 1,73,952 1,55,336 1,79,983 527
INVENTORY 1,48,214 1,545 2,058 7,792 17,131
QUICK RATIO -1.09 1.17 1.75 2.01 788.76
QUICK RATIO
900.00
788.76
800.00
700.00
600.00
500.00
400.00
300.00
200.00
100.00 -1.09 1.17 1.75 2.01
0.00
-100.00 2017 2018 2019 2020 2021
Graph 5.5 Quick Ratio
Interpretation: -the Quick Ratio again should be higher than 1.0 to indicate the ability to pay off
all short-term debt. It will be lower than the Capital Ratio as only some current assets are
considered. A level between 1.1 and 1.4 is generally deemed to be good.
DEBTORS TO EQUITY RATIO / CAPITAL GEARING RATIO: -
The debt-to-equity ratio compares total liabilities to shareholders' equity. It is one of the most
widely and consistently used leverage/gearing ratios, expressing how much suppliers, lenders, and
other creditors have committed to the company versus what the shareholders have committed.
Debtors to equity ratio: - NON current Liability / ordinary shareholder’s fund

40
RAIL WHEEL FACTORY
YEARS 2017 2018 2019 2020 2021

Non-CL(CRS) 25,471 7,622 89,635 1,62,154 4,08,456
Total equity (CRS) 13,564 25,028 30,961 35,912 40,995
DEBTORS TO EQUITY
RATIO 188% 30% 2.895 4.515 9.964
DEBTORS TO EQUITY RATIO
9.964
4.515
2.895
188%
30%
2017 2018 2019 2020 2021
Graph 5.6 Debtors to Equity Ratio
Interpretation: -The higher the ratio, the more debt the company has. Anything above 1.0 is
normal, but a ratio higher than 2.0 indicates that the company has taken on too much debt. High
ratios will likely have an impact on the ability to access further loans
INTERST COVERAGE RATIO: - OPERATING PROFIT / FINANCE COST.
YEARS 2017 2018 2019 2020 2021

Operating profit (EBIT) 10,982 11,084 13,772 15,653 20,164
finance cost 8,436 8,183 10,079 11,237 14,074
INTEEREST
COVERAGE RATIO 1.30 1.35 1.37 1.39 1.43

41
RAIL WHEEL FACTORY
INTEREST COVERAGE RATIO

1.45 1.43
1.39
1.40
1.37
1.35
1.35
1.30
1.30
1.25
1.20
2017 2018 2019 2020 2021
Graph 5.7 Interest Coverage Ratio
Interpretation: - An interest coverage ratio of at least two (2) is generally considered the
minimum acceptable amount for a company that has solid, consistent revenues. Analysts prefer to
see a coverage ratio of three (3) or better.
FINANCIAL HEALTH OF THE COMPANY
The overall revenue of Indian Railways at the end of August'22 was Rs 95,486.58 cr, showing an
increase of Rs. 26271.29 cr (38%) over the corresponding period of last year.
The revenue from passenger traffic was Rs.25,276.54cr with an increase of Rs 13,574.44 cr (116%)
over the corresponding period of last year. Passenger traffic also increased compared to last year
in both the segments, reserved as well as unreserved. The growth from the long distance reserved
mail express trains has been sharper than the same in passenger & suburban trains.
The other coaching revenue was Rs. 2437.42 cr, showing an increase of Rs.811.82 cr (50%) over
the corresponding period of last year. This growth is being fueled by robust growth in the Parcel
segment of Indian Railways.

42
RAIL WHEEL FACTORY
Goods revenue was Rs.65,505.02cr by August this year and has increased by Rs 10,780.03 cr (20%)
over the corresponding period of last year. This has been achieved through incremental loading of
more than 58 MT and 18% growth in the NTKMs during the period. Food grains, fertilizer, cement,
mineral oil, container traffic and Balance other goods segments have been important contributors
in this growth, in addition to the coal transportation.
The sundry revenue was Rs 2267.60 cr, showing an increase of Rs 1105 cr (95%) over the
corresponding period of last year.
The position of railway revenue at end of August 2022 is summarized below:
Rs in Cr 116%
50%
Category Actual Actual Actual Variation over last
year 20%
2021-22
95%
Upto Aug Upto Aug Amount % 38%
21 22
Passenger 39214.38 11702.10 25276.54 13574.44 116%

Revenue
Other 4899.55 1625.60 2437.42 811.82 50%

Coaching
Revenue
Goods 141096.39 54724.99 65505.02 10780.03 20%

Revenue
Sundry 6067.97 1162.60 2267.60 1105.00 95%

Revenue
Total 191278.29 69215.29 95486.58 26271.29 38%

Revenue
Table 5.4 Railway Revenue

43
RAIL WHEEL FACTORY
CHAPTER-6
LEARNING EXPERIENCE
Learning about the organization and its working environment was very useful. Organization study
made me understand the manufacturing process practically and it enhanced my knowledge too.
Casting of rail wheels- In this process the metal is molted using an ultra-high frequency electric
arc furnace and it is further put into a graphic Molds followed by different heat treatment process.
Forging of axles- Billets are cut from blocks of blooms and are forged in a precision long-forging
machine. The billets are heated in a rotary furnace and then forged and cut into required lengths.
The axle is treated through different heat treatment processes.
I was even in the personnel department to get some hands-on knowledge on recruiting which comes
under human resource management.
The management was kind enough to guide me and arranged for an expert to take around the factory
every week to show how the process of maintaining organization takes place.
Overall, the internship was a fun learning process, and I gained productive practical knowledge
from it.

44
RAIL WHEEL FACTORY
BIBILOGRAPHY
https://economictimes.indiatimes.com/industry/transportation/railways/rail-ministry-floats-rs-
1000crores-tender-for-manufacture-of-forged-
wheels/articleshow/94097994.cms?utm_source=contentofinterest&utm_medium=text&utm_cam
paign
=cppstss https://rwf.indianrailways.gov.in/
https://rwf.indianrailways.gov.in/view_section.jsp?lang=0&id=0,294
https://en.m.wikipedia.org/wiki/Rail_Wheel_Factory https://www.railway-
technology.com/news/jindal-steel-rail-wheels/

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A Report on

“ORGANIZATION STUDY AT RAIL WHEEL FACTORY”

In partial fulfilment of Post Graduate Degree

MASTER OF BUSINESS ADMINISTRATION

Under the guidance of

Vidyavardhaka Sangha (R), Mysuru

I express my immense gratitude to Dr. B. Sadashive Gowda, Principal, Vidyavardhaka

I am extremely grateful to Dr. PSV Balaji Rao Department of Master of Business

Department of MBA Vidyavadhaka College of Engineering, Mysuru

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CHAPTER 1 Industry profile 4-8

Background & History 10-11

Vision, Mission, Quality policy 13

CHAPTER 2 Workflow Model 14-17

Products & Services profile 18

Achievements and Awards 20-21

Future Growth and Prospects 21-23

McKinsey’s 7s Framework and Porter’s Five

CHAPTER 4 SWOC Analysis 30-31

CHAPTER 5 Analysis of Financial Statements 32-43

CHAPTER 6 Learning Experience 44

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Graph 5.1 Net profit Ratio 36

Graph 5.2 Return on Capital Employed 37

Graph 5.3 Return on Sales 38

Graph 5.4 Current Ratio 39

Graph 5.5 Quick Ration 40

Graph 5.6 Debtors to Equity Ratio 41

Graph 5.7 Interest Caverge Ratio 42

Table 1.1 Industry Profile 5

Table 2.1 Land Area 10

Table 2.2 Ownership Pattern 20

Table 5.1 Balance sheet 34

Table 5.2 Profit and Loss 34

Table 5.3 Cashflow Statement 35

Table 5.4 Rail Way Revenue 43

Figure 1.1 Inside the Factory View 4

Figure 1.2 Recent trends & Innovation 6

Figure 2.1 Railway Wheel Factory 8

Figure 2.2 Company View 10

Figure 2.3 General Department 14

Figure 2.4 Store Department 14

Figure 2.5 Account Department 15

Figure 2.6 Personnel Department 15

Figure 2.7 Civil Department 16

Figure 2.8 Electrical Department 16

Figure 2.9 Medical Department 17

Figure 2.10 Vigilance Department 17

Figure 2.11 Product Profile 18

Figure 2.12 Axle 18

Figure 2.13 Wheel 19

Figure 3.1 McKinney’s 7s Frame Work model 24

Figure 3.2 Structure 25

Figure 3.3 Porters five force model 28

Figure 4.1 Swoc Analysis 30

Department of MBA Vidyavadhaka College of Engineering, Mysuru

Department of MBA Vidyavadhaka College of Engineering, Mysuru

INTRODUCTION TO THE INDUSTRY