Upcoming IPO : Indian Railway Catering and Tourism Corporation

Company & Business Profile

Indian Railway Catering and Tourism Corporation (IRCTC) is Indian Railways authorized company engaged into the business of Catering Services, Internet ticketing, Packaged drinking water under the brand ‘Rail Neer’ and travel & tourism.  The Company is wholly owned by Government of India under the administrative control of the Ministry of Railways. IRCTC is the only entity who provides catering services, online ticket and packaged drinking to Indian railway.

Four major business segments of the company:

• Internet Ticketing (12% of the total revenue): Under this segment company offer railway tickets online through its website and mobile application. As of June 30, 2019, more than 1.40 mn passengers travelled on Indian Railways, which consisted of approx 71.42% of tickets booked online. Currently, it operates as one of the most transacted websites in the Asia-Pacific region with a transaction volume of more than 25 mn/month and 7.2 mn logins per day.
• Catering (55% of the total revenue): Company Provide catering services to Indian railway passengers in trains and stations. Company has wide distribution network for food services such as through mobile catering units, cell kitchens, refreshment rooms, food plazas, food courts, train side vending, and Jan Ahaar. Company also offers e-catering services to passengers through mobile application ‘Food on Track’ and e-catering website i.e. ecatering.irctc.co.in.
• Packaged Drinking Water (Rail Neer): Currently, company has 10 Rail Neer plants located at Delhi, Patna, Palur, Ambernath, Amethi, Parassala Bilaspur, Hapur, Ahmedabad and Bhopal with an installed production capacity of approximately 1.09mn litres per day, which caters to approximately 45% of the current demand of packaged drinking water at railway premises and in trains. This segment contributes 9% in the total revenue.
• Travel and Tourism (24% of total revenue): IRCTC has been mandated by the Indian Railways to provide tourism and travel related services. As of now, company have footprints in across major tourism segments such as hotel bookings, rail, land, cruise and air tour packages and air ticket bookings.

Issue Summary

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