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COAL INDIA CASE STUDY
By:
Team Learn2Do
Problems Faced
Land Acquisition
Environmental Clearance
Availability of coal in few states
Bottlenecks in logistics infrastructure- Roads and Ports
Naxalism in East and East-Central parts
Inflexibility of Railways in accommodating variable rakes
Piled up coal stock
Supply
(in Million Tonnes)XI plan (2011-12) Projected
XI Plan reality
CIL 520.5 450
SCCL 40.8 40.8
Others 118.7 50
Total 680 540.8
Demand
XI Plan 2011-2012
Need to be Met by CIL
Power utilities 483 100% 483Power Captive 57.06 75% 42.8Cement 31.9 75% 23.92
Sponge iron & others 90.64 75% 67.98Total non Coking 662.6 617.7Coking Steel 68.5 75% 51.37Total 731.1 669.07Supply 680 540.8Shortage 51.1 128.27
Demand-Supply GapAmount to be imported
SOLUTIONS
CONTAINERIZATION
• Utilize flat bed Collapsible containers for coal transport on railways
• It can be directly transported on a truck for further transportation from railway yard for door step delivery
• Collapsible containers can save cost while returning empty containers
• Lead time to empty coal from train gets reduced
Rail TransportCOLTainer: Collapsible container
• Hybrid Model• 40 feet – Carrying capacity
27 tons• 2 stacked upon one another• Can be directly loaded on
trucks from rail/port• Faster turn around time
• Traditional • Coal Movement
• Carrying capacity 50-55 ton/wagon
• Same process for unloading• Need 200 wagons/day getting
only 170
PitheadsRailway Siding
Rail Cart
CHANNELIZE INLAND WATERWAYS
Inland Waterways
• India has about 14,500 km of navigable waterways• Nearly 3,600 km are navigable by larger vessels. • Just about 2,000 km are used currently.• One barge ≡15 rail wagons/60 trucks.
IWT standard Barge Rail Truck
Operating Cost/tonne /mile 1 cent 2.5 cent 5.3 cent
kms /tonne /3.8 ltr 827km 325km 95km
POWER PLANTS TO UTILIZE STOCK PILE
Production concentration
Power Plants near Coal Mines
Stockpile till July 2011 -70 Million
tonnes accounts to 16% of production
Constantly rising due to lack of
transport facilities.
Get into JV with NTPC to install new power
plants in states such as Jharkhand, Orissa and
Chhattisgarh
These 3 account for 60% of CIL
production. Lack infrastructure facility
to transport coal
CAPACITY UTILIZATION
Company
Total production 2010-2011(million
tonnes) OMSECL 30.8 1.6
BCCL 29.01 2.09CCL 47.52 3.88
NCL 66.25 13.52WCL 43.65 2.65
SECL 112.71 6.47
MCL 100.28 15.37
NEC 1.1 2.16
CIL 431.32 4.73
Capacity Utilization
The Output per man shift(OMS) is really low for some subsidiaries of
CIL.
This indicates Poor manpower utilization or Very low production
The OMS can be improved by either increasing the mine utilization or cutting the cost by reducing the
manpower.
EXPLORE , EXPLORE
Mine Acquisition from Indonesia
• Total coal resources in Indonesia stand at 93.4 billion tonnes
• Quality:
Low 25%
Medium 60%
High 15%
Major Exporters: South Africa, Australia, Indonesia, Columbia, Mozambique
Abandoned Mines
• Extract coal from 18 abandoned underground mines with owned by three of its subsidiaries in partnership with private players.
• An approximate reserve of 1.647 billion tonnes of coal.• Underground mining would be revived in 6 abandoned
mines of Eastern Coalfields, 8 mines of Bharat Coking Coal, and 4 mines of Central Coalfields.
• No new environment clearance is needed
INTRODUCTION OF ERP
Integrated Logistics System
Final Site
Integrated Logistics System
Improve workflow and monitoring
Locating bottlenecks is simpler
Assist in analyzing, decision making and
scheduling
Networking between CIL and constituent
units across the supply chain
Simplify dissemination of information to
public, customers and make it interactive
Storage of data, analysis, and handling
of databases
Can provide dynamic data, scenario of the
demand and supply in different areas and
overall
More transparent system between
different subsidiaries
Helps tackle delays due to natural calamities or other challenges posed
by whether
Why?
Door to Door Delivery
Transportation Outsourcing
Coal India is responsible for transport from:
After this point CIL can Outsource transportation of the stock• Rope in a Private Player to take care of the transportation from the wagons to
the industry sites• Pay some percentage of the revenue generated from the order• Demand is huge and supply is frequent, hence lots of profits involved• Set terms and conditions of the deal and strict standards of management,
performance• Make the end users aware about this service and initiate the communication
between the transport provider and the end user
Pithead to the railways sidings
Loaded on to the wagons
Brand CIL more than just PSU or Maharatna
BRAND CIL
Why?• Attract best of the brains from the society• Instil a sense of pride in association• Increased Trust and Reliability• Attracting more private players to associate • Help in acquiring sizeable equity stakes in mines abroad
to have long term relationship• More people buying IPO of CIL
BRAND CIL
Segments:
• Internal Stakeholders – Employees, Management• External Stakeholders - value chain partners
(customers, suppliers),communities, govt. agencies, regulators, foreign players
BRAND CIL
BRAND CIL
How? •Print Ads in the newspaper on a special occasion
What?•Celebrating Glory of CIL/ Celebrating Occasion•Mention scale, potential, achievements, developments, about IPO•Motto of CIL
Why?•Increase awareness about CIL•Catching interest of people•More people buying IPO of CIL
BRAND CIL
How?• Sending brochures of CIL annually to
prospective customers
What?
• Talking about the new developments, deals and improvements in the processes
• Revenue generated and assets, spread and other associations
• Price offered and quality of goods and services provided
• Subtly pursuing them to associate with the company
Why?• Instil a sense of pride in association• Attracting more private players to associate
BRAND CIL
How?
• Ads/Videos endorsing good working conditions and culture in such industries
• Acquiring a motto “ worker’s safety, our responsibility”
What?
• Talking about human resource ,strength of any company
• Responsibility towards employees well being and safety being the duty of every enterprise
• CIL providing safety, employment, development to naxal /poverty stricken regions
Why?
• Improves the social image and standing of CIL• People having a more positive attitude towards the
company as a whole• Increased Trust and Reliability• Sense of pride while associating with the company