Operations / Transportation and Logistics [ India ]

1 call

Railway Expert to share knowledge insights to conduct a high level opportunity analysis for the ‘Kavach’ system for an Indian player|

CLIENT:
A Big4 Consulting Firm
CONSULTANT:
As a Railway Signaling & Telecom Professional, he has experience in Railways projects planning and system design of Indian as well as overseas (UK and Taiwan High Speed) railway systems for both public and private sector clients, Maintenance Management of Railways signaling & telecom systems, Operations and Safety management. His experience covers various aspects of Rail Transport development - design, management and implementation including asset and programme management as well as the delivery of integrated systems for service delivery to meet customer requirements.
ASSIGNMENT:
Expert required to share knowledge insights for client who is looking to do a high level opportunity analysis for the ‘Kavach’ system for an Indian player

Questions for knowledge insights to be shared :


1. Prototype Timelines: What are the expected timelines for designing and manufacturing a new OEM prototype? What's the fastest time from prototype to final approval?

2. Barriers to Entry: Apart from RDSO approval, what significant barriers might exist for entry?

3. R&D and IP: What level of R&D is needed to enter the Kavach space? Are there unique IP or proprietary technologies that require licensing?

4. Investment and Margins: What investment is needed for Kavach components from scratch? What are the expected profit margins across different components (e.g., Station TCAS, Loco TCAS)?

5. Profitability: Are current OEMs profiting from Kavach? If not, what’s the path to profitability?

6. Component Profitability: Are specific Kavach components more lucrative, or is it better to operate across the entire value chain?

7. Critical Capabilities: What essential capabilities are needed to become a Kavach-approved OEM?

8. Outsourcing vs. In-house: Which parts of the value chain are typically outsourced by OEMs?

9. Government Support: Is there any government support (subsidies, tax incentives) for entering the Kavach manufacturing space?

10. Post-deployment Support: What are the maintenance and support requirements for Kavach hardware after deployment?

11. Kavach vs. ETCS/ATS: How does Kavach 4.0 compare to ETCS levels and ATS in the US?

12. Future Evolution: What changes are expected in Kavach 5.0 and 6.0, and how long could these changes last?

13. Foreign Players: Why aren't foreign ETCS players involved in Kavach production, and could they disrupt this market later?

14. Entry Strategies: What participation options exist for new players? Do they need to be an approved OEM, or can they partner with existing ones?
OUTCOME:
The Expert was able to share knowledge insights on:

The timelines and challenges for prototype development in the Kavach space, including barriers to entry and necessary R&D efforts. It covered investment requirements and profit margins for various components, as well as the current profitability landscape for OEMs. The importance of specific capabilities and outsourcing strategies for becoming an approved OEM was highlighted, along with potential government support available to manufacturers.

Additional insights included maintenance and support needs for deployed hardware, comparisons of Kavach with other signaling systems, and expectations for future technological advancements. The conversation also touched on the competitive landscape, particularly regarding foreign players and strategies for new entrants in the market.