NEW DELHI: Indian Railways is coming up with a ‘concept selling’ policy whereby companies can market their products in 13,000 trains. The policy will allow executives to sell products such as insurance policies and investment plans to passengers in trains.
The cash-strapped Railways has been banking on the non-fare revenue (NFR) sector for revenue. Some zonal railways briefly allowed companies to market sample products such as toothpaste, handwash, biscuits and shampoos in trains.
“We are planning a comprehensive policy on a revenue sharing model whereby a company will have to give a fixed amount to the Railways annually for brand selling in trains. Company executives will be allowed to talk to passengers during a journey and sell their products,” said a senior railway ministry official.
The NFR policy was launched earlier this month, and is expected to bring an additional revenue of `2,000 crore annually. The policy involves advertising in trains, bridges and other assets, ATMs at railway platforms and digital content for passengers, among others.
“Railways can offer a big platform to firms for marketing as we carry over 2.3 crore passengers daily, who are of different esclass and economic and social backgrounds,” the official added.
In 2016, Northern Railways had allowed companies such as Sensodyne, Lifebuoy and Titan distribute product samples in trains.
“Some trials were carried out to assess the response of passengers in the northern zone. The new policy will also help passengers to utilise their journey time and discuss financial queries with company certified executives while they are travelling,” said a Northern Railway official.
The Railways is assessing the revenue sharing model that can be rolled out before companies.