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Old 12th June 2009, 09:16   #16
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Default Finally - operational logistics and employees

Employees - your business is literally in their hands.

Any accident, and you are the person to face the responsibility. Insurance pays for the monetary damages only, not loss of goodwill. Injured and / or stranded passengers are not best goodwill ambassadors for a transportation business.

And you will need 2 drivers and one cleaner if you operate on routes. At least one of them would have to be a "talker" - to keep the driver awake during overnight trips. Take into account shifts, duty time, leave and multiple buses, you will have a big number of staffers on your rolls.

And face it, there would minor accidents and traffic infractions all over.

Do not expect the driver or other operational staffers to run around to solve those issues. You will need somebody - a "man Friday" to sort out those issues.

With that huge number of staffers, ever heard of EPF and ESI? (do not venture into a business if you do know what those abbreviations are).

Last edited by BaCkSeAtDrIVeR : 12th June 2009 at 09:18.
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Old 12th June 2009, 09:53   #17
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Default Fe

Ashok Leyland buses with AL 370 engines and 4 speed gear box used to give 4.5 to 5 KMPL on highways way back in 1980s.

Volvos give still less FE??

Re. the suspension - I guess the air / hydraulic suspension is now standard on luxury chassis.

Remember that world over, most heavy passenger vehicles require heavy customisation and hence are sold as chassis only, and bodies built separately. AFAICT, most luxury buses in India are built by coach makers like Sutjej, Azad, AGCL etc. The vehicle owner has a huge level of control over such customisation.

You will need to specify matters like seat lay out (2 x 2; 2x 1, etc). And type of seats - just recline, recline + leg rest, etc.

Audio with a public address system is essential for national tourist
permit vehicles. Seat layout will have impact on vehicle taxation, andyour business model.

You can adopt 2 business models - a "hire out" model, where the vehicle is let out for occassions, like week end trips, marriage functions, etc. Your over heads and maintenance would be very small in this case. But business would be very uncertain in that case.

The other model - "tour operation", requires huge infrastructure in place.

You could also consider running for corporate houses orgiving out the vehicle to tour operators. Woud take out a big hassle off your head.
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Old 12th June 2009, 10:28   #18
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I have at one time, when i was fresh out of college, made a business plan to start out a high-frequency intercity bus service along with my sister who was in the business.


BUt back then with Swaraj Mazda type "luxury" coaches costing 10 odd lakhs, we could expect a healthy return on investment. I wonder how the economics work out in these times with the luxury bux concept moving from 10 lakh coaches to volvo's costing 70 lakhs plus. Is anyone making any money?
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Old 12th June 2009, 11:27   #19
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Wow what a fantastic set of posts! Thank you very much for the insights - they are tremendously useful. There are multiple options at this point - and the hire-out model is one, and after reading your set of posts, by far the most attractive.

Thanks a lot for taking the time to write all that. Great insights.

Cougar: Yeah prices are insane. The profit margins as I costed them out are quite low especially after the politicians take their share. Its a shame that the real difficulty of this idea is actually dealing with the people involved - drivers, politicians, border staff. But I suppose that is the current reality of India.

I am still interested in learning about the importation duty process for brand new CBUs, Chassis etc. If anyone has any leads, they would be most welcome.
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Old 13th June 2009, 09:25   #20
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Default WOW man

I was shocked to see this thread. Its straight out of my heart

Good to see so many bus enthusiasts. From age 18 to age 26, I spent my whole time researching busses, visiting workshops, talking to owners and drivers, finance companies, and designing busses, plotting routes, the works

Didn't buy the bus, but am in a boring job with IBM

Wish you all the best for the venture, will post everything that is in my head over the next few days

My dream bus:
ASHOK LEYLAND VIKING with my own body design - should not cost more than 12 lakhs, and running between HUBLI and BANGALORE
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Old 13th June 2009, 13:28   #21
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Quote:
Originally Posted by BaCkSeAtDrIVeR View Post
With that huge number of staffers, ever heard of EPF and ESI? (do not venture into a business if you do know what those abbreviations are).
I don't plan to venture into a business, but I would really like to know what these abbreviations are in this particular context. Googling didn't help as it returned a lot of unrelated expansions.
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Old 13th June 2009, 13:46   #22
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Quote:
Originally Posted by leodelg View Post
I don't plan to venture into a business, but I would really like to know what these abbreviations are in this particular context. Googling didn't help as it returned a lot of unrelated expansions.
EPF- EMPLOYEE PROVIDENT FUND.
ESI- EMPLOYEE STATE INSURANCE.
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Old 13th June 2009, 15:03   #23
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@leodelg - you are answered.

My point was - it pushes up employee costs by another 25 or 30 %.
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Old 14th June 2009, 01:33   #24
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Great post from "backseatdriver", really appreciate it mate.
I am in the transport business myself, but in the truck line. I operate a fleet of 4 TATA 1613 turbo's. I am in my early 20's, so i think i am doing fine for now.

Operating a bus on a route is real hard and needs a lot of investment. 50-80 lakhs for a decent AC bus, phew !!

Any idea abt the driver's salary?? Take for example the mumbai-b'lore route.

General Expenses would be:- (1) Diesel (2) Driver/cleaner allowance and salary (3) Tyres .
The rest are expenses like tax,levies,police/politician cut etc.
So, any idea about how much a bus operator earns per trip? like say a mumbai-bangalore trip (abt 1000kms).

Cheers.
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Old 14th June 2009, 02:36   #25
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Quote:
Originally Posted by nithesh
Operating a bus on a route is real hard and needs a lot of investment. 50-80 lakhs for a decent AC bus, phew !!
and how many years before the volvo bus become old in the pathetic highways(atleast in kerala) after bearing the beatings ? 3 years before they sold it off to some local tourist bus operators?

How Bus Operator Earns Per Trip?
By Transit of goods illegally in many cases.
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Old 14th June 2009, 15:33   #26
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Great thread and insight into the commercial road transport business. With such high levies and hassles no wonder the owners do not have preventive maintenance and even the Volvo buses break down en route inter state. The Volvo bus services have broken down more than once during my trips. Not worth the hassle of being woken up at night and asked to change buses etc. But like everything else, no one gives a damn about the passenger and we are stuck between the Govt and the Bus Owners. And of course reckless drivers.
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Old 14th June 2009, 23:34   #27
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With the kind of harassment the bus operators have to take at the hands of the police, RTO and other officials, we should be happy that the private sector runs bus services - and that too at reasonable fares!
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Old 15th April 2016, 21:16   #28
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Default Re: Updated List

Quote:
Originally Posted by daj857 View Post
Price (general range - as prices can depend based on your deal with the company):
Luxura
Corona
King Long
Mercedes
Prestige ~59.0 Lakhs
Globus
B7R ~75.0 Lakhs
B9R ~87.0 Lakhs

Maintenance Costs in Rs/KM - which seems to be the preferred way to present the facts.
Luxura
Corona
King Long
Mercedes
Prestige
Globus
B7R: 4Rs/KM
B9R: 5Rs/KM
Hello Bhpians,

Apologies in advance for a selfish post.

I desperately need information on the latest figures of maintenance expenses for the Volvo B7R and B9R. This is for an academic project. I tried to get in touch with Volvo as well as various service dealers. But it doesn't look like I'll get the information on time. So I'm turning back to team-bhp

I searched for the data, mainly mileage and maintenance cost. But could not come up with any recent data. This particular thread had the relevant data. But I'm a little worried if the figures are a little outdated.

Therefore, request fellow bhp-ians to provide the latest figures of maintenance cost and mileage for the popular Volvo models, the B7R and B9R along with the prices of the completely built units.

Also, what is the life of tyres in these buses(in kms)?

Another information, which would help, is if anyone has the price for the fully built units used for Airavat Bliss by KSRTC(the units with built-in toilets)

Thanks in advance,
"A silent member who spends an average of 20 minutes on team-bhp"
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