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Rail infrastructure and wagon manufacturers in Bengal gear up for business growth, ET Infra

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Bullish on near-term business growth, rail infrastructure and wagon manufacturing companies in Bengal are taking a raft of measures to ramp up their production capacity. These companies are not only producing rolling stocks (engines and wagons) but also integrating modern technology and collaborating with foreign companies.

This year’s interim budget has given a thrust on the enhancement of rail infrastructure. The companies are also opting for capacity enhancement to implement the Centre’s “transformative vision” announced by Union finance minister Nirmala Sitharaman last month.

To boost production capacity, rail infra companies are commonly streamlining their supply chains, optimizing manufacturing processes and bolstering the internal quality assurance system. The new high-axle freight wagons manufactured by the Bengal-based companies are being designed to transport steel coils, alumina, fly ash and cars/SUVs in addition to traditional goods like coal, sand, cement, crops and others.

The order booking of Titagarh Rail Systems Ltd (TRSL), one of the leading Indian rolling stock manufacturers, is valued at Rs 27,466 crore and the company has opted for diversification of two major business segments like freight and passenger rolling stocks. Umesh Chowdhary, VC and MD of TRSL, told TOI: “We are ready to embrace the transformative vision of the Centre as was announced in the budget recently. The govt’s focus on railway corridors and PM Gati Shakti projects is a significant stride towards a developed India by 2047. The Centre’s decision to convert 40,000 rail coaches to Vande Bharat standard will ensure safety and comfort for passengers.”The company’s standalone net revenue for Q3FY24 stood at around Rs 954.6 crore with a growth of about 24.6%, while the EBITDA margin stood at 11.6% with Rs 110.6 crore – an increase of 52.3 % year-on-year (Y-o-Y) basis. The company’s net Profit stood at Rs 75 crore, an increase of 91% over Q3FY23. According to Chowdhary, the company’s manufacturing plants at Titagarh in Bengal and Bharatpur in Rajasthan rolled out 1,021 wagons last year. He said, “On a year-over-year basis the freight and the passenger rolling stocks have recorded substantial growth. The govt’s emphasis on the building of world-class rail infrastructure makes us enthusiastic about higher growth in business in coming years.” Jupiter Wagons Ltd, a manufacturer of railway wagons, coaches, wagon components and castings in the country, is working on its plan to achieve a production rate of 1,000 wagons per month by the end of this year. It has secured significant orders, worth Rs 22 billion from govt’s and private sectors. Vivek Lohia, managing director of Jupiter Wagons said, “We have signed a Rs 473 crore contract with the ministry of defence for the manufacturing and supply of 697 Bogie Open Military (BOM) wagons. Besides, there is a Rs 1,617 crore agreement with the railway ministry for the manufacturing and delivery of 4,000 bogie open wagons fitted with air brakes. We have also bagged a Rs 100 crore contract from an automobile manufacturer for manufacturing four rakes of double-decker automobile carrier wagons.”

Asked about the Centre’s new moves to boost rail infrastructure, he added: “The Centre’s proposal of three economic railway corridors – port connectivity corridor, energy, mineral and cement corridor and the high traffic density corridor – signify a pivotal step towards enhancing connectivity and driving economic growth. This year, the budget has unveiled a transformative vision for the railway sector.”

Texmaco Rail and Engineering Ltd is set to amplify its focus on operations and strengthen collaborations. Now the focus of this major in railway infrastructure development has shifted to artificial intelligence (AI) integration for enhancement of operational efficiency. Sudipta Mukherjee, managing director of the company said, “We aim to leverage the surge in demand for rolling stock with the help of innovation and AI-integrated systems. We are planning to expand the product portfolio, fortify joint ventures and intensify efforts towards sustainable solutions.”

Indrajit Mookherjee, vice chairman of Texmaco said, “We are expanding our business such as foundry products and other components for freight cars, which are mostly exported. We are also gearing up to enter the commuter mobility areas. In 2024 our mantra is business growth.”

Texmaco, which manufactures wagons, coaches, electric multiple units (EMUs), loco shells and parts and bridges, etc., has bagged a contract from Karnataka Rail Infrastructure Development Company Limited (K-RIDE) recently, to execute signaling and telecommunication utility shifting in the railway corridor from Yelahanka Junction to Devanahalli stations in Bengaluru.

Chittaranjan Locomotive Works (CLW) is ramping up its production capacity to supply more locomotives. “We have planned to produce more than 580 locomotives this year. This will include 100 Twin WAG9 locos, the most powerful locomotive in Indian Railways, for heavy freight operations with massive tractive effort of 1,020 kilo Newton. The ministry of railways has placed an order of 100 such TWIN WAG-9 locomotives for 2024-25,” said Hitendra Malhotra, general manager of CLW.

Asked about the private sector offtake of freight cars, Malhotra said, “The Indian Railways has set a goal to carry 3,000 million tonnes of freight from the existing level of 1,500 million tonnes. So, the fleet of locomotives and freight cars would need to be expanded and the private sector will also contribute to this goal.”

Cosmic Birla Group is producing several components for the wagon industry. Aditya Vikram, MD of this company said, “We manufacture yoke pins, couplers, spring steel liners, flap doors, air brake pipe fittings, bogies and other components, which we supply to our clients in Texmaco, Titagarh Rail Systems and different Indian Railways’ zones including South Eastern Railway and Eastern Railway. Our manufacturing process is spread from procuring raw materials to delivery.”

  • Published On Mar 4, 2024 at 08:30 PM IST

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