Titagarh Wagons is planning a post-pandemic turnaround, targeting new markets with its India-made goods wagons and transit trains in Africa, West Asia, Southeast Asia, Australia and the Americas, with threefold growing revenue over the next three years. Used to be.
According to Umesh Choudhary, MD and CEO of Kolkata-based wagon maker, the aim is to develop an export market for both goods wagon and transit train business for the next two-three years. International certification and application for recognition of services have already been completed leading to wide acceptance of its products internationally.
“We recently opened an office in the US. We already have a presence in Europe through our Italian subsidiary involved in transit train manufacturing. So we will develop the export market where we still do not have much of a presence,” Chaudhary told Taksal.
“We are just trying to sign a contract – a small one – from our Indian operations for exports to the US. We will be synergizing our Indian and Italian operations to cover the global market for both the freight wagon and transit business.”
Titagarh’s export order to the US will be one of the first shipments of an indigenously manufactured railway product to North America – in contrast to the export of Metro Trains to countries in Europe by its Italian passenger and metro coach manufacturing subsidiary Titagarh Firema S.p.A. are sent from.
The Italian Operations Order Book stands at approx. 4,500-5,000 crore while the Indian operation order book as of December, 2021 was approx. 2,400-2,500 crores. Italian order book has nearly doubled over the past two years 2,500 crore in 2020.
According to Choudhary, to boost exports and boost domestic operations, the Indian Railways has announced its biggest ever three-year tender for sourcing around 1 lakh wagons – Titagarh’s revenue at the same rate in the following years. Should increase. For a period of three years ending March, 2021.
In that three year period (2018-19, 2019-20, 2020-21), the company saw an average revenue of approx. 900-1,000 crore — above average 300 crores in the last three years. “We expect and believe that we have sufficient means to continue on a similar growth trajectory over the next three-year period,” Chowdhury said.
The increase in revenue will also come from new business that the company has entered through acquisitions. The acquired Titagarh Wagon has been able to manufacture passenger and metro trains through its Italian acquisition and more recently through the acquisition of Precision Shipyard’s land and infrastructure located in Falta, West Bengal, exclusively for the Indian Armed Forces. The ship has gone into construction.
“With the expansion of export orders and our transit train and shipbuilding operations, the share of wagons in our total operations will fall from the traditionally high of 90% to around 45% in the next few years,” Choudhary said.
However, he added, “We are producing around 400 to 500 wagons a month, but have the potential to go up to 700.”