Texmaco to diversify its business – to manufacture the Locomotives

Kolkata:  Wagon manufacturer Texmaco Rail & Enginering Ltd (TREL) may start manufacturing locomotives. Saroj Poddar, Chairman of TREL told that the company planned to go in for a technical collaboration with an overseas company within three years for the project.

“We are working towards the direction of manufacturing new generation locomotives (railway freight cars and coaches). We have identified the technological partner and have, in-principle, decided for a collaborative partnership”, Poddar said. He, however, clarified that a formal agreement has yet to be signed with the proposed partner.

“Since the negotiations are under a secrecy clause, further details cannot be disclosed at this point in time”, Poddar explained.

Railways’ orders

TREL has a 50:50 export-oriented joint venture project with Australia’s UGL Rail for manufacture of locomotive components and sub-assemblies. The plant is north of the city and near Texmaco’s existing facilities.

The proposed project would be independent of the joint venture, Poddar said.

During the first half of FY14, Texmaco has largely been manufacturing wagons for export and the domestic private sector. “The order from Railways has not been forthcoming. We are trying to reduce our dependence on the Railways. We are optimistic about the future of order flow from the Railways as well as private sector as economic downturn appears to be ending”, he added.

Ramesh Maheshwari, Vice-Chairman, said demand for automobiles carrying rakes and twin-deck wagons were likely to increase.

Poddar said Texmaco’s 140-acre land in Uluberia near here, planned to be turned into a food processing industry hub, was still stuck in a legal wrangle .

An out-of-court settlement proposal submitted to the State Government has not yet yielded results, Poddar said.

Texmaco’s hived off realty and investment unit Texmaco Infrastructure & Holdings Ltd also has not been able to start development at its five-acre land parcel in Delhi. “There are a few pending issues. We hope sort them out – particularly those with the Delhi Development Authority in the near future.”