Kolkata: Titagarh Wagons Ltd has formed a joint venture with France’s Matiere SAS for manufacturing metallic and modular bridges in India. The duo plans to form a 50:50 joint venture in India.
“The Board of Directors of the Company at its meeting held on May 26, 2016 has approved execution of a joint venture agreement (JVA) with Matiere SAS, France pursuant where to a joint venture company between the joint venture partners would be incorporated in India to pursue manufacture of metallic and modular bridges in India,” said Titagarh Wagons in a BSE filing on May 27, 2016. The JV will also market its products in the neighbouring territories.
Speaking to media persons after the company’s board meeting, Titagarh Wagons vice chairman and MD Umesh Chowdhary said this business will be in addition to the manufacture of Bailey bridges that the company has been engaged in. “We are aggressively pursuing more orders for all segments of railroad rolling stock which will not only enable us to achieve the desired growth but also consolidate presence in the overseas markets,” he added.
Titagarh Wagons Limited already has an existing business of manufacture and sale of bailey bridges – portable prefabricated truss-bridges, initially designed for use by military engineering units to bridge gaps up to 200 feet in a single span. Being modular in design, bailey bridges can be supplied in completely knocked down (CKD) or semi-knocked down (SKD) conditions, thereby facilitating easy logistics, mobility and assembly with minimal aid from heavy equipment. Titagarh Wagons Limited is the only company in the private sector with necessary license for manufacturing bailey bridges in India.
The company, one of the largest private sector manufacturer of railway coaches (EMUs, MEMUs) with more than 39 per cent market share, is confident of wagon orders improving on the back of government’s investment focus on railways. Currently, they have received an order for around 2,118 wagons from Indianrailways valued Rs 302.46 crore. The total order book of the groat up currently stands at Rs 2,700 crore.
Titagarh Wagons has reported a consolidated net loss of Rs 20.2 crore in the fourth-quarter (Q4) ended March 31, which includes an exceptional loss of Rs 19.5 crore compared to a net profit of Rs 7.6 crore in the corresponding quarter previous year. The total income in the said quarter was up at Rs 316.5 crore Rs 237.8 crore while other income during the quarter under review surged to Rs 11.6 crore Rs 4.5 crore. EBITDA in Q4 stood at Rs Rs 17.6 crore Rs 22.7 crore and EBITDA margin at 7.2 per cent (7.4 per cent). Company officials claim the group achi Rs 959 crore with the French eved a turnover of subsidiary recording sales of euro 47.28 million and Italian subsidiary Titagarh Fireman Adler SPA (TFA) euro 33.45 million.