The Hindu Business Line : ChrysCapital picks up 10 pc in Titagarh Wagons

The Kolkata-based Titagarh Wagons Ltd (TWL), a leading manufacturer of Railway wagons, modular steel bridges, and other engineering products, has received private equity investment from ChrysCapital.

After the transaction, ChrysCapital would hold a little over 10 per cent stake in TWL. The investment is estimated to be in the region of $10-15 million.

Mr Sanjay Kukreja, Principal, ChrysCapital, said: "Titagarh is uniquely placed with a significant and fast growing market share in an industry with very good growth prospects for several years."

He added: "The trends in the sector are very positive, with massive investments being made in Railway infrastructure and container logistics business in India. Titagarh Wagons is emerging as an industry leader and we are very excited to partner Titagarh in its high growth aspirations."

This is not the first strategic investment in TWL, which plans to go public in 3-9 months.

Another private equity firm and a hedge fund already hold about 14 per cent stake in the company.

According to Mr JP Chowdhary, Chairman of TWL, it has charted out an aggressive growth plan involving an investment of about Rs 100 crore. "Our plans include setting up a greenfield facility and we are also looking at acquisitions in both India and overseas."

TWL ended the last fiscal with a turnover of Rs 129 crore and has already achieved turnover of Rs 75 crore in the first quarter of the current year.

The company is eyeing a turnover of Rs 400 crore in the current fiscal.

It recently purchased the heavy engineering division of the Kolkata-based Hyderabad Industries Ltd, and plans to start manufacturing various types of passenger coaches and metro coaches in the same.

ChrysCapital manages around $1 billion across four funds and its past investments include MphasiS, Spectramind, Suzlon, Gammon, and UTI Bank.

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