The Hindu Business Line : GE arm picks 15% in Titagarh Wagons

New Delhi, July 23 In order to gain access to the fast growing rail wagon manufacturing and leasing market in India, GE Equipment Services (GEES) and Commercial Finance has picked up 15 per cent equity in Titagarh Wagons Ltd (TWL) for an undisclosed sum.

This stake would provide GE Equipment Services a preferred access to Titagarh-manufactured wagons. GE Equipment Services would also become the preferred provider of vendor financing for Titagarh.

Simply put, companies (like container operators or large freight users who invest in wagons under Railways’ wagon investment scheme) that lease wagons from GE or finance their purchase through GE are likely to get faster delivery and other value added services.

The current wait time for a new wagon is approximately 18 months. Meanwhile, Titagarh Wagons maintained that despite the preferential treatment meted out to GE Equipment Services for delivery, TWL would keep its other commitment to its customers for deliveries.

“We have a certain buffer capacity. If required, we would use the buffer capacity to supply wagons to GE Equipment Services,” said Mr Umesh Chowdhary, Managing Director, TWL.

TWL is also planning to raise some funds by going public.

This is the first equity investment by GE in the Indian transport sector, GEES India President, Mr Dhananjay Nalawade, told reporters here on Monday, adding that GE Equipment Services is the owner and lessor of more than 2-lakh rail wagons and intermodal assets in North America and Europe.

Wagon maintenance unit and wagon leasing to Indian Railways are other plans that the company may undertake if the Government permits. It also wants to provide higher capacity wagons to Indian Railways for the dedicated freight corridor project.

At present, Indian Railways takes wagon on lease from its financing arm Indian Railways Finance Corporation (IRFC) only.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Rain Calcining to end pact with Oxbow

Punj Lloyd venture order

Shyam Telecom shareholders in a fix over non-listing of Telelink shares

Bhagyanagar de-merger okayed

Taro shareholders given time on Sun Pharma’s proposal

GE arm picks 15% in Titagarh Wagons

OVL eyes Transmeridian’s oilfield in Kazakhstan

Nalco eyes cement manufacturing

Ratnagiri may start power generation using gas as feedstock by mid-Aug

Astonfield plans India projects worth $1.5 b

Degremont bullish on India