The Hindu Business Line : Amtek Auto to produce 5,000 wagons for Rlys

New Delhi, March 22 Amtek Auto Ltd, the Rs 1,000-crore plus auto parts maker that struck an equal joint venture with a leading North American wagon supplier American Rail Car Industries, said that it would set up a capacity to produce 5,000 wagons. Promoted by billionaire investor Mr Carl Icahn, American Railcar Industries Inc is into designing, and manufacturing of railcars.

“When our plant would get operational in June 09, initially we would produce 2,000 freight wagons. In the next three to four years, the plant would run at its optimum capacity of 5,000 wagons,” said Mr Santosh Singhi, Chief Financial Officer, Amtek.

Proposed capacity

Mr Singhi said the proposed capacity would be primarily to supply to the Indian Railways. Recently in the Union Budget, the Railways had announced plans to procure 20,000 wagons this year. The two major players Titagarh Wagons and Texmaco individually have the capability to produce around 1,800-2,000 wagons.

“With supplies being less, the Railways is looking at large corporate houses with technical and financial strength. At a price of around Rs 30-40 lakh per wagon, we expect to clock a business of Rs 700 crore at an initial capacity of 2,000 units,” he said.

Component business

Amtek, diversifying from its component business for automobiles to equipment for railways, surface transport and aero space, is also setting up forgings, casting and machining facilities by itself to manufacture components for wagons and other railway application.

This would be through a separate transport division, through which the company expects to garner sales of Rs 1,500 crore over the coming four-five years.

Amtek is exploring opportunities for acquisitions in the US and Europe for the transport division, which is in the process of being set up, to provide back-end services in these markets.

Earlier, the company had acquired the UK-based JL French’s (Witham) Ltd, Aluminium Foundaries (UK), Zielter (a turbo charger manufacturing company in Europe), GWK (in the UK) and Smith Jones (in the US) to boost its auto component business.

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