Jupiter Wagons Ltd enters into JV with Spanish firm CAF

Shobha Roy | Updated on: Jul 03, 2022


To manufacture metro coaches, urban rapid mass transit systems; plans to set up facility with ₹300 crore investment

Kolkata-based mobility solutions provider Jupiter Wagons Ltd (JWL) is looking to foray into the manufacturing of metro coaches and similar urban rapid mass transit systems along with mainline high-speed trains. It has entered into a partnership with Spanish firm CAF and is planning to set up a manufacturing facility at an estimated investment of around ₹300 crore.

According to Vivek Lohia, Managing Director, Jupiter Wagons, the company is yet to zero in on the location for the proposed unit. The investment of ₹300 crore would be jointly funded by JWL and CAF. 

The company, which has recently got itself listed on BSE and NSE via a reverse merger with CEBBCO (Commercial Engineers & Body Builders Company Ltd), currently has an order book of close to ₹4,500 crore for wagons primarily coming from Indian Railways and also some private entities.

“We have an order book of around ₹3,000 crore from Indian Railways and another ₹1,500 crore from private entities. Indian Railways is likely to come up with tenders for another 30,000-40,000 wagons. Our order book is very healthy so far and now it all depends on execution,” Lohia told  BusinessLine.

The group revenue of JWL currently stands at close to ₹1,200 crore and is expected to grow backed by a strong order book and foray into newer areas. CEBBCO, a prominent manufacturer of tipplers, trailers, and specialised defense vehicles was acquired by Jupiter Wagons via a stressed assets auction in 2019.

Efficient cash management

The consolidation will result in synergies between business operations, allowing for more efficient cash management and unrestricted access to cash flow to be deployed more efficiently to fund growth opportunities.

“As a result of the merger, JWL will be able to use its financial strength to undertake a growth phase that will include upgrading operations to meet current industry demand, expanding into new product development, and market sector consolidation,” he said.

JWL has also recently entered the electric mobility market with the launch of ‘Jupiter Electric Mobility’ (JEM) focusing on commercial EV vehicles. The company has formed a joint venture with EA GreenPower Pvt Ltd, a wholly-owned subsidiary of GreenPower Motor Company Inc.

With the JV with GreenPower, JWL seeks to align the technology assets of both the organisations by generating safety and sustainability in the EV market. “GreenPower is one of the biggest producers of commercial EV. We hope to launch a seven-tonne vehicle by the beginning of next calendar year,” he said.

Published on July 03, 2022
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