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The proposed business-restructuring plan of Titagarh Wagons Ltd (TWL) will have positive spill over for its associate Cimmco Ltd.
The restructuring plan envisaged hiving off TWL’s earth moving and mining equipment business to a wholly-owned subsidiary Titagarh Cranes Ltd (TCL).
“TCL will not have a manufacturing base. But will get the equipment produced by Cimmco through contract manufacturing agreement,” Umesh Chowdhary, Vice-Chairman and MD of TWL, told Busliness Line.
Cimmco (erstwhile Cimmco Birla), which is being nursed back to health, has unused engineering and machine building capacities.
Cimmco’s wagon plant at Bharatpur in Rajasthan are also equipped to manufacture various products including cement/mineral plant equipment, hydro mechanical equipment, pressure vessel equipment.
“We are building a new team which would focus on the earth moving and mining equipment business. As a division of wagon making TWL, it did not get enough attention”, he added.
Currently, crawler cranes and hydraulic excavators are two principal products of heavy equipment divisions of TWL.
Meanwhile, TWL also plans to shift its mechanical bridge manufacturing activity to Cimmco. “Our SPV for bridges with Kawada of Japan would also get assembled by Cimmco”, Chowdhary said.
As a part of the TWL’s restructuring, another new company – Titagarh Trains Ltd -- is also being created to look after the rail coach manufacturing.
jayanta.mallick@thehindu.co.in
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