Titagarh Wagons to set up equal JV with Matiere of France

Titagarh Wagons Ltd (TWL) will set up an equal joint venture for manufacturing of metallic modular bridges with Matiere of France.

The company has signed an agreement with the proposed French partner. According to a top company source, the joint venture entity would be incorporated in India. “We would move for incorporation of the private joint venture entity next month”, the company official said. Initially, the joint venture will have a four-member board with equal representation from the partners and would chalk out broad plans.

Earlier, TWL had tried to have collaboration with a Japanese company for bridge making. However, it eventually did not work out.   TWL currently manufactures and supplies bailey bridges to the Indian defence establishment and Border Road Organisation.

Metallic modular bridges can be erected faster than the conventional bridges and Matiere is considered one of the global leaders because of its technology. The joint venture would target domestic market as well as neighbouring countries. TWL has supplied bailey bridges to Myanmar and Bangladesh.

Wagon orders

Meanwhile, TWL and its subsidiary Cimmco Ltd last month bagged Indian Railways order for supplying 2118 wagons worth Rs 302 core for the current fiscal. Cimmco individually got an order for 1264 wagon units worth Rs 180 crore.

With these orders the total order book of the Titagarh group of companies, including overseas subsidiaries, for wagons, electric trains, coaches and other engineering products, now stands at Rs 2718 crore.

Titagarh AFR SA, the French wagon designer and manufacturing subsidiary and Italian electric train and coach producing subsidiary of TWL has also been expanding markets for the group in Europe and Africa. While group bagged an order for 100 wagons from a West African nation, it is currently competing to bid for coaches from a north African country.

The subsidiary in France recorded sales of € 47.28 million and the Italian arm posted revenue of € 33.45 million in 2015-16. The French subsidiary has reported profit before tax of € 2.03 million and the Italian unit recorded € 1.13 million PBT.

Italian subsidiary in a short time span of about 9 months turned around and bagged big-ticket contracts for manufacture of electric trains, after acquisition by TWL. At home, Cimmco has begun trial marketing of 45 to 54-horse power tractors.

TWL reported a standalone net profit of Rs 6.31 crore on 2015-16 against a net profit of Rs 9.86 core in the previous year.