Medha Servo Drives, the Hyderabad-based manufacturer of rail coaches and propulsion systems for diesel and electric locomotives, has announced plans to set up a greenfield manufacturing unit in Telangana for rail and metro coaches.

Founded in 1984, the company diversified into railways in 1990, closed last financial year with a turnover of over ₹1,000 crore and supplies rail coaches and propulsion systems to railways and also exports. From its humble beginnings with a turnover of ₹25 lakh in 1990, it has grown to be a 2,000-people company.

Future demands “Given the demand for next generation coaches and potential to provide metro coaches to various upcoming projects, we have decided to set up a ₹800-crore manufacturing unit in a phased manner,” Y Kashyap Reddy, Managing Director of Medha Servo Drives, said. Medha Servo Drives today inked a pact with Telangana State Industrial Infrastructure Corporation on the proposed project for allotment of 100 acres of land at Kodangal, about 45 km from Hyderabad bordering the Sangareddy and Ranga Reddy districts.

Reddy said the company was at advanced stage of developing rail coaches that can travel at a speed of 160 km for the Integral Coach Factory.

Exports “While we are currently exporting to several countries, we are also looking at a strategic tie-up to increase exports to other markets,” he said.

The holding company, which has five companies under its fold, expects to begin works on the new project in the first quarter of 2018.

Telangana Industries Minister KT Rama Rao said the government would provide all support to the company and the upcoming project. It has potential to not only provide jobs to about 2,000 people, but also create an environment for ancillary industries.

He said the setting up of a coach and metro unit by a private firm is a significant development for the new State.

Related Topics
comment COMMENT NOW