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Texmaco Rail acquires Jindal Rail Infra for Rs 6.15 billion
Industry News- Jul 26,24
This acquisition, the largest in India’s rolling stock industry, will significantly enhance Texmaco’s manufacturing capacity, establishing it as the country's largest wagon producer.
In a major development in the railway sector, Kolkata-based rail wagon manufacturer Texmaco Rail and Engineering announced the acquisition of a 100% stake in Jindal Rail Infrastructure for Rs 6.15 billion. This acquisition, the largest in India’s rolling stock industry, will significantly enhance Texmaco’s manufacturing capacity, establishing it as the country's largest wagon producer.
"This acquisition arrives at an opportune moment, given the surge in growth in India’s wagons industry, supplemented by the government’s policy for dedicated freight corridors,” Texmaco stated.
According to a disclosure made to exchanges, Texmaco will pay Rs 4.65 billion and Rs 1.5 billion to JITF Urban Infrastructure Service Limited and Siddeshwari Tradex Private Limited, respectively. The deal is expected to be completed in 57 days or an extended period as may be agreed between the parties. In 2023-24, Jindal Rail's turnover was Rs 7.48 billion.
Founded in 2007, Jindal Rail Infrastructure, led by Prithvi Raj Jindal, one of the four Jindal brothers, has built a variety of commodity-specific, special-purpose wagons, components for coaches and locomotives, delivering over 8,600 wagons since its establishment. The company operates a 123-acre facility in Vadodara, Gujarat, which manufactured 1,650 wagons in 2023-24.
The acquisition aims to establish leadership in special-purpose private freight rolling stock both domestically and internationally, open opportunities for new product lines, and contribute to Texmaco’s presence in Western India, along with unique opportunities for enhanced exports, Texmaco informed exchanges.
Texmaco was a major bidder in the mega-wagon tender floated by the Ministry of Railways in 2022 for nearly 90,000 wagons and won the contract to supply 20,000 wagons. This latest acquisition will enable Texmaco to capture more of the rolling stock market, with Indian Railways planning a significant upgrade of its existing fleet.
Last December, Texmaco won another order to supply 3,400 wagons. "A merging of the capabilities of Texmaco and Jindal Rail will create a significant synergistic effect, allowing Texmaco to venture into new types of wagons, scale up production with minimal capex, enhance export capacity, and boost competitive advantage," the company said.
The 60 acres of available land in Vadodara will facilitate quick capacity expansion in allied businesses such as passenger mobility.
The acquisition is a strategic step to expand Texmaco's footprint across India and enhance its global presence in the railway sector. Saroj Kumar Poddar, Chairman, Texmaco, said the acquisition would expand the company's global and domestic operations.
Texmaco recently acquired a majority stake in Saira Asia, a global railway interior company, and has a joint venture with Czech freight maker Nymwag, with plans to open a new factory in Sodepur soon.
(Source: Business Standard)
Saroj Kumar Poddar
Texmaco
rail
railways
Prithvi Raj Jindal
Texmaco Rail
Jindal Rail Infra
rolling stock industry
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