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TRSL to exploit export market amidst China Plus One; expand global reach
Industry News- Jul 15,24
A team from Titagarh has been exploring business opportunities in South and Southeast Asia, West Asia, Africa, the US, and South America.
Titagarh Rail Systems, the leading manufacturer of freight wagons in India, is strategically focusing on the export market amidst the global push to diversify supply chains away from China, known as the China Plus One strategy. This move aims to boost its presence in the international passenger rail segment.
The Kolkata-based company, which already has a foothold in Europe through its Italian subsidiary Titagarh Firema, plans to expand the global reach of its ‘Make in India’ products.
Prithish Chowdhary, Deputy Managing Director, Titagarh Rail Systems Limited, emphasised the significant growth potential in the export market, particularly for passenger rail systems.
"With the global sentiment shifting towards China Plus One, there's a declining interest in procuring from China. Indian companies can capitalise on the substantial cost advantages over European firms in engineering and manufacturing rail systems. We are committed to aggressively pursuing the export market," Chowdhary stated to the source.
A team from Titagarh has been exploring business opportunities in South and Southeast Asia, West Asia, Africa, the US, and South America.
"We are nearing the completion of a prototype for a converter, a crucial technological component for Rome's metro system, being developed in Uttarpara. Historically, high-tech items were made in Europe and assembled in India, but for the first time, we are producing them entirely in India for use in a European metro system. Our goal is to 'Make in India, Make for the World,' and we firmly believe in this vision," Chowdhary added.
Looking ahead, the company aims to stabilise its position in the Indian passenger rail market before fully venturing into exports within the next 1-2 years.
Titagarh Rail Systems' stock has surged, buoyed by a strong order book for Vande Bharat sleeper and metro coaches. The company plans to expand its manufacturing capacity to 850 coaches per year by FY28 and has earmarked Rs 7 billion for capital expenditure in the sector. Its freight segment remains robust, maintaining a 30% market share.
In FY24, the company reported a consolidated turnover of Rs 39 billion and a profit of Rs 2.89 billion. Recently, BlackRock Global Funds acquired a 1.6% stake via block deals.
Titagarh aims to achieve a 60:40 revenue mix between passenger and freight segments over the next five years, transitioning from the current 10:90 ratio. The company has partnered with Chinese railways to manufacture stainless steel metro coaches and aspires to become the country's leading producer with a capacity of 72 coaches per month. Additionally, it is working on the backward integration of the metro propulsion system, which is currently imported.
(Source: Business Today)
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