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Titagarh Rail Systems

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Titagarh Rail Systems Limited,is an Indianrolling stockmanufacturer. Established in 1984 as a rolling stock foundry unit, the company's headquarters are situated inKolkata,West Bengal.[11]Titagarh ispublicly tradedon both theBombay Stock Exchange(BSE) andNational Stock Exchange(NSE).[12][13]

Titagarh Rail Systems Limited
Company typePublic
BSE:532966
NSE:TWL
ISININE615H01020
IndustryRailways
Defence
Shipbuilding
Mining
Founded1984[1]
FounderJagadish Prasad Chowdhary
HeadquartersTitagarh Towers 756,Anandapur,E.M. Bypass,
Kolkata,West Bengal
,
India[2]
Area served
Worldwide
Key people
  • Jagadish Prasad Chowdhary
    (Chairman)[3]
  • Prithish Chowdhary
    (Non-executive Director)[4]
  • Umesh Chowdhary
    (Managing Director)[5]
Products
  • Freight wagons
  • Locomotives
  • Rolling stock
  • Mining equipment
  • Navalships
Production output
8,000 wagons[6](2020)
RevenueIncrease₹28.22 billion(US$340 million) (2023)[7]
Increase₹1.3 billion(US$16 million) (2023)[7]
Total assetsIncrease₹26.79 billion(US$340.82 million) (2022)[3]
Total equityIncrease₹8.42 billion(US$107.12 million) (2022)[3]
OwnersChowdhary family (47.05%)[8]
Number of employees
453[9](31 March 2021)
Subsidiaries
  • Titagarh Firema
  • Cimmco Limited[10]
  • Titagarh Marine Limited
Websitetitagarh.in

In 1997, the founder decided to add a bit more value to his propositions. He ventured into making entire wagons that would be used for freight, before that it used to manufacture railway components. The core operations of the company encompass providingfreight wagons,semi high-speed trains,metros,transit and propulsion systems,andpassenger coachesfor theIndian Railwaysand for the export markets as well. In addition to the design, manufacture & supply of 102 metro coaches for thePune Metroand the largest ever order for procurement of 24,177 wagons which are under execution, the company has been awarded prestigious orders by the Indian Railways for the manufacture and maintenance ofVande BharatTrains and Wheels for the same under theAtma Nirbharand Make in India initiatives of theGovernment of Indiaand is a significant enabler for railway infrastructure of the country. Beyond its substantial engagement in the railway sector, Titagarh holds business interests in shipbuilding, bridges, and defence.[14][15][16]

Overview

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Context

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The founder of Titagarh Rail Systems, Jagadish Prasad Chowdhary, commenced his professional journey as an account assistant at a tea estate inDarjeeling,West Bengal. Subsequently, he relocated to Calcutta (now Kolkata) and assumed the role of an accountant at a steel casting company that supplied materials to the Indian Railways. Chowdhary eventually assumed the position ofChief Executive Officer (CEO)of the steel castings company.

In the year 1982, Chowdhary as an entrepreneur acquired the defunct foundry division of the government-owned Britannia Engineering then under liquidation, situated in Titagarh, Barrackpore, West Bengal. Renaming the enterprise as Titagarh Steels Limited (TSL), he commenced production of railway casting components, specifically bogies and couplers & crossings and turned around the operations of the Foundry in a record time. In 1994, Chowdhary was invited to present a rehabilitation plan for the two Paper Mills of the then sick Titagarh Paper Mills Company Limited which were vested in TSL by a Scheme of Rehabilitation by theBoard for Industrial and Financial Reconstruction(BIFR). Subsequently, these Paper Mills were demerged into two separate companies through a Scheme of Arrangement sanctioned by the Hon’bleHigh Court, Calcutta.[6]

Development

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Chowdhary founded Titagarh Wagons Limited on 3 July 1997 to manufacture railway wagons.[6][17]The company started out with an annual production capacity of 180 wagons.[6]

In July 2010, Titagarh Wagons purchased the French rail wagon makerArbel Fauvet Rail(AFR) for €15 million (first overseas acquisition), which had gone intoreceivershipin February 2009.[18][19]Titagarh Wagons turned around AFR and with the subsidiary's revenue rising from₹99.5 million(US$1.2 million) in 2010–11 to₹1.64 billion(US$20 million) in 2011–12, and the employee headcount almost doubling from 85 to 150.[20]A French commercial court ordered theliquidationof AFR in July 2019. The next month, Titagarh announced that it would exit from AFR. Vice-chairman and managing director, Umesh Chowdhary, stated that AFR had been making losses of €4–5 million a year for the past three years due to general economic factors, and would have required more capital to reach profitability. Titagarh Wagons had invested₹1 billion(US$12 million) in AFR since acquiring the company.[21]

Titagarh Wagons acquired Corporated Shipyard in 2012 and merged it in Titagarh Marines to manufacture ships for theIndian Navy.Corporated Shipyard won its first defence contract in 2017.[22][23]

In 2015, Titagarh Wagons acquired the brand name andknow-howof French cast steel bogie manufacturer Sambre et Meuse.[24]On 16 July 2015, Titagarh acquired a 90% stake in Italian rail equipment firmFirema Trasportifor an estimated€25 million. The remaining 10% stake was held by Italian company Adler Plastics SpA.[25][26]In June 2017, Titagarh announced that it had acquired the 10% stake from Adler Plastics for an undisclosed amount.[27][28]The company was subsequently renamed as Titagarh Firema SpA. Titagarh Firema designs metro rail coaches and manufactures them at its factories atCaserta,SpelloandTito.[29]

In May 2016, Titagarh Wagons formed a 50/50 joint venture with French Matiere SAS to manufacture metallic and modular bridges.[30][31]Titagarh Wagons acquired Matiere's stake in July 2020, making it a wholly-owned subsidiary.[32][33]

In 2019, Titagarh Firema was awarded the contract to supply 102 aluminium bodied metro rail coaches for thePune MetrobyMaha Metro.[34]While 3 of the total 34 rakes would be manufactured at the Firema plant inItaly,the remaining 31 trainsets would be manufactured at TWL's facility inUttarpara.[35]

In April 2021, the company secured a₹3.5 billion(equivalent to₹3.9 billion or US$47 million in 2023) contract to supply rolling stock for theAhmedabad Metro.[36]

In February 2024, the company secured a₹1.7 billion(US$20 million) contract for supplying 250 specialized wagons to theMinistry of Defence.[37]

In March 2024, the company secured a₹19.09 billion(US$230 million) contract for supplying 4463 BOSM Wagons to theMinistry of Railways.[38]

Financials

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Titagarh Rail Systems Limited reported a total income of₹28.22 billion(US$340 million) during the financial year ended 31 March 2023 as compared to₹14.85 billion(equivalent to₹16 billion or US$190 million in 2023) during the financial year ended 31 March 2022. The company posted a net profit of₹1.3 billion(US$16 million) for the financial year ended 31 March 2023 as against a loss of₹3.2 million(equivalent to₹3.4 million or US$41,000 in 2023) for the financial year ended 31 March 2022.[39][3]

Subsidiaries

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  • Cimmco Limited (India)[40]
  • Titagarh Firema SpA (Italy)[40]
  • Titagarh Marine (India)[23]
  • Matiere Titagarh Bridges(India)[33]

Former subsidiaries

Joint ventures

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  • Titagarh Rail Systems Limited–Ramkrishna ForgingsJV:Ramkrishna Forgings and Titagarh Wagons consortium emerged as the lowest bidder for manufacturing and supply of approximately 1.6 million forged wheel discs for different rolling stocks of Indian Railways over a period of 20 years at about 80,000 wheels per annum.[41][42]The contract is worth₹122.26 billion(US$1.5 billion). The₹10 billion(US$120 million) manufacturing facility for fulfilment of this order is to be the second largest inAsia,with an annual production capacity of more than 200,000 wheels.[43]
  • Titagarh Rail Systems Limited–BHELJV:BHEL-Titagarh Wagons Ltd. consortium won the order for 80Vande Bharat Trainsin one of the biggest railway tenders for manufacturing- cum-maintenance of Vande Bharat Trains. Total order value for the consortium is estimated to be approximately₹250 billion(US$3.0 billion).[44]It comprised the supply of train sets for₹96 billion(US$1.2 billion) and balance amount is to be for the maintenance of the same for a period of 35 years.[45][46]
  • Titagarh Rail Systems Limited–CRRCJV:CRRC Nanjing Puzhen Co Ltda subsidiary of CRRC bagged the contract fromBangalore Metro Rail Corporation Ltdto supply 216 metro cars in December 2019. The order was worth₹15.78 billion(US$190 million).[47]The contract mandated that the Chinese company should either set up a factory in India or tie-up with an Indian company to manufacture 90% of the car. Following its inability to acquire land to set up a manufacturing base on its own, CRRC entered into a tie-up with Titagarh Wagons for the manufacturing and supply of 34 train sets from TWL's facility inUttarpara.[48][49]

Products and services

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An aluminium trainset made by Titagarh Rail Systems Limited for thePune Metro.
  • Railway freight:Rolling stock, components (bogies, couplers, locomotive shells, gears);
  • Railway transit:Rolling stock (electric locomotives,EMUtrainsets,DEMUtrainsets, metros, light rail transports, body shells, bogies, propulsion & electrical equipment);
  • Shipbuilding:Coastal research vessels, naval vessels, passenger ships, tugs, inland vessels;
  • Other engineering services:Bailey bridges, defence

See also

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References

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  2. ^"Contact".titagarh.in.Retrieved14 May2022.
  3. ^abcd"TITAGARH WAGONS LIMITED 2022 ANNUAL REPORT"(PDF).bseindia.Retrieved26 June2023.
  4. ^"Board Members".titagarh.in.Retrieved18 June2022.
  5. ^"Board Members".titagarh.in.Retrieved14 May2022.
  6. ^abcdBose, Sajal (17 November 2020)."Titagarh Wagons bets big on mobility".Business India.Retrieved15 May2022.
  7. ^ab"Titagarh Rail Systems Ltd Q4 FY2022-23 consolidated net profit jumps to Rs. 48.23 crores".EquityBulls.24 May 2023.Retrieved25 May2023.
  8. ^"Shareholding Pattern"(PDF).titagarh.in.Retrieved14 May2022.
  9. ^"Annual Report 2020-21"(PDF).titagarh.in.Retrieved14 May2022.
  10. ^"Our Group Companies | Titagarh".titagarh.in.Retrieved14 May2022.
  11. ^"Rebranding Announcement | Titagarh Wagons to focus on rail-related solutions, rebrands as Titagarh Rail Systems".cnbctv18.25 May 2023.Retrieved25 May2023.
  12. ^"Rs 93 to Rs 498: This railway stock scaled all-time high within a year".Business Today.20 June 2023.Retrieved23 June2023.
  13. ^"Titagarh Rail Systems up 2095% from March 2020 low but Antique expects another 55% upside; here's why".Mintgenie.Retrieved23 June2023.
  14. ^"Titagarh Wagons Limited".Business Standard.Retrieved19 November2018.
  15. ^"Wagon maker Titagarh forays into shipyard business".DNA India.Retrieved19 November2018.
  16. ^"Defence".titagarh.in.
  17. ^"Titagarh Wagons > Company History".moneycontrol.Retrieved15 May2022.
  18. ^"Titagarh Wagons buys French company in first overseas buy".mint.12 July 2010.Retrieved15 May2022.
  19. ^"Titagarh Wagons buys French co in first overseas buy".Reuters.12 July 2010.Retrieved15 May2022.
  20. ^"Forbes India – Titagarh Wagons' French Success".Forbes India.Retrieved15 May2022.
  21. ^abPTI (26 August 2019)."Titagarh Wagons to move out from French arm Arbel Fauvet Rail".Business Line.Chennai.Retrieved15 May2022.
  22. ^Bose, Pritam Ranjan (2 April 2018)."From metro coaches to warships, Titagarh hits the fast track".Business Line.Mumbai.Retrieved19 November2018.
  23. ^abGhaswalla, Amrita Nair (15 June 2017)."Titagarh Wagons switches track to build ships".Business Line.Chennai.Retrieved19 November2018.
  24. ^"Titagarh Freight | Titagarh".titagarh.in.Retrieved15 May2022.
  25. ^"Titagarh Wagons buys Italy-based Firema Trasporti".B2B Connect.Business Standard India.16 July 2015.Retrieved15 May2022.
  26. ^Paul, Aniek (16 July 2015)."Titagarh Wagons concludes acquisition of Italy's Firema Trasporti".mint.Retrieved15 May2022.
  27. ^Market, Capital (20 June 2017)."Titagarh Wagons acquires 10% stake in Titagarh Firema Adler SpA".Business Standard India.Retrieved15 May2022.
  28. ^"Titagarh Wagons buys out Italian partner in coach-making venture".Business Line.Chennai. 31 July 2017.Retrieved15 May2022.
  29. ^"European ops will take 12–18 months to turn profitable: Umesh Chowdhary, Titagarh Wagons".The Economic Times.24 August 2018.Retrieved19 November2018.
  30. ^"Titagarh wagons with French Matiere in 50:50 venture to make and sell metallic bridges".The Economic Times.Retrieved15 May2022.
  31. ^"Titagarh Wagons forms JV with French firm Matiere".B2B Connect.Business Standard India.30 May 2016.Retrieved15 May2022.
  32. ^"Titagarh Wagons acquires 50 pc stake of French JV partner Matiere in MTBPL".The Times of India.PTI. 15 July 2020.Retrieved15 May2022.
  33. ^abPTI (15 July 2020)."Titagarh Wagons buys 50 per cent stake of French jt venture partner Matiere in MTBPL".Business Line.Chennai.Retrieved15 May2022.
  34. ^Dixit, Sameer; Srivastava, Ritesh K (15 August 2019)."Indian multinational Titagarh Firema wins bid for supply of 102 Aluminium bodied metro rail coaches".Zee News.Retrieved15 August2019.
  35. ^"Titagarh Wagons rolls out first Pune Metro train".The Telegraph.India.Retrieved12 January2022.
  36. ^"Titagarh Rail Systems wins Rs 3.5 bn contract for Ahmedabad Metro".Construction World. April 2021.Retrieved2 September2023.
  37. ^"Titagarh Rail Systems stock surges following receipt of ₹170-crore order from Defence Ministry".Business Line.Chennai. February 2024.Retrieved19 February2024.
  38. ^"Titagarh Rail bags order worth Rs 1,909 crore".Business Standard.March 2024.Retrieved8 March2024.
  39. ^"Titagarh Rail Systems Ltd Q4 FY2022-23 consolidated net profit jumps to Rs. 48.23 crores".EquityBulls.24 May 2023.Retrieved26 May2023.
  40. ^ab"Subsidiary list".Retrieved25 February2019.
  41. ^"Ramakrishna Forging: Titagarh Wagons emerge lowest bidder in forged wheels project".The Times of India.15 March 2023.ISSN0971-8257.Retrieved7 June2023.
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  43. ^"Ramkrishna-Titagarh consortium scouting for 'optimal' sites for train wheel plant".The Economic Times.15 May 2023.ISSN0013-0389.Retrieved7 June2023.
  44. ^"BHEL-Led Consortium Bags Order For Supplying 80 Vande Bharat Trains".news.abplive.12 April 2023.Retrieved7 June2023.
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  46. ^PTI (2 March 2023)."Titagarh-BHEL consortium sets Vande Bharat trains' contract value close to Rs 25,000 crore: Official".ThePrint.Retrieved7 June2023.
  47. ^"Chinese firm to manufacture 216 Bengaluru metro coaches".Deccan Herald.21 July 2022.Retrieved7 June2023.
  48. ^"Chinese firm retains contract for 216 Namma Metro coaches".The New Indian Express.21 July 2022.Retrieved7 June2023.
  49. ^"CRRC tie-ups with Titagarh Wagons to supply 216 coaches for Bangalore Metro Phase 2".Urban Transport News.Retrieved7 June2023.
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