KK Birla Group company Texmaco Ltd is entering metro rail coach manufacturing to tap the huge potential in the sector.
Chairman Saroj Poddar told reporters after the company?s 69th annual general meeting that ?the coaches will initially be manufactured at our existing production facility in West Bengal.? The company is looking to set up a unit at an investment of Rs 200-300 crore later on.
Texmaco?s joint venture with United Group Ltd (UGL) of Australia for manufacturing freight cars and coaches has signed a memorandum of understanding with a Japanese consortium comprising Kawasaki , Itochu and Toshiba. The JV will manufacture new-age metro rail coaches.
Poddar said the Texmaco-UGL combine is likely to be a minority shareholder in the proposed company.
Texmaco president and chief executive Ramesh Maheshwari said the company was already short listed by Kolkata Metro Rail Corp Ltd (KMRCL) for its expansion project. ?We will manufacture 64 coaches in the first phase if we win the bid,? he said.
The company has reported net sales of Rs 183.24 crore (Rs 196.83 crore) during the first quarter of the current fiscal. Gross profit (PBDT) was Rs 32.91 crore (Rs 34.73 crore), profit before tax (PBT) Rs 30.07 crore (Rs 32.28 crore) and net profit Rs 20.85 crore (Rs 22.82 crore).
