Titagarh Wagons has received a letter of acceptance for an order for the manufacture and supply of 24,177 wagons from Indian Railways. The total value of the contract is Rs 7,838 crore plus taxes.
“The order is required to be executed over thirty-nine months,” the wagons manufacturer said in a stock exchange filing on Tuesday. The company said this was the “single largest order” it has secured since its incorporation in July 1997, and it further consolidated the group’s position as the leader in wagon manufacturing in India.
Speaking on the occasion, Umesh Chowdhary, vice chairman & managing director, said the government had earlier announced that it would be looking at doubling freight loading in the next few years, which was expected to lead to the procurement of a much larger number of wagons. “In line with our past market share, we were expecting to receive an order for a large quantity and this order for 24,177 wagons reaffirms the leadership position of Titagarh in this business segment and would not only increase the company’s topline and boost its financial performance but also enable the group on its path to becoming the most dependable manufacturer of rolling stock products,” Chowdhary said.
The company is also trying to develop an export market for both the freight wagons and transit train business. “International certification and application for accreditation of services have already been completed for wider acceptance of its products globally. We have recently opened an office in America while we already have a significant presence in Europe through our Italian subsidiary involved in transit train manufacturing,” Chowdhary said, adding the company will be synergising its Indian and Italian operations to cover the global market for both the freight wagons and transit business.
The company had posted a net loss of Rs 18.79 crore for FY21, on a consolidated basis, while its revenue from operations was Rs 1,520.64 crore.