Titagarh Wagons Ltd bags single largest order ever from IR for 24,177 wagons worth Rs. 7,838 crore
Titagarh Wagons Limited (TWL) has received the letter of acceptance (LOA) for an order for manufacture and supply of 24,177 Wagons from Indian Railways consisting of 19,854 BCNA Wagons and 4,323 BOXNHL Wagons.
The total value of the contract is INR 7,838 crore plus taxes. The order is required to be executed over a period of 39 months.
This is the Single Largest Order the Company has secured since its incorporation in July, 1997 and it further consolidates the Group’s position as the leader in Wagon manufacturing in India.
The order received by the Company is about 32% of the total order finalised by the Indian Railways thereby reaffirming the leadership position of the Company in Wagon manufacturing in the Country.
While the Company possesses the necessary infrastructure and capacity to supply the Wagons against this order, and is further augmenting its facilities to optimise production costs and efficiencies.
With the bagging of this contract, the Company’s total order book stands at Rs. 10,645 crore with this order and is the highest ever order book value on a stand-alone basis in the history of the Company.
Speaking on the occasion, Mr Umesh Chowdhary, Managing Director & CEO of Titagarh Wagons Ltd. said, “The Government had earlier announced that they would be looking at doubling their freight loading in the next few years, which was expected to lead to procurement of a much larger number of wagons. In line with our past market share, we were expecting to receive 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.”
“I am especially excited by this development in the silver jubilee year of the Company’s operations and thank the Indian Railways for this delightful coincidence. The resolve of the Government of India to make the Country Atma-Nirbhar is really commendable and the procurement of Wagons by the Indian Railways is an integral part of the program: ‘Make in India’. Titagarh has pledged to contribute to such program of the Government of India with full sincerity”, Mr Chaudhary said.
Mr Umesh Chowdhary added: “Titagarh 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. We will be synergising our Indian and Italian operations to cover the global market for both the freight wagons and transit business”.
“The speed with which the Railways are modernising and upgrading themselves is a testimony to the great and visionary leadership of our Hon’ble Prime Minister and the Hon’ble Railway Minister who have decided to increase the market share of the Railways from the current 20 odd percent to 40%. This obviously would result in a sustained demand for wagons in the years to come”, he said.
He further added that, “Titagarh Wagons was pursuing all the three business verticals actively i.e. freight, which now has an order book of about Rs. 8,970 crore, but also the transit and propulsion with an order book of about Rs. 1,225 crore and Shipbuilding – Bridges – Defence (SBD) with an order book of about Rs. 450 crore. Our aim and target will be to make each of the business vertical grow to around 20-25% of the total size of the company and we will continue to work towards that”.
Mr J. P. Chowdhary, Executive Chairman observed – “Titagarh would continue to participate in various other tenders for Railway Wagons and Metro Coaches in India in addition to the focus on Propulsion vertical. There is tremendous potential for growth thanks to the continued thrust and support provided by the Government of India to the Indian companies under schemes such as ‘Make in India’. We at Titagarh are committed to our Prime Minister’s vision and dream of making India truly ‘Atma Nirbhar’ and will continue to work tirelessly towards this path of nation’s development”.
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