Titagarh Rail Systems Explained

Titagarh Rail Systems Limited
Type:Public
Traded As:
Isin:INE615H01020
Industry:Railways
Defence
Shipbuilding
Mining
Founded:1984[1]
Founder:Jagadish Prasad Chowdhary
Hq Location:Titagarh Towers 756, Anandapur, E.M. Bypass
Hq Location City:Kolkata, West Bengal
Hq Location Country:India[2]
Area Served:Worldwide
Production:8,000 wagons
Production Year:2020
Revenue: (2023)[3]
Net Income: (2023)
Assets: (2022)
Equity: (2022)
Owners:Chowdhary family (47.05%)[4]
Num Employees:453[5]
Num Employees Year:31 March 2021

Titagarh Rail Systems Limited, formerly known as Titagarh Wagons Limited, is an Indian rolling stock manufacturer in the private sector. Established in 1984 as a rolling stock foundry unit, the company's headquarters are situated in Kolkata, West Bengal.[6] Titagarh is publicly traded on both the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).[7] [8]

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 providing freight wagons, semi high-speed trains, metros, transit and propulsion systems, and passenger coaches for the Indian Railways and for the export markets as well. In addition to the design, manufacture & supply of 102 metro coaches for the Pune Metro and 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 of Vande Bharat Trains and Wheels for the same under the Atma Nirbhar and Make in India initiatives of the Government of India and 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.[9] [10] [11]

Overview

Context

The founder of Titagarh Rail Systems, Jagadish Prasad Chowdhary, commenced his professional journey as an account assistant at a tea estate in Darjeeling, 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 of Chief 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 the Board 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’ble High Court, Calcutta.[12]

Development

Chowdhary founded Titagarh Wagons Limited on 3 July 1997 to manufacture railway wagons.[13] The company started out with an annual production capacity of 180 wagons.

In July 2010, Titagarh Wagons purchased the French rail wagon maker Arbel Fauvet Rail (AFR) for €15 million (first overseas acquisition), which had gone into receivership in February 2009.[14] [15] Titagarh Wagons turned around AFR and with the subsidiary's revenue rising from in 2010 - 11 to in 2011 - 12, and the employee headcount almost doubling from 85 to 150.[16] A French commercial court ordered the liquidation of 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 in AFR since acquiring the company.[17]

Titagarh Wagons acquired Corporated Shipyard in 2012 and merged it in Titagarh Marines to manufacture ships for the Indian Navy. Corporated Shipyard won its first defence contract in 2017.[18] [19]

In 2015, Titagarh Wagons acquired the brand name and know-how of French cast steel bogie manufacturer Sambre et Meuse.[20] On 16 July 2015, Titagarh acquired a 90% stake in Italian rail equipment firm Firema Trasporti for an estimated million. The remaining 10% stake was held by Italian company Adler Plastics SpA.[21] [22] In June 2017, Titagarh announced that it had acquired the 10% stake from Adler Plastics for an undisclosed amount.[23] [24] The company was subsequently renamed as Titagarh Firema SpA. Titagarh Firema designs metro rail coaches and manufactures them at its factories at Caserta, Spello and Tito.[25]

In May 2016, Titagarh Wagons formed a 50/50 joint venture with French Matiere SAS to manufacture metallic and modular bridges.[26] [27] Titagarh Wagons acquired Matiere's stake in July 2020, making it a wholly-owned subsidiary.[28] [29]

In 2019, Titagarh Firema was awarded the contract to supply 102 aluminium bodied metro rail coaches for the Pune Metro by Maha Metro.[30] While 3 of the total 34 rakes would be manufactured at the Firema plant in Italy, the remaining 31 trainsets would be manufactured at TWL's facility in Uttarpara.[31]

In April 2021, the company secured a contract to supply rolling stock for the Ahmedabad Metro.[32]

In February 2024, the company secured a contract for supplying 250 specialized wagons to the Ministry of Defence.[33]

In March 2024, the company secured a contract for supplying 4463 BOSM Wagons to the Ministry of Railways.[34]

Financials

Titagarh Rail Systems Limited reported a total income of during the financial year ended 31 March 2023 as compared to during the financial year ended 31 March 2022. The company posted a net profit of for the financial year ended 31 March 2023 as against a loss of for the financial year ended 31 March 2022.[35]

Subsidiaries

Former subsidiaries

Joint ventures

Products and services

See also

Notes and References

  1. Web site: Titagarh Wagons Ltd.: Company Details . 28 April 2023 .
  2. Web site: Contact . titagarh.in . 14 May 2022.
  3. Web site: 2023-05-24 . Titagarh Rail Systems Ltd Q4 FY2022-23 consolidated net profit jumps to Rs. 48.23 crores . 2023-05-25 . EquityBulls.
  4. Web site: Shareholding Pattern . titagarh.in . 14 May 2022.
  5. Web site: Annual Report 2020-21 . titagarh.in . 14 May 2022.
  6. Web site: 2023-05-25 . Rebranding Announcement Titagarh Wagons to focus on rail-related solutions, rebrands as Titagarh Rail Systems . 2023-05-25 . cnbctv18.com.
  7. Web site: 2023-06-20 . Rs 93 to Rs 498: This railway stock scaled all-time high within a year . 2023-06-23 . Business Today.
  8. Web site: Titagarh Rail Systems up 2095% from March 2020 low but Antique expects another 55% upside; here's why . 2023-06-23 . Mintgenie.
  9. Web site: Titagarh Wagons Limited . Business Standard . 19 November 2018.
  10. Web site: Wagon maker Titagarh forays into shipyard business . DNA India . 19 November 2018.
  11. https://titagarh.in/service/engineering/defence
  12. Web site: Bose . Sajal . Titagarh Wagons bets big on mobility . 2022-05-15. 2020-11-17 . Business India.
  13. Web site: Titagarh Wagons > Company History . 2022-05-15 . moneycontrol.com.
  14. Web site: 2010-07-12 . Titagarh Wagons buys French company in first overseas buy . 2022-05-15 . mint.
  15. News: 2010-07-12 . Titagarh Wagons buys French co in first overseas buy. Reuters. 2022-05-15.
  16. Web site: Forbes India – Titagarh Wagons' French Success . 2022-05-15 . Forbes India.
  17. Web site: PTI . 2019-08-26 . Titagarh Wagons to move out from French arm Arbel Fauvet Rail . 2022-05-15 . Business Line. Chennai.
  18. News: Bose . Pritam Ranjan . 2 April 2018 . From metro coaches to warships, Titagarh hits the fast track . Business Line . Mumbai . 19 November 2018.
  19. News: Ghaswalla . Amrita Nair . 15 June 2017 . Titagarh Wagons switches track to build ships . Business Line. Chennai . 19 November 2018.
  20. Web site: Titagarh Freight Titagarh . 2022-05-15 . titagarh.in.
  21. News: B2B Connect . 2015-07-16 . Titagarh Wagons buys Italy-based Firema Trasporti . Business Standard India . 2022-05-15.
  22. Web site: Paul . Aniek . 2015-07-16 . Titagarh Wagons concludes acquisition of Italy's Firema Trasporti . 2022-05-15 . mint.
  23. News: Market . Capital . 2017-06-20 . Titagarh Wagons acquires 10% stake in Titagarh Firema Adler SpA . Business Standard India . 2022-05-15.
  24. Web site: 2017-07-31 . Titagarh Wagons buys out Italian partner in coach-making venture . 2022-05-15 . Business Line. Chennai.
  25. News: 24 August 2018 . European ops will take 12–18 months to turn profitable: Umesh Chowdhary, Titagarh Wagons . The Economic Times . 19 November 2018.
  26. News: Titagarh wagons with French Matiere in 50:50 venture to make and sell metallic bridges . The Economic Times . 2022-05-15.
  27. News: B2B Connect . 2016-05-30 . Titagarh Wagons forms JV with French firm Matiere . Business Standard India . 2022-05-15.
  28. News: 15 July 2020 . Titagarh Wagons acquires 50 pc stake of French JV partner Matiere in MTBPL. The Times of India . PTI . 2022-05-15.
  29. Web site: PTI . 2020-07-15 . Titagarh Wagons buys 50 per cent stake of French jt venture partner Matiere in MTBPL . 2022-05-15 . Business Line. Chennai.
  30. News: 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 . 15 August 2019.
  31. Web site: Titagarh Wagons rolls out first Pune Metro train . 2022-01-12 . The Telegraph. India.
  32. Web site: April 2021 . Titagarh Rail Systems wins Rs 3.5 bn contract for Ahmedabad Metro . 2023-09-02 . Construction World.
  33. Web site: February 2024 . Titagarh Rail Systems stock surges following receipt of ₹170-crore order from Defence Ministry. 2024-02-19 . Business Line. Chennai.
  34. Web site: March 2024 . Titagarh Rail bags order worth Rs 1,909 crore. 2024-03-08 . Business Standard.
  35. Web site: 2023-05-24 . Titagarh Rail Systems Ltd Q4 FY2022-23 consolidated net profit jumps to Rs. 48.23 crores . 2023-05-26 . EquityBulls.
  36. Web site: Subsidiary list . 25 February 2019.
  37. News: 2023-03-15 . Ramakrishna Forging: Titagarh Wagons emerge lowest bidder in forged wheels project . The Times of India . 2023-06-07 . 0971-8257.
  38. Web site: 2023-05-15 . Make in India: Titagarh Wagons-Ramkrishna Forgings consortium to set up largest wheel manufacturing plant in Asia . 2023-06-07 . Financialexpress.
  39. News: 2023-05-15 . Ramkrishna-Titagarh consortium scouting for 'optimal' sites for train wheel plant . The Economic Times . 2023-06-07 . 0013-0389.
  40. Web site: Bureau . ABP News . 2023-04-12 . BHEL-Led Consortium Bags Order For Supplying 80 Vande Bharat Trains . 2023-06-07 . news.abplive.com.
  41. News: 2023-03-03 . TWL-BHEL to mfg Vande Bharat sets . The Times of India . 2023-06-07 . 0971-8257.
  42. Web site: PTI . 2023-03-02 . Titagarh-BHEL consortium sets Vande Bharat trains' contract value close to Rs 25,000 crore: Official . 2023-06-07 . ThePrint.
  43. Web site: 2022-07-21 . Chinese firm to manufacture 216 Bengaluru metro coaches . 2023-06-07 . Deccan Herald.
  44. Web site: Chinese firm retains contract for 216 Namma Metro coaches . 2023-06-07 . The New Indian Express. 21 July 2022 .
  45. Web site: CRRC tie-ups with Titagarh Wagons to supply 216 coaches for Bangalore Metro Phase 2 . 2023-06-07 . Urban Transport News.