| The HIL board today approved the transfer of heavy industries division to Titagarh Wagons. |
| When contacted, the spokesperson of C K Birla group confirmed the sale of the West Bengal based wagon unit of HIL. |
| "HIL is selling the unit to the Titagarh group at a consideration Rs 1 lakh. Besides, the new owner will bear the entire gratuity liability and absorb the 800 employees of the heavy engineering division," said the spokesperson. |
| According to the spokesperson, the heavy engineering division of HIL manufactured engineering products such as excavators, cranes both hydraulic and mechanical, EOT and other types of cranes and traversers and steel structures including large diameter pipes, casting, gears and gear boxes. |
| The managing director of Titagarh Wagons, Umesh Chowdhury, when contacted, said Titagarh was in talks with the C K Birla group for the unit for last couple of months. |
| "TWL offers synergy in the wagon business while HIL does not have any synergy with the wagon unit. So this is a win win deal for both of us," he said. |
| Commenting on the future plans, he said TWL will soon work out the new investment strategy following the induction of the new unit in its fold. |
| "TWL will make additional investments but it will take some time to work out that," he added. |
| Chowdhury pointed out that amount being paid to the C K Birla group for the deal was a token amount as the unit had accumulated losses and also outstanding dues. |
| Chowdhury's TWL has manufacturing capacity of 2000 wagons per anum. TWL would now explore export markets following the acquisition of the new capacity. |
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