Titagarh Wagons today said it has acquired French rail wagon-maker IGF Industries-Arbel Fauvet Rail (AFR) for around Rs 11.7 crore.
"Titagarh Wagons (TWL) acquired all the assets, patents, brand and business of AFR without any liabilities. This is the first ever overseas acquisition by TWL," its chairman J P Chowdhury said.
"We paid $two million euro as acquisition cost and another up to 13 million euro is been committed from us," he said.
TWL bought the wagon company through a French registered TWL subsidiary. The sale was executed by a French commercial court appointed process after the company went into liquidation.
Chowdhury said, only a Russian company had offered a higher and better offer, but as their bid was late TWL's bid was accepted by the court.
TWL would sell the wagons in the existing European and African markets and would explore other markets in the Middle East.
"We will not import wagons from the French company instead we will export components from here to them," Chowdhury said.
TWL will retain 80 employees of 226 employees of AFR. It expected to turn around the acquired company by scaling up production at the plant at Douai in northern France to 1,000 wagons a year.