Titagarh Wagons (TWL), one of India’s leading private sector wagon manufacturers, today announced its decision to merge Titagarh Steel, an associate and listed company, with itself.
Commenting on the merger Umesh Chowdhary, vice chairman and managing director, TWL said: "The merger offers an excellent backward integration opportunity and would catapult TWL to the top of the table with registered capacity of the combined entity being way ahead of many other players in bogies manufacture, required for Wagon production."
The cost of bogies & couplers used for manufacture of wagons typically constitutes about 20 per cent of the total cost of a wagon. "Coming together of the two companies would afford TWL huge scope of reduction in costs through bulk buying, production synergy and optimization of manpower utilization," Chowdhury added.
TWL had earlier picked up stakes in an air brake manufacturing company which is another critical component of wagons.
Going as per previous year’s production at current market prices, the total requirement for bogies by TWL would be approximately to the tune of more than Rs 100 crore per year, the company claimed.
TWL is engaged in the business of manufacturing railway wagons, bailey bridges, heavy earth moving and mining equipment, steel and SG iron castings of moderate to complex configuration. It also manufactures products for the Indian Defence establishment, such as special wagons, shelters and other engineering equipment.
