Titagarh Wagons Ltd(TWL), one of India’s leading private sector wagon manufacturers, has decided to merge Titagarh Steels Limited (TSL),a listed entity engaged in the manufacture of bogies & couplers, and CMS Crossings, required for manufacture of wagons which is the mainstay of TWL’s product portfolio.
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 a 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. The coming together of the two companies would give TWL a huge scope in cost reduction through bulk buying, production synergy and optimization of manpower utilization, Chowdhury added.
