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With the acquisition of Italy-based Firema Trasporti, Titagarh Wagons (TWL) is now planning to aggressively participate in upcoming tenders for manufacturing metro coaches both in India and globally.
“Now we have the technology for metro coaches. We have done refurbishment work for metro coaches, but not manufactured. But, with this acquisition we would like to explore metro coach manufacturing both in India and globally,” Titagarh Wagons Vice-Chairman and Managing Director Umesh Chowdhary said.
“There will be retendering for KMRC 's (Kolkata Metro Railway Corporation) metro coaches. This is an opportunity for us. There will be opportunity for metro coach manufacturing in upcoming Lucknow, Mumbai metro projects,” he added.
Noting that Centre's proposal of PPP model for city metro projects with creation of SPV (special purpose vehicle), Chowdhary said, “Foraying into metro coach and high-speed train manufacturing at this time will add significant value to Titagarh's existing business.”
“Now we have the technology for metro coaches. We have done refurbishment work for metro coaches, but not manufactured. But, with this acquisition we would like to explore metro coach manufacturing both in India and globally,” Titagarh Wagons Vice-Chairman and Managing Director Umesh Chowdhary said.
“There will be retendering for KMRC 's (Kolkata Metro Railway Corporation) metro coaches. This is an opportunity for us. There will be opportunity for metro coach manufacturing in upcoming Lucknow, Mumbai metro projects,” he added.
Noting that Centre's proposal of PPP model for city metro projects with creation of SPV (special purpose vehicle), Chowdhary said, “Foraying into metro coach and high-speed train manufacturing at this time will add significant value to Titagarh's existing business.”
The acquisition of Firema Trasporti S.P.A based in Italy entails transfer of technology, all tangible and intangible assets and some liabilities relating to ongoing orders. The business has been acquired through an SPV Titagarh Firema Adler registered in Milan, Italy, in which Titagarh holds a 90 per cent stake and balance 10 per cent by Adler Plastics.
"The funding of about euro 20-25 million for the acquisition, new investment and operations of the company are planned primarily from internal accruals as well as proposed external borrowings,” the company said in a statement.
The company also successfully concluded issuance of equity shares by way of qualified institutional placement (QIP) . The Issue was oversubscribed by 1.9 times base book. The company allotted 15089025 equity shares of face value of Rs 2 each at Rs 99.41 per share aggregating Rs 150 crore.
“Part of the proceeds will be utilised to upgrade the Indian coach manufacturing facilities in order to absorb the technology from the newly acquired unit, and cater to the booming Indian market for metro coaches and other trains,” the company said.
