The acquisition of sick Italy-based Firema Trasporti by Titagarh Wagons has encouraged the company to modernise its coach making plant at Uttarpara, which is capable of producing India-made metro coaches.
"Now, we have the technology to manufacture metro coaches. We have done refurbishment work for metro coaches, but not manufactured.
"But, with this acquisition we will like to explore metro coach manufacturing in India," Titagarh Wagons vice-chairman and managing director Umesh Chowdhary said.
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He said that the Uttarpara plant would be modernised over the next two years to make it capable of producing import substitute metro coaches in that plant.
"There will be re-tendering 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," Chowdhary said.
TWL chairman J P Chowdhary said the company had already pumped in USD 10 million.
Chowdhary said Firema Trasporti was a sick company and it was acquired from the administrator with a lock in period of two years.
The business has been acquired through a special purpose vehicle, Titagarh Firema Adler, registered in Milan, Italy, in which Titagarh holds 90 per cent stake and balance 10 per cent by Adler Plastics.
The company has also successfully concluded issue of equity shares by way of qualified institutional placement (QIP).
The issue was over-subscribed 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.
