Titagarh Wagons buys Italy-based Firema Trasporti

Titagarh Wagons Ltd (TWL), the Kolkata-based private sector wagon manufacturer, has forayed into the metro coach and high-speed train manufacturing with the acquisition of Italian company Firema Trasporti in a deal valued at Euro 20-25 million (about Rs 138 - Rs 175 crore).
 
The company has acquired Firema Trasporti through a special purpose vehicle (SPV) Titagarh Firema Adler SpA, Italy, in which TWL holds 90 percent stake and balance 10 percent by Adler Plastics SpA. The Italian partner, Adler Plastics, will help coordinate and provide necessary local support and relationships, and will also provide modern interiors for the trains.
 
Umesh Chowdhary, vice chairman and managing director, Titagarh Wagons, said, "The acquisition of Firema's business will greatly complement Titagarh's growth strategy and will add significant value to Titagarh's existing business. While we have been making conventional EMUs for the Indian Railways, Firema has state-of-the-art trains with IGBT based 3 phase technology. Moreover, they have both stainless steel and aluminium car body technology, which is going to open the world market for the group. We are a global player in goods wagons and with this acquisition, we will be a global player in passenger trains as well."
 
Besides adding Euro 220 million to Titagarh Group's order book of Rs 878 crore (as of March 31, 2015), Firema acquisition makes TWL the first Indian company to possess high technology for manufacturing all types of rolling stocks, ie carbon steel, stainless steel and aluminium.
 
This is TWL's second acquisition in the last five years. Earlier, it had acquired the France-based Arbel Fauvet Rail (now Titagarh Wagons AFR).