Titagarh Wagons to bag maiden contract from Indian Navy

Titagarh Wagons Ltd (TWL), which recently merged its shipbuilding subsidiaries with itself, has emerged as the winner of the tender floated by the Indian Navy for manufacturing vessels. This is the company’s first contract from the Indian Navy. The order for building two 1000T oil tankers, to be delivered within 21 months from signing of contract, is worth about Rs 75 crore.

The group had acquired the requisite accreditations in shipbuilding through merger of its subsidiaries - Titagarh Marines Ltd and Corporate Shipyard Pvt Ltd - into itself. Post this merger, TWL is now approved as a shipbuilder by Indian Navy, Shipping Corporation of India, etc. Further, Titagarh Wagons has participated in other tenders for shipbuilding, the results of which are expected shortly.

Meanwhile, Titagarh's Italian subsidiary Titagarh Firema has also secured a new contract worth about Euro 70 million (about Rs 517 crore) for design, supply and installation of new traction system and fire protection system in the existing fleet of Trenitalia - the primary train operator in Italy. The delivery is to be completed within 55 months.

With this order, the group’s total order book now stands at about Rs 3100 crores. This includes orders for export of wagons by TWL valued at about Rs 100 crore with technology and designs provided by Titagarh Wagons AFR (TWA) - TWL's subsidiary in France. 

In addition, Titagarh Wagons - in consortium with its Italian subsidiary - was declared technically qualified in September 2016 for a tender of about Rs 850 crore for Metro Coaches. Having technically qualified in this tender has paved the way for TWL to participate in the future tenders for metro coaches, which presents a huge opportunity for Titagarh group.

“All these breakthroughs will place the group onto a strong path in diversifying its activities, which were predominantly centred towards the Indian railway wagons. Both the metro coaches and specialised shipbuilding, especially for the Indian Navy, offer a very large opportunity for the group in the future, particularly in the condition where Indian railway wagon purchases remain sluggish,” said the TWL in a press statement.