Amber Enterprises India rallied 3.66% to Rs 3885 after the firm's wholly owned subsidiary, AT Railway Sub Systems signed Joint venture (JV) agreement with Yujin Machinery, Sinkodia Pte, Dujin International to form joint venture company.
AT Railway Sub Systems Private (AT Railway), a wholly owned subsidiary of Sidwal Refrigeration Industries Private which is wholly owned material subsidiary of the company.The company will form JV to design, manufacture and develop driving gears, couplers and pantographs for rolling stock, including high-speed and metro trains, regional rapid transit systems, Vande Bharat trains, wagons, trams, and other Indian Railway products, wherein AT railway will have a majority stake in the joint venture.
This is in line with the Amber Groups consistent strategy of increasing the wallet share per coach. Sidwal, an 100% holding company of AT Railway, is one of the leading company in the manufacturing of HVAC, Pantry, Doors and Gangways for Rolling Stock. With the addition of driving gears, couplers and pantographs, the Amber Group will further enhance its wallet share in each coach, which is in line to our groups strategy.
The parties will initially invest an amount aggregating to a sum total of Rs 5 crore. As per the agreement The board of JVC shall consist of 4 directors, of which 2 directors shall be nominated by each JV Partner, post incorporation and infusion of initial subscription money by the parties to the agreement, the shareholding in the JVC, AT Railway Sub Systems will hold 55%, Yujin Machinery will hold 35% while Sinkodia Pte and Dujin International will hold 5% each.
Speaking on this latest joint venture, a spokesperson from Amber Enterprises India, said, "We are thrilled to join forces with Yujin through this joint venture, combining our strengths to become a leading manufacturer of critical rolling stock components like driving gears, couplers, and pantographs for India's rapidly expanding railway ecosystem.
This strategic partnership aligns perfectly with our vision of contributing to the Atmanirbhar Bharat and Make in India initiatives. With substantial investments planned and access to cutting-edge technology from our Korean partners, we are well positioned to capture a significant share of the lucrative railway rolling stock market while fostering an ecosystem for indigenous manufacturing, job creation, and skill development.
On 15 March 2024, Sidwal Refrigeration Industries, a wholly owned material subsidiary (WOS) of the company incorporated AT Railway Sub Systems to carry on the business of manufacturing railway components and sub systems for the rolling stock industry in India and overseas and also to expand their business into the global markets.
Amber Enterprises India is principally engaged in the business of manufacturing of consumer durable products.
The household appliance maker reported consolidated net loss of Rs 0.48 crore in Q3 FY24 as against net profit of Rs 14.15 crore posted in Q3 FY23. Revenue from operations fell 3.97% YoY to Rs 1,294.76 crore during the period under review.
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