Titagarh Rail Systems

In this article, we will explore the impact that Titagarh Rail Systems has had in different areas of society. Since its arrival, Titagarh Rail Systems has captured the attention of millions of people and has generated discussions around its influence in various spheres. Over the years, Titagarh Rail Systems has proven to be a relevant topic that has triggered significant changes in the way we relate, work and entertain ourselves. In this sense, it is essential to analyze how Titagarh Rail Systems has transformed our reality and what implications it has for the future. From its emergence to the present, Titagarh Rail Systems has left an indelible mark on society, which leads us to reflect on its impact and possible long-term consequences.

Titagarh Rail Systems Limited
Company typePublic
BSE: 532966
NSE: TWL
ISININE615H01020
IndustryRailways
Defence
Shipbuilding
Mining
Founded1984[1]
FounderJagadish Prasad Chowdhary
HeadquartersTitagarh Towers 756, Anandapur, E.M. Bypass,
Kolkata, West Bengal
,
India[2]
Area served
Worldwide
Key people
  • Jagadish Prasad Chowdhary
    (Chairman)[3]
  • Prithish Chowdhary
    (Non-executive Director)[4]
  • Umesh Chowdhary
    (Managing Director)[5]
Products
  • Freight wagons
  • Locomotives
  • Rolling stock
  • Mining equipment
  • Navalships
Production output
8,000 wagons[6] (2020)
RevenueIncrease ₹28.22 billion (US$330 million) (2023)[7]
Increase ₹1.3 billion (US$15 million) (2023)[7]
Total assetsIncrease ₹26.79 billion (US$340.82 million) (2022)[3]
Total equityIncrease ₹8.42 billion (US$107.12 million) (2022)[3]
OwnersChowdhary family (47.05%)[8]
Number of employees
453[9] (31 March 2021)
Subsidiaries
  • Titagarh Firema
  • Cimmco Limited[10]
  • Titagarh Marine Limited
Websitetitagarh.in

Titagarh Rail Systems Limited is an Indian rolling stock manufacturer. Established in 1997 as a rolling stock foundry unit, the company's headquarters are situated in Kolkata, West Bengal.[11] Titagarh is publicly traded on both the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).[12][13]

Going forward, the founder decided to add a bit more value to his propositions. He ventured into making entire wagons that would be used for freight, before that it used to manufacture railway components. The core operations of the company encompass providing freight wagons, semi high-speed trains, metros, transit and propulsion systems, and passenger coaches for the Indian Railways and for the export markets as well. In addition to the design, manufacture & supply of 102 metro coaches for the Pune Metro and the largest ever order for procurement of 24,177 wagons which are under execution, the company has been awarded prestigious orders by the Indian Railways for the manufacture and maintenance of Vande Bharat Trains and Wheels for the same under the Atma Nirbhar and Make in India initiatives of the Government of India and is a significant enabler for railway infrastructure of the country. Beyond its substantial engagement in the railway sector, Titagarh holds business interests in shipbuilding, bridges, and defence.[14][15][16]

Its major rivals in railway division are Alstom, BEML, CAF etc.

Overview

Context

The founder of Titagarh Rail Systems, Jagadish Prasad Chowdhary, commenced his professional journey as an account assistant at a tea estate in Darjeeling, West Bengal. Subsequently, he relocated to Calcutta (now Kolkata) and assumed the role of an accountant at a steel casting company that supplied materials to the Indian Railways. Chowdhary eventually assumed the position of Chief Executive Officer (CEO) of the steel castings company.

In the year 1982, Chowdhary as an entrepreneur acquired the defunct foundry division of the government-owned Britannia Engineering then under liquidation, situated in Titagarh, Barrackpore, West Bengal. Renaming the enterprise as Titagarh Steels Limited (TSL), he commenced  production of railway casting components, specifically bogies and couplers & crossings and turned around the operations of the Foundry in a record time. In 1994, Chowdhary was invited to present a rehabilitation plan for the two Paper Mills of the then sick Titagarh Paper Mills Company Limited which were vested in TSL by a Scheme of Rehabilitation by the Board for Industrial and Financial Reconstruction (BIFR). Subsequently, these Paper Mills were spun off into two separate companies through a Scheme of Arrangement sanctioned by the Hon’ble High Court, Calcutta.[6]

Development

Chowdhary founded Titagarh Rail Systems Limited on 3 July 1997 to manufacture railway wagons.[6][17] The company started out with an annual production capacity of 180 wagons.[6]

In July 2010, Titagarh Rail Systems purchased the French rail wagon maker Arbel Fauvet Rail (AFR) for €15 million (first overseas acquisition), which had gone into receivership in February 2009.[18][19] Titagarh Rail Systems turned around AFR and with the subsidiary's revenue rising from ₹99.5 million (US$1.2 million) in 2010–11 to ₹1.64 billion (US$19 million) in 2011–12, and the employee headcount almost doubling from 85 to 150.[20] A French commercial court ordered the liquidation of AFR in July 2019. The next month, Titagarh announced that it would exit from AFR. Vice-chairman and managing director, Umesh Chowdhary, stated that AFR had been making losses of €4–5 million a year for the past three years due to general economic factors, and would have required more capital to reach profitability. Titagarh Rail Systems had invested ₹1 billion (US$12 million) in AFR since acquiring the company.[21]

Titagarh Rail Systems acquired Corporated Shipyard in 2012 and merged it in Titagarh Marines to manufacture ships for the Indian Navy. Corporated Shipyard won its first defence contract in 2017.[22][23]

In 2015, Titagarh Rail Systems acquired the brand name and know-how of French cast steel bogie manufacturer Sambre et Meuse.[24] On 16 July 2015, Titagarh acquired a 90% stake in Italian rail equipment firm Firema Trasporti for an estimated €25 million. The remaining 10% stake was held by Italian company Adler Plastics SpA.[25][26] In June 2017, Titagarh announced that it had acquired the 10% stake from Adler Plastics for an undisclosed amount.[27][28] The company was subsequently renamed as Titagarh Firema SpA. Titagarh Firema designs metro rail coaches and manufactures them at its factories at Caserta, Spello and Tito.[29]

In May 2016, Titagarh Rail Systems formed a 50/50 joint venture with French Matiere SAS to manufacture metallic and modular bridges.[30][31] Titagarh Rail Systems acquired Matiere's stake in July 2020, making it a wholly-owned subsidiary.[32][33]

In 2019, Titagarh Rail Systems was awarded the contract to supply 102 aluminium bodied metro rail coaches for the Pune Metro by Maha Metro.[34] While 3 of the total 34 rakes would be manufactured at the Firema plant in Italy, the remaining 31 trainsets would be manufactured at TRSL's facility in Uttarpara, Kolkata.[35]

In April 2023, the company secured a ₹3.5 billion (equivalent to ₹3.9 billion or US$46 million in 2023) contract to supply rolling stock for the Ahmedabad Metro.[36]

In February 2024, the company secured a ₹1.7 billion (US$20 million) contract for supplying 250 specialized wagons to the Ministry of Defence.[37]

In March 2024, the company secured a ₹19.09 billion (US$220 million) contract for supplying 4463 BOSM Wagons to the Ministry of Railways.[38]

Financials

Titagarh Rail Systems Limited reported a total income of ₹38.53 billion (US$450 million) during the financial year ended 31 March 2024 as compared to ₹27.8 billion (US$320 million) during the financial year ended 31 March 2023. The company posted a net profit of ₹2.97 billion (US$35 million) for the financial year ended 31 March 2024 as against a profit of ₹1.03 billion (US$12 million) for the financial year ended 31 March 2023.[39][3]

Subsidiaries

  • Titagarh Singapore Pte. Ltd. Singapore
  • Titagarh Firema Engineering Services Private Limited.

Joint ventures

  • Titagarh Rail Systems Limited– Ramkrishna Forgings
  • Titagarh Rail Systems Limited– BHEL
  • Shivaliks Mercantile Private Limited
  • Titagarh Mermac Private Limited

Associate Company

  • Titagarh Firema SpA, Italy

Products and services

An aluminium trainset made by Titagarh Rail Systems Limited for the Pune Metro.
  • Freight Rail Systems: Rolling stock, Components (Bogies, Couplers, Locomotive shells, Gears);
  • Passenger Rail Systems: Rolling stock (Electric locomotives, EMU trainsets, DEMU trainsets, Metros, Light rail transports, Body shells, Bogies, Propulsion & electrical equipment);
  • Shipbuilding: Coastal research vessels, Naval vessels, Passenger ships, Tugs, Inland vessels;
  • Defence: Bailey bridges, Defence
  • Safety & Signaling Systems: Train control, Condition monitoring, Vehicular & train mounted solutions

See also

References

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  2. ^ "Contact". titagarh.in. Retrieved 14 May 2022.
  3. ^ a b c d "TITAGARH WAGONS LIMITED 2022 ANNUAL REPORT" (PDF). bseindia.com. Retrieved 26 June 2023.
  4. ^ "Board Members". titagarh.in. Retrieved 18 June 2022.
  5. ^ "Board Members". titagarh.in. Retrieved 14 May 2022.
  6. ^ a b c d Bose, Sajal (17 November 2020). "Titagarh Wagons bets big on mobility". Business India. Retrieved 15 May 2022.
  7. ^ a b "Titagarh Rail Systems Ltd Q4 FY2022-23 consolidated net profit jumps to Rs. 48.23 crores". EquityBulls. 24 May 2023. Retrieved 25 May 2023.
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  9. ^ "Annual Report 2020-21" (PDF). titagarh.in. Retrieved 14 May 2022.
  10. ^ "Our Group Companies | Titagarh". titagarh.in. Retrieved 14 May 2022.
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  14. ^ "Titagarh Wagons Limited". Business Standard. Retrieved 19 November 2018.
  15. ^ "Wagon maker Titagarh forays into shipyard business". DNA India. Retrieved 19 November 2018.
  16. ^ "Defence". titagarh.in.
  17. ^ "Titagarh Wagons > Company History". moneycontrol.com. Retrieved 15 May 2022.
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  19. ^ "Titagarh Wagons buys French co in first overseas buy". Reuters. 12 July 2010. Retrieved 15 May 2022.
  20. ^ "Forbes India – Titagarh Wagons' French Success". Forbes India. Retrieved 15 May 2022.
  21. ^ PTI (26 August 2019). "Titagarh Wagons to move out from French arm Arbel Fauvet Rail". Business Line. Chennai. Retrieved 15 May 2022.
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  30. ^ "Titagarh wagons with French Matiere in 50:50 venture to make and sell metallic bridges". The Economic Times. Retrieved 15 May 2022.
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  36. ^ "Titagarh Rail Systems wins Rs 3.5 bn contract for Ahmedabad Metro". Construction World. April 2021. Retrieved 2 September 2023.
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