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Ramkrishna Forgings Limited and Titagarh Rail Systems Limited consortium wins contract to supply 1.54 million forged wheels

Posted On : 2023-06-15 22:24:24( TIMEZONE : IST )

Ramkrishna Forgings Limited and Titagarh Rail Systems Limited consortium wins contract to supply 1.54 million forged wheels

A consortium between Ramkrishna Forgings Limited (RKFL) and Titagarh Rail Systems Limited (TRSL), has been awarded the contract to manufacture and supply 15,40,000 forged wheels over a span of 20 years, under the AatmaNirbhar Bharat Initiative by Ministry of Railways, Government of India. The contract will see the consortium delivering 40,000 forged wheels during the first year, 60,000 wheels in the second year and 80,000 wheels every subsequent year thereafter, with the total contract valued at ₹12,226.5 crores.

An initiative to reduce India's reliance on importing wheels from foreign countries, the AatmaNirbhar Bharat Initiative has facilitated manufacturing opportunities for Indian firms to build and supply quality forged wheels to the Indian Railways. Aligning with the Government's vision and dream of making India truly self-reliant, the Indian Railways eventually aims to achieve 100% localization of wheel production through private Indian entities and cater to future growth in demand entirely through domestic production.

The wheels manufactured under this agreement will cater to the requirements of multiple platforms, such as the LHB coaches, WAG9 Locomotives, Vande Bharat Express Trains, etc. The RKFL-TRSL consortium will be establishing a state-of-the-art manufacturing facility to manufacture these forged wheels, with total annual production targeted at 2,00,000 wheels when fully operational. Not only will this facility address the demands of the domestic railway sector, but also help the consortium address the latent demand from the private sector as well as export markets.

The successful execution of this project will require a capital expenditure ranging from ₹ 1,000 to ₹1,200 Crores. To meet this financial requirement, both companies will contribute equity on an equal basis, ensuring a robust funding structure to support the project's capital expenditure needs.

Commenting on this momentous occasion for Ramkrishna Forgings Limited (RKFL), Managing Director Mr. Naresh Jalan, said, "We are honored to have been selected by the Ministry of Railways for this extraordinary undertaking. This project stands as a testament to our unwavering dedication to promoting indigenous manufacturing and fostering self-reliance. By harnessing our collective capabilities and wealth of experience, we are steadfast in our commitment to deliver unparalleled products that will significantly enhance the performance and safety of the Indian rail network. With a resolute vision to contribute to the growth of the Indian railways and cultivate self-sufficiency, our consortium eagerly anticipates establishing a long-term partnership with the Ministry of Railways."

Commenting on this momentous occasion for Titagarh Rail Systems Limited (TRSL), Vice Chairman & Managing Director Mr. Umesh Chowdhary, said, "We are delighted to have been awarded this landmark contract and are gunning to commence production at the earliest. As a partner in the winning consortium, we at TRSL are wholly committed to realizing the Honourable Prime Minister's vision of an Aatmanirbhar Bharat and will be resolute in our efforts to indigenize production of forged wheels in our country. With this contract, the Titagarh group is staying true to its motto of providing quality mobility solutions and strives to cement its status as a world-class service provider for the infrastructure sector."

Shares of Titagarh Wagons Limited was last trading in BSE at Rs. 416.20 as compared to the previous close of Rs. 416.40. The total number of shares traded during the day was 55532 in over 2713 trades.

The stock hit an intraday high of Rs. 421.60 and intraday low of 409.95. The net turnover during the day was Rs. 23058444.00.

Source : Equity Bulls


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