Texmaco targets pvt sector, exports to reduce govt dependence

Kolkata, Jan 17 (PTI) Texmaco Rail and Engineering on Friday announced steps to de-risk its business and improve margins by tapping into growing private sector wagon demand and export orders, which will reduce dependence on government wagon orders.

The engineering major aims to reduce the government’s share of its rolling stock business to 70 per cent from the current 80 per cent by 2025-26. Wagons remain a mainstay for the company, but it is gradually diversifying its portfolio.

"Earlier, government orders contributed 90 per cent of our business; now it is 80 per cent. We aim to bring it down to 70 per cent by 2025-26 without compromising on quality and ideally shift to a 60:40 ratio," Texmaco managing director Sudipta Mukherjee said on the sidelines of the 3rd Manufacturing and MSME Conclave organised by Assocham.

To achieve this goal, the company has taken strategic steps, including the acquisition of Baroda-based Jindal Rail Infrastructure for Rs 615 crore. "Our overall capacity is to produce 12,000 wagons annually in Bengal, while the Jindal unit adds a niche capacity of 2,500 wagons," Mukherjee said.

The company also plans to set up a global capability centre in Delhi to facilitate international collaborations. "Additionally, Texmaco is establishing a global supply sourcing division to act as an aggregator for railway products and components for export, which is expected to begin operations by April," Mukherjee said.

Speaking at the conclave, Mukherjee emphasised the importance of MSMEs as the backbone of the economy and highlighted the potential of the eastern region. PTI BSM MNB

Source: PTI