Titagarh Wagons has received the letter of acceptance for an order for manufacture and supply of 24,177 wagons from Indian Railways. The total value of the contract is Rs 7,838 crore plus taxes.
“The order is required to be executed over a period of thirty-nine months,” Titagarh Wagons said in a stock exchange filing on Tuesday (24 May).
The company said that this is the single largest order that it has secured since its incorporation in July,1997.
The order received by the company is about 32 per cent of the total order finalised by the Indian Railways, it said.
“With the bagging of this contract, the company’s total order book stands at Rs.10,645 crore with this order and is the highest ever order book value on stand-alone basis in the history of the company,” the company said.
Speaking on the occasion, Umesh Chowdhary, Vice Chairman & Managing Director of Titagarh said “The Government had earlier announced that they would be looking at doubling their freight loading in the next few years, which was expected to lead to procurement of much larger number of wagons”.
“In line with our past market share, we were expecting to receive an order for a large quantity and this order for 24,177 wagons reaffirms the leadership position of Titagarh in this business segment and would not only increase the company’s topline and boost its financial performance but also enable the group on its path to becoming the most dependable manufacturer of rolling stock products,” Chowdhary said.
Chowdhary added that the company is also trying to develop an export market for both the freight wagons and transit train business.
International certification and application for accreditation of services have already been completed for wider acceptance of its products globally, he said.
“We have recently opened an office in America while we already have a significant presence in Europe through our Italian subsidiary involved in transit train manufacturing. We will be synergising our Indian and Italian operations to cover the global market for both the freight wagons and transit business,” he added.