AT Railway Sub Systems to form railway infrastructure JV with South Korea’s Yujin Machinery
In a landmark move poised to reshape the landscape of India’s railway infrastructure, AT Railway Sub Systems Private Limited (“AT Railway”), a wholly owned subsidiary of Sidwal Refrigeration Industries Private Limited (“Sidwal”)—which, in turn, is a material subsidiary of Amber Enterprises India Limited (“Amber”)—has inked a strategic joint venture with South Korea’s Yujin Machinery Ltd. (“Yujin”). This collaboration is set to expand the group’s key offerings in railway subsystems, including the development of Pantographs, Couplers, and Driving Gears.
The deal marks a significant stride towards enhancing the capabilities of the Indian railway sector, allowing for the domestic design, manufacture, and development of critical components for a variety of railway products such as high-speed and metro trains, regional rapid transit systems, Vande Bharat trains, wagons, trams, and more. With AT Railway holding a majority stake in this venture, the partnership is a testament to the increasing footprint of Indian companies in technical and manufacturing prowess on a global scale.
This joint venture is not just about the expansion of product lines but signifies a major leap in acquiring the essential technical know-how for manufacturing advanced railway components in India. Sidwal, renowned for its manufacturing capabilities in HVAC, Pantry, Doors, and Gangways for Rolling Stock, by incorporating driving gears, couplers, and pantographs into its portfolio, aligns with Amber Group’s strategy to augment its wallet share per coach.
The significance of this development extends beyond the corporate realm; it resonates with the ‘Make in India’ and ‘Atmanirbhar Bharat’ initiatives advocated by the Government of India. It represents a pivotal move towards reducing dependency on multinational corporations (MNCs) for railway infrastructure, thereby advancing domestic capabilities in design and manufacturing.
A spokesperson from Amber Enterprises India Ltd. emphasized the synergy between AT Railway and Yujin, stating, “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.”
This venture arrives at an opportune moment, coinciding with the Indian Government’s increased focus on upgrading railway infrastructure. The interim budget for the fiscal year 2024-25 has allocated a record Rs 2.55 lakh crore to the Indian Railways, up 5.8% from the previous year, underlining the sector’s pivotal role in the nation’s economic and infrastructural development. The market for railway subsystems in India is estimated to be around INR 75,000 – 80,000 crores over the next five to six years, indicating a substantial opportunity for growth and innovation.
In essence, this joint venture between AT Railway and Yujin Machinery is a significant milestone for India’s railway sector, promising to bring about a new era of indigenous manufacturing capabilities, enhanced product offerings, and a stronger alignment with national development initiatives.