Jupiter Wagons acquires rolling stock wheelsets producer Bonatrans India for Rs 271cr

Jupiter Wagons Limited (JWL), a leader in delivering comprehensive mobility solutions across rail, road, and marine sectors, has made a strategic acquisition of Bonatrans India Private Limited (BIPL) for Rs. 271 Crore. This acquisition marks a pivotal moment for JWL, establishing it as the first rolling stock manufacturing company in India to possess its own wheel manufacturing plant.

Located in Chhatrapati Sambhajinagar (Aurangabad), Maharashtra, Bonatrans India is renowned for its production of rolling stock wheelsets, boasting an annual output capability of 20,000 wheels and 10,000 axles. This move significantly boosts JWL’s independence and operational efficacy, diminishing its reliance on imported wheel components. BIPL’s reputable client base encompasses leading names such as JWL itself, BEML Ltd., Alstom Rail Transportation India Pvt. Ltd., Plasser India Pvt. Ltd., and Titagarh Rail Systems Ltd.

Vivek Lohia, Managing Director of Jupiter Wagons, expressed enthusiasm about this venture, stating, “As we embark on this transformative journey, we are thrilled to announce Jupiter Wagons Limited‘s acquisition of Bonatrans India Private Ltd. This strategic move not only strengthens our position as an innovative leader in integrated mobility solutions but also propels us towards becoming a comprehensive rolling stock manufacturer.” Lohia highlighted the acquisition’s alignment with JWL’s dedication to innovation, efficiency, and customer satisfaction.

In alignment with the Indian government’s Make in India initiative, JWL is set to invest an additional Rs. 1000 crores over the coming two years to escalate production capacities and achieve full backward integration at the plant. The ambition is to transform the Indian railway sector into an export hub, leveraging JWL’s robust network of esteemed partners.

Post-acquisition, the Bonatrans Group, a leading European wheel manufacturer and a previous shareholder of BIPL, will maintain a minority shareholding. This ensures a seamless integration and continuation of the collaborative synergy within the new framework.

The transaction’s success was facilitated by the professional advisory of Shardul Amarchand Mangaldas & Co. and Ernst & Young LLP, who provided legal, financial, tax, and ESG compliance guidance, respectively.

JWL’s commitment to innovation, sustainability, and the advancement of India’s transportation sector is further underscored by this acquisition, emphasizing its intent to bolster indigenous manufacturing capabilities and enhance India’s global standing in transportation manufacturing.