Titagarh Rail Systems, Amber Group forge alliance in railway component venture

In a landmark move poised to reshape the landscape of the railway and metro coach manufacturing industry, Kolkata-based Titagarh Rail Systems Limited (TRSL) and the Delhi-NCR headquartered Amber Group have announced a strategic partnership. This significant collaboration involves the formation of a joint venture company (JVC) or Special Purpose Vehicle (SPV) to delve into the railway component and subsystem business. Each entity is set to invest up to INR 120 crores, acquiring equal control over the SPV. This venture not only aims to establish a new facility in India for manufacturing critical railway components and subsystems but also involves fresh equity investments into Titagarh Firema SpA, Italy, an associate of the Titagarh Group. Additionally, this collaboration will see new investment from the Government of Italy’s investment arm, Invitalia, further emphasizing the international scope and significance of this alliance.

The SPV’s establishment marks a strategic expansion for both TRSL and Amber Group’s wholly-owned subsidiary, Sidwal Refrigeration Industries Pvt Limited, into the burgeoning railway and metro coach manufacturing sector. The initiative is set to bolster India’s capabilities in producing high-quality railway components, aligning with the Make in India and Atmanirbhar Bharat initiatives promoted by the Indian government. This venture is anticipated to significantly enhance the operational efficiency and global competitiveness of both Titagarh and Amber Group in the railway industry.

Titagarh Rail Systems Limited, a leading name in the railway rolling stock sector, is renowned for its expertise in manufacturing railway wagons and metro coaches. The company is actively involved in several prestigious projects across India, including the Vande Bharat trains and various metro projects in cities like Surat, Ahmedabad, and Pune. With an ambitious target to ramp up its production capacity to 800-850 coaches per year, Titagarh is poised for substantial growth in the coming years.

The Amber Group, with its diverse portfolio encompassing consumer durables, electronics, and railway subsystems & mobility, brings a wealth of experience and technological prowess to this joint venture. Sidwal, an Amber Group company, has already established itself as a leader in the train and metro air conditioner market. This strategic partnership with Firema, facilitated by the joint venture, is set to propel Sidwal into the European market, granting it preferred access to Firema’s demand and bolstering its position as a key player in the railway subsystems industry.

This strategic alliance is not just about manufacturing; it’s a comprehensive integration of resources, technology, and market access. Both companies are committed to leveraging their combined strengths to address a significant portion of the Bill of Materials (BOM) for passenger coaches, aiming for a wallet share of at least 20% value or INR 150-200 lacs per coach. This partnership is expected to yield a wide array of products for export to Europe, including train mechanical and electrical components by TRSL and HVAC, doors, gangways, and pantry systems by Sidwal.

The collaboration between Titagarh Rail Systems and Amber Group represents a significant milestone in the railway manufacturing industry, promising to deliver integrated solutions for railway subsystems in India and abroad. This alliance not only underscores the commitment of both companies to India’s manufacturing and technological prowess but also sets a new benchmark for international collaboration in the railway sector.

The strategic alliance between Titagarh Rail Systems Limited and Amber Group marks a pivotal moment in the railway manufacturing industry, both in India and globally. By pooling their resources, technologies, and market access, these two powerhouses are set to create a formidable force in the railway component and subsystem business. This partnership is a clear indication of the evolving dynamics within the global railway industry, where collaboration and integration across borders are becoming crucial for success. The investment in Titagarh Firema SpA and the involvement of the Italian government through Invitalia highlight the international importance of this venture, promising to enhance the global competitiveness of Indian railway manufacturing. As this joint venture unfolds, it will be interesting to see how it influences the global railway market and contributes to the Make in India and Atmanirbhar Bharat initiatives.