Texmaco Rail & Engineering India’s largest wagon manufacturer is set to expand into the passenger mobility sector by manufacturing metro coaches. The Kolkata-based company has been actively producing metro rail components and supplying them to global customers. Now Texmaco is looking to establish itself as a full-fledged manufacturer of metro coaches targeting the rapidly growing demand in India.
Texmaco’s Strategic Move Towards Passenger Coach Manufacturing
According to Indrajit Mookerjee, Executive Director and Vice Chairman of Texmaco Rail & Engineering, the company has been producing components for passenger coaches and aims to transition into full-scale manufacturing in the near future. The firm is exploring both organic and inorganic growth opportunities to expedite its entry into the metro coach market.
“We are currently manufacturing components for passenger coaches and have plans to produce complete coaches soon. The demand for metro coaches in India is rising significantly,” Mookerjee stated.
Inorganic Expansion and Strategic Acquisitions
To accelerate its expansion, Texmaco Rail is considering acquisitions and collaborations with international companies. The company recently acquired Saira Asia a 100% subsidiary of a European firm specializing in high-end railway interiors. This acquisition enhances Texmaco’s expertise in railway interiors strengthening its position in the passenger coach manufacturing industry.
“We are supplying these interior products to major coach manufacturers like BEML Ltd. Our goal is to build passenger coaches independently, and we are in discussions with multiple foreign companies to gain the necessary credentials,” Mookerjee added.
Texmaco Rail’s Market Leadership and Financial Performance
Texmaco Rail became India’s leading wagon manufacturer after acquiring Jindal Rail Infrastructure in July 2023 for approximately ₹615 crore. The company’s recent financial performance highlights its strong growth trajectory:
- Revenue Growth: Texmaco’s consolidated revenue for Q3 FY24 reached ₹1,326 crore, marking a 47.9% year-on-year increase.
- EBITDA Performance: The company posted an EBITDA of ₹139 crore reflecting a 51.7% rise compared to the previous year, with a healthy EBITDA margin of 10.5%.
- Freight Car Deliveries: Texmaco delivered 2,714 freight cars in Q3 FY24, a 54.6% increase from the 1,756 units delivered in Q3 FY23. This surge in deliveries has been a key driver of its financial success.
Future Outlook and Market Potential
The Indian government’s push for urban metro expansion presents a significant opportunity for Texmaco. Cities across India are expanding their metro networks increasing the demand for high-quality domestically manufactured metro coaches. Texmaco’s strategic focus on metro coach production aligns with the government’s ‘Make in India’ initiative, promoting local manufacturing and reducing dependence on imports.
FAQs
1. What is Texmaco Rail & Engineering’s current business focus?
Texmaco Rail is primarily India’s largest wagon manufacturer, producing freight cars and railway components. The company is now planning to enter the metro coach manufacturing sector.
2. Why is Texmaco expanding into metro coach manufacturing?
With rising demand for metro transportation in India, Texmaco sees an opportunity to leverage its expertise in railway manufacturing to enter the passenger coach sector.
3. How is Texmaco planning to enter the metro coach market?
Texmaco is exploring both organic growth and acquisitions to establish itself as a metro coach manufacturer. It recently acquired Saira Asia, a railway interiors specialist, to strengthen its capabilities.
4. What financial milestones has Texmaco achieved recently?
In Q3 FY24, Texmaco reported ₹1,326 crore in revenue, a 47.9% YoY growth, with an EBITDA of ₹139 crore. The company also delivered a record number of freight cars, driving its financial success.
5. How does Texmaco’s expansion align with India’s infrastructure growth?
With multiple metro projects underway across India, Texmaco’s entry into metro coach manufacturing supports the country’s urban transportation expansion and the ‘Make in India’ initiative.
Conclusion
Texmaco Rail & Engineering’s strategic move into metro coach manufacturing is a significant milestone in its growth trajectory. With strong financial performance, strategic acquisitions, and India’s increasing demand for metro coaches, the company is well-positioned to make a mark in the passenger rail sector. As it continues its expansion, Texmaco is poised to become a key player in India’s metro coach manufacturing industry.
