Amber Group and Titagarh Rail Systems Forge Joint Venture for Train Components and Subsystems Business in India and Italy

In a strategic move, Kolkata-based Titagarh Rail Systems Limited (TRSL) and Delhi-NCR's Amber Group have announced a pioneering joint venture to enter the railway component and subsystem business. The collaboration will be realized through a special purpose vehicle (SPV), with both companies committing an investment of up to INR 120 crores each, providing equal control over the SPV.

As part of the agreement, TRSL and Amber Group's subsidiary, Sidwal Refrigeration Industries Pvt Limited, will not only establish a new railway component business in India but also make fresh equity investments in Firema, Italy. The SPV, with a focus on manufacturing critical railway components and subsystems for Railway and Metro coaches, will also witness fresh equity investments from the Government of Italy's investment arm, Invitalia.

Underlining the significance of the collaboration, Firema has granted preferred supplier status and Right of First Refusal (ROFR) for all their products to Sidwal, TRSL, and the joint venture SPV. This move sets the stage for the establishment of a new facility in India, contributing to the production of essential components and subsystems.

TRSL, a leader in the railway rolling stock space, is currently engaged in prestigious projects such as Vande Bharat trains, Surat metro, Ahmedabad metro, and Pune metro. The company aims to achieve a production capacity of 800-850 coaches per year in the near future.

Amber Group, a diversified B2B company with business verticals in Consumer Durables, Electronics (EMS), and Railway Subsystems & Mobility, is set to strengthen its position in the European market through its subsidiary, Sidwal. Sidwal, a leader in the train and metro air conditioner market, plans to leverage this strategic partnership to enter the European market.

The joint venture will also facilitate the growth of Firema, a renowned designer and manufacturer of passenger trains in Italy. With an order book nearing Euro 1 billion, Firema has plans to double its existing production capacity of 240 coaches per year. The collaboration will enable Sidwal and TRSL to support Firema's growth by supplying critical components from India, enhancing cost competitiveness.

The alliance between Titagarh Rail Systems and Amber Group envisions the establishment of facilities in India to manufacture critical components and subsystems for the railway industry. Advanced discussions are already underway to obtain technology for these components from global leaders in Europe. The components to be produced include coach interiors, coach toilets, kitchens, seats, and other vital railway subsystems, targeting a wallet share of at least 20% value or INR 150-200 lacs per passenger coach.

In their joint statement, both companies expressed commitment to the Make in India and Atmanirbhar Bharat policies, considering the partnership a significant contribution to the success of these initiatives. The collaboration is anticipated to open new avenues for growth, technology access, and global market penetration for both Sidwal and the joint venture SPV.

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