"Titagarh Rail Systems Stock Surges on ₹170-Crore Defence Ministry Order"

Titagarh Rail Systems Ltd has recently clinched a significant contract from the Defence Ministry worth ₹170 crore. The contract entails the procurement of 250 specialized wagons and is slated to be executed over a period of 36 months, as per a disclosure made in a stock exchange filing.

This development comes on the heels of the company's strategic alliance forged in January 2024 with the Amber Group, aimed at bolstering its railway component and subsystem business. The collaboration involves the establishment of a joint venture company or Special Purpose Vehicle (SPV).

Under the terms of the partnership, Titagarh Rail Systems Ltd, based in Kolkata, and the Amber Group, operating through its wholly-owned subsidiary Sidwal Refrigeration Industries Pvt Ltd, will each invest up to ₹120 crore to acquire equal control in the SPV. This investment will facilitate the establishment of the new railway component business, in addition to fresh equity injections into Firema, Italy. The SPV will spearhead the establishment of a new manufacturing facility in India to support the joint venture's operations.

HBL