Texmaco to diversify portfolio, reduce govt dependence by 2025-26
Times of India | 18 January 2025
Kolkata: Texmaco Rail and Engineering on Friday announced steps to de-risk its business and improve margins by tapping into growing private sector wagon demand and export orders, which will reduce dependence on govt wagon orders.
The engineering major aims to reduce govt's share of its rolling stock business to 70%, from the current 80%, by 2025-26. Wagons will remain the mainstay for the company, but it would gradually diversify its portfolio.
"Earlier, govt orders contributed 90% of our business; now it is 80%. We aim to bring it down to 70% by 2025-26 without compromising on quality and ideally shift to a 60:40 ratio," Texmaco MD Sudipta Mukherjee said on the sidelines of the 3rd Manufacturing and MSME Conclave organised by Assocham.
To achieve this goal, the company has taken strategic steps, including the acquisition of Baroda-based Jindal Rail Infrastructure for Rs 615 crore. "Our overall capacity is to produce 12,000 wagons annually in Bengal, while the Jindal unit adds a niche capacity of 2,500 wagons," Mukherjee said.
The company also plans to set up a global capability centre in Delhi to facilitate international collaborations. "Additionally, Texmaco is establishing a global supply sourcing division to act as an aggregator for railway products and components for export, which is expected to begin operations by April," Mukherjee said.