Texmaco Rail's Strategic Leap: Diversifying to Drive Growth

Texmaco Rail and Engineering is diversifying its business to reduce reliance on government wagon orders. By 2025-26, it aims to decrease government order dependency to 70%. Strategic actions include acquiring Jindal Rail Infrastructure and setting up a global supply sourcing division to boost international collaborations.

Texmaco Rail and Engineering has unveiled plans to diversify its business model to reduce dependency on government wagon orders and boost margins. The engineering company aims to bring down the government's share of its rolling stock business from 80% to 70% by 2025-26, leveraging growing private sector demand and export opportunities.

Announced during the 3rd Manufacturing and MSME Conclave by Assocham, Texmaco's strategic actions include acquiring Baroda-based Jindal Rail Infrastructure for Rs 615 crore, adding a niche capacity of 2,500 wagons to its existing production of 12,000 wagons in Bengal. Managing Director Sudipta Mukherjee stated the goal of ideally moving towards a 60:40 ratio of private to government orders.

Furthering its objectives, the company plans to establish a global capability center in Delhi and set up a global supply sourcing division aimed at aggregating railway products for export by April. Mukherjee highlighted the critical role of MSMEs and the potential of the eastern region's economic growth.

(With inputs from agencies.)