Jupiter Wagons to invest ₹2,500 Crore for subsidiary

18 Sep 2024 , 12:29 PM

Jupiter Wagons Ltd. announced on Tuesday, September 17, that it will rename its subsidiary Bonatrans India Pvt. Ltd. as Jupiter Tatravagonka Railwheel Factory Pvt. Ltd.

Jupiter Tatravangonka Railwheel Factory Pvt. Ltd. would increase its yearly production capacity from 20,000 to 1 lakh forged wheelsets, at an investment of ₹2,500 Crore.

Jupiter Wagons will enhance capacity by building a new state-of-the-art forged wheelset production facility in Orissa.

This factory is planned to be operational by the calendar year 2027, serving both domestic and foreign markets. Exports will account for about half of the overall production capacity, with the majority going to partner Tatravagonka A.S. and other European players.

Jupiter Wagons has awarded the contract to Schuler Pressen GmbH, a well-known German engineering company that specialises in the supply and installation of fully integrated forged wheel and axle lines.

Jupiter Wagons wants to use this integrated forging line to optimise production processes, maintain greater quality control, and ensure timely availability of crucial components for its wagon manufacturing operations. This will strategically elevate the company’s business model and further strengthen its margin profile,” according to the statement.

Jupiter Wagons approved the acquisition of Bonatrans India for ₹271 Crore in March this year. In July, the company raised ₹800 Crore via its QIP.

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