Titagarh acquires infrastructure of erstwhile Precision Shipyard to expand its Ship-building business

12 Jan 2022 , 04:10 PM

Titagarh Wagons Limited (TWL), a flagship company of Titagarh group, has acquired the land and infrastructure of Precision Shipyard located in Falta, West Bengal, in an auction of sale conducted by the Union Bank of India.

Titagarh has already been building ships for the Indian Navy, National Institute of Ocean Technology etc., in its shipyard located in Titagarh. However, the acquisition of the present infrastructure will enable Titagarh to substantially enhance its capability and capacity for the shipbuilding business.

The new land and infrastructure acquired by Titagarh would remove the biggest constraint that Titagarh faced of being located North of the Howrah bridge, which was limiting both the water draft and air draft available, due to this Titagarh was unable to participate in many tenders.

With this acquisition, Titagarh will be able to functionally merge the 2 facilities at Titagarh and in Falta in order to cater to a much wider range of specialised ship-building activities.

Titagarh currently has an order book for 18 nos. of ships valued at ~Rs400cr and also building a fast patrol vessel for the Indian Coast Guard under contract from GRSE.

Saket Kandoi, COO of the SBD (Ship-Building, Bridges and Defence) business of Titagarh said: “Titagarh has already established a strong goodwill amongst its clients including the Indian Navy due to its timely performance and high quality of the ships built in the past, and is targeting for being approved for all categories of ship-building, including warship category, for which Titagarh already has an Industrial Licence.”

Umesh Chowdhary, Managing Director and CEO of the Company said: “Apart from the two well established business lines of the Company i.e. Freight and Transit and Propulsion, the SBD business vertical also is in the centre of the Company’s strategy. Titagarh, in the coming days would place substantial focus and attention on growing all the 3 aspects of the SBD business i.e. ShipBuilding, Bridges and Defence.”

Titagarh Wagons Ltd ended at Rs113.25 per share down by Rs4.5 or 3.82% from its previous closing of Rs117.75 per share on the BSE.