Titagarh Rail Systems and Amber Group Enter Rail Component Business Venture

25 Jan 2024 , 02:46 PM

Titagarh Rail Systems Ltd (TRSL), based in Calcutta, has entered into an agreement with Amber group to venture into the railway component and subsystem business in India and overseas.

The agreement involves TRSL and Amber group, through its subsidiary Sidwal Refrigeration Industries Pvt Ltd, jointly investing up to Rs 120 crore each to acquire equal control in a Special Purpose Vehicle (SPV) for establishing the new railway component business. Additionally, there will be a fresh equity investment in Titagarh Firema SpA, Italy.

TRSL and Amber group have agreed to form a joint venture company/SPV for entering the railway component and subsystem business, as stated in the filing to the BSE.

The SPV will establish a new plant in India dedicated to manufacturing critical railway components and subsystems used in the production of railway and Metro coaches.

Alongside the establishment of the new plant, fresh equity investments will be made into Titagarh Firema SpA, Italy, which is an associate of the Titagarh Group. The Italian government’s investment arm, Invitalia, is also set to make a new investment, having already obtained in-principle approval.

The agreement outlines that Firema will grant preferred supplier status and the right of first refusal for all their products to Sidwal, Titagarh Rail, and the joint venture company (JVC-SPV).

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