GE India on Monday picked up 15% equity in Titagarh Wagons Ltd, marking the entry of group firm GE Equipment Services into the country.
Under a strategic tie-up with Titagarh Wagons, GE Equipment Services will have preferred access to wagons manufactured by the West Bengal-based company.
GE will lease the wagons to the Indian Railways and private shippers in India. GE Equipment Services will also become the preferred provider of vendor financing for Titagarh.
With GE’s investment, Titagarh plans to step up the pace of manufacturing wagons. Titagarh, which manufactured 2,232 wagons during 2006-07, plans to raise its annual manufacturing capacity to 3,600-4,000 wagons after the tie-up.
Railway wagon manufacturing capacity in India is limited with the waiting time being around 18 months. Titagarh Wagon Ltd, incorporated in 1997-98, is one of the leading private sector railway wagon manufacturers in India.
It also manufactures Bailey Bridges, heavy earth moving and mining equipment, and steel and SG iron castings of moderate to complex configuration.
Titagarh and GE will also explore a variety of ways to improve rail transport, including incorporating GE’s forthcoming VeriWise RAIL asset management technology in the manufacture of future wagons.
VeriWise RAIL will enable railways and shippers to locate specific cars and monitor their condition and the condition of their freight, thereby helping to enhance the visibility, security and productivity of the rail system.
According to Dhananjay Nalawade, president, GE Equipment Services, the company is the owner and lessor of more than 200,000 rail wagons and intermodal assets in North America and Europe.
“Our domain expertise in rail and other forms of transport allows us to bring a wide range of best practices from our various global platforms to India, including new financing structures, new wagon designs, new forms of fleet management, and other new services.
Providing wagon solutions with Titagarh will be our first step toward improving the supply chain infrastructure in India,” he said.
Source : DNA India