Amber Group, Titagarh Rail Systems join hands for Train Components and Subsystem Business

New Delhi, India (Metro Rail Today): In a significant development, Titagarh Rail Systems of Kolkata and Amber Group of Delhi-NCR have announced a strategic alliance to venture into the railway component and subsystem business through a joint venture/SPV (Special Purpose Vehicle). The collaboration involves a joint investment with Invitalia, the Government of Italy's investment arm, in Titagarh Firema, aiming to expand its presence in European markets.

Under the agreement, both Titagarh Rail Systems (TRSL) and Amber Group, through their subsidiary Sidwal Refrigeration Industries Pvt Limited, will invest around INR 120 crores each to acquire approximately 50% ownership in the SPV. This initiative includes setting up a new facility in India for manufacturing critical railway components and subsystems utilized in the production of Railway and Metro coaches. Additionally, fresh equity investments will be made in Titagarh Firema SpA, Italy, a Titagarh Group associate.

Titagarh Rail, a leader in the railway rolling stock sector, is currently involved in prestigious projects such as Vande Bharat trains, Surat and Ahmedabad metro, Pune metro, and its first export order for passenger rail components from Firema. The company aims to achieve a capacity of 800-850 coaches per year in the coming years.

Amber Group, a diversified B2B company with three business verticals, including Railway Subsystems & Mobility, is making significant investments in growing capabilities and capacities. Sidwal, an Amber Group company, has established itself as a leader in the train air conditioner market and aims to enter the European market with its product portfolio. The strategic partnership with Firema not only facilitates Sidwal's European entry but also provides preferred access to Firema's demand.

Firema, a renowned designer and manufacturer of passenger trains in Italy, boasts a legacy of several decades and an order book of almost Euro 1 billion. The company recently signed a framework contract for the design and supply of 370 sleeping coaches to Trenitalia for Euro 732 million, in consortium with Skoda. Titagarh Rail and Sidwal will support Firema's growth by supplying critical components from India, enhancing its cost competitiveness.

The alliance plans to establish facilities in India for manufacturing critical components and subsystems for the railway industry. Advanced discussions are underway to obtain technology for these components from global leaders in Europe. While the specific components will be announced later, they include coach interiors, coach toilets, kitchens, seats, and other vital railway subsystems. The Joint Venture Company (JVC-SPV) aims to achieve a wallet share of at least 20% value or INR 150-200 lacs per passenger coach.

As part of the strategic alliance, Sidwal and TRSL will grant each other Preferred Supplier and Preferred Customer status. Sidwal has already received a Letter of Intent for components manufactured for existing and future projects by Titagarh Rail, including the prestigious Vande Bharat project.

Commenting on the deal, Jasbir Singh, Chairman and Chief Executive Officer of Amber Group stated, "This will be a game-changer for Amber, giving us a strong foothold in the global customer base and preferred access to the demands of a leading rolling stock manufacturer. The alliance increases the total addressable market for both Sidwal and SPV, allowing us to provide comprehensive integrated solutions globally."

Mr. Umesh Chowdhary, Chairman and Chief Executive Officer of Titagarh Rail Systems expressed his delight, highlighting the synergy between the groups and the added strength to Firema's business development and growth. He emphasized the significance of the Italian government's co-investment, marking the venture's importance.

Both companies reaffirmed their commitment to the "Make in India" and "Atmanirbhar Bharat" policies, considering the partnership as their contribution to the success of these policies.

The strategic alliance between Amber Group and Titagarh Rail Systems opens new avenues for growth in the railway component and subsystem business. The collaboration not only strengthens the individual businesses but also contributes to the global expansion of the involved companies. With a focus on manufacturing critical components and subsystems in India, the alliance is poised to make a significant impact on the railway industry.