Texmaco owns Jindal Rail Infrastructure at ₹615 Crore

Kolkata, India (Metro Rail Today): In a landmark move set to reshape India’s rolling stock industry, Texmaco Rail & Engineering Ltd. (Texmaco) announced the acquisition of a 100% stake in Jindal Rail Infrastructure Limited (JRIL) for approximately Rs 615 crore. This strategic acquisition, finalized on July 25, 2024, represents the largest deal in India's rolling stock sector to date.

Texmaco's acquisition of JRIL is seen as a pivotal step in expanding its footprint in the rolling stock market. The company entered into definitive agreements with JRIL, JITF Urban Infrastructure Services Limited, and Siddeshwari Tradex Private Limited to acquire the entire share capital of JRIL on a fully diluted basis. This acquisition underscores Texmaco's commitment to bolstering its capabilities and market reach.

In a statement released by the company, Texmaco highlighted the significance of this deal, noting that it is not only a substantial financial transaction but also a strategic maneuver designed to enhance the company's product offerings and market position. The acquisition is poised to significantly augment Texmaco’s participation in both domestic and international markets.

Saroj Kumar Poddar, Chairman of Texmaco, commented on the acquisition, stating, "The Jindal Rail acquisition will exponentially boost our participation in domestic and foreign markets, catalysing the nation's economic growth." This statement reflects the company’s vision of leveraging the acquisition to accelerate its growth trajectory and strengthen its competitive edge in the rolling stock industry.

Texmaco, part of the Adventz Group, is a leading manufacturer of wagons used for the bulk transport of various goods, including alumina, cement, fly ash, steel, fuels, chemicals, iron ore, and automobiles. The company’s robust portfolio and market leadership in wagon manufacturing position it well to integrate JRIL’s capabilities and expand its service offerings.

JRIL, a company under the Prithvi Raj Jindal group, is renowned for its expertise in designing and manufacturing high-quality railway freight car products. The company has built a reputation for delivering innovative and reliable rail solutions, making it a valuable addition to Texmaco's existing operations.

The acquisition will see Texmaco inheriting JRIL's advanced manufacturing facilities, skilled workforce, and extensive product portfolio. This integration is expected to create synergies that will enhance Texmaco's production capabilities and allow for the development of new and improved rolling stock products.

The acquisition, valued at around Rs 615 crore, is subject to certain adjustments at the closing, as specified in the definitive agreements. These adjustments are standard in transactions of this nature and ensure that the final purchase price reflects the true value of the acquired assets.

The funding for the acquisition is expected to come from a combination of internal accruals and debt financing. Texmaco’s strong financial position and prudent management practices will enable it to manage this investment effectively and ensure smooth integration of JRIL’s operations.

The acquisition of JRIL by Texmaco is a significant event in the Indian rolling stock industry, with far-reaching implications for the market. The combined entity will have enhanced capabilities to meet the growing demand for railway freight solutions, driven by the expansion of the Indian rail network and increased focus on efficient logistics.

This deal also highlights the ongoing consolidation in the rolling stock sector, as companies seek to build scale and enhance their competitive positioning. By acquiring JRIL, Texmaco is not only increasing its market share but also positioning itself to take advantage of new opportunities in both domestic and international markets.

Looking ahead, Texmaco plans to leverage the synergies created by this acquisition to drive innovation and deliver superior value to its customers. The company is committed to expanding its product range, improving manufacturing efficiencies, and exploring new market segments.

The acquisition of JRIL is a testament to Texmaco’s strategic vision and its commitment to growth and excellence. By integrating JRIL’s strengths with its own capabilities, Texmaco is poised to play a pivotal role in the future of the rolling stock industry.

Texmaco’s acquisition of a 100% stake in Jindal Rail Infrastructure Limited for Rs 615 crore marks a historic milestone in India’s rolling stock industry. This strategic move is set to enhance Texmaco’s market presence, expand its product offerings, and drive growth in both domestic and international markets. With a strong focus on innovation and customer value, Texmaco is well-positioned to lead the industry into a new era of growth and development.