Escorts Railways earmarks ₹400 cr for metro foray

Escorts Railways earmarks ₹400 cr for metro foray

Escorts Railways Equipment Division, a unit of the Escorts Group, has earmarked nearly 400 crore for possible acquisitions in India or Europe to help its entry into the lucrative metro rail sector.

Potential targets could be companies in areas such as air-conditioning, traction equipment and coupling systems —– all important components for metro rail.

“We will also develop products locally through a combination of strong in-house R&D and collaboration with foreign companies. However, high import substitution is vital,” Dipankar Ghosh, CEO, told Business Line.

Product demand

Ghosh the Escorts’ railway revenue to quadruple in the next three-four years from the present 350 crore. It sees good demand for its new products such as bogie-mounted brake systems for freight wagons and axle-mounted disc brakes for LHB (stainless steel) coaches. ICF has completed the switch-over to LHB.

The railway division contributes nearly 8 per cent of Escorts’ revenue, Ghosh said. Read More

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