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.
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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