The Hindu : Business : Texmaco in joint venture with Australian rail co.

Online edition of India's National Newspaper
Wednesday, Nov 14, 2007
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Business

Texmaco in joint venture with Australian rail co.

Special Correspondent

To produce wagons and rails

Project needs port and rail connectivity
Will have substantial export component

KOLKATA: K. K. Birla group company Texmaco, a leading wagon manufacturing company, proposes to set up a 50:50 joint venture with the rail division of United Group of Australia, Ramesh Maheshwari, President and CEO, Texmaco, said. The project will have a substantial export component, he said.

Speaking to reporters after signing a memorandum of agreement (MoA) with Andy Summers, CEO-rail and wagons of the United Group, Mr. Maheshwari said “I am looking forward to building the biggest rail hub in the Asia Pacific region”. To start with, the joint venture would make wagons and rails.

Signs MoA

In a communication to the stock exchanges, Texmaco said that the proposed joint venture will cover the design, manufacture and supply of wagons, locomotive bogies and components and encompass passenger rolling stock also.

Additionally, both partners are keen to address related opportunities for rolling stock maintenance and refurbishment.

The MoA was signed in the presence of the West Bengal Chief Minister, Buddhadeb Bhattacharjee, who said that a lot of private sector companies were now keen to take advantage of the proposed freight corridor project of the Centre and set up wagon and rail manufacturing units in the State.

He said Texmaco was a success story among industries in the State.

Mr. Summers said his company had zeroed in on Texmaco after a 12-month search during which it evaluated offers from many overseas companies.

To a question, he said the investment and employment figures would concretise only later, but a project of this order generates three indirect employment for every direct job.

Project on 100 acres

The project would need about 100 acres with port and rail connectivity, Mr. Maheshwari said adding that the company had been shown some sites by the government.

He said the proposed project had a huge export potential and substantial capacity was likely to be reserved for exports to Australia and other countries.

He said that Texmaco had five units in West Bengal spread over 200 acres.

In the first half of 2007-08, Texmaco surpassed its production level achieved in 2006-07 and a Rs. 1,000 crore turnover was being targeted against Rs. 600 crore in the previous year.

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