New Delhi: Texmaco Rail & Engineering Ltd is in talks with a Japanese consortium for an equal joint venture to make suburban train coaches, its chairman said on Wednesday, sending its shares up by as much as 6%.
“We are looking for a JV partner for both EMU (electric multiple unit) coaches and metro coaches,” Saroj Kumar Poddar told reporters, adding that a deal with a Japanese consortium may be finalized in three months.
Texmaco Rail makes about 20-25 rail wagons per day and plans to invest between Rs75 crore and Rs100 crore in two years from now to ramp up capacity, Poddar said. Now, with the proposed joint venture, Texmaco Rail will be able to produce coaches for suburban trains as well.
The new plant will be located at the existing factories of the company and thus would not require huge investments, Poddar said, without giving details about investments in new plants.
Shares in Texmaco Rail and Engineering, valued at about Rs1200 crore, closed up 3% at Rs66.80 on Wednesday on the Bombay Stock Exchange.