New Delhi: Rail wagon manufacturer Jupiter Group is foraying into rail wagon leasing business in India in partnership with Slovakian logistic company Budamar Logistics.
“We are reviewing the market and in the next financial year we, along with Budamar Logistics, would enter the business of renting and leasing of rail cars or wagons," Jupiter Group director Vivek Lohia said.
With the increase in rail freight movement and new axle weight norms for wagons, there was a huge untapped opportunity, he added.
The Kolkata-based Jupiter Group recently completed the acquisition of Commercial Engineers and Body Builders Company Ltd (CEBBCO) through a resolution process where the company took 70% stake. With the acquisition, the group managed to include commercial vehicle segment in its portfolio, which was limited to rail infrastructure and wagon manufacturing. CEBBCO is one of the leading manufacturers of commercial vehicles and its clientele includes Volvo, Eicher and Tata Motors to name a few.
The company will primarily target rail business, according to Lohia. “We primarily want to grow the rail business. An increase in manufacturing capacity will give us an edge in the leasing business since it will help us customise wagon cars according to client requirement."
The company was already developing a special wagon car to carry loose cement and waterproof cars for the oil sector, he added.
The company already has an order book of 600 wagons from the private sector and is eyeing a recent tender issued by CONCOR to supply new axle load container cars. Recently, the company also closed an order from a leading steel company and was on the verge of finalising another order from a leading steel manufacturer, Lohia said, without divulging details.
The Jupiter Group was among the two entities, which had won an order to supply around 12,000 wagons to the Indian Railways in December 2018. "We have a business of ₹1000 crore for the next financial year and we hope to complete the order of 4,000 wagons from the Indian Railways according to schedule," Lohia added.