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Titagarh Wagons is planning a post-pandemic turnaround involving growing revenue three times over the next three years and targeting new markets in Africa, West Asia, South East Asia, Australia and the US with its made-in-India freight wagons and transit trains.

According to Umesh Chowdhary, MD and CEO of the Kolkata-based wagon-maker, the target for the next two-three years is to develop an export market for both the freight wagon and transit train business. International certification and application for accreditation of services have already been completed for wider acceptance of its products globally.

“We have recently opened an office in America. We already have a presence in Europe through our Italian subsidiary involved in transit train manufacturing. So we will be developing the export market where we still don’t have much presence," Chowdhary told Mint.

“We are just trying to sign a contract -- a small one -- from our Indian operations for exports to America. We will be synergising between our Indian and Italian operations to cover the global market for both the freight wagon and transit business," he said.

Titagarh’s export order for the US will be among the first shipments of an indigenously manufactured railway product to North America -- unlike its exports of metro trains, which are shipped to countries in Europe from its Italian passenger and metro coach making subsidiary Titagarh Firema S.p.A.

The Italian operation order book stands at around 4,500-5,000 crore while the Indian operation order book as of December, 2021 stood at around 2,400-2,500 crore. The Italian order book has doubled in the last two years from about 2,500 crore in 2020.

According to Chowdhary, together with the export push and big pick up in domestic operations -- Indian Railways has announced its biggest ever three- year tender for sourcing close to 1 lakh wagons -- Titagarh’s revenue should grow at the same rate over the next years as in the three-year period ending March, 2021.

In that three-year period (2018-19, 2019-20, 2020-21), the company clocked an average revenue of around 900-1,000 crore -- up from an average of 300 crore in the previous three years. “We expect and we believe that we have the wherewithal to continue with similar growth trajectories over the next period of three years," Choudhary said.

The growth in revenue will also come from new business that the company has entered through acquisitions. Titagarh Wagon acquired is able to manufacture passenger and metro trains through its Italian acquisition and has gone into shipbuilding, especially for the Indian armed forces, through its recent acquisition of land and infrastructure of Precision Shipyard located at Falta, West Bengal.

“Together with export orders and expansion of our transit train and shipbuilding operations, the share of wagons in our total operations would fall from traditionally high levels of 90% to around 45% over the next few years," said Choudhary.

However, he added, “We are producing about 400 to 500 wagons a month, but have a capacity of going up to 700."

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