Co has applied for defence production licences; lookin to manufacture most of defence equipments
''We want to position Cimmco, which is now a 75% subsidiary, as a defense play. Its very strategically positioned, spread over 200 acres at Bharatpur near the NCR region, an infrastructure which is hard to replicate in such a location being also close to Mathura and Bharatpur tank depots,'' Umesh Chowdhary, vice chairman and managing director of Titagarh Wagons said.
Set up in 1957, Cimmco, formerly known as Cimmco Birla, was part of S K Birla Group and was one of the premier wagon manufacturing companies till 2000 when its Bharatpur plant in Rajasthan locked-out due to labour unrest and eventually turned sick.
In 2008, Titagarh Wagons came in as new co-promoter to revive the company, and its net worth turned positive in 2010.
''Having cleaned up the balance sheet and infused capital we have applied for industrial licences (for defence production). We have already been shortlisted as a group and our intention is to manufacture most of defense equipment there," Chowdhury told analysts.
This apart, the promoters also plan to start wagon repairing at Cimmco, an activity which was earlier not allowed for the private sector.
''Another plan with Cimmco is to convert it into a wagon maintenance hub. We have been requesting the Railways to allow private maintenance and about three months back the circular came. We are waiting for the final policy and this area would be a major revenue generator,'' he said.
Titagarh Wagons is already into defence manufacturing, albeit, in a modest way and is currently doing projects like launching systems, shelters and canisters and we have been shortlisted for other bigger projects.
''There are two new areas that we are looking at, defence and metro coaches. In defence we are pretty much pre-qualified for most of the projects being undertaken by the Railways in our segment,'' Chowdhury said.
As on January 1, the order book of Titagarh stood at Rs 600 crore spread across verticals like wagons, coaches, defence and foundry with 36% being wagons of which 20% is from Indian Railways and balance from private parties. About 25% each is from rail coaches and defence sector.
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