ChrysCapital and GE Capital-backed maker of railway wagons Titagarh Wagons Ltd is acquiring French rail wagon maker IGF Industries-Arbel Fauvet Rail (AFR) assets for €2 million ($2.53 million) with commitment to invest a further €13 million ($16.42 million) in the firm.
The company won the bid for acquisition of the assets of IGF-AFR, the company disclosed to the stock exchanges. AFR is based at Douai in northern France, considered a hub of Europe's railway industry and has design, engineering and manufacturing capabilities of tank cars, containers, bogies and wagons.
Titagarh gets an additional capacity to manufacture up to 5,000 wagons per year with the acquisition in addition to access to proprietary technology and potential to tap the market for renewal of European rolling stock due in the near future.
JP Chowdhary, chairman of Titagarh Wagons Ltd, said, in a statement, “This acquisition is expected to have positive implications for our cost, technology and management competitiveness as we evolve from an Indian to a global player.” Axis Bank was the sole financial adviser to Titagarh on the bid.
Kolkata-based Titagarh had revenues of Rs 554 crore with net profit of Rs 65 crore for the year ended March’10. It had recently acquired 50% stake in CIMMCO Ltd, a SK Birla venture engaged in manufacturing of rail coaches.