Texmaco Rail Snaps Up Jindal Rail for ₹615 Crore

Texmaco Rail & Engineering Limited has acquired Jindal Rail Infrastructure Limited for ₹615 crore, marking a significant expansion in its rolling stock business. This acquisition, the largest in India’s rolling stock industry, positions Texmaco as the leading wagon producer in the country. The move comes at an opportune time, given the surge in demand in India’s wagons industry, fueled by the government’s policy for dedicated freight corridors.

Jindal Rail, a part of the Prithvi Raj Jindal group, is known for its high-quality railway freight car designs. Since its inception in 2012, Jindal Rail has delivered over 8,600 wagons, including specialized BFNV and ACT1 wagons. Its 123-acre manufacturing facility in Vadodara produced 1,650 wagons in the last fiscal year. This acquisition will significantly increase Texmaco’s manufacturing capacity with minimal capital expenditure.

Saroj Kumar Poddar, Chairman of Texmaco, emphasized the acquisition’s strategic importance, stating it will boost Texmaco’s participation in both domestic and international markets. The 60-acre land bank in Vadodara will facilitate rapid capacity expansion into new areas such as passenger mobility. Texmaco’s expertise will enable vertical integration, enhancing export capabilities and strengthening its competitive advantage.

The acquisition follows Texmaco’s recent majority stake in Saira Asia and a joint venture with Czech freight maker Nymwag, with a new factory in Sodepur set to open soon. This expansion is expected to catalyze India’s economic growth and solidify Texmaco’s position in the global market.

News by Rahul Yelligetti