In a landmark development, Titagarh Rail Systems Ltd (TRSL) of Kolkata and the Amber Group from Delhi-NCR have unveiled a strategic alliance, paving the way for a foray into the railway component and subsystem business. The two entities will jointly invest Rs 240 crore in a Special Purpose Vehicle (SPV), marking their commitment to expanding the critical railway manufacturing sector.
As part of this agreement, TRSL and the Amber Group, through their subsidiary Sidwal Refrigeration Industries Pvt Ltd, will each contribute Rs 120 crore to the SPV. This collaboration includes substantial equity investments in Firema, Italy, with the additional backing of Invitalia, the investment arm of the Italian Government.
The SPV will establish a state-of-the-art facility in India, focusing on the production of pivotal railway components and subsystems essential for the manufacturing of Railway and Metro coaches. Notably, Firema, an esteemed Italian passenger train manufacturer, will grant Sidwal, TRSL, and the JVC-SPV a preferred supplier status, emphasizing a Right of First Refusal (ROFR) for all their products.
The scope of this collaboration extends to facilitating Sidwal’s entry into the European market. Sidwal, recognized as a leader in the train and metro air conditioner market, is poised to make significant strides in Europe with the strategic partnership in Firema. The SPV will play a crucial role in integrating and leveraging the strengths of both companies, enhancing Firema’s growth trajectory by improving cost competitiveness through the supply of critical components from India.
Jasbir Singh, Chairman & CEO, Amber Group emphasized the global impact, stating, “This alliance exponentially increases the total addressable market for both Sidwal & SPV.” He highlighted the intention to provide comprehensive integrated solutions to rolling stock manufacturers globally.
In response, Umesh Chowdhary, Vice Chairman & MD, TRSL expressed delight in joining forces with the Amber Group, highlighting the strengthened business development and growth prospects for Firema. Both leaders reiterated their commitment to the ‘Make in India’ and ‘Atmanirbhar Bharat’ initiatives, positioning this partnership as a significant contribution to these national policies.