Industrial Economist (IE): In recent quarters you faced supply issues with wheel sets. Has that situation improved?
Prithish Chowdhary (PC): Yes, the wheel set supply was a significant challenge, not just for us, but for the entire industry. That continued to some extent into Q1 of this fiscal as well. We’ve seen some resolution, although not fully. However, both the Indian Railways and we are confident that things will normalise by early July. So, from Q2 onwards, we expect a smoother run. We are confident of achieving a run rate of 900–1000 wagons per month this year.
IE: But this wheel set issue seems to be recurring, almost like a cycle.
PC: Correct. It’s practically a perennial issue. Every year or two, we face disruptions. The only permanent solution is the new wheel set manufacturing plant coming up in Gummidipoondi near Chennai, in our joint venture with Ramkrishna Forgings (RKF). It’s a 51:49 joint venture (51 per cent with RKF and 49 per cent with TRS).
IE: What is the timeline, capex and planned capacity for the plant?
PC: We are targeting March 2026 for it to go live. Once that’s operational, even if the Railways’ own factory faces supply issues, we will have self-sufficiency in wheel sets for our own requirements. The total capex is around Rs 2000 crore, funded through a mix of debt and equity. It will have a capacity of 228,000 wheel sets per annum, with potential for ramp-up based on our own growth and market demand. Out of the total capacity, 80,000 wheels are under a guaranteed off-take agreement with Indian Railways. The new factory is intended to be a long-term, strategic solution to an industry-wide bottleneck.
IE: Why was Chennai chosen as the location?
PC: Gummidipoondi near Chennai was chosen for several strategic reasons. Its proximity to the Integral Coach Factory (ICF), with which the company has supply contracts, played a crucial role. The region also offers an abundant pool of skilled manpower, which is essential for the project’s success. Additionally, the Tamil Nadu government has demonstrated a proactive and supportive approach, offering investment-friendly policies that make it attractive for large-scale industrial ventures. Furthermore, the city provides excellent access to ports, which is particularly important given that a significant portion of the products will be exported. Together, these factors made Chennai the ideal location for setting up the facility.
IE: How is your foundry expansion progressing, and how is it going to help?
PC: Currently, our foundries operate at a capacity of approximately 30,000 to 35,000 tonnes annually. We are in the process of ramping this up to 50,000 tonnes and we expect to achieve it in the coming months. There are two key drivers behind this expansion. First, around 20 per cent of the castings we use for wagon manufacturing are currently outsourced due to limited internal capacity. With the expanded foundry operations, we will be able to bring this completely in-house, thereby enhancing control and efficiency. Second, the additional capacity will enable us to resume direct sales of casting components to Indian Railways. We had paused this business earlier due to capacity constraints. Moreover, this surplus will allow us to explore opportunities in export markets too.
It is important to note that this isn’t just a capacity increase; it also marks a significant upgrade in quality. We are transitioning to a full no-bake moulding line, which will substantially improve the consistency and precision of our castings.
IE: Is propulsion system for EMU a new area for you?
PC: Yes, absolutely. We are developing our prototype and will deliver it to the Railways in the next couple of months. The market potential is huge. Companies like Medha have already demonstrated that it’s a high-potential space. However, there are significant entry barriers. But it is good as only a few players can operate successfully due to the technical and safety requirements.
IE: Is the expansion into safety & signaling systems a natural extension of your existing capabilities?
PC: Yes. There is a strong synergy between our existing manufacturing and design capabilities and the signaling/safety space. We have carefully chosen products that align with our current strengths, which allow us to minimise new setup costs and maximise returns. Safety and quality are non-negotiable. And we are also seeing a growing focus on signaling and safety systems.
IE: Are you looking at partnerships or joint ventures in that area?
PC: We are completely open to that. In fact, we already have a JV with Mermeck, an Italian company, the fourth largest signaling firm globally. This is a broad partnership that allows for project-specific collaboration across various segments in the Indian market. But we are not stopping there. We are also in discussions with other international players to bring in specific expertise where required.
IE: While signaling and other associated areas seem like logical extensions, how about shipbuilding business?
PC: With over 11 years in the shipbuilding business, we have built a strong reputation for delivering quality ships on schedule. Our experienced team has consistently ensured this. Now, with the Indian government focusing on shipbuilding and with global demand rising, especially from cost-competitive countries like India, the sector offers great potential. While our freight and, soon, our passenger rail businesses are expected to be stable over the next 4–5 years, shipbuilding is where we see future growth.
IE: Private players are limited in shipbuilding. What is the potential and your focus?
PC: Aside from a few players like L&T Shipyard, most shipbuilding in India is driven by public sector companies. We do see significant opportunities for private players and actively evaluating the same. We are still in the process of finalising our detailed business and capex plans for shipbuilding. However, the vision is very clear. We don’t intend to remain a fringe player. If we enter this sector, it’s to become a significant player and not to remain on the margins.
IE: Will this include defence shipbuilding?
PC: Our presence in defense shipbuilding is well established. In fact, most of our past work has been in this segment. We have built warships for the Coast Guard, feeder vessels for INS Vikramaditya and tugs for the Navy. Currently, we are building diving support crafts for the Navy. These will be registered as naval vessels, not just service vessels.
IE: Do these expansions signed Titagarh’s transformations into a diversified conglomerate?
PC: This diversification reflects a broader transformation. We have changed our name from Titagarh Wagons, which we held for 25 years, to Titagarh Rail Systems. This itself signals a shift in mindset. We are no longer just wagon manufacturers. Today, we are an engineering-led company driven by technology, innovation, and quality. In some ways, yes, we are a diversified company, but with a strategic focus. Our expansion is in areas where there is immense growth potential as well as alignment with national priorities like ‘Make in India’.
Each business comes with its own set of complexities. Some can be addressed internally, others may require partnerships, JVs, or even the development of proprietary IP. There is no one-size-fits-all formula. These are long-gestation businesses, and what gives us confidence is our strong leadership team.
IE: How does FY26 look for you? Do you expect to cross 10,000 wagons in production and sales?
PC: That is our expectation, and we will achieve it but for any unforeseen disruptions like the supply constraints we experienced last year. The outlook so far appears quite robust. We are fully backed by orders for the entire financial year. In fact, we already have orders spilling over into the next year. So, order backlog is not a concern.