Titagarh Rail Systems Ltd. , a prominent player in the rail and shipbuilding industry, is setting its sights on new horizons for growth. Umesh Chowdhary, the company's vice chairman and managing director, recently shared insights into the company's strategic direction and current challenges.

Focus on Passenger Rail and Shipbuilding

Chowdhary expressed optimism about the company's future, stating that real growth is expected to come from two key segments: passenger rail and shipbuilding. This diversification strategy aims to capitalize on emerging opportunities in these sectors.

Reactivation of Shipbuilding Venture

In a significant move, Titagarh Rail Systems has reactivated its shipbuilding venture by establishing Titagarh Naval Systems Ltd. The new entity is set to develop a shipyard in Falta, West Bengal. Chowdhary highlighted the strategic importance of this location, noting the limited shipbuilding activity in Eastern India, with Garden Reach being the primary exception.

Cautious Entry into Shipbuilding

The company is adopting a measured approach to its shipbuilding endeavors. Chowdhary revealed that Titagarh has secured an initial order book of ₹550-600 crore for its shipbuilding division, demonstrating a cautious yet confident entry into this sector.

Q1 Performance and Supply Chain Challenges

Despite the positive outlook, Titagarh Rail Systems faced some headwinds in the first quarter. The company reported a 54% decline in consolidated net profit, primarily attributed to supply chain disruptions. Chowdhary specifically pointed out issues with wheel set delivery as a major factor affecting performance.

Joint Venture to Address Supply Chain Issues

To tackle the wheel set delivery problems, Titagarh Rail Systems has formed a joint venture with Ramkrishna Forgings Ltd. This partnership aims to establish the company's own wheel set plant, which is expected to resolve the supply chain challenges and improve operational efficiency.

As Titagarh Rail Systems navigates through these strategic initiatives and operational challenges, the company appears poised for potential growth in the passenger rail and shipbuilding segments. The management's focus on addressing supply chain issues through strategic partnerships also indicates a proactive approach to overcoming current obstacles.

Titagarh Rail Systems Limited (TRSL), a leading Indian rolling stock and engineering solutions provider, has achieved a significant milestone by delivering the first indigenously built Diving Support Craft (DSC A20) to the Indian Navy. This handover marks a crucial step in India's maritime defense capabilities and showcases the country's growing prowess in naval shipbuilding.

Key Highlights of the Diving Support Craft

• Vessel Specifications: The DSC A20 is a 32.9-meter catamaran-type vessel designed to support the Navy's Command Clearance Diving Teams in underwater operations.
• Operational Capabilities: With a 72-hour endurance and a cruising speed of 11 knots, the craft can carry 18 personnel.
• Make in India Initiative: This vessel is the first in a series of five DSCs being constructed by TRSL under the Ministry of Defence's Make in India initiative.
• Historic Achievement: DSC A20 is the first Indian Naval Commissioned Vessel built and delivered by a private shipyard in Bengal.

Strategic Importance

The DSC A20 is designed to play a crucial role in supporting critical underwater operations such as repair, maintenance, and salvage of ships inside and around harbors. Additionally, it will serve as a training platform for the Navy's diving cadre, enhancing operational readiness.

Titagarh's Growing Maritime Presence

Umesh Chowdhary, Vice-Chairman and Managing Director of Titagarh Rail Systems Limited, emphasized the significance of this achievement, stating, "The handover of DSC A20 is an important milestone for Titagarh and a reflection of our growing role in India's maritime sector. We are proud to contribute to the Navy's operational readiness through vessels built entirely in India."

Expansion Plans

TRSL is set to further strengthen its position in the maritime sector:

• The company's Board has approved transferring the shipbuilding business into a wholly-owned subsidiary, Titagarh Naval Systems.
• TRSL is establishing a new state-of-the-art shipyard at Falta, south of Kolkata.
• The new facility will be capable of handling ships up to 180 meters in length and producing 12-16 vessels annually.
• Titagarh Naval Systems will have an order book above ₹575 crores (including taxes).

Track Record and Future Outlook

TRSL's Shipbuilding and Maritime Systems Division has already delivered more than 35 vessels, including coastal research ships for various government agencies. The establishment of Titagarh Naval Systems is expected to allow TRSL to focus on its core railway systems business while enabling aggressive growth in the shipbuilding sector.

As India continues to emphasize indigenous design and shipbuilding capacity, Titagarh Rail Systems Limited is well-positioned to play a pivotal role in the nation's maritime defense and shipbuilding industry.