ABB India Partners With Titagarh Rail For Metro Projects In India
The partnership with Titagarh provides the foundation to enter and expand the footprint in the key market, says ABB.
The agreement includes technology transfer and licencing and has already had an early success by winning orders to design and supply equipment for metro coaches for Gujarat, according to an exchange filing on Monday.
The partnership involves Titagarh purchasing ABB propulsion systems, including traction converters, auxiliary converters, traction motors, and train control and management system software.
Titagarh will also secure the manufacturing rights and production licence for traction motors, along with the complete transfer of technology for the GoA 4 (driverless metro) TCMS software from ABB.
"This strategic partnership with Titagarh provides the strong foundation to enter and expand our footprint in this key market, while also supporting the efforts to make rail transportation in India sustainable through our energy-efficient technology, fully produced in India," Edgar Keller, president of traction business at ABB, said.
Titagarh Rail had earlier announced that it will raise up to Rs 700 crore through qualified institutional placement, for strengthening the company's position in its core businesses and fund future growth initiatives.
Shares of ABB closed 1.52% higher at Rs 4,350 apiece on the NSE, while those of Titagarh closed 3.53% lower at Rs 940.2 apiece as compared with a 0.19% decline in the benchmark Nifty 50.