Jupiter Wagons Ltd. will invest around Rs 2,500 crore to build a new plant in Odisha to make forged wheelsets. The facility will increase the annual production capacity of subsidiary Jupiter Tatravagonka Railwheel Factory Pvt. from the current 20,000 forged wheelsets per annum to 1 lakh per annum, according to a statement on Tuesday.
The plant is expected to be fully operational by 2027 and will serve both domestic and international markets after completion. Nearly half of the production capacity will be dedicated to exports, primarily to its partner Tatravagonka AS and other European players.
The company also renamed the unit Bonatrans India Pvt. to Jupiter Tatravagonka Railwheel Factory.
The Odisha project will also enhance operational efficiency in Jupiter Wagons' waggon manufacturing business through complete backward integration, the statement said.
"By establishing this integrated forging line, Jupiter Wagons aims to streamline production processes, ensure superior quality control, and secure the timely availability of critical components for its wagon manufacturing operations. This will strategically elevate the company's business model and further strengthen its margin profile," it said.
"The investment in a new facility housing state-of-the-art manufacturing technology, positions us for greater growth and efficiency," Managing Director Vivek Lohia said.
The company has manufacturing facilities located in Kolkata, Jamshedpur, Indore, Jabalpur and Aurangabad.
In July, the Kolkata-based wagon manufacturer raised nearly Rs 800 crore from the issue of shares to institutional buyers. It is aiming to diversify into sectors such as railway components, commercial vehicles, brake discs, brake systems, and containers. Jupiter Wagons' order book, as of June 30, stands at Rs 7,028.3 crore.
The share price of Jupiter Wagons closed 2.36% lower at Rs 532.6 apiece on the BSE, compared to a 0.11% advance in the benchmark Sensex on Thursday. The announcement was made during market hours.
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