Aditya Birla Group flagship Hindalco Industries Ltd has tied up with Texmaco Rail & Engineering Ltd, a specialised engineering company, to develop and manufacture world-class aluminium rail wagons and coaches that will help Indian Railways achieve its emission goals and bolster operating efficiency, the company said in a filing on Thursday.

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Shares of Hindalco were almost flat in trade today. At 12:54 pm, the scrip gained 0.043 percent to Rs 469.10 apiece on the NSE. The stock has rallied 10 percent in the last one month. On a year-to-date basis, Hindalco shares are down 4 percent, while it rose 6.61 percent in the last one year.

The aluminium major said that Indian Railways has launched 'Mission 3000 MT' with a target of doubling freight capacity to reach 3,000 million tons by 2027 through augmentation of rolling stock, with the objective of achieving 45 percent market share in freight.

To meet this ambitious target, the Railways is actively seeking to improve wagon design, and inviting wagon manufacturers to contribute their own designs to enhance overall capacity and the life of railway assets, Hindalco said.

"Recognising these developments in the Railways, Hindalco and Texmaco have joined hands to explore opportunities, where Hindalco will provide profiles, sheets and plates of its unique aluminium alloys, along with fabrication and welding expertise," it said.

The company’s in-house aluminium freight rake launched last year is 180 tons lighter and offers 19 percent higher payload to tare weight ratio, consumes less energy with relatively negligible wear and tear. Texmaco, being an expert in manufacturing freight cars for 80 years, will bring in technical expertise and be responsible for design, setting up the factory, production line and providing skilled workers.

"With launch of India’s first aluminium rake, we have demonstrated the benefits of higher payload and significant CO2 reduction that aluminium rakes offer. This partnership will further strengthen our role in enhancing the value proposition for the freight industry as well as for passenger mobility, while helping the Railways achieve its net zero objectives," said Satish Pai, Managing Director at Hindalco.

"This valuable partnership will go a long way in creating innovative and sustainable products further reinforcing our commitment towards reducing the industry’s carbon footprint and driving a positive environmental impact," said Indrajit Mookerjee, Vice Chairman, Texmaco Rail & Engineering.

First Published:Aug 10, 2023 1:02 PM IST