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Titagarh Wagons has divested part of its holdings in its Italian subsidiary, Titagarh Firema SpA (TFA). The government of Italy has acquired 30 percent of the entity for 10 million euros and UAE’s PE firm Hawk Eye has put in 4.5 million euros for another 14 percent stake. With this divestment, Titagarh’s holding would be down to 49.7 percent.

The Italian subsidiary was acquired in 2015 and the company ran into headwinds because of the COVID-19 pandemic and some legacy contracts.

“The company is now turning around and the very fact that the government of Italy has come in as an equity stakeholder would give us a lot of strategic support,” said Umesh Chowdhary, Managing Director and Chief Executive Officer at Titagarh Wagons.

The company's India orderbook right now is at about Rs 10,000 crore. The order book in Italy is about 500 million euros which translates to about Rs 3,000-4000 crore.

“Basically the investment that was done into Firema was a strategic investment to enable Titagarh Wagon also to enter into the coach market in India. We have been able to accomplish that, and we have been able to get the technology transfer and credentials. Today, Titagarh Wagon on a standalone basis is doing both, freight wagons and coaches,” said the management.

Also Read: Titagarh Wagons aims to double production in a year and hiring over five

For the full interview, watch the accompanying video

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