Jupiter Wagons Limited announces Strategic Transformation of Subsidiary

Jupiter Wagons Limited has announced a strategic transformation of its subsidiary, changing the company's name from Bonatrans India Private Limited to Jupiter Tatravagonka Railwheel Factory Private Limited.

In addition, Jupiter Wagons has revealed significant capacity expansion plans for this subsidiary, with the establishment of a new facility featuring state-of-the-art production lines for forged wheelsets. The new plant, located in Odisha, will increase the annual production capacity of Jupiter Tatravagonka Railwheel Factory Private Limited from the current 20,000 forged wheelsets per annum to 100,000 forged wheelsets per annum by investment of approx Rs.2,500 Crore.

The facility is expected to be fully operational by calendar year 2027. Once completed, it will serve both domestic and international markets, with approximately 50% of the production capacity dedicated to exports, primarily to its partner Tatravagonka A.S and other European players. This move aligns with the company’s strategy to support the "Make in India" initiative, boosting India's manufacturing capabilities and strengthening the company's role in the global supply chain.

The project will also enhance operational efficiency in Jupiter Wagons’ wagon manufacturing business through complete backward integration. 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.

Jupiter Wagons has awarded a contract to Schuler Pressen GmbH, a renowned German engineering company known for its cutting-edge forging technology, for the supply and erection of the fully integrated forged wheel and axle line.

Commenting on this development, Mr. Vivek Lohia, Managing Director of Jupiter Wagons, said, "We are excited to announce the transformation of our subsidiary, now named Jupiter Tatravagonka Railwheel Factory Private Limited. The investment in a new facility housing state-of-the-art manufacturing technology, positions us for greater growth and efficiency. Jupiter Wagons continues to take bold steps toward a more sustainable, efficient, and globally competitive future for the rail infrastructure manufacturing industry in India. This latest investment underscores our vision of innovation and excellence as we now aim to deliver world-class products to global markets.”

Shares of Jupiter Wagons Limited was last trading in BSE at Rs. 532.60 as compared to the previous close of Rs. 545.45. The total number of shares traded during the day was 159474 in over 8148 trades.

The stock hit an intraday high of Rs. 553.90 and intraday low of 521.75. The net turnover during the day was Rs. 85010303.00.

Source : Equity Bulls

Keywords

JupiterWagons INE209L01016 CommercialVehicles Subsidiary NameChange