Concord Control Systems Deepens Partnership with Progota, boosting stake to 46.5% Accelerate Kavach ATP Deployment

Concord Control Systems Limited (BSE: CNCRD), India's leading manufacturer of embedded electronic systems and critical electronic solutions company, today announced that its Board of Directors has approved a further investment to acquire up to 46.5% equity shares of Progota India Private Limited, targeting the commercialisation and nationwide deployment of Kavach 4.0, India's flagship Automatic Train Protection (ATP) solution.

This strategic move focused primarily on expanding the reach and supply capabilities for Kavach 4.0, the critical rail safety technology engineered to prevent collisions by automatically controlling train speed and enforcing signal compliance. Progota India, incorporated in 2021, is a specialist in the development and delivery of railway automation and Kavach ATP systems, with the latest order book reflecting the rapidly rising demand from major railway zones.

"The strategic partnership with Progota enables Concord to play a pivotal role in driving safer, smarter, and zero-emission rail transport for India.The acquisition highlights our commitment to indigenously manufactured, SIL4-certified Kavach technology, which is set to anchor India's largest project for railway safety modernization. It strategically positions Concord and Progota as premier contributors to this sector. This move not only deepens our integration into advanced technology domains such as train automation and digital signalling, but also enhances long-term value creation for our shareholders," said Gaurav Lath, Joint Managing Director, Concord Control Systems Limited.

Progota specializes in scientific and technological services related to railway automation, with operations and R&D serving pilot and development contracts for Indian Railways. The acquisition is strategic and synergistic, combining Concord's manufacturing and system-integration strengths with Progota's research and development capabilities, thus accelerating institutionalisation and scaling in India's rail-safety market.

Indian Railways' policy ambitions include the rollout of Kavach onboard ~ 13000-15000 locomotives and across ~70000 track kilometers, making it one of the world's largest ATP deployments. With ongoing contracts and accelerated tender activity, the Indian market for Kavach systems is expected to remain robust with strong revenue visibility for technology suppliers.

This expanded partnership aligns with the Government of India's Atmanirbhar Bharat and Make-in-India vision, positioning Concord and Progota as key contributors to the country's rail modernization program.

Shares of Concord Control Systems Limited was last trading in BSE at Rs. 2692.50 as compared to the previous close of Rs. 2730.00. The total number of shares traded during the day was 14500 in over 74 trades.

The stock hit an intraday high of Rs. 2750.00 and intraday low of 2675.00. The net turnover during the day was Rs. 39436175.00.

Source : Equity Bulls

Keywords

ConcordControlSystems INE0N0J01014 IndustrialProducts Investment ProgotaIndia KAVACH4