Jupiter Wagons to invest ₹2,500 crore to transform subsidiary, set up new wheelsets plant
Jupiter Wagons Ltd. announced on Tuesday, September 17, that it will change the name of its subsidiary Bonatrans India Pvt. Ltd, to Jupiter Tatravagonka Railwheel Factory Pvt. Ltd.
It also said that it will invest a sum of ₹2,500 crore to enhance the annual production capacity of Jupiter Tatravangonka Railwheel Factory Pvt. Ltd. from the current 20,000 forged wheelsets per annum to 1 lakh forged wheelsets per annum.
Jupiter Wagons will increase this capacity through the construction of a new state-of-the-art production facility for forged wheelsets in Odisha.
This facility is expected to be operational by calendar year 2027 and will cater to both domestic and international markets on commencing operations. Nearly 50% of the total production capacity will be dedicated to exports, mostly to its partner Tatravagonka A.S and other European players.
Jupiter Wagons has awarded the contract to Schuler Pressen GmbH, a renowned German Engineering Company, known for its for the supply and erection of the fully integrated forged wheel and axle line.
Through this integrated forging line, Jupiter Wagons intends 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,” the company statement said.
Jupiter Wagons had approved the acquisition of Bonatrans India for ₹271 crore in March this year. In July, the company had raised ₹800 crore through its QIP.
Shares of Jupiter Wagons ended 2% lower on Tuesday, at ₹534. The stock has risen 67% so far in 2024.