Kolkata, July 9 (IANS) City-based wagon-maker Titagarh Wagons Ltd (TWL) has acquired the assets of French company IGF Industries-Arbel Fauvet Rail (AFR), a top company official said here Friday.
TWL acquired the assets and business of AFR Wednesday. ‘This is the first ever overseas acquisition by TWL,’ chairman J.P.Chowdhury said at a press meet.
‘This acquisition is expected to have positive implications for our cost, technology and management competitiveness as we evolve from an Indian to a global player. This will help us in tapping not only the European market but global market as well.
‘AFR has large number of patented designs of specialised wagons which will help the group to gain a leadership position in India,’ he said.
TWL expects to turn around the acquired company through scaling up the wagon production of the plant at Douai in northern France to a level of 1,000 wagons a year, outsourcing major components and fabricated material from India and by investing in revamping the operations, Chowdhury said.
‘Out of the deal size of 15 million euros, only 1.92 million euros was paid for the assets and the rest 13 million euros was actually working capital,’ Chowdhury said.
It plans to invest another 3 million euros in revamping its operations including putting in robotic machines.
Titagarh is retaining 80 of AFR’s 226 employees.
AFR is the only wagon maker in France. It has a market of around 15,000-20,000 wagons per annum.