Wabtec bets big on Railways; hopes to grow its business to Rs 2,500 cr in three years

With India being the fastest growing rail market in the globe, rail technology company Wabtec Corporation hopes to grow its business by over 56 per cent, from the current Rs 1,600 crore to Rs 2,500 in the next three years, betting heavily on Indian Railways’ plans to modernise its rolling stock and electrify its entire network.

One of the largest equipment manufacturers for rolling stock for Indian Railways and metro networks in India, including Namma Metro, Wabtec currently operates from Hosur, Bahadurgarh, and Baddi. It also plans to operationalise its brand-new facility in Rohtak in Haryana, in which Rs 150 crore is being invested, by the end of 2023. The company next plans to consolidate its operation at Baddi and Bahadurgarh into this new factory.

Wabtec supplies couplers, brake controls, automatic doors, HVAC, and pantographs to Integral Coach Factory (ICF), Bharat Earth Movers Limited (BEML), and Alstom, which operates from Sri City near Chennai, among others.

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In an interaction with DH at the company’s massive facility in Hosur, 30 km from Bengaluru, Wabtec Transit India Managing Director Ajay Mani said Vande Bharat train sets, which can run up to a speed of 180 km per hour, promises to be the biggest driver of growth along with metro transport systems and regional trains being planned across the country.

He said the company hopes that 50 per cent of its total growth will come from the Hosur facility and the remaining 50 per cent from Rohtak. The Hosur plant will also get into manufacturing passenger information systems, event recorders, relays, and electronics for metro systems across India.

The company’s business has been on the rise since 2017 and was Rs 1,400 crores in 2019, but Covid-19 slowed down the growth with the business sliding down to Rs 1,191 crore. It grew to Rs 1,468 crore in 2021, and Rs 1,625 crore (2022).

“We hope to expand our business to reach Rs 2,500 crores by 2025. We expect a 20 per cent growth year on year. We have immense potential to grow as India is the fastest growing rail market in the globe. With the government planning to introduce tens of Vande Bharat train sets, we hope it will accelerate our business,” Mani told DH.

Wabtec supplies brakes, couplers, automatic doors, and pantographs for Vande Bharat trains indigenously developed at ICF’s Perambur facility in Chennai. Mani also said his company’s business will only grow with the Union Government planning to produce at least 100 Vande Bharat trains a year. Currently, 10 Vande Bharat trains are running in the country.

Mani said Wabtec is also “bullish” about Indian Railways’ plans to electrify its network by 2024, saying the company is one of the very few that supplies high-reach pantographs, which allows the train to collect power through overhead lines.

“We believe the Indian Railways will need about 18,000 high-reach pantographs in the next 10 years, including the ones needed for the dedicated freight corridors. Since we are one of the approved suppliers, we eye a huge business in this sector,” he said, adding that the company has already handed over 500 pantographs to the Indian Railways.

Wabtec plans to produce 1,400 to 1,800 high-reach pantographs every year from the Hosur and Rohtak plants. “We have invested enough in Hosur to produce pantographs for many years,” the top executive added.

Besides Vande Bharat, other markets that offer hope to Wabtec, according to Mani, are regional rail networks, metro, and EMU. The company provides rolling stock equipment to all 15 existing metros in the country and 16 metros that are being built.

“Metro is another major market for us as we supply to BEML and Alstom. Since more Indian cities are likely to place themselves on the Metro map, we hope to supply equipment to manufacturers. We will also start manufacturing passenger information systems, event recorders, relays, and electronics for metro systems in the country,” Mani added.