Amid the changing geopolitical conditions, Texmaco Rail & Engineering, currently India’s largest wagon maker, is eyeing the US and European markets to step up its export of rail components.
The Adventz group company currently exports rail components and wagons to 16 countries.
“As the Trump administration has imposed higher tariffs on Chinese imports and proposed to impose new tariffs on Mexico, we will gain more from it. In terms of cost-effectiveness, India’s exports to the US will be benefited,” Texmaco Rail & Engineering Executive Director and Vice Chairman Indrajit Mookerjee told businessline.
Texmaco Rail & Engineering
The US administration under President Donald Trump has imposed a new 10 per cent tariff on all Chinese imports. Trump has also threatened 25 per cent tariff on Mexico, potentially upending bilateral trade ties.
“During Joe Biden’s era, Chinese firms were exporting rail components to the US through Mexico to circumvent high tariffs. As the US has proposed to impose new tariffs on Mexico, too, we will get advantages. This will result in good business for us,” Mookerjee pointed out.
The company is building a new foundry unit in Paradip, Odisha, with an investment of around ₹550 crore. The unit will be export-oriented, especially targeting the US and Europe.
In the Czech Republic, Texmaco Rail has a joint venture firm, Nymwag, which manufactures wagons and components.
Texmaco Rail & Engineering
“In Europe, currently there is a problem in rail component supply. Earlier, the components were produced in Ukraine. Those factories have been severely damaged due to war. So there is a vacuum, and we are trying to fill it,” Mookerjee said.
The Kolkata-headquartered company currently exports a huge number of wagons to Liberia. It is eyeing more wagon shipments to Africa and West Asia. It also plans to set up an assembly unit near West Asia once the volume of wagon exports increases substantially.
Exports contributed around 5 per cent to the turnover of the company in the last financial year. It aims to increase the share to at least 15 per cent in the next couple of years.
The company’s consolidated revenue from operations stood at ₹3,502.87 crore last fiscal.
