India-based railway wagon builder Titagarh Wagons has decided to exit its French rolling stock manufacturing subsidiary Arbel Fauvet Rail (AFR).
The Indian firm decided to leave AFR just weeks after a commercial court in Paris ordered the liquidation of the French subsidiary.
Titagarh Wagons vice-chairman and MD Umesh Chowdhary said: “We have resolved to move out from AFR, as it was making losses of 4-5 million Euros annually for the last three years, due to a general slowdown, and it required more capital. Also, we decided to pump in funds where growth lies.”
Titagarh Wagons acquired AFR in 2010, following which it was renamed AFR Titagarh. Since its acquisition, Titagarh Wagons has invested more than Rs1bn ($13.93m) in the company.
Chowdhary told PTI that the Indian rail wagon builder will now put more focus on manufacturing metro coaches.
Titagarh Firema recently emerged as the lowest bidder to supply 102 metro coaches for Pune Metro Rail in India. The tender was issued by Maharashtra Metro Rail.
The scope of works under the contract includes design, manufacturing, supplying, testing and commissioning of the metro rail units. Titagarh will also provide necessary training to Pune Metro personnel.
Overall, the value of the contract is approximately Rs11.25bn ($156.73m).
The majority of the metro coaches will be built in its Indian manufacturing plant in Nagpur while some of the units will be delivered by the Italian facility.