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Titagarh Rail Systems to foray into shipbuilding biz

 Titagarh Rail Systems Limited (TRSL) is expanding its business by entering the shipbuilding industry as Board of Directors (BoD) has approved the creation of a wholly-owned subsidiary named Titagarh Naval Systems Private Limited (TNSPL), according to a BSE filing.

“The BoD have in principally approved transfer of the SMS business of the company into a wholly owned subsidiary- Titagarh Naval SystemsPrivate Limited (subject to required regulatory approvals). This will enable the company to focus on its core activity of Railway systems and allow the new company to pursue growth in the shipbuilding sector under the various initiatives and schemes announced by the GoI for this sector,” the company said in an investors presentation.

Having successfully delivered 35+ vessels to the Indian Navy, Indian Coast guard, NIOT, GRSE, etc., the new Company proposes to establish and expand its facility at Falta with a capacity to produce 12-16 vessels per year of up to 180 meters in length. The new company will pursue this growth opportunity independently or via induction of strategic partners / investors.

The board has also mandated the Committee of Directors referred to above to identify a suitable strategy for the Defence and Bridges business segment including inter alia identification of a strategic, joint venture partner aiming at allowing the company to focus on its core business of Railway systems while also capturing value created in the defence and bridge segment.