What's In Store For Titagarh Rail In FY25? | NDTV Profit - video Dailymotion

NDTV Profit

Watch What's In Store For Titagarh Rail In FY25? | NDTV Profit - NDTV Profit on Dailymotion

Transcript

00:00All right, welcome back.

00:15We are in conversation with Umesh Chaudhary, the Vice-Chairman and MD of Titagarh Rail

00:20Systems and well, Umesh, good morning and thank you so much for joining in.

00:25Well, you know, the reason why we also wanted you today was not just the business outlook

00:31but also an idea about what the entire sector can expect now that we have the cabinet in

00:38place and the big news is as far as the current government is concerned is that there seems

00:44to be continuity at least in terms of their own plans because the ministers remain the

00:51same.

00:53Even in terms of the railway ministry, we have a continuation there and that's always

00:57a positive specifically because your own company also belongs to that sector.

01:02Your reading, your understanding of the current policies, all that you foresee that could

01:08come through over the span of the next five years with respect to this government?

01:13Yeah, good morning, thank you for having me with you.

01:17So absolutely, we are very excited, very exuberant that the continuity remains, particularly,

01:25you know, in the Modi 2.0 but also Modi 1.0, the railway has been a thrust sector.

01:32But if we really look at what has happened to the railway as a sector over the last couple

01:36of years under the current railway minister, Minister Vaishnav, it has been transformational.

01:43I don't think that there are, you can actually say that there has been a growth, there has

01:49been a transformation, this would be a more appropriate phrase to use.

01:54And I always believe that this journey which has started is just about begun because we've

02:00heard the different speeches of the prime minister himself but also the railway minister

02:06speaking about ideas like weightless free travel, like increasing the modal share of

02:15the freight to almost 50% compared to the other modes of logistics, bringing down the

02:23overall cost of logistics from the current 14% to a single digit.

02:27So all of this means that railway has to be in the epicenter of a lot of action.

02:34So a lot of policy decisions but a lot of implementation along with those policy decisions.

02:41And this team, they could not have been a better team than this to be able to see this through.

02:47You know, I'm going to take up that bit on the cost of logistics forward because in fact

02:53we've had two marquee investors who spoke to us this very morning about the fact that

02:59the cost of logistics has been brought down to near a single digit.

03:03The question really is that, is there scope for more of this to come through over the

03:08span of the next few years?

03:10Absolutely.

03:11You see, currently the share that the railway has of the overall logistics is still very,

03:19very low.

03:20It's still hovering around 30%.

03:22So the delta from here to 50% is in itself a very large delta that has to be covered.

03:30And it is a no-brainer that for bringing down the cost of logistics, the only option

03:36is to move the cargo away from road and air to rail and water.

03:41With the geographical limitations of water, rail is the only viable mode which can really

03:47help A, environment and B, cost of logistics.

03:50I mean, we all know that railway is almost six times more environment-friendly in terms

03:55of carbon emission and whatnot.

03:59Also the sector, particularly both in terms of the cargo and in terms of the people, railway

04:07is something which very rightly so has been an important part of the vision strategy of

04:16the Honorable Prime Minister and of the current government.

04:20And I believe that somebody like me who has been associated with the railway sector over

04:27the last 30 years has seen the kind of impetus, the kind of momentum that the current Railway

04:34Minister has been able to provide.

04:36It is really phenomenal.

04:37Amisha, you know, in terms of your own business, what kind of growth are you envisaging for

04:44your freight rail system segment?

04:47And what of it when it comes to your passenger rail segment going forward over the next one

04:52year?

04:53So, as far as the freight is concerned, you know, we already touched the mark of 700 wagons

05:00a month on an average.

05:03Last year, we have already announced that we are looking at getting to a thousand wagons

05:06per month.

05:08And the current capacity that we have planned would be around that figure.

05:12And then of course, going forward as the overall market size grows, we will look at further

05:17capacity expansion.

05:19As far as the passenger is concerned, that is a business that is just about starting.

05:25Last year, we did just three to four coaches per month, which was a metro.

05:29Now, our new lines are coming into production.

05:32And ultimately, within the next couple of years, we will have a capacity of producing

05:37almost 850 passenger trains, passenger coaches per year, which will be a mixture of metros

05:45and Vande Bharat.

05:46So, our Vande Bharat will also start production next year.

05:50A quick question on competition at the moment, Umesh.

05:54What can you tell us about the current scenario when it comes to your peers?

05:59I think there is enough in the market.

06:04What is most important is that we should be ahead in the curve, we should be more competitive

06:09than our competitors.

06:10We will be able to get tenders.

06:13In terms of the two segments that we have, whether it's the freight and the passenger,

06:16we have two different completely separate set of competitors.

06:21In the freight wagon, we have been the market leaders.

06:26And in the passenger, there are global companies that we really compete with in the passenger

06:31segment.

06:32If we really look at our business today, we compete with Alstom and VML in the metro coach.

06:39So, both of these companies are well established.

06:43So, on one side, we have the advantage of not having to unlearn what we have to do for

06:49the future.

06:50We are able to implement new ideas, new strategies, set up plans which are much more efficient

06:58and not be straddled with the old legacy equipment.

07:03On the other side, they are very large companies, they are global, Alstom is of the world, etc.

07:08They are very large multinational companies.

07:11So, we believe that we are able to create our niche space in the market by ourselves.

07:19Absolutely.

07:20Well, we'll leave it at that, Ramesh.

07:22Thank you so much for joining us and taking us through your views, of course, not only

07:27on the business, but also on the entire environment.

07:30We look forward to having another conversation soon on The Outlook.

07:34Well, that's the management of Tidagarh Rail Systems telling us about what's in store.

07:39On that note, we've completely run out of time on The F&O Show, but lots more lined

07:44up on the other side.

07:45Stay tuned in.

07:46You're watching NDTV Profit.

What's In Store For Titagarh Rail In FY25? | NDTV Profit

Category

Transcript

Recommended