Individually, RK Forgings surged 8 per cent to Rs 440, while TRSL gained 3.4 per cent to Rs 430 on the BSE. In comparison, the S&P BSE Sensex was up 0.4 per cent at 63,165 at 09:32 am. Thus far in the calendar year 2023 (CY23), RK Forgings has zoomed 68 per cent and TRSL has skyrocketed 93 per cent as against 3.3 per cent rise in the benchmark index.
A consortium between RK Forgings and TRSL has been awarded the contract to manufacture and supply 15,40,000 forged wheels over a span of 20 years, under the Atmanirbhar Bharat Initiative by Ministry of Railways, Government of India.
The contract will see the consortium delivering 40,000 forged wheels during the first year, 60,000 wheels in the second year and 80,000 wheels every subsequent year thereafter, with the total contract valued at Rs 12,226.5 crore.
In April, these companies had announced that the consortium of RK Forgings and Titagarh Wagons (RKFL-TWL Consortium) had received the Letter of Award (LoA) from the Ministry of Railways, Government of India w.r.t “Manufacturing and Supply of Forged Wheels under long term agreement under Aatma Nirbhar Bharat”.
“The successful execution of this project will require a capital expenditure ranging from Rs 1,000 to Rs 1,200 crore. To meet this financial requirement, both companies will contribute equity on an equal basis, ensuring a robust funding structure to support the project’s capital expenditure needs,” the companies said in a press release.
RK Forgings is engaged in manufacture of forged products. The Company supplies to various sectors like Automotive, Railways, Farm Equipment, Bearings, Oil & Gas, Power and Construction, Earth Moving & Mining, both in India & overseas markets. The Company is a critical safety item supplier for undercarriage, Bogie & Shell parts for railway passenger coaches and locomotives.
TRSL, meanwhile, offers mobility solution to billions with its prominent presence in both the Passenger and Freight Rolling Stock. TRSL is the largest private sector manufacturer of Wagons and established player in railway coaches (EMUs, MEMUs).
TRSL recently received the largest-ever order for Wagons from Indian Railways and is currently executing the order for 104 Metro Coaches for the Pune Metro and has already started delivery of Metro Coaches of aluminum body, with the design developed in partnership with its Italian venture. The manufacture of Propulsion & Train Electricals, Metallic Bridges, Shipbuilding, and products for the country’s Defence establishment are the other business segments of Titagarh.