Czech Railway Industry explores growth opportunities in India’s thriving rail sector

The Czech Railway Industry Companies are eager to invest and establish a strong presence in India’s well-known railway sector. Despite the geographical distance and perceived challenges, the reality is quite promising for the Czech industry. To capitalise on this potential, the Association of Czech Railway Industry (ACRI) has organised a business mission to India, aiming to forge new partnerships and explore opportunities in this rapidly expanding market.

More Details:

Although the world’s most populous country is far away and it may seem difficult for the Czech industry to succeed there, the opposite is true. Some members of ACRI – the Association of Czech Railway Industry companies are already established in the local market, and other Czech manufacturers have a great chance to succeed. Rail transport has a long tradition in India, and the state massively invests in its development, both in terms of safety and acceleration and comfort.

India is very interested in purchasing and importing advanced technologies and products from Europe. A notable example is the well-known Vande Bharat express project. The business mission to India, organised by ACRI together with the Ministry of Foreign Affairs of the Czech Republic, was attended by the representatives of 10 member companies of the association.

Experts Insights:

Marie Vopálenská, Director of ACRI said, “We encountered exceptional interest from the Indian side in the presentation of our services and products. We received a very warm welcome, for example, at the Ministry of Railways in Delhi, at the PHD Chamber, and at the Delhi Metro company. We also visited the Rail Coach Factory in Kapurthala and other companies.”

Mr. Zdeněk Malkovský, CEO of VÚKV, said “For us, the trip was significant because we could see the real situation in the development and testing of rail vehicles and get to know the quality of production. We also have a partner in India who monitors the specifics of the local market and tenders for us.” At the same time, it is essential for us to adhere to our standards, procedures, and rules. This has always paid off for us in the past.

Mr. Marcel Ujfaluši, head of Business Development and Marketing, said “We see great potential in the modernization of intercity fleets, which connect distances of 400-800 km. In the near future, it concerns 200 already tendered Vande Bharat sets, and in the longer term, 400 more sets that Indian Railways intend to tender, assessing the opportunities opening up for the BONATRANS GROUP on the local railway.” According to him, the leading European manufacturer of wheelsets will also have the chance to win contracts in urban public transport. “Due to continuing urbanisation, India will also address its shortcomings in this segment. For example, it involves the construction of additional metro lines in New Delhi, Mumbai, and elsewhere. Routes will also open in cities with populations over two million, of which there are dozens in the country. We want to equip metro cars with wheelsets from Bohumín. We bring solutions to India that have proven themselves in Western markets, especially products with longer service life.”

Mr. Riziero Boccia, Business Development Manager at DAKO-CZ, said “A business mission in such a significant territory as India is one of the activities without which Czech export companies can hardly manage. The event itself does not guarantee success but is an integral part of building relationships and contacts with local partners and customers. During the visit, we gained important information that will undoubtedly be crucial for our further activities. For example, we learned that one of the manufacturers plans to expand its product portfolio, which means a new and specific business opportunity for us.”

Mr. Adam Karas, Marketing and PR Manager at MSV elektronika, said “We highly appreciate the organisation, preparation, and support of everyone involved in the realisation of this event. Although the program was demanding, we greatly enjoyed the mission. Thanks to the arranged meetings in local companies and organisations, we made contacts with many interesting people. This gives us the potential to find a suitable partner for the Indian market.”

Market Opportunities:

  • Opportunities mainly exist for suppliers of components such as wheels and wheelsets, brake systems, seats, or safety systems.
  • There is a chance to supply finished products or transfer technologies to India and manufacture directly there in cooperation with local companies.
  • Knowledge of local conditions is essential for a successful entry into the Indian market.

Members Presence:

Other participants similarly evaluate the trip. In total, ten companies went to India: DAKO-CZ, MSV elektronika, TTC, VÚKV, VZÚ Plzeň, BONATRANS GROUP, AMiT, PASSENGERA, PARS KOMPONENTY, and ŠKODA GROUP.

Source: ACRI – Press Release | Images Credit: ACRI

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