In a strategic development, Jupiter Wagons Limited has acquired Bonatrans India, establishing itself as the first Indian rolling stock manufacturer to boast an integrated wheel plant.
More Details:
Jupiter Wagons Limited (JWL), a leading provider of comprehensive mobility solutions spanning rail, road, and marine transportation, proudly declares acquisition of Bonatrans India Private Limited (BIPL) for a sum of Rs. 271 Crore. This strategic move marks a significant milestone for JWL, positioning it as the first rolling stock manufacturing company to have its own wheel plant.
BIPL, situated in Chhatrapati Sambhaji Nagar (Aurangabad), Maharashtra, stands as a distinguished manufacturer of rolling stock wheelsets. With a production capacity of 20,000 Wheels and 10,000 Axles annually, the acquisition promises to bolster JWL’s self-reliance and operational efficiency while reducing dependency on imported wheels. BIPL’s esteemed clientele includes JWL, BEML Limited, Alstom Rail Transportation India Pvt. Ltd., Plasser India Pvt. Ltd., and Titagarh Rail Systems Ltd.
Acquisition will Boost Make in India initiative:
As part of the Make in India initiative, JWL is poised to invest an additional 1000 crores over the next two years. These investments will enhance production capacity and drive the plant towards full backward integration. The ultimate goal is to cater to the burgeoning needs of the Indian railway sector, with aspirations to transform it into an export hub, leveraging JWL’s existing esteemed partners.
MD Stated:
Commenting on the occasion, Mr. Vivek Lohia, Managing Director of Jupiter Wagons said, “As we embark on this transformative journey, we are thrilled to announce Jupiter Wagons Limited’s acquisition of Bonatrans India Private Ltd. This strategic move not only strengthens our position as an innovative leader in integrated mobility solutions but also propels us towards becoming a comprehensive rolling stock manufacturer. With our commitment to excellence and the support of esteemed partners, we are poised to meet the evolving needs of the Indian railway sector while making significant strides in the global market. This acquisition move underscores our unwavering dedication to innovation, efficiency, and customer satisfaction.”
Significance of the Acquisition:
- Following the acquisition, Bonatrans Group, existing shareholder and leading wheel manufacturer in Europe, will continue its vital role as a minority shareholder, ensuring continuity and synergy within the newly integrated structure.
- The successful completion of this acquisition was made possible by the expertise and guidance of esteemed advisors. Shardul Amarchand Mangaldas & Co. acted as the legal advisors to JWL, while Ernst & Young LLP ensured comprehensive financial, tax, and ESG compliance throughout the transaction process.
- JWL remains committed to innovation, sustainability, and contributing to the growth trajectory of the Indian transportation sector. The acquisition underscores its dedication to fostering indigenous manufacturing capabilities and fortifying the nation’s position on the global stage.
Conclusion:
This acquisition marks a pivotal moment for Jupiter Wagons Limited and the Indian rail industry, setting a new benchmark for self-reliance and innovation. By merging Bonatrans India’s capabilities with its vision, JWL is poised to redefine urban mobility and boost India’s presence in the global market. This move not only highlights JWL’s strategic foresight but also its dedication to propelling the Indian rail sector towards a future of sustainable growth and international acclaim.
Source: JWL – Press Release | Image Credit (representational): Jupiter Wagons Limited, Bonatrans India
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