ALONG THE TRANSFORMATION TRACK
DEAR SHAREHOLDERS,
Your company,Texmaco Rail & Engineering Limited, is powering ahead
Along The Transformation Track and it gives me great pleasure in introducing the 2023-24
Annual Report, themed on Transformation.
I take this opportunity to reacquaint you with this enterprise of
National Pride founded by the late Dr K. K. Birla, with a singular vision of-building to
last Now driven by cutting-edge innovation,Texmaco has created value for its customers,
investors, and the nation for decades, with a transformed ideology defined by its current
executive management - that of moving from good to great
We have done this by consistently investing in cutting-edge research,
adopting state-of-the-art technology, keeping abreast of global design developments, and
forging strategic partnerships that spur growth.Today, Texmaco is in serious expansion
mode, and a significant transformation of the Company into a future-ready enterprise is
underway.
BENEFITS OF AN ENABLING ENVIRONMENT
As we speed along the Transformation Track, I must emphasise that our
successful expansion efforts have come on the back of Indias rapid march towards becoming
the third largest economy in the world, and its renewed thrust on boosting infrastructure.
To promote infrastructure building, the government has allotted INR 11,11,111 crore in the
2024-25 Union Budget, a figure that significantly represents 3.4% of our GDP. The National
Infrastructure Pipeline (NIP)
- a group of socioeconomic projects to enhance citizens quality of life
- and the Make in India initiative, are strengthening indigenous manufacturing and
attracting substantial investments to the sector.
To keep pace with the economic thrust, a pressing need to scale up
transport and freight has appeared, since these systems provide a crucial framework to
support business activity.TheGati Shakti masterplan for multimodal connectivity is pushing
the pedal on solutions for the movement of people, goods and services in a cost-effective,
energy-efficient and sustainable manner.The Indian Railways National Rail Plan for 2030
has blueprinted the design of a railway system to increase the modal share of railways in
freight to 45%. Already, a record rail freight volume of 1,591 million tonnes was reached
in full fiscal ending March 2024. In the passenger mobility segment, the Vande Bharat
trains have blended sleek design and space management with high velocity.
This years INR 2.52 lakh crore budget for Railways is evidence of the
governments commitment to enhancing safety and upgrading tracks, building terminal
facilities, resolving connectivity issues and identifying dedicated freight corridors for
cargo movement efficiency. The able and energetic leadership of the Honourable Minister of
Railways, Shri Ashwini Vaishnaw, will steer the Indian Railways towards the Olympic motto
of Citius (faster), Altius (higher), Fortius (stronger).
TEXMACO TRANSFORMING
As a premier multi-discipline, multi- unit engineering and
infrastructure company with a proven track record in manufacturing excellence, Texmaco is
well-positioned to avail opportunities presented by these macroeconomic conditions and be
a major contributor to the cause of building a Viksit Bharat The Company has tided over
the headwinds of the pandemic and unstable geopolitical conditions and is poised
for the next horizon of growth. These ambitions are aided by surging
railway capex and focused fund flows from global investors.
One is happy to share that we recently raised INR 1,000 crore through
the qualified institutional placement of equity shares, garnering a strong response from
investors around the world.
As the demand for wagons and components accelerates in a bustling
business landscape, our carefully planned joint ventures are unlocking synergies founded
on the specialised strengths of each partner. Collaborations with global partners like
Touax, Wabtec, Nymwag and others have allowed us to place a special thrust on our
components business and to ramp up our capacity to manufacture components, wagons and
coaches and secure high levels of operating efficiencies. They also put Texmaco in a
strong vantage point to explore fresh geopolitical opportunities.
Recently, we entered into definitive agreements to acquire a 100% stake
in Jindal Rail Infrastructure Limited in a move to scale up our rolling stock
manufacturing capacity. We also acquired a majority stake in Saira Asia Interiors Private
Limited, enabling us to become a mechanical partner in the commuter mobility segment in
the future.
These partnerships will augment Texmacos productivity and
profitability, thereby elevating our participation and increasing our supply volume in
domestic and foreign markets Asia, the European Union, Africa and Australia.
Also on the anvil are plans for the expansion of our greenfield steel
foundry at Paradeep to address the domestic and export requirements of steel castings that
cater to both the mining and railway segments. This foundry will also focus on crafting
mining components and enable the Company to diversify its product mix.
FOR A CLEANER TOMORROW
As a responsible corporate citizen, we not only pledge to create
economic value for our stakeholders, but also to go beyond profit to find purpose and do
our bit in creating a more equitable world. One of our top sustainability goals is to
safeguard environmental health.
Our future growth plans take into account the imperative to preserve
environmental resources, and we are already taking steps to increase our use of clean
energy. In a momentous step, theTexmaco steel foundries have tied up with Ampin Energy
Transition Pvt. Ltd. to establish a 10 MW open-access solar power plant in Chhattisgarh,
marking the beginning of an era of switching to green energy practices.
We also acknowledge our responsibility to give back to the
disadvantaged communities living in our catchments. Our corporate social responsibility
(CSR) projects have mechanisms in place to extend the necessary support to local families
for healthcare and childrens education. In support of national priorities and in line with
the Honourable Prime Minister Shri Narendra Modis drive of skill development among Indian
youth, we are conceptualising a project to set up skill development centres in Odisha and
West Bengal.
To our employees, our most valuable asset, we strive to offer career
growth opportunities, skilling and training, a compassionate, positive work environment,
and absolute safety in the workplace.
HOPES FORTHE FUTURE
Texmacos time-tested corporate governance model consists of processes
and structures that guides its management and secures maximum value for all stakeholders.
Our elected Board of Directors set strategic goals designed to bolster business growth and
inculcate accountability for achieving them.
TheTexmaco vision of always putting the customer first, delivering
excellence and manufacturing world-class railway products for a worldwide client base is
coming alive every day. All thanks to you, theTexmaco family.
Mahatma Gandhi had famously said, The future depends on what you do
today. Inspired by the words of the Father of the Nation who also had a significant role
in the idea called Texmaco being born let us pledge to do today what will benefit our
planet and our people in the future.
With that overarching thought, it is my privilege to present to you the
Annual Report for 2023-24. *
Sincerely,
S.K. Poddar
Chairman