Titagarh Rail Systems Sells Italian Associate to Stabilize Financial Future

Titagarh Rail Systems Ltd's Italian associate, Titagarh Firema SpA, sold its business unit to Fabbrica Italiana Treni S.p.A for 66.09 million EUR. The sale aims to stop financial losses impacting the Indian parent company. Proceeds were used to settle Firema's debts under a court-supervised crisis settlement framework.

In a strategic effort to halt financial hemorrhaging, Titagarh Rail Systems Ltd (TRSL) announced the sale of its Italian associate, Titagarh Firema SpA, to Fabbrica Italiana Treni S.p.A, a state-owned Italian firm, for a net sum of 66.09 million EUR.

This divestment comes after Firema's continuous losses, despite several cash injections from TRSL, leading to significant financial strain on the Indian firm. Vice chairman and Managing Director Umesh Chowdhary confirmed that this deal will shield the company from expected future losses of up to Rs 40-50 crore.

Despite the restructuring, TRSL assured that its Indian operations remain robust, with a strong pipeline worth Rs 10,791 crore in the passenger rolling stock segment, including projects like Metro coaches, Vande Bharat trains, and advanced propulsion systems.