homebusinesscompaniesTexmaco Rail to ramp up exports, plans other growth initiatives — CFO Hemant Bhuwania responds to QIP news
Texmaco Rail to ramp up exports, plans other growth initiatives — CFO Hemant Bhuwania responds to QIP news
Texmaco Rail and Engineering is embarking on an exciting journey of growth and expansion through a QIP issue and increased export activities. By securing its financial position and meeting the demands of major railway projects, the company is poised to emerge as a key player in the Indian and international railway infrastructure markets. With its visionary leadership and strategic approach, Texmaco Rail is set to thrive in the evolving landscape of the railway industry.
Texmaco Rail & Engineering, one of India's leading railway infrastructure players, is planning to significantly expand its presence beyond domestic market by capitalising on international opportunities.
Responding to a recent news about the company's fund raising plans, Texmaco's Chief Financial Officer (CFO) Hemant Bhuwania discussed the company's upcoming plans and strategic initiatives, including the fund raising, in an exclusive interview with CNBC-TV18.
As a prominent player in the railway infrastructure sector, Texmaco Rail is gearing up to undertake a qualified institutional placement (QIP) issue to strengthen its capital reserves. The move is aimed at financing expansion and growth initiatives, which have been on the company's radar for quite some time.
“Last month the board in-principle approved the fundraising to the extent of Rs 500 crore. So we are in touch with various financial consultants and we are working on the model which suits best for the fundraising. We would be raising to the tune of Rs 500 crore in one or more tranches in the near future,” Bhuwania said.
With a strong vision for the future, Texmaco Rail is looking to launch the QIP issue with an anticipated value of Rs 500 crore by the end of September. The company believes that raising funds through the QIP will be instrumental in bolstering its financial position and positioning it for further growth in the railway industry.
One of the significant aspects of Texmaco Rail's growth strategy involves ramping up its export operations. The company foresees a considerable increase in exports going forward, building on the success of the previous year's revenue, which amounted to a substantial Rs 200 crore. By capitalising on international opportunities, Texmaco Rail aims to expand its presence beyond the domestic market and strengthen its global footprint.
“There would be a certain ramp up in the exports. Last year we did around Rs 200 crore of exports. We expect a jump in the export numbers compared to the last year,” he said.
Moreover, Texmaco Rail is all set to execute the third tranche of the Indian Railways wagon order. As part of this order, the company anticipates receiving a staggering 10,000 wagons from the upcoming 40,000 wagon order.
“Texmaco generally has a market share of around 20-25 percent. So we expect that we would get our own share for this new tender too,” he said.
Speaking about the company's ambitions, Bhuwania expressed optimism about the success of the QIP issue and emphasised the urgency of executing the fundraising plan at the earliest. By doing so, Texmaco Rail will be better equipped to capitalise on growth opportunities and meet the increasing demands of the railway infrastructure sector.
For more details, watch the accompanying video
(Edited by : C H Unnikrishnan)
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