Texmaco Rail & Engineering to Acquire Jindal Rail & Infrastructure for ₹615 Crore

Texmaco Rail & Engineering Limited has announced that it has entered into definitive agreements with JRIL, JITF Urban Infrastructure Services Limited, and Siddeshwari Tradex Private Limited, to acquire 100% of Jindal Rail & Infrastructure Limited (JRIL).

The acquisition, valued at ₹615 crore in cash, is subject to closing adjustments as outlined in the agreements. JRIL’s Enterprise Value stands at ₹687 crore, with the transaction representing an FY 2024 EV/EBITDA multiple of 8.1x. Although the agreements are finalized, the transaction is contingent upon certain conditions precedent, expected to be completed within 45 days.

JRIL, a G-105-certified entity, specialises in commodity-specific special-purpose wagons for the private sector and can supply Indian Railways. Texmaco’s technical expertise is anticipated to enhance JRIL’s wagon production with minimal capital expenditure. JRIL’s 60+ acres of surplus land provide opportunities for rapid expansion and flexible manufacturing for passenger and freight wagons, as well as components.

Texmaco’s foundry expertise is expected to drive vertical integration at JRIL. The acquisition will unlock significant cost savings through bulk material purchases for both Texmaco and JRIL. Enhanced EBITDA margins on a consolidated basis are anticipated due to increased private sector freight car orders.

The acquisition strengthens Texmaco’s presence in Western India, supporting national expansion. This acquisition marks a key milestone in Texmaco’s strategic expansion, enhancing its capabilities and market presence in the railway manufacturing sector, and positioning the company for sustained growth and innovation.

Commenting on this acquisition, the Chairman of Texmaco, Mr Saroj Kumar Poddar, said, “The Adventz Group has always been committed to participating in India’s development. The JRIL

acquisition will exponentially boost our participation in domestic and foreign markets, catalysing the nation’s economic growth.”

“We are ever focused on forming strategic alliances to boost growth and enhance synergies across the industry, and this low-risk acquisition is in line with our overarching vision,” said Mr Indrajit Mookerjee, Vice Chairman of Texmaco.

“This acquisition puts Texmaco Rail to have a significant lead in the Freight Rolling stock market within the country and in the international Rail Freight Industry map in a shorter term. This also throws open tremendous opportunities to expand more on the whole Railway Rolling Stock and Component Value Chain with a foray into newer product lines. We believe Texmaco Rail, with its expansion in western India, will be more emphatically contributing towards the Government’s Plan of Atmanirbhar Bharat and Vikshit Bharat,” said Mr Sudipta Mukherjee, Managing Director of Texmaco.

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