Rail revival lures JP Morgan to track engg firm
By Anto T Joseph, TNN |
Highlights
MUMBAI: WITH Lalu’s magic wand turning around the railways, the gains are indeed trickling down to an array of suppliers and partners. Private equity players are now hovering around some of the leading players, while JP Morgan One Equity has made the first move. The PE fund from New York is buying 26% stake in Hyderabad-based Patil Infrastructure Holding for around Rs 250 crore. The Hyderabad-based company, focusing on railway track engineering, has been valued at around Rs 1,000 crore. Sources said the announcement is expected within two weeks. Even after repeated efforts, LS Patil, managing director of the Patil group of industries, refused to come on quote.
The proposed freight corridors, metro rail projects, replacement of existing tracks and port connectivity work are the major drivers of growth in the sector. Sources said the railways have turned hugely profitable during the past couple of years, and the government spending on track extension and new tracks has gone up substantially. The Patil group of industries has many companies under its fold, specialising in various products and services. For instance, Patil Vossloh Rail IT Systems, one of its joint venture companies with the German giant Vossloh IT, focuses on all IT-related systems used by the railways. The Euro 1-billion Vossloh is a transnational corporation whose operations are concentrated in Europe, and has domain expertise in rail technology, specifically rail infrastructure and components for rail vehicles.
The group has its activities spread in manufacturing of concrete sleepers, rail fittings for normal lines, elevated and underground track for metro rail, switches and crossings, ballastless track suitable for high-speed lines, bridges, tunnels and aprons.
anto.joseph@timesgroup.com
The proposed freight corridors, metro rail projects, replacement of existing tracks and port connectivity work are the major drivers of growth in the sector. Sources said the railways have turned hugely profitable during the past couple of years, and the government spending on track extension and new tracks has gone up substantially. The Patil group of industries has many companies under its fold, specialising in various products and services. For instance, Patil Vossloh Rail IT Systems, one of its joint venture companies with the German giant Vossloh IT, focuses on all IT-related systems used by the railways. The Euro 1-billion Vossloh is a transnational corporation whose operations are concentrated in Europe, and has domain expertise in rail technology, specifically rail infrastructure and components for rail vehicles.
The group has its activities spread in manufacturing of concrete sleepers, rail fittings for normal lines, elevated and underground track for metro rail, switches and crossings, ballastless track suitable for high-speed lines, bridges, tunnels and aprons.
anto.joseph@timesgroup.com
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