GE in wagons

The jigsaws of India’s growth story are gradually taking shape. It’ll take long for them to mature and mesh into monumental frenetic activities that are unfolding over length and breadth of the country.

You’ll see I’m using so many superlatives to describe the activities that are propelling India on to higher orbit of growth. Hitherto all we’ve known as visible signs of economic progress are mainly those in the so-called IT sector.

And of late the stock markets are seen skyrocketing with each passing month. Today for example the total turnover of stocks (NSE, BSE and F&O taken together) has topped one lakh crore rupees, unimaginable even few months back.

But now over the next few years, India will see mammoth construction activity both in private and public arena. The Japanese PM, coming next month, is believed to be giving final nod to financial assistance for Indian Railways’ dedicated freight corridor project between New Delhi and Mumbai.

I mention this because it’s a big-ticket investment unheard of so far. And if freight corridors – the second one is planned between New Delhi and Kolkata – come to fruition, wagon manufacturing will not remain behind.

As if that is true, which indeed it is, General Electric (GE), the world’s 2nd largest company in terms of market cap, has bought 15% into JP Chowdhary controlled Titagarh Wagons located at the northern fringes of the city. GE’s investment is expected to bring not only state-of-the-class wagon manufacturing ability in course of time, it will also incorporate its forthcoming VeriWise RAIL asset management technology.

There are quite a few wagon-making units in the northern suburb of the city. Notable among them are Jessop (now the flagship company of Ruia Group) and Texmaco of Birlas.

There is no doubt India’s economic progress will see large volume of freight movements within the country as well as in and out of the country. GE’s entry into wagon manufacturing is a confirmation of that distinct possibility.