With its first equity investment in India, GE's transport solutions provider takes its first step to serve India's infrastructure needs
NEW DELHI, India & STAMFORD, Conn.--(BUSINESS WIRE)--GE Equipment Services, a global provider of financing, maintenance and asset intelligence services for transportation assets, and Titagarh Wagons Limited, a leading railway wagon manufacturer in India, today announced that they have formed a strategic relationship to advance the country's rail infrastructure.
The relationship marks the entrance of Equipment Services into India, where it intends to serve all aspects of the country's infrastructure for the movement of raw materials and finished goods with financing, operating and monitoring services.
In establishing the relationship, Equipment Services and GE Commercial Finance made an investment in Titagarh, receiving 15% of its equity. This is Equipment Services' first equity investment in Indian transport. As a result, Equipment Services will have preferred access to Titagarh-manufactured wagons, as railcars are known in India, which it will lease to Indian Railways and private shippers in India. Equipment Services will also become the preferred provider of vendor financing for Titagarh.
Railway wagons are in extremely high demand in India as its economic growth accelerates and the volume of shipments of raw materials and manufactured goods throughout the country dramatically increases. The current wait time for a new wagon is approximately 18 months. With GE's investment, Titagarh plans to step up the pace of manufacturing and make more wagons available, more quickly.
Titagarh and GE will also explore a variety of ways to improve rail transport, including incorporating GE's forthcoming VeriWise™ RAIL asset management technology in the manufacture of future wagons. VeriWise RAIL will enable railways and shippers to locate specific cars and monitor their condition and the condition of their freight, thereby helping to enhance the visibility, security and productivity of the rail system.
"We are delighted to join forces with Titagarh and help increase the capacity and productivity of India's rail infrastructure," said Dhananjay (Dan) Nalawade, Equipment Services President for India. "Equipment Services is the owner and lessor of more than 200,000 rail wagons and intermodal assets in North America and Europe, and our domain expertise in rail and other forms of transport allows us to bring a wide range of best practices from our various global platforms to India, including new financing structures, new wagon designs, new forms of fleet management, and other new services. Providing wagon solutions with Titagarh will be our first step toward improving the supply chain infrastructure in India."
Commenting on the development, J.P. Chowdhary, Chairman of Titagarh Wagons Ltd., said, "We feel honored that GE chose to partner with us in India and are confident that it would be a win-win relationship for both of us."
"We welcome GE's participation in our growth," said Umesh Chowdhary, Managing Director of Titagarh Wagons Limited. "GE's 30 years in India and Equipment Services' extensive experience with transportation will help Titagarh achieve its goal to become a world-class service provider for the Indian infrastructure sector and a dependable and preferred partner for growth in line with a national perspective plan."
"Equipment Services' agreement with Titagarh is just one of the many ways that GE and its businesses can contribute to the growth of India," said Tejpreet Singh Chopra, President and CEO of GE India. "GE's businesses offer advanced technology and expertise for energy, water, transportation, security, healthcare and financial infrastructure. We look forward to participating with Indian businesses in the country's great future."
"The world spends more than $4 trillion each year moving raw materials and finished goods through the global economy, and we see ways to make this process safer, more secure and more efficient," said Equipment Services President and CEO Deborah M. Reif. "Our experience as the owner, lessor and operator of one of the world's largest and most varied fleets of transportation assets is enabling us to identify solutions that apply across modes of transport and across borders of all kinds. We are excited to begin bringing these comprehensive solutions to India."
About Titagarh Wagons Ltd.
Titagarh Wagons Limited is one of the leading private sector railway wagon manufacturers in India. Titagarh, incorporated in 1997-98, is primarily engaged in the manufacture or railway wagons, Bailey Bridges, heavy earth moving and mining equipment, and steel and SG iron castings of moderate to complex configuration. Titagarh is also "Industry Partner" to the Defence Research and Development Establishment, Indian Ministry of Defence.
About GE Equipment Services
Equipment Services (www.ge.com/transport) is a global provider of transport solutions for the world's supply chains. Offering a full range of equipment financing and intelligence-based asset management and logistics services for manufacturers, retailers, shippers and freight transportation providers, Equipment Services enables the movement of raw materials and cargo for the global economy more safely, securely and productively.
About GE Commercial Finance:
GE Commercial Finance (www.gecommercialfinance.com) offers businesses around the globe an extensive array of financial products and services. With more than US$246 billion in assets and expertise in the middle-market, GE Commercial Finance provides loans, operating leases, financing programs and innovative structured capital to help customers grow. Headquartered in Norwalk, Connecticut, GE Commercial Finance is a wholly owned subsidiary of the General Electric Company.
About GE
GE (NYSE: GE) is Imagination at Work -- a diversified technology, media and financial services company focused on solving some of the world's toughest problems. With products and services ranging from aircraft engines, power generation, water processing and security technology to medical imaging, business and consumer financing, media content and advanced materials, GE serves customers in more than 100 countries and employs more than 300,000 people worldwide. For more information, visit the company's Web site at www.ge.com.
Contacts Titagarh Wagons Limited
Anil Kumar Agarwa, Chief Finance Officer
+91 033- 2283 4467
or
GE
New Delhi, India:
Purnima SahniMohanty, GE India
+91 9810529368
[email protected]
or
Stamford, CT USA
David Frail, Equipment Services
+ 1 203/961.2281
[email protected]
Britta Kons
GE Healthcare Global Services
[email protected]
1-203-400-1892