Sanjiv Keshri
CFO, Jupiter Wagons
How was the year 2024 for the company?
The fiscal year 2024 has proven to be quite fruitful for the company and sector marked by significant growth and strategic investments. The company successfully navigated industry challenges while leveraging opportunities to strengthen its market position. With increased demand in the railway and mobility sectors, the overall performance has exceeded expectations, with strategic acquisitions and expansions that have positioned the company for long-term success. The sector itself also experienced growth, with strong government support for infrastructure projects and a growing demand for green and efficient transportation solutions, all of which created a favourable environment for the company’s progress.
The company reported a consolidated revenue of Rs 2,022.3 crore for the first half of FY25, reflecting a robust 13.1% increase compared to the previous fiscal year. Profit after tax surged to Rs 175.6 crore, marking an 18.8% increase from Rs 147.8 crore, showcasing operational efficiency and sustained growth through varied operating environment. JWL committed to a Rs 2,500 crore investment for an advanced forging plant in Odisha, aimed at producing 100,000 forged wheelsets annually by 2027. JWL bolstered its manufacturing capabilities, reducing dependency on imported components and supporting the Make in India initiative. Jupiter Electric Mobility (JEM), a subsidiary of JWL, made a significant advancement by acquiring Log9’s railway battery and electric truck battery business assets. This acquisition included Log9’s engineering and production teams and its state-of-the-art manufacturing facility in Devanahalli, Bangalore, enhancing JEM’s position in the electric mobility sector. With these moves, JWL solidified its role as a key player in the industrial and transportation sectors, supporting sustainable growth and reducing carbon emissions aligned with global and national goals.
What are the key achievements this year? What factors helped you to meet your targets for this year?
With a clear vision, robust execution, and the unwavering trust of our stakeholders we have made significant strides in meeting our objectives, demonstrating substantial growth and solidifying our position in the Indian rail industry. The success of JWL in 2024 can be attributed to its proactive management approach and strategic decision-making. The leadership at JWL demonstrated exceptional foresight by identifying emerging opportunities and aligning the company's initiatives with market demands. The thriving infrastructure and transportation sectors, supported by robust public and private investments, provided a conducive environment for growth. Partnering with Kovis India and Tatravagonka brought world-class manufacturing practices to India, enabling us to localize critical components like brake discs and wheel sets. This empowered us to meet market demand efficiently.
The acquisition of Bonatrans India and its subsequent inauguration as Jupiter Tatravagonka Railwheel Factory and Stone India significantly boosted our capacity in wheel sets and braking systems manufacturing in-house which reduced costs, helping us reduce import dependency and strengthen our supply chain.
The launch of Jupiter Electric Mobility (JEM) with innovative eLCVs powered by Log9’s cutting-edge battery technology and entering the lithium-ion battery market, leveraging the increasing demand for energy-efficient and sustainable solutions within Indian Railways.
JWL’s focus on operational efficiency and capacity expansion proved instrumental in achieving its strategic goals. With these accomplishments, 2024 was a transformative year for Jupiter Wagons, setting new benchmarks in innovation, sustainability, and excellence while laying a strong foundation for continued success.
What are the prevailing challenges in the sector as we enter the new year?
As Indian Railways continues its journey of modernization and growth, several challenges persist that must be addressed to achieve its ambitious goals.
High logistic costs: Despite significant progress, India's logistic costs remain high at approximately 14% of GDP, compared to the global average of 8-10%. This inefficiency hampers the competitiveness of Indian industries and underscores the urgent need for streamlined operations and cost-effective solutions.
Infrastructure gaps: Expanding and upgrading the rail network to meet increasing freight and passenger demands remains a challenge. The need for constructing additional tracks on congested routes, eliminating level crossings, and enhancing average train speeds demands significant investment and efficient execution.
Delays in modernization: While steps toward digitalization, semi-high-speed trains, and sustainable materials have been initiated, the pace of modernization in adopting cutting-edge technologies like IoT, AI, and advanced signalling systems is slower than required to stay competitive globally.
Environmental concerns: Although Indian Railways is progressing towards Net Zero carbon emissions by 2030, achieving this target requires significant advancements in renewable energy integration, hydrogen fuel technology, and sustainable infrastructure development.
Freight modal share: Increasing the share of railways in freight movement from 27% to the target of 45% by 2030 involves overcoming stiff competition from road and air transport, coupled with improving end-to-end logistic solutions and multimodal connectivity.
Funding and PPP challenges: While public-private partnerships are key to accelerating infrastructure development, challenges like regulatory bottlenecks, ensuring transparency, and attracting private investment persist. A stable and supportive policy framework is essential to build confidence among private stakeholders.
Skill gaps in workforce: As technology adoption increases, the need for a skilled workforce becomes critical. Bridging skill gaps to handle modern equipment, digital systems, and sustainable practices remains a pressing issue.
Passenger comfort and connectivity: Although initiatives like the Vande Bharat Express have improved passenger experiences, last-mile connectivity, faster travel for regional routes within 100 km, and overall comfort need further enhancement to cater to the growing population and urbanization.
How are you planning your year ahead? What are your goals and way forward?
We are well-positioned to seize the opportunities of the coming year. Our vision is to remain a leader in the railway and freight industries, contributing to India's economic growth and infrastructure development.
Our primary focus will be on scaling production to meet the growing demand in the freight and railway sectors, particularly for BOXN wagons, wheel sets, and lithium-ion batteries. By ramping up manufacturing capabilities and achieving complete backward integration, we aim to enhance efficiency, reduce costs, and align with the government’s Make in India initiative. Additionally, we will concentrate on developing innovative solutions, including advanced wagon designs and energy-efficient technologies, to solidify our market leadership and meet the evolving needs of our customers.
Financially, we are targeting margin improvements through focus on increasing components manufacturing business, like wheelset, brake system etc; operational efficiency and a focus on high-value projects. By tapping into the anticipated surge in demand, we are confident in maintaining robust order books while delivering value to stakeholders. With a strong emphasis on sustainability, innovation, and customer-centricity, we aim to remain a key driver in India's railway and logistics ecosystem.
