NMP will lead to creation of capital resources that can be invested in developing railway infrastructure.

Vivek Lohia

Chairman, National Council for Railways, ASSOCHAM & Director, Jupiter Wagons Group & CEBBCO

How do you assess the opportunities for players like you considering the focus of the government on strengthening the rail (Railways/ metro/ Freight corridors, etc.) infrastructure? What is the kind of private investments that are likely to flow into the sector?

The most critical change we have seen in Indian Railways is their re-designed approach. In 2004, 99% of the manufactured wagons were bought by Indian Railways. Today, 65-70% manufactured wagons are bought by Indian Railways and the balance is bought by the private Industry players, like EFT operators, end-users such as Steel and Cement plants, and the auto-mobile industry.  This is evolving further as the railways are utilizing these schemes to encourage more private participation in the purchase of wagons and the railway industry may now use these resources towards building up the infrastructure. In the next 5 to 6 years we will see the railways buying less of freight. Moreover, we can expect increased private sector participation. As for the leasing companies, the EFP operators and the end users would generate their own demand for wagons.

Your take on the National Monetisation Pipeline announced by the government recently.

The Central Government's National Monetisation Pipeline (NMP) is a strategic move that will shore up India's overall development and bridge the infrastructure deficit. It will also lead to the creation of capital resources that can be invested in developing railway infrastructure. Furthermore, it will lead to an increase in the railway's potential to carry goods at a higher speed and a short turnaround time with enhanced efficiency. These factors will lower the high logistical costs and drastically reduce carbon foot print as well.

Your plans (increasing capacity/ capex) to meet the rising demand?

When we started in 2004, for the first two years our turnover was nearly about 50 to 60 crores and we supplied about close to 200 wagons to Indian Railways. Today, we are a 1000 crore company and are supplying close to 3000 freight cars to Indian Railways as well as the private players. JWL is growing and our target is to be a 1500 crore top line company by 2023. We are into various sectors and entering in the manufacturing of containers. We have a set-up with CEBBCO in Indore and we also want to invest in resources, good talent, and a remarkable design team. We want to stick to our philosophy as there are lot of avenues of growth within our business domain.

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