Jupiter Wagons expects to garner 30 per cent of the 40,000 annual wagon requirement of the Indian Railways for the next 4-5 years, its Chief Financial Officer (CFO) Sanjiv Keshri said.
“Currently, there are approximately 300,000 wagons in service. By 2028, the government projects the fleet will need to expand to 6,00,000 wagons. This translates to a requirement for 2,00,000 to 3,00,000 new wagons. But on a very conservative side, we are confident that the annual requirement of around 40,000 wagons over the next few years will provide ample opportunity for growth,” he said.
Addressing competition in the Indian Railways sector, Keshri said, “In the Indian Railways market, competition is influenced by pricing and tenders. Among the major players—Jupiter Wagons, Titagarh, and Texmaco—we collectively share about 70-75 per cent of the market. We aim to capture between 25 per cent and 30 per cent of the demand.”
Keshri also praised the government’s proactive approach in funding and infrastructure development. “The way the government is allocating funds towards capital expenditure is promising. It’s a strong indicator that the next few years will be very favorable for the wagon business,” he remarked.
Short-term and Long-term Growth Targets
Jupiter Wagons is focused on substantial growth in both the short and long term. “Our immediate goal is to increase our turnover to approximately Rs 4,500 crores this fiscal year, up from Rs 3,600 crores last year,” Keshri said. This ambitious target aligns with the company’s plan to ramp up production to around 10,000 units this year, aiming to achieve a monthly production rate of 1,000 wagons.
A crucial aspect of Jupiter Wagons’ strategy is to diversify its revenue streams. “Currently, around 75-80 per cent of our revenue comes from wagon manufacturing. We are focusing on reducing this dependency to 50 per cent and increasing revenue from our component business to match this target,” he sid
Jupiter Wagons has set a clear vision for 2028. “By 2028, we aim to achieve a revenue of Rs 10,000 to Rs 11,000 crore, with a 50-50 split between wagon manufacturing and other businesses, particularly components,” Keshri said.
Investment Plans and Funding
To support its growth strategy, Jupiter Wagons is planning significant investments. “One of our major focuses is the wheel business. We plan to invest between Rs 1,400 to Rs 1,600 crore in Bonatrans to achieve backward integration,” Keshri said. The funding for this investment will come from multiple sources: Rs 1,000 crore from internal funds, Rs 800 crore through a Qualified Institutional Placement (QIP), and Rs 400 to Rs 600 crore from debt.
This investment is expected to yield substantial returns, with the company projecting the manufacture of 100,000 wheel sets annually, generating around Rs 4,000 crore in revenue from this segment.
Export and International Expansion
Jupiter Wagons is also focusing on expanding its international footprint. “In the next 2-3 years, we aim to achieve exports worth Rs 2,000 to Rs 2,500 crores from our brake and wheel businesses,” Keshri said. Although exports were minimal in 2024, with approximately Rs 10 crore from the brake business, the company is actively working to increase its global presence.
Government and Policy Impact
Government policies play a critical role in shaping the industry’s future. Keshri emphasised the importance of continued investment in railway infrastructure. “The government’s focus on creating dedicated freight corridors and investing in railway infrastructure is essential for our industry,” he said.
The recent budget’s focus on skill development and support for Micro, Small, and Medium Enterprises (MSMEs) is also seen as advantageous. “The government’s support for MSMEs and skill development is crucial for our sector, especially in the component manufacturing domain,” Keshri added.
The Evolving Role of the CFO
As CFO, Keshri’s role is evolving in response to the company’s growth and the broader industry context. “My role increasingly involves managing capital expenditure, ensuring compliance, and supporting digital transformation,” he explained. “We face challenges such as rising compliance costs and the need to mitigate risks associated with geographical expansion.”
Keshri highlighted the need for a strategic approach in balancing financial management with forward-looking growth strategies. “We must ensure that our investments are sustainable and that we are well-prepared for the complexities of expanding into new markets,” he said.
