This Railway Stock Is Gaining 10% On Deal For Metro Projects

Shares of Titagarh Rail Systems and ABB India were gaining on Tuesday after the tech firm signed a deal with the railway firm for metro projects.

What Happened: ABB and Titagarh Rail Systems entered a strategic partnership to supply propulsion systems for metro rolling stock projects in India. The partnership has already achieved early success by securing orders for the design and supply of equipment for metro coaches in Gujarat.

Titagarh specialises in the design, manufacture, supply, commissioning and servicing of passenger rolling stock and metro coaches for both Indian and international markets. ABB designs, manufactures and services propulsion systems and electrical equipment for rolling stock used in railways and metro systems.

See Also: Why This Tata Stock Jumped Back In The Green Today

Why It Matters: This collaboration aims to leverage the strengths and synergies of both companies to establish a significant presence in the Indian market and extend their reach to other projects and countries. The partnership involves Titagarh purchasing ABB propulsion systems, including traction converters, auxiliary converters, traction motors and train control management system software (TCMS).

Additionally, Titagarh will secure manufacturing rights and production licenses for traction motors, along with the complete transfer of technology for the driverless metro TCMS software from ABB.

Edgar Keller, president of traction business at ABB, expressed the company’s commitment to entering and expanding its footprint in the Indian market through this strategic partnership. The collaboration supports efforts to make rail transportation in India more sustainable by employing energy-efficient technology fully produced within the country.

Price Action: Titagarh Rail Systems’ share price was up 9.82% at ₹1,027.85 at the start of trade on Tuesday. ABB India’s share price was up 1.48% at ₹4,411.25.

Read Next: Jio Financial Could Raise Up To ₹10,000 Cr In Debt Before New Year: Report

Don't miss a beat on the share market. Get real-time updates on top stock movers and trading ideas on Benzinga India Telegram channel.

Posted In: NewsContractsMoversTrading IdeasABB IndiaTitagarh Rail Systems