RVNL has announced a partnership with Dhaya Maju Infrastructure (Asia) Sdn Berhad (DMIA) to expand into the ASEAN market and establish a manufacturing base in Malaysia.

What Happened: The announcement was made on Wednesday, by RVNL. The memorandum of understanding (MoU) signed by the two companies outlines their collaboration to jointly participate in railway infrastructure and services projects in the ASEAN (Association of Southeast Asian Nations) market and other agreed markets, with a special focus on Malaysia.

“The primary objective of this MOU is to outline the terms and conditions under which RVNL and DMIA may collaborate to work jointly to participate into the Railway Infrastructure and services projects in the ASEAN market and other markets as agreed, with special focus on establishing a manufacturing base in Malaysia for railway coaches and other railway products for catering to the growing need of ASEAN countries,” the company said in an exchange filing.

See Also: BEML Signs Agreement With Indian Navy To Boost Indigenous Marine Engineering, Shares Jump

The partnership aims to cater to the growing needs of the ASEAN countries by establishing a manufacturing base for railway coaches and other railway products in Malaysia.

This partnership comes at a crucial time for RVNL, which has been under pressure at the bourses. Earlier this month, RVNL’s Q1 net profit sank 34% to ₹224 Cr, missing estimates. This was primarily due to weak execution linked to central elections and geopolitical turmoil.

Price Action: RVNL’s share price was up 0.39% to close at ₹563.90 on Wednesday.

Read Next: ONGC Approves Additional Investment In OPaL, Stake In Company To Rise To 92%