Expect 19-21% ROCEs on a consolidated basis in next 3 years: Jasbir Singh, Amber Enterprises

economictimes.indiatimes.com:

Jasbir Singh, Chairman & CEO, Amber Enterprises, says “looking into the announcements by the Railway and the Urban Development ministries for metro coaches, we expect the total addressable market to go to almost about Rs 75,000-80,000 crore for the order book which is coming in next five to six years. 3,000 new Vande Bharat Expresses are going to be launched and one Vande Bharat Express has 16 coaches and we want to address almost about Rs 2-2.5 crore per coach as a bill of material solution provider, giving solution not only for air conditioners, but for other equipment which rolling stock manufacturer buys from outside, like doors and gangways, pantry systems, gears, couplers, interiors, toilets and seats, etc. ”

Want to take exposure to a sector which grows much faster than GDP

You have been talking about how you are looking at expanding into other categories and beyond the room ACs and it seems to be happening. What kind of potential do you see in the entire railway segment because there is a complete overhaul which is happening on the railway coaches back home? How big an opportunity could it be for you?
Jasbir Singh: We are very excited for this new announcement with Titagarh. We see it as a win-win situation. It has got three components to it. First of all, since Sidwal, our railway mobility application business, we are delivering solutions in space of air conditioners, doors, gangways and pantry systems. So, we will be creating another SPV with Titagarh where we are going to bring interiors and other components which for us will increase a very big time.

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