Rites eyes ₹1,000 cr orders in Africa, foreign consulting
Railway engineering and consulting company Rites Ltd is close to signing international contracts to supply locomotives and wagons, even as it explores consulting services abroad, chairman and managing director Rahul Mithal said. The state-run company has emerged as the lowest-cost bidder for contracts worth Rs1,000 crore to supply locomotives and wagons to Zimbabwe and Mozambique, Mithal said in an interview.
Rites is also exploring consulting opportunities related to projects and rolling stock in India’s neighbouring countries such as Nepal, Bangladesh and Sri Lanka, as well as in Latin American countries, especially Chile, that share a broad-gauge railway system similar to India’s. The company’s revenue and profit fell in the first quarter as export orders fell and Indian Railways reduced rates on quality assurance and inspection services to a fifth, Mithal said.
“Now, Rites will aggressively focus on the export of rolling stock to raise its share in total revenue," Mithal said. Rites is hopeful of two orders bearing fruit soon—one from Zimbabwe’s National Railways to supply 3,000hp diesel and electric locomotives and high-sided open wagons, and the other from Mozambique, it has emerged as the L1 (lowest cost) bidder.
“Though it is premature till they fructify into final orders, but yes, these orders are worth over `500 crore each, and we hope that these orders start generating some revenue for us in the current fiscal itself and end the drought of export orders post-execution of pre-covid orders in Sri Lanka and Mozambique over the last two fiscals," Mithal said. Rites has also sent delegations to select Latin American countries with exports in mind.
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