According to a senior company official, JWL would reopen Stone India following a modernization procedure at a capex of Rs 25–30 crore. The maker of wagons and components would also increase the capacity of two of its current factories in India by at least 30per cent. Through a qualified institutional placement (QIP), JWL successfully raised Rs 125 crore on Monday. The funds will be used to finance the purchase of Stone India as well as the modernization and expansion of wagon production capacity.
“Within the next six months, we intend to reopen Stone India. To make the facility a more cost-effective manufacturer of electric pantographs and railway goods car braking systems, we would invest between Rs 25 and Rs 30 crore in modernising it. 100 workers would be employed by this rebuilt plant, JWL Managing Director Vivek Lohia informed reporters.
The company was developing brakes and engineering systems for railroads when the plant was closed for the last 5–6 years.
According to Lohia, Stone India will expand its selection of engineering items for the railways to include electric pantographs and braking systems for freight wagons. He said that the company would increase its yearly wagon production capacity to 700 units from its current 500–550 units in order to prepare for the government’s expected placement of another significant order for wagons in the next three to four months. In December of this year, Jupiter Wagons, which recently entered the electric truck market, is anticipated to release its first light commercial vehicle (LCV) with a one-ton capacity.