RITES makes a strategic foray into the Middle East with the Etihad Rail order and eyes IMEC-led global expansion.
Engineering consultancy major RITES has set its sights firmly on the Middle East, marking a significant strategic shift in its global operations. The move was confirmed by CMD Rahul Mithal, who revealed the company’s growing engagements in the region—including partnerships with DP World, AD Ports Group, and a maiden consultancy order from Etihad Rail in Jordan.
Having long represented India’s rail engineering prowess across Africa, Southeast Asia, and more recently Latin America, this foray into the Gulf marks a bold new chapter for the PSU under the Ministry of Railways.
“We made a strategic pivot last year,” said Mithal. “Our MoUs with DP World, Etihad Rail, and AD Ports are not just business deals—they are the building blocks of the India-Middle East-Europe Economic Corridor (IMEC).”
The IMEC, first unveiled during India’s G20 Presidency in 2023, envisions a multi-modal connectivity corridor linking India to Europe via the Gulf. It includes shipping lanes, railway lines, and a digital layer currently being laid as a virtual trade corridor.
RITES has already taken its first tangible step with a consultancy assignment from Etihad Rail in Jordan, focused on rail infrastructure and maintenance. This small but strategic order places RITES directly in the path of the Gulf’s expanding railway ambitions, particularly the UAE-Saudi-Jordan-Israel rail link, which could eventually connect to India via Haifa Port, operated by India’s Adani Group.
But the vision goes beyond steel tracks. Mithal revealed that RITES is now involved in shaping the virtual leg of IMEC. “We’ve started work on the India-UAE virtual corridor. This is being done in collaboration with the Ministry of Shipping, through a digital platform called MAITRI (Master Application for International Trade & Regulatory Interface), which will ease transactions for exporters, importers, and logistics players,” he explained.
As the physical infrastructure of IMEC develops, this virtual corridor is expected to become a key enabler of streamlined trade movement between the regions.
Strong year, Stronger outlook
While the strategic Middle East entry is grabbing headlines, Mithal also shared an upbeat financial story. RITES closed FY25 (Apr-Mar) with its highest-ever order book of ₹8,877 crore, driven by wins across all business verticals. The company maintained a remarkable strike rate—averaging one order every calendar day during the year.
Export orders remain robust too, with ₹1,360 crore worth of contracts, including a ₹900 crore deal for 200 railway coaches for Bangladesh and another ₹300 crore order for 10 locomotives from Mozambique.
For FY26, RITES is aiming high:
- Top-line growth target of 20% year-on-year
- Operating margin estimated at 20%
- Profit after tax margin projected between 15–16%
The company ended FY25 with a consolidated revenue of ₹2,324 crore and a profit after tax of ₹424 crore.
What lies ahead?
From executing large-scale exports to entering one of the world’s most strategic trade corridors, RITES appears to be positioning itself not just as an engineering consultant—but as a key driver in India’s global infrastructure diplomacy.
As Mithal put it, “Our partnerships in the Middle East are setting the stage for long-term global expansion. We see immense potential in collaborating with major players in ports, logistics, and multimodal transport as we expand India’s economic and digital footprints across continents.”
With the IMEC corridor gaining momentum, and the Middle East opening new doors, RITES’ journey seems to be entering its most dynamic phase yet.
Source: Indiaseatrade news
