Kolkata-based Titagarh Rail Systems Limited (TRSL) and Delhi-NCR's Amber Group have announced a pioneering joint venture to enter the railway component and subsystem business.

The collaboration will be realized through a special purpose vehicle (SPV), with both companies committing an investment of up to Rs 120 crore each, providing equal control over the SPV.

As part of the agreement, TRSL and Amber Group's subsidiary, Sidwal Refrigeration Industries Pvt Limited, will not only establish a new railway component business in India but also make fresh equity investments in Firema, Italy.

The SPV, with a focus on manufacturing critical railway components and subsystems for Railway and Metro coaches, will also witness fresh equity investments from the Government of Italy's investment arm, Invitalia.

Underlining the significance of the collaboration, Firema has granted preferred supplier status and Right of First Refusal (ROFR) for all their products to Sidwal, TRSL, and the joint venture SPV. This move sets the stage for the establishment of a new facility in India, contributing to the production of essential components and subsystems.