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New facility will supply stainless steel components to Integral Coach Factory, Chennai
February 18, 2019, New Delhi:February 18, 2019, New Delhi: Demonstrating its robust engagement with the Indian Railways, Jindal Stainless, through its subsidiary JSL Lifestyle Limited, commissioned its first dedicated facility for Railways in Chennai. Spread over two acres in the Industrial Estate, Maraimalai Nagar, this new railway facility will supply high quality stainless steel components with ‘just-in-time’ delivery to the Integral Coach Factory (ICF), Chennai for production of railway coaches. This facility is equipped with state-of-the-art robotic spot welding guns which function in the most precise and consistent manner. These automated guns complete the welding task faster, resulting in timely delivery of stainless steel components with minimum distortions. The proximity of this unit to ICF Chennai will ensure just-in-time deliveries for Indian Railways, and low inventory costs will help in improved cost efficiency. Earlier, these components were supplied to Indian Railways from the Jindal Stainless’ Pathredi unit in Haryana.
Inaugurating this facility in presence of senior railway officials, Managing Director, JSL Lifestyle Limited, Ms Deepika Jindal said, “Jindal Stainless’ relationship with the Indian Railways is almost two decades old. We have further strengthened it by setting-up our facility in Chennai, and expect to conquer several new milestones in this journey. Our association with Railways rests upon the strong foundation of high quality, and our products have always set the benchmark. Currently, we have begun our operations with around 4800 tonnes of fabrication annually and will ramp it up to 7200 tonnes in a couple of years.” This railway facility will produce railway coach sub-assemblies like side-wall, roof arch, trough floor and retention tanks for ICF, Chennai. These components will be used in LHB (Linke Hofmann Busch) model coaches and other variants.
The Company is expecting initial revenue of nearly Rs 100 crore annually from this facility. Revenue is expected to touch nearly Rs 300 crore annually once the enhanced capacity reaches 7200 tonnes. The operations of this railway facility will be managed by highly skilled workers with expertise in railway fabrication. In fact, Jindal Stainless was the major supplier of stainless steel for coach body of the Press Release recently launched Vande Bharat Express, India’s fastest train, which too was manufactured at ICF Chennai facility
Over the next 4-5 years, Railways plans to produce around 10,000 stainless steel coaches annually. A stainless steel coach not only enhances safety due to high impact resistance, but is also fire and corrosion resistant, thereby drastically reducing casualties in cases of accident/ collision. The stainless steel material produced by Jindal Stainless for railway coaches is already tested and approved by Research Designs & Standards Organisation (RDSO).