Don't want to miss the best from Business Standard?
Wagon and railway coach-maker Titagarh Wagons Ltd today said it has scrap plans to demerge its coach manufacturing business into a new company, following sluggish order flow for wagons from Railways.
"We have decided to scrap our plans to restructure business which included separating the coach division, with the idea behind it being to have separate coach and wagon manufacturing units," Titagath managing director Umesh Choudhary said here today on the sidelines of AGM.
He said the proposal was mooted to concentrate more on each of the current division businesses. In November, the board of Titagarh Wagons approved demerger of rail coaches division into an existing subsidiary of Titagarh Wagons Ltd.
The subsidiary was to allot 12 equity shares to the equity shareholders of Titagarh Wagons Ltd for every 100 shares held by them.
"The plan (of demerger) was taken up considering the Indian Railways' massive plan to procure wagons and coaches under the Vision 2020 document.
