Kolkata-based Jupiter Wagons, part of the Lohia Group, is set to invest ₹2,000 to ₹2,500 crore in a new forging plant for wheels and axles in Odisha, significantly boosting its export potential. The investment, which will be funded through a combination of internal resources and borrowings, is expected to expand the company’s production capacity from 20,000 to 100,000 forged wheelsets annually.
Vikash Lohia, Director of Jupiter Wagons, stated that the company’s capital expenditure will increase its production capacity to 100,000 forged wheelsets annually, up from the current 20,000 forged wheels and axles. The company is also exploring various funding options, including project-specific partnerships. In the first half of FY25, Jupiter Wagons raised ₹800 crore through a Qualified Institutional Placement (QIP) and preferential allotment of share warrants, which will primarily fund the construction of a full wheel and axle-manufacturing facility and enhance its supply chain capabilities.
Tatravagonka, a Slovakian train manufacturer with a 19.72% stake in Jupiter Wagons, is expected to be a key customer, with an annual requirement of around 60,000 wheelsets. Once the Odisha plant is operational in FY27, Jupiter’s total capacity will approach 100,000 units. The investment in this facility is being made through its subsidiary, Jupiter Tatravagonka Railwheel Factory Pvt Ltd.
The company will ramp up forged wheelset production at the new plant through a combination of internal funds and borrowings, with an investment of approximately ₹2,000 crore. Additionally, ₹200-300 crore will be allocated annually to enhance existing manufacturing facilities. The total capital expenditure for FY25, across all business areas, is projected at ₹500 crore. Jupiter Wagons operates facilities in West Bengal, Madhya Pradesh, Jamshedpur, Maharashtra, and Odisha.
The full impact of the increased capacity will be realized in FY26. By FY27, the company anticipates its forged wheel and axle lines will begin production, with expected revenue growth from both domestic operations and exports, particularly to Europe. Jupiter Wagons aims for non-wagon revenues to contribute up to 50% of total revenue by the end of FY27. The company’s current exports include brake equipment to Europe and containers to North America.
For the first half of FY25, Jupiter Wagons reported consolidated revenue of ₹1,888.90 crore, marking a 15.7% year-on-year increase. The company’s profit after tax (PAT) stood at ₹181.25 crore, up 25% year-on-year, with a profit margin of 9.5%.
