Texmaco Rail signs MoU with German company for potential joint venture
This story was originally published at 21:52 IST on 27 August 2026
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NEW DELHI – Texmaco Rail & Engineering Ltd. said Thursday it has signed a memorandum of understanding with a German company, Bochumer Verein Verkehrstechnik GmbH, to set broad terms for a potential collaboration in railway wheels, wheel sets, axles, and related rail vehicle components.
The memorandum of understanding will include evaluation of opportunities and technical qualification, certification, and localisation requirements prescribed by Indian Railways. The company will look to supply these products to the global railway industry, including Indian Railways, it said in an exchange filing.
Both companies will set up a provision of associated technical services and solutions through a proposed joint venture or special purpose vehicle in India. The pact will also see the possibility of a supply arrangement where Bochumer Verein Verkehrstechnik will supply products to Texmaco Rail.
The company did not disclose any commercial consideration for the memorandum of understanding. The shareholding distribution in the proposed joint venture entity between Texmaco Rail and Bochumer Verein Verkehrstechnik remains subject to negotiation and shall be agreed upon and documented in the joint venture agreement, it said. Texmaco Rail currently does not have any shareholding in Bochumer Verein Verkehrstechnik.
According to the terms mentioned by the company in the exchange filing, Bochumer Verein Verkehrstechnik is expected to provide or license relevant technology, technical know-how, manufacturing processes, engineering expertise, and technical support to Texmaco Rail. The Indian company is expected to support localisation, industrialisation, manufacturing, assembly, testing, quality assurance, marketing, supply, and after-sales support in the country.
The memorandum of understanding is effective for 12 months from execution unless terminated earlier in accordance with its terms. Until then, both companies are bound by exclusivity provisions.
Texmaco Rail had reported a net profit of INR 517.06 million on revenues of INR 7.53 billion for the June quarter. Shares of the company ended Thursday at INR 108.43 apiece on the National Stock Exchange, down 0.6% from Wednesday. End
Reported by Pratyush Kumar
Edited by Rajeev Pai
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