Home / Business and Economy / JSW Infra Leaps into Railways with Rs 1,212 Cr Deal
JSW Infra Leaps into Railways with Rs 1,212 Cr Deal
8 Dec
Summary
- JSW Infrastructure acquired three rail logistics companies for Rs 1,212 crore.
- The deal grants access to Indian Railways' GPWIS and LSFTO schemes.
- JSW aims to expand its rake fleet to 110 by FY30.
JSW Infrastructure has made a substantial entry into the railway rake business through a Rs 1,212 crore acquisition of three JSW-owned rail logistics firms. This strategic expansion, executed via its subsidiary JSW Port Logistics, secures full ownership of JSW Rail Infra Logistics, JSW Minerals Rail Logistics, and JSW (South) Rail Logistics. The transaction is designed to be earnings per share accretive from the outset.
The acquisition provides JSW Infrastructure with immediate access to key Indian Railways initiatives, namely the General Purpose Wagon Investment Scheme (GPWIS) and the Liberalized Special Freight Train Operator (LSFTO) scheme. The company has already secured a fleet of 21 operational rakes, with four more expected, all possessing long-term licenses under these railway programs. This move builds upon JSW's prior acquisition of Navkar Corp in October 2024, which bolstered its last-mile logistics capabilities.
JSW Infrastructure anticipates the newly acquired businesses will achieve an annualized EBITDA of Rs 150 crore by FY27, with plans to grow its rake fleet from 25 to 45 by FY27, and further to 110 by FY30. The rail operator business is attractive due to its dual-revenue model, which includes rebates from Indian Railways and market premiums from customers, promising stable, annuity-like earnings.
