Mumbai: General Electric Co.'s Equipment Services and Commercial Finance units have bought 15 per cent equity in Titagarh Wagons Ltd., GE said in a statement. It did not disclose the value of the transaction.

Titagarh Wagons Limited is a private sector railway wagon manufacturer, incorporated in 1997-98. It is primarily engaged in the manufacture or railway wagons, Bailey Bridges, heavy earth moving and mining equipment, and steel and SG iron castings of moderate to complex configuration. Titagarh is also Industry Partner to the Defence Research and Development Establishment, Indian Ministry of Defence. The company clocked a turnover of Rs 320 crore for the year ended March 2007, and is likely to go public in less than a year.

The relationship is seen to be strategic to strengthen the company's presence in India's rail freight infrastructure sector. This is GE's first equity investment in India, and GE's Equipment Services entry into the country, where it intends to serve all aspects of the country's infrastructure for the movement of raw materials and finished goods with financing, operating and monitoring services.

Less than a week ago, Kolkata-based Titagarh Wagons Ltd (TWL), received private equity investment from ChrysCapital, after which ChrysCapital holds a little over 10 per cent stake in TWL. The investment is estimated to be in the region of $10-15 million.

However, this is not the first strategic investment in TWL, as another private equity firm and a hedge fund hold about 14 per cent stake in the company prior to ChrysCapital's and GE's buy in.

As part of the relationship, GE Equipment Services will have preferred access to Titagarh-manufactured rail wagons, which the company will lease to Indian Railways and private shippers in India as rolling stock. Equipment Services will also become the preferred provider of vendor financing for Titagarh.

The demand for railway wagons in extremely high in India, driven by accelerating economic growth and heightened volume of shipments of raw materials and manufactured goods throughout the country. Presently, the waiting time for a new rail wagon is approximately 18 months.

A press release on GE's website said Titagarh and GE will also explore a number of ways to improve rail transport, including incorporating GE's forthcoming VeriWise™ RAIL asset management technology in the manufacture of future wagons. VeriWise RAIL will enable railways and shippers to locate specific cars, monitor their condition and the condition of their freight, thereby helping to enhance the visibility, security and productivity of the rail system.

GE Equipment Services is a global provider of transport solutions for supply chains. It offers a full range of equipment financing and intelligence-based asset management, along with logistics services for manufacturers, retailers, shippers and freight transportation providers. GE Equipment Services enables the movement of raw materials and cargo focusing on safety and productivity.