Wabtec looks to increase India’s exports 10x: Global transit president

Wabtec Corporation, United States-based rolling stock manufacturer and one of the biggest foreign direct investors in the railways, will look to continue investing in India close to 4 per cent of its global revenues and make the country a manufacturing hub for exports, global president (transit business) Pascal Schweitzer told Business Standard in an interview.

Schweitzer, who was in India to inaugurate Wabtec’s manufacturing facility in Rohtak, Haryana, said it would continue to work on its export hub plan for India, and the firm’s exports will increase tenfold in the next three years to $30 million.

“Barring years where we’ve had fluctuations, we have been investing 4 per cent of our global revenues for capital expenditure in India. We are always managing scenarios, so we keep re-adjusting based on that, but barring any major changes, it is a reasonable assumption that we will continue with this trajectory,” Schweitzer said.

In 2023, Wabtec’s sales were $9.68 billion and cash from operations was $1.20 billion.

The company is open to new opportunities to expand its footprint through mergers and acquisitions, the president said.

The company in January won a large brake system order from the mobility business of Siemens India for the 9000HP (horse power) locomotive project for Indian Railways. The $157 million (Rs 1,300 crore) order will provide improved operating performance, efficiency, and safety with the latest technology for the new line of 1,200 electric locomotives, the company had said.

Globally, the rail industry presents significant opportunities due to a concerted effort on de-carbonisation, but it still has challenges, according to Schweitzer.

“There are challenges on regulations and processes. Sometimes, these changes of processes from one country to the next slow the progress of the industry, resulting in delayed projects. So there are opportunities to do better if the industry can co-operate more effectively,” Schweitzer said.

Schweitzer said global supply chains had improved despite the Red Sea crisis, as compared to what they were when Covid-19 was at its peak and the company’s export plans priced in supply-chain disruptions. 

In 2023, he told Business Standard Covid-19 had caused obsolescence in technology due to rapid disruptions in global supply chains. 

This year, he says, the company’s current plans for exports in India have taken into account the volatility of supply-chain factors.

On a question on new products for the Indian market, Schweitzer said it was continuing to innovate in various technologies, which it would announce soon.

Schweitzer said Wabtec would primarily look through a filter of technological capabilities, profitability, and their ability to deliver products that augur well for customer relations.

“Otherwise the business wouldn’t be sustainable.”

First Published: May 21 2024 | 9:33 PM IST