Engineering Major Wins USD 35.82 Million South African Locomotive Supply Mandate
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RITES Limited has secured a USD 35.82 million order from South Africa-based Volantis Asset Finance for supply and commissioning of 4000 HP Cape Gauge diesel electric locomotives over 20 months.
✨ Key Takeaways
RITES Limited has secured an international order worth USD 35,820,000 from Volantis Asset Finance (Pty) Ltd., South Africa, for the supply and commissioning of 4000 HP Cape Gauge Diesel Electric Locomotives.
The company said it has received acceptance of its offer for the contract, which will be executed over a period of 20 months. The formal contract agreement will be signed following due diligence at both ends. Upon completion of this process and signing, the order will be added to RITES’ Order Book.
The mandate covers the supply as well as commissioning of high-horsepower diesel electric locomotives designed for Cape Gauge operations. The contract is classified as an international order and has been awarded by an overseas entity.
RITES clarified that neither its promoter nor promoter group or group companies have any interest in the awarding entity. It also confirmed that the order does not fall within the ambit of related party transactions.
Valued at USD 35,820,000 (US Dollars Thirty-Five Million Eight Hundred and Twenty Thousand), the contract reflects the scale of the engineering and delivery scope involved, encompassing manufacture, supply and commissioning responsibilities. Execution is scheduled to span 20 months from commencement, as per the terms of acceptance.
The development expands RITES’ international business portfolio, reinforcing its presence in overseas locomotive supply and commissioning assignments. The addition to its order book, subject to completion of due diligence and formal agreement, represents a significant cross-border engagement in the Railway engineering segment.
The disclosure was made under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, and was communicated to the National Stock Exchange of India Limited and BSE Limited.
About the Company: RITES Limited is engaged in railway-related engineering and project assignments, including the supply and commissioning of locomotives and other rolling stock. The company undertakes domestic and international mandates across transport infrastructure and related sectors.