Which Companies Make Vande Bharat Sleeper Trains in India?

The Vande Bharat trains have been a sensation since their debut, capturing the nation's attention with its sleek design and impressive speed.

This semi-high-speed train embodies India's growing prowess in rail technology and manufacturing.

Building on this success, Indian Railways has unveiled an ambitious modernisation plan, committing a substantial Rs 10-12 trillion (tn) over the next five years to transform the railway landscape.

A key component of this plan is the introduction of 300-400 Vande Bharat trains in various configurations, including the highly anticipated sleeper variant.

Set to redefine luxury train travel, the Vande Bharat sleeper promises to surpass the comfort and speed of the iconic Rajdhani Express. With trial runs expected to be scheduled before 15 August 2024, the railway sector is abuzz with excitement.

As Indian Railways gears up to manufacture this revolutionary train, several domestic companies are likely to play a crucial role.

Let's now explore the potential contenders for this exciting venture.

#1 BEML

Leading the list is BEML.

BEML has been a significant contributor to the Indian railway sector for decades. As one of the pioneers in rail coach manufacturing, it has played a crucial role in modernising India's railway network.

BEML was the first company in India to manufacture all-steel integral passenger rail coaches. The company has produced and supplied over 18,000 mainline passenger coaches of various types for the Indian Railways.

On 23 May 2023, BEML was awarded a contract worth Rs 6.8 billion (bn) from Indian Railways' Integral Coach Factory (ICF) to produce India's first 10 Vande Bharat sleeper trainsets.

Initially, the plan was for the Vande Bharat sleeper to hit the rails in March, before the general elections, but it was delayed due to technical reasons.

Recently, Railways Minister Ashwani Vaishnaw announced that the trials will now happen by mid-August.

As the Indian Railways looks to complete trials of the first Vande Bharat sleeper rakes by August, Bangalore-based manufacturer BEML is on track to deliver all 10 trainsets by the end of the year.

The sleeper version of Vande Bharat will have all AC coaches like the Rajdhani Express and will be equipped with modern infrastructure.

The Vande Bharat Sleeper trains designed by BEML will prioritise aesthetic appeal and functionality in their interiors, sleeper berths, and exteriors.

With a pipeline of 400 Vande Bharat train tenders to be awarded over the next 3-4 years, the company believes that the successful execution of this order can put BEML in a strong position to win new contracts.

For more details, see the BEML company fact sheet and quarterly results.

#2 BHEL

Next on the list is Bharat Heavy Electricals Limited.

Bharat Heavy Electricals Limited (BHEL) is a significant player in the Indian railway sector, though its primary focus has traditionally been on power generation equipment. However, it has been increasingly expanding its footprint in the rail industry.

BHEL has been a major supplier of electric locomotives to Indian Railways. These locomotives are essential for hauling freight and passenger trains.

BHEL, along with its consortium partner Titagarh Rail Systems Ltd (TRSL), has been entrusted by Indian Railways to build 80 sets of Vande Bharat sleeper trains by 2029. The estimated value of the contract is Rs 240 bn.

This is the first time Indian Railways has awarded a contract of this value to an Indian consortium for the design and manufacturing of a complete train set.

The commercial production of these trains will begin at TRSL's Uttarpara plant in June 2025.

At least 50-55% of the train components will be produced in Bengal by the consortium, in which city-based TRSL holds a 52% stake. BHEL will be responsible for supplying key electrical components and other parts essential for the trains.

BHEL's role in the consortium is crucial, as they will ensure the provision of essential electrical components and other necessary parts.

Going forward, BHEL plans to enhance its capabilities in electric traction systems, power electronics, and other electrical components crucial for railway operations.

For more details, see the BHEL company fact sheet and quarterly results.

#3 Titagarh Rail Systems

Next on the list is Titagarh Rail Systems.

Titagarh Rail Systems is mainly engaged in the manufacturing and selling of freight wagons, passenger coaches, metro trains, ships, etc.

It's one of India's largest wagon manufacturers, with a capacity of 8,400 wagons per annum. Titagarh receives a significant portion of its revenue from the Indian Railways.

In consortium with Bharat Heavy Electricals Limited (BHEL), TRSL has secured a substantial order from Indian Railways to produce 80 Vande Bharat sleeper trainsets.

It is also breaking new ground by becoming the first private sector company to manufacture Vande Bharat trains, demonstrating the growing role of private players in India's railway sector.

TRSL is the lead partner in this consortium, responsible for the overall design, manufacturing, and assembly of the Vande Bharat sleeper trains.

The first eight train sets will be completely built at Uttarpara. For the subsequent train sets, the final assembly, testing, and commissioning of the Vande Bharat sleeper trains will be conducted at Indian Railways' facilities in Chennai.

The company is setting up a dedicated manufacturing facility to produce a significant portion of the train components, thereby boosting local manufacturing and creating employment opportunities.

From 2026 onwards, even the wheels will come from a group venture. A proposed joint venture company named Ramkrishna Titagarh Rail Wheels Limited, formed between Titagarh and Ramkrishna Forgings, will manufacture the wheels.

The company will build 200,000 wheels per annum capacity plant, which will be the largest train wheel plant in Asia outside China. From 2026, the wheels for Vande Bharat sleeper trains will be supplied from this JV facility.

Going forward, the company is looking for strategic partnerships to drive growth. It's also looking to capitalise on the government's Make in India initiative.

For more details, check out Titagarh Rail Systems' fact sheet and quarterly results.

#4 Ramkrishna Forgings

Next on the list is Ramkrishna Forgings.

Ramkrishna Forgings Limited (RKFL) is a key supplier of critical components for Indian Railways.

It manufactures essential parts like bogie frames, bogie bolsters, screw couplings, and more, which are vital for the safety and performance of trains.

In line with the Vande Bharat sleeper series, the company secured an order worth Rs 2.7 bn to be supplied to the BHEL-Titagarh consortium.

Ramkrishna Forgings, which supplies rolled, forged, and machined products, said the scope of this project involves the development and validation of the bogie frame for the sleeper version of the Vande Bharat train set.

This order encompasses 32 train sets, each comprising 16 coaches. Consequently, Ramkrishna Forgings will be producing a total of 1,024 bogie frames. This order showcases the company's capacity to handle large-scale and intricate manufacturing requirements.

Given the growing demand for high-speed trains and the government's push for modernization, RKFL is likely to further expand its involvement in the Vande Bharat project.

For more details, see the Ramkrishna forgings company fact sheet and quarterly results.

#5 RVNL

Last on the list is Rail Vikas Nigam limited (RVNL).

Rail Vikas Nigam Limited (RVNL) is an Indian public sector undertaking that serves as the construction arm of the Ministry of Railways for project implementation and transportation infrastructure development.

Incorporated in 2003, RVNL was established to meet the country's growing infrastructural needs and to implement projects on a fast-track basis.

It is a category-I Miniratna public sector undertaking (PSU) under the administrative control of the Indian Ministry of Railways.

For the Vande Bharat sleeper series, RVNL has signed a shareholder agreement with Transmashholding's subsidiary (TMH) and Locomotive Electronic Systems (LES) for the supply of 120 Vande Bharat train sets within the stipulated time frame.

The agreement, signed on 29 July 2023, in New Delhi, entails the creation of a special purpose vehicle (SPV), 'Kinet Railway Solutions Ltd. (KRSL)', to manufacture, supply, and maintain the blue and white trains.

The newly formed KRSL will be responsible for manufacturing and supplying 120 Vande Bharat electric passenger sleeper train sets. In addition, the SPV will provide running maintenance services for these train sets for 35 years.

Earlier in March, the Russian-Indian consortium TMH-RVNL was awarded L1 status by the Ministry of Railways, emerging as the lowest bidder to produce 200 sleeper versions of Vande Bharat trains.

The consortium submitted bids for the Rs 580 bn contract to manufacture the state-of-the-art trains with the latest technologies.

As part of its growth plans, RVNL is expanding its reach into metro line development for major cities and suburban networks.

Beyond geographical expansion, RVNL is also forging partnerships within the rolling stock manufacturing sector, solidifying its position in the rail ecosystem.

For more details, see the Rail Vikas Nigam company fact sheet and quarterly results.

Conclusion

Finance Minister Nirmala Sitharaman highlighted an ambitious program during the interim budget for FY25 to upgrade 40,000 standard rail coaches to Vande Bharat standards.

Through this program, private sector railway manufacturers are poised to benefit significantly, with new refurbishment contracts projected to be worth Rs 40 bn annually for the next few years.

In addition to this transformative initiative, the finance minister emphasised the implementation of three major economic corridors to alleviate congestion on the railway network.

These corridors, part of the PM Gati Shakti initiative, include energy, mineral, and cement corridors; port connectivity corridors; and high-traffic density corridors.

By promoting multi-modal connectivity, these initiatives aim to enhance the efficiency of passenger train operations, ensuring safer and faster journeys.

The focus on upgrading rail coaches to Vande Bharat standards signifies a robust push towards modernising India's railway infrastructure.

With such a substantial budget, companies involved in manufacturing Vande Bharat components are poised for growth.

Nevertheless, it is always prudent to conduct thorough research before making any investment decisions.

Ensure that the investment aligns with your financial objectives and matches your risk tolerance level.

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