Calcutta-based Titagarh Rail Systems Ltd (TRSL) on Thursday said it has signed an agreement with Amber group to foray into railway component and subsystem business in India and overseas.

Under the pact, TRSL and Amber group, via its wholly owned subsidiary Sidwal Refrigeration Industries Pvt Ltd, will invest up to Rs 120 crore each to acquire equal control in the SPV for setting up the new railway component business as well as fresh equity investment in Firema, Italy.

"Titagarh Rail Systems... and Amber group of Delhi-NCR... agreed to enter the railway component and subsystem business by way of a joint venture company/SPV (special purpose vehicle)," the company said in a filing to the BSE.

This SPV will set up a new plant in India to manufacture critical railway components and subsystems used in the manufacture of railway and Metro coaches.

It will also make fresh equity investments into Titagarh Firema SpA, Italy, an associate of the Titagarh Group, along with new investment by the Italy government's investment arm, Invitalia, for which an in-principle approval has already been obtained.

"Under the agreement, Firema will grant Sidwal, Titagarh Rail as well as the JVC- SPV a preferred supplier status and right of first refusal for all their products," the company said.

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