City-based Titagarh Rail Systems Limited (TRSL) and the Amber group of Delhi-NCR have formed a strategic alliance to enter into train components and subsystems business in India and Italy.

Under the agreement, TRSL and the Amber group, through its wholly owned subsidiary Sidwal Refrigeration Industries Pvt Ltd, will invest Rs 120 crore to acquire equal control in the special purpose vehicle for setting up the business.

"This SPV will setup a new facility in India to manufacture critical railway components and subsystems used in the manufacture of railways and metro coaches and will also make fresh equity investments into Titagarh Firema SpA, Italy, an associate of the Titagarh Group, along with new investment to be made by government of Italy's investment arm, Invitalia, for which an in-principal nod has already been obtained," a statement from TRSL said.

"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.

The TRSL scrip at Rs 1,112.85 were up 1.50 per cent on the Bombay Stock Exchange on Thursday. Amber Enterprises India scrips at Rs 4,098.25 were up 7.77 per cent on the BSE on Thursday.

The Amber group has a diversified business covering three verticals — consumer durables, electronics and railway subsystems & mobility.

"It has been our stated business strategy and objective to achieve backward integration into key components and subsystems and this partnership with Amber group will enable us to achieve our goals," said Umesh Chowdhary, vice-chairman and managing director, Titagarh Rail Systems Limited.