Escorts Ltd is eyeing a larger share from the rail brake block market. This market is valued at nearly Rs 300 crore annually in seven countries including India that Escorts is targeting.
The company already makes Rs 27 crore just by selling the brake blocks, which form a part of the friction material used in all rail wagons and coaches, to the Indian Railways.
The company has entered into an exclusive license and technology assistance agreement with US-based firm Honeywell for providing technology on friction materials for railway applications.
With this tie-up, Escorts will get exclusive access to sell Honeywell-based systems in Bangladesh, Turkey, Pakistan, Sri Lanka, Tanzania and Egypt.
The Rs 3,210-crore Escorts Ltd has a rail equipment division which contributes Rs 192 crore to its total revenue.
Other players in the brake block business include Hindustan Composites Ltd, Rane Brake Linings and Bony Polymers.
“The Indian Railways' brake block market is valued at about Rs 150 crore, and Escorts is targeting that business,” Mr Vikram Singhal, Executive Director and Business Head, Escorts Railway Products, told Business Line . He declined to share specific numbers regarding the expected business revenue for the the next year or so.
“The market size of exports that we are looking at would be approximately Rs 130 crore,” said Mr Singhal.