Texmaco Rail and Engineering Ltd (TexRail), a K.K. Birla Group company, plans to set up a greenfield foundry with a capacity of about 50,000 tonnes a year.
The foundry would help the company to meet the growth in future demand for its products in the domestic and export markets.
According to a company release, TexRail's steel foundry division witnessed a sluggish growth last year as the demand was low in the first eight months on account of delay in release of orders for wagons by the Railways.
In 2010-11, TexRail's exports were Rs 7.3 crore. The company has an export order book of Rs 21 crore at the beginning of current financial year. The company delivered 3,801 wagons valued at about Rs 871 crore during the year, marking a market share of 25 per cent.
For the year ended March 31, 2011, the company's net profit grew by 44 per cent at Rs 121 crore and net sales were at Rs 938 crore. The net profit for the fourth quarter ended March 31, 2011, was at Rs 43 crore.
TexRail FY 2011 results are not comparable with the year-ago figures as the company was created by spinning off Texmaco Ltd's heavy engineering and foundry businesses, effective April 1, 2010.