Russian Company TMH to Export Vande Bharat Trains from India, Says CEO

Russian rolling stock giant Transmashholding (TMH) is focusing on the Indian market as a key hub for future growth, with plans to not only expand its current project of Vande Bharat sleeper coaches but also use India as an export base. In an insightful discussion with Indian journalists in Moscow, CEO Kirill Lipa emphasized India’s significance, given its strategic position as the world’s most populous country and its vast network of cities that require efficient transportation solutions.

According to Lipa, “You have the largest population in the world. You have the largest number of cities in the world… it’s impossible to develop a city without rail transport.” With expertise in trains, TMH sees significant potential in electric multiple units (EMUs), metro systems, and sleeper coaches, which align with India’s growing demand for modern transportation infrastructure.

Shift Toward Indian Suppliers in the Post-Sanctions Era

TMH has strengthened its presence in India by forming direct partnerships with Indian suppliers for the Vande Bharat project, distancing itself from European intermediaries due to the post-sanctions environment. This strategic shift is aimed at ensuring seamless operations in a changing geopolitical landscape while fostering long-term business ties with local suppliers. This move reflects TMH’s commitment to integrating into the Indian market, utilizing the country’s growing manufacturing capabilities for long-term success.

Developing a Workforce and Educational Collaboration

TMH is committed to more than just providing trains; the company aims to play an active role in developing human resources for India’s railway sector. CEO Lipa highlighted the importance of creating an educational framework that can facilitate the movement of Indian specialists to Russia and other countries where TMH operates.

The goal is to create an educational system in India that trains people to work both domestically and internationally, ensuring the continuity of technical expertise. With an investment in skills development, TMH envisions a workforce that can thrive globally, benefitting both India and Russia.

TMH's Stability and Future Plans in India

Lipa confidently stated that TMH’s operations in India remain stable despite the challenges posed by global sanctions. The Indian Railways contract, which was signed just two weeks after sanctions were announced, solidified TMH’s foothold in the country. Looking ahead, Lipa emphasized the company’s desire to position itself as a long-term player in India’s railway sector.

TMH’s ambitions extend beyond the Vande Bharat contract, as the company sees India as a key manufacturing hub for other regions, particularly Africa. By leveraging India’s advanced manufacturing capabilities and strategic location, TMH aims to serve markets across the globe from its Indian base.

Ongoing Collaboration with Indian Railways and Design Modifications

Currently, TMH is working on design modifications requested by Indian Railways for the Vande Bharat sleeper coach project. These include additional toilets and pantry cars, which will enhance the overall functionality of the coaches. The company’s strong technical background and commitment to quality are evident as they adapt to the specific needs of Indian Railways, which has asked for these enhancements by May 2024.

Impressive Track Record and Investments

With an initial investment of $200 million, including $50 million in equity and the remainder in bank loans, TMH brings significant experience to India’s railway sector. The company manufactures 90% of Russia’s passenger coaches and 99.9% of Moscow’s metro fleet, with 6,658 cars in operation. TMH also maintains a massive fleet, including 17,000 locomotives, 4,300 metro trains, 2,000 EMUs/DMUs, and 500 trams in Russia. This impressive track record underscores TMH’s capability and reliability, making it a strong partner for India’s ambitious railway modernization plans.

Strategic Focus on Manufacturing Hub for Export Markets

TMH’s vision extends beyond Indian borders, aiming to use India as an export hub for rail transportation solutions. The company recognizes the potential of India’s advanced manufacturing sector and sees it as an ideal location for serving not just the domestic market but also international markets, especially in Africa. With a strong manufacturing base in India, TMH plans to capitalize on the country’s strategic location and growing railway infrastructure demand to expand its global footprint.