RITES launches green mobility vertical, explores global markets
Real Estate

RITES launches green mobility vertical, explores global markets

RITES, a government-owned railway engineering and consulting company, has initiated a new segment dedicated to offering consultancy support for companies venturing into electric, hydrogen, or renewable fuel-based mobility operations. The company is strategically expanding its services to Southeast Asia, Africa, and Latin America, exploring consulting and certification offerings while also considering rolling stock exports to neighbouring nations to revitalise its export revenue, which had dwindled to Rs 10 million by the end of the September quarter.

RITES Chairman and Managing Director, Rahul Mithal, revealed the establishment of a Green Mobility Vertical on November 1, focusing on consultancy services for various aspects of green mobility, including electric vehicles and hydrogen. Mithal emphasised plans to consolidate this vertical to generate revenue in the upcoming fiscal year.

Earlier in the year, RITES had introduced a sustainability vertical, receiving orders in solid waste management, the Swachh Bharat Mission, and clean air programs. Mithal expressed confidence in the continued growth of these vertical, anticipating more orders in the coming months.

Despite facing challenges during the COVID-19 pandemic, RITES foresees a significant uptick in its export order book. The company is in the final stages of securing contracts totalling Rs 15 billion for supplying locomotives and wagons to Mozambique and Bangladesh. Notably, RITES emerged as the lowest-cost bidder for a global tender to supply 200 railway coaches to Bangladesh and additional orders to Mozambique. Sri Lanka, in the midst of economic recovery, has also approached RITES for rolling stock supplies.

RITES is exploring consulting opportunities in Nepal and Latin American countries, particularly Chile, which share a broad-gauge railway system similar to India's. The company aims to enhance revenue through high-margin exports.

Acknowledging a 21.5% decline in net profit in the September quarter, Mithal attributed the decrease to a sharp fall in export orders and reduced rates from Indian Railways for quality assurance and inspection services. In response, RITES has devised a three-pronged strategy involving an increase in project consultancy revenue, diversification of inspection fee clients, and exploration of new markets for rolling stock exports.

Armed with international certification for its production inspection business, RITES is actively pursuing global opportunities, including the inspection of metro systems, with interest already expressed by various metro projects in India, including DMRC.

RITES, a government-owned railway engineering and consulting company, has initiated a new segment dedicated to offering consultancy support for companies venturing into electric, hydrogen, or renewable fuel-based mobility operations. The company is strategically expanding its services to Southeast Asia, Africa, and Latin America, exploring consulting and certification offerings while also considering rolling stock exports to neighbouring nations to revitalise its export revenue, which had dwindled to Rs 10 million by the end of the September quarter. RITES Chairman and Managing Director, Rahul Mithal, revealed the establishment of a Green Mobility Vertical on November 1, focusing on consultancy services for various aspects of green mobility, including electric vehicles and hydrogen. Mithal emphasised plans to consolidate this vertical to generate revenue in the upcoming fiscal year. Earlier in the year, RITES had introduced a sustainability vertical, receiving orders in solid waste management, the Swachh Bharat Mission, and clean air programs. Mithal expressed confidence in the continued growth of these vertical, anticipating more orders in the coming months. Despite facing challenges during the COVID-19 pandemic, RITES foresees a significant uptick in its export order book. The company is in the final stages of securing contracts totalling Rs 15 billion for supplying locomotives and wagons to Mozambique and Bangladesh. Notably, RITES emerged as the lowest-cost bidder for a global tender to supply 200 railway coaches to Bangladesh and additional orders to Mozambique. Sri Lanka, in the midst of economic recovery, has also approached RITES for rolling stock supplies. RITES is exploring consulting opportunities in Nepal and Latin American countries, particularly Chile, which share a broad-gauge railway system similar to India's. The company aims to enhance revenue through high-margin exports. Acknowledging a 21.5% decline in net profit in the September quarter, Mithal attributed the decrease to a sharp fall in export orders and reduced rates from Indian Railways for quality assurance and inspection services. In response, RITES has devised a three-pronged strategy involving an increase in project consultancy revenue, diversification of inspection fee clients, and exploration of new markets for rolling stock exports. Armed with international certification for its production inspection business, RITES is actively pursuing global opportunities, including the inspection of metro systems, with interest already expressed by various metro projects in India, including DMRC.

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