RITES plans an expansion on the African continent

03 Jun 2024 CW Team

Rahul Mithal, CMD of RITES, mentioned that they secured the order for cape gauge through a competitive bidding process. He noted that approximately 12 neighbouring countries in Mozambique also utilise this specific gauge, presenting a significant opportunity for RITES in terms of rolling stock. Additionally, Mithal highlighted that Africa serves as a promising market for the company, given its existing presence on the continent through several contract acquisitions.

In December 2023, RITES Ltd. entered into an agreement with CFM Mozambique for the provision of diesel locomotives and associated services, totaling Rs 3.14 billion. This agreement entails the delivery of ten diesel locomotives. Furthermore, in terms of consultancy services, the company operates a subsidiary, RITES Africa, headquartered in Botswana, which is engaged in consultancy projects.

Mithal expressed optimism regarding the emergence of numerous consulting project opportunities across the African continent. He emphasised that RITES has a significant track record in project consultancy and rolling stock businesses in Africa and intends to pursue further opportunities in the future.

In addition, RITES Ltd. has an overseas division called RITES Videsh that searches the globe for commercial prospects. To take advantage of the many commercial prospects in the UAE and surrounding nations, RITES Ltd. established a branch office in Abu Dhabi, United Arab Emirates, in March 2024. India and the UAE inked an intergovernmental framework agreement for the IMEC corridor. A Memorandum of Understanding (MoU) between RITES and Abu Dhabi Ports aims to investigate all commercial prospects in the United Arab Emirates, among other things.

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The state-owned company RITES Ltd., which specialises in manufacturing locomotives, including the requested ones, has the possibility to conduct business with about a dozen African nations that depend on cape-gauge railway locomotives. First adopted in South Africa, cape-gauge locomotives are thinner than standard-gauge locomotives. Rahul Mithal, CMD of RITES, mentioned that they secured the order for cape gauge through a competitive bidding process. He noted that approximately 12 neighbouring countries in Mozambique also utilise this specific gauge, presenting a significant opportunity for RITES in terms of rolling stock. Additionally, Mithal highlighted that Africa serves as a promising market for the company, given its existing presence on the continent through several contract acquisitions. In December 2023, RITES Ltd. entered into an agreement with CFM Mozambique for the provision of diesel locomotives and associated services, totaling Rs 3.14 billion. This agreement entails the delivery of ten diesel locomotives. Furthermore, in terms of consultancy services, the company operates a subsidiary, RITES Africa, headquartered in Botswana, which is engaged in consultancy projects. Mithal expressed optimism regarding the emergence of numerous consulting project opportunities across the African continent. He emphasised that RITES has a significant track record in project consultancy and rolling stock businesses in Africa and intends to pursue further opportunities in the future. In addition, RITES Ltd. has an overseas division called RITES Videsh that searches the globe for commercial prospects. To take advantage of the many commercial prospects in the UAE and surrounding nations, RITES Ltd. established a branch office in Abu Dhabi, United Arab Emirates, in March 2024. India and the UAE inked an intergovernmental framework agreement for the IMEC corridor. A Memorandum of Understanding (MoU) between RITES and Abu Dhabi Ports aims to investigate all commercial prospects in the United Arab Emirates, among other things.

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