Jupiter Wagons is planning a substantial expansion, with an investment of Rs 1,500 crore over the next two years to diversify its revenue streams beyond its core wagon manufacturing business. According to Vivek Lohia, managing director of Jupiter Wagons, Rs 1,200 crore of this investment will be allocated to increasing the company’s train wheel manufacturing capacity, scaling up from 20,000 wheels annually to 100,000 wheels in the next two years.
Additionally, Jupiter Wagons is set to enter the electric vehicle market by launching its first electric light commercial vehicle (ELCV). The initial ELCV, which has a one-ton payload capacity, is expected to be launched in July or August, with plans to introduce vehicles with up to two-ton payloads by the end of the year. This move is part of a broader strategy to introduce higher payload vehicles starting next year.
The company's strategic shift aims to balance revenue equally between wagon manufacturing and high-margin sectors such as railway components, commercial vehicles, and container businesses. Currently, wagons contribute around 60-70% of the company’s revenue, but this is expected to drop to below 50% as the other sectors grow. Jupiter Wagons is also increasing its wagon production capacity from 8,000 units annually to 12,000 and 15,000 units by 2025-26.
This comprehensive expansion strategy highlights Jupiter Wagons' efforts to reduce dependency on wagon manufacturing and leverage higher margin opportunities in other business verticals.
