JSW Infrastructure Expands Rail Rakes Business to Strengthen Logistics Segment
JSW Infrastructure Limited (JSWIL) announced its strategic expansion into the railway rakes business through its wholly owned subsidiary JSW Port Logistics Pvt Ltd. The Company has entered into a Share Purchase Agreement with JSW Shipping & Logistics Pvt Ltd to acquire 100% equity shares of JSW Rail Infra Logistics Pvt Ltd, JSW Minerals Rail Logistics Pvt Ltd, and JSW (South) Rail Logistics Pvt Ltd, for an Enterprise Value of 1,212 crore. The acquisition provides JSWIL immediate access to Indian Railways’ General Purpose Wagon Investment Scheme (GPWIS), and Liberalized Special Freight Train Operator (LSFTO) schemes, securing a fleet of 21 rakes with 4 more under delivery, and long-term licenses under these programs. The transaction is EPS accretive from inception and aligns with JSWIL’s strategy to build an end-to-end multimodal logistics platform integrating ports, terminals, ICD/CFS, and rail connectivity.
Key Highlights
- Immediate operational readiness with valid licenses and approved routes under GPWIS & LSFTO schemes
- Revenue visibility with 10-year contracts with marquee clients including JSW Steel and Bhushan Power and Steel Limited
- Attractive valuation with the proposed transaction expected to deliver an annualized EBITDA of 150 crore by FY 2027
- Growth roadmap with the fleet to scale from 25 rakes post-acquisition to 45 rakes by FY 2027, targeting 110 rakes by FY 2030
- Strategic synergy with enhanced connectivity to JSWIL’s ports and unlocks third-party business opportunities in mineral-rich regions