Zuari Industries Steams Ahead with Texmaco Partnership Worth ₹1.3 Billion

Zuari Industries Limited recently declared a big business development deal, signing a binding term sheet with Texmaco Rail & Engineering Limited. Zuari shall render development management services for one of the Texmaco projects, with an estimated fee to the tune of about ₹1.3 billion over the span of ten years. This venture represents a strategic move in the diversification and expansion plans of Zuari.

Key Highlights
Binding Term Sheet Executed: Zuari Industries' subsidiary has executed a binding term sheet with Texmaco Rail & Engineering Limited to undertake developmental aspects of a Texmaco project.

Estimated Revenue: The transaction is likely to earn development management fees of approximately ₹1.3 billion (₹130 crore per annum) over a period of 10 years.

Range of Services: Zuari's services will comprise complete development management services, highlighting its capabilities in engineering and infrastructure management.

Strategic Partnership: This tie-up with Texmaco enhances Zuari's grip on the industrial and infra segments while strengthening its association with Texmaco Rail, one of the leading players in diversified engineering and rail solutions.

Wider Implications: The transaction points towards Zuari's consistent drive to ensure a diversified business portfolio and tap into India's developing infrastructure and engineering market.

The pact is an example of Zuari Industries' strategic intent to use its technical capabilities and partnerships to assure long-term cash flows.

Sources
Angel One, CARE Ratings, Texmaco Rail & Engineering Limited official reports.