Concord control system
FUTURE GROWTH TRIGGERS
1…According to the management, the company is targeting revenue growth at 40%-50% CAGR in the coming 3 to 5 years
=The company is also targeting to maintain EBITDA margins in the range of 23% to 25%
2…Locomotive(2024)
=Acquisition@2024@100%
@ Advanced Rail Controls Private Limited
Q=Which is major contributor in the growth guidance which is 40% to 50%?
Ans = locomotive
=From the locomotive products, we said that the target addressable
market is about ₹2.5 thousand crores for the next five to six years and
that is going to contribute maximum, because that adds a completely
new vertical at Concord.
=From traction and coaching, we added locomotive as a strong base. So that will steadily contribute to the
growth forward along with others.
=Company is a Leader in manufacturing few of the
most advance communication products used for Locomotives Operations
=After acquisition of
Advanced Rail, we are more focused on embedded electronics. Definitely it is a niche area and has a lot of value added in it
=When we began the acquisition of this company, its core focus was on embedded electronics for locomotives. Since then, the business has demonstrated significant progress and growth and that remains a key focus area for us
3…Traction products opportunity
=2x25 kV electrification on all new high density and high speed
routes.
=A large part of the network has now
been electrified. But with the recent change in the consumption pattern
of power or rather the power utilisation of the railway network, the
railway is now moving into 2x25 and that is a new market which is
opening up. And we’re already ready for it and have started supplying
products. So our entire range of products have moved from the
conventional traction products to these 2x25 KVA offering.
=We already have a product basket under traction for 2x25 kVA. Rather,
we would be one of the few companies or the early ones to move ahead and develop an entire productivity around traction products for 2x25. And
we are receiving orders as well as
executing them from time-to-time. We are very hopeful that the order size will keep increasing as the 2x25
installation increase in the Country.
4…Coaching products@ Growth driver of last few yrs
=Coaching products, we do a lot of products related to the passenger
coaches, which are from the inter vehicular couplers to BLDC fans,
emergency lights, cable management systems, and bellow ducts and
exhaust fans.
= This is a vertical phase, which has seen a significant growth in the past few years and has contributed largely to the EBITDA of the Company in the past few financial year performances.
5…New products
-DPWCS (super anaconda)
-MSDAC
-kavach
-Wild(wheel impact)
A=Wild@
=Received your first order under Concord Labs for the Wayside
Equipment’s.(May 2025)
B=DPWCS
=DPWCS is approved and will be commercialise soon
=We are in multiple advanced stages of finalisation of certain orders around this product.(may 2025)
C=MSDAC(approval pending)
=We will be getting an approval
soon from RDSO
D=Kavach(approval pending)
=The prototype for Kavach 4.0 is under evaluation by
RDSO, and we are always focused on and relentlessly working in
getting our SIL4 certifications, getting everything in order, and everything
is working in tandem.
And we are very hopeful of a better information and news in the recent
times
6…Metro business(2025)
=In FY25 we entered into a Transfer of Technology agreement with a German company for the metro business. This ToT is in the area of Overhead Monitoring systems for real time wire monitoring, precise diagnostics and actionable alerts essential for seamless operations
7…Huge business opportunity
Business opportunity size @47000 cr till 2030
A…Traction products@ 550 cr
B…Coaching products@750 cr
C…Metro@ 250cr
D…Locomotive@2500 cr
E…Kavach@ 40000cr
F…Wheel impact load@ 1000 cr
G…Multi section digital acle@2000cr
8…Export
=Not only railways in India, but with the help of WILD, with
the help of Advanced Rail and all the current technologies which we are
building today, we feel or hope that we are now well positioned to look at
the global market, and we are now aiming to explore more and more
solutions, support, system integration for global railway and locomotive
clients.
9…Hydrogen
=Our focus on hydrogen and battery powered locomotives is also increasing and we feel or hope that there will be a significant milestone which we will achieve in the coming years around hydrogen and battery powered locomotives, which again is not only an Indian railways business, but a global business with a lot of potential.
10…Kavach business
=(Nov 2024)
As per govt website
“Currently, 3 OEMs are approved for supply of Kavach System. To increase capacity and scale of implementation, trials and approval of more OEMs are at different stages.”
=Total 3 and later 1 companies are approved
-Medha
-Hbl power
-kernex
-cg power
=Acqusition@ 2023@26%
@Progota India Pvt Ltd
=Kavach business i.e. Progota India Pvt Ltd, we are soon to receive section allocation for field trials and tenders are expected for the same. Our prototype is also under
evaluation by RDSO for Kavach 4.0
11…DPWCS Business
(DISTRIBUTED POWER WIRELESS CONTROL SYSTEM)
(From Advanced Rail Controls Private Limited )
=In the DPWCS Business, which is the Super Anaconda, under advanced rail controls, the product and solution has come under serious reckoning by the Railways led by the safety
criteria and speed for freight movement.
=It can be a significantly large opportunity for fitment into existing as well new locomotives. The opportunity size in this business over the next 5-6 years is approximately Rs 2500 cr
=DPWCS is a product which is
focused on improving the freight movement in the Country, when the
Indian Government or the Indian Railways attach multiple freight trains into a single formation so that the throughput of the freight movement
improves. This is now becoming a very relevant technology in the current scenario, and the focus of Indian railways is increasing more and more in this area
=The
opportunity size in this business for the next four to five years would
roughly be approximately ₹2,000 plus crores. That’s why we are working
tirelessly every day to focus on this product and continuously grow the
business across the Country
=We are in multiple advanced stages of finalisation of certain orders around this product.
12…Wheel Impact load detector system(2025)
(Rev still not started)
= Our wheel impact load detector system under Concord Lab to Market Innovations Pvt Ltd which is our 49% associate company has received initial orders and we are positive about this business scaling up further. The opportunity size in this business over the next 5-6 years stands at approximately Rs 2000 cr.
=we have already secured certain
orders in this field and we are working towards finalisation of the same in
the recent coming weeks. So while it is again a large opportunity, we are
completely working towards getting the business soon and make it large
13…Multi Section Digital Axle Counter (MSDAC) (Progota India P Ltd)
=On the Wayside equipment, which we are also doing under Progota,
this is a product where we were getting a technology under Make in India
from Spain. We are again as per our last commitments, we are very well in
our milestones and achieving all the milestones for getting an approval
soon from RDSO and taking this forward.
=2000 cr business opportunity
================
