Escorts addresses the growing needs – safety, comfort and reliability – of the second largest railway network in the world.

India, Railways and Escorts

Escorts’ Railway Products (ERP) division possesses a rich, multi-decade experience in the manufacture of critical railway components.

The division (operationalised in 1962) is one of the oldest such units in the country, partnering the Indian Railways in its modernisation journey. The division is a market leader across all its product offerings. ERP develops cutting-edge technology products in a state-of-the-art research and design facility (Faridabad) and through collaborations with leading technology providers. The division has specialised in the safety,comfort and reliability niche.

ERP is ISO 9001:2008-certified with products conforming to Indian RDSO (Research Design & Standards Organisation) and international standards (UIC and AAR, among others). The division’s manufacturing facility is spread across 12,500 sq. m (Faridabad) housing robust production and testing facilities. The division also possesses strong quality practices and systems backed by state-of-the-art calibration facilities and standard room (including automatic 3D CMM and other facilities selected around MSA principles).

Strategy

  • Presence across the rolling stock segments for passenger coaches, locomotives, wagons, EMUs and metro/ MRTS
  • Strong focus on the principles of lean and frugal engineering and operational excellence

Performance

  • Topline growth of 15.2% in 2012-14

Presence

  • One manufacturing unit located in Faridabad (Haryana)

Products

  • Mix of in-house manufacturing, technology transfer agreements (and buybacks) and contract manufacturing
  • Focus on innovation through the development of high-end, next-generation equipment (for instance, bogie-mounted brake systems and axle-mounted disc brakes, among others)
  • Synergistic focus on other systems and components (for instance fire protection and retardation systems) for the Indian Railways

Core operational and financial metrics

  2011-12 2012-14 (18)
Revenue 148.80 4,556
EBIT 9.6 14.56

Principal 2012-14 developments

  • Introduced seven products
  • Augmented design aesthetics and quality of railway shock absorber products (transferred from the Company’s auto division in 2013)
  • Extended the product (high-end railway brake pads) development tie-up with Honeywell for two years
  • Replaced legacy equipment with eight high-end CNC machines, strengthening process efficiency and product quality
  • Replaced legacy equipment with eight high-end CNC machines, strengthening process efficiency and product quality