Alstom, a major railway infrastructure company, plans to produce train batteries in India, initially importing them from France. These batteries will provide backup power for diesel and electric trains during power failures, non-electrified tracks, or maintenance moves. The company will eventually manufacture these batteries at its Maneja facility in Gujarat.
Benefits of Battery-Powered Trains:
- Energy Efficiency and Reduced Emissions: Alstom’s CEO, Henri Poupart-Lafarge, highlights that battery-powered trains are more energy-efficient and environmentally friendly.
- Improved Connectivity: These trains can travel on non-electrified routes, enhancing connectivity in India.
- Reliability for Metro Systems: Battery-powered traction ensures metro systems run smoothly during power failures, providing uninterrupted commuter comfort.
- Multiple Uses: The lithium-ion batteries can also be adapted for other transportation modes, including ships and vehicles.
Market Potential in India:
India’s growing urban transportation sector, especially metro rail projects, increases the demand for rolling stock (engines and coaches). Alstom is expanding its operations in India, including more maintenance teams and sites. The company sees significant growth opportunities in India for both manufacturing and maintenance of railway infrastructure.
Financial Context:
In FY24, Alstom’s net profit dropped over 80%, prompting a deleveraging plan involving asset sales and new bond issues. Despite these challenges, Poupart-Lafarge remains positive about the company’s future, particularly in the Indian market.
Key Points:
- Batteries initially imported from France, later produced in Gujarat.
- Improved train performance and reduced emissions.
- Increased demand for rolling stock in India’s growing urban transport sector.
- Alstom’s focus on expanding operations and maintenance in India.
- Significant potential for growth despite recent financial setbacks.
