Escorts-Honeywell ties up for rail brake biz

With the recent tie ups between Escorts Limited and US-based Honeywell the former announced its entry into the rail brake block business in the country and has targeted a revenues worth Rs. 300cr from the new segment. The company is already earning about Rs. 27cr by selling the brake blocks forming a part of the friction material used in the rail wagons and coaches. After the forging of the partnership the Indian player has entered into an exclusive license and technological assistance agreement with the Honeywell for making available technology on friction materials for railway applications.

Executive Director, Business Head, Escorts Railway Products, Vikram Singhal, said that the partnership will also give Escorts exclusive access to sell Honeywell based systems in countries including Bangladesh, Turkey, Pakistan, Sri Lanka, Tanzania and Egypt. The company has rail equipment division which contributes Rs. 192cr to its total revenue. The local railway brake block market value has been estimated at Rs. 150cr and Escorts is targeting that business. Apart from this, it is also eyeing the exports market size of about Rs. 130cr.