Bullet train project is the dream project of our current PM Narendra Modi. We believe Capital Goods, Metals, Infrastructure and Cement sectors to be the most benefited.

 

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Overview of the Bullet Train Project

  • National High-Speed Rail Corporation Limited (NHSRCL) is implementing the project of high-speed train corridor between Ahmedabad and Mumbai.
  • The total length of the proposed High-Speed Railway Corridor is 508.17 km.
  • Construction of the corridor is expected to begin by June 2018. The first bullet train is scheduled to leave for its first run on 15 August 2022.
  • This project will create 20,000 direct jobs and many times Indirect jobs.
  • It will run at a speed of 320 km/hour.
  • It will reduce of travel time of Mumbai to Ahmedabad from 8 hours to 2 hours.
  • Annually 1.5 crore people will be benefitted from it.

Indian Companies get benefited from Bullet Train Project from Ahmadabad to Mumbai:

In Indian Bullet Train Project Japan is financing almost 81% of the cost. Japanese companies are likely to supply at least 70 percent of the core components of the rail line.

From Indian Bullet Train project Japanese steel and engineering companies are in the driver’s seat to bag major supply contracts for a USD 17 billion.

Indians companies are also getting benefit from this project. We believe Capital Goods, Metals, Infrastructure and Cement sectors to benefit the most from this project.

List of Companies

1) BHEL:

  • It is the only Indian Company which is likely to play a major role in the country’s bullet train project.
  • Japan-owned Kawasaki Heavy Industries and BHEL formed a joint venture to manufacture rolling stocks for the project.
  • Expected to manufacture the coaches at its Jhansi Plant in Uttar Pradesh or Bhopal in Madhya Pradesh
  • The company has a very strong order book Rs 101,380 crore in Q1 FY18.

2) SAIL:

  • Company is the largest steel producer in India. It is one of the largest steel producers in the world. It has an annual production of 14.38 million metric tons
  • For decades SAIL has been the main supplier of rails to Indian Railways. It was also overlooked by Japanese companies due to quality concerns

3) TATA STEEL

  • Tata Steel is one of the top steel producing companies. It has a capacity of 27.5 million tonnes (in FY17), and the 2nd largest steel company in India. The Company has an annual capacity of 13 million tonnes after SAIL.
  • It is one of the fastest-growing companies in India with a footprint in over 140 countries.
  • The Stocks are likely to benefit from the project as it will increase the demand for commodities like steel, iron, etc

4) JSW STEEL

  • JSW Steel is one of India’s leading integrated steel manufacturers with a capacity of 18 MTPA.
  • The Stocks are likely to benefit from the project as it will increase the demand for commodities like steel, iron, etc

Note:- Till now none of the Indian steel companies got any order from this project neither did any joint venture with any Japanese Companies.

But 2019 Loksabha Election is nearby and the government wants to give jobs to Indian people. It might be possible that with the interference of Indian Government Steel companies might get some order.

5) ULTRATECH CEMENT

  • It is the largest cement producer in India with a cement capacity of 95.3 Million Tonnes Per Annum.
  • It has a market share of 22% on a pan-India basis and is the 4th largest player globally.

6) AMBUJA CEMENT

  • Ambuja Cement is among the leading cement companies in India.
  • It has a cement capacity of 29.65 Million Tonnes Per Annum

Some of the other cement companies to benefit from this project are

ACC and Prism Cement.

 

Click Here to visit Portfolio Distribution of Bullet train

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