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Stock News India > Blog > Company Orders > Oriental Rail Infrastructure Wins ICF Chennai Contract Worth ₹2.46 Cr
Company Orders

Oriental Rail Infrastructure Wins ICF Chennai Contract Worth ₹2.46 Cr

News India
Last updated: May 26, 2025 12:16 pm
By News India
7 Min Read
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Introduction

In a noteworthy development in the Indian railway manufacturing ecosystem, Oriental Rail Infrastructure Limited (ORIL) has secured a prestigious order from the Integral Coach Factory (ICF), Chennai, part of the Indian Railways network. The contract is valued at approximately ₹2.46 crore, and it includes the supply and installation of 32 coach sets of passenger seating chairs. The order is scheduled for completion by January 31, 2027, according to the company’s regulatory filing to the Bombay Stock Exchange (BSE).

Contents
IntroductionContract DetailsValue of the ProjectExecution TimelinePromoter and Related Party InvolvementAbout Oriental Rail Infrastructure LimitedStrategic ImportanceIndustry OutlookConclusion

This deal reinforces Oriental Rail Infrastructure’s positioning as a trusted partner for railway coach furnishing and interior systems in India. The announcement was made in line with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, reflecting full transparency and compliance.

Contract Details

The contract awarded by ICF Chennai, a renowned manufacturing unit under the Ministry of Railways, entails the delivery and installation of 32 sets of coach chairs at the Furnishing Depot of ICF, Chennai. The contract outlines a structured payment schedule:

  • 90% of the supply cost will be paid upon submission of the inspection certificate and the Provisional Physical Receipt Certificate.
  • The remaining 10% and full installation charges will be paid post installation and acceptance by the designated consignee, as certified by competent authorities.

The scope of the work falls under domestic supply and installation, with the awarded entity being a public sector division, making this a fully domestic contract. It confirms Oriental Rail’s growing footprint in supplying quality furnishing components to Indian Railways.

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Value of the Project

The total order value stands at ₹2,46,49,614.72 (Two Crore Forty-Six Lakhs Forty-Nine Thousand Six Hundred Fourteen and Seventy-Two Paise). While not an extremely large contract, it is strategically significant as it further cements Oriental Rail Infrastructure’s relationship with one of the Indian Railways’ most vital coach production facilities.

This order is also a testament to Oriental Rail’s consistent ability to meet stringent technical and quality standards required by Indian Railways. With modernization and comfort being a high priority in rail travel, especially in long-distance and premium coaches, this order directly feeds into that broader national objective.

Execution Timeline

The timeline for execution of the project is spread over an extended period, with the final delivery and installation deadline set for January 31, 2027. The multi-year execution period ensures ORIL has the bandwidth to manage procurement, manufacturing, quality assurance, and final installation in an orderly and efficient manner.

This timeline also suggests the project could be delivered in phases depending on Indian Railways’ internal manufacturing schedules, giving Oriental Rail flexibility in operational planning and inventory management.

Promoter and Related Party Involvement

The company has officially clarified that there is no promoter or group company involvement in this contract. Furthermore, the transaction does not qualify as a related-party transaction, eliminating any concerns regarding conflict of interest or compliance issues. This clean and transparent deal reinforces the company’s strong corporate governance practices.

About Oriental Rail Infrastructure Limited

Oriental Rail Infrastructure Limited is a leading player in the field of coach interiors, furnishing systems, and component supply to Indian Railways and metro rail systems. With a strong legacy in delivering quality rail coach components and innovative passenger-centric designs, ORIL has steadily built a reputation for reliability and precision engineering.

The company’s product portfolio includes modular toilets, seats, and coach furniture designed for ergonomic comfort and durability. ORIL plays a critical role in supporting Indian Railways’ broader modernization drive, particularly in transforming older coaches into modern, passenger-friendly rakes.

This new contract is yet another feather in Oriental Rail’s cap, enabling it to continue contributing meaningfully to India’s transport infrastructure.

Strategic Importance

This win is important not just in monetary terms but also strategically. ICF Chennai is one of the most prominent coach manufacturing units in India and contributes significantly to the production of Linke Hofmann Busch (LHB) coaches. Securing a contract with such a premier manufacturing facility indicates Oriental Rail’s capability in meeting high standards for quality, compliance, and timely delivery.

Moreover, Indian Railways has been undergoing significant transformation in recent years, focusing on passenger comfort, aesthetics, and modern amenities. This shift increases demand for modular seating and well-designed interiors—areas where Oriental Rail has deep expertise.

Industry Outlook

With the Union Government prioritizing investment in railway infrastructure and modernization, especially under the National Rail Plan and PM Gati Shakti initiatives, companies like Oriental Rail stand to benefit significantly. Upgrades to passenger amenities and rolling stock refurbishment are expected to drive strong demand for coach interiors over the next 5–10 years.

The announcement of this new order is likely to bolster confidence among stakeholders and investors in ORIL’s future growth prospects. It also signals the company’s readiness to scale its operations and tap into emerging opportunities within the Indian public transport sector.

Conclusion

The awarding of this ₹2.46 crore contract by ICF Chennai to Oriental Rail Infrastructure Limited is a clear vote of confidence in the company’s capability, quality, and project management expertise. This order not only strengthens Oriental Rail’s project portfolio but also reaffirms its position as a reliable contributor to India’s railway modernization journey.

As Indian Railways continues to invest in infrastructure and elevate passenger experiences, Oriental Rail Infrastructure is well-positioned to play a pivotal role in the transformation. With a solid track record and a growing list of contracts, the future appears promising for this Mumbai-headquartered railway interiors company.

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TAGGED:Indian Railways contractORILRailway interior contractSEBI disclosureStock market update ORIL

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