INGRESS Corp Bhd is tipped to have secured another RM1bil worth of contract to supply signalling and communication systems for the Ipoh-Padang Besar double-tracking railway project.

An industry source said the contract would be awarded to a joint-venture company between Ingress and Italy-based Ansaldo Group.

Ingress's 49% associate, Balfour Beatty Rail Sdn Bhd, via a joint venture with Ansaldo's Malaysian unit – Ansaldo STS Malaysia Sdn Bhd – recently secured an RM1bil contract for the electrification part of the double-tracking project.

Ansaldo, which is listed on the Milan stock exchange, has a reputable record in the provision of traffic management, planning, train control and signalling systems and services.

“Electrification works start first before signalling and communication systems are set up,” the source said.

Having both contracts would encourage sharing of resources and creating more efficiency and cost savings, thus giving better margins for the group, the source added.

Datuk Rameli Musa

Ingress group chief executive officer Datuk Rameli Musa, when contacted, declined to comment on the matter.

However, he said, the company was interested in bidding for the electrification portion of the Seremban-Gemas double-tracking project, which was estimated to worth between RM400mil and RM500mil.

Ircon International Ltd, which is the main contractor, has yet to open the tender for that part.

Meanwhile, Ingress' power engineering railway (PER) division would remain profitable in the next two years, buoyed by demand for electric rail in the country as well as in the region.

“With oil prices rising and environmental issues cropping up, there will be demand for cleaner form of transportation,” Rameli said.

The group would also leverage on its partner Balfour Beatty's expertise and global network to expand regionally.

“We've been invited to view some rail electrification projects in Mumbai, India and Saudi Arabia,” he said.

For the auto and components manufacturing (ACM) business, Ingress expects Indonesia's total industry volume this year to supersede Malaysia.

This would bode well for its ACM division in Indonesia, which supplied to carmakers like Daihatsu and Suzuki, Rameli said.

Last year, its ACM division in Indonesia produced about 30,000 of auto part sets from a total capacity of up to 100,000 sets.

This was likely to increase to some 60,000 sets this year, Rameli said, adding that in revenue terms, it would be more than 50% higher.

The prospect for the Indonesian auto sector looked buoyant, especially after the bilateral agreement with Japan, which allowed Japanese auto parts to be exported to Indonesia with free duty.

Thailand's demand is also expected to remain firm. Last year, its ACM division in Thailand produced about 80,000 auto part sets from an annual capacity of 1.4 million.

Locally, Ingress expects new products like wire harness, stamping and under carriage parts, which are of higher value items, to sustain its ACM earnings.

“We already controlled about 70% share of the door sets and moulding market,” he noted.

On rising cost of fuel, he said the impact would be more visible in the next six months.

Currently, there was strong demand for compact and fuel-efficient cars like Perodua Myvi and Viva, as well as for Proton's Persona and new Saga models, Rameli added.

This year, Ingress formed a partnership with South Korean-based CES Co Ltd to design and fabricate tools, dies and jigs.

Rameli said by having in-house expertise, Ingress would see enhanced competitiveness in terms of product pricing and lead-time.

Meanwhile, Ingress is eyeing for further exposure in India's auto sector. It presently provides technical assistance to Mayur Industries Ltd of India.

“We hope to form a joint-venture company in India by end of this year,” he said.