The acquisition, valued on a slump sale basis, marks Sona Comstar’s entry into the railway component sector and supports its strategy to diversify within the broader mobility and clean transportation space.
02 Jun 2025 | 4823 Views | By Sarthak Mahajan
Sona BLW Precision Forgings Ltd. (Sona Comstar), a global mobility technology supplier, has completed the acquisition of the Railway Equipment Division (RED) of Escorts Kubota Limited. The transaction, executed as a going concern on a slump sale basis, was first announced in October 2024.
RED, a key supplier of ...
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Sona BLW Precision Forgings Ltd. (Sona Comstar), a global mobility technology supplier, has completed the acquisition of the Railway Equipment Division (RED) of Escorts Kubota Limited. The transaction, executed as a going concern on a slump sale basis, was first announced in October 2024.
RED, a key supplier of railway components such as brake and suspension systems for rolling stock, recorded revenue of INR 913 crore and a profit before tax of INR 188 crore in FY25.
Vivek Vikram Singh, Managing Director and Group CEO of Sona Comstar, said the acquisition aligns with the company’s broader strategy of expanding into adjacent mobility sectors. “This addition enhances our capabilities in clean mobility and gives us access to a new segment with long-term growth potential,” Singh stated.
He added that the railway sector in India presents a favourable outlook, supported by a large operational network, urbanization trends, and ongoing infrastructure investment. These factors are expected to increase the demand for engineered and technologically advanced components.
The move also reflects Sona Comstar’s focus on low-emission transportation technologies, with railways recognized as one of the more environmentally sustainable transport options. The company believes that increasing rail’s share in freight and passenger traffic will be important for India’s climate targets.
RED brings over 60 years of experience and is a long-standing supplier to Indian Railways and private OEMs. It holds multiple Indian Railways product approvals and is the only domestic firm of its scale to receive Silver-grade International Railway Industry Standard (IRIS) certification for brake systems. Its Faridabad facility handles the design, assembly, and testing of a wide range of products.
The division’s current product portfolio includes brakes, couplers, suspension systems, and rubber components. It is also developing new offerings such as HVAC systems, electrical panels, vacuum evacuation systems, and automatic plug doors, which are in various stages of R&D.
Founded in 1995 and headquartered in Gurugram, Sona Comstar is a global supplier of automotive systems and components with facilities in India, the U.S., Serbia, Mexico, and China. Its offerings include precision forging, driveline and traction motor solutions, radar systems, and mobility software. The company serves a diversified customer base across regions, vehicle types, and technologies, with a particular focus on the electric vehicle market.