Indian auto parts manufacturer will invest $12 million for 60% stake in new company focused on driveline systems production.
21 Jul 2025 | 384 Views | By Angitha Suresh
Sona BLW Precision Forgings Ltd., known as Sona Comstar, announced on July 20, 2025, that its board of directors approved the formation of a joint venture in China with Jinnaite Machinery Co. Ltd. The partnership will manufacture and supply driveline systems and components to automotive original equipment manufacturers in China ...
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Sona BLW Precision Forgings Ltd., known as Sona Comstar, announced on July 20, 2025, that its board of directors approved the formation of a joint venture in China with Jinnaite Machinery Co. Ltd. The partnership will manufacture and supply driveline systems and components to automotive original equipment manufacturers in China and globally.
Under the agreement, Sona Comstar or its wholly owned subsidiary will contribute $12 million and hold a 60% equity stake in the joint venture. Jinnaite Machinery will contribute $8 million in assets and business operations for the remaining 40% stake. The joint venture is expected to begin operations in the second half of the current financial year.
Jinnaite Machinery operates a foundry that manufactures complex castings and molds using patented technology. The Chinese company serves customers across automotive, off-highway, aviation, railway, and marine sectors, including Chinese automotive manufacturers and North American, European, and Japanese original equipment manufacturers.
The collaboration combines Sona Comstar's expertise in driveline system design, precision forging, and precision machining with Jinnaite Machinery's proficiency in casting and molding. The partnership also leverages Jinnaite's established customer relationships in China, supplier connections, and knowledge of local regulations.
Sona Comstar, listed on the BSE and NSE stock exchanges with codes 543300 and SONACOMS respectively, specializes in precision forging and automotive components. The company has operations in India with facilities in Gurugram, Haryana, and Manesar, Haryana.
The joint venture aligns with Sona Comstar's strategy to expand its presence in Asian markets, particularly in India, China, Japan, and South Korea. The board meeting that approved the joint venture was held on July 20, 2025, from 2:00 p.m. to 3:06 p.m. IST.
The companies have signed a binding term sheet, and Sona Comstar's board authorized company officials to finalize the shareholders' agreement and other required documentation. The agreement is subject to completion of conditions precedent.
Jinnaite Machinery is incorporated in the People's Republic of China with its registered address at Gucheng Development Zone, Hubei Province. The joint venture will be incorporated in China as an international entity.