Sona BLW Precision Forgings Ltd announced on February 10, 2025, that it has amended its business transfer agreement (BTA) with Escorts Kubota regarding the acquisition of the Railway Equipment Division (RED). The revised deal brings forward the expected completion date from September 2025 to May 1, 2025. The company stated in a regulatory filing that the board approved the changes during its meeting.
The amendments to the agreement include updated timelines for obtaining necessary business registrations and adjusted payment terms. Under the new structure, ₹1,600 crore of the total transaction value will be held in escrow and released in stages upon meeting certain milestones.
In addition to the revised BTA, the board also approved the purchase of a 33,423-square-yard industrial plot in Sector 24, Faridabad, from Escorts Kubota for ₹110 crore. The land, currently home to Escorts Kubota’s spare parts division, is located next to the RED business site and will be used to support Sona BLW’s future growth.
Escorts Kubota plans to relocate its spare parts operations prior to the completion of the land transfer. The plot is located at industrial plot no. 115 and half of plot no. 114 in Faridabad, Haryana, and is intended to be a strategic asset for Sona BLW’s expansion plans.
Sona BLW Precision Forgings is a leading global manufacturer of automotive components, specializing in highly engineered, mission-critical precision forged and machined products. Headquartered in India, the company supplies to a wide range of automotive sectors, including passenger vehicles, commercial vehicles, electric vehicles, and off-highway vehicles.
Sona BLW is renowned for its expertise in producing differential assemblies, gears, axles, and e-mobility solutions, making it a crucial supplier in the global shift toward electrification. With a strong focus on innovation, sustainability, and advanced manufacturing technologies, Sona BLW continues to play a pivotal role in the global automotive supply chain, serving major OEMs and tier-1 suppliers worldwide.
