Sona BLW Precision Forgings Ltd (Sona Comstar) has completed the takeover of the Railway Equipment Division (RED) from Escorts Kubota Limited. The deal was carried out as a slump sale and was first disclosed in October 2024. RED makes key railway parts such as brake systems and suspension components for rolling stock. In FY25, it posted revenue of ₹913 crore and profit before tax of ₹188 crore.
According to Sona Comstar’s Managing Director and Group CEO, Vivek Vikram Singh, the acquisition supports the company’s plan to grow in transport-related sectors beyond automotive. “It strengthens our position in clean transport systems and opens up new business lines,” he said.
Mr Singh noted that India’s rail industry is set for growth, helped by network expansion, rising urban populations, and continued investment in public infrastructure. These trends are expected to drive up demand for advanced, engineered components.
He also highlighted the role of rail in supporting low-emission transport, given its efficiency and lower environmental impact compared to other modes. Expanding rail usage, Mr Singh said, is key to meeting national climate goals.
RED has been supplying parts to Indian Railways and private train makers for more than 60 years. It holds several approvals from Indian Railways and is the only major domestic manufacturer to earn Silver-grade IRIS certification for its brake systems. Its facility in Faridabad handles product development, assembly, and testing.
Current products include brakes, couplers, suspension systems, and rubber-based components. The unit is also working on new technologies such as HVAC systems, electrical control panels, vacuum evacuation units, and automatic plug doors, many of which are still under development.
Sona Comstar, founded in 1995 and based in Gurugram, manufactures automotive components and systems. It operates in India, the U.S., Mexico, Serbia, and China, supplying customers in multiple regions and segments. The company focuses on products for electric vehicles and also develops software and radar-based technologies for mobility applications.
