Sona BLW Precision Forgings (Sona Comstar), a manufacturer of precision-forged and machined components, has completed the acquisition of the Railway Equipment Division (RED) of Escorts Kubota as a going concern on a slump sale basis. RED reported revenue of INR 9.13 billion and profit before tax of INR 1.88 billion for FY25.
The agreement to acquire the railway business was signed in October 2024. RED supplies components such as brakes and suspension systems for rolling stock and has been a long-term partner of Indian Railways and private railway OEMs. Its manufacturing plant in Faridabad is equipped to design, develop, assemble, and test a wide range of railway components.
“This acquisition aligns with our vision statement as we expand into the broader mobility sector. With this acquisition, we have added a market-leading railway component business and enhanced our clean mobility product offerings. The railway industry presents long-term growth opportunities, and we see significant potential to broaden our product range by incorporating advanced technology and engineered products,” said Vivek Vikram Singh, MD and Group CEO, Sona Comstar.
RED holds Silver-grade International Railway Industry Standard (IRIS) certification for brake systems and has one of the most extensive product portfolios among domestic railway component suppliers. It currently supplies brakes, couplers, suspension systems, friction and rubber products, and is developing new products including HVAC systems, electrical control panels, vacuum evacuation systems, and automatic plug doors.
Sona Comstar is an automotive technology company that designs and manufactures precision-forged and machined components, as well as electric vehicle traction motors and controllers. Its customers include automotive OEMs across passenger vehicles, commercial vehicles, and electric mobility segments.