Sunday | Jun 22 2025 | 03:03:10 PM
Sona BLW Precision Forgings (Sona Comstar), a global provider of mobility technology solutions, has acquired the Railway Equipment Division (RED) of Escorts Kubota. This acquisition was completed as a going concern on a slump sale basis. RED is a prominent supplier of critical components for railways, including brakes and suspension systems for various rolling stocks. RED reported revenues of Rs 913 crore and PBT of Rs 188 crore in FY25. Sona Comstar entered into an agreement with Escorts Kubota to acquire the railway business in October 2024.
On this acquisition, Vivek Vikram Singh, MD and Group CEO, Sona Comstar, said: “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.”
The Indian Railways market presents a compelling opportunity, driven by several long-term growth factors and significant entry barriers. India's extensive railway network, rapid urbanisation, and increasing investment in rail infrastructure will likely drive demand for technologically advanced and engineered components. This promising future of the railway industry is a reason for optimism and a strong business case for our acquisition.
Aligned with our strategic goal of promoting clean mobility, railways stand out as the most environmentally friendly mode of motorised transport. Increasing the railways' share in passenger and goods transportation is crucial for India to meet its net-zero emissions commitment. With the acquisition of RED, Sona Comstar is entering the railway component market and reinforcing its commitment to greener mobility solutions, a value we hold dear and will continue to uphold.
With over sixty years of experience in the railway component industry, RED is a long-term partner of Indian Railways and major private railway OEMs. It is one of the few companies to have multiple products approved by Indian Railways. RED is India's only domestic player of scale to have received Silver-grade International Railway Industry Standard (IRIS) certification for brake systems. Its manufacturing plant in Faridabad is equipped to design, develop, assemble, and test a wide range of products, showcasing its expertise and reliability in the industry.
RED has one of India's most extensive product portfolios amongst railway component suppliers. It is amongst the leaders in brakes, couplers, suspension systems, and friction and rubber products. Additionally, RED has a strong pipeline of new products, which includes HVAC systems, electrical control panels, vacuum evacuation systems, and automatic plug doors. RED has a long growth runway as new products move across the R&D chain.
