Sona BLW Precision Forgings Ltd has announced amendments to its business transfer agreement (BTA) with Escorts Kubota, accelerating the acquisition of the latter’s Railway Equipment Division (RED). The revised deal, approved by Sona BLW’s board, moves the expected completion date from September 2025 to May 1, 2025.
In a regulatory filing, the company confirmed that the updated agreement includes revised timelines for securing necessary business registrations and adjusted payment terms. As part of the new structure, ₹1,600 crore of the total transaction value will be held in escrow and released in phases upon achieving specific milestones.
In a related development, Sona BLW’s board also greenlit the purchase of a 33,423-square-yard industrial plot in Sector 24, Faridabad, from Escorts Kubota for ₹110 crore. The land, currently occupied by Escorts Kubota’s spare parts division, is adjacent to the RED business site and will serve as a strategic asset for Sona BLW’s future expansion.
Escorts Kubota has announced plans to relocate its spare parts operations before the land transfer is finalized. The plot, located at industrial plot no. 115 and half of plot no. 114 in Faridabad, Haryana, is expected to play a key role in supporting Sona BLW’s growth initiatives.
About Sona BLW Precision Forgings Ltd
Sona BLW Precision Forgings is a globally recognized manufacturer of automotive components, specializing in high-precision forged and machined products. Headquartered in India, the company serves a diverse range of sectors, including passenger vehicles, commercial vehicles, electric vehicles (EVs), and off-highway vehicles.
Known for its expertise in differential assemblies, gears, axles, and e-mobility solutions, Sona BLW is a critical player in the global automotive supply chain. With a strong emphasis on innovation, sustainability, and advanced manufacturing technologies, the company continues to strengthen its position as a trusted supplier to major OEMs and tier-1 suppliers worldwide.
The revised agreement and land acquisition underscore Sona BLW’s commitment to expanding its capabilities and supporting the automotive industry’s transition toward electrification and advanced manufacturing.
