Based in Delhi, I track developments both in corporate and economy sectors. In a career spanning since 2003, I track developments pertaining to M&A, PE/VC, startups and healthcare. Prior to joining Forbes, I have had stints with The Economic Times, Businessworld, India Today and Indian Express. I am also a guest faculty at The Indian Institute of Mass Communication (Dhenkenal) where I deliver part-time lectures to young aspiring journalists and teach them the practical side of reporting and editing. And when not working, I love to travel and spend time with my fawn Labrador.
Image: Mike Blake / Reuters (Image for illustrative purposes only)
Auto component maker Sona Group has signed an agreement to acquire 25 percent stake of its Japanese partner Mitsubishi Materials Corporation in Sona BLW Precision Forgings Limited, a joint venture that they forged 1995. The Sona Group held 75 percent stake in it.
Sona BLW, that has an annual turnover of around Rs 2,400 crore, is the flagship company of leading auto-component manufacturer Sona Group that is led by Sunjay Kapur. The acquisition of Mitsubishi Materials Corporation’s 25 percent stake will give Sona Group complete ownership of the joint venture company.
This is the second strategic transaction announced by the Sona Group under the leadership of Kapur who took over the reins of the Rs 4,500 crore Sona Group after the sudden demise of its founder Surinder Kapur in 2015.
“We are moving ahead rapidly to cement our global leadership position in the precision forging business,” said Kapur. This transaction is a step in a transformational phase in Sona’s journey. The privately-held Sona BLW Precision Forgings Limited plans to delve deeper into R&D and invest about Rs 300-Rs 400 crore over the next 3-4 years. It is looking to raise capital which is going to be a combination of part equity and part debt going forward.
“The global automotive industry is in a stage of transition fuelled by the demand for green mobility and e-mobility. There is more change expected to happen in the next ten years than has happened in the last fifty years in the automotive world,” said Kapur adding, “This wave of change opens up new frontiers for our industry to invest in automation, technology and skill upgradation to design future-ready products and components.”