Sona BLW Precision Forgings Limited announced key decisions following its Board of Directors meeting on February 10, 2025, including an amendment to its Business Transfer Agreement (BTA) with Escorts Kubota and the approval for the acquisition of a land parcel aimed at future expansion.
Amended Business Transfer Agreement with Escorts Kubota: The Board approved an amendment and restatement of the BTA originally signed for the acquisition of Escorts Kubota’s Railway Equipment Division (RED). As per the revised terms, the completion of the transaction is expected by May 1, 2025, earlier than the previously planned September 2025. A significant change includes the allocation of INR 1,600 crore into an escrow account, with funds released upon meeting key milestones.
Land Acquisition for Expansion: The company has finalized the purchase of a 33,423-square-yard (27,945.89 square meters) plot in Faridabad, Haryana, adjacent to the RED business. The acquisition cost is INR 110 crore, with plans to utilize the land for future strategic expansion. Currently used by Escorts Kubota’s Spare Parts Division (SPD), the land will be handed over after Escorts relocates its SPD operations.
Rationale and Future Plans: These strategic moves are expected to support the company’s ongoing expansion and operational efficiency, particularly in key segments like railway equipment. The land acquisition aligns with long-term growth opportunities and positions Sona BLW to achieve its business development objectives.
