Auto component maker Sona BLW Precision Forgings Ltd. (Sona Comstar) rallied by over 3 percent to Rs 496.5 in morning trade on July 21 after a new joint venture in China. The company has partnered with Hubei-based Jinnaite Machinery Co. Ltd. (JNT) to manufacture and supply driveline systems for automotive OEMs in China and global markets.
The joint venture, which is expected to become operational in the second half of FY26, will cater to both electric and internal combustion engine vehicle platforms. Sona Comstar will invest $12 million for a 60 percent stake and retain controlling interest, while JNT will hold the remaining 40 percent by bringing in $8 million worth of assets and operational business.
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While Sona Comstar will steer the venture strategically, JNT will manage the day-to-day operations. The collaboration is designed to marry Sona Comstar’s expertise in precision engineering with JNT’s advanced manufacturing capabilities and strong foothold in the Chinese market.
"This partnership marks an important step in our efforts to deepen our reach in high-growth Asian markets," said Vivek Vikram Singh, Managing Director & Group CEO of Sona Comstar.
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JNT operates a modern foundry backed by patented technology and serves a wide range of sectors including automotive, aviation, railway, and marine. Its client base spans across China, North America, Europe, and Japan.
The board of Sona Comstar has cleared the binding term sheet and authorised company executives to formalise the shareholder agreement and related documentation for the JV.
At about 9:55 am, shares of the company were trading at Rs 490, higher by 2.2 percent from the last close on the NSE. Sona BLW shares are down 18 percent since the beginning of the year.
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