Sona BLW Precision Forging Ltd. Blackstone, and Comstar Automotive Technologies Ltd., have announced the completion of a transaction that forges a partnership between the firms. This newly forged partnership will create an India centric, EV focused automotive technology platform and will be called Sona Comstar.
As part of this current transaction, Blackstone has purchased JM Financial's stake and further invested primary capital in Sona BLW to combine it with Comstar, creating the new combined platform - Sona Comstar.
Sunjay Kapur will be the Chairman of the newly combined entity Sona Comstar and any other businesses that will be acquired or developed under this platform. Kapur said: "I am delighted to partner with Blackstone and Comstar to create Sona Comstar. This transaction marks the amalgamation of mechanical & electrical capabilities of two world class companies. We will now offer our customers integrated technology products and solutions for Hybrid, EV as well as conventional powertrains. With our EV focused automotive technology platform, we will cater to the future of the automotive industry. Sona Comstar will be amongst the largest auto component companies of the country."
Amit Dixit, Senior Managing Director and Head of Blackstone India Private Equity, said, "The Indian automotive components space is attractive, both with India as a manufacturing hub for exports and as a domestic market. Sona has exceptional engineering capabilities, deep customer relationships, and a strong management team that has helped sustain its leadership position. The combination of Sona and Comstar is highly synergistic. There are opportunities to add on to this buy-and-build platform in this fragmented sector, especially in the current environment."
This platform allows Sona to expand its geographical footprint to China, U.S., Mexico and South India, while Comstar gets access to North & West India and European markets. Sona and Comstar have almost no overlap in customers, enabling both companies to benefit from being able to offer their products to each other's customers. The combined entity serves most major OEMs across passenger vehicles, commercial vehicles and off highway vehicles in USA, Europe, India and China.
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