Escorts Kubota Sells Railway Equipment Business to Sona Comstar for Rs 1,600 Crore

Escorts Kubota Ltd is set to sell its railway equipment business division to Sona BLW Precision Forgings Ltd for Rs 1,600 crore. This move aligns with EKL's strategy to focus on agribusiness and construction equipment. Sona Comstar will enhance its clean mobility offerings with this acquisition.

Escorts Kubota Ltd announced the sale of its railway equipment business division to Sona BLW Precision Forgings Ltd for Rs 1,600 crore, marking a significant shift in its strategic focus.

The transaction, completed under a business transfer agreement, reflects EKL's intention to concentrate on its core agri and construction equipment sectors. The company views this as a move to streamline operations and bolster efficiency and scale.

Sona Comstar's acquisition aligns with its objective to broaden its mobility sector reach, augmenting its clean mobility product range by including railway components.

(With inputs from agencies.)