Sona BLW Precision Forgings Ltd

About the Company

Sona BLW Precision Forgings Limited is one of India's leading automotive technology companies, designing, manufacturing and supplying highly engineered, mission critical automotive systems and components such as differential assemblies, differential gears, conventional and micro-hybrid starter motors, BSG systems, EV traction motors (BLDC and PMSM) and motor control units to automotive OEMs across US, Europe, India and China, for both electrified and non-electrified powertrain segments. It has nine manufacturing and assembly facilities across India, China, Mexico and USA, of which six are located in India. It is a technology and innovation driven company. With a strong focus on research and development, it develops mechanical and electrical hardware systems, components as well as base and application software solutions, to meet the evolving demands of its customers.

Industry Overview

According to the Ricardo Report, the overall Global Light Vehicle production volumes are expected to reach approximately 92 million in calendar year 2025 as compared to approximately 70 million in calendar year 2020, with China, Europe and North America accounting for approximately 70% of the global production volumes. Driven by stringent emission and corporate average fuel economy (CAFE) regulations globally, pure ICE vehicles will no longer be a viable propulsion choice for passenger vehicles according to Ricardo. Depending on the severity of CAFE norms across the regions, OEMs have a choice of micro (12v start-stop), mild/full hybrids, BEVs (Battery Electric Vehicles) and FCEVs (Fuel Cell Electric Vehicles). As fuel economy norms become more stringent over time and countries introduce legislation to ban fossil fuel vehicles, the proportion of BEVs will increase. In calendar year 2025, Ricardo expects BEVs to account for approximately 12% (i.e., approximately 11 million units) of the global production. Among the available propulsion technologies, BEV has been the fastest growing at CAGR of approximately 46% between calendar years 2015 to 2020 and is expected to experience an increased penetration, growing at a CAGR of approximately 36% between calendar years 2020 to 2025. According to the Ricardo Report, globally, the electrification agenda will be driven by the passenger vehicle segment and according to the CRISIL Report, electrification in India will be led by three-wheelers and two-wheelers, with electric two-wheelers having a CAGR of 70% to 74% between Fiscals 2021 to 2026.

Company History

Sona BLW Precision Forgings Limited was originally incorporated as "Sona Okegawa Precision Forgings Limited" at New Delhi as a public limited company under the Companies Act, 1956, pursuant to a certificate of incorporation dated October 27, 1995, issued by the Registrar of Companies, NCT of Delhi and Haryana at New Delhi ("RoC") and commenced operations pursuant to the certificate of commencement of business dated November 16, 1995 issued by the RoC. The name of the Company was changed to "Sona BLW Precision Forgings Limited" as approved by our Shareholders by way of a resolution dated June 28, 2013 and a fresh certificate of incorporation dated July 23, 2013, consequent upon change of name was issued by the RoC.

Products & Services

• Leading Automotive Technology Company, designing, manufacturing and supplying highly engineered mission critical automotive systems and components such as differential assemblies, differential gears, conventional and micro-hybrid starter motors,
• BSG systems, EV traction motors and motor control units to automotive OEMs across US, Europe, India and China, for both electrified and non electrified powertrain segments

Growth Strategy

• "Electrification" - capturing market opportunity in the growing EV space
• Increasing market share globally
• Continue to focus on R&D to develop new and innovative system and components