CHENNAI: Component major Sona Comstar is expanding its business focus from pure play automobiles to transportation and mobility . The company, which has acquired Escorts Kubota’s railway division business for Rs 1,600 crore, is also looking for more acquisitions and has lined up a war chest for the purpose.
Speaking to TOI, Vivek Vikram Singh , MD & group CEO of Sona Comstar, said: “We have changed our vision statement from auto technology to mobility. We are looking at any device that transports human beings or goods, and we will try to do parts for everything, not just automotive. It could be aviation, drones, space, bots, ATVs and robotics,” he explained.
The move was more than derisking, he added.
“Sona Comstar has grown more than ten times in nine years largely focusing on automotive for the better part of that time. We kept growing at a certain pace. So, we needed to expand the canvas and play in a larger area,” he said.
The company already enjoys significant market share globally in its main products (8% in differential gears in EV, 12% to 13% in differential assembly and 4.5% in starter motors). “If we continue just these three areas, eventually we will run out of space to grow. So, we decided to expand the whole space and also add verticals like sensors and software capability,” Singh said.
Currently the revenue share of the company from battery electric vehicles is at 36% with BEV revenue seeing 53% growth YoY. Another 21% of Sona Comstar revenue comes from hybrid and micro hybrid. “The rest is either power source agnostic and 9% is engine or ICE related,” he said.
EV programmes contributed 78% to the company's net order book of Rs 23,100 crore as of Sept 30, 2024.
The company is also looking for more transport/mobility acquisitions. Sona Comstar raised Rs 2,400 crore via a QIP and has inhouse cash with which it will “continue to explore,” he added. But the management is clear it will not touch anything that is only ICE related.
“Also, whatever we acquire we should be able to take market leadership becoming among the top four in that product category,” he explained. Thirdly the acquisition should add to the company’s “diversification and derisking strategy rather than concentrating it even further” he said.
And finally, Sona Comstar will focus on “more cleaner types of transport”.
Sona Comstar saw a 16% increase in Q2 PAT at Rs 144 crore and a 17% YoY growth in revenue to Rs 925 crore.
Speaking to TOI, Vivek Vikram Singh , MD & group CEO of Sona Comstar, said: “We have changed our vision statement from auto technology to mobility. We are looking at any device that transports human beings or goods, and we will try to do parts for everything, not just automotive. It could be aviation, drones, space, bots, ATVs and robotics,” he explained.
The move was more than derisking, he added.
“Sona Comstar has grown more than ten times in nine years largely focusing on automotive for the better part of that time. We kept growing at a certain pace. So, we needed to expand the canvas and play in a larger area,” he said.
The company already enjoys significant market share globally in its main products (8% in differential gears in EV, 12% to 13% in differential assembly and 4.5% in starter motors). “If we continue just these three areas, eventually we will run out of space to grow. So, we decided to expand the whole space and also add verticals like sensors and software capability,” Singh said.
Currently the revenue share of the company from battery electric vehicles is at 36% with BEV revenue seeing 53% growth YoY. Another 21% of Sona Comstar revenue comes from hybrid and micro hybrid. “The rest is either power source agnostic and 9% is engine or ICE related,” he said.
EV programmes contributed 78% to the company's net order book of Rs 23,100 crore as of Sept 30, 2024.
The company is also looking for more transport/mobility acquisitions. Sona Comstar raised Rs 2,400 crore via a QIP and has inhouse cash with which it will “continue to explore,” he added. But the management is clear it will not touch anything that is only ICE related.
“Also, whatever we acquire we should be able to take market leadership becoming among the top four in that product category,” he explained. Thirdly the acquisition should add to the company’s “diversification and derisking strategy rather than concentrating it even further” he said.
And finally, Sona Comstar will focus on “more cleaner types of transport”.
Sona Comstar saw a 16% increase in Q2 PAT at Rs 144 crore and a 17% YoY growth in revenue to Rs 925 crore.
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