Sona BLW Precision Forgings Ltd (Sona Comstar) conducted its Annual General Meeting (AGM) as scheduled, despite a request from Rani Kapur, wife of the company's founder, to postpone the event. This decision has brought to light a family dispute over control and raised questions about the company's governance.

Background

Rani Kapur had appealed for the deferment of the AGM following the death of her son Sunjay Kapur on June 12, who was the company's chairman and non-executive director. She accused certain individuals of attempting to seize control of the family's legacy during their time of grief.

Company's Stance

Sona Comstar clarified that Rani Kapur has not been a shareholder since 2019, making her request legally invalid. The company's ownership structure is as follows:

Key Developments

• Priya Sachdev Kapur, Sunjay Kapur's wife, was appointed as Additional Non-Executive Director based on Aureus Investments' nomination.
• Rani Kapur claims to be the majority shareholder of the Sona Group under her husband Surinder Kapur's will.
• She alleges that she did not authorize anyone to act on her behalf.

Implications and Future Outlook

This situation raises several important questions:

• How will the company address the allegations of unauthorized board appointments?
• What impact might this dispute have on Sona Comstar's corporate governance and investor confidence?
• Could this lead to potential legal challenges or shareholder disputes in the future?

As this story continues to unfold, stakeholders and industry observers will be closely watching for any further developments and the company's official response to these serious allegations.

Sona BLW Precision Forgings Ltd. (Sona Comstar), a global leader in mobility technology solutions, has made a significant move to expand its presence in the world's largest electric vehicle (EV) market. The company has signed a binding term sheet with Jinnaite Machinery Co., Ltd (JNT) to establish a joint venture (JV) in China, aiming to manufacture and supply driveline systems and components to automotive OEMs in China and globally.

Key Details of the Joint Venture

• Sona Comstar will invest $12.00 million and hold a 60% equity stake in the JV.
• JNT will contribute $8.00 million in assets and business, holding the remaining 40% stake.
• The JV is expected to commence operations in the second half of the current financial year.
• The new entity will leverage Sona Comstar's expertise in driveline system design, precision forging, and precision machining, combined with JNT's proficiency in casting and molding.

Strategic Rationale

This strategic partnership aligns with Sona Comstar's new focus on expanding into eastern world markets, particularly in the rapidly growing Asian EV sector. China, being the world's largest automotive and EV market, presents a significant opportunity for the company.

Mr. Vivek Vikram Singh, MD & Group CEO of Sona Comstar, commented on the development: "This joint venture marks a significant step in our strategy to expand into the rapidly growing Asian markets. As the largest electric vehicle market in the world and a leader in EV technologies, China offers tremendous opportunities for innovation and growth."

Chinese EV Market Potential

The Chinese EV market has shown remarkable growth:

• Annual EV sales in China reached 11 million, accounting for two-thirds of global EV sales.
• Chinese OEMs dominated 76% of global EV sales last year.
• Exports of Chinese vehicles increased from 1 million in 2020 to over 6 million in 2024.

About the Partners

Sona Comstar

• A leading global supplier of driveline solutions for various automotive segments.
• The largest supplier of differential assemblies for battery electric vehicles (BEVs) in North America.
• Among the top suppliers in Europe.

Jinnaite Machinery Co., Ltd. (JNT)

• Operates a world-class foundry using patented technology for complex castings and molds.
• Holds 63 patents and 36 proprietary technologies.
• Actively involved in formulating Chinese national standards.
• Strong customer base in automotive, off-highway, and railway sectors.

Future Outlook

With a robust order book already in place, the joint venture is well-positioned for strong growth. By combining Sona Comstar's global expertise with JNT's local knowledge and established relationships, the new entity aims to become a key supplier of driveline solutions for electric vehicles in the region.

This strategic move not only strengthens Sona Comstar's position in the global EV supply chain but also provides a solid foundation for future growth in the world's most dynamic EV market.