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Sona Comstar enters into Collaboration Agreement with IRP Nexus Group, Israel

Posted On : 2021-10-05 15:25:41( TIMEZONE : IST )

Sona Comstar enters into Collaboration Agreement with IRP Nexus Group, Israel

Sona BLW Precision Forgings Limited, through its wholly owned subsidiary company Sona Comstar eDrive Private Limited (Sona Comstar) has entered into a collaboration agreement with IRP Nexus Group Ltd., Israel to develop, manufacture, and supply a Magnet-less Drive Motor and the Matching Controller ("System") for Performance Two-wheelers and Three-wheelers for the Global Market. The agreement was signed on 30th September 2021 through the initiative of International Center for Entrepreneurship and Technology (iCreate), India's technology business incubation center.

As per the agreement, IRP will license its technology to Sona Comstar for manufacture of the System exclusively in India for the global market. The System envisages an innovative motor-plus-controller combination that does not use rare earth elements like neodymium, besides offering high efficiency and low cost to manufacturers of electric two- and three-wheelers. The Project is expected to mitigate the risk stemming from dependency on limited and unreliable sources, apart from ensuring a more environmentally friendly production process.

Mr. Sunjay Kapur, Chairman Sona Comstar, "this can be a game changer for the EV segment and may bring about a revolutionary change in the automobile industry. The EV industry is likely to benefit from reduced cost of production and will be insulated against supply chain disruptions of rare earth minerals required today for electric motors. Sona Comstar has been at the forefront of introducing cutting edge technology for the automotive segment and envisages that this development may bring about a positive shift towards quicker adoption of EV globally. We are confident that this new innovating technology will have wide scale implication and the potential towards environmental sustainability, besides reducing the cost of EV vehicles."

Mr. Vivek Vikram Singh, Managing Director and Group CEO, "this is truly innovative technology that may have a huge impact on the electric vehicle industry. This agreement will bring a new kind of technology not seen before in electric two and three wheelers, making them much more affordable. Electric Vehicles are the future of mobility and we at Sona Comstar are doing our utmost towards making the technology sustainable, affordable and environment friendly. We are at the forefront of exploring unconventional technology and newer solutions to bring positive change to the automobile sector."

Under the arrangement, Sona Comstar will pay onetime license fees and royalty to IRP Nexus during the term of the Agreement. The term of the Agreement is 7 (seven) years. Sona Comstar will have the exclusive rights to manufacture the System in India and non-exclusive rights to sell and distribute the System globally.

Shares of Sona BLW Precision Forgings Limited was last trading in BSE at Rs. 574 as compared to the previous close of Rs. 561.9. The total number of shares traded during the day was 80267 in over 2252 trades.

The stock hit an intraday high of Rs. 581.7 and intraday low of 564.85. The net turnover during the day was Rs. 46132917.

Source : Equity Bulls