NEW DELHI: Auto parts supplier Sonaa Group plans to buy Japanese products, with its partner Mitsubishi Mining holding a 25 percent stake in joint venture Sonaa BLW Precision Forgings, a person closely involved in the deal discussions said.

Sona BLW is the flagship company with an annual turnover of around Rs 25 billion. The Sunjay Kapur-led Sona Group has a capitalization of Rs 35 billion. The deal could be finalized as early as this week. The person did not disclose current financial terms but said the valuation could be well below market value as Mitsubishi Mines has decided to exit the forging business and will look to sell its stake immediately. For Sona, full ownership of Sonaa BLW is part of the group’s strategy to focus on its forging business. Last month, the group agreed about 455 listed company Sona of Sona, 25.1% of Koyo Steering Systems for Rs 100 million to sell shares Corp to Japan’s JTEKT as a partner and decided to exit the steering business.

“The group has decided to focus on the forging business, which it believes has a competitive advantage and the ability to expand. Consolidation of Sonaa is underway. BLW Following ownership, we will focus on strengthening our position in the domestic and global markets.” The person asked not to be named.

Sona BLW produces patented technology for heating. Secondary. The company has about 20% of the global market share for these parts and supplies its products to major automakers.

Sona Group executives declined to comment. A Mitsubishi spokesman could not be reached for comment.

Last month announced the acquisition of Sonaa Koyo Steering Managing Director Kapurr outlined a four-year investment of Rs 400-500 crore in the Indian forging business plans to double the revenue of the local business in five years. The amount reaches 1,500, amounting to 150. billion rupees. The German subsidiary has a turnover of just over Rs 1600 crore.

Kapoor said, “Our bigger business is actually the precision forging business, mainly gear manufacturing. We think we need to invest in more businesses globally.”