Escorts Ltd, a maker of critical railway components, today said it has inked a licencing and technology pact with a US-based firm 'Honeywell' for technical assistance on railway brake systems.

The company has entered into an exclusive licence and technology assistance agreement with Honeywell, a US-based firm, for receiving technology on friction materials for railway application, Escorts said in a statement.

Commenting on the development, Escorts Ltd CMD Rajan Nanda said in statement: "We are today investing in critical technology tasks to introduce technologically advanced products to satisfy the modernisation initiatives of the Indian Railways."

Escorts has been manufacturing and supplying various products to the Indian Railways and is one of the key players for supply of brake systems, including composite brake blocks.

"The strategic alliance between Escorts and Honeywell will position Escorts as a front-runner in the friction material business in India, besides providing a considerable technological edge over existing players," the company said.

The technical tie-up will help the Indian firm offer brake blocks and disc brake pads suited for high-speed trains in India as well as select export markets, it added.

"Today, Escorts enjoys a healthy share in the brake block braking business. Through this strategic tie-up, we would be able to introduce cutting edge technology which will further help us in substantially raising the bar and assume a dominant position," Escorts Railway Products Executive Director and Business Head Vikram Singhal said.

Escorts Group is present in various verticals, including agri-machinery, construction and material handling equipment, railway equipment and auto components.

Shares of Escorts were being quoted at Rs 72.80 on the BSE in afternoon trade, up 3.26% from their previous close.