Rane (Madras) to Acquire Hindustan Composites’ Friction Business for Rs 370-Cr
Chennai, June 30 (TNT): Rane (Madras) Limited (RML) on Tuesday announced that it has entered into an agreement to acquire the friction business of Hindustan Composites Limited (HCL) on a slump sale basis for an enterprise value of ₹370 crore, subject to the terms of the agreement.
HCL’s friction business manufactures brake linings, brake pads, brake blocks, clutch facings and industrial friction products, catering to the automotive, railway, farm tractor and industrial sectors.
The business operates manufacturing facilities at Paithan and Bhandara in Maharashtra and has over six decades of industry experience, the company said in a release here.
As part of the transaction, Rane (Madras) will also acquire the “COMPO” brand, strengthening its presence across automotive segments, distributor networks, fleet operators and the aftermarket business.
The company said the acquisition would significantly expand its friction materials business, which currently serves passenger vehicles, two-wheelers, railways, aftermarket customers and export markets.
Upon completion of the transaction, the combined friction business is expected to generate annual revenue of more than ₹1,000 crore, positioning RML as a market leader across major segments.
Rane said the acquisition is expected to generate operational synergies through increased manufacturing scale, a wider distribution network and enhanced research and development capabilities, providing a platform for future business growth.
Harish Lakshman, Chairman, Rane Group said the acquisition would help create a market-leading friction solutions platform.
“By integrating these complementary businesses, we are uniquely positioned to address the evolving needs of India’s transportation sector while driving operational excellence and long-term value for our stakeholders,” he said.
The acquisition will be executed through a Business Transfer Agreement and remains subject to customary regulatory approvals and other closing conditions. The transaction is expected to be completed by the end of the second quarter.
TNT KS
