Rane (Madras) Ltd. has secured a definitive agreement to acquire the friction business of Hindustan Composites Ltd for INR 3.7 billion. The transaction establishes RML as a market leader across major domestic transit components segments, pushing its friction business revenue past INR 10 billion.
Rane (Madras) Ltd (RML) has signed a business transfer agreement to buy the friction division of Hindustan Composites Ltd on a slump-sale basis. According to official corporate disclosures, the transaction is valued at an enterprise worth of INR 3.7 billion and remains contingent on standard regulatory approvals. RML, a flagship automotive parts manufacturer under the Chennai-based Rane Group, specializes in steering, suspension, and braking systems for global and domestic markets. The transaction, which includes the acquisition of the established 'COMPO' brand, is slated for completion by the end of the second quarter of FY27.
This transaction significantly repositions the domestic automotive supply chain by combining two legacy component manufacturing operations. The acquired division brings an established infrastructure consisting of two manufacturing plants in Maharashtra and an asset portfolio that generated INR 3.15 billion in revenue alongside a profit before tax of INR 402.9 million in FY26. Integrating these operations directly impacts the automotive, railway, agricultural machinery, and industrial logistics sectors across India. By combining HCL’s expansive distribution network and deep manufacturing experience with RML's existing export capabilities, the combined entity will form a scaled friction solutions platform exceeding INR 10 billion in revenue.
For institutional investors and industry stakeholders, this buyout highlights accelerated consolidation within India's tier-1 automotive manufacturing landscape. The scaled operation is strategically positioned to leverage manufacturing efficiencies, broader aftermarket distribution channels, and combined research and development capabilities to address evolving technical requirements across heavy transport and commercial vehicle segments.
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