en.Wedoany.com Reported - Rane (Madras) Limited, India, has recently signed a business transfer agreement to acquire the friction business of Hindustan Composites Limited at an enterprise value of INR 37 billion. The transaction will be conducted on a going-concern basis through a slump sale, subject to regulatory approvals, final contractual arrangements, and customary closing conditions.

This is a key step in Rane's strategy to strengthen its competitiveness in the friction materials sector. Upon completion of the acquisition, the combined business is expected to generate revenue exceeding INR 100 billion, making it one of the larger players in this field in India.

The acquired business has manufacturing facilities in Paithan and Bhandara, Maharashtra, and has accumulated over 60 years of experience in friction material manufacturing. Its customer base spans multiple sectors including automotive, railways, agricultural tractors, and industrial applications.

The product portfolio of the acquired business includes brake pads, brake linings, clutch facings, and brake blocks, supported by in-house R&D capabilities and a nationwide distribution network.

A key component of the transaction is the transfer of the COMPO brand, which has a long-standing presence in the Indian market. The introduction of this brand is expected to strengthen Rane's influence among aftermarket channels, distributors, and fleet operators, while helping the company expand its customer base across multiple end-use applications.

Rane (Madras) already holds a significant position in the friction products market, primarily supplying components for passenger vehicles, two-wheelers, and railway applications. The company's existing friction business generates revenue exceeding INR 70 billion, including exports.

Upon completion of the acquisition, the combined business revenue is expected to surpass INR 100 billion, significantly enhancing Rane's scale in the domestic friction materials market.

Harish Lakshman, Chairman of the Rane Group, stated that this transaction integrates complementary businesses and is expected to create a larger friction solutions platform for India's transportation industry. He noted that the integration will also bring manufacturing efficiency improvements and strengthen supply chain capabilities.

The acquisition comes at a time of sustained growth in demand for locally manufactured automotive components, driven by rising vehicle production, aftermarket demand, and infrastructure investments. By integrating manufacturing capabilities, product portfolios, and distribution advantages, Rane aims to enhance its competitiveness in both original equipment and replacement markets.

The company expects the transaction to be completed by the end of the second quarter of the current fiscal year, subject to meeting all regulatory and contractual requirements, with full financial and operational closure.