Nisshinbo ups stake in Rane Brake Linings
Nisshinbo Brake, Japan’s leading manufacturer of friction for automotive brakes and anti-lock brake systems, has increased its stake in Rane Brake Linings (RBL), part of the Chennai-based auto component house Rane Group, to 20 percent from the existing
Nisshinbo, a technology partner of Rane Brake since 1996, has invested about Rs 4.5 crore to pick up this additional stake. “The raise in stake by the Japanese firm will help Rane for further advancement in research and development to address the future technology requirements,” a company statement said.
Also, for the first quarter ended June 30, RBL reported a net profit of Rs 2.66 crore when compared with Rs 80 lakh in the corresponding period of the previous fiscal. Net sales stood at Rs 52.94 crore as against Rs 49.93 crore a year ago. It posted positive growth in domestic original equipment and the replacement business during the quarter. The company has secured its shareholders’ nod to borrow up to Rs 100 crore.
Meanwhile, RBL has commenced supply of brake linings to Mahindra Navistar, General Motors’ Tavera and Maruti’s Ritz.
RBL's new plant at Tiruchirapalli, Tamil Nadu, has commenced production and reached 90 percent of its phase I capacity. The plant caters to Maruti Suzuki and other OEMs such as Tata Motors, Toyota, Honda and Nissan. Plant capacity will be scaled up to 10 million units by 2012-13.
Meanwhile, Rane TRW Steering Systems, also part of the Rane Group Company, has commenced supply of rack and pinion steering gear to Piaggio, Mahindra SCV and the Tata Nano. It has also started supply of lower control arms to the Nano.