June 29, 2013: The Chennai-based Rane Group has announced the merger of Rane Diecast Ltd (RDL) with Rane (Madras) Ltd (RML) effective April 1, 2013.

The board of directors of both the companies approved the merger in their respective meetings held on June 28. The exchange ratio will be one share of RML for every 30 shares of RDL. The merger is subject to regulatory, legal and other statutory approvals as may be required.

The Hyderabad-based RDL manufactures precision high pressure aluminium die castings mainly for export. The company recorded sales of Rs 65 crore for 2012-13 and has an employee strength of 118.

RML, a leader in steering and suspension products in India, posted sales of Rs 640 crore in 2012-13. The merger with RML is expected to help RDL’s business grow at a faster rate, leveraging RML’s customer base besides benefitting from other synergies in combining the operations of the two companies.

KARTHIK H