Automotive component manufacturer Rane (Madras) Limited has signed a business transfer agreement to acquire the friction business of Hindustan Composites Limited, the company announced on Tuesday. The transaction will be executed as a going concern on a slump sale basis for an enterprise value of Rs 370 crore, subject to finalized contractual terms and customary closing conditions.
The target business operates two manufacturing plants located in Paithan and Bhandara, Maharashtra, and possesses over 60 years of manufacturing experience across the automotive, railway, agricultural tractor, and industrial segments. Its manufacturing portfolio includes products such as brake pads, brake linings, clutch facings, and brake blocks, supported by localized research and development and a national distribution network.
The acquisition also includes the transfer of the "COMPO" brand name, which is expected to extend the purchasing company's market access across distributor networks, fleet operators, and secondary aftermarket channels. Prior to the agreement, Rane (Madras) Limited maintained an existing friction component business across passenger vehicles, two-wheelers, and railways that generated more than Rs 700 crore in aggregate revenue, including exports. Combining the two operations will scale the company's total friction materials business beyond the Rs 1,000 crore mark.
Harish Lakshman, Chairman of the Rane Group, stated that the integration of the complementary operations is intended to build a scaled friction solutions platform to service the domestic transportation sector while creating manufacturing and supply efficiencies. The transaction requires standard regulatory approvals and is projected by the company to reach full financial and operational closure by the end of the second quarter of the current fiscal year.