Rane (Madras) acquires steering components business of Hical Group
The division’s major customers include Mando India, who in turn serves prominent Original Equipment Manufacturers (OEMs) such as Hyundai, Kia, Mahindra, etc.
Rane (Madras) Limited, a leading manufacturer of steering and suspension products and light metal casting components has recently announced that the Board of Directors of the company have approved the acquisition of the Steering Components Business (SCB) of Yagachi Technologies Private Limited (YTPL), a part of Hical Group.
Steering Components Business (SCB) manufactures steering and suspension components such as Inner Ball Joints (IBJ) and Outer Ball Joints (OBJ). The division’s major customers include Mando India, who in turn serves prominent Original Equipment Manufacturers (OEMs) such as Hyundai, Kia, Mahindra, etc. The company has a technical collaboration with a leading South Korean ball joint company. Their revenue for FY21 stood at Rs 35.5 crore.
To quote Harish Lakshman, Vice Chairman of Rane Group from a filing with the exchange, he said, “The acquisition of Steering Components Business of Yagachi will enhance RML’s leadership position and share in the domestic passenger vehicle market and provide an opportunity to enter export vehicle platforms to new geographies.”
Established in 1960, Rane (Madras) Limited (RML) is part of the Rane Group of companies which is a leading auto component group based out of Chennai. Rane (Madras) has two divisions namely Steering and Linkages Division (SLD) and Light Metal Casting India Division (LMCI). SLD manufactures mechanical steering gears, hydrostatic steering systems and steering and suspension linkage products. LMCI manufactures low porosity, high-quality light metal casting such as steering housings and engine case covers. Through its overseas subsidiary Rane Light Metal Castings Inc (RLMCA), Rane (Madras) manufactures high-pressure light metal casting components from its facility in Kentucky, USA.
The scrip of Rane (Madras) gained more than 2.5 per cent during early market hours on October 12, 2021, and recorded an intra-day high of Rs 426.35 per share.