Indian auto component manufacturer plans INR500-600 cr investment over 3 years

India based auto components manufacturer Rane Group has announced plans to invest INR50-600 crore for expansion over the next three years. Group Chairman L Ganesh said in a recent interview that he expected the growth to scale 11-12 per this financial year from an annual average of 8-9 per cent over the last three years. The company, headquartered in Chennai, delivered a sales turnover of INR 3,610 crore ($550 million) in FY2015-2016.

Rane Group of companies caters to a wide cross-section of end users from the transportation industry. The clientele ranges from passenger car makers to large commercial vehicle manufacturers, both Indian as well as foreign brands with operations in India. They also cater for the manufacturers of farm tractors, two-wheelers, three-wheelers, railways and stationary engines.

The product portfolio of Rane (Madras) Group features steering and suspension systems, friction material, valve train components, occupant safety systems, die-cast products and aerospace-grade wiring harnesses. From 2015 onward, they have also begun manufacturing airbags.

The latest investment is aimed at expanding Rane Madras, Rane NSK (a joint venture with NSK, Japan) and on developing local supply chain to reduce dependence on imports. The capacity of Rane Madras will be doubled from the current 900,000 of steering gear per annum. Plus, its aluminum die-casting business would also look up.
With the emission reduction rules getting stricter worldwide and customers looking for more energy-efficient and light vehicles, the company is looking to speed up their technology upgrades to make their auto components much lighter, which they can achieve using more aluminium die-casting materials. Ganesh said they were open to joint ventures opportunities or technology partnerships that could address the newer emission norms.

According to the industry sources, there is also a plan for an auto component and aluminium die-casting manufacturing facility in Gujarat, to cater to Maruti Suzuki's new factory. Rane group currently has an assembling facility in the state.

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