Rane (Madras) Limited (RML) has completed the acquisition of the friction business of Hindustan Composites Limited (HCL) as a going concern on a slump sale basis. The transaction was completed on August 20, 2026, following the fulfilment of all conditions precedent and customary closing conditions.
Transaction Details
- Business Transfer Agreement Date: June 30, 2026 (referenced under letter no. RML/SE/025/2026-27)
- Completion Date: August 20, 2026
- Acquisition Type: Slump sale basis
- Business Acquired: Friction business of Hindustan Composites Limited
- Regulatory Reference: Disclosure made under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
Integration and Strategic Impact
- The acquired friction business will be integrated into RML's existing Brake Components Business
- The acquisition strengthens RML's established leadership position in the friction business
- Integration will proceed in a phased manner to maximize value for customers and stakeholders
- Expected to drive operational synergies by leveraging complementary strengths of both businesses
Financial Impact
- The acquisition is expected to be EPS accretive from the first year of operation (year one onwards)
- Expected to create further opportunities for revenue growth and operational synergies
- Financial impact quantification not provided in the disclosure
Company Background
Rane (Madras) Limited is part of the Rane Group of Companies, a leading auto component group based in Chennai. The company manufactures steering and suspension systems, brake components, engine components, and light metal casting components. Its products serve passenger vehicles, commercial vehicles, farm tractors, two-wheelers, three-wheelers, railways, and stationary engines.