Rane (Madras)Ltd(RML ), on Tuesday, participated in an arrangement with the Mumbai-based Hindustan Composites Ltd (HCL) to get its friction company, as going issue, on slump-sale basis for a business worth of 370 crore.
HCL’s friction organization is a prominent provider of friction products, with over 6 years of experience throughout the automobile, train, farm tractor and commercial sectors. Its item portfolio consists of brake linings, brake pads, brake obstructs, clutch confrontings, and commercial friction items, backed by internal R&D and a pan-India circulation network. It runs 2 making centers in Paithan and Bhandara, Maharashtra. Based upon the most recent audited monetary outcomes, Friction Business reported earnings of 315.04 crore and PBT of 40.29 crore in FY26, stated a release.
As part of the acquisition, RML likewise gets the brand name “COMPO”, which enhances Rane’s management position by broadening its reach throughout sections, suppliers, fleet operators and aftermarket channels.
Strategic reasoning
Structure on RML’s recognized management in the friction service– covering guest cars, two-wheelers, aftermarket and trains, along with an export organization aggregating income of over 700 crore– this deal marks a transformative turning point. Upon conclusion, the acquisition will develop a 1,000+ crore friction products organization, developing RML as the marketplace leader throughout all significant sectors, stated the release.
The deal is anticipated to open considerable functional synergies through production scale, an expanded circulation network and improved R&D abilities. The broadened footprint is anticipated to function as a crucial launchpad for future company growth.
Talking about the acquisition, Harish Lakshman, Chairman, Rane Group, stated: “This acquisition leverages Rane’s capability to produce a market-leading friction services platform. By incorporating these complementary services, we are distinctively placed to deal with the progressing requirements of India’s transport requires while driving functional quality and long-lasting worth for our stakeholders.”
The deal, carried out through a Business Transfer Agreement, stays based on popular regulative approvals and closing conditions. It is anticipated to be finished by the end of the 2nd quarter, the release stated.
Released on June 30, 2026
