CHENNAI: Rane (Madras) Limited (RML), on Tuesday entered into an agreement with Hindustan Composites Limited (HCL) to acquire the Friction Business, as going concern, on slump sale basis for an enterprise value of Rs 370 crore, subject to the terms of the agreement.
Based on the latest audited financial results, friction business reported revenue of the Maharashtra-based entity was Rs 315.04 crore and PBT of Rs 40.29 crore in FY26.
As part of the acquisition, RML also acquires the brand 'COMPO', which reinforces Rane’s leadership position by expanding its reach across segments, distributors, fleet operators and aftermarket channels.
Building on RML’s established leadership in the friction business spanning passenger vehicles, two-wheelers, aftermarket and railways, alongside an export business aggregating revenue of over Rs 700 crore this transaction marks a transformative milestone.
Upon completion, the acquisition will create a Rs 1,000-plus crore friction materials business, establishing RML as the market leader across all major segments.
Harish Lakshman, chairman, Rane Group said: "This acquisition leverages Rane’s ability to create a market-leading friction solutions platform.
By integrating these complementary businesses, we are uniquely positioned to address the evolving needs of India’s transportation needs while driving operational excellence and long-term value for our stakeholders."
The transaction, executed through a business transfer agreement, is expected to be completed by the end of the Q2.