Rane Group gears up for growth

 

With the automobile industry starting to regain its momentum, Rane Group is eying double-digit growth in its topline over the next three years. 

The Chennai-based auto component house has chalked out a Rs.790-crore capex programme for this period, essentially intended to serve new order wins and support its growth plans.

The group’s vision is to maintain market leadership in its business segments, and achieve total sales of Rs.5,000 crore by 2017-18. 

The total capex — Rs.790 crore — has been planned by five entities, including three listed companies, of the group over the next three years.

Rane Madras LTD(RML) and Rane NSK Steering Systems Pvt. Ltd. will spend Rs.280 crore and Rs.200 crore, respectively

Rane Brake Linings(RBL) and Rane TRW Steering Systems will invest Rs.120 crore and Rs.110 crore, respectively.

Rane Engine Valves (REVL)will spend Rs.80 crore, mostly on R & D and new product developments.

Rane Group ended 2014-15 with a high single-digit growth of nine per cent in its total sales, ending the stagnation in its growth curve. Group’s net sales stood at Rs.2,921 crore as against Rs.2,687 crore in the previous year. Exports grew by eight per cent and accounted for 16 per cent of the topline. Its net profit more than doubled to Rs.113 crore from Rs.47 crore.