Rane (Madras) to Acquire Hindustan Composites’ Friction Business for ₹370 Crore

Rane (Madras) Limited will acquire the friction business of Hindustan Composites Limited in a ₹370 crore slump sale deal, creating a friction materials platform with over ₹1,000 crore revenue potential.

Rane (Madras) Limited, part of the Chennai-based Rane Group, has entered into an agreement with Hindustan Composites Limited to acquire its friction business as a going concern on a slump sale basis. The transaction has been valued at an enterprise value of ₹370 crore and remains subject to customary regulatory approvals and closing conditions. The deal is expected to be completed by the end of the second quarter.

The acquisition is strategically important for Rane as it strengthens its presence in the friction materials space, covering products such as brake linings, brake pads, brake blocks, clutch facings and industrial friction products. Hindustan Composites’ friction business has over six decades of experience and caters to automotive, railway, farm tractor and industrial sectors.

As part of the transaction, Rane will also acquire the well-known “COMPO” brand. This is expected to enhance Rane’s reach across distributors, fleet operators and aftermarket channels, while also improving its positioning in replacement and institutional sales.

Hindustan Composites Friction Business: Key Highlights

Hindustan Composites’ friction business operates two manufacturing facilities located at Paithan and Bhandara in Maharashtra. Based on the latest audited financials, the business reported revenue of ₹315.04 crore and profit before tax of ₹40.29 crore in FY26.

The portfolio includes critical braking and clutch components used across passenger vehicles, commercial vehicles, two-wheelers, tractors, railways and industrial applications. The business also has in-house R&D capabilities and a pan-India distribution network, making it a complementary fit for Rane’s existing friction materials operations.

Deal to Create a ₹1,000+ Crore Friction Materials Business

Rane already has an established presence in the friction business across passenger vehicles, two-wheelers, aftermarket, railways and exports. According to the company, its existing friction business aggregates revenue of over ₹700 crore. With the addition of Hindustan Composites’ friction business, the combined platform is expected to cross ₹1,000 crore in revenue, making Rane one of India’s leading friction solutions companies.

The acquisition is expected to deliver benefits from larger manufacturing scale, broader distribution reach and enhanced R&D strength. It will also give Rane a stronger foothold in the aftermarket, where brand recall, channel depth and product availability play a major role in business growth.

Why This Acquisition Matters

The Indian automotive components industry is seeing increasing consolidation as suppliers look to build scale, improve cost efficiency and serve a broader set of OEM and aftermarket customers. Friction materials remain a critical safety-linked component category, used in braking and clutch systems across vehicles and industrial equipment.

For Rane, the acquisition helps expand both product and customer coverage. For Hindustan Composites, the transaction unlocks value from a mature friction business with established manufacturing and brand assets.

The addition of COMPO also gives Rane a stronger consumer-facing and trade-facing brand in the replacement market. This could be particularly relevant in segments such as commercial vehicles, tractors, two-wheelers and fleet applications, where aftermarket demand remains steady.

Management Comment

Commenting on the acquisition, Harish Lakshman, Chairman, Rane Group, said the deal leverages Rane’s ability to create a market-leading friction solutions platform. He added that integrating the complementary businesses would help address India’s evolving transportation needs while driving operational excellence and long-term value for stakeholders.

AutoPunditz Take

The acquisition of Hindustan Composites’ friction business is a significant step for Rane (Madras) Limited as it builds a larger, more diversified and more integrated friction materials platform. With the COMPO brand, two additional manufacturing facilities, a wider distribution network and an established customer base, Rane is set to strengthen its position across OEM, railway, farm tractor, industrial and aftermarket channels.

At ₹370 crore, the deal is not just a capacity expansion move but a strategic consolidation in a safety-critical automotive component category. Once completed, the combined ₹1,000+ crore friction materials business could give Rane stronger scale advantages and better long-term competitiveness in India’s evolving mobility ecosystem.