Hindustan Composites Sells Friction Business for ₹370 Cr

Hindustan Composites Ltd announced the sale of its 'Friction Business Undertaking' to Rane (Madras) Limited for a lump sum cash consideration of ₹370 Crore. The transaction, structured as a slump sale, includes the development, manufacturing, and marketing of friction materials for automotive, railway, and industrial applications. The Friction Business contributed ₹315.04 Crore in turnover, representing 84% of the company's total turnover for the financial year ended March 31, 2026. The net worth of the business is ₹69.52 Crore, or 7.50% of the company's net worth. The sale is subject to shareholder approval via a postal ballot process and completion of conditions precedent outlined in the Business Transfer Agreement (BTA). The transaction is expected to be completed by September 30, 2026. Rane (Madras) Limited is not part of the promoter group.