Rane (Madras) Acquires Hindustan Composites' Friction Business for ₹370 Cr
Rane (Madras) Ltd has entered into a Business Transfer Agreement (BTA) with Hindustan Composites Limited (HCL) to acquire its friction business for a lumpsum consideration of ₹370 crores on a cash-free, debt-free basis. The acquisition, structured as a slump sale, includes assets, liabilities, contracts, licenses, and employees, and is expected to be completed by September 30, 2026, subject to closing conditions and necessary approvals. This strategic move aims to consolidate Rane's market leadership in the friction business, unlock operational synergies, expand its distribution network, and enhance R&D capabilities. The acquired business comprises manufacturing and marketing of brake liners, roll lining, brake blocks, and clutch facing, along with the brand "COMPO".
Key Highlights
- Rane (Madras) to acquire HCL's friction business for ₹370 Cr.
- Acquisition is a slump sale, expected to close by Sept 30, 2026.
- Deal aims to strengthen market leadership and achieve operational synergies.
- Acquisition includes assets, liabilities, contracts, and the 'COMPO' brand.
- HCL's friction business had a turnover of ₹315 Cr in FY26.
Price Impact
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