Rane (Madras) Limited has agreed to acquire the friction business of Hindustan Composites Limited for an enterprise value of $39.1 million (₹370 crore), adding the COMPO brake-lining brand and two Maharashtra manufacturing plants to Rane’s portfolio. The company signed a business transfer agreement with Hindustan Composites to take over the friction unit as a going concern on a slump-sale basis — an Indian corporate-law structure in which an entire business changes hands for a lump-sum price rather than being itemized asset by asset. The deal covers Hindustan Composites’ assets, liabilities, contracts, intellectual property, licenses and employees tied to the friction business, and is expected to close by September 30, 2026, subject to customary regulatory approvals.
Highlights
- Enterprise value of $39.1 million (₹370 crore), payable in cash on a cash-free, debt-free basis
- Includes the COMPO brake-lining brand and two manufacturing plants in Paithan and Bhandara, Maharashtra
- Hindustan Composites’ friction unit reported FY26 revenue of $33.3 million (₹315.04 crore) and pre-tax profit of $4.3 million (₹40.29 crore)
- Combined friction materials business is expected to exceed $105.6 million (₹1,000 crore) in revenue once the deal closes
What Hindustan Composites Brings to Rane
Hindustan Composites’ friction business has more than six decades of manufacturing history, supplying brake linings, brake pads, brake blocks, clutch facings, roll linings and other industrial friction materials to automotive, railway, farm-tractor and industrial customers. The unit operates two plants, in Paithan and Bhandara, Maharashtra, and maintains in-house R&D and a pan-India distribution network, according to the company.
The COMPO brand transfers with the business. Rane said the addition is expected to extend its reach across distributors, fleet operators and aftermarket channels, strengthening its position in replacement and institutional sales.
Building a $105 Million Friction Platform
Rane’s existing friction materials business — spanning passenger vehicles, two-wheelers, aftermarket and railways, plus exports — generates more than $73.9 million (₹700 crore) in revenue, according to the company. Combined with Hindustan Composites’ unit, the enlarged platform is expected to exceed $105.6 million (₹1,000 crore) in revenue, which Rane said would make it one of India’s largest friction-solutions suppliers. The company pointed to manufacturing scale, distribution reach and R&D capacity as the main sources of synergy, along with a stronger aftermarket foothold in commercial vehicles, tractors, two-wheelers and fleet applications.
Harish Lakshman, Chairman of Rane Group, said the deal builds on Rane’s ability to assemble a friction-solutions platform, and that integrating the two businesses is meant to serve India’s transportation needs while improving operational efficiency, according to the company.
Rane (Madras) and the Rane Group
Rane (Madras) Limited, incorporated in 1960, is part of the Chennai-based Rane Group and manufactures steering and suspension systems, brake components, engine components and light-metal castings, supplying OEMs and the aftermarket across passenger vehicles, commercial vehicles, farm tractors, two- and three-wheelers, railways and industrial applications in India and overseas. Rane’s North American unit recently added a pad set for the WABCO Maxxus 2.0 caliper to its aftermarket lineup, part of a broader push to grow replacement-market share that the Hindustan Composites deal now extends on the OE and railway side.
The acquisition adds to a wave of friction-industry consolidation that has also played out in North America, where Motorcar Parts of America acquired the Centric Parts brake brands out of First Brands Group’s Chapter 11 bankruptcy earlier this year.
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