Rane Holdings Limited has strengthened its commitment to the auto components sector with a fresh equity infusion of ₹50 crore into its subsidiary, Rane Steering Systems Private Limited (RSSL). The move is expected to support the company’s operational needs and prepare it for the next phase of growth in a rapidly changing automotive landscape.
The funding, completed through a rights issue, increases RSSL’s paid-up capital while keeping it fully under the ownership of Rane Holdings. The additional capital will help the steering systems maker manage ongoing capital expenditure, upgrade technology, and respond to emerging opportunities in both domestic and export markets.
“The auto components industry is transforming, with OEMs demanding higher quality, safety, and localized sourcing. For suppliers like RSSL, this means consistent investment in capability and innovation,” said an industry expert tracking the sector.
The timing of the capital infusion also aligns with the government’s broader push for Atmanirbhar Bharat and self-reliance in manufacturing. As the Centre encourages localization of critical automotive parts, suppliers with stronger balance sheets are likely to gain a competitive advantage.
For Rane Holdings, this decision signals a long-term commitment to strengthening its core businesses rather than diversifying away from them. The additional resources are expected to be channelled towards process automation, capacity expansion, and potentially, the development of steering technologies suited for electric and connected vehicles.
While the subsidiary has seen some revenue moderation in the past financial year, the fresh capital provides breathing space to scale up without depending excessively on external borrowing. Market observers note that maintaining 100 per cent ownership also allows the parent company to retain strategic control over product and market decisions.
With global automakers increasingly looking at India as a base for both manufacturing and innovation, companies like RSSL could find themselves better placed to serve not only local demand but also global supply chains. Rane Holdings’ latest move, therefore, is not just about funding current operations; it is about preparing for a future where steering systems will play a critical role in the evolution of mobility.
RSSL, founded in the mid-1990s, has built a strong reputation for supplying steering columns and related components to leading automobile manufacturers. Despite the slowdown in demand across some vehicle segments in recent years, the company has continued to be a crucial link in India’s supply chain. Industry analysts believe this latest investment will provide stability and agility as the company navigates the twin challenges of rising input costs and the industry’s shift towards electric mobility.
