Rane (Madras) Limited (RML), a flagship company of the Rane Group, has signed a definitive agreement to acquire the friction business of Hindustan Composites Limited (HCL) through a slump sale transaction for an enterprise value of ₹370 crore. The acquisition is subject to customary regulatory approvals and completion conditions.
The transaction represents a significant strategic move for RML as it seeks to strengthen its position in the friction materials segment and build one of India’s largest integrated friction solutions businesses serving automotive, railway, industrial and agricultural markets. Hindustan Composites’ friction business has more than six decades of experience in manufacturing friction materials for diverse applications. Its portfolio includes brake linings, brake pads, brake blocks, clutch facings and industrial friction products, supported by in-house research and development capabilities and an extensive distribution network across India.
The business operates manufacturing facilities at Paithan and Bhandara in Maharashtra. According to the latest audited financial statements, the division recorded revenue of ₹315.04 crore and profit before tax of ₹40.29 crore during FY26. As part of the agreement, RML will also acquire the well-established COMPO brand, enabling the company to expand its presence across original equipment manufacturers (OEMs), distributors, fleet operators and the aftermarket.
Following completion of the transaction, RML’s friction materials business is expected to exceed ₹1,000 crore in annual revenue. The enlarged portfolio will combine RML’s existing presence in passenger vehicles, two-wheelers, railways, exports and the aftermarket with Hindustan Composites’ established capabilities across multiple industrial segments.
The acquisition is expected to deliver significant operational benefits through increased manufacturing scale, wider product offerings, stronger research and development capabilities and a larger nationwide distribution network. The expanded platform is also expected to support future business growth in domestic and international markets.
Commenting on the development, Harish Lakshman, Chairman, Rane Group, said the acquisition marks an important milestone in building a comprehensive friction solutions platform. He noted that the combination of the two businesses will enhance the company’s ability to meet the changing requirements of India’s transportation sector while creating long-term value through operational excellence, product innovation and broader market reach. The transaction has been executed through a Business Transfer Agreement and is expected to be completed by the end of the second quarter, subject to the fulfilment of customary closing conditions and regulatory approvals.
Rane (Madras) Limited is one of the principal companies of the Chennai-headquartered Rane Group and supplies automotive components to leading original equipment manufacturers and aftermarket customers in India and overseas. The company manufactures steering and suspension systems, brake components, engine components and light metal castings for passenger vehicles, commercial vehicles, farm tractors, two-wheelers, three-wheelers, railways and stationary engines. The acquisition is expected to strengthen RML’s competitive position in India’s growing mobility sector while expanding its capabilities to serve a wider customer base with an integrated portfolio of friction material solutions across multiple industries.
