Newsletter
Chennai-based auto components maker Rane (Madras) has agreed to acquire the friction business of Hindustan Composites for ₹370 crore.
Stock action: shares of the company jumped over 3% on the back of this development.
So, what exactly is the business?
Hindustan Composites has been making products like brake pads, brake linings, clutch facings and other friction materials for more than 60 years. These components are used across passenger vehicles, commercial vehicles, tractors, railways and industrial equipment.
Why does this matter: Rane already has a strong presence in the friction materials business, supplying major automobile manufacturers in India and overseas. This acquisition will expand its product portfolio, manufacturing capabilities and customer base.
Once the deal is completed, the combined friction materials business is expected to cross ₹1,000 crore in revenue, making it one of the largest platforms in this segment.
