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Rane (Madras) Limited (RML) has signed an agreement to acquire the friction business of Hindustan Composites Limited (HCL) for an enterprise value of INR 370 crore through a slump sale. The acquisition includes the COMPO brand, two manufacturing facilities in Maharashtra and an established nationwide distribution network. The acquired business reported revenue of INR 315.04 crore and profit before tax (PBT) of INR 40.29 crore in FY26. Upon completion, RML expects to create a friction materials business with annual revenue exceeding INR 1,000 crore, strengthening its presence across automotive, railway, industrial and aftermarket segments. The transaction remains subject to regulatory approvals and is expected to close by the end of the second quarter.
Rane (Madras) Limited (RML) has entered into a Business Transfer Agreement with Hindustan Composites Limited (HCL) to acquire its friction business as a going concern through a slump sale for an enterprise value of INR 370 crore.
Announced on 1 July, the transaction includes HCL's friction products business, which has operated for more than six decades and supplies products across the automotive, railway, farm tractor and industrial sectors. The acquisition also includes ownership of the COMPO brand, which RML said will strengthen its market presence across original equipment manufacturers (OEMs), distributors, fleet operators and aftermarket channels.
HCL's friction business manufactures a range of products including brake linings, brake pads, brake blocks, clutch facings and industrial friction materials. The business is supported by in-house research and development capabilities and a pan-India distribution network, with manufacturing facilities located at Paithan and Bhandara in Maharashtra.
According to the latest audited financial statements, the business generated revenue of INR 315.04 crore and profit before tax (PBT) of INR 40.29 crore during FY26.
RML stated that the acquisition aligns with its strategy to expand its friction materials business, which already serves passenger vehicles, two-wheelers, railways and the aftermarket, in addition to export markets. Following completion of the transaction, the combined friction business is expected to generate annual revenue of more than INR 1,000 crore, positioning the company as a leading player across major friction material segments.
The company said the acquisition is also expected to generate operational synergies through expanded manufacturing capacity, a broader distribution network and enhanced research and development capabilities. It added that the enlarged business platform would support future expansion opportunities across domestic and international markets.
Harish Lakshman, Chairman of the Rane Group, said the acquisition supports the company's objective of creating a larger friction solutions platform by integrating complementary businesses. He stated that the combined operations would enable RML to address evolving transportation requirements while improving operational efficiency and delivering long-term value for stakeholders.
The transaction remains subject to customary regulatory approvals and other closing conditions. RML expects to complete the acquisition by the end of the second quarter.
Rane (Madras) Limited is part of the Chennai-headquartered Rane Group and manufactures steering and suspension systems, brake components, engine components and light metal casting products. The company supplies components to original equipment manufacturers and the aftermarket across passenger vehicles, commercial vehicles, farm tractors, two-wheelers, three-wheelers, railways and stationary engine segments in India and overseas markets.
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