Rane (Madras) Limited Announces ₹370-Crore Acquisition of Hindustan Composites’ Friction Business

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"This acquisition leverages Rane's ability to create a market-leading friction solutions platform. By integrating these complementary businesses, we are uniquely positioned to address the evolving needs of India's transportation needs while driving operational excellence and long-term value for our stakeholders." - Harish Lakshman, Chairman - Rane Group

July 2026 : Rane (Madras) Limited has recently announced the acquisition of Hindustan Composites Limited’s (HCL) friction business. The deal, valued at an enterprise value of ₹370 crore on a cash-free, debt-free basis, will be executed as a going concern via a slump sale.

By bringing HCL’s business into its fold, Rane is combining its existing ₹700+ crore friction material operations with HCL’s ₹315.04 crore revenue stream. The result is the birth of a powerhouse: a consolidated ₹1,000+ crore friction materials platform.

The crown jewel of this deal is the acquisition of HCL’s premium aftermarket brand, "COMPO." Known for over six decades as a reliable staple across India, COMPO instantly hands Rane a massively expanded footprint among distributors, fleet operators, and aftermarket channels. Additionally, Rane gains control of HCL’s two manufacturing facilities located in Paithan and Bhandara, Maharashtra, along with its robust in-house R&D capabilities.

Looking closely at the financials, Rane is acquiring a remarkably healthy asset. In FY26, HCL’s friction business recorded a steady turnover of ₹315.04 crore, up from ₹284.27 crore in FY25, alongside a solid profit before tax (PBT) of ₹40.29 crore. The transaction is slated for completion by September 30, 2026, subject to customary closing conditions.

Leaders at the helm are highly optimistic about what this means for the industry's future. Commenting on the acquisition, Mr. Harish Lakshman, Chairman, Rane Group said: "This acquisition leverages Rane's ability to create a market-leading friction solutions platform. By integrating these complementary businesses, we are uniquely positioned to address the evolving needs of India's transportation needs while driving operational excellence and long-term value for our stakeholders."

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