Rane (Madras) Ltd (RML) has signed an agreement to acquire the friction business of Hindustan Composites Ltd (HCL) on a slump sale basis for an enterprise value of ₹370 crore, a move that will significantly strengthen its presence in India’s friction materials market.
The acquisition will combine two established businesses to create a friction solutions platform with annual revenue of around ₹1,000 crore, positioning RML as a market leader across key automotive, railway and industrial segments.
Deal expands product portfolio
HCL’s friction business has over six decades of experience and supplies friction materials across the automotive, railway, farm tractor and industrial sectors.
Its portfolio includes brake linings, brake pads, brake blocks, clutch facings and industrial friction products, supported by in-house research and development capabilities and a pan-India distribution network. The business operates manufacturing facilities at Paithan and Bhandara in Maharashtra.
According to the latest audited financial results, the friction business reported revenue of ₹315.04 crore and profit before tax (PBT) of ₹40.29 crore in FY26.
As part of the transaction, RML will also acquire the COMPO brand, strengthening its presence across distributors, fleet operators, original equipment manufacturers (OEMs) and aftermarket channels.
Creates ₹1,000 crore friction business
RML said the acquisition builds on its existing leadership in friction materials for passenger vehicles, two-wheelers, railways, aftermarket and export markets, where the business already generates revenue of more than ₹700 crore.
Following completion of the transaction, the combined business is expected to generate around ₹1,000 crore in revenue, making RML one of India’s largest friction materials companies.
The company expects the acquisition to deliver operational synergies through expanded manufacturing capacity, a wider distribution network and stronger research and development capabilities, while providing a platform for future business expansion.
Chairman speaks
Rane Group Chairman Harish Lakshman 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.”
Transaction expected to close in Q2
The acquisition has been executed through a Business Transfer Agreement and remains subject to customary regulatory approvals and other closing conditions.
RML expects the transaction to be completed by the end of the second quarter.
Part of the Chennai-headquartered Rane Group, RML supplies steering and suspension systems, brake components, engine components and light metal casting products to major automotive OEMs and the aftermarket in India and overseas.