Rane (Madras) Ltd has completed the acquisition of the Friction Business of Hindustan Composites Ltd for ₹370 crore on a cash-free, debt-free basis, strengthening its position in the friction business and expanding its product and market reach.
The acquisition was completed after fulfilment of customary regulatory approvals and other closing conditions under the Business Transfer Agreement signed on June 30, 2026. The transaction was structured as a slump sale on a going-concern basis.
Friction business to be integrated
Hindustan Composites’ Friction Business will be integrated into Rane (Madras)’ Brake Components Business in a phased manner. The integration is expected to generate operational synergies by combining the complementary capabilities of the two businesses.
The acquisition is expected to be earnings per share accretive from the first year and create further opportunities for revenue growth and operational efficiencies.
COMPO brand expands reach
Rane (Madras) has also acquired the COMPO brand as part of the transaction. The acquisition is expected to strengthen the company’s reach across distributors, fleet operators and aftermarket channels.
The deal further strengthens Rane’s established position in the friction business while expanding its presence across automotive and industrial applications.
Six decades of friction expertise
Hindustan Composites’ Friction Business has more than six decades of experience and supplies friction materials to 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 R&D capabilities and a pan-India distribution network.
Manufacturing base in Maharashtra
The business operates two manufacturing facilities at Paithan and Bhandara in Maharashtra. It reported revenue of ₹315 crore and profit before tax of ₹40 crore in FY26.
The acquisition will allow Rane (Madras) to leverage the acquired business’ manufacturing, R&D and distribution capabilities while integrating them with its existing Brake Components Business.