Rane (Madras) Limited (RML) has signed a definitive agreement with Hindustan Composites Limited (HCL) to acquire the company’s friction business on a slump sale basis. The transaction, valued at an enterprise value of ₹370 crore, is subject to the terms and conditions outlined in the agreement.
The acquisition is aimed at strengthening Rane (Madras)’ position in the friction materials segment and creating one of India’s leading friction solutions platforms, enhancing its product portfolio and market presence across the automotive and industrial sectors.
HCL’s Friction Business is a leading supplier of friction materials, with over six decades of experience across the automotive, railway, farm tractor, and industrial sectors. Its product portfolio includes brake linings, brake pads, brake blocks, clutch facings, and industrial friction products, backed by in-house R&D and a pan-India distribution network. It operates two manufacturing facilities in Paithan and Bhandara, Maharashtra. Based on the latest audited financial results, Friction Business reported revenue of INR 315.04 crore and PBT of INR 40.29 crore in FY26.
As part of the acquisition, RML also acquires the brand “COMPO”, which reinforces Rane’s leadership position by expanding its reach across segments, distributors, fleet operators and aftermarket channels.
Strategic Rationale:
● Unrivalled Platform Scale: Building on RML’s established leadership in the friction business—spanning passenger vehicles, two-wheelers, aftermarket and railways, alongside an export business aggregating revenue of over ₹700 crore—this transaction marks a transformative milestone. Upon completion, the acquisition will create a ₹1,000+ crore friction materials business, establishing RML as the market leader across all major segments.
● Scale & Synergy: The transaction is expected to unlock substantial operational synergies through manufacturing scale, an expanded distribution network and enhanced R&D capabilities. The expanded footprint is expected to serve as critical launchpad for future business expansion.
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.”
The transaction, executed through a Business Transfer Agreement, remains subject to customary regulatory approvals and closing conditions. It is expected to be completed by the end of the second quarter.
 will acquire Hindustan Composites' friction business for ₹370 crore, creating a ₹1,000 crore friction solutions platform across automotive and industrial sectors.){kind=link}