Rane Group Business Report up until FY ended Mar. 2012

Business Highlights

Recent Years

Financial Overview (FY ended March 31, 2012)

-The Group sales in the FY ended March 31, 2012 increased by 16.4% year-on-year to INR 18,815.8 million (FY ended March 31, 2011: INR 16,164.9 million).

-With Germany and USA as its established export destinations, the Group made successful inroads into South America by winning new business in the FY ended March 31, 2012.

-The Group is aiming to further accelerate its growth momentum by rapidly increasing exports with a slew of new products. Exports' contribution to its revenue stands at 16% in the FY ended March 31, 2012. The Group is poised to raise the revenue contribution from exports to approximately 20-25% of its group revenues over the next three to four years.

Developments in India

Rane TRW Steering Systems Limited
-In 2010, the Company entered into the production of hydraulic fluid for power steering systems.

Rane NSK Steering Systems Limited
-As of 2012, new generation passenger cars and utility vehicles are expected to move towards Electric Power Steering (EPS) for reasons of higher fuel savings, eco-friendly technology and increased driving comfort. The demand for EPS systems is expected to increase. The Company is building the organizational and technical capabilities to meet this requirement.


Rane (Madras) Limited
-In 2011, the Company was awarded the "Best supplier performance award" from TAFE.

Rane Engine Valve Limited
-In 2011, the Company received "Excellent Supplier Award" from Cummins.

-In 2010, the Company won the award for "Best in Class Performance in quality" from Ashok Leyland.

Rane NSK Steering Systems Limited
-The Group announced that Rane NSK Steering Systems Limited received a certificate from Maruti Suzuki for "Sincere Efforts and Superior Performance in the field of Focused Cost Down" for the 2011-2012 fiscal year. (From a press release in July 2012)

-In 2011, the Company received the "Best Supplier award for the superior performance in the Vehicle Proprietary category" from Mahindra & Mahindra.

Rane TRW Steering Systems Limited
-In 2010, the Company has received the "Best Supplier Award Silver Medal in Chassis Propriety Category" for 2009-2010 from Ashok Leyland. (From a company press release)

Joint Ventures

-In 2010, the Group divested 1 percent shareholding in Rane NSK Steering Systems Ltd. in favour of JV Partner, NSK Ltd. Majority shareholding in Rane NSK Steering Systems Ltd. held by NSK will enhance its commitment to the Indian market and would facilitate quicker response to customer needs.


Rane TRW Steering Systems Limited
-In 2009, the Company's Pantnagar plant was inaugurated to supply power steering gears and pumps for Ashok Leyland's heavy and medium commercial vehicles and Tata Motors' Tata "Ace" model.

Rane Engine Valve Limited
-In 2009, the Company commissioned a dedicated line in its Trichy plant for the manufacture of engine valves for Hyundai. The Company also commissioned a dedicated line for the manufacture of engine valves for Mahindra & Mahindra.


R&D Expenditure

(in million INR)
  FY ended Mar. 31, 2012 FY ended Mar. 31, 2011
Rane (Madras) Limited 47.0 40.0
Rane Engine Valve Limited 11.5 5.0
Rane Brake Lining Limited 52.5 58.4

R&D Activities

Rane (Madras) Limited
-Specific areas in which R&D carried out by the Company in FY ended March 31, 2012:
  • Product technology for mechanical rack & pinion for deploying with EPS, with focus on attenuating friction and noise
  • Development of EPS for farm tractors and small commercial vehicles
  • Hydraulic products for farm tractors, commercial vehicles and off-road vehicles
-In FY ended March 31, 2011, the Company developed the products as bellow:
  • Manual / mechanical rack and pinion type steering gears for all terrain vehicles and passenger cars
  • Hydraulic cylinders and hydraulic static steering units
  • Suspension control arms for passenger cars
Rane Brake Lining Limited
-In the FY ended March 31, 2012, joint development with Nisshinbo was taken up on cost effective high performance type disc pad product. R&D is also focusing on alternate / green materials development for performance and cost factors.

-In the FY ended March 31, 2011, the Company developed new asbestos free friction materials for domestic commercial vehicles OEM customers.

Technological Alliance

Rane Brake Lining Limited
-As of March 2012, the Company receives technical service and knowledge relating to design and manufacture of disc pads and brake linings from Nisshinbo Brake Inc.

Investment Activities

Investment in India

Rane TRW Steering Systems Limited
-In 2011, the Rane TRW Steering System Limited commissioned a new line for manufacturing steering gear valves at its Viralimalai plant.

Rane (Madras) Limited
-In 2010, the Rane (Madras) Limited has established a new factory in Sanand, Gujarat for dedicated supplies to Tata's "Nano".

-During the FY ended March 31, 2007, the Rane (Madras) Limited had established a manufacturing facility at Uttrakand to supply Steering Gears exclusively for Tata Motors. The company has also been chosen as a supplier for the small car "Nano" and the production capacity would be established in Singur in West Bengal during 2008-2009.

Rane Engine Valve Limited
-In 2008, Rane Engine Valve had successfully commissioned two production lines with a capacity of 2.5 million valves per annum on two shifts basis at its new plant near Tiruchy, India. Commercial production had commenced during the year.

Rane Brake Lining Limited
-In 2008, Rane Brake Lining Ltd. had completed the expansion project in Tiruchy in India with the active participation and technical inputs from its collaborator, Nisshinbo Industries Inc., Japan. The state of the art plant had commenced commercial production during the year and was expected to play a significant role in the coming years in improving the sales revenue and profitability of the company.