Leading steering, suspension products and light metal casting components manufacturer Rane (Madras) Limited has announced the acquisition of the Steering Components Business (SCB) of Yagachi Technologies Private Limited (YTPL), a part of Hical Group.
SCB has a technical collaboration with a leading South Korean ball joint company. SCB’s revenue was INR 35.5 crore for FY21. According to the company statement, the Board of Directors of the company has approved the transaction.
SCB manufactures steering and suspension components such as Inner Ball Joints (IBJ) and Outer Ball Joints (OBJ). The division’s major customers include Mando India, who in turn serve OEMs such as Hyundai, Kia, Mahindra and others. The move will enable Rane (Madras) to enhance its customer base and increase its product portfolio.
Rane (Madras) has two divisions - Steering and Linkages Division (SLD) and Light Metal Casting India Division (LMCI). SLD manufactures mechanical steering gears, hydrostatic steering systems and steering and suspension linkage products. LMCI manufactures low porosity, high-quality light metal casting such as steering housings and engine case covers. Through its overseas subsidiary Rane Light Metal Castings Inc, the company manufactures high-pressure light metal casting components from its facility in Kentucky, USA.
Harish Lakshman, Vice Chairman, Rane Group, said, “The acquisition of the Steering Components Business of Yagachi will enhance RML’s leadership position and share in the domestic passenger vehicle market and provide an opportunity to enter export vehicle platforms to new geographies.”