Rane (Madras) Limited has signed an agreement to acquire the friction materials business of Hindustan Composites Limited for an enterprise value of ₹370 crore, in a slump sale that will be executed as a going concern. The transaction has been structured as a Business Transfer Agreement and remains subject to regulatory approvals and other customary closing conditions. It is expected to be completed by the end of the second quarter.
Hindustan Composites’ friction business has operated for over six decades, supplying brake linings, brake pads, brake blocks, clutch facings, and industrial friction products to the automotive, railway, farm tractor, and industrial sectors. It runs two manufacturing plants in Paithan and Bhandara, both in Maharashtra, supported by an in-house R&D setup and a distribution network spread across the country. In its most recent audited financials for FY26, the business reported revenue of ₹315.04 crore and a profit before tax of ₹40.29 crore.
The deal also brings Rane the “COMPO” brand, which the company says will strengthen its presence across distributors, fleet operators, and the aftermarket.
For Rane, the acquisition builds on an already established friction materials business that spans passenger vehicles, two-wheelers, railways, and the aftermarket, alongside an export business worth more than ₹700 crore. Once the deal closes, the combined entity is expected to cross ₹1,000 crore in revenue, making Rane the market leader across all major friction-business segments. The company also expects the acquisition to bring operational synergies through greater manufacturing scale, a wider distribution network, and stronger R&D capabilities, positioning the expanded business as a platform for further growth.
Mr. Harish Lakshman, Chairman of Rane Group, said the acquisition strengthens Rane’s ability to build a market-leading friction solutions platform, and that integrating the two businesses positions the company to meet India’s evolving transportation needs while driving long-term value for stakeholders.
