Rane to Acquire Hindustan Composites Friction Business for $39 Million

Updated on July 02, 2026 • 4 min read

Rane (Madras) Limited has agreed to acquire the friction business of Hindustan Composites Limited for an enterprise value of ₹370 crore (US$39.1 million), expanding its presence in India’s automotive and industrial braking materials market.

The transaction, structured as a slump sale, includes the well-established COMPO brake-lining brand, two manufacturing facilities in Maharashtra, intellectual property, employees, contracts and other business assets. The acquisition is expected to close by September 30, 2026, subject to customary regulatory approvals.

Acquisition Adds Manufacturing Capacity and COMPO Brand

Hindustan Composites’ friction business has more than six decades of manufacturing experience, producing:

• Brake linings
• Brake pads
• Brake blocks
• Clutch facings
• Roll linings
• Industrial friction materials

The business serves customers across the automotive, railway, agricultural equipment and industrial sectors.

The acquisition also includes manufacturing facilities located in Paithan and Bhandara in Maharashtra, together with in-house research and development capabilities and a nationwide distribution network.

For fiscal year 2026, the friction business generated revenue of ₹315.04 crore (US$33.3 million) and reported pre-tax profit of ₹40.29 crore (US$4.3 million).

Combined Business to Exceed ₹1,000 Crore Revenue

Rane’s existing friction materials business currently generates annual revenue exceeding ₹700 crore (US$73.9 million) across passenger vehicles, commercial vehicles, two-wheelers, railway applications, exports and the aftermarket.

Following completion of the acquisition, the combined friction materials business is expected to surpass ₹1,000 crore (US$105.6 million) in annual revenue, positioning Rane among India’s largest suppliers of friction solutions.

The company expects the acquisition to strengthen:

• Manufacturing scale
• Product portfolio
• Distribution channels
• Research and development capabilities
• Commercial vehicle aftermarket presence
• Railway and industrial customer base

The addition of the COMPO brand is also expected to expand Rane’s reach among distributors, fleet operators and institutional customers.

Strategic Expansion in India’s Braking Materials Market

According to Harish Lakshman, Chairman of the Rane Group, the acquisition supports the company’s long-term strategy of building a comprehensive friction solutions platform while improving operational efficiency and supporting India’s transportation sector.

Rane manufactures steering, suspension, braking and engine components for original equipment manufacturers (OEMs) and aftermarket customers across passenger vehicles, commercial vehicles, farm equipment, railways and industrial markets.

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Industry Perspective

The acquisition reflects continued consolidation within the global friction materials industry as manufacturers seek broader product portfolios, greater production capacity and stronger aftermarket distribution networks. As vehicle production, railway investment and commercial transportation continue to grow, suppliers are increasingly pursuing acquisitions that expand manufacturing capabilities while improving economies of scale.

Outlook

Once completed, the acquisition will significantly strengthen Rane’s position in India’s friction materials market by combining established manufacturing assets, a recognized aftermarket brand and expanded distribution capabilities. The enlarged business is expected to enhance Rane’s competitiveness across automotive, railway and industrial applications while supporting future growth in both OEM and replacement markets.