Rane Group to invest Rs 2,000-mn for expansion

New Delhi: The Chennai-based auto parts maker, Rane Group, said it would invest Rs 200 crore in this financial year to expand production facilities across the country.

“This year, we would invest Rs 200 crore, of which Rs 40 crore would go towards setting up a new plant at Tiruchi for brake lining products. The remaining would be marked for expanding and modernising our other plants,” said Mr L Ganesh, Chairman, Rane Group.

Mr Ganesh said that group company, Rane NSK Steering Systems Ltd (RNSSL), which is a 50:50 joint venture with Japan’s NSK Ltd, has begun operations at its third plant at Bawal in Haryana. RNSSL would invest Rs 37 crore with an initial capacity to produce 200,000 electric power steering system.

The company said that the first line of production at the new facility would be to supply to Maruti Suzuki’ new car. Besides, it would also supply to Ashok Leyland and Tata Motors.

RNSSL, which is primarily into supplying steering system, to passenger cars is increasingly looking at supplying to commercial vehicle companies from where it expects 20 per cent of its revenues, Mr R Narayanan, the company’s President, saidat a press conference.

The Rs 1,400-crore Rane Group produces components like engine valve, steering and suspension system and is aiming to garner 25 per cent of its revenues from the export business over the next three-five years.