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Mr L. Lakshman, Chairman, Rane Group (left), and Mr S. Parthasarathy, President, Rane (Madras) Ltd, at a press conference in Chennai on Tuesday. — Bijoy Ghosh

Chennai , Jan. 18

IN 2002-03, when Rane (Madras) Ltd began to look at exports seriously, its revenues from overseas sales amounted to Rs 50 lakh.

Thanks to demand from US and European original equipment manufacturers (OEMs), the company exported Rs 9-crore worth of steering joints and gears last year. The number is set to quadruple in the current year — the company expects to end the year with an export turnover of Rs 35 crore.

The company's turnover itself is expected to increase 40 per cent over last year, Mr L. Lakshman, Chairman of the Rane group, said at a press conference here on Tuesday.

Last year, the company achieved a turnover of Rs 175.68 crore. It has projected an operating profit of close to Rs 40 crore for the current year.

The press conference was held to announce that two of the three manufacturing units of the company had won `Frost & Sullivan's India Manufacturing Excellence Award' for 2004.

Rane (Madras), which was a loss-making company in 2000-01, reported a net profit of Rs 3.27 crore for the first half of the current financial year.

Answering a question, Mr Lakshman said that the company is exporting to General Motors and DaimlerChrysler in the US, among other OE customers.

He said that increase in steel prices and the appreciation of the rupee against the dollar were posing a challenge. The Rane group is examining options of buying steel from China.

He also said that the process of restructuring promoters' holding in the Rane group is close to completion and an announcement would be made in three weeks' time. Under the move, the promoters would sell their stake in Rane Engine Valves Ltd to three companies of the group - — Rane (Madras), Rane Investments and Rane Brake Linings. The three companies would pay the promoters in terms of shares and cash — two shares of Rane (Madras) for every one held in Rane Engine Valves, plus Rs 118 in cash for every share of Rane Engine Valves.

The promoters would then come out with an open offer for about 10 lakh shares of Rane (Madras). At the end of it all, the promoters' stake in Rane (Madras) would go up to 55 per cent from about 43 per cent now. Only the High Court's approval for the move is awaited.

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