The Hindu Business Line : Rane Brake sees scope for enhancing ties with Nisshinbo

Chennai, Jan. 14 Rane Brake and its Japanese collaborator, Nisshinbo Industries, have long enjoyed harmonious relationship. The promoters have been partners for years and the Japanese company has a 10 per cent stake in Rs 180-crore Rane Brake, which makes brake liners, disc pads, composite brake blocks and clutch facings for automobiles and railways.

Now, they are examining scope for enlargement of their commercial engagement. Nisshinbo wants Rane to set up an R&D facility for engineering products, first for the Indian market and later for other markets too. And, the Rane group’s Chairman, Mr L. Ganesh, does not rule out the possibility of Nisshinbo raising its stake in the Indian company.

“We are already exchanging engineers,” Mr Ganesh told Business Line recently. The group also wishes to add technological muscle to thwart any Chinese threat to its turf.

Expansion plans

Meanwhile, the Rane group’s expansion plans for most of its constituent companies are progressing well and the first project to complete could be the greenfield Tiruchi plant of Rane Engine Valves Ltd, Mr Ganesh said. The group had earlier said it would invest Rs 250 crore on expansion this year. The Tiruchi plant will raise the group’s engine valves capacity by six million units, to 42 million a year.

Rane Brake is also putting up a new plant in Tiruchi, which is expected to go on stream in the second quarter of next financial year.

Rane NSK, an unlisted joint venture that makes steering systems, is putting up a 1,00,000 units-a-year plant at Bawal, Rajasthan. The new unit would produce electric steering systems for Maruti.

Sees flat turnover

Rane (Madras), Rane TRW and Rane NSK are setting up shop at Singur to supply to Tata’s Nano. Answering a question, Mr Ganesh said that because of slowdown in commercial vehicles and two-wheeler markets, and sluggish exports due to the stronger rupee, the group’s turnover for 2007-08 might be flat.

Rane Engine Valves also had some labour issues and management changes at one of its units, which affected its business, he said. However, with these problems having since been sorted out and with additional capacity from expansion, Rane Engine Valves would do better next year, he said.

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