Auto component manufacturer Rane Group has diversified into Defence and aerospace with Rane Holdings Ltd acquiring 26 per cent equity stake in Bangalore-based SasMos HET Technologies.
The financial details of the acquisition were not revealed. Rane has the option to increase its stake to majority.
SasMos is engaged in manufacturing interconnection systems (cable harnesses) for application in the Defence and aerospace industries.
As a part of its growth strategy, Rane Group has been scouting for opportunities beyond the automotive sector. With the Indian government permitting private participation in Defence and aerospace, the group saw promise in SasMos, which manufactures products such as cable assemblies, wiring harness, panel boxes, and electro-mechanical assemblies used in aerospace and Defence.
The Bangalore-based company is an eligible partner with global vendors of the Ministry of Defence for meeting their offset obligations as per Defence procurement policy.
SasMos HET Technologies’ current turnover is Rs 12 crore; it plans to scale up to Rs 120 crore in the next five years.
“We feel there are significant growth opportunities both in India and as an exporter. This entry also opens a new knowledge base for Rane in electronics which will have a synergy with the automotive industry,” said Mr L. Ganesh, Chairman, Rane Group.
Unifi Capital facilitated Rane in this transaction.
In fiscal 2010-2011, the Rane group recorded revenues of Rs 2,241.5 crore. Rane Holdings’ stock was down 0.34 per cent on Wednesday to close at Rs 206.30 on the BSE.