Amid challenging near-term automotive market outlook and kicking-in of new regulations, leading auto component maker Rane Group has chalked out plans to maintain a decent growth and achieve revenues of ₹7,000 crore by 2021-22.

The group ended the fiscal 2018-19 with total revenues of ₹5,369 crore — an increase of 12 per cent over the previous year.

“Rane Group is progressing with optimism on long-term market opportunities,” L Ganesh, Chairman and Managing Director of Rane Holdings, the holding company of the group, indicated in the company’s latest annual report.

The group is positive about future growth, driven by five key elements. First, it is optimistic that it will be able to use to its advantage its global presence to grow revenues. Second, its strong customer connect and stronger relationships with clients will help gain more business. Third, its efficient R&D capabilities to come in handy to provide value add solutions to customers.

Fourth is the group’s people practices; it helps employees acquire new skills, re-skill and re-orient to handle an accelerated rate of change on technologies and business models. Finally, the highest standards of ethics and quality will help in maintaining its leadership position in the market.

Cautious on short-term

But, the group is cautiously optimistic over the short-term growth on the back of slowing demand in most of the vehicle segments.

“The anticipated pre-buy on account of transition to BS-VI, normal monsoon, the government’s continued reforms and infrastructure push are likely to propel the growth of the Indian economy and its automotive industry in the medium-to-long term,” said Ganesh.

The group noted that connected and electric vehicle-related technologies will provide more opportunities.

“We need to stay on top of the short-term pressures and focus on long-term goals,” said Harish Lakshman, Vice-Chairman, Rane Holdings.

In addition to growth offered by the domestic market, the global automotive industry presents a huge opportunity and Rane Group is well-positioned to capitalise, he added.

In a recent interaction with BusinessLine , Ganesh had said that international business should continue to be a growing opportunity for the group because of large potential. “The group has scratched only the tip of the iceberg. Therefore, I feel in the next four years we will grow and exports will be one of the growth drivers,” he had said.