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The Rane group is scouting for acquisitions in Defence and aerospace.
“In the next couple of years, we are looking to make one or two acquisitions especially in the areas of mechanical and electronic systems for Defence and aerospace,” says Mr L. Ganesh, Chairman.
Rane is eyeing domestic companies in the “Rs 30-50 crore turnover size but with significant growth potential.”
The group, which has traditionally manufactured automobile components, diversified into the Defence sector last year with the acquisition of 26 per cent stake in Bangalore-based SasMos HET Technologies.
SasMos manufactures wiring harness, cable assemblies and panel boxes used in defence and aerospace. It is currently developing control systems; this involves lot of electronics.
The SasMos partnership with Rane has just completed a year. Sales at Rs 25 crore these years have been “marginally lower than planned”, says Mr Ganesh.
“But the business is close to break even. This year, we are planning Rs 35 crore.”
The SasMos business has the potential to ramp up significantly to Rs 130-150 crore in 3-5 years, says Mr Ganesh.
SasMos supplies to integrators such as BEML, BEL and Israeli Defence companies. Exports account for 60 per cent of its business currently.
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