Rane group, a leading manufacturer of auto components in the country, has diversified into defence and aerospace with the acquisition of a 26-per cent equity stake in SasMos HET Technologies Pvt Ltd, a company engaged in the manufacture of interconnection systems (cable harnesses) for various applications in defence and aerospace industries.
Rane Holding Ltd, which announceed the acquisition in a stock market filing today, said the group has been looking to grow beyond its current sphere of automobiles and expand into defence and aerospace business, in line with the government's policy allowing private participation in defence and aerospace industries.
Bengaluru-based SasMos HET Technologies is a leading manufacturer of products such as cable assemblies, wiring harness, panel boxes, and electro-mechanical assemblies used in aerospace and defence industries and has been looking for a suitable partner to expand operations.
SasMos, an eligible partner under the `offset clause' for foreign suppliers of defence equipment to India, also supplies interconnection systems (cable harnesses) to both domestic and overseas customers. The stake sale is part of the company's plans to scale up production to a Rs120-crore revenue size in the next five years.
"Today is a momentous step forward as Rane ventures into this new area. 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 Automotive Industry." L Ganesh, chairman of Rane Group, said.
He, however, said the group would continue focus on maintaining its market leadership in auto components even as it looks to new areas for diversification and expansion of business.