Dear Stakeholders,
The Indian economy displayed remarkable resilience despite tighter
monetary policy and global headwinds and emerged as the fastest-growing large economy
witnessing growth of 7.8% in FY24 on the back of strong domestic demand and pick up in
fixed investment driven by increased capital spending by the central and state
governments.
The Indian automobile industry recorded a satisfactory performance in
FY24. Passenger Vehicle segment had robust growth on the back of stabilization in
commodity prices, improving chip availability, robust economic activity and robust demand
for UVs. The Commercial Vehicle segment witnessed sluggish volume growth, indicating
varied market conditions. There was a drop in the Farm tractors segment due to erratic
monsoon and weather conditions.
The major markets of global automobile industry – US and Europe
rebounded in 2023 with robust double digit growth with the interplay of factors and
adaptation to a changing world on supply chain, geo political and technology.
Group Performance
Rane Group continued to benefit on account of favourable demand
environment in India and strong pull from export customers. The group achieved a
significant milestone in the last financial year, with an aggregate total revenue of about
Rs. 7,199 crore, marking an 8% growth.
Operating Companies
Rane (Madras) Limited had muted sales growth mainly due to drop in
passenger car particularly entry level models and Farm tractor segments in India. Exports
continued to grow at healthy rate. The company achieved a new business order book of over
INR 500 Crores. The Light Metal Castings India business also witnessed strong growth in
exports with the ramp up of volumes in new businesses. Rane Engine Valve Limited witnessed
a strong sales growth of 14%. The Turnaround and Sustenance Plan started couple of years
back is yielding results in operational efficiency, capacity realization, export growth
and better cost management. REVL is strategically focusing on enhancing sales to EV
insulated segments, which accounts for 41% of their sales. The company has revised its
vision to enhance product portfolio with non-ICE components, which has similar
manufacturing process. Rane Brake Lining Limited achieved a sales growth of 10%. The
company successfully expanded its presence in the two-wheeler segment and grew exports
business with significant breakthrough in the US market.
The steering business of ZF Rane Automotive India Private Limited had
12% growth for the year despite sluggish M&HCV market in the second half of the year.
The occupant safety business has achieved a significant milestone, surpassing 1,000 crore
in sales; Revenue grew by 20% compared to the previous year. The vertical integration of
Inflators and Webbing plants will help improve competitiveness in the Indian Market. Rane
NSK Steering Systems Private Limited experienced a 14% growth for the year with the strong
demand on the served models. Given the returns trends on the quality issue, there was no
further warranty provisions made, signalling the end of issue.
Strategic Repositioning
With the expectation of sustained higher growth over the next two
decades, the automotive industry is a natural beneficiary and poised for significant
growth with evolving technologies.
Rane Group recognizes the importance of aligning our operations with
industry trends and demands. FY24 has been an eventful year for the group, marked by
strategic efforts to rebalance our portfolio through –
• Divestment of Rane t4u and LMCA.
• Merger of listed operating entities of the Group which will help
unlock various synergies among the businesses and will enhance stakeholder value for the
long term.
• Acquisition of TRW Sun Steering Wheels Private Limited by ZF
Rane Automotive India Private Limited to provide comprehensive solutions covering occupant
safety and system integration services and deliver exceptional value to existing and new
customers with enhanced capabilities.
Looking forward
As we look ahead over the next few years, the automotive segment
presents plenty of opportunities stemming from the transformation towards cleaner vehicles
and preference for safer vehicles with increased connectivity, comfort and convenience. To
stay ahead in the industry, we will continue to prioritize four key elements: increasing
growth and profitability, enhancing in-house technology development across product lines,
building efficiencies by leveraging comprehensive digitalization of both manufacturing and
non-manufacturing operations and improving sustainability parameters.
On behalf of the entire Board of Rane Holdings Limited, I would like to
thank all our stakeholders – Customers, Employees, Vendors, Investors, Bankers,
Government and most importantly our shareholders for the unwavering support and trust in
our journey.
Yours Sincerely,
L Ganesh
Chairman