Chennai: Rane (Madras) Ltd (RML) has signed an agreement to acquire the friction business of Hindustan Composites Ltd (HCL) for an enterprise value of Rs 370 crore through a slump sale, strengthening its presence in the friction materials segment.The acquired business, which manufactures brake linings, brake pads, brake blocks, clutch facings and industrial friction products, operates two manufacturing facilities in Maharashtra. It reported revenue of Rs 315 crore and a profit before tax of Rs 40.3 crore in FY26. As part of the transaction, RML will also acquire the COMPO brand.With the acquisition, RML expects to create a friction materials business with annual revenue exceeding Rs 1,000 crore, making it one of India’s largest players in the segment. The company said the deal will enhance manufacturing scale, expand its distribution network, and strengthen research and development capabilities.“This acquisition leverages Rane’s ability to create a market-leading friction solutions platform. By integrating these complementary businesses, we are uniquely positioned to address the evolving needs of India’s transportation sector while driving operational excellence and long-term value,” said Harish Lakshman, chairman, Rane Group.The transaction is subject to regulatory approvals and customary closing conditions and is expected to be completed by the end of the second quarter.
