Chennai-based Rane Group, a Rs-870 crore automotive component manufacturer, expects its revenues from exports to go up 100 per cent and touch the Rs 100-crore mark by the end of the current financial year.Speaking to Business Standard, Babu L Lakshman, chairman of Rane Group, said, "We have bagged some major export contracts this year which is expected to push the export revenues above the Rs 100-crore mark."According to him, it was only in the last three to four years that the Indian companies have looked at exporting products related to the automotive component industry seriously and the group in particular has seen some excellent results. "We intend to export 15 per cent of our total production in the next three to four years," he said.Lakshman said that close to 60 per cent of the export revenue is from original equipment exports and the remaining 40 per cent from the replacement market. The group exports components to 19 countries including the US, Germany, Iran, Australia, UK, Italy and Taiwan. He said that the export revenue constitutes about 10 per cent of the group's total turnover.According to him, the turnover of the group is expected to cross Rs 1,000 crore by the end of the current financial year. The group achieved a turnover of Rs 870 crore last fiscal. Out of the 19 plants that the company has across south India, three plants are located in Medchal, Aziz Nagar and Gajwel in Andhra Pradesh. The group manufactures valves and crankshafts at the Medchal and Aziz Nagar plants, while the Gajwel facility manufactures brake linings, disc-pads, composite brake blocks and clutch facings."We are very happy at the investments in the state and are looking at expanding to other regions in future," he said. According to Lakshman, the naxal issue had raised concerns in many corporates but he expected things to be under control.He said that the three units in the state, which contribute Rs 120 crore to the total turnover of the company, employs around 1,000 people. "We expect the revenue contribution to increase by around 12 per cent by the end of the current financial year," he said.The company, he said, is looking at increasing its product range from the existing 10 products. "We have a market share which is different for various products and it ranges between 35 per cent at the lower end and 100 per cent. We expect to improve on this in the next couple of years and also consolidate our position in the export market," he said.Speaking about the investments into the research and development wing of the group, Lakshman said, "The R&D team is not big enough and the company is looking at increasing this." He said that the company invests only around two per cent of the total earnings on R&D, which it plans to increase. Lakshman said that Rane Group is also looking at inorganic growth, but nothing is in the pipeline at present.
