Chennai-based auto component manufacturer Rane Group is aiming at doubling its current turnover to become a $1 billion company in the next five years through accelerated growth strategies. The company, which is completing 75 years of operations, clocked around Rs 2,223 crore (around $500 million) last fiscal.
Speaking to reporters while announcing the company’s platinum jubilee, L Ganesh, Rane Group, said, “We are expecting the turnover to double in next five years.” The company is looking at growing exports and new products to enhance the growth momentum. At present, 15 per cent of its total sales is from exports and it is planning this to grow at 20-25 per cent in the next three years through increased supplies to original equipment manufacturer (OEMs), indirect supplies through distributors in other markets and after market sales.
The company is expected to grow in tandem with industry, which is growing at around 15 per cent, said L Lakshman, chairman, Rane Holdings Ltd, the apex company of Rane Group.
The group has been looking at acquisitions in foreign markets for sometime, said Ganesh. The company has evaluated around three to four companies for acquisitions in last few years. It is looking at acquisitions in the product segments it is present at or in known geographies, said Harish Lakshman, managing director of Rane TRW Steering Systems Limited.
The company, which completed its acquisition of around 26 per cent stake in Bangalore-based defence aerospace player SasMos HET Technologies Pvt Ltd, in September, is looking at more acquisitions in aerospace in India in future, he added.
It is also planning to double its research and development (R&D) spend from the current around 0.7 of the total turnover, to 1.5-2 per cent to create intellectual property and innovative product lines.
However, the company has revised its growth expectations of the current fiscal, owing to the slowdown in the passenger car market. It was expecting a growth of 20 per cent this year. Similarly, only 60 per cent of the total capex plan of Rs 240 crore could be accomplished for the current fiscal.