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Home arrow News arrow Mergers and Acquisitions arrow Rane Group enters Defense & Aerospace sector by Acquiring 26% in SasMos
Rane Group enters Defense & Aerospace sector by Acquiring 26% in SasMos Print E-mail
Written by Krishna Kumar   
Thursday, 29 September 2011
Chennai:  Rane Group, one of India's leading auto component manufacturers, has acquired 26% equity stake in SasMos HET Technologies Private Limited, a company engaged in manufacturing interconnection systems (cable harnesses) for various applications in the defense and aerospace industries.

"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." Said L Ganesh, Chairman, Rane Group.

In the initial phase, Rane Holdings Limited has invested in SasMos for a 26% equity stake with an option to increase it's stake to majority over a period of time.

"Rane which will continue its focus in maintaining its market leadership in auto components space in its chosen product lines looks at this diversification as a good fit for our future growth plans," the company said in a statement. The Rane Group comprises seven companies manufacturing safety and critical components for a broad range of automotive industry segments. In fiscal 2010 - 2011 the group recorded revenues of Rs. 2241.5 crores. The Rane Group embraces TQM as a way of life and four of its companies have received the coveted Deming Prize.

"As a part of its growth strategy Rane Group has been exploring opportunities to go beyond its current presence in automotive industry. It has been scouting for opportunities to grow and identified Defense and Aero Space industry as a possible area after the Indian government's decision to allow private participation in these sectors," the company noted.

SasMos HET Technologies private limited - a Bengaluru based manufacturer of products such as cable assemblies, wiring harness, panel-boxes and electro-mechanical assemblies used in Aerospace & Defense industry - has been in the lookout for a suitable partner to expand their business. SasMos, is an eligible 'Offset Partner' for Supplies to the Indian defense sector and also supplies interconnection systems (cable harnesses) to both domestic and overseas customers. SasMos HET Technologies has significant plans to scale up and is expected to grow to about Rs.120 crores in revenue in the next five years.

Last Updated ( Thursday, 29 September 2011 )
 
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