2 Rane cos win Deming Prize

Two companies in the Rane Group have won the Deming Prize for 2005 (given for meeting a particular quality level of operations by the Union of Japanese Scientists and Engineers).

The companies are Rane Engine Valves and Rane TRW Steering Systems- Steering Gear Division. At a press conference to announce this, Rane Group vice chairman L Ganesh said that another group company, Rane Brake Linings, bagged the Deming Prize in 2003.

Ganesh said, "Deming is a philosophy." The process undertaken to qualify for the prize had brought about internal changes, he added.

The Rane Group which has a size of a little over Rs 1,100 crore has interests in a wide range of auto components. One key impending development for the group is another plant for Rane Engine Valves. Ganesh said that the group was looking at the Visakhapatnam as the location for the new plant.

The group has a 30 per cent stake in a listed company, Kar Mobiles. The group plans to hike its stake to 51 per cent.

Ganesh said that the Rane Group's open offer for 20 per cent of Kar's equity was due to come out next week. The open offer would offer Kar's interested shareholders two options: a cash offer of Rs 145 or an option that would combine some cash payment and shares in Rane Engine Valves.

Ganesh said that the group had received some proposals for overseas acquisitions, but no decision on the same had been taken as yet. Ganesh outlined the Rane Group's approach to overseas acquisition with, "We don't believe in customer acquisition (as reason for a company's acquisition)."