Rane Group buys 26% stake in SasMos HET Technologies

Rane group, a Chennai-based auto component manufacturer, has announced acquisition of 26 per cent equity stake in Bangalore-based SasMos Het Technologies Pvt Ltd, through Rane Holdings Ltd, as part of business diversification into defence and aerospace.

SasMos Het Technologies is into manufacturing interconnection systems (cable harnesses) for various applications in the defence and aerospace industries. It manufactures cable assemblies, wiring harness, panel-boxes, and electro-mechanical assemblies .

L Ganesh, chairman, Rane group, said, "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. The financial details of the acquisition are not revealed."

 

Rane group has been exploring opportunities to diversify its operations from automotive industry and identified defence and aerospace industry as a possible area after the Indian government's decision to allow private participation in these sectors, said a company announcement.

The initial phase investment of 26 per cent stake is with an option to increase stake to majority over a period of time. The transaction was facilitated through Unifi Capital Pvt Ltd.

SasMos HET Technologies has plans to scale up operations and is expected to grow to about Rs120 crore in revenue in the next five years.

Rane Holdings has obtained approval from the shareholders in the AGM held on August 2, 2011, to invest in other corporate bodies engaged in design and manufacture of defence, aerospace, shipping, railway products and systems and renewable energy products, up to an aggregate of Rs 60 crore in one or more tranches.

However, Rane Group would continue to focus on maintaining growth in auto components with its products and the diversification is part of its future growth plans, added the company.