From its origins as a modest automobile parts trading company, the Rane Group has grown over the years to become a leading supplier of safety-critical automotive components. Today, it is managed by the fourth generation of the family, continuing its tradition of leadership and innovation. For the financial year 2023-24, it reported a revenue of ₹7,200 crore, with more than 29 manufacturing facilities across India.The Rane Group was established in 1929 by T.R. Ganapathy Iyer in Madras. It focused initially on trading in automobile and automotive parts. The company’s early operations were conducted from an automobile showroom on Mount Road. To accommodate its growing business, Rane leased a 22.5-acre land opposite Patullos Road for 25 years, with a rent of ₹1,250 a month. This space was developed into a garage and automobile repair workshop, complete with office premises. Going public In 1936, the company was restructured and went public. On April 17, 1936, notice was given of the first board meeting of Rane (Madras) Ltd. to take place at Champaka Vilas, Luz, Mylapore. During the course of the meeting, the prospectus of the company was finalised and approved and shares were allotted to a few prominent personalities of the city. In keeping with the structure of shareholding in public companies of the time, the Rane shares were divided into preference and ordinary shares, with the former being entitled to a fixed dividend marked on the certificates. Allocation of preferential shares began on July 13, 1936. The company commenced manufacturing in 1959 at Alandur. Its first major product was the engine valve. Alongside this, it also made tie-rods. Over the years, the company expanded its product range, which now includes steering and suspension systems, friction materials, valve train components, occupant safety systems, and light metal casting products. According to the details from the company, by early 1961, Rane had established a robust distribution network across India. Among the key partners were Jullunder Motor Agency in Delhi, Conwest Private Limited in Ahmedabad for Gujarat, Central Automobiles Private Limited in Bombay for Maharashtra, T.V. Sundaram Iyengar & Sons in Madurai for the Southern States, Hyderabad Auto Services for Secunderabad, and Howrah Motor Co. Private Limited for the Eastern States. New plant for tie-rods A major development occurred in the 1960s when a new plant for tie-rods was inaugurated by K. Kamaraj, Chief Minister of Madras. By 1963, the company decided to relocate its tie-rod manufacturing from Alandur to Velachery. Six acres of land was acquired at Velachery, and construction began. The new facility was inaugurated on September 28, 1963, with large advertisements in The Hindu highlighting the Rane Group’s pioneering role in auto parts manufacturing. The group received its first export order in 1968. According to the details shared by the Rane Group, it was received from Farnborough Ltd. by EVL (Engine Valve Limited) in 1968. This was for the supply of 1,15,000 valves to be fitted in Rover cars as original equipment. In 1969, Rane Madras made its maiden export supply when it received an order for clutch discs from Cairo. Harish Lakshman, chairman, Rane Group, says, “Rane Group has evolved over eight decades in the automotive sector, and I am proud of the legacy we have built across four generations of leadership.” He adds, “Our enduring success, from a small automobile parts trading company to one of the leading suppliers of safety critical automotive components, is rooted in our commitment to innovation, business excellence, and a customer-first approach. These values have not only sustained us but have also propelled us forward, ensuring that we continue to thrive in the evolving needs of our industry.” As the company transitioned into a structured, professionally managed entity, the core entrepreneurial spirit that defined its early years was carefully nurtured. The second and third generations of the Rane family were pivotal in shaping the group’s future. T.R. Ganapathy Iyer, the visionary founder, was succeeded by his son-in-law L.L. Narayan, who guided the company through a crucial phase of expansion and diversification. Narayan’s leadership was marked by the establishment of Rane’s manufacturing capabilities and the exploration of new markets, within and outside India. His efforts laid a strong foundation for the company’s subsequent growth and success. The third generation continued this legacy, focusing on strengthening Rane’s market presence and embedding professionalism in the organization. They were instrumental in further diversifying the product portfolio, enhancing manufacturing capabilities and forging global partnerships, which have been key to the group’s sustained success. Today, the Rane Group is led by the fourth generation of the family. The company says the current leadership is deeply committed to upholding the group’s core values of quality, customer-centricity, and innovation, while steering the company towards new horizons in the ever-evolving automotive industry. Three key subsidiaries Currently, Rane Holdings Limited operates through three key subsidiaries: Rane (Madras) Limited (RML), Rane Brake Lining Limited (RBL), and Rane Engine Valves Limited (REVL). RML is a market leader in steering gear and steering linkage products in India. Over the years, the company added new products. REVL manufactures valves and valve train components for a diverse range of engine applications in the automotive and non-automotive sectors, such as power generation, defence, and locomotives. And RBL is a player in the friction products sector, catering to the needs of original equipment manufacturers across segments. RBL’s products are supplied to over 15 countries. The company says it is committed to achieving 10%-12% expansion in the next five years. To drive the growth, the company has planned one of the largest capex programmes in recent years. It plans to invest ₹1,000 crore (over three years) to boost capacity across segments, including airbags, seatbelts, and steering gear. Published – September 15, 2024 11:27 pm IST