The Indian economy balanced challenges and momentum in FY25, to
position itself as the fastest-growing major economies globally. Driven by robust domestic
demand, steady infrastructure investments and a stable macroeconomic environment, India
maintained a strong growth trajectory despite global headwinds. India's automobile
industry continues to be a key contributor to the country's manufacturing growth and
economy development. The Passenger Vehicle segment registered moderate growth, with a
clear and continuing shift in demand toward Utility Vehicles, reflecting changing consumer
preference. The Passenger Car category, however, saw a decline in production volumes
during the year, suggesting a rebalancing in product mix and market focus. The MHCV
segment faced a subdued year, primarily due to a slowdown in infrastructure execution in
the first half, partly influenced by the general elections. The Farm Tractor segment
rebounded strongly, driven by favourable monsoon patterns and improved rural sentiment.
The Two-Wheeler segment continued its upward trajectory, backed by steady domestic demand
and significant growth in exports.
On the global front, major markets such as the United States and Europe
had modest growth balancing the easing supply chain constraints and higher vehicle prices.
Technological changes, regulatory norms and evolving customer preferences continue to
shape the priorities of vehicle makers and their responses to the demand environment.
Operating Businesses
FY25 was a significant year for the Group, marked by strategic
consolidation and organisational realignment. The successful merger of Rane Engine Valve
Limited and Rane Brake Lining Limited into Rane Madras Limited (RML) has strengthened our
foundation and sharpened our focus on long-term value creation. The merged entity now
operates through five distinct yet synergistic business verticals - Steering & Linkage
Business, Light Metal Castings Business, Engine Components Business, Brake Components
Business and Aftermarket Products Business, each aligned with specific product categories
and customer base.
The consolidation of the aftermarket product lines into a single
business unit is expected to drive greater synergy across our sales channels, enabling
cross-leverage of market reach and product capabilities. Aftermarket continues to remain a
priority growth area, with dedicated efforts to enhance coverage and deliver comprehensive
value to customers across geographies. While each businesses continue to be operationally
managed independently, they benefit from shared governance, centralized services and
enhanced cross-divisional collaboration.
During the year, Rane Steering Systems Limited (RSSL) became a wholly
owned subsidiary of Rane Holdings Limited, following the acquisition of the remaining 51%
stake from NSK Ltd., Japan. Notably, RSSL entered into a license agreement with ZF for
Column Drive Electric Power Steering (EPS) technology to be used exclusively for Indian
market.
Rane and ZF Group have agreed to further strengthen their partnership
by expanding the product portfolio within their joint venture, ZF Rane Automotive India
Private Limited (ZRAI) with plans to introduce Rack Drive Electric Power Steering System
technologies to the Indian market. By way of this collaboration, Rane and ZF will pioneer
the next generation of steering technologies for the Indian Market. ZRAI also initiated a
strategic restructuring in response to the global carve out of ZF Passive Safety Systems
under the ZF Lifetec brand. ZRAI
Board has approved a draft scheme of arrangement to demerge the
Occupant Safety Division into a new entity, ZF Lifetec Rane Automotive India Private
Limited. This restructuring, being undertaken on a going concern basis and subject to
regulatory approvals, is intended to enhance strategic clarity and operational focus for
the occupant safety business, positioning it for long-term success.
Looking Forward
As we look ahead, the Indian automotive industry is poised for
continued growth, supported by favourable interest rates, rising disposable incomes and a
resurgence in discretionary spending. The Commercial Vehicle segment is projected to
regain momentum, driven by the revival of construction and infrastructure activity, better
access to financing and increased replacement demand owing to an ageing fleet base.
At the global level, geopolitical tensions and rising trade
protectionism are reshaping supply chain dynamics. While these trends pose challenges to
global trade, they also could create unique opportunities for the Indian auto component
industry. At Rane, cost optimization and disciplined capital allocation will continue to
be key levers in our pursuit of enhanced financial performance. With a sharper
consolidated structure and a clear strategic roadmap, we believe Rane is well-positioned
to capture emerging opportunities and deliver long-term value to all stakeholders.
On behalf of the entire Board of Rane Holdings Limited, I would like to
thank all our stakeholders – Customers, Employees, Vendors, Investors, Bankers,
Government, and most importantly our shareholders for the unwavering support and trust in
our journey.
| Yours Sincerely, |
L Ganesh |
| Chairman and Managing Director |