CHENNAI: Rane Group, one of India’s leading auto component manufacturers, has announced a major diversification into defence and aerospace. Rane Holdings Limited has acquired 26 per cent equity stake in SasMos HET Technologies Private Ltd, a company engaged in manufacturing interconnection systems (cable harnesses) for various applications in the defence and aerospace industries.
Rane Group has been exploring opportunities to go beyond its current presence in automotive industry. It has been scouting for opportunities to grow thereby identifying defence and aerospace industry as a possible area after the Indian government’s decision to allow private participation in these sectors.
SasMos HET Technologies, a Bengaluru-based leading manufacturer of products such as cable assemblies, wiring harness, panel-boxes, and electro-mechanical assemblies used in aerospace & defence industry has been on the look out for a suitable partner to expand their business.
SasMos is an eligible ‘Offset Partner’ for Supplies to the Indian defence sector and also supplies interconnection systems (cable harnesses) to both domestic and overseas customers. SasMos has plans to scale up and is expected to grow to about `120 crore in revenue in the next five years.
In the initial phase, Rane Holdings has invested in SasMos for a 26 per cent equity stake with an option to increase its stake to the majority over a period of time.
“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.