The Rane Group: firmly in the driver’s seat for four generations

Rane Group: Leading supplier of automotive components, with ₹7,200 crore revenue, 29 facilities, and four generations of leadership.

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.

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.

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.