Rane Group looking at diversifying into defence, aerospace

CHENNAI: Auto component manufacturer Rane Group today said it was looking at diversifying into defence and aerospace, considering the huge potential in the sector.

"There is a good opportunity because of private participation in defence and aerospace industry. We feel some synergy in this field," L Ganesh, chairman of Rane Group, which is celebrating the Platinum Jubilee, told reporters.

Noting that the Group has recently tied up with Bangalore based Sasmos for the purpose, he said: "We have just made an entry looking at the opportunities".

However, he said the main focus of the USD 500 million Group would be on the automotive sector, which grew at the rate of 10 to 12 per cent in the last decade.

"We should be able to grow faster. Several new products are under development", he said.

On the exports trend, Ganesh said the Group saw a 15 per cent growth last year and would like to achieve a growth of 20 to 25 per cent in the next three years.

Chairman of Rane Holdings Limited L Lakshman said the company hoped the industry would grow 15 per cent in the coming year looking at export avenues and accelerated growth.

He, however, admitted that spending on Research and Development was slow in the company and efforts were on increase it to 1.5 per cent to 2 per cent.