Auto component maker Rane Group today said it had forayed into the defence and aerospace sectors by acquiring 26% stake in parts manufacturer SasMos HET Technologies for an undisclosed amount.
“Rane Holdings acquired 26% equity stake in SasMos HET Technologies, a company engaged in manufacturing interconnection systems [cable harnesses] for various applications in the defence and aerospace industries,” the company said in a statement. The auto parts maker had been scouting for opportunities to grow and identified the defence and aerospace industries as a possible area after the government's decision to allow private participation in these sectors, it added.
Commenting on the development, Rane Group Chairman L Ganesh said: “Today is a momentous step forward as Rane ventures into this new area. 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 the automotive industry, he added.
Without divulging its current turnover, Rane Group said SasMos HET Technologies had significant plans to scale up its operations and was expected to grow to about Rs 120 crore in revenue in the next five years.
“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,” it added.
SasMos HET Technologies is a Bangalore-based manufacturer and its products include cable assemblies, wiring harness, panel boxes and electro-mechanical assemblies.
Source: Business Standard