Rane Group Chairman L. Ganesh
Rane Group is aspiring to grow at 12-15% CAGR over the next five years and in the process, it is planning to invest about ₹1,000 crore over the next three years, said its chairman L. Ganesh.
In FY23, Rane Group posted revenues of ₹6,864 crore, registering a strong growth of 26% and a 38% growth in exports, he said in his message to employees shared by the company through LinkedIn.
“We are aspiring to grow at 12-15% CAGR over the next five years. In the process, we are planning to invest about ₹1,000 crore over the next three years,” he said.
Asserting that more than 90% of group sales were agnostic to Internal Combustion Engines or EVs, the group was steadily winning new business in the domestic and export markets in pure EV.
“We will continue to target a higher share of exports, from the current 24% to about 30% in next few years,” he said.
According to him, Aftermarket is another focus area for Rane group. The Aftermarket business was reorganised to create a group structure to facilitate synergy and drive group initiatives. This helped Rane group to grow sales to Aftermarket at 12-15% against 6-8% in the past few years.
Talking about FY24 outlook, he said the demand environment continues to remain favourable. The global economic scenario faces headwinds on inflation, slower growth and a geopolitical situation. Though India remains relatively shielded, a spillover from the global scenario cannot be ruled out.
“India’s GDP growth is expected to moderate to around 6% in FY24. Though our order book position across businesses remains strong, we will navigate this macro environment scenario cautiously, prioritising operational improvement and cost reduction measures to balance out any risk on growth,” he said.
“The inflection point where India is becoming a major manufacturer of automobiles is now visible. Rane needs to focus on technology development so that we can add value in the future and sustain profitability,” he said.
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