Rane Brake Lining To Expand Capacity

Rane Brake Lining To Expand CapacityCity-based automotive brakeling maker Rane Brake Lining will strengthen the capacity at its Hyderabad and Tiruchirapalli plants with the intention to meet up the export and after market demands.

The company's a top official made this declaration on Wednesday.

On the sidelines of the company's AGM, company's chairman L. Ganesh stated, "The expansion will be made at an investment of Rs. 30 crore. The funding will be a mix of debt and internal accruals."

The other two places where the company possesses production plants include Chennai and Puducherry.

According to him, the existing capacity is enough to meet up the demand of the original equipment makers leaving little capacitance for meeting up exports and replacement market demands.

The Rs 236 crore company is also making plans to raise the production of asbestos free brakelings to 70% from the subsisting 59% in proportion to the demand made by its customers.

While asbestos free brakelings will raise the topline growth, the margins will be tight. (With Inputs from Agencies)