Auto parts maker, Rane Group declared that it would invest Rs 200 crore in the existing fiscal in order to expand production facilities across the country.

Mr. L Ganesh, Chairman, Rane Group, satted, “This year, we would invest Rs 200 crore, of which Rs 40 crore would go towards setting up a new plant at Tiruchi for brake lining products. The remaining would be marked for expanding and modernising our other plants.”

Mr. Ganesh also stated that the group company, Rane NSK Steering Systems Ltd (RNSSL), which is a 50:50 joint venture with Japan’s NSK Ltd, has started operations at its third plant at Bawal in Haryana.

Initially, the plant will make electric steering-systems for a new model from India’s top carmaker Maruti Suzuki India Ltd. Besides, it would also supply to Ashok Leyland and Tata Motors.

RNSSL would invest Rs 37 crore on the plant having an annual capacity of 200,000 units by April 2009.
 
Mr. R Narayanan, company’s president, said that RNSSL, which is primarily into supplying steering system, to passenger cars is continuously looking at supplying to commercial vehicle companies, which would add up 20% to its overall earnings.

Besides, Rane NSK Steering System has also decided to establish a new plant in Singur with a total investment of Rs 20 crore in the next one year to supply parts for the Tata’s Rs 1-lakh car, Nano.

The company plans to supply manual steering gear, engine valves and seat belts for Nano from the projected plant. It has already acquired five acres of land for its establishment.

The Rs 1,400-crore Rane Group makes components includes engine valve, steering and suspension system and is aiming to earn 25% of its revenues from the export business by the next 3-5 years.