Rane Madras along with light metal casting components, has inaugurated a greenfield facility in Aguascalientes, Mexico.
This strategic move, supported by its wholly-owned subsidiary, Rane Automotive Components Mexico (RACM), represents the company’s entry into worldwide markets. The factory will manufacture steering and suspension components for passenger car applications.
The first project for this facility is an order to provide inner and outer ball joints for a future electric car platform by a major American OEM. The initiative, set to commence in 2025, is expected to generate a peak annual sales value of Rs 80 crores.
Aguascalientes was chosen as the site for this new plant because of its strategic location in the middle of Mexico, notably in the Bajio Region. This region is home to major OEMs like Nissan and a number of top-tier automotive suppliers. RML’s decision to establish a presence here is consistent with its goal of meeting the significant and growing market demand for inner and outer ball joints in North America. RML now provides these components from its Indian operations to a variety of worldwide locations, including Mexico, China, and Central Europe.
The initial investment for the Mexican subsidiary is projected to be USD 3 million, with an expected increase to USD 6 million over the next 12 to 18 months. RACM is actively exploring opportunities totaling RS 250 crores for the North American market, targeting vehicle platforms of different OEMs, including Ford, GM, and Honda.
Harish Lakshman, Vice Chairman, Rane Group, speaking on the announcement said, “The establishment of this greenfield facility is aligned to our aspiration of growing the share of international revenues. This new state-of-the-art facility will help us to address the demand for steering and suspension components in the North American region and position us to capitalise on the emerging trend of localisation of parts by the customers in this region driven by USMCA (United States-Mexico-Canada Agreement). With the footprint established in Mexico, RML is favorably positioned to further build on its current book of business in the North American Region.”
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