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Rane Group Welcomes you
Rane GroupWelcomes you
Customer delight through total quality
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AgendaPresentation on
Group Profile
Shareholding Pattern
Financial Performance
Outlook
Q & A
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RANE GROUP PROFILE
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Mission and Value
Mission Statement
Provide superior products and services to our customers and maintain market leadership.
Evolve as an institution that serves the best interests of all stakeholders.
Pursue excellence through total quality management.
Ensure the highest standards of ethics and integrity in all our actions.
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Milestones
- Rane was founded as a distributor of automobiles & parts. 1929
- Diversified into manufacturing and established plant for IC Engine Valves. 1959
- Established facility to make Tie Rod Ends.1960
- Started manufacture of Friction Material.1964
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Milestones
- Established Kar Mobiles Limited to manufacture Automotive and Large Valves.
1974
- Started manufacture of Manual Steering Gears.1975
- Established JV with TRW for Power Steering Systems1987
- Established JV with JMA for distribution of auto components.1991
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Milestones
- TRW JV also commenced manufacture of occupant restraints.- Established JV with NSK for Energy Absorbing Steering Columns.- Founded Rane Institute for Employee Development.
1995
- TQM launched under guidance of JUSE, Japan2000
- Rane Brake Linings Limited wins Deming prize.2003
- Rane Engine Valves Limited wins Deming prize.- Rane TRW Steering Systems Limited (SGD) wins Deming prize.- Invested in High Pressure Die Casting products.
2005
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Product Range
Rane Engine Valves LimitedEngine Valves, Valve Guides, Tappets
Rane (Madras) LimitedManual Steering & Suspension Systems
Rane Brake Linings Limited Rane TRW Steering Systems LimitedBrake Linings, Disc Pads, Clutch Facings and
Composite Brake BlocksPower Steering Systems, Seat Belt Systems
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Product Range …
Kar Mobiles LimitedLarge Engine Valves for Automotive & Defence
Applications
Rane NSK Steering Systems LimitedEnergy Absorbing Steering Columns
Rane Diecast LimitedHigh Pressure Die Casting Products
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Technology Alliance
World Class Technology
TRW Automotive US LLCPower Steering Systems, Ball Joints,
Seat Belt Systems, Engine Valves.
NSK, JapanEnergy Absorbing Steering Columns and
Manual RCB Steering Gears.
Nisshinbo Ind., JapanBrake Linings, Disc Pads, Clutch Facings.
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Manufacturing Locations
Locations
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Group Sales
Sales by Product Lines for year 2005 - 06
Rane Group sales for the year 2005 - 06 : INR 12000 Million (~271 million USD)
Power SteeringSystems
Manual Steering &Suspension Systems
Safety RelatedSystems
Friction MaterialProducts
Valve TrainComponents
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GROUP SALES
Sales by Markets for year 2005 - 06
70%
4%
13%
13%
OEM
Replacement
Replacement
Others
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GROUP SALES BY INDUSTRY
Sales by Industry for year 2005 - 06
13%
4%33%
37%
8%
5%
PassengerCars
TwoWheelers
Tractors
UtilityVehicles
Medium and Heavy Commercial Vehicles Light Commercial
Vehicles
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Major Customers - Domestic
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Major Customers - Worldwide
USAUK Germany South Africa
UKJapanGermany USA
Thailand AsiaGermanyEurope & USA
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Export Destinations
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Facilities
Modern Manufacturing Facilities
Continuously investing in creating Modern Manufacturing Facilities
Ball Joint line Engine Valve line
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Facilities…
State of the art Product Development and Testing Capabilities
CAD/CAE Software - CATIA, PRO-E, IDEAS, ADAMS Diesel Engine Test Bed for Engine Components
Torsion Bar Test Rig for Power Steering Gear Components
Computer Controlled Test Rigfor Ball Joints
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Facilities…
State of the art Product Development and Testing Capabilities…
Dust Seal Test Rig for Ball Joints
Railway Dynamometer for Composite Brake Blocks
Multi Gauging Testing Equipment for Engine Valves
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Quality Management
Recognition by Customers
Rane Engine Valves Limited
(Deutz, Germany - Supplier Award 2003)
Rane Engine Valves Limited
(Maruti Udyog Outstanding Overall Excellence 2003-04)
Rane TRW Steering Systems Limited (Steering Gear Division)
(Hyundai Motor India for Best Co-operation 2004)
Rane NSK Steering Systems Limited
(Toyota Kirloskar Motor Award for Best Improved Supplier 2005)
Rane Engine Valves Limited
(Tata Cummins Limited, Best Supplier Award for 2005-06)
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Quality Management…
Accreditation
Four Companies with TS 16949 certification
Nine Plants QS 9000 certified
Eleven Plants ISO 9000 certified
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Quality Management…
TQM – A way of Life
2003 – Rane Brake Linings Limited wins Deming Prize
2005 – Rane Engine Valves Limited wins Deming Prize
2005 – Rane TRW Steering Systems Limited (SGD) wins Deming Prize
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Human Resource Development
HR Vision & Initiatives
HR Vision: To stimulate and nurture the intrinsic desire in people to learn, growand enhance performance to achieve success and growth.
Each employee spends 2% of annual working hours on training.
Total employee involvement is encouraged through various initiatives.
Continuous education is imparted through the Rane Institute for EmployeeDevelopment.
Rane Institute for Employee Development
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Corporate Social Responsibility
Active Environmental Concern
Thirteen plants accredited to ISO 14001 certification.
The plant set standards higher than mandated by law to continuously reduce industrial waste and pollutants.
Eco Friendly Atmosphere Dust Free Environment
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Corporate Social Responsibility
Participation in Community Development
Rane group contributes to societal causes.
All plants involved in development activities in their neighborhood, mainly in the areas of education and health.
Donation of a building block to a hospital in Chennai
Supporting the largest eye hospital in Chennai
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SHAREHOLDING PATTERN
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SHAREHOLDING PATTERN
RHL
RIL51%
RBL19.5%
RML20%
REVL33.6%
RTSSL50%
RNSSL50% RDL
75%KML
42.2%
23.2%
10.8%
49% 7.23%
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FINANCIAL PERFORMANCE
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FINANCIAL PERFORMANCE TREND
Rs. M
Elements 2001-02 2002-03 2003-04 2004-05 2005-06 CAGR
Gross Sales 6,240 6,926 8,725 11,232 11,933 18%
Net Sales 5,415 6,038 7,638 9,858 10,461 18%
PBDIT 1,002 1,158 1,526 1,819 1,849 17%
Profit before Tax 567 685 1,143 1,539 1,501 28%
Profit after Tax 393 455 846 1,039 1,022 27%
PB DIT Margin 19% 19% 20% 18% 18%
PBT Margins 10% 11% 15% 16% 14%
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NET SALES PERFORMANCE
5,4156,038
7,638
9,85810,461
0
2,000
4,000
6,000
8,000
10,000
12,000
01-02 02-03 03-04 04-05 05-06
Rs.
M
CAGR of Growth in Net Sales over the last five years is 18%
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EXPORT PERFORMANCE
424564
766
1,191
1,379
0
200
400
600
800
1,000
1,200
1,400
1,600
01-02 02-03 03-04 04-05 05-06
Rs.
M
Exports CAGR 34%
Exports moved up from 8% to 13% of sales over the last five years
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RETURN ON NETWORTH
22% 22%
34% 34%
27%
0%
5%
10%
15%
20%
25%
30%
35%
40%
01-02 02-03 03-04 04-05 05-06
%
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RETURN ON OPERATING ASSETS
20%25%
35%37%
33%
0%
5%
10%
15%
20%
25%
30%
35%
40%
01-02 02-03 03-04 04-05 05-06
% o
n O
pera
ting
Ass
ets
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CAPEX
192
322
466
690640
0
100
200
300
400
500
600
700
800
01-02 02-03 03-04 04-05 05-06
RS
. M
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FINANCIAL PERFORMANCE FIRST HALF 2006-07
Rane Group registered a growth in sales of 12% in the first half of 2006-07
RANE GROUP SEP 05
Elements RML REVL RBL KMLRANE
GROUP SEP 06
Growth
5,918 Gross Sales 1,752 968 984 374 6,691 13%
5,114 Net Sales 1,545 869 850 343 5,787 13%
942 PBDIT 137 132 106 27 981 4%
730 Profit before Tax 83 102 86 29 798 9%
477 Profit after Tax 58 67 64 17 524 10%
18% PBDIT Margin 9% 15% 13% 8% 17%
14% PBT Margins 5% 12% 10% 8% 14%
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FINANCIAL POSITION – HY 2006-07 -SEP 2006 Rs. M
RANE GROUP 31.3.06
Elements RML REVL RBL KMLRANE GROUP 30.9.06
539 Share Capital 102 52 72 22 578 3,273 Reserves and Surplus 272 867 1,017 201 3,690
221 Deferred Tax Liability 71 48 76 4 233 4,033 Networth 444 967 1,165 228 4,501
1,310 Borrowings 476 289 346 85 1,519
5,343 Total 919 1,255 1,511 313 6,020
2,936 Net Fixed Assets 532 660 621 122 3,167 -
1,697 Net Current Assets 387 454 397 191 1,723
710 Investments 0 142 493 0 1,130 -
5,343 Total 919 1,255 1,511 313 6,020
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OUTLOOK
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OUTLOOK - ECONOMY & AUTOMOBILE SEGMENT
The Indian economy is poised for accelerated growth.
GDP is forecast to grow over the next five years at an average of 8% p.a. as against the preceding five year average of 6% p.a.
Rane’s assessment of of five year growth, projects the following CAGR
Passenger Car 12%Multi Utility Vehicles 16%Light Commercial Vehicles 14%Medium and Heavy Commercial Vehicles 10%Farm Tractors 13%Two and three wheelers 17%
Indian Auto Component Industry, being a preferred outsourcing hub, provides significant opportunities for growth
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LOOKING AHEAD
TQM - the bedrock for pursuing excellence across Rane Companies
Exports, a focus area
New Products
Lean Production System
Resource Productivity
Rane’s Market leadership, coupled with focus on Exports, would see the Group doubling Turnover over the next five years
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DISCLAIMERThis presentation contains certain forward looking statements concerning Rane’s future business prospects and business profitability, which are subject to a number of risks and uncertainties and the actual results could materially differ from those in such forward looking statements. The risks and uncertainties relating to these statements include, but not limited to risks and uncertainties regarding fluctuations in earnings, our ability to manage growth, competition ( both domestic and international), economic growth in India and the target countries for exports, ability to attract and retain highly skilled professionals, government policies and action with respect to investments, fiscal deficits, regulations., etc interest and other fiscal costs generally prevailing in the economy. The company does not undertake to make any announcement in case any of theseforward looking statement become materially incorrect in future or update any forward looking statements made from time to time by or on behalf of the Company.
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THANK YOU
