German Firm ZF Becomes Majority Stakeholder In Rane TRW Steering Following Acquiring An Additional Stake
The declaration boosted the stock of Rane Holdings, which ended its intraday session by adding Rs 46.40 apiece, marking the closing price of Rs 645.90 per share.
German company ZF has become a majority shareholder in its Joint Venture with Rane Group -- Rane TRW Steering Systems -- after acquiring an additional one per cent stake in the company for Rs 20.16 crore.
The declaration boosted the stock of Rane Holdings, which ended its intraday session by adding Rs 46.40 apiece, marking the closing price of Rs 645.90 per share, up 7.74% from its previous intraday close. The stock hit an intraday high of Rs. 674.95 and an intraday low of Rs 631.60.
According to a press statement, both partners previously owned an equal stake in the firm, but after buying out an additional percent stake, ZF has become the majority shareholder with 51 percent in the JV.
In the future, the joint venture will operate under the market name of ZF Rane Automotive India, reflecting enhanced cooperation between the companies.
Rane and TRW entered into the strategic partnership in 1987to produce steering systems for commercial vehicles. A decade later, the company added occupant protection systems for passenger cars.
In 2015, TRW was purchased by ZF Group, which currently has five plants in India where it manufactures steering gears, airbags and seat belt systems.
In 2019, Rane and ZF opened the new occupant protection systems plant in Tiruchirappalli (Trichy), Tamil Nadu.
“India is a very important market for ZF, and we want to grow sustainably here. By acquiring a majority stake from our long-standing partner Rane, we aim to further expand both our passenger car and commercial vehicle business for our customers in the India region," said Holger Klein, Member of the Board of Management, ZF Group in a statement.
This joint venture will further strengthen the companies abilities to offer newer technologies, introduce new products and go local with Rane Group as a strategic partner to leverage competence, aligned with ZF's Refresh India strategy, the German firm said.
ZF operates in India through three subsidiaries, four joint venture partners and eight engineering centres. The regional headquarter of ZF India Pvt Ltd, spare parts for automotive products provider, is based at Chakan in Pune.
ZF in India has an employee headcount of 13,000, which includes its JV partners, as per the release.