Rane Holdings Ltd

- No specific mention of immediate new fundraising through debt or equity. - Focus is on reducing existing debt levels post-merger to strengthen the balance sheet. - Management intends to leverage the combined stronger balance sheet after merger for raising capital at potentially lower costs. - No clear plans shared yet regarding equity infusion, especially related to the NSK Rane JV—currently no equity inclusion planned but updates will be shared when available. - Overall approach is cautious, prioritizing consolidation, debt reduction, and preparing for future investments once the financial position is strong.

- Rane Group plans to invest about Rs. 1,000 crores over the next three years as CAPEX (Page 5, 18). - Expected return on capital employed for these investments targets 15%-20%+ depending on product/business (Page 18). - 55% of this CAPEX will be invested in JV ventures, and 45% in the merged RML group (Page 11). - Recent capital investment includes Rs. 260 crores on occupant safety side (inflator and webbing plant) under the PLI scheme, aiming for margin improvement via backward integration (Page 9). - Local production of webbing has started; inflator production to commence soon, expected to improve margins by about 1.5% over a year (Page 9). - Current focus is on consolidating business, creating a single balance sheet, reducing debt before new technology investments, and preparing for EV-related products (Page 14, 12).

- Rane Group expects growth driven by new business wins, including Rs. 550 crores of new orders for Rane NSK with production starting in 2026-27. - Favorable market outlook post-elections anticipated to boost segments like farm tractor and commercial vehicles, benefiting Rane Madras. - Export growth will continue but at a moderated pace compared to the strong 40% growth in prior years; new large programs planned for 2026 and beyond. - Aftermarket business poised for enhanced growth post-merger due to consolidated scale (~Rs. 600-700 crores business) and synergy opportunities. - Rane Brake Lining exports grew by 33%, with strong two-wheeler aftermarket sales. - ZF Rane steering business grew 12% despite weak M&HCV market; occupant safety business rose 20%, aided by safety regulation changes. - Overall Rane Group achieved highest-ever aggregate sales of ~Rs. 7,200 crores with 8% growth in FY'24.

- Rane Madras (RML) margins expected to improve with pickup in tractor and M&HCV segments, but near-term improvement will be slow. Margin recovery to previous ~10% levels is contingent on segment growth and cost reductions. - Rane NSK margins remain challenged; margin improvement anticipated only beyond two years, supported by new higher-margin business rolling out from 2026-27. - New businesses of Rs. 550 crores booked in NSK expected to be incremental, impacting earnings from 2026 onwards. - Rane Brake Lining saw 10% sales growth; aftermarket and export margins better than domestic OEM, but export growth rate to moderate. - Post-merger, operational efficiencies and tax credit of approximately Rs. 150 crore (tax benefits) expected to aid profitability. - Aim for 15%-20%+ return on new CAPEX investments (~Rs.1,000 crore planned over 3 years), aiding future profit growth. - Dividend distribution targeted at ~50% of PAT in Rane Holdings, indicating confidence in earnings stability.

- Rane NSK joint venture has won new business worth Rs. 550 crores across various customers (page 4, 10). - Rane Madras and merged entities have a pipeline of new orders, including a significant Rs. 1,000 crore CAPEX plan over the next three years, with 55% from JV and 45% from merged RML (page 11, 18). - The pipeline of RFQs (Requests for Quotations) has increased in the last 18 months across product lines, benefiting from the "China Plus One" strategy (page 15). - Mexico plant currently has one order for ball joints, with intentions to localize further and expand customer base (page 15). - New businesses typically go into production in 2026 and 2027, leading to margin improvement and revenue growth over the medium term (page 10).