Rane Holdings Ltd

- Rane Group has an immediate visibility of INR 80 crores and a potential of approximately INR 250 crores incremental orderbook related to their Mexico subsidiary investment plan. - The Mexico plant's revenue generation is expected to start in the second half of 2025. - One customer order has already been secured for production beginning in the second half of 2025, with expectations to secure more orders between now and then. - The strategy includes diversification by targeting both EV and non-EV segments in North America to reduce risk. - The group's Request for Quotation (RFQ) pipeline has increased over the last 12-18 months due to global "China plus one" strategy adoption by European and American customers, indicating growing export opportunities and a hopeful conversion of increased RFQs into business.

- No immediate plans for new debt or equity fundraising were mentioned; focus is currently on completing the merger expected by January 2025. - Post-merger, restructuring of debt or monetizing assets (like real estate) may be considered, but specifics will be clearer 6-9 months down the line. - The management is working on various plans to reduce existing debt and interest burden. - The merger is expected to improve access to capital and negotiation capabilities for future growth, making fundraising easier if needed. - Average annual capex is expected around INR 300-350 crores to support growth, funded by internal cash flows. - No current inorganic growth activities (like acquisitions) planned until merger completion; future acquisitions remain a strategic option.

- The group has been investing on average around INR 140-150 crores annually and plans to continue this level of investment assuming strong automotive market growth. - Average annual capex during the upcycle has been around INR 300-350 crores, including joint ventures, with a significant portion directed to seatbelt and airbag businesses. - A new subsidiary is being set up in Mexico with an initial investment of $3-6 million aimed at nearshoring and export growth, expecting revenue generation to start in the second half of 2025 with gradual scale-up. - The Mexico plant will begin with assembly and limited machining, expanding value addition as orders increase. - Focus is on both EV and non-EV segments to diversify risk and drive growth, especially in export markets like Europe and the U.S. - Debt reduction and cost optimization remain priorities post-merger, with major restructuring and capex plans to be clearer 6-9 months after merger completion.

- Automotive industry has seen good growth over the last 24 months, with passenger vehicles at an all-time high and two-wheelers nearly at peak levels. - Commercial vehicle segment is also moving towards record highs. - Capacity utilization is currently in the high 75%-80% range and could reach up to 85% seasonally. - The merged entity aims for higher growth supported by synergies and increased exports. - Company expects strong single-digit to double-digit growth if the automotive market remains robust. - Near-term investment plans include a subsidiary in Mexico targeting exports with expected revenue generation starting in the second half of 2025. - Exports opportunity is growing, fueled by the China plus one strategy and new sales offices in U.S. and Europe. - The merged group anticipates unlocking value and faster growth through cross-selling and leveraging geographical strengths. - Focus on EV segment exports is increasing, but over 85% of sales remain EV agnostic, reducing revenue risk.

- The automotive industry has seen strong growth in the last 24 months with passenger vehicles at all-time highs, two-wheelers near peak, and commercial vehicles (CVs) trending upward, supporting higher capacity utilization (~75-80%, potentially up to 85% seasonally). - The merged entity is expected to benefit from synergies, cost optimizations, enhanced operational and financial efficiencies, and better capital access, aiding future growth. - Export business growth is accelerating, driven by the China plus one strategy, with increased RFQs and strengthened sales presence in the US and Europe. - The merger creates a larger, diversified entity with increased scale, expected to drive faster growth and higher returns for shareholders. - Capex is forecasted around INR 300-350 crores annually, supporting growth and new ventures such as Mexico-based expansions. - Debt reduction remains a strategic priority, which will improve profitability and enable further investments. - Overall, the group targets strong single to double-digit growth in earnings and profitability post-merger.