ZF Takes Majority Stake in Indian JV with Rane Group
ZF Friedrichshafen AG strengthens its foothold in the Indian market by acquiring a majority stake in the Rane TRW Steering Systems joint venture, aiming for sustainable growth and enhanced collaboration under the name ZF Rane Automotive India.
Friedrichshafen, Germany- ZF Friedrichshafen AG., an automotive safety products, has bolstered its presence in the Indian market by increasing its shares to become the majority shareholder in the Rane TRW Steering Systems joint venture. Previously, both ZF and the Rane Group held equal shares in the venture, which employs approximately 3400 individuals. Following this development, the joint venture will operate under the name ZF Rane Automotive India, symbolizing the deepened collaboration between the partners.
Dr. Holger Klein, Member of the Board of Management (BOM) at ZF Group, emphasized the significance of the Indian market, stating, "India is a very important market for ZF, and we aim for sustainable growth here." By acquiring a majority stake from Rane, ZF intends to expand its passenger car and commercial vehicle business in the region, catering to the needs of its customers.
This strategic move will empower the joint venture to offer advanced technologies, accelerate the introduction of new products, and localize operations, leveraging the expertise of the Rane Group as a strategic partner, aligning with ZF’s Refresh India strategy.
Mr. Harish Lakshman, Vice Chairman of the Rane Group and Managing Director of Rane TRW Steering Systems Pvt. Ltd., expressed optimism about the enhanced cooperation, highlighting the long-standing partnership between the two entities and the transfer of 1% stake to ZF as a significant step forward.
Mr. Suresh KV, President of ZF India Pvt. Ltd., underscored the complementary nature of the partners, emphasizing their shared commitment to serving the Indian customer base with ZF engineering and technology, complemented by Rane's customer connectivity and operational excellence.
Established in 1987 by Rane and TRW, the joint venture initially focused on producing steering systems for commercial vehicles. Over the years, it expanded its portfolio to include occupant protection systems for passenger cars. Following ZF's acquisition of TRW in 2015, it became a co-owner of the venture, which now operates five facilities across India, manufacturing steering gears, airbags, and seat belt systems. In 2019, the partners inaugurated a new occupant protection systems plant in Tiruchirappalli (Trichy), Tamil Nadu, further enhancing their production capabilities in the region.
