Rane Holdings Ltd Management Discussions

1. Company Overview

Founded in 1929, Rane Holdings Limited, through its Group Companies is engaged in the manufacturing and marketing of automotive components for the transportation industry. The Group is a preferred supplier to major OEMs in India and abroad. The Group Companies manufacture Steering and Suspension systems, brake components, engine components, occupant safety systems and light metal casting products. The products serve the transportation industry including Passenger Vehicles, Commercial Vehicles, Farm Tractors, Two-wheelers, Railways and Stationary Engines. With modern manufacturing facilities across 30 locations in India and one in the Mexico, business development establishments cater to regions across North America, Europe and Japan. Rane Groups products are marketed across 30+ countries.

During the year under review, its operating listed subsidiaries, Rane Brake Lining Limited and Rane Engine Valve Limited, amalgamated with and into Rane (Madras) Limited (RML), another listed subsidiary. As a result of this amalgamation RML has expanded its business portfolios to include brake products, engine valve products besides consolidating its aftermarket platform. Also, during the year under review, the Company acquired entire shareholding in Rane Steering Systems Private Limited (RSSL), earlier a joint venture company with NSK Limited, Japan. RSSL is into the business of manufacturing Electric Power Steering (EPS) and Manual Steering Column (MSC) for passenger cars and commercial vehicles.

2. Economic Review 2.1. Global Economy

In 2024, the global economy experienced modest but steady growth of 3.3%. Despite the ongoing challenges from geopolitical tensions and shifting trade dynamics, inflationary pressures eased across most economies, supported by stabilizing commodity prices and balanced monetary policies. Central banks remained cautious, aiming to support growth while maintaining price stability. Global trade patterns continued to evolve, with a greater focus on supply chain diversification and regionalization, creating opportunities for countries with strong manufacturing ecosystems and competitive advantages.

According to the International Monetary Fund (IMF), global growth is expected to slow-down to 2.8% in 2025. The introduction of new tariffs by the U.S. and similar responses from its major trading partners are already impacting global trade, weakening business confidence, and adding to market uncertainty. Advanced economies are expected to grow slowly, with the U.S. projected at 1.8% in 2025, and the Eurozone likely to grow by just 0.8%. Growth in emerging and developing economies is expected to be at 3.7%, with countries like China expected to be more affected due to their higher exposure to U.S. trade actions. The unpredictability in trade policy is making it difficult for businesses, adding pressure on the exchange rates.

2.2. Indian Economy

India has shown resilience despite the uncertain global environment. Indias GDP growth for FY25 is estimated at 6.5%, driven by strong domestic demand, government led infrastructure development, improved private investment and continued momentum in manufacturing and services. Key indicators reflect broad-based economic strength: Gross GST collections reached a record of 22.1 lakh crores, marking a 9.4% year-on-year increase, while e-way bill generation grew by 20%, reflecting increased movement of goods across the country.

The manufacturing sector maintained healthy momentum throughout the year. The Manufacturing Purchasing Managers Index (PMI) reached an eight-month high in March 2025, pointing to robust production activity, improved order books, and growing business confidence. The governments continued focus on infrastructure, supply chain localization, and policy support contributed to this positive environment.

Retail inflation moderated to 4.6% in FY25, the lowest level in several years. This decline was supported by stable food prices and effective policy interventions. The easing of inflation provided room for the Reserve Bank of India (RBI) to adopt a more accommodative stance, including a cut in the repo rate, which created a favourable environment for investment and consumption.

As per RBIs forecast, Indias GDP expected to grow at 6.5% in FY26 supported by the strength in Indias rural economy, recovery in the industrial sector and resilience in the services sector, while factoring in the headwinds from global trade disruptions, which continue to pose downward risks.

3. Industry Review Automobile Industry 3.1. Global Automobile Industry

After facing a few difficult years due to the pandemic and supply chain issues, the industry is now adjusting to new challenges like rising costs, changing trade policies, and evolving customer preferences. Although overall vehicle sales have improved in many parts of the world, the pace of growth remains uneven.

In the United States, new vehicle sales reached 15.9 million units in 2024 up 2.2% from the previous year. This growth was helped by better availability of cars, increased discounts, and rising interest in hybrid vehicles. Battery Electric Vehicle (BEV) sales also hit a record of 1.24 million units. Looking ahead, the National Automobile Dealers Association expects U.S. car sales to rise to 16.2 million units in 2025. But with the introduction of new trade tariffs and policy changes, the outlook remains uncertain.

According to the European Automobile Manufacturers Association (ACEA), the European Unions (EU) car market saw a modest growth of 0.8% in 2024, reaching a total annual volume of 10.6 million units. In Europe, the vehicle production is expected to fall in 2025. High vehicle prices, reduced government support for electric cars, and weaker economic conditions, especially in Germany and France, are keeping demand in check. Automakers are also preparing for stricter EU emission rules, which are influencing what kinds of vehicles they offer. The global automobile industry is going through a major shift in 2025 with the impact of geopolitical tensions and shift in trade policies. Technological changes, regulatory norms and evolving customer preferences continue to shape the priorities of vehicle makers and their responses to the demand environment.

3.2. Indian Automobile Industry

Indias automobile industry continues to be a key contributor to the countrys manufacturing growth and economic development. As the worlds third-largest automotive market, India has benefitted from a combination of evolving consumer preferences and higher discretionary spending.

The Passenger Vehicle (PV) segment witnessed moderate growth of 3% robust demand for Utility Vehicles (UVs), which grew by 14%.

UV volume increase was fuelled by a slew of new model launches featuring advanced features and contemporary designs that resonated well with consumer preferences. In contrast, the Passenger Car segment (comprising sedans and hatchbacks) experienced a decline in production volume in FY25, with a drop of around 12%. Cleaner fuels like CNG and strong hybrids gained traction, while EV growth remained moderate.

Commercial Vehicle (CV) segment witnessed de-growth of 4%. The Medium and Heavy Commercial Vehicles (M&HCV) segment experienced a challenging year with volume decline of 3% primarily due to disruptions in infrastructure activities during the first half of FY25, partly due to the general elections. The Light Commercial Vehicles (LCV) segment reported volume decline of 5% due to factors such as elevated financing costs and a slowdown in demand from sectors like e-commerce. Also, increased penetration of electric three-wheelers also posed some competition to certain LCV applications, particularly in last-mile connectivity. Tractors volume grew by 6% with improved farmers sentiment and favourable weather conditions in key regions. Two-wheelers segment witnessed robust volume growth of 9% driven by strong demand from rural and export markets. Sale of Electric Two Wheelers crossed 1 million units.

Industry Segment	Growth in %
(Production figures)	(YoY change)
Vehicles	FY25	FY24
Passenger Cars (PC)	(12)	(9)
Utility Vehicles (UV)	14	23
Multi-Purpose Vans (MPV)	8	3
Passenger Vehicles (PV)	3	7
Light Commercial Vehicles	(5)	3
(LCV)
Medium & Heavy Commercial	(3)	3
Vehicles (M& HCV)
Commercial Vehicles (CV)	(4)	3
Farm Tractors (FT)	6	(8)
Two Wheelers (2W)	11	10

Source: Society of Indian Automobile Manufacturers (SIAM)

3.3. Indian Auto Component Industry

The Indian auto component industry stands as a critical pillar of the countrys manufacturing sector, employing over five million people and contributing approximately 25% to Indias manufacturing GDP. In 2024, the industry is estimated to be valued at USD 74 billion, accounting for about 3.5% of the global auto component market. With a strong historical growth trajectory of 7–8% CAGR, the sector is poised for accelerated expansion, expected to triple in value to around USD 200 billion by 2030, at a projected CAGR of 16%.

This growth is being driven by multiple structural tailwinds. Rising disposable incomes, growing vehicle penetration, and changing customer preferences are transforming domestic demand patterns. At the same time, Indias strategic integration into global supply chains is enhancing its role as a preferred sourcing hub. The auto component industrys sales to Original Equipment Manufacturer (OEM) sales in the domestic market are projected to rise from USD 62 billion to USD 89 billion by 2030, while exports are expected to grow significantly from USD 21 billion to USD 100 billion during the same period.

The industrys global aspirations are supported by consistent investment in R&D, a growing emphasis on quality and cost competitiveness, and the increasing localisation of manufacturing. Indian auto component manufacturers are actively adapting to global disruptions, especially the transition toward cleaner powertrains, lightweight materials, and smart mobility solutions. This is opening up new avenues for innovation and expanding access to future-ready markets.

3.4. Indian Automotive Aftermarket Industry

The Indian automotive aftermarket industry is undergoing a significant transformation, driven by a rapidly growing vehicle parc and changing consumer behaviour. According to the Automotive Component Manufacturers Association of India (ACMA), the market is expected to grow from its current valuation of USD 10 billion to USD 16 billion by 2030. This growth is underpinned by an expanding base of over 340 million registered vehicles, which is projected to increase at a Compounded Annual Growth Rate (CAGR) of approximately 8% over the next five years.

The rising vehicle population is expected to drive strong demand for maintenance, repair, replacement parts, and value-added services, thereby accelerating aftermarket growth across the country. The evolution of the aftermarket is also being shaped by broader shifts in consumer expectations and industry practices. Traditional business models are giving way to more Direct-to-Consumer (D2C) channels and digital platforms that enhance transparency, convenience, and service quality. The growing customer awareness and increasing prevalence of online retail channels is helping enhanced access to aftermarket products.

Moreover, the transition towards electric mobility is opening new opportunities for component innovation and specialised service offerings. As Electric Vechicles (EVs) gain traction, the aftermarket ecosystem will evolve to support new categories of parts and diagnostic tools, positioning India as a responsive and competitive player in global supply chains.

In this dynamic landscape, the Indian automotive aftermarket is set to become a key pillar of the broader auto component industry, offering significant growth potential over the coming decade.

3.5. Opportunities and Threats

Indias automotive sector stands at a pivotal moment, offering multiple opportunities for growth while also navigating a dynamic and challenging environment. The countrys emergenceasthethird-largestautomotivemarket globally is underpinned by a strong domestic consumption base, supportive policy initiatives and a growing reputation as a manufacturing and export hub. Government schemes such as the Production Linked Incentive (PLI) aiming at increased localisation continue to attract substantial investments and drive adoption of advanced automotive technologies.

The auto component industry is poised for significant expansion, with projections indicating industry doubling by 2030, supported by strong exports and rising demand for localized content. Similarly, the aftermarket segment is evolving rapidly, driven by an expanding vehicle base, growing consumer awareness and preference for digital engagement.

Indias strategic position in global supply chains also presents a unique opportunity. As global OEMs diversify sourcing away from traditional markets, Indias cost competitiveness, engineering talent and improving logistics infrastructure position it as a preferred partner. Furthermore, disruptions in global trade and supply chains are opening space for Indian manufacturers to integrate into international networks and capture greater market share. However, the industry must remain cautious of several headwinds. Geopolitical tensions and fluctuating raw material costs continue to pose supply chain risks. Trade protectionism and policy uncertainty, particularly in key export markets, could impact investment flows and export momentum. Domestically, affordability challenges in the mass vehicle segment, limited rural income growth and employment concerns could affect long-term demand.

Additionally, the fast-paced shift to electric mobility, while promising, could challenge companies that fail to keep pace with these changes and risk losing market relevance. Regulatory pressures related to emission standards, safety norms, and environmental compliance add further complexity.

3.6. Outlook

The Indian automobile industry is well-positioned to maintain long-term momentum, supported by policy stability, expanding production capacity, a maturing EV ecosystem and deepening integration into global supply chains. Continued focus on domestic manufacturing and innovation will remain central to driving future growth The outlook for the Indian automotive industry remains optimistic, underpinned by robust domestic consumption, supportive policy measures, and growing focus on localisation. Initiatives such as the Production Linked Incentive scheme, FAME-II and infrastructure development are expected to boost investment and enhance competitiveness across segments. Rising exports, increasing adoption of digital technologies on the shop floor and a strengthening aftermarket ecosystem further support the industrys long-term potential. However, the industry will need to adapt to evolving regulatory frameworks, global trade dynamics and shifting consumer behaviour to maintain sustainable and inclusive growth.

4. Financial Review Financial Highlights

Standalone Financial Highlights

• Total Revenue was 143.66 Crores for FY25 as compared to 150.47 Crores for FY24, decrease of 4.53%.

• Operating revenue decreased to 140.76 Crores in FY25 from 146.86 Crores in FY24 due to lower trademark fee income.

• Other income decreased to 2.90 Crores in FY25 from 3.61 Crores in FY24 owing to the gain on disposal of property plant and equipment during FY24.

• EBITDA stood at 86.80 Crores as compared to 98.79 Crores during FY24, decrease of 12.14%.

• Net profit stood at 68.11 Crores for FY25 as compared to 73.06 Crores for FY24.

Consolidated Financial Highlights

• Total revenue was 4,380.34 Crores for FY25 as compared to 3,543.98 Crores for FY24, an increase of 23.60%.

• EBITDA stood at 346.63 Crores for FY25 as compared to 335.64 Crores for FY24, recording an increase of 3.27%.

• Net profit stood at 220.85 Crores for FY25 as compared to a profit of 149.61 Crores for FY24.

FY25 consolidated financial performance includes line by line consolidation of RSSL as a subsidiary effective from September 19, 2024.

Standalone

Ratios	Unit of Measurement	March 31, 2025	March 31, 2024	Significant change (_ 25%)	Reason for significant change in FY25
1 Debtors Turnover	Times	8.39	9.80	NA	NA
2 Current Ratio	Times	2.41	3.17	NA	NA
3 Interest Coverage ratio	Times	48.11	20.08	140%	*
4 Debt Equity Ratio	Times	0.10	-	(100)%	**
5 Operating Profit Margin	%	55%	61%	NA	NA
6 Net Profit Margin	%	48%	50%	NA	NA
7 Return on Net worth	%	11%	13%	NA	NA
8 Return on Capital Employed	%	12%	16%	NA	NA

* Higher interest coverage due to lower interest cost during the year. ** Due to fresh term loan availed during FY25.

The other ratios as required under Schedule III are disclosed in Note no.34 to the Financial Statements.

Consolidated

Ratios	Unit of Measurement	March 31, 2025	March 31,2024	Significant change (_ 25%)	Reason for significant change in FY25
1 Debtors Turnover	Times	5.72	5.67	NA	NA
2 Inventory Turnover	Times	5.58	4.69	NA	NA
3 Current Ratio	Times	0.93	1.09	NA	NA
4 Interest Coverage ratio	Times	2.49	3.59	(31)%	*
5 Debt Equity Ratio	Times	0.74	0.91	NA	NA
6 Operating Profit Margin	%	4%	7%	(35)%	*
7 Net Profit Margin	%	5%	4%	NA	NA
8 Return on Net worth	%	18%	13%	38%	**
9 Return on Capital Employed	%	9%	14%	(36)%	*

*Drop in Operating Profit due to adverse product mix.

** Increase due to receipt of Exceptional Income of 176 Crores by RSSL towards settlement amount received from NSK Ltd. Japan.

5. Business Review

5.1. Rane Holdings Limited (RHL)

• The Group aggregate sale for FY25 was 7,413 Crores.

• Group continued to engage in various lean measures to improve productivity.

• Implemented strategic savings initiatives on power, sourcing etc., at the Group level.

• During the financial year, RHL acquired the balance stake of 51% held by NSK Ltd., Japan, in Rane NSK Steering Systems Private Limited (RNSS) and accordingly, it became a wholly owned subsidiary of RHL effective from September 19, 2024. RNSS was thereafter renamed as Rane Steering Systems Private Limited (RSSL). Pursuant to this, the joint venture of the Company with NSK Ltd. has ceased.

5.2. Subsidiaries

5.2.1. Rane (Madras) Limited (RML)

On consolidated basis, total revenue from sale of products decreased to 3364.28 crores in FY25 from 3412.49 crores in FY24. Net profit stood at 37.65 crores in FY25 as against a net profit of 54.76 crores in FY24.

5.2.2. Rane Steering Systems Private Limited (RSSL) [formerly Rane NSK Steering Systems Private Limited]

RSSL registered a total revenue of 1708.05 crores for FY25 as compared to 1727.80 crores for FY24. RSSL earned Net profit of 71.29 crores in FY25 against 10.48 crores earned during FY24. This includes an exceptional income received during FY25 as settlement amount of 176 crores from NSK Ltd., Japan, by RSSL.

5.3. Joint Ventures / Associate Companies

5.3.1. ZF Rane Automotive India Private Limited (ZRAI)

On consolidated basis, total revenue was 2,415.91 crores for FY25 as compared to 2,153.37 crores for FY24, recording an increase of 12.19%. ZRAI earned a net profit of 91.51 crores in FY25 as compared to 106.84 crores earned during FY24. ZRAI successfully Pursuant to this, the joint venture of the Company with NSK Ltd. has ceased. inaugurated a ‘Sled Test facility and an ‘Inflator manufacturing facility at Trichy. The Board of Directors of ZRAI at its meeting held on December 19, 2024, approved the draft scheme of arrangement under Sections 230 to 232 and other applicable provisions of the Companies Act, 2013, for the demerger, transfer and vesting of the Demerged Undertaking comprising of Occupant Safety Division and related investments, into ZF Lifetec Rane Automotive India Private Limited., a wholly-owned subsidiary of ZRAI, on a going concern basis. The said scheme is subject to approval of shareholders & creditors of the respective companies, National Company Law Tribunal and other approvals as may be required.

5.4. Overseas Subsidiaries

The Company operates two overseas subsidiaries viz., (i) Rane Holdings America Inc., USA, to cater to the business development in North America region and (ii) Rane Holdings Europe GmbH, Germany, to cater to the business development in the European region, for Rane group companies.

6. Scheme of Amalgamation

During the year under review, two listed operating subsidiaries of the Company, viz., Rane Brake Lining Ltd. and Rane Engine Valve Ltd. were amalgamated with and into Rane (Madras) Ltd. with effect from the Appointed Date, viz., April 01, 2024.

The amalgamation is expected to result in simplification of the group structure, aligning shareholder interests, enhancing operational efficiency, and achieve diversification in product offerings. Consolidating under a single listed entity is expected to facilitate coordinated business management, achieve synergies in revenue and costs, optimize resources, and improveaccesstocapitalforgrowthopportunities.

The group is poised to take forward this unified approach in customer engagement, supply chain management and administration for an improved organizational capability and leadership.

7. Risk Management

The Company has laid down well-structured procedures for monitoring the risk management plan and implementing risk mitigation measures. The risks are broadly classified into strategic risks, operational risks, financial risks and statutory compliance risks. These risks are rated based on factors such as past year experience, probability of occurrence, probability of non-detection and their impact on the business. The top management reviews the strategic risks, and the risks with high probability and high impact every quarter and presents its report along with a risk mitigation plan to the Board of Directors on a half-yearly basis. The strategic risks are taken into consideration in the annual planning process with their mitigation plan. Other risks are covered as part of the internal audit process and presented to the Audit Committee every quarter. The business process risks, and the related controls are subjected to internal audit and reviewed on a quarterly basis. The risk ratings are revalidated with the top management as part of the internal audit process every quarter. The overall re-assessment of risks at the Company level is carried out and presented to the Board of Directors once in two years for their review.

	Risk	Nature of Risk	Risk Mitigation Strategies
	Industry / Market Risk	70% of revenue is derived from the Indian automotive sector. Hence, any drop in vehicle production will have a significant impact on the Companys business.	The Company constantly strives to:
			(a) Increase revenue from international markets (outside of India).
			(b) Add new products to increase organic revenue and diversify customers across vehicle segments.
			(c) Improve presence in the Aftermarket segment, which presents an opportunity to compensate for any drop in the OE segment.
Strategic
	Technology Obsolescence Risk	Auto industry and customer preference undergo changes, resulting in technology obsolescence.	The Company has consistently delivered cutting-edge technology products with enhanced R&D capabilities, localisation of testing and validation capabilities.
			Proactive engagement with customers at an early stage helps the Company to capture and work on the new technology development.
	Competition	Maintaining market share in the competitive market and availability of unorganised players pose further challenges.	The Companys long-standing relationship with OEMs, state-of-the-art facilities and best-in-class processes help deliver superior value to the customers. The Company periodically conducts customer surveys to understand customer feedback and work in furthering its relationship with the customers.
	Quality / Processes	Quality and delivery are sacrosanct for the safety-critical products supplied by the Group	Skilled workforce, imparting job skill enhancement training, enhancing supplier capabilities and robust manufacturing processes help the Company mitigate quality and delivery risks.
	People Risk	Attrition of key personnel could impact business operations and growth.	The Companys HR processes are constantly upgraded to attract, retain and develop talent. The policies are people-centric and industry accolades on HR practices help attract talent. The dedicated training centre supports in building functional capabilities and developing a strong leadership pipeline.
			The performance management system and other employee engagement initiatives help develop and retain talent.
Operational
	Raw Material (Input) Price Risk	Material cost is a significant part of the cost and volatility in the price of raw material costs will erode margin.	The Company constantly strives to mitigate the input cost increases by:
			(a) Implementing a procurement function that will work on cost-reduction initiatives through alternate sourcing, localisation, etc.
			(b) Negotiating and passing through input cost, which increases suitably to the customers.
			(c) Working on process improvements, yield improvements, etc.
	Currency Risk	The Company is exposed to foreign currency exchange risk as it exports our products to various countries and import raw materials.	The Company uses a multi-pronged approach as suitable to the scenarios. This approach includes:
			(a) Optimally balancing the import and export to create natural hedge.
			(b) Working with customer-to-index prices to mitigate currency fluctuations.
Financial			(c) Taking simple forwards on a rolling basis to protect its export realisation.
	Interest Rate Risk	Use of borrowings to fund expansion exposes the Company to interest rate risk.	The Company manages interest rate risk on the following basis:
			(a) Maintaining optimal debt-equity levels.
			(b) Using internal accruals to fund expansion.
			(c) Constantly optimizing working capital to reduce interest costs.

8. Human Resource Development and Industrial relations

8.1. Talent Development Initiatives

In FY25, the Company focused on the following talent development initiatives: Leadership Development 8.1.1 Leadership Boot Camp (LBC)

To provide new entry-level graduates with valuable real-world experience, Rane Group implemented a mandatory group-wide internship program. As part of this initiative, 46 recent graduates (GET / MT / PGET) were onboarded as interns before transitioning into trainee roles, embarking on their Learning Boot

Camp (LBC) journey with us. The LBC curriculum is meticulously designed to transition graduates from academia to corporate life. Through hands-on experiences, including plant visits, on-the-job training and cross-functional collaborations, they gain a deep understanding of Ranes operations and culture. Mentoring by senior leaders further enriches the development journey.

Over 45 Graduate Engineer Trainees and Management Trainees from the 2023 batch completed their year-long journey at the Ranvocation. The event featured inspiring interactions with business leaders, insightful experience-sharing by the trainees and a variety of engaging activities.

8.1.2 Young Leadership Development (YLD)

YLD is a flagship intervention program that enables individual contributors to successfully transition into first time managers. As part of the ongoing learning engagement journey, 1 YLD participants from earlier batches underwent a two-day workshop curated with the objective of enhancing their business understanding through Rane specific case studies. Participants presented their solutions to the case studies by drawing insights from various modules to a panel of business leaders.

The eighth batch with a participant underwent 5 days of classroom sessions across 3 modules delivered by Shri Dharmasthala Manjunatheshwara Institute for Management Development. To foster development, we organised interactive sessions with business leaders who shared their insights and experiences on leadership effectiveness. One participant from the YLD program underwent an experiential learning program at the Pegasus Institute in Pondicherry, a facility renowned for cultivating leadership skills.

8.1.3 High Potential Leadership Development (HPLD)

The objective of HPLD is to build leadership competencies of high potential talent at department head level and transitioning to plant, functional head level. A mentor form Great Lakes facilitated the participants to identify a live business challenge and enabled them to work on such action learning projects. As part of the HPLD design, the participants underwent an experiential learning program at Pegasus Institute in Pondicherry. The outbound had continuous feedback assessments that helped them to develop receptiveness to feedback and concrete developmental takeaways.

8.1.4 Supervisory Development Program (SDP)

SDP designed to enhance shop floor efficiency and effectiveness was conducted across four batches in Chennai, Trichy, and Hyderabad, covering 120+ participants. The SDP provided participants with essential supervisory skills, focusing on team motivation, performance management, labour laws and safety management for optimal performance.

8.1.5 Leadership Effectiveness

Three experienced leaders underwent an engaging 3-day residential program at Xavier Institute of Management and Entrepreneurship. Participants gained practical tools to drive their own development and contribute to their teams by exploring self-leadership, leading others and leading the organization.

8.1.6. Senior leadership meet

The Plant Head and Function Head Meeting of Rane Group was a significant step toward aligning business objectives with the evolving demands of the market and stakeholders. Bringing together senior leadership, the event focused on strengthening strategies for sustainable growth, operational efficiency, and stakeholder satisfaction. A highlight of the meeting was the keynote address by Sarath Reddy, Founder & Chief Investment Officer, Unifi Capital, who emphasized the critical importance of meeting investor expectations.

8.1.7. Rane Manufacturing Systems Professionals (RMSP)

Launched in June 2017 with the objective of developing manufacturing skills in junior and middle managers across various plant functions, the refreshed Rane Manufacturing Systems Professionals program (RMSP) 4.0 was updated in June 2023. This enhanced version focuses on boosting plant performance by improving technical expertise through two tracks: Basic and Advanced. Emphasizing learner-centric, role-based development, RMSP 4.0 incorporated recent advancements in its curriculum, with three new batches launched during the year. Currently, 102 improvement projects are underway, targeting key areas like productivity, quality, cost, delivery, and safety. During the year, 39 participants have completed the Advanced Stream, and an additional 80 are actively working towards their completion.

RMSP - Technology Day was hosted at ZF Rane Automotive India in Guduvanchery, spotlighting the latest technological advancements and their potential applications within the Rane Group. The event brought together employees from across the organization to foster collaboration and knowledge sharing.

8.2 Learning digital journey

To further support learning and development, weekly microlearning content across themes such as leadership, functional competency, office productivity and wellness were made available to employees through the learning management system. Key initiatives include access to short-term NPTEL certification programs and conversational English skills development through a partnership with The Hindu group. To boost learner engagement, gamification elements such as weekly quizzes, cohort-based learning challenges, and an L&D leader-board are incorporated. The LMS tool is utilized to monitor individual learning development plan progress, and annual refresher e-learning governance courses were also provided.

8.3. Great Place to Work (GPTW)

Driven by a commitment to continuous improvement across all operations, the Rane Group recognizes that employee satisfaction and engagement are crucial for growth, alongside business performance. For nearly a decade, Rane has utilized an Employee Opinion Survey, administered by an external consultant, to provide employees with a platform for open feedback, identify strengths, and pinpoint areas for improvement. As the organization expanded, the need for more efficient and benchmark-driven models for capturing employee sentiment and ensuring employee well-being became apparent.

To this end, the Rane Group has partnered with Great Place to Work (GPTW), a globally recognized authority on high-trust, high-performance workplace cultures. By participating in the GPTW survey, Rane leverages the findings to continuously enhance employee engagement and experiences. Rane Holdings Limited proudly achieved GPTW certification for the fourth consecutive year, underscoring the Groups ongoing dedication to fostering a positive and engaging work environment.

8.4. Wellness at Rane

Rane Group prioritizes the holistic well-being of its employees through a range of comprehensive initiatives. The Wellness Corner app actively encourages healthy habits like regular exercise and mindful eating through engaging challenges. Beyond the app, Rane offers wellness workshops, mental health support, and financial wellness programs, all aimed at empowering employees to achieve balanced and fulfilling lives.

Employee well-being is further supported by robust Health, Safety and Environment (HSE) practices, including thorough ergonomic assessments to optimize workspaces for comfort and productivity.

Fostering both camaraderie and workplace wellness, the Rane Premier League (RPL), an intergroup cricket tournament, brought together the best cricketing talent from across Ranes entities. Ten enthusiastic teams competed fiercely for the winner and runner-up titles.

Continuing its focus on employee wellness, Rane also witnessed significant participation in marathons this year, with an impressive 83% of employees taking part in the Madras Round Table 1 Marathon and 91% in the Freshworks Marathon, demonstrating their enthusiasm for such events.

8.5 Women empowerment at Rane

Rane Group furthered its commitment to womens empowerment through its Women at Work (W@W) initiative. This program aims to cultivate a community of "Engaged, Enthused, and Empowered" women, providing support for their career ambitions while acknowledging and addressing their evolving life demands. The W@W group will benefit from mentorship by an executive coach, with both individual and group sessions designed as a valuable platform for networking, sharing experiences, and accessing resources that promote professional advancement within the organization.

8.6. Industrial Relations

The industrial relations were generally cordial in all the plants of the group companies. The group level industrial relations council works towards the objective of creating a healthy working environment by promoting peace and harmony amongst all segments of employees. The focus areas for the council includes interpretation and implementation of legislations, workforce mix planning for optimal deployment and sharing of best practices.

9. Corporate Social Responsibility (CSR)

Rane Foundation, a public charitable trust founded in the year 1967, is the leading partner for implementing Rane Groups CSR initiatives. The Companys CSR vision is ‘to be a socially and environmentally responsible corporate citizen. The Company continues to focus on four thrust areas for its CSR activities – Education, Healthcare, Environment and Community Development. The Company has implemented several projects in the field of Education, Healthcare and Community Development.

9.1 Education:

The Rane Vidyalaya, established at Trichy in the year 2018 under the aegis of Rane Foundation has stepped into its seventh academic year. Rane Vidyalaya was recognized by Directorate of School Education, Tamil Nadu in 2018 and is affiliated to the Central Board of Secondary Education, New Delhi. In the academic year 2024-25, it reached a student strength of 924 in its seventh year of operations, operating from LKG to X. The school has achieved 100% pass percentage in the X standard board examination in the academic year 2024-25. The school will begin its higher secondary education with the addition of class XI from the academic year 2025-26.

The Rane Polytechnic, established at Trichy in the year 2011 under the aegis of Rane Foundation completed its fourteenth academic year. The institution is accredited by the National Board of Accreditation (NBA) for its Diploma in Mechanical Engineering program. So far 2120 students completed their diploma program. 123 students completed the program in the academic year 2024-25, of which 99 students opted for placements and 100% placement was achieved. Considering the declining demand and enrollment for the polytechnic courses at the national and state level, it has been decided by the Rane Foundation to progressively close the polytechnic institution by the end of academic year 2025-26. Necessary approvals have been secured from DoTE & TN Government The application for progressive closure is pending with AICTE from January 2024.

Rane Foundation also embarked on its next major project to establish one more CBSE school in the name "Rane Vidyalaya – Sethurapatti" to cater to the needs of providing quality wholesome education to rural children in and around Sethurapatti village. The school will start its operations for the primary classes from the academic session 2025-26.

Rane Foundation in association with various educational institutions carried out the following CSR initiatives:

• Extended support to the Gopalapuram Educational Society towards maintenance and operations of Boys & Girls Schools.

• Supported 20 Single Teacher Schools in association with Swami Vivekananda Development Society.

• Extended support to Mensa-Balamandir towards education for underprivileged children.

• Provided Hard disks, class room speakers, equipment for Smart classroom to Ramakrishna Mission Students Home.

9.2. Healthcare:

Rane Foundation through strategic partnerships with established organisations contributed medical equipment to not for profit hospitals of repute, making a significant impact on society across various specialties such as Ophthalmology, Dialysis and public healthcare at an affordable cost, as outlined below:

• Procured Photo Slit Lamp and pure point green laser equipment to Sankara Nethralaya to enhance the ophthalmic care

• Contributed to IT server cum storage units and advanced operation theatre monitors with Central Monitoring Systems (CMS) to the Child Trust Hospital.

• SupportedVoluntaryHealthServices,amulti-speciality hospital with Ophthalmology and Dental Equipment.

• Supported Sringeri Sharada Equitas Cancer

– Multi-speciality Hospital, a charitable hospital, with microwave ablation system.

• Supported Apollo Hospitals Enterprise Limited in conducting Tele-Ophthalmology Camp at Trichy including delivery of spectacles.

• Supported Tamilnadu Kidney Research Foundation (TANKER Foundation), a non-profit charitable trust with Hemodialyisis machine with blood pressure monitor.

10. Health, Safety & Environment (HSE)

Health, Safety and Environment (HSE) is a core element of its governance approach and a key driver of group-wide excellence. As the apex entity of the Rane Group, RHL actively leads the HSE agenda by setting strategic direction, promoting a culture of shared responsibility, and enabling structured governance. Through regular reviews, capability building, and cross-functional collaboration, RHL influences all group companies to embed HSE into their operations, reinforcing a strong commitment to prevention, continuous learning, and employee well-being.

Although RHL does not operate manufacturing facilities, it leads by example in environmental stewardship through responsible practices and resource efficiency. Its focus on sustainability, waste minimization, and operational discipline sets a benchmark for group entities. By driving transparency and continual improvement, RHL plays a vital role in shaping a culture where safety, environmental responsibility, and excellence go hand in hand across the Rane Group.

11. Information Technology

The Company provides service delivery of IT infrastructure, application development and information security across Group companies. Over the past year, we have implemented several strategic initiatives to strengthen the IT infrastructure, enhance data protection, and support operational efficiency.

Enhanced network and WAN infrastructure across key sites, led to improved connectivity, bandwidth reliability, latency and enhanced support for cloud-based systems and remote work environments. To safeguard business-critical data and support continuity, the Company upgraded the backup solutions by implementing automated Network Attached Storage (NAS) backup systems with improved recovery capabilities. Google workspace was also adopted for a certain set of users for online productivity and real time collaboration.

As part of digitization efforts, the Company introduced tools and frameworks for better monitoring and controlling commodity-related expenses, resulting in increased visibility into cost trends and drivers.

As part of Industry 4.0 initiatives, the Company is supporting businesses on improving Overall Equipment Efficiency (OEE), Smart Utility Management. Rane Data Centre is focussing on OT (Operational Technology) cybersecurity to protect the hardware / software and ensuring continuous & safe operation of machinery and industrial control systems.

Information Security has been strengthened by implementing TISAX (Trusted Information Security Assessment Exchange) compliance processes at selected sites, which elevated our information security posture in line with automotive industry standards.

12. Internal Control Systems

The Company has put in place a robust internal control system to prevent operational risks through a framework of internal controls and processes. These controls ensure that the business transactions are recorded in a timely and complete manner in the financial records, resources are utilised effectively and the assets are safeguarded.

The internal audit function is outsourced to a professional firm of independent assurance service providers. The Audit Committee and the Board in consultation with the Internal Auditors, Statutory auditors and operating management approve the annual internal audit plan. The scope also covers the internal financial controls and internal controls over financial reporting. The internal audit findings are placed before the Audit Committee at each of its quarterly meetings for review. The managements responses and counter measures are discussed in the Audit Committee meetings. This process ensures robustness of the internal control system and compliance with laws and regulations including resource utilization and system efficacy.

13. Cautionary statement

The information and opinion expressed in this Report may contain certain forward-looking statements, which the management believe are true to the best of its knowledge at the time of its preparation. Actual results may differ materially from those either expressed or implied in this report.

		For and on behalf of the Board
	Harish Lakshman	Ganesh Lakshminarayan
	Vice-Chairman &	Chairman &
Place: Chennai	Joint Managing Director	Managing Director
Date: May 30, 2025	DIN:00012602	DIN:00012583