Rane Madras Ltd. (RML) has determined to divest/eliminate its wholly owned subsidiary Rane Light Metal Casting Inc., USA (LMCA).
The board of RML, which met on Wednesday and reviewed operational and monetary efficiency of LMCA, determined to discover choices for divestment/disposal of the subsidiary and seek prior approval of the shareholders via postal poll, RML stated in a regulatory submitting.
LMCA was acquired within the 12 months 2016. It is engaged within the enterprise of producing excessive stress aluminium die casting for automotive and non-automotive purposes.
During FY23, it reported a turnover of ₹232 crore and accounted for nearly 10% of RML’s consolidated income. LMCA internet value is estimated at ₹32 crore.
Recently, Group Chairman L. Ganesh had stated the turnaround deliberate within the U.S. subsidiary had suffered a setback owing to poor offtake within the new enterprise developed and even the present enterprise. The board would overview the way forward for this enterprise contemplating the long- time period pursuits of the corporate, he added.
