Rane Group, one of India’s leading auto component manufacturer, today announced merger of Kar Mobiles Limited (KML) with Rane Engine Valve Limited (REVL) effective 1st April 2014. The board of directors of both the companies approved the merger in their respective meetings held today. The exchange ratio will be 7 shares of REVL for every 10 shares of KML. The merger is subject to regulatory, legal and other statutory approvals as may be required.
KML, based in Karnataka, manufactures large valves for internal combustion engines and caters to the automotive, marine and stationary engines in both the domestic and export markets. The company had a sales of Rs120 crore for the year ended 31st March 2014 with an employee strength of 389.
REVL, a leader in the engine vales segment in India, achieved sales of Rs 267 crore for the year ended 31st March 2014. The merger will benefit the engine valve business from the synergies in combining the operations of the two companies.
