Rane (Madras) to Sell Part of Velachery Land to Arihant-Prestige JV for ₹200 Crore

Auto components manufacturer Rane (Madras) Ltd has announced plans to sell a significant portion of its Velachery land parcel in Chennai to a joint venture between Arihant Foundations & Housing and Prestige Estates Projects. The deal, estimated to be worth around ₹200 crore, involves both a cash component and a share of the developed area for Rane.

The company’s board has approved the sale of approximately 3.48 acres out of its 4.5-acre property to Canopy Living LLP — the special purpose vehicle formed by the Arihant-Prestige joint venture. The move follows shareholder approval secured in May 2025. While Rane has not formally disclosed the financial details or timeline for the transaction’s completion, real estate industry sources have confirmed the cash value of the deal and additional consideration in the form of developed area rights.

The Velachery land, located in a key residential and commercial zone of Chennai, is expected to be developed into a high-value real estate project by the joint venture. To Rane (Madras), the deal is a strategic decision to realize value from non-core assets while the company goes through a difficult phase of finances.

Rane (Madras), a unit of the Rane Group, is a principal supplier to Indian and foreign auto OEMs and aftermarket customers. Its product base ranges from steering and suspension systems, brake and engine parts, to light metal castings, serving industries such as passenger and commercial vehicles, tractors, two- and three-wheelers, railways, and industrial engines.

But the financial performance of the company has come under stress. In the quarter ended March 2025, Rane (Madras) saw consolidated net profit decline 39% year-on-year to ₹6.5 crore while net sales increased 6% to ₹901.3 crore from the same quarter last year.

The land transaction is viewed as a central aspect of Rane’s plans to fortify its balance sheet and enhance operating concentration in the face of changing auto industry dynamics.