Rane Madras Ltd. (RML) has decided to divest/dispose of its wholly owned subsidiary Rane Light Metal Casting Inc., USA (LMCA).
The board of RML, which met on Wednesday and reviewed operational and financial performance of LMCA, decided to explore options for divestment/disposal of the subsidiary and seek prior approval of the shareholders through postal ballot, RML said in a regulatory filing.
LMCA was acquired in the year 2016. It is engaged in the business of manufacturing high pressure aluminium die casting for automotive and non-automotive applications.
During FY23, it reported a turnover of ₹232 crore and accounted for almost 10% of RML’s consolidated revenue. LMCA net worth is estimated at ₹32 crore.
Recently, Group Chairman L. Ganesh had said the turnaround planned in the U.S. subsidiary had suffered a setback owing to poor offtake in the new business developed and even the existing business. The board would review the future of this business considering the long- term interests of the company, he added.
Published - May 17, 2023 07:35 pm IST
