Rane (Madras) Ltd said it has decided to explore options for divestment/disposal of Rane Light Metal Casting Inc (LMCA), USA , which is engaged in the business of manufacturing high-pressure aluminum die casting for automotive and non-automotive applications.
The company’s board, at the meeting held on Wednesday, after carefully reviewing the operational and financial performance of LMCA, has decided to explore options for divestment/disposal of LMCA and seek prior approval of the shareholders for the same through postal ballot, the company said in a communique to stock exchanges.
LMCA is a wholly-owned step-down subsidiary of the company acquired in the year 2016.
In FY23, LMCA recorded a turnover of ₹232 crore and accounted for 9.78 per cent of the consolidated turnover of Rane (Madras). LMCA’s net worth was ₹32.3 crore in 2022-23.
A couple of weeks ago, L Ganesh, Chairman of Rane Group said that the turnaround planned in the US subsidiary had a setback due to poor offtake in the newly-developed business and even in the existing business. He said the board was closely monitoring the situation and will review the best decision regarding the future of this business considering the long-term interests of the company.