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Rane Engine Valves (REVL) was formed after Engine Valves (EVL) was merged with its 100% subsidiary Engine Components Ltd (ECL) in FY99. The reverse merger, effective from FY99 is expected to benefit the new entity, reducing its tax liability, because of the carry forward losses of ECL. REVL now has a more diversified product portfolio, absorbing the products of the 2 merging companies. It manufactures guides for internal combustion engines, engine camshafts and tappets, all catering to the automobile industry. REVL is the largest manufacturer of engine valves in India with a 85% market share. With its multiple plants, the company has been able to meet the requirements of several customers as well as meet stringent quality and delivery schedules. These engine valves are used in automobiles, tractors and industrial engines and therefore its performance is linked to the performance of the automobile industry, the recession in which had been eroding the net profit margin of EVL for the past 2 years.
Future Plans: REVL has a technical collaboration with TRW Inc. of USA, the largest manufacturer of engine valves in the world to upgrade its product range to cater to global auto companies setting up projects in India. The technology licence agreement is valid for a period of 10 years to FY 2009. REVL also plans to improve product quality and productivity through manufacturing system redesign and modernisation. The company will also be focusing on the overseas markets for market expansion.
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