TRW Inc. and Rane Group Announce Partnership To Manufacture and Sell Engine Valves in India

12 February 1998
TRW Inc. and Rane Group Announce Partnership To Manufacture and Sell Engine Valves in India

    CLEVELAND, Feb. 12 -- TRW Inc. and Rane Group today announced
they have signed technical and distribution agreements for the manufacture of
engine valves in India.
    Under the technical agreement, TRW has licensed for 10 years engine valve
manufacturing technology to Engine Valves Ltd. (EVL), a public company owned
primarily by the Rane companies headquartered in Chennai and their affiliate,
Kar Mobiles Limited (KML), Bangalore.  TRW also has purchased a minority
equity share of EVL.
    Under the distribution agreement, EVL has become TRW's marketing and
distribution agent for engine valves in countries of the Indian subcontinent,
Bangladesh, India, Pakistan and Sri Lanka.  In addition, TRW has become the
marketing and distribution agent for EVL and KML for engine valves in markets
outside India.
    "TRW has had a long-standing relationship with the Rane companies," said
Jack Stinnett, vice president and general manager of TRW's global engine
component product lines.  "These agreements with Engine Valves Ltd. will
enable TRW to serve its existing customers now expanding into India."
    "EVL has been the leader in engine valves in India since the 1960s," said
L Ganesh, vice chairman and managing director of Engine Valves Ltd.  "EVL and
KML, which together have five valve plants spread over Southern India,
manufacture about 17 million valves a year.  I strongly believe that this new
strategic alliance with TRW will further strengthen our position in the coming
years."
    The automotive industry in India is growing at an annual rate exceeding 10
percent, with forecasts predicting about 700,000 passenger cars by 2000.
Major auto manufacturers who have plans for India include Ford, Hyundai,
Daewoo, Mercedes-Benz, General Motors, Toyota and Honda, among others.
    TRW has been a partner with Rane Madras Ltd. in TRW Steering Systems Ltd.
(RTSSL) since 1989.  RTSSL manufactures integral power steering gears and
other steering components for medium and heavy vehicles manufactured in India.
TRW is also associated with Rane in a joint venture for seat belts.  The
current alliance in engine valves will further strengthen the TRW/Rane
relationship in India and help EVL/KML in meeting the requirements of the new
global entrants.
    With affiliates, TRW produces more than 300 million engine valves
annually.  The company is a leading designer and manufacturer of engine
valves, valve train components and valve train systems for passenger cars,
trucks, agricultural and construction equipment, light aircraft and marine
vessels.
    TRW Inc. , with 122 automotive locations in 23 countries, is
one of the largest independent OEM automotive suppliers in the world.  In
1997, the company's automotive businesses recorded sales of $7 billion, 65
percent of TRW's total $10.8 billion in sales.  Based in Cleveland, Ohio, TRW
also provides advanced technology products and services for the space and
defense, and information technology markets worldwide.

SOURCE  TRW Inc.