Nisshinbo Brake, Japan’s leading manufacturer of friction for automotive brakes and anti-lock brake systems,

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has increased its stake in Rane Brake Linings (RBL), part of Chennai-based auto component house Rane Group, to 20 per cent from the existing 10 per cent through an open offer.

Nisshinbo, a technology partner of Rane Brake since 1996, has invested about Rs 4.5 crore to pick up this additional stake. “The raise in stake by Japanese firm will help Rane for further advancement in research and development to address the future technology requirements,” a company statement said.

RBL has commenced supply of brake linings to Mahindra Navistar, General Motors’ Tavera and Maruti’s Ritz. Supplies of asbestos-free brake linings to Tata Motors for commercial vehicle segment has now stabilized and likely to grow. It has also acquired some new orders for export to Egypt.

Meanwhile, the company has secured the shareholders’ nod to borrow up to Rs 100 crore.

For the first quarter ended June 30, the company reported a net profit of Rs 2.66 crore when compared with Rs 80 lakh in the corresponding period of previous fiscal. Net sales stood at Rs 52.94 crore as against Rs 49.93 crore in a year ago period. It posted positive growth in domestic original equipment and replacement business during the quarter.