Indian car manufacturer Rane has hired strategy consulting firm McKinsey & Company to develop its new corporate strategy. The consultants have been given roughly three months’ time to deliver the vision, strategy and roadmap.
Rane Group is an Indian car manufacturer that started manufacturing products in 1959. The Group consists of several different production lines and serves a variety of automotive segments. These segments include, among others, passenger cars, multi-utility vehicles, farm tractors and two-wheelers. Over the past fiscal year (2013-2014) Rane booked a turnover of $494 million.
New long-term strategy
As part of its strategic planning process, the firm has decided to formulate a new long-term strategy, known internally as ‘Vision 2020’. The automotive firm has hired McKinsey & Company to lead the strategic process, from planning to the analysis of strategic options and an advice regarding the recommended direction. Key focus areas include the strengthening of its existing businesses and expanding into new areas, such as acquiring companies that will add new technologies or any other business synergy to the operations. The strategy consultants are expected to deliver the new corporate strategy within 3 months.
“We are revisiting our long-term strategy now, and the exercise is going on in the group. We have engaged McKinsey for this purpose. They are helping us to evolve a new vision and strategy to achieve the vision. So, we have formally started looking around for opportunities,” says L. Ganesh, Chairman of the Rane Group.