The Rathi family's industrial roots can be traced back to 1941, when before India's independence, the family set up a textile mill in the emerging industrial town of Pune, 180 km. south of Bombay port.
In 1947, the group diversified into engineering products, when `Rathi Engineering Works' was established, Focus on Exports was always a priority, and soon the company got the `Export Excellence Award' from the Indian government. In 1993 the company was certified ISO 9001, one of the first small scale companies to achieve this award.

In 1995, the company were moved from the heart of Pune city, to Alandi, 25 kms. from the city, to spacious and new plants. `Rathi Engineering Works' became 'Rathi Transpower Pvt. Ltd'.