Varroc Group completes acquisition of Visteon’s global lighting business
Mumbai, August 8, 2012: Varroc Engineering, part of the Rs 3,386 crore Varroc Group, has announced the completion of its acquisition of the US-based Visteon Corporation’s Global Lighting Business for $72 million (Rs 396 crore). The new business entity will be called Varroc Lighting Systems and will continue to be headed by Jeff Stevenson, based in Michigan, USA.
Speaking about the acquisition, Tarang Jain, managing director – Varroc Group, said: “This acquisition makes us the largest Indian automotive lighting manufacturer and the only lighting technology supplier in India. Visteon’s Global Lighting Business has already posted revenue of $531 million (Rs 2,923 crore) and we are expecting to cross the $ 1 billion (Rs 5,506 crore) mark by the end of FY 2013 to become one of the top three automotive components players in India.”
Varroc Lighting Systems (VLS) will comprise of the manufacturing operations in Apodaca, Mexico, Novy Jicin and Rychvald, Czech Republic, and in Pune, besides the engineering centres and associated units in Europe, USA and India. After the acquisition, the Group will have 31 manufacturing plants and four engineering facilities worldwide. Meanwhile, Varroc continues to work aggressively to secure Visteon's 50 percent share in its China JV with Taiwanese partner, TYC, which will be part of a separate deal.
Globally, the automotive lighting business is around $9 billion (Rs 49,554 crore) with a 5-6 percent CAGR. The acquisition has helped take Varroc’s market share in the global four-wheeler lighting business to 6 percent. Varroc at present has a strong presence in two wheeler lighting business.
Jain said, “We expect the revenues of our lighting business alone to cross $1 billion over the next five years. Visteon’s lighting business not only brings the jump in revenues but also exposes us to world-class technology, benefitting more than 100 patents owned by us. Our patented products with the enhancement in the technology will take on the domestic and global markets.”
The Varroc Group has targeted a turnover of $4 billion (Rs 22,024 crore) by the year 2020 and is committed to invest in technologies and global capabilities to grow the business and expand its portfolio in the passenger car space with new technologies and a skilled workforce.
The Varroc Group is one of the most diversified suppliers in the Indian auto component industry with capabilities of a full service supplier in plastic molded modules, machined forgings and auto electrical commodities. Its capabilities in polymers includes rearview mirror assemblies, body panels, seat assemblies, cockpit systems, wheel housings, air filter assemblies, fascia systems, exterior and pillar trim, plastic body panels, side wall systems, rubber molding, and under-bonnet parts
In the electrical and electronics segments, Varroc manufactures starter and wiper motors, magneto and AC generators, body switches, headlight and directional light assemblies, digital instrument clusters, actuator motors, CDI, digital instrument clusters. And, under its metallic products business, it makes precision forging and machined components, transmission and multiple gear assemblies; catalytic converters, crank shafts and connecting rods, engine valves, wheel hub assemblies.