Varroc Engineering working on 8 new projects, plans Russia plant
March 15: Aurangabad-based Varroc Engineering, which manufactures
lighting systems, plastics and metal components for automobiles has
lined up an aggressive game plan for the near future. The team
involved in the lighting systems vertical, which accounts for around
50 percent of total sales, is currently working on eight new projects.
It is also close to finalising a deal with a German luxury car maker
but did not name the company.
Varroc will undertake projects that the design and development of
lighting systems for the upcoming models of passenger and commercial
vehicles from VECV, Mahindra & Mahindra (M&M), General Motors, Volvo,
Volkswagen, Tata Motors and other undisclosed names. The company will
begin supplying the products currently under development in another 18
months. Further, the lighting systems developed specifically for VECV
vehicles are currently undergoing the testing and approval procedure.
M&M procures head lamps and tail lamps for XUV500 and head lamps for
Scorpio and Bolero models from Varroc. Varroc also supplies to Tata
Motors (head lamps for Indica Vista, Manza; head/fog lamps for world
trucks, head lamps for Safari Storme and Aria, tail lamps for Sumo
Grande and Xenon), General Motors (head and tail lamps for Beat), and
Volkswagen (tail lamps for Polo).
In the two-wheeler space, the company supplies the lighting systems to
all big names barring Hero MotoCorp and TVS Motors. Without disclosing
models and OEMs, Vineet Sahni, president – electrical division, Varroc
Engineering, has confirmed that the company is developing new lighting
systems for some two-wheeler OEMs as well.
On the sidelines of the visit of Chinese delegates from Changzhou
Municipal Government, who had come to consolidate business ties with
Varroc Engineering, Sahni also disclosed that the company is further
investing an amount of $30 million over the next five years in
expanding the manufacturing facility of their Chinese arm, Varroc TYC.
Bullish about the emerging economies specifically the BRIC, Varroc
plans to set up a production plant in Russia within the next two
years, followed by a facility in Brazil. Though the location and size
of investments are in the process of being decided, Sahni said that a
feasibility study is underway. “The teams of Varroc Lighting Systems
in India and in Europe are jointly studying the prospects of setting
up production plants in Russia and Brazil,” said Sahni.
Varroc is also planning to tap the growing aftermarket in India. “We
are working on a business plan and going forward, we can service the
customers jointly with our OEM partners,” added Sahni.
Pic caption: Fang Guoqiang, Mayor, Changzhou Municipal Government,
China planting the tree at VLS, Hinjewadi, Pune. Sahni is next to him.