Tata PE fund invests Rs 300 crore in the Varroc Group

The Tata Opportunities Fund, the flagship private equity fund of Tata Capital, has announced an investment of Rs 300 crore in Varroc Engineering, the holding company of the Varroc Group, which is a diversified component supplier with over Rs 6,900 crore in revenues.

The group’s domestic businesses are geared towards the two-wheeler segment with a strong presence in plastics and polymers, metallic parts and electrical components. Over half of the revenue accrues internationally where it is among the global leaders in automotive lighting systems for passenger vehicles. Varroc had acquired the global automotive lighting business of Visteon (formerly a division of Ford) in 2012.

Varroc, which has 21 manufacturing plants in all major auto hubs across India, has a global manufacturing footprint in Mexico, China and the Czech Republic.

Its global clients include Jaguar Land Rover, Ford Motor Co, Tesla, General Motors, Volkswagen, Bentley and Nissan and domestic players such as Bajaj Auto, Honda, India Yamaha Motor, Hero MotoCorp, Royal Enfield, Mahindra & Mahindra.

Speaking on the Tata fund’s investment, Tarang Jain, founder and MD of Varroc,  said, “The Tata Opportunities Fund and its team of investment and operating professionals not only bolster us financially, but also provide us a strategic spring-board which enables us leapfrog into the next cycle of our growth”.

Padmanabh Sinha, managing partner of the Fund’s advisory team in India, said, “The Fund and its limited partners are delighted to support the Varroc Group, which is exemplary of Indian entrepreneurship on the global stage. The fund believes India has excellent engineering and management capabilities which can be leveraged to create global leaders in manufacturing.”