Aurangabad-based supplier Varroc has exited its four-year old joint venture with Plastic Omnium. Confirming the move, Taran Jain, managing director, Varroc Group said the decision to exit the JV has been taken as “Varroc wants to focus and build its plastic interior parts business”. Plastic Omnium specialises in the making of exterior plastic parts.
When contacted, a senior Plastic Omnium official said that the company will be renamed soon, and its management team will report directly to the Asia Pacific office. After turning into a 100 percent owned subsidiary, the Indian unit will have full access to Plastic Omnium’s global technologies. Plastic Omnium supplies a wide range of exterior plastic components. Some new vehicle launches such as the Mahindra XUV 500 and Skoda Rapid have plastic parts sourced from Plastic Omnium.
Plastic Omnium may now consider for an acquisition or two, for which it has “earmarked” Rs 200 crore.
SUMANTRA BAROOAH