September 20, 2012: Varroc Polymers, a part of the US$ 615 million (Rs 3,320 crore) Varroc Group, inaugurated its eighth polymer plant at Pithampur in Madhya Pradesh at an investment of Rs 20 crore. Vinod Aggarwal, CEO of Volvo Eicher Commercial Vehicles (VECV) inaugurated the plant in the presence of Tarang Jain, managing director – Varroc Group, N Ramanathan, president – Varroc Group, and other top management officials of Varroc Polymers.
The Pithampur plant will primarily manufacture automotive components and subassemblies for both two-wheelers and four-wheelers and has moulding machines ranging from 450T to 850T. The company says the new plant will service the requirements of VECV as well as the needs of customers in central and western India.
Apart from Pithampur, Varroc Polymers has two plants in North India, five plants in Western India, and is planning to establish its footprint in Southern India. The new plant in Pithampur is the 20th manufacturing plant for the Varroc Group in India and its 31st worldwide.
Speaking at the inauguration, Tarang Jain said, “We are strongly committed to company’s philosophy of ‘being where the customer is’. Our strategically placed plants support the needs of the rapidly growing passenger car and light commercial vehicle market.”
VECV’s Vinod Aggarwal added, “In a highly competitive automotive sector, having suppliers closer to the manufacturing plants helps reduce the time-to-market for auto manufacturers. We appreciate Varroc’s initiative of putting up the state-of-the-art manufacturing facility in close vicinity to serve VECV’s requirements.”
Focus on increasing plastics business
The Aurangabad-based Varroc recently exited its four-year-old joint venture with Plastic Omnium. Tarang Jain had said the decision to exit the JV had been taken as “Varroc wants to focus and build its plastic interior parts business”. Plastic Omnium specialises in the making of exterior plastic parts.
Varroc is an industry leader in the manufacture of polymer-based products for the automotive industry with over two decades of experience in manufacturing plastic body parts and painted plastics. Over the last few years, Varroc has been successful in winning orders from four-wheeler OEMs. With strong support from its best-in-class tool room and state-of-the-art product design and development centre at Aurangabad, Varroc is aggressively working on development of interior and exterior trim modules parts such as instrument panels, door modules and console units for passenger cars and SUV applications.
The Varroc Group is at present one of the most diversified suppliers in the Indian auto component industry with capabilities of full service supplier in plastic moulded modules, machined forgings and auto electrical commodities. In recent years, with OEMs increasingly focusing efforts on replacing metal parts with lighter material has given a fillip to Varroc’s business.
Varroc’s 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 moulding, underbonnet parts.
In electricals and electronics, the company 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 the Group, under its metallic products business, offers precision forging and machined components, transmission and multiple gear assemblies; catalytic converters, crankshafts and connecting rods, engine valves and wheel hub assemblies.
The Varroc Group has targeted a turnover of $4 billion (Rs 21,596 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.