Varroc Engineering is seeking to capture a bigger share of the value inside a vehicle as software, displays, sensors and electronic controllers become central to how modern cars operate.
The automotive component maker is expanding beyond its established lighting business into digital cockpits, advanced driver-assistance systems and electronics that manage an electric vehicle’s systems. The strategy covers both the high- and low-voltage sides of a passenger vehicle and is being supported by local manufacturing, global engineering and technology partnerships.
For Dhruv Jain, Whole-time Director and CEO of Varroc Business II, the shift is closely connected to his early career.
Before joining Varroc in 2019, Jain worked at a US startup developing camera-based fleet-management and collision-avoidance technology. Its smart dashboard camera could identify unsafe driving behaviour and warn of possible accidents.
The experience exposed him to connectivity, driver monitoring and ADAS between 2017 and 2019. These areas now form an important part of the business he leads at Varroc.
"The software-defined vehicle buzzword that people hear about is a real trend," Jain said. "More demand for software functionality also means more electronic content in vehicles."
Electronics Takes Centre Stage
On the high-voltage side, the company's focus includes battery-management systems, inverters, DC-DC converters, onboard chargers and residential wall chargers. On the low-voltage side, it is working across infotainment, digital cockpits, ADAS, telematics and body electronics.
The opportunity is becoming larger as automakers consolidate several vehicle functions under common controllers. Infotainment systems are no longer limited to music, navigation and communication. A modern cockpit controller can also manage surround-view cameras, automated parking, driver monitoring, connected-car features and safety alerts.
This increases the addressable content for suppliers. The opportunity is spread across controllers, displays, cameras, sensors and the software that links them together.
Jain estimates that "true digital cockpit" technology has reached only around 20-25% penetration in India. He sees the relatively low base as an opportunity, as these features move beyond premium cars.
"There is going to be massive growth in digital cockpit solutions, even more so in India," he said.
TOLYY Tie-up Brings Displays and Localisation Together
Varroc is strengthening this business through its strategic cooperation agreement with China-based Suzhou TOLYY Optronics. Signed in June 2026, the agreement covers digital cockpit displays for selected passenger and commercial vehicle programmes.
TOLYY will support Varroc through a flexible supply and localisation model. This includes the supply of fully integrated display modules comprising display panels, backlight units, touch interfaces, enclosures and integrated electronic control units, as well as screen-only supply for localised final assembly in India. Varroc will leverage these capabilities to drive integration, validation and manufacturing of advanced display solutions tailored to diverse vehicle applications.
The official agreement allows local industrialisation of display modules for selected programmes and provides a platform for the companies to pursue customers in India, Europe and North America.
Jain said Varroc selected TOLYY because the two companies shared an interest in localising display technology in India. TOLYY's technology roadmap and focus on the Indian market were also important factors.
"We felt that combining our global R&D capabilities, our ability to localise in India and our customer connections with TOLYY's capabilities would be a good fit," he said.
The current priority is the Indian digital cockpit market, although Jain said the partnership could pursue opportunities in other regions in the future.
The agreement is not simply a sourcing arrangement, he added. "This agreement is not about just buying something from China," Jain said. "It is about combining whatever know-how we have across our global R&D locations with TOLYY's know-how to serve customers in India."
Localisation Lowers Both Cost and Risk
Varroc plans to increase localisation gradually as it secures more programmes. The process is expected to begin with local assembly. It could later expand into optical bonding and other manufacturing and integration processes.
Local production would reduce the impact of import duties and improve Varroc's price competitiveness. It could also give the supplier greater control over its supply chain at a time when trade restrictions, component shortages and geopolitical tensions are affecting global sourcing.
Jain acknowledged that China remains among the strongest markets for combining advanced technology with affordable costs. Varroc therefore does not intend to cut itself off from the country's engineering capabilities.
Instead, the company wants to combine external technology with Indian manufacturing and risk-mitigation plans. "Localising more helps you be more competitive," Jain said. "It also helps you de-risk from a supply-chain perspective because you have more control."
Already in Production
Varroc's electronics plan is not limited to products still under development.
Jain said the company had started deliveries of infotainment products in India. These include controllers, display assemblies, cameras and speakers.
It has also won high-voltage electronics programmes from global EV manufacturers. The company has received a wall-charger order for its Romanian operation from a global electric vehicle maker.
Varroc is developing its global model around engineering centres in India, China and Poland, alongside manufacturing capabilities in India, Romania, Vietnam and Thailand. Romania serves as a hub for high-voltage electronics in Europe, while India combines engineering and cost-effective production. Vietnam and Thailand support lighting and electronics programmes in Southeast Asia.
The scale of recent order wins supports Varroc's focus on four-wheelers and electrification. More than 65% of the company's record FY26 order intake, measured by annual peak revenue potential, came from EV customers. Four-wheelers and other segments represented 63% of the new orders.
Varroc can take different roles depending on the customer. Some automakers need only a manufacturing partner, while others seek joint development or a supplier that takes responsibility for the complete system.
"We take a flexible approach," Jain said. "Sometimes OEMs are looking for a manufacturing partner, sometimes joint development and sometimes a system supplier."
Lighting Remains Central
The expansion into electronics does not mark a move away from lighting.
Jain said lighting and electronics are both software- and research-intensive businesses with significant growth potential.
The company's lighting capabilities extend from projector and LED lamps to adaptive, matrix and high-definition systems. The company offers technologies including light control units, adaptive driving beams, camera-based adaptive lighting and pixel-matrix high-definition lamps.
Many of these advanced technologies have yet to gain meaningful penetration in India. This gives suppliers an opportunity as manufacturers add more premium safety, design and convenience features.
Lighting itself is also becoming more electronic. New systems require control modules, sensors, algorithms and software to vary the beam and communicate with other vehicle systems.
"Lighting content today compared to what it was five or 10 years back is much higher in value," Jain said.
The overlap between the two businesses is therefore growing. Lighting increasingly uses electronics and software, while digital cockpit and ADAS systems need cameras, sensors and integrated control units.
Investment will Follow Orders
The expansion will require manufacturing investment, but Jain said Varroc would not add capacity without visibility on customer demand. "We will not invest capex without booking new orders," he said.
Fresh infotainment orders in India, deeper display localisation or additional high-voltage programmes in Romania could each require new equipment and production lines. Linking expenditure to confirmed programmes reduces the risk of creating unused capacity.
Varroc's strategy is ultimately to increase its content in each vehicle rather than enter several unrelated businesses.
In lighting, that means moving towards higher-value matrices and high-definition systems. In electronics, it means building a broader presence across digital cockpits, ADAS and electric-powertrain controls.
The TOLYY agreement strengthens one part of that plan by adding display technology and a path towards localisation. Existing infotainment supplies and global EV programmes provide the base for further growth.
For Varroc, the opportunity is being created by a fundamental change in the vehicle itself. As cars become more connected, electric and software-led, a greater share of their value is shifting towards the electronic systems that sense, compute, display and control.