THE AURANGABAD-BASED Varroc group has acquired Imes SpA, a hot forging manufacturer in Europe with an annual installed capacity of 110,000 tonnes of forged parts. This buyout is expected to provide synergies with Varroc’s existing forging business in India.
Imes has manufacturing units in Italy and Poland, with large unused capacities in Poland. The acquisition has been financed by a combination of internal accrual and deb. The Varroc group has embarked on an aggressive expansion plan in the areas of engine valves and forged components, primarily intended for the European automotive market.
The buyout will further its objective of providing better customer service to its clients in Europe. This will be achieved by increasing capacity and product diversity as well as shortening the length of the supply chain to its clients.
The acquisition is thus in line with Varroc’s two-pronged strategy of organic growth in domestic and overseas markets, as well as acquisitive growth in areas of core competence. The company has a significant presence in quality automotive components and parts for 2, 3 and 4 wheelers in domestic and overseas markets. It has 17 manufacturing facilities across western and northern India.