‘We’re looking at future products like security systems (electrical and electronics) which will see good demand in the coming times.’
Varroc announces Technical Collaboration with UK based Scorpion Automotive Pvt. Ltd.
Pune, January 20, 2015: Varroc Engineering Pvt. Ltd., the flagship company of Varroc Group, India’s leading auto component manufacturer, today announced a technical collaboration with Scorpion Automotive Pvt. Ltd, UK’s trusted brand in vehicle securities, to provide security based products and marketing solutions to the automotive industry, especially the two-wheeler segment in India.
Dr. Ravi Damodaran, President, Technology & Strategy, Varroc Group, signed an MOU on the technical collaboration with Mark Downing, MD Scorpion Automotive Pvt. Ltd. in the presence of Mr. Kumar Iyer, British Deputy High Commissioner, Western India &Director General, India, for UK Trade & Investment (UKTI).Mr. Ravinder Sharma, Vice President, Varroc Engineering Pvt. Ltd.was also present on the occasion.
Varroc Engineering Pvt. Ltd, India and Scorpion Auto, UK have signed a technology license agreement to exclusively design, manufacture and sell to 2W and 4W OEMs in India. The collaboration also provides the exclusive rights to Varroc Engineering to manufacture the licensed security products for their global markets. The collaboration will not only help Scorpion Automotive Pvt Ltd to expand its portfolio but will also introduce innovative products for the Two Wheeler sector in the Indian Automotive Industry.
This collaboration was assisted by UK Trade & Investment (UKTI), which worked with Scorpion Automotive UK for three years, including advising on strategy for market entry into India, and assisting with identifying a suitable partner.
Speaking on the occasion, Dr. Ravi Damodaran, President, Technology & Strategy Varroc Group said: “Varroc Group is glad to join hands with Scorpion Automotive Pvt Ltd with a view to introduce innovative products for two-wheeler segment in the Indian market. We have strong relationship with OEMs in India and this partnership will help us enhance our already diverse product portfolio for them. The need for security systems has not been appropriately addressed in this market for a long time; and Varroc together with Scorpion Automotive intends to address this gap with these pioneering products, which will further strengthen our market share. Scorpion Automotive’s technologically advanced products would complement Varroc’s best cost manufacturing, enabling us to offer robust designs and high quality to our customers. I am confident that this partnership will bring tremendous value to all customers.”
Varroc and Scorpion Automotive will introduce the first of its kind products like Alarms, Immobilisers, Heated Grips, Throttle Locks, Smart Chargers and Vehicle tracking devices in the Indian Automotive market. Varroc Group is the pioneer of these security auto products in the Indian market.
Mark Downing, Managing Director, Scorpion Automotive Pvt Ltd said; “This is a very exciting time for Scorpion Automotive with several new products coming to the market, we see our strategic partnership with Varroc as a very good fit for us as we look to grow the sales of our products worldwide. Varroc is technically and operationally well equipped to manufacture the products licensed through Scorpion Auto. The company has a very strong hold in the Auto market and we are pleased to be working with them as partners. The collaboration will be mutually beneficial and will contribute the overall growth of the Auto sector.”
These products are applicable to all two-wheeler segments, and specially designed to be robust to our market conditions and offer a viable alternative to the low value products being available in the grey market. Varroc Group and Scorpion Automotive Pvt Ltd foresee a strong market share in the auto sector by signing up with major players like Hero, Yamaha, Kawasaki, Harley Davidson &Bajaj Auto Ltd.
Mr. Kumar Iyer, British Deputy High Commissioner, Director General, United Kingdom Trade & Investment (UKTI) said: “I am delighted that UKTI has been so closely involved in this partnership between Scorpion Automotive and Varroc, both leaders in their fields in UK and India. Today’s signing exemplifies the work that UKTI seeks to do in India – identifying and assisting business collaborations between our two countries. Prime Ministers David Cameron and Narendra Modi recently supported the launch of our GREAT Collaborations campaign to celebrate tie-ups between the UK and India. In Prime Minister Modi’s words, the UK and India are an “unbeatable combination”. Varroc and Scorpion are a great example of such a GREAT collaboration”.
About Varroc Group:
Varroc Group is today one of the most diversified suppliers in the Indian auto component industry with capabilities of Full-Service Supplier in Plastic Moulded Modules, Machined Forgings & Auto Electrical commodities. The Group provides customers with unparalleled manufacturing reach and ability coupled with solution-based, innovative approach built on stringent best practices with a commitment to the success of customers in the global marketplace.
Varroc’s modern and innovative manufacturing capabilities ensure quality and cost-efficient production and make an important contribution in the overall performance of the product.
About Scorpion Automotive Pvt Ltd:
Scorpion Automotive a trusted brand established in vehicle security since 1973 and has won many awards, with the headquarters in the UK, Scorpion has now established its subsidiary office in Pune India. Scorpion’s UK in-house team design hardware and software in accordance with TS16949 standards, allowing rapid concept to prototype development. Small or large volume manufacture is carried out in our modern state of the art SMT manufacturing facility, complete with automatic optical inspection and in circuit testing.
About UKTI: UKTI is the UK government arm, which helps UK companies trade internationally and attracts best quality investment into the UK
For Further contact: Mona Pandit: 9860082449, firstname.lastname@example.org Tanmaya Vyas: 9922112269, email@example.comRead more
VARROC GROUP – System supplier bets big on technology, diverse product portfolio and global customer base
Varroc Group concludes the acquisition of Visteon TYC Corporation in China
Mr. Tarang Jain, Managing Director, Varroc Group speaking about the new venture said, “I am pleased with the acquisition completion. The transaction completes an important step in our strategic plan to focus on our core businesses and expand our footprint into China, the world’s largest automotive market.”
Varroc Group’s China entity will be part of Varroc Lighting Systems which was recently formed after Varroc Group’s acquisition of Visteon’s global automotive lighting business. This purchase price for an equity stake of VTYC, on a cash and debt-free basis, was approx. US$20 million. The deal includes manufacturing and engineering facilities in Changzhou and Chongqing.
The sales revenue in 2012 for the China operations were USD $130 million, encompassing a wide range of exterior lighting products supplied to global vehicle manufacturers, including front and rear lighting systems. In total, about 1450 manufacturing, engineering and administrative employees are part of China operations.
About Varroc Varroc Lighting Systems, registered in the Netherlands, headquartered in Plymouth, Michigan, USA, is a wholly-owned entity within the Varroc Group. Varroc Lighting Systems is a global leader in automotive exterior lighting products. Varroc Group is based in Aurangabad, India, and is comprised of polymer, electrical and electronics, and metallic divisions providing full design, development and manufacturing. Varroc Group has approximately 9,500 employees with over 30 manufacturing plants in Asia, Europe and the Americas.
About TYC Brothers Ltd. TYC offers the widest selection of automotive lighting available from a single source as well as other automotive collision parts traded by TYC. In addition to the ISO14001, ISO 19001 and ISO/TS16949 quality certification, TYC also has Ford Q1 preferred quality status and has been approved as a full participant of CAPA parts certification program for North America since July 2006. TYC lighting products are designed in house by a team of Research and Development engineers engaged that embraces, among other areas of research; optics, design, tooling, regulatory standards, quality validation and assurance.Read more
Varroc Lighting Systems
Varroc Lighting Systems (VLS) will comprise of the manufacturing operations in Apodaca, Mexico, Novy Jicin and Rychvald, Czech Republic, and in Pune, India, besides the engineering centres and associated units in Europe, U.S.A. and India. All of the approximately 4200 employees including 400 engineers from the lighting business will join the Varroc Group. Varroc continues to work aggressively to secure Visteon’s fifty percent share in their China JV with Taiwanese partner, TYC, which will be part of a separate deal.
Varroc will make a seamless transition to Varroc Lighting Systems, ensuring minimum disturbances to all our partners and uninterrupted supply to our customers. We have ensured that the same management team that led the erstwhile Visteon Lighting System, is in place to steer Varroc Lighting Systems on a clear path of growth, profitability and stability for the global lighting business.
Varroc has put aggressive plans for growth in all the major automotive regions of the world as all of our manufacturing footprints and major engineering centres are in low cost countries. The European operations continue to perform well in spite of a difficult economic situation in the region. Along with expanding in global emerging markets, Varroc will also devote attention to the growing North American and India markets, where we are favourably positioned with well established lean manufacturing capabilities and capacities out of Apodaca, Mexico and Pune, India respectively.
These teams are solidly backed up by world-class engineering centres based in the Czech Republic and Germany, close to the customers to support their growth needs.
With this acquisition, Varroc will combine the benefits of management teams capable of driving growth globally as well as maintaining lean and agile manufacturing and engineering factories. We believe that the sincerity with which we understand customer needs and the speed with which we respond will be the value proposition to our customers in advanced markets, while to our customers in the growing markets it would be our world class technology offerings from a low cost manufacturing footprint.Read more
Varroc plants received “Manufacturing Excellence Certification” by Economic times in collaboration with Frost & Sullivan
Being the only one of its kind in India, IMEA has, over the years, increasingly received the reputation of being an independent, unbiased and credible evaluation of supply chain efficiencies with respect to their leanness and flexibility.
Each year, Frost & Sullivan, the assessors for The Economic Times, conduct the country’s largest on-site audit of manufacturing practices and present the India Manufacturing Excellence Award to recognize and applaud efforts of manufacturing companies toward achieving excellent-to-world-class manufacturing status.
Over 100 companies participated in this evaluation process, and we are among the few who have been awarded this honour. Varroc facilities had been subject to an extensive audit by external assessors from Frost & Sullivan. Over three days assessors evaluated and identified best practices at 4 of Varroc facilities in Pune, Aurangabad and Pantnagar.
This award is recognition and acknowledgement of Varroc’s high standards in terms of its manufacturing practices, quality, regulatory approvals and significant investment on its state-of-the-art R&D centre, well equipped manufacturing facilities and the infrastructure. It is an endorsement for its consistent endeavour in building and making world class manufacturing facilities. “As we strive to serve our customers on a global scale, the responsiveness, commitment, and passion for excellence demonstrated by the plant’s team continue to produce positive results” corroborate by Mr. Tarang Jain, MD Varroc group.Read more
Auto parts maker Varroc buys 80% in Italian headlight firm
When contacted by ET, Varroc MD Tarang Jain confirmed the acquisition. However, he refused to disclose the ticket size of the deal, as the transaction is still subject to regulatory approvals in Italy.
“This acquisition helps us in two ways; it strengthens our technology and widens our product portfolio. It also allows a bigger global reach,” said Jain.
“Tri.O.M’s plan to set up a plant in Vietnam will give us a big gateway to reach out to the fast-growing Southeast Asian markets, which is our big focus going ahead,” he added.
Varroc Group’s top management, including CFO Mr. B. Padmanabhan, corporate legal head Mr. Sanjay Sachdev and Varroc Electrical President Mr. Vineet Sahni, are currently in Italy to finalise the deal.
Italy-based TriOM is a supplier to leading global automobile companies, including Piaggio, Honda, Yamaha and Ducati, with nearly 55% market share in Europe. It has two plants – one in Turin in Italy and other in Romania. The company is setting up a plant in Vietnam to cater to the fast-growing two-wheeler market in the Asian region.
Varroc Group, which has Maruti Suzuki, Tata Motors, Mahindra & Mahindra, Volkswagen and Bajaj Auto among its clientele, had appointed Ernst & Young for the acquisition.
The entire transaction took two months to complete. Through this acquisition, the Rs 3,000-crore Varroc Group will be able to penetrate switches, instrument clusters and electronic parts segments for two-wheelers in Europe and Southeast Asia.
“The acquisition will add approximately 20 million to Varroc’s top line. It’s a strategic acquisition from Varroc Electrical’s global expansion perspective,” said Mr. Vineet Sahni, President, Varroc Electrical.
Varroc Group has been growing at a CAGR of 20% in the last 4-5 years. The Group is aiming for a turnover of Rs 5,000 crore by 2013-14, a growth of more than 60%, with joint ventures and acquisitions as major drivers.
The company said Tri.O.M is a profit-making company, but there are other attractive buys it may look at in Europe. The group has already set aside $100 million for acquisition over the next one year.
“We are in talks with some European players in the area of forgings and machining and we are looking at an acquisition in electrical and electronic space which offers us a strong technology,” Jain said.
Experts said with Europe going through one of its worst crisis, there are ample acquisition opportunities, but at the same time, it will be a challenge for buyers to draw their business plans.
“It is a good opportunity for healthy auto component companies to look for acquisitions in Europe, especially for technology. But they need to have a plan in place to keep the business profitable and sustainable over a period a time. The key may lie in expanding geographies and integrating operations with India to keep the cost low,” said Abdul Majeed, partner, automotive practice, Price Waterhouse.Read more
Mr. Shashank Manohar, the BCCI president, inaugurated Indoor Cricket Stadium at Varroc Vengsarkar Cricket Academy in Pune
Varroc nurtured the Chess Talent from regional to International Level
The Varroc Group indeed feels proud to have played a humble role in nurturing such a talent who has the potential to be a Grand Master (GM) norm for India.Read more
Varroc Group steps on the accelerator
Blood Donation Camp
A team of 13 professionals of the Local Blood Bank, from Aurangabad which conducted the program at VEPL-II, Aurangabad Campus. The employees of Varroc and Business Partners from Aurangabad region donated around 157 units of blood in the program. The donors were also checked for Hemoglobin count & Blood Sugar levels. Heavy participation by such number of donors in the event revealed the attainment of said objective and it is encouraging points to the success of the camp. All those who donated blood were awarded Certificates from the Blood Bank. Looking at the pouring success of Camp, we will be organizing such Camps in future also to serve mankind. We thank all the participants for their overwhelming support for such noble cause.Read more
MD’s address to MBA students
He spoke about the Indian SMEs growth opportunities & also about the threats from China. The Chinese component suppliers have got good support from the Chinese Govt.; wherein as per laid down policies the Global OEMs put up a manufacturing footprint in China has to indigenous components within the stipulated time period. In Indian perspectives, the SMEs don’t have the similar leverage, no major support from Indian Govt. As such the SMEs are facing tough competition from Chinese suppliers. However, he shared the assurance of change in sourcing scenario in near future in India as well. The global OEMs start recognizing the brain power and R&D strength of Indian suppliers & focusing more on indigenous souring efforts. The SMEs in India are gradually developing themselves more on the technical front to improve their value chain.
He mentioned, India is like an elephant – strong, slow & steady up to now but I think it will run now with help from the government. An elephant with all its might & running can beat the Chinese dragon.
He also shared, Varroc success mantra lies in its 8 points priority program which includes Varroc Core Values; Sincerity, Humility, Integrity, Passion & Self Discipline. Varroc is concentrating on enhancing its brainpower than the muscular power.
During Q&A sessions; while students were more curious about their future, he mentioned them to concentrate on their strong points & evaluate what they can give back to the industry. Challenges are ahead but at the same time no dearth of opportunities for the suitable candidate.
In his concluding comments to students; he mentioned, I believe in the strength of my country and its people. I believe that the future belongs to India. Let’s not defend our past, instead attack the future.Read more