Monday, 2 January 2012

Auto parts maker Varroc buys 80% in Italian headlight firm



Indian Headlight maker, Varroc Inc. which manufactures headlights for automobile solutions and has customers including Maruti Suzuki, Tata Motors, Mahindra & Mahindra, Volkswagen and Bajaj Auto to name a few has acquired 80% stake in Europe based two wheeler headlight maker, TriOM SpA. TriOM currently holds 55% market share in Europe for two wheeler headlights and has majority of customer in its list including Piaggio, Honda, Yamaha and Ducati.

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.

"TriOM'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. 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 Vineet Sahni, president, Varroc Electricals. "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.

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