Aurangabad-based automotive components maker Varroc Engineering (P) Ltd has completed the acquisition of the US-based Visteon Corporation’s global lighting business in a $72-million deal.
The acquisition enables the company to enter the four-wheeler lighting space. The business will be under Varroc Lighting Systems, a new entity created for the purpose.
For the next two years, it will continue to be led by Jeff Stevenson, based in Michigan, USA.
Varroc, which last year earned around Rs 150 crore through two-wheeler lighting business and had a total revenue of Rs 3,000 crore, expects to add around Rs 3,500 crore to its top-line in one year through this acquisition.
Varroc Lighting Systems will comprise the manufacturing operations in Apodaca, Mexico, Novy Jicin and Rychvald, Czech Republic, and in Pune, besides engineering centres and associated units in Europe, USA and India.
Following the acquisition, the group will have 31 manufacturing plants and four engineering facilities worldwide.
Varroc continues to work to secure Visteon’s 50 per cent share in their China joint venture with Taiwanese partner, TYC, which will be part of a separate deal.
Tarang Jain, Managing Director, Varroc Group, said: “Visteon’s global lighting business has already posted $531-million revenue and we are expecting to cross the $1-billion mark in total revenue by end FY’13.”
Speaking on the lighting business post the acquisition, he said: “We expect the revenues of our lighting business alone to cross $1 billion over the next five years. Visteon’s lighting business not only brings the jump in revenues but also exposes us to the world-class technology, benefiting more than 100 patents owned by us. Our patented products with the enhancement in the technology will take-on the domestic and global markets.”
Varroc Engineering (P) Ltd is a part of the $615-million Varroc Group, and a provider of automotive components. The latest acquisition has made it the largest Indian automotive lighting manufacturer and the only supplier for lighting technology in India, Jain said.
Keywords: Automotive components, Varroc Engineering, Visteon Corporation, Visteon global lighting business, Varroc-Visteon business deal, four-wheeler lighting business, two-wheeler lighting business,