Varroc inks pact with UK-based Scorpion Auto

Auto component manufacturer Varroc Engineering has entered into a technical collaboration with the UK-based Scorpion Automotive Pvt Ltd.

Under the pact, the Indian company headquartered in Aurangabad will make and market security-based products and marketing solutions for the automotive industry.

The licence agreement is for the design, manufacture and sale of products like alarms, immobilisers, heated grips, throttle locks, smart chargers and vehicle tracking devices for two-wheelers and four-wheelers for OEMs and aftermarket customers in India.

The collaboration also provides the exclusive rights to Varroc to manufacture the licensed security products for their global markets.

“Vehicle security and safety has been identified as a key area of growth for the company,” Ravi Damodaran, President, Technology & Strategy for the Aurangabad-based Varroc Group, said.

With a portfolio spanning 16 product lines, Varroc is currently one of the largest suppliers to the Indian two-wheeler industry. The new range of Scorpion-branded safety products for two-wheelers will roll out from Varroc's plant in Chakan in the 2016-17 fiscal.

It will initially address the premium motorcycle segment, he said, adding that the quantum of investment required is still being worked out.

Mark Downing, MD, Scorpion Auto, said that the company plans to continue making high-value low-volume products in the UK. The tie-up will help volume manufacturing with efficiency and facilitate exports to markets in SE Asia, Africa and the Americas, he said.

COMMENT NOW