Varroc Engineering Limited is a global tier-1 (tier-1 companies are companies that directly supply to original equipment manufacturers ('OEMs') automotive component group. The Company designs, manufac
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tures and supplies exterior lighting systems, plastic and polymer components, electricals-electronics components, and precision metallic components to passenger car, commercial vehicle, two-wheeler, three-wheeler and off highway vehicle ('OHV') OEMs directly worldwide. The company is one of the leading global passenger car lighting suppliers and amongst the top 2-wheeler automotive component supplier in India. The company has a global footprint of 37 manufacturing facilities.
The Company commenced operations with polymer business in 1990. It initially grew organically in India by adding new business lines, such as electrical division and metallic division. Subsequently, it diversified the product offerings and expanded its production capacity through various investments, joint ventures and acquisitions. The Company has also expanded its manufacturing and R&D footprint by investing in nine manufacturing plants and an additional R&D center in India since 2012.
Varroc Engineering Limited was incorporated on May 11, 1988 at Mumbai as a private limited company with the name 'Varroc Engineering Private Limited'. On July 1, 1997, the Company was converted into a deemed public company and the word 'Private' was deleted from the name of the Company. Thereafter, on January 24, 2001 the company was converted into a private company and the word 'Private' was added to the name of the Company.
In 2005, the company formed Varroc Exhaust Systems Private Limited to manufacture catalytic convertor for two wheelers and three-wheelers.
In 2007, the company formed a joint venture with Plastic Omnium Auto Exterior SAS, France. During the year under review, the company acquired I.M.E.S in Italy.
In 2008, as per a composite scheme of arrangement between Varroc Lighting Private Limited (VLPL), Varroc Polymers Private Limited (VPPL) and the company, VLPL was amalgamated with the company and the polymer business of the company was demerged into VPPL. In 2011, the company acquired two-wheeler lighting business of TRI.O.M. S.p.A. In 2012, the company acquired the lighting division of Visteon Corporation, now known as Varroc Lighting Systems.
In 2013, the company expanded its global lighting business by acquiring Visteon's holding in a 50/50 joint venture with Beste Motor Co. Ltd. ('TYC') to manufacture automotive lighting in China, namely Varroc TYC (which wholly owns Varroc TYC Auto Lamps, which in turn wholly owns Varroc TYC Auto Lamps (CQ) (its 'China JV').
The company was converted into a public limited company and the name of the Company was changed to 'Varroc Engineering Limited' on February 5, 2018. On February 13, 2018, the company entered into a joint venture with Dell'Orto S.p.A., one of the customers, in India, for the development of electronic fuel injection control systems for two-wheelers and threewheelers.
In 2018, the company acquired 90% stake in Team Concepts through its subsidiary VPPL. During the year under review, the company made investment in lighting manufacturing units in Brazil & Morocco. During the year under review, the company diversified its business activities by acquiring Team Concepts, which is in the business of manufacturing of auto accessories.
The company came out with an initial public offer (IPO) during the period from 26 June 2018 to 28 June 2018. The IPO was an offer for sale by the selling shareholders consisting of promoter Tarun Jain (17.52 lakh shares), Omega TC Holdings (entire 169.17 lakh shares) and Tata Capital Financial Services (entire 15.52 lakh shares). There was no fresh issue of shares by the company. The IPO was priced at Rs 967 per share. The stock made its debut on the bourses on 6 July 2018.
The Board of Directors of Varroc Lighting Systems INC. USA (a wholly owned stepdown subsidiary company of Varroc Engineering Limited) at its meeting held on 12 July 2018 at Czech Republic approved the proposed setting up of new facilities at Chennai (India) and Poland for manufacturing exterior lighting components.
On 3 August 2018, Varroc Engineering Limited informed the stock exchanges that its wholly owned subsidiary Aries Mentor Holding B.V., The Netherlands has acquired 6,60,114 shares of TRI.O .M. S.p.A. from the existing minority shareholder Mr. Alessio Caputo on 3 August 2018 resulting increase in shareholding of Aries Mentor Holding B.V., The Netherlands in TRI.O.M. S.p.A. Italy to 100%. Consequently, TRI.O.M . S.p.A. Italy has become wholly owned step-down subsidiary of Varroc Engineering.
On 19 September 2018, Varroc Engineering Limited informed the stock exchanges that its wholly owned subsidiary company VarrocCorp Holdings B.V., The Netherlands has signed a joint venture agreement with ELBA SA, a privately-held lighting and electronics company based in Romania, on September 18, 2018. The joint venture will focus on electronics manufacturing, and - given the constantly increasing electronic content of lighting products - will significantly support Varroc Lighting's successful growth in Europe. As per the terms of the joint venture agreement, Varroc and ELBA will contribute equity for the joint venture in the ratio of 70% and 30% respectively.
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