Aurangabad-based Varroc Group has bought out Visteon Corporation's lighting business for $92 million (around Rs 460 crore).
This puts the company among India's top three auto component makers. “Our annual revenues will be close to Rs 6,000 crore with this acquisition,” Mr Tarang Jain, Managing Director, Varroc, said at a press conference here on Monday.
For this fiscal ending March 31, the group is expected to post a turnover of $613 million (Rs 3,065 crore). It has set itself a target of $4 billion (Rs 20,000 crore) by 2020.
The sale is expected to be completed in the third quarter of this calendar year. Varroc will now have in its kitty exterior lighting products supplied to carmakers, auxiliary lamps, and subcomponents such as projectors and electronic modules.
In the process, Varroc will become the only lighting supplier in India to have its own technology. Its customer base, which was largely two-wheeler manufacturers until now , will include the world's top names in cars. The buyout will also increase the number of Varroc's plants, both here and overseas, to 31 along with six engineering centres
Visteon's five plants are located in the Czech Republic, Mexico and India. In addition, there is a lighting joint venture based in China.