Tata Opportunities Fund investment of Rs 300 Crore in Varroc Group

Tata Capital’s flagship Private Equity fund, Tata Opportunities Fund (TOF) announced its investment of Rs 300 Crore (USD 50 million) in Varroc Engineering Private Limited, (holding company of Varroc Group). Leading Indian auto component manufacturer, Varroc Group’s domestic businesses work towards two-wheel segments with a strong presence in plastics and polymers, metallic parts and electrical components.

Varroc_GroupThe company is a global leaders in automotive lighting systems for passenger vehicles. Varroc acquired Visteon (formerly a division of Ford) in 2012. In addition to 21 manufacturing plants across major auto hubs in India, Varroc has a global manufacturing foot-print in Mexico, China and the Czech Republic. The group services Jaguar Land Rover, Ford, Tesla, GM, Volkswagen, Bentley and Nissan in the global market and, Bajaj, Honda, Yamaha, Hero, Royal Enfield, Mahindra and Tata Motors in India.

This is Tata Opportunities Fund’s 1st manufacturing company investment, and also first investment outside of the Tata group. The Fund has been invited to appoint nominees on the Board.

Tarang Jain, founder and Managing Director of Varroc said, “We are delighted to embark on the next stage of our journey towards 2020 with a reputed partner. I am sure my team will be able to leverage the intellectual and infrastructural network provided by our partners in advancing the strategic agenda of the company and create value for all stake-holders. The Tata Opportunities Fund and its team of investment and operating professionals, not only bolster us financially, but also provide us a strategic spring-board which enables us leapfrog into the next cycle of our growth”.

Padmanabh Sinha, Managing Partner of the Fund’s advisory team in India said, “The Fund and its limited partners are delighted to support the Varroc Group, which is exemplary of Indian entrepreneurship on the global stage. The fund believes India has excellent engineering and management capabilities which can be leveraged to create global leaders in manufacturing. While retaining a Tata bias in its investment strategy, the Fund is actively pursuing investments into other such companies that have a history of operational excellence and robust governance led by dynamic management teams.”