Varroc pursues auto sector, sells JV stake to Plastic Omnium

By Satnam Singh
Correspondent

Published: September 14, 2012 6:00 am ET

Related to this story

Topics Mergers & Acquisitions, Automotive, Injection Molding

AURANGABAD, INDIA (Sept. 14, 3 p.m. ET) — Indian auto parts supplier Varroc Group and France’s Cie. Plastic Omnium have ended their joint venture in India, and now Varroc is moving forward with its own expansion plans.

Aurangabad-based Varroc sold its 46 percent stake in the auto exterior venture to Levallois, France-based Omnium.

The JV, Plastic Omnium Varroc Pvt. Ltd., has operated in Chakan, India, since 2007.

“We have amicably decided to grow on our own in the growing Indian automobile market,” said M.P. Sharma, Varroc’s vice president for material & projects, in a telephone interview.

Details on the buy-out were finalized in mid-August, he said. Terms were not disclosed.

Now Varroc is expanding its polymer division by setting up three new facilities in different parts of India to cater the various automobile hubs.

The company is investing around $20 million in the plants. The first, in Pithampur, will start production in October. The plant — Varroc’s eighth plastics operation — will supply Mahindra & Mahindra and VE Commercial Vehicles Ltd.

The plant, on a 12.5-acre site, has injection presses ranging from 450-850 tons of clamping force.

The second plant, in Bangalore, will open next year. It will supply Honda Motorcycle & Scooters India (HMSI) and automotive plants around Bangalore, Sharma said.

The third plant, in Chennai, will open in 2014 and serve the fast-growing automotive hub in that region, he said.

In August, Varroc bought Visteon Corp.’s global lighting business. That business has 4,200 employee at plants in Monterrey, Mexico; Pune, India; and two sites in the Czech Republic — Novy Jicin and Rychvald.


Comments

Varroc pursues auto sector, sells JV stake to Plastic Omnium

By Satnam Singh
Correspondent

Published: September 14, 2012 6:00 am ET

Post Your Comments


Back to story


More stories

Image

Bayer spinning off plastics business

September 18, 2014 8:49 am ET

Bayer AG will spin off its MaterialScience plastics group into a separate, publicly-traded company within the next 12 to 18 months.    More

Image

Smartphone work adds 52 percent to sales for China's Eva Precision

September 18, 2014 4:37 pm ET

Growth in supplying the smartphone and automotive industries helped Chinese processor Eva Precision Holdings Ltd. push injection molding sales up 52...    More

Image

Nolato Contour beefs up white room molding capabilities

September 18, 2014 11:56 am ET

Nolato Medical has extended its controlled environment options to include a white room at its Baldwin, Wis., Nolato Contour plant.    More

Badger buys competitor Joseph Homa

September 17, 2014 4:04 pm ET

Badger Plug Co. has extended its protective plugs customer base by acquiring and closing a rival, Joseph Homa Consultants Inc. of Montreal.    More

Image

Cascade Engineering founder Keller to step down as CEO

September 16, 2014 8:33 pm ET

Cascade Engineering Inc. is undergoing a transition as President Mark Miller will also add the role of CEO, replacing founder Fred Keller, who has led...    More

Market Reports

Plastics Caps & Closures Market Report

The annual recap of top trends and future outlook for the plastics caps & closures market features interviews with industry thought leaders and Bill Wood’s economic forecast of trends in growing end markets. You will also gain insight on trends in caps design, materials, machinery, molds & tooling and reviews of mergers & acquisitions.

Learn more

Shale Gas Market - Analysis of North American Region

This report highlights the impact of shale-based natural gas on the North American plastics market and features an in-depth analysis of production trends in the United States during 2013 and a forecast for 2014 and beyond.

Learn more

Thermoformed Packaging 2014 Market Review & Outlook – North America

This in-depth report analyzes economic and market trends, legislative/regulatory activity impacting supply and demand, business opportunities and threats, materials pricing, manufacturing technology, as well as growth strategies being implemented by thermoformed packaging companies.

Learn more

Upcoming Plastics News Events

January 14, 2015 - January 14, 2015Plastics in Automotive

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

More Events