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

Ohio molder Denbro Plastics moves to new location

September 29, 2014 6:17 pm ET

Logo products injection molder Denbro Plastics Co. has moved to another plant within Toledo, Ohio, to streamline production and improve efficiency.    More

Image

Japan's parts makers face challenges as carmakers expand supply base

September 29, 2014 11:01 am ET

For all their size and success, Japanese auto suppliers that rocketed to global dominance on the coattails of their No. 1 customer, Toyota Motor Corp....    More

Image

Clariant extends reach into Asia with acquisition

September 29, 2014 9:54 am ET

Clariant International Ltd. is buying VitaPac (HK) Industrial Ltd., a Hong Kong-based company which produces desiccant packets for the healthcare...    More

Image

Nypro Healthcare continues to grow following Jabil acquisition

September 26, 2014 1:59 pm ET

Nypro Healthcare's newest medical device manufacturing facility offers 200,000 square feet of carefully configured Class 8 clean room molding and...    More

Image

England's Essentra buying Abric Berhad

September 26, 2014 11:31 am ET

Packaging firm Essentra plc has announced the planned acquisition of Abric Berhad, a Kuala Lumpur-based manufacturer of security sealing products.    More

Market Reports

Plastics in Mexico - State of the Industry Report

This report analyzes the $20 million dollar plastics industry in Mexico including sales of machinery & equipment, resins and finished products.

Our industry analysis highlights macro industry trends and micro trends faced by companies that do business in Mexico. The report also provides key industry statistics and forecasts to anticipate future industry expansion.

Learn more

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

Injection Molders Market Report & Ranking 2014

This special package contains our 132-page 2014 Market Report on the Injection Molding segment and our exclusive 2014 RANKINGS database of 500+ Injection Molders for a discounted package price.

Learn more

Upcoming Plastics News Events

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

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

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

More Events