Tata Opportunities Fund commits $50m to Varroc Engineering

This is Tata Opportunities Fund's first investment outside of the Tata group and its third transaction overall, having previously invested in Ginger Hotels and satellite TV player Tata Sky.

In May, the PE fund announced a final close of $600 million, short of its target of $1 billion. The fund launched in March 2011, with the mandate of investing within the Tata group of companies and also in Indian firms outside it. It is sector agnostic, providing growth and buyout capital with ticket sizes ranging from $50 million to $200 million.

The fund will support Varroc's expansion of its franchise in terms of client base and geographical coverage, according to a statement.

Varroc focuses on the two-wheeler segment in the domestic market, supplying plastics, polymers, metallic parts and electrical components. Over half of the group's $1.15 billion in revenue comes from overseas where it supplies automotive lighting systems for passenger vehicles. Varroc acquired the global automotive lighting business of Visteon, formerly a division of Ford, in 2012.

Its global clients include Jaguar Land Rover, Ford, Tesla, General Motors, Volkswagen, Bentley and Niss and domestic players such as Bajaj, Honda, Yamaha, Hero, Royal Enfield, Mahindra and Tata Motors.

In addition to 21 manufacturing plants in India, the company has facilities across Mexico, China and the Czech Republic.

"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," said Tarang Jain, founder and managing director of Varroc.

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• Topics
• Expansion
• Industrials
• South Asia
• Tata Capital
• India
• manufacturing
• Growth capital