Varroc Engineering (P) Ltd has announced the completion of their acquisition of the US-based Visteon Corporation's Global Lighting Business for $72 million. The new business entity will be called Varroc Lighting Systems and will continue to be led by Jeff Stevenson, based in Michigan, USA. Varroc Engineering (P) Ltd, is a part of the USD 615 million Varroc Group, India's leading global provider of automotive components.

Mr Tarang Jain, Managing Director - Varroc Group speaking about the acquisition said, "This acquisition makes us the largest Indian Automotive Lighting Manufacturer and the only Lighting Technology Supplier in India. Visteon's Global Lighting Business has already posted revenue of USD 531 mn and we are expecting to cross the USD 1 bn mark by the end of FY 2013 to become one of the top three Automotive Components players in India."

Varroc Lighting Systems (VLS) will comprise of the manufacturing operations in Apodaca, Mexico, Novy Jicin and Rychvald, Czech Republic, and in Pune, India, besides the engineering centres and associated units in Europe, USA and India. The Group post the acquisition will have 31 manufacturing plants and 4 engineering facilities worldwide. Varroc continues to work aggressively to secure Visteon's fifty percent share in their China JV with Taiwanese partner, TYC, which will be part of a separate deal.

Globally, the automotive lighting business is around USD 9 Billion with a 5-6% CAGR. The acquisition has opened up the door for Varroc in the 4W lighting business, taking the company's market share in global lighting business to 6%. Varroc presently has strong presence in two wheeler lighting business.

Mr Jain speaking about the future of the lighting business post the acquisition said, "We expect the revenues of our Lighting Business alone to cross $1 billion over the next 5 years. Visteon's lighting business not only brings the jump in revenues but also exposes us to the world class technology, benefiting more than 100 patents owned by us. Our patented products with the enhancement in the technology will take-on the domestic and global markets."

The Varroc Group has envisioned reaching a USD 4 billion turnover by the year 2020 and is committed to invest in technologies and global capabilities to grow the business and expand their portfolio in the fast growing passenger car space with new technologies and skilled work force. Varroc Group will strengthen relationships with the Indian and Global Passenger Car OEMs such as Ford, GM, PSA, VW etc. and offer the next generation technologies to them.