Varroc

Varroc is a global tier-1 automotive component manufacturer and supplier, widely recognized for its diverse portfolio of exterior and interior systems. Following the strategic divestment of its 4-wheeler lighting business in the Americas and Europe, the company has repositioned itself with a strong focus on the 2-wheeler, 3-wheeler, and off-highway vehicle segments, while maintaining specific 4-wheeler operations in growth markets. It operates as a technology-agnostic entity, supplying components for internal combustion engine (ICE) vehicles as well as electric vehicles (EVs).

Core Products and Services

• Electrical and Electronics: Manufacturing of key electrical components such as starter motors, magneto, capacitor discharge ignitions (CDI), rectifiers/regulators, and advanced electronic fuel injection systems.

• Polymer Components: Production of injection and compression molded parts including body panels, seat assemblies, air filter assemblies, and mirror assemblies for automotive applications.

• Metallic Components: Engineering of high-precision forged and machined parts such as transmission gears, crank pins, connecting rods, and engine valves.

• Lighting Systems (2W/3W & Specific 4W): Design and manufacture of headlamps, tail lamps, blinkers, and other lighting solutions primarily for the two-wheeler and three-wheeler markets globally, and for four-wheelers in specific Asian markets.

• Electric Vehicle (EV) Solutions: Development of traction motors, controllers, DC-DC converters, and battery management systems specifically designed for electric mobility.

Business Model and Revenue Streams

• OEM Supply (B2B): The primary revenue stream (approximately 70-80% of total sales) comes from long-term contracts with Original Equipment Manufacturers (OEMs), supplying customized components directly for new vehicle assembly.

• Aftermarket Sales: A significant portion of revenue is generated through the replacement market, selling spare parts through a wide network of distributors and dealers to support vehicle maintenance and repair.

• Export Markets: Revenue is diversified geographically by exporting components from its manufacturing hubs (primarily India) to international clients in Europe, North America, and other Asian regions.

• EV Component Sales: An increasingly growing revenue stream derived from the sale of specialized electric powertrain and electronic components to both traditional automakers transitioning to EV and new-age electric vehicle startups.

• Contract Manufacturing: Providing manufacturing services for specific high-precision components to other industrial sectors beyond automotive, such as construction and oil & gas (for metallic forged parts).