 "Tata Opportunities Fund invests Rs 300 cr in Varroc Group")
The Tata Opportunities Fund (TOF), the Private Equity fund of Tata Capital, has invested Rs 300 crore ($50 million) in Varroc Engineering Private Limited, the holding company of the Varroc Group, leading Indian auto component manufacturer.
With over Rs 6,900 Crore ($1.15 billion) in revenue, Varroc's domestic businesses are geared towards two-wheel segments with a strong presence in plastics and polymers, metallic parts and electrical components. Varroc had acquired the global automotive lighting business of Visteon (formerly a division of Ford) in 2012. The group has marquee clients including Jaguar Land Rover, Ford, Tesla, GM, Volkswagen, Bentley and Nissan in the global market and players such as Bajaj, Honda, Yamaha, Hero, Royal Enfield, Mahindra and Tata Motors in the domestic market.
Varroc Group is led by Tarang Jain, a first generation entrepreneur, supported by strong professional management teams in India, North America, Europe and China.
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With this investment, the Tata Opportunities Fund has made its first investment outside of the Tata group. The fund's prior investments were into Ginger Hotels and Tata Sky.
Padmanabh Sinha, Managing Partner of the Fund's advisory team in India said, "The Fund believes India has excellent engineering and management capabilities which can be leveraged to create global leaders in manufacturing. While retaining a Tata bias in its investment strategy, the fund is actively pursuing investments into other such companies that have a history of operational excellence and robust governance led by dynamic management teams."
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In May last year, Tata Opportunities Fund LP, rasied $600 million from sovereign investors, financial institutions, global corporate and high net-worth families from North America, Asia and the Middle-East.