Varroc Engineering, an auto component maker promoted by Tarang Jain, is likely to sell its global lighting business Varroc Lighting System (VLS) at an enterprise value of up to ₹600 million ($650 million) to a leading European component maker to pare its debt, multiple people aware of the development told ET.
The company has brought on board a European investment bank based in Paris a few months ago to look for buyers for its global lighting business where it makes head lamp, rear lamps, and fog lamps, added people in the know.
“The sale exercise is currently undergoing a due diligence process with European component makers. It has annual revenue potential of more than ₹6 billion,” said a person familiar with the development. After the deal, Varroc is likely to become debt free. VLS is the sixth-largest automotive lighting maker globally, supplying parts to Ford and Jaguar Land Rover.
VLS has 12 operating facilities for passenger cars in the Czech Republic, China, India, Mexico, Morocco, Turkey, Poland, Brazil and Romania, and two facilities in two-wheelers.