Varroc Engineering bags first order from TVS, may bag more from Tesla

Aurangabad-based automotive component major Varroc Engineering is on a roll. Despite tough market conditions in FY 2019, the company has able to achieve sustained growth. In its filing to the stock exchange today, the company has revealed that it has successfully bagged its first order from leading two-wheeler manufacturer TVS Motor Co and is in talks for supply of multiple products, marking a new beginning to the relationship.

In addition, Varroc Engineering has also reported orders amounting Rs 3,600 crore in FY 2019, which includes new business orders to the tune of Rs 1,777 crore. In terms of customers, Volkswagen is set to become Varroc’s second largest customer in FY 2020 and the largest by FY 2021. The company has also recorded a significant value LoIs expected for two products from Hero MotoCorp in June 2019. The Tier 1 supplier is also working on developing a traction motor and controller, and is ready with prototypes for two-wheelers and development work is ongoing for three-wheelers.

Varroc, which is already a supplier to American EV major Tesla, is now in discussion for future models, hinting towards the company’s prowess for advanced technologies.

Source: AutoNews