Varroc Engineering to sell Europe, Americas 4-wheeler lighting business for $631 mln (updated)

Varroc Engineering

29/04/2022 05:39

(Adds share price, background)
    BENGALURU, April 29 (Reuters) - Indian auto component maker
Varroc Engineering  VARE.NS  said on Friday it will sell its
four-wheeler lighting system operations in the Americas and
Europe to France's Compagnie Plastic Omnium  PLOF.PA  for 600
million euros ($630.96 million).
    Varroc's shares were trading up 20% at 493.85 rupees.
    The company, which will retain its 4-wheeler lighting
operations in Asia, said it will continue to operate its China
joint venture and its other businesses in countries such as
Italy, Vietnam, Poland and Romania.
    The divestment is part of its strategy to focus on the
two-wheeler sector globally and electric vehicle product lines,
according to the company.
    Globally auto companies and component makers have started
diversifying their traditional business to focus more on
electric vehicles.
    India wants electric scooters and motorbikes to make up 80%
of total two-wheeler sales by 2030, compared with about 2% now
and Prime Minister Narendra Modi's administration is offering
companies billions of dollars in incentives to make EVs and
components locally.  urn:newsml:reuters.com:*:nL4N2RA1YO

 ($1 = 0.9509 euros)

 (Reporting by Nallur Sethuraman in Bengaluru; Editing by
Shounak Dasgupta)
 ((Sethuraman.NR@thomsonreuters.com; (+91 8061822737); Reuters
Messaging: nallur.sethuraman.thomsonreuters.com@reuters.net))