The Varroc Group has set up a plastic injection moulding plant.
After inaugurating the catalytic converter manufacturing facility, in alliance with Delphi, recently, Varroc Engineering has announced the inauguration of a plastic injection moulding plant. While the key customer of the cat con plant, called Varroc Exhaust Systems, is Bajaj Auto, for the injection moulding plant, Varroc Group has tied-up with Honda Motorcycle and Scooter India Pvt Ltd (HMSI). The plant is located at Binola on the outskirts of Gurgaon, Haryana, and will cater to the requirements of plastic injection moulded parts, air cleaner assemblies and seat assemblies of HMSI. Koji Toyota, executive director Ã¢â‚¬â€œ purchase, HMSI, inaugurated the plant recently. Also present were other dignitaries from HMSI and senior members of the Varroc team, including the managing director, Tarang Jain. Speaking at the launch, Tarang Jain said, "This is Varroc's second manufacturing base in the North with an investment of Rs 20 crores and is a strategic initiative to reiterate Varroc's commitment to transform into a full system supplier for the 2 and 4 wheeler industry. Apart from enhancing its injection moulding capacity, this new plant at Binola, due to lower logistic costs, will have a strategic advantage of supplying parts to its customers in the North region."
While HMSI is a wholly-owned subsidiary of Honda Motor Corporation and specialises in the manufacture of scooters and motorcycles, Varroc Engineering is a leading manufacturer of auto parts for 2/3-wheelers and 4-wheel vehicles in both OEM and after-market. Varroc has also launched several initiatives like its recent Technical alliance with Mollertech GmbH & Co KG of Germany, one of the largest and most preferred suppliers for complete interior and exterior modules to major car manufacturers in Europe. Leveraging this alliance Varroc recently bagged the prestigious order for supply of interior and exterior parts for the L-90 (Logan) platform of Renault.Varroc Group was established in 1990 and is headquartered at Aurangabad, Maharashtra. The annual turnover in 2005-2006 is expected to be in excess of US $210 million. Varroc employs more than 1800 people and has 15 manufacturing plants in India. The major thrust areas for growth identified by the Varroc Group include engine valve, which is a major export initiative, electric motors for four wheelers and cold forged and machined parts for domestic sales as well as exports. The group thereby intends to sustain its track record of growth rate and continue to grow at 30 per cent CAGR, and expectations are it would attain a turnover of Rs 2000 crores ($450 million approx), within the next three years. In order to facilitate this growth, continue to leverage cost consciousness, and ensure fiscal stability in a high growth environment, the group has launched a number of initiatives on the manufacturing front. All plants will be TS16949 certified by June 2006, and half of them have already been certified. TPM culture has been introduced in its electrical division, and would be seamlessly extended to the other divisions as well. Lean manufacturing techniques have been adopted and will be continued and reinforced. Process optimising techniques have also been adopted in order to continue to control costs, in an increasingly expensive environment.