Mr. Tarang Jain, Managing Director, Varroc:
India 28 December 2016: “2016 was a turning point for Indian automotive industry as we saw signs of a sustainable revival in demand for the first time in five years. The positive sentiment created by the Modi government’s business like approach to running the government has been a shot in the arm for the industry. Also, the announcement of various initiatives such as Make in India and Skill India, besides the announcement of GST implementation in April 2017 will continue to boost market sentiments in the medium and long term. It remains to be seen how long the cash crunch due to the demonetization will continue, however the long term outlook continues to be positive.
For Varroc, 2016 was a great year for business growth and we may reach a milestone of INR 100 Billion this financial year. Our international exterior lighting business continued it’s momentum from last year and our Indian businesses have benefited from the market revival in India. Some of our key customers continue to outperform the market both in India and abroad resulting in sustained growth. The shift in exterior lighting technologies to LED for headlamps have favoured our technology strategy to position affordable LED headlamps as a viable alternative to Xenon lamps. In India cross selling of our diverse portfolio to our key growth customers is yielding good results. The negative effects of demonetization in the current quarter and the implementation of GST may dampen results a bit towards the end of the year, however, overall our strategy seems to be paying off.
The global and domestic shift to LED technologies in exterior lighting will drive growth in our international business. At home in India, there are significant opportunities created by the future safety and emission norms for our Electrical and Lighting divisions and we plan to make the most of it.”