Varroc, one of the world's largest producers of automobiles and motorcycle lighting and electrical parts, is in talks to acquire Turkish Sa-Ba Industrial Products Inc., according to a report by Turkish daily Dünya.
The weight of Indian companies in the Turkish automotive industry has been increasing recently. Last year, Mahindra & Mahindra, one of the biggest tractor manufacturers in the world, created a stir in the sector, by acquiring Erkunt Traktör for $76 million following a 75 percent stake in Hisarlar Makine for TL 71 million ($15.8 million) in January.
Now there is another purchase in the automotive industry, this time by Mahindra's most important supplier Varroc Group.
If an agreement is reached, the Indian giant Varroc Group will incorporate 100 percent of Sa-Ba, one of the leading brands of the sector engaged in production in Turkey as well as Bulgaria.
Founded in 1990 by Tarang Jain in Maharashtra, India, Varroc has 46 production facilities in 10 countries on three continents. While 35 of these facilities are engaged in production, the remaining 11 are focused on engineering and research and development (R&D). The company, which started with polymer, grew rapidly in the field of electrical and metallic accessories, and in 2001, decided to jointly manufacture with Japanese Mitsuba. The Indian giant, which grew by incorporating IMES's facilities in Poland and Italy, exceeded the $1 billion mark in its turnover in 2012 on the 22nd year of its foundation. Working with brands such as Yamaha and Volvo besides Mahindra, the company is a leading manufacturer of automotive lighting in the U.S. and Europe with facilities in France, the U.S., Mexico, Germany, China and Vietnam.
Sa-Ba is chaired by Mahmut Özlü and engages in the production of signals, plastic based products, semi-finished products and lighting equipment for main industries. The company that works for the automotive industry has a brand called Trailight. Having made its first overseas production in Bulgaria last year, the company has a factory in Dimitrovgrad on an area of 30,000 square meters. Sa-Ba also works with giants such as Iveco, Ford, Renault, Skoda, Audi, VW, and Aston Martin.
