The subsidiary will carry out research and development activities in the field of automotive products.

Varroc Engineering is a global tier-1 automotive component manufacturing organization. The organization designs, manufactures and supplies exterior lighting systems, plastic and polymer components, electricals-electronics components, and precision metallic components to passenger cars, commercial vehicles, two-wheelers, three-wheelers, and off-highway vehicle OEMs directly worldwide.

On a consolidated basis, VEL reported net loss of Rs 285.32 crore in Q4 FY22 as against net loss of Rs 145.50 crore in Q4 FY21. Net sales rose 9.8% to Rs 1,651.99 crore in Q4 FY22 over Q4 FY21.

Shares of Varroc Engineering were down 1.35% to Rs 307.70 on the BSE.