Varroc Engineering to acquire 45% stake in Forsee Power India, form JV for EV battery packs

• Varroc to form JV with France’s Forsee Power.
• Varroc will acquire a 45% stake in the entity.
• JV will initially focus on 3-wheeler battery packs.

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Automotive components maker Varroc Engineering on Friday said it will set up a joint venture with French small battery systems manufacturer Forsee Power to develop advanced battery-pack solutions.

As part of the transaction, Varroc will acquire a 45 per cent equity stake in Forsee Power’s Indian subsidiary, which is focused on battery-pack systems and exercise management and operational control over the entity, the company said.

Varroc will also subscribe to Optionally Convertible Redeemable Preference Shares (OCPRS) to support the joint venture, which is proposed to operate in India and is subject to applicable regulatory and corporate approvals, it added.

The joint venture will initially focus on battery packs for three-wheelers, with a roadmap to address two-wheelers, light commercial vehicles, buses, trucks, off-highway and industrial vehicles, Varroc said.

Forsee Power India brings established expertise in battery-pack technology and systems, and Varroc contributes automotive engineering capabilities, established OEM relationships and cost-effective, world-class manufacturing expertise, the company said.

Forsee Power specialises in battery systems for commercial and industrial electric vehicles (light vehicles, off-highway vehicles, buses, trucks, and trains). A major player in Europe, Asia and North America, the Group designs, assembles, and supplies energy management systems based on cells.

Together, the two companies aim to combine these strengths to develop battery-pack solutions adaptable to different vehicle architectures and operating conditions, while building the capabilities required to support the continued evolution and scale of electric mobility, it added.

As electric mobility gathers momentum across the world, the automotive industry is entering a new phase of transformation – one that calls for technology solutions that can evolve with changing vehicle architectures, customer requirements and the growing scale of electrification, the company said.

In India, this transition presents a significant opportunity to build scalable, cost-effective and application-specific solutions that support OEMs across an expanding range of vehicle segments, it said.

Electric mobility is evolving and growing rapidly, thus creating new opportunities and new requirements for the automotive industry. Through this evolution, OEMs will need partners who can anticipate changes and translate them into reliable, cost-effective solutions at scale, said Arjun Jain, Whole Time Director & CEO — Business I at Varroc.

“With the rapid growth of electric mobility adoption in India, the opportunity is clear, and we are ready to scale. Joining forces with Varroc combines our battery technology with local industrial strength and customer access. Three-wheelers are our starting point, with a clear ambition to expand across two-wheelers, commercial and industrial vehicles,” said Christophe Gurtner, Chairman and CEO of Forsee Power.