Pune: Varroc Engineering Limited (VARROC | 541578 | INE665L01035), a global automotive technology company, and Forsee Power (FR0014005SB3 – ALFOR), a specialist in smart battery systems, are set to form a joint venture to expand electric mobility solutions in India, with Forsee Power India at the centre of the partnership focused on developing and scaling advanced battery-pack systems.
As electric mobility gathers momentum globally, the automotive industry is entering a new phase of transformation, driven by evolving vehicle architectures, changing customer requirements and the growing scale of electrification.
In India, this transition is creating opportunities for scalable, cost-effective and application-specific solutions for OEMs across an expanding range of vehicle segments.
As part of the transaction, Varroc will acquire a 45% equity stake in Forsee Power India, Forsee Power’s Indian subsidiary focused on battery-pack systems. Varroc will also exercise management and operational control over Forsee Power India.
The proposed joint venture will operate in India, subject to applicable regulatory and corporate approvals. Varroc will also subscribe to Optionally Convertible Redeemable Preference Shares (OCPRS) to support the joint venture.
Forsee Power India Joint Venture to Initially Focus on Three-Wheelers
The Forsee Power India joint venture will initially focus on developing battery packs for three-wheelers.
The companies have outlined a roadmap to expand the application of these solutions to two-wheelers, light commercial vehicles, buses, trucks, off-highway vehicles and industrial vehicles.
The partnership is expected to combine Forsee Power’s expertise in battery-pack technology and systems with Varroc’s automotive engineering capabilities, established OEM relationships and cost-effective, world-class manufacturing expertise.
Commenting on the partnership, Arjun Jain, Whole Time Director & CEO – Business I, Varroc, said: “Electric mobility is both evolving and growing rapidly, thus creating new opportunities and new requirements for the automotive industry.
Through this evolution we believe OEMs will need partners who can anticipate changes and translate them into reliable, cost-effective solutions at scale.
Our partnership with Forsee Power brings together complementary strengths in battery-system technology, automotive engineering, manufacturing and customer relationships.
It represents an important step in expanding Varroc’s portfolio to address the evolving needs of our market and the future of mobility. This will further enhance addressable content per electric vehicle in all the segment.”
The partnership is intended to strengthen Forsee Power India’s presence in the Indian electric mobility ecosystem while leveraging Varroc’s established automotive capabilities and relationships with OEMs.
Forsee Power Brings Battery Technology to Partnership
Christophe Gurtner, Chairman and CEO of Forsee Power, highlighted the opportunity presented by India’s growing electric mobility market.
“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-wheeler, commercial and industrial vehicles” highlighted Christophe Gurtner, Chairman and CEO of Forsee Power.
Forsee Power India brings established expertise in battery-pack technology and systems to the joint venture. Varroc, meanwhile, contributes automotive engineering capabilities, established OEM relationships and manufacturing expertise.
Together, the companies aim to combine these complementary strengths to develop battery-pack solutions that can adapt to different vehicle architectures and operating conditions.
The Forsee Power India joint venture will also focus on building capabilities required to support the continued evolution and scale of electric mobility in India.
Varroc to Exercise Management and Operational Control
Under the proposed transaction, Varroc will hold a 45% equity stake in Forsee Power India and exercise management and operational control over the entity. The arrangement is subject to applicable regulatory and corporate approvals.
The partnership is designed to expand Varroc’s electric mobility portfolio while bringing together Forsee Power’s smart battery-system technology and Varroc’s automotive engineering, manufacturing and customer capabilities.
The joint venture will initially target three-wheelers before expanding its focus across additional vehicle categories, including two-wheelers, light commercial vehicles, buses, trucks, off-highway vehicles and industrial vehicles.
The collaboration is aimed at developing battery-pack solutions that can support different vehicle architectures and operating conditions as electric mobility adoption expands across India.
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