Varroc Engineering’s 45% EV Battery JV Expands India’s Reach

Varroc enters battery-pack manufacturing

Varroc Engineering has agreed to form a joint venture with France-based Forsee Power to expand electric vehicle battery solutions in India. The automotive components company will acquire a 45% equity stake in Forsee Power India. Despite holding a minority stake, Varroc will have management and operational control of the entity. The arrangement marks a move beyond Varroc’s established automotive components business. It gives the company a direct role in the supply of battery packs, a core component in electric vehicles. The transaction was announced on 16 October 2026. It remains subject to applicable regulatory and corporate approvals. The companies intend to operate the venture in India.

Initial focus on electric three-wheelers

The joint venture will initially develop battery packs for electric three-wheelers. This is the first vehicle category identified in the companies’ roadmap. Three-wheelers are a commercial mobility segment within India’s electric vehicle market. The planned focus is on battery-pack systems rather than only peripheral vehicle hardware. Varroc and Forsee Power aim to combine their respective capabilities in this area. The partnership is intended to develop packs suited to different vehicle designs and operating conditions. No launch date for the initial products was stated. The companies have also not disclosed individual customer contracts connected with the venture.

Roadmap covers several vehicle categories

After the initial three-wheeler focus, the venture plans to broaden its offerings. The stated roadmap includes electric two-wheelers and light commercial vehicles. It also covers buses and trucks. Off-highway vehicles are included in the planned expansion. Industrial vehicle applications are part of the roadmap as well. This proposed range places the venture across personal, commercial and industrial electric mobility categories. The expansion will take place in stages, according to the announcement. Specific timelines for each vehicle segment were not provided.

How the ownership structure will work

Varroc’s board approved an investment of up to €4.5 million for the proposed 45% stake in Forsee Power India Private Limited. The structure includes primary and secondary purchases of equity shares. Varroc will also subscribe to optionally convertible redeemable preference shares, or OCPRS. The preference-share subscription is intended to support the joint venture. Reported transaction details include 2,95,398 equity shares and 80,380 OCPRS. The transaction is anticipated to close on or before 31 December 2026, subject to fulfilment of conditions precedent. The companies have described Varroc as retaining management and operational control. This structure allows Varroc to guide the business without acquiring full ownership.

Key transaction details

What each company brings to the venture

Forsee Power contributes expertise in battery-pack technology and battery systems. The France-based company already operates in battery applications for relevant vehicle categories. Varroc contributes automotive engineering and manufacturing capabilities. It also brings relationships with original equipment manufacturers, or OEMs. Cost-management capability is another element cited in the partnership. The companies expect these combined strengths to support adaptable battery-pack designs. Such designs are intended to serve multiple vehicle types. The announcement did not provide details on manufacturing capacity, plant locations or planned production volumes.

Significance for Varroc’s EV portfolio

The transaction extends Varroc’s participation in the electric mobility value chain. Instead of supplying only automotive components around an EV, the company is seeking involvement in battery-pack systems. Battery packs are a critical component of an electric vehicle’s operating system. Management and operational control could give Varroc a central role in how the India venture develops. The partnership also links Varroc’s local automotive presence with Forsee Power’s battery-system knowledge. The stated objective is to expand Varroc’s electric mobility portfolio. The deal has been described as offering long-term business and commercial benefits. Financial projections for the joint venture were not disclosed.

Market context and share performance

The partnership comes as Varroc positions itself in India’s electric mobility market. The company’s initial focus on three-wheelers is followed by a stated plan to address two-wheelers, commercial vehicles and industrial applications. This broad vehicle list is relevant because the venture is designed to develop packs for varied operating requirements. Varroc Engineering shares were trading at ₹817.45. The stock was up 34.6% year to date based on the information provided. The share-price figure reflects market trading data rather than a valuation of the proposed venture. Neither company stated the expected revenue contribution from the battery-pack business.

Approvals and next steps

The proposed joint venture requires the relevant regulatory and corporate approvals. Completion is also subject to conditions precedent. Varroc’s approved investment includes both equity acquisition and preference-share subscription. The companies have set out a product roadmap but have not announced separate milestones for each expansion phase. The initial operational priority remains battery packs for electric three-wheelers. Subsequent development is planned across two-wheelers, light commercial vehicles, buses, trucks, off-highway vehicles and industrial vehicles. The planned closing date is on or before 31 December 2026. Further disclosures may clarify the final transaction terms and operational rollout.

Conclusion

Varroc Engineering’s proposed 45% acquisition in Forsee Power India gives it management and operational control in a battery-pack joint venture. The partnership starts with electric three-wheelers and has a stated path to broader vehicle categories. Forsee Power supplies battery-system expertise, while Varroc contributes engineering, manufacturing and OEM relationships. The transaction is expected to close by 31 December 2026, subject to the stated conditions and approvals.