As the automotive industry undergoes rapid transformation amidst technological advances and changing consumer demands, newly appointed Chief Technology Officer Fritz Abraham is steering Varroc Engineering towards a future of integrated systems and cross-functional innovation whilst maintaining its position as India's premier automotive component manufacturer.
03 Dec 2024 | 6730 Views | By Shahkar Abidi & Ketan Thakkar
A seismic shift is underway at Aurangabad-based lighting component supplier Varroc Engineering under the helm of Fritz Abraham, who took over as the company's chief technology officer at the beginning of April 2024. The automotive supplier, traditionally a heavyweight in manufacturing lighting components for the world's vehicle makers, is in ...
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A seismic shift is underway at Aurangabad-based lighting component supplier Varroc Engineering under the helm of Fritz Abraham, who took over as the company's chief technology officer at the beginning of April 2024. The automotive supplier, traditionally a heavyweight in manufacturing lighting components for the world's vehicle makers, is in the middle of a major review and reassessment of its core strategies under Fritz Abraham, who joined as Chief Technology Officer in April 2024.
Fritz Abraham has over two-and-a-half decades of experience across companies such as Magna Powertrain, American Axle, and Siemens, with particular expertise in E-powertrain and automotive software development, Abraham has built a reputation for driving innovation, especially in the fields of electrification and advanced automotive engineering.
His career began in Austria, where rigorous R&D practices and high standards for quality and safety shaped his approach to engineering. When the opportunity at Varroc arose, Abraham saw it as a unique chance to bring his background to a company poised for growth in one of the most dynamic automotive markets in the world.
At Varroc, he is primarily responsible for the technology strategy, product portfolio, process optimisation, industrialisation, and technical customer engagement. Abraham's ambition is not merely to evolve Varroc's engineering structure but to advance it by leaps and bounds, leveraging the rapidly transforming automotive landscape.
Over the last three-and-a-half decades, Varroc has carved out a substantial industry presence for itself with a portfolio that is as varied as it is comprehensive. Spanning electrical, electronics, lighting, polymer, metallic, ADAS (Advanced Driver Assistance Systems), and aftermarket solutions, the company's advanced safety technology can be found in nearly every vehicle type—from nimble two-wheelers to robust commercial and off-highway vehicles.
The first major change undertaken since the arrival of the new CTO is in the company’s organisation. For years, Varroc's engineering teams worked in silos, with divisions dedicated to materials—metals, plastics, or electronics—that rarely crossed paths.
Each team focused on its specific competencies. Now, under Abraham's leadership, Varroc is breaking down these barriers, reorienting its entire engineering operation towards a "centre of competence" model focused on product lines rather than raw materials. This shift enables each team to address a product holistically, leveraging expertise from every corner of the company. The anticipated result is a faster development cycle, fewer delays, and agility that can keep pace with the increasingly complex demands of the automotive industry.
"I am completely changing the engineering," Abraham says, summing up the scope of his ambitions, "product-wise and through centres of competence."
Abraham completed his master's degree in electrical engineering from Technical University Graz, Austria. His academic background has aided him in laying a solid foundation for his technical acumen, enabling him to tackle complex engineering challenges with a methodical and analytical approach.
One early demonstration of this new approach was in the design of a side-step slider—a product that, in the past, would have required lengthy back-and-forth amongst departments. This time, Abraham's team tapped into cross-functional insights from plastic, electronics, and actuator specialists, streamlining the design process and accelerating its journey from concept to production. The success of this model has set the tone for Varroc's other product lines, extending from core automotive lighting to cladding components and even electric vehicle (EV) parts, all of which are poised to benefit from the enhanced, interdisciplinary approach.
Another such product is an Integrated Starter Generator (ISG), a modular motor-generator system that Abraham's team rolled out for production in the first half of the fiscal year. The ISG is a microcosm of Varroc's new philosophy: a single product capable of replacing several legacy components. By consolidating the starter motor, magneto, gear pinion, clutch, and regulator rectifier into one system, the ISG offers quieter start-ups, better fuel efficiency, and higher reliability in frequent stop-start conditions. For automakers, this isn't just an incremental improvement but a blueprint for the integrated systems future cars will require.
Alongside the ISG, Varroc recently unveiled a two-stage, soft covering process for interior panels. Traditionally, this "soft wrapping" technique has been labour-intensive, reliant on highly skilled workers to craft a seamless look. Abraham's team, however, introduced a hot-press lamination process that combines materials—plastic substrate, mesh foam, leather, and adhesive—in two efficient steps. The result is a soft-touch finish that doesn't just feel premium but aligns with Varroc's vision for future-forward interior materials that reflect the demands of both automakers and their customers.
Bringing Global Best Practices
So what does Abraham bring to the table at Varroc? "Operational excellence. So what I learned with these OEMs in Europe is process maturity at the top," Abraham notes. Each requirement can be broken down into sub-requirements and tracked with test cases, he points out.
Part of Abraham's strategic vision includes an aggressive alignment with international safety standards, a necessity in today's globally competitive industry. Varroc is adopting ISO 26262, a functional safety norm that governs systems' responses in the event of failure, and is preparing for ISO 21434, a cybersecurity standard gaining importance as vehicles become more connected. Abraham sees these standards as non-negotiable for Varroc's future, even if the Indian market is slower to adopt them.
"Functional safety just takes care that the system always goes to a safe state, whenever software and electronics are in place. If the microcontroller is dead, the system goes to a safe state…You can imagine a tonne of electronics, a tonne of software coming to it," he notes, explaining that in Europe and other mature markets, many of these functions are already in place.
While India's cost-sensitive market may view them as excessive, they're crucial for global competitiveness. Abraham explained that he wants to ensure that Varroc is ready whenever the demand emerges in the Indian market.
Alongside safety and security standards, the push for software expertise has taken centrestage at Varroc. Historically, the company's expertise lay in mechanical and optical engineering, but the increased integration of electronics and software in automotive components is changing that.
Today, software development accounts for a growing share of R&D efforts, and Varroc's talent acquisition and training programmes are evolving accordingly. The company partners with universities to cultivate new talent, especially in high-demand areas such as optics and software development, while also focusing on retention through a positive work culture.
New Order Wins
In FY24, Varroc's revenue from continued operations reached Rs 7,579.5 crore, a testament to its expansive footprint and diverse offerings. Employing over 7,000 people—including a robust team of more than 750 R&D engineers—the company operates 36 manufacturing facilities worldwide, supported by seven research and development centres. The company also has more than 100 patents to its name.
In terms of segments, the electrical, electronics, and lighting segment alone drives around 37.5% of its income, with polymer products contributing approximately 34% and metallic parts another 12%. Notably, Varroc remains grounded in its home market, with around 87% of its business derived domestically; however, its influence extends overseas, reaching a growing audience beyond Indian borders.
In the first half of fiscal year 2025, Varroc had a capital expenditure budget of Rs 103 crore, with plans to accelerate this spending in the latter half of the year. This increase reflects strategic investments in additional Surface-Mount Technology (SMT) lines and expanded capacity for electric vehicle (EV) production. The company is also laying the groundwork for future growth with land acquisitions in southern and western India.
Varroc's order book remained robust through H1FY25, with significant wins across both domestic and international markets. The company secured new business wins with projected peak annual revenues of Rs 604.6 crore, over 37% of which stem from orders linked to electric vehicles. In keeping with the evolving demands of the automotive industry, Varroc has enhanced its offerings with an array of technologically advanced products.
Production has commenced on integrated starter generators and soft-touch door panels, while recent wins include contracts for Battery Management Systems (BMS) tailored to EVs—further enriching Varroc's stake in the EV ecosystem. Additionally, a contract for interior ambient lighting with a global player marks a strategic expansion into the four-wheeler segment, aligning Varroc with the growing trend towards luxurious, tech-enhanced vehicle interiors.
"We will continue to innovate by further strengthening our engineering capabilities, streamlining our operations through further cost reductions and working capital optimisation," said CMD Tarang Jain.
On the Shining Path
As Varroc delves deeper into India's lighting landscape, it has to live up to global benchmarks that are both motivating and challenging. The technology is available in India, but implementation lags—something Abraham is determined to change. LED lighting, which moved into India's market swiftly, is a testament to what's possible when demand and infrastructure align.
Abraham's optimism is palpable: "In terms of tech, India is not far behind. But when we talk about real-world applications, we're still catching up." With Varroc's redefined engineering strategy and expansion plans, the company is readying itself to be one of the leaders from the Indian auto components sector on the path towards global standards.