On March 3, 2014 CCI cleared the proposed investment in Varroc Engineering Private Limited (‘VEPL’), by Omega TC Holdings Pte. Ltd. (‘Omega’) and Tata Capital Financial Services Limited (‘TCFSL’). The transaction involved acquisition of certain number of equity shares and compulsorily convertible preference shares (‘CCPS’) of VEPL by Omega and TCFSL.

 
While examining the competitive effects of the transaction, CCI defined the relevant market as the “market of auto components” in India and observed that Omega and TCFSL are not directly engaged in the business of manufacture/sale of auto components. CCI nevertheless examined the possibility of horizontal overlaps and vertical inter-linkages between Tata Auto Comp Systems Limited (‘TACO’) and Tata Motors Limited (‘Tata Motors’), two companies belonging to the larger Tata Group and VEPL and Varroc Polymers Private Limited (‘VPPL’), a company which has common promoters as that of VEPL. CCI held that although there was limited overlap in terms of products manufactured by TACO and both VEPL and VPPL, to total market shares of TACO, VEPL and VPPL in the overlapping products are insignificant. On the products being supplied by VEPL/VPPL to Tata Group companies, CCI observed that the quantum of such sales is small and there are several other enterprises producing similar products with significant market shares. Accordingly, CCI approved Omega and TCFSL’s investment in VEPL.

For further information, please contact:

Zia Mody, AZB & Partners
[email protected]

Abhijit Joshi, AZB & Partners 
[email protected]

Shuva Mandal, AZB & Partners 
[email protected]

Samir Gandhi, AZB & Partners
[email protected]

Percy Billimoria, AZB & Partners 
[email protected]

Aditya Bhat, AZB & Partners 
[email protected]