The trend toward "smart" vehicle lighting will propel Varroc sales to more than double over the next four years, according to its CEO.
The opportunity is not merely for new lights, says Stephane Vedie, CEO of Varroc Lighting Systems. Advanced new systems also require more complex electronics and software, he told Automotive News.
Varroc is on track to double its annual sales to more than $2 billion by 2022 compared with the fiscal year that ended March 31, through a mix of acquisitions and organic growth, Vedie said.
It's currently divided about 50-50 between acquisitions and growing existing business, he said. "But the more organic, the better," he added, explaining that the vehicle lighting business is a seller's market for acquisitions, because the competition for acquisitions is heavy.
The segment is hot in part because it is going through a revolution to smart technology. That trend requires investment but also offers bigger profits.