SKF India, a manufacturer of bearings, plans to expand manufacturing capacity across both its automotive and industrial segments by 2030. These expansion plans involve the company’s plants in Haridwar, Bangalore and Pune.
The Haridwar plant is set for a 50 percent capacity increase, supported by an investment of INR 1,000–1,500 million, targeted for completion by 2029. The Bangalore plant will see a 10 percent increase in capacity with a projected investment of INR 100 million by 2026. The Pune facility—designed to manufacture unitized wheel-end bearings for both internal combustion engine and electric vehicles—is slated for a 30 percent capacity increase, backed by an investment of INR 3,000–3,500 million by 2030.
On the industrial side, SKF plans to construct a new manufacturing plant in Pune by 2028 and expand its distribution channels to support both domestic and export markets. The company has earmarked INR 8,000–9,500 million in capital expenditure over the next five years for the industrial business.
These investments come alongside the company’s proposed demerger of the two businesses into separate entities to enable strategic focus and improve operational efficiency, specifically addressing differences in growth drivers, product cycles, and customer bases.
As part of the proposed demerger, the automotive business will take full ownership of the Haridwar facility, while the Bangalore and Pune plants will be divided between the two entities. Of the company’s 36 production lines across all locations, 23 will be allocated to the automotive segment and 13 to the industrial segment. Manpower is expected to be distributed with approximately 55–60 percent allocated to automotive and 40–45 percent to industrial, based on company estimates that may be subject to change following the demerger.
SKF India expects revenue in the automotive segment to grow at a compound annual growth rate (CAGR) of 10–12 percent through FY2028. Revenue in the industrial segment is expected to grow at a CAGR of 8-10 percent for the same time period. EBITDA margins are projected to remain in the range of 17–19 percent for the automotive business and 16–18 percent for the industrial segment.
The demerger process is underway, with key steps including shareholder approvals and clearance from the National Company Law Tribunal (NCLT) expected in 2025.
Founded in 1923, SKF India manufactures bearings and related solutions for both industrial and automotive sectors. As of FY2025, the company operates three manufacturing plants and works with over 550 distributors across the country. For FY2024–25, SKF India reported revenue of INR 49,199 million and a profit after tax of INR 5,658 million.