Auto component major SKF India has announced plans to invest up to Rs 14.60 billion by 2030 across its newly demerged automotive and industrial businesses. The investment will focus on capacity expansion, channel development, and establishing a new manufacturing facility.

The company recently completed the demerger of its industrial business, effective October 1, 2025, following approval from the National Company Law Tribunal (NCLT), Mumbai Bench. The demerged entity, SKF India (Industrial), is expected to be listed by November 2025, subject to regulatory clearances.

Under the approved scheme, shareholders of SKF India will receive one fully paid equity share of SKF India (Industrial) Ltd for every share held in SKF India. The original entity will continue as SKF Automotive, allowing investors exposure to two distinct yet complementary growth areas.

SKF India (Industrial) will focus on key sectors including manufacturing, railways, renewables, cement, mining, and metals, which underpin India’s industrialisation and energy transition. The company plans to invest Rs 8–9,50 billion through 2030, including the establishment of a new manufacturing facility in Pune by 2028 and expanding distribution channels.

Meanwhile, SKF Automotive will centre its efforts on India’s evolving mobility transformation, emphasising electrification, hybridisation, last-mile delivery, premiumisation, and advanced safety technologies. The business will invest Rs 4.10–5.10 billion by 2030 across its Haridwar, Pune, and Bangalore facilities to meet growing OEM demand and strengthen its service and retail network.

Commenting on the development, Mukund Vasudevan, Managing Director, SKF India, said, “By creating two focused and independent companies, we are aligning ourselves with India’s twin growth engines — industrialisation and mobility. This structure strengthens our ability to allocate capital effectively, accelerate innovation, and create distinct value streams for customers and shareholders.”

The demerger was initially approved by the company’s board in Q4 2024 and subsequently cleared by shareholders and regulators. SKF India continues to offer an extensive range of products around the rotating shaft, including bearings, seals, lubrication management, condition monitoring, and related services.

News source: Business Standard