SKF India Ltd, part of the AB SKF Group, has earmarked Rs 500 crore for new manufacturing facilities in Uttarakhand and Gujarat and augmenting capacity at its Pune and Bangalore plants. This investment will be made over a period of two years.
?This will be the largest investment by SKF worldwide in one single country,” said Rakesh Makhija, managing director, SKF India.
The company plans to invest Rs 150 crore in the upcoming facility at Haridwar in Uttarakhand. The unit will cater mainly to the automobile and two-wheeler industry and is expected to be operational by the year-end.
Another Rs 270 crore will be invested in the Ahmedabad facility, where the company plans to manufacture large industrial bearings. The plant is expected to start operations by the first quarter of 2009 and will serve both the domestic as well as global markets.
?The investment in the Haridwar facility will be made through internal accruals, while SKF Technologies (part of SKF India) will invest in the Ahmedabad facility,? said Makhija.
The company also plans to add a ?handful? of new suppliers in the country, in a bid to support the new set ups.
India contributes up to 4% of the total turnover of SKF worldwide. Currently, the Indian operation is clocking a growth of 20-30% annually.
?We intend to double our sales turnover (from India) by 2010,” said Tom Johnstone, president and chief executive officer of the parent company, AB SKF. Sectors like wind energy, oil and gas, power and other areas are where the company sees potential growth, he added.
Further, India and China are the two markets the company plans to focus on in the Asian region. Asia-Pacific currently makes up for 18% of the total turnover of the company.
SKF will soon be acquiring European magnetic bearing manufacturer, S2M, for an undisclosed sum. SKF currently already holds 12% in this company. On the India front, the company is eyeing acquisitions across its portfolio including bearing, seals and lubrication systems, said Makhija. He, however, did not divulge any details.