Swedish multinational SKF president and CEO Mr Tom Johnstone said that “The crisis in the eurozone has resulted in ‘the easing of business during the current year.”

Addressing the media after the inauguration of the company's Global Technical Centre India (the second in Asia after Beijing), Mr Johnstone said that “The sale of cars and heavy vehicles in Europe has slowed down this year. The transportation sector accounted for a substantial proportion of SKF's global revenues.''

Mr Johnstone said the recent evidence also pointed to a slowing down of the Chinese renewable energy and transportation sectors. Sales in Asia accounted for about one fourth of SKF's global sales of about EUR 6.7 billion in 2010, mainly in China and India. About 41% of the company's revenues came from Western Europe. He said that the company had set three long-term targets increasing operating profits at an annual rate of 15%, improving sales annually by 8% and of achieving 37% return on capital employed.

Asked if the company is worried about growth in India, SKF India country head Mr Shishir Joshipura said that sales in India had grown 16% in the first nine months of the current calendar year. He added that “Even if the pace slows down, we expect to grow faster than the rest of the market.”

The Indian subsidiary, which has manufacturing facilities at six locations, registered a turnover of INR 2,300 crore in 2010. Mr Joshipura said that “Revenues have grown annually at 15% in the last seven years.”

Mr Joshipura further said that the GTCI, spread over 6,500 square metres, in which SKF has invested INR 50 crore, would employ 400 persons. The facility, which also houses a metallurgy and chemistry lab, would develop products for the Indian market. It would also improve manufacturing processes.

(Sourced from HINDU)