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September 08, 2008


SKF India plans to double revenues in 4 years

BS reported that leading bearings supplier SKF India is aiming to more than double its revenue in 4 years with the company aggressively pursuing its expansion strategies in India. It is aiming for a business in excess of INR 3,000 crore, with growth of more than 20% every year.

Mr Rakesh Makhija MD of SKF India said that "We are prepared to make further investments into our Indian operations to expand our presence in India. This is especially to keep up with the automobile and industrial boom in India. We have grown at a steady pace of about 20% per annum for the last 4 years and we will continue to excel at the same pace. We are aiming to double our revenue in the next 4 years."

SKF India will invest INR 270 crore to set up a large size industrial bearings plant in Ahmedabad for domestic and international markets. Production activities are due to begin by the first quarter of 2009. It has also evinced interest in growing inorganically especially in segments other than bearings.

Earlier this year, SKF India invested INR 150 crore to set up a Greenfield plant in Uttarakhand. The new bearing factory is likely to increase the existing ball bearing capacity by more than one third, fuelling the growing demand in the booming automotive and other key manufacturing sectors. The plant will be operational in March 2008. For the last financial year ending December 31st 2006, it recorded sales of INR 1,342 crore up by 59% YoY as against INR 781 crore.

Currently, about 90% of its total revenue arises out of the bearing business. SKF India is aiming to expand its seals, lubricants, services and mechatronics businesses and thereby bring the share of the bearing business to about 20% of its total revenue in the targeted 4 years. Meanwhile, to diversify its business initiative, SKF India is looking to reduce its focus on the bearing segments and channel more investments on other areas like housing or sleeves and accessories, seals, greases, spherical plain bearings, maintenance products, condition monitoring equipments, linear motion products, special steel and a comprehensive range of their high tech industrial components.