SKF India Demerges and Plans ₹1,460 Crore Investment by 2030 Across Auto and Industrial Sectors

SKF India Group, a leading manufacturer of auto parts and industrial components, has completed the demerger of its automobile and industrial businesses, effective October 1, 2025. The move creates two focused entities: SKF India Ltd, which will concentrate on the automobile segment, and the newly formed SKF India (Industrial) Ltd, which will focus on industrial sectors. The industrial unit is expected to be listed on the stock exchanges by November 2025, pending regulatory approvals.

Major Investment Plans

Together, these two entities plan to invest roughly ₹1,460 crore by 2030 to expand production capacity and build new manufacturing facilities:

• Automobile Business:
  The automotive arm will focus on India's mobility transformation, including electric vehicles, hybrid models, premium segments, last-mile delivery, and advanced safety technologies. An investment of ₹410–510 crore is planned across facilities in Haridwar, Pune, and Bengaluru. The company also intends to enlarge its retail and service networks to maintain strong partnerships with original equipment manufacturers (OEMs).

• Industrial Business:
  SKF India (Industrial) Ltd will target growth in key sectors such as manufacturing, railways, renewable energy, cement, mining, and metals. These industries are critical to India's energy transition and infrastructure development. The industrial unit plans to invest between ₹800 crore and ₹950 crore, including establishing a new manufacturing plant in Pune by 2028 and expanding its channel presence.

Strategic Rationale and Shareholder Benefits

The demerger, approved by the Mumbai National Company Law Tribunal (NCLT) and shareholders in late 2024, aims to create sharper business focus and unlock greater value for investors. Existing shareholders of SKF India Ltd will receive one share of SKF India (Industrial) Ltd for every share held, giving them exposure to two distinct growth stories—mobility and industrialization.

Company Portfolio and Market Outlook

SKF India specializes in rotating shaft technologies, including bearings, seals, lubrication solutions, condition monitoring, and related services. The separation aligns with India's twin growth engines of industrialization and mobility transformation, as noted by Managing Director Mukund Vasudevan, who highlighted the enhanced ability to allocate capital effectively, accelerate innovation, and deliver customer and shareholder value.