SKF eyes cost savings via local steel purchase

SKF India has begun sourcing of steel for the its ball bearing manufacture from Indian steel companies. So far, SKF had been using imported steel for its bearing applications.

Domestic sourcing would help SKF India to obtain high grade steel at lesser cost, said industry sources. About 50 per cent of the bearings manufactured by the company is exported, sources said.

Officials said the company is exploring options of sourcing steel from Indian companies for bearing applications.

To begin with, SKF has placed orders for steel with leading alloy steel maker Mukand for its ball bearing requirement. Mukand is also expecting orders for roller bearings from the company, senior company officials said.

Mukand has begun supply of 70-80 tonne per month steel to SKF. From January 2006, the consignment will be increased to 250 tonne. The monthly industry requirement of quality steel for ball bearing application stands at 1,000 tonne, of which about 400 tonne is consumed by SKF, said industry sources.

SKF India is a market leader in the bearings market with a market share of 40-50 per cent. Acknowledging the boom in manufacturing and the auto industry, SKF has lined up an investment of Rs 110 crore to expand its ball bearing manufacturing capacity to 100 million units from the existing 74 million units.

The company's taper roller bearing capacity will be expanded to 8.5 million units from the existing six million units. In addition, it will set up a greenfield unit to manufacture cylindrical roller bearings in Pune.

The automobile industry is the major user segment for bearings, followed by general engineering, heavy industries and railways. Ball bearings constitute the largest segment in the total bearings market.

Bearings find application in easing friction between moving parts, carrying load, rotating parts of virtually all machines and automobiles. The main components of an anti-friction bearing are the inner ring, the outer ring, the rolling elements, the cage and the seals.

Depending on the type of the rolling elements that are used, the anti-friction bearings segment can be classified into ball bearings and roller bearings.