SKF India will invest Rs 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.
The company has also envinced interest in growing inorganically especially in segments other than bearings. "We have a strong balance sheet position and also in a state to go ahead with any good oppurtunity (for acquisition) coming our way", said Tom Johnstone, president and CEO, AB SKF.
Meanwhile, to diversify its business initiative, the company is looking to reduce its focus on the bearing segments and channel more investments on other areas like housing/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.
Currently, about 90% of the company's 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 targetted four years.
"We are currently in the number one position in the bearing segment in the country but we don't want to depend only on it for our future growth. We would be expanding in other areas of our existing business fortfolio also", said Makhija.
AB SKF, the parent company based in Sweden, which holds 46.72% of SKF India is hoping to double its revenues from India from 4% currently.
Earlier this year, the company invested Rs 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 1/3rd, fuelling the growing demand in the booming automotive and other key manufacturing sectors. The plant will be operational in March 2008.