SKF India to invest Rs450 crore in two new facilities
November 4, 2009
SKF India Ltd, a unit of Swedish bearing company AB SKF said it will invest Rs450 crore in its two upcoming facilities and hopes to achieve a turnover of about Rs700 crore during next year.
Speaking with reporters at Pune, Tom Johnstone, president and chief executive of AB SKF said, “Our two new factories in India at Ahmedabad and Haridwar will be ready for commercial production in the first quarter next year and this will broaden our ability to service customers from close proximity.”
The company also said it hopes to achieve a turnover of roughly Rs700 crore through these two plants in the first year of operations, employing about 500-600 people.
SKF India’s expansion plans assume importance in the light of the dismal performance the industry suffered in the wake of the global downturn. SKF’s sales volume for the September quarter dipped 27.6% over the corresponding quarter of last year, while manufacturing volume fell 34%. However, given the signs of revival, the company expects the industry to stabilise over the coming quarters, from which point it hopes to build on its already strong presence in India.
The facility in Haridwar will initially produce Small Deep Groove Ball Bearings for the automotive segment while the Ahmedabad plant will produce large size bearings, catering to heavy industries, wind and railway segment. The total investment in the two facilities comes to around Rs450 crore.
SKF has also inaugurated its first Solution Factory in India at Pune. The factory, SKF’s seventh such facility around the globe, will provide clients with access to the company’s technical capabilities and expertise in its core areas of operations like bearings and lubrication systems. Initially, it will offer bearing manufacturing and spindle services. Later, it will also provide customised product service, remote diagnostics, and customised sealing solutions.