SKF India Rolls Out ₹9.5 Bn Expansion Blueprint—Eyes Margin Stability Across Segments

SKF India Ltd has unveiled an ambitious ₹9–9.5 billion capital expenditure plan over the next five years, signaling a strategic push to scale both manufacturing and distribution capabilities. The investment will be split between a new production facility and channel expansion, reinforcing SKF’s long-term commitment to India’s industrial and automotive sectors.

 

Key Highlights:

 

New Plant Investment:

 

SKF will allocate ₹4.5–5 billion to set up a state-of-the-art manufacturing plant, aimed at boosting capacity and supporting next-gen product lines.

 

Channel Expansion:

 

An additional ₹3.5–4.5 billion will be invested in distribution network upgrades, including digital infrastructure and dealer outreach, to enhance market penetration.

 

EBITDA Guidance:

 

Industrial Business: Expected to maintain a 16–18% EBITDA margin over the next three years, driven by stable demand and operational efficiencies.

 

Automotive Business: Forecasted to deliver 17–19% EBITDA margins, supported by premium product offerings and OEM partnerships.

 

Strategic Outlook:

 

The company is banking on India’s manufacturing momentum, rising automation, and localization trends to fuel growth. The dual focus on capacity and reach is designed to future-proof SKF’s leadership in bearings, seals, and lubrication systems.

 

Execution Timeline:

 

The capex will be deployed in phases, with key milestones expected to be achieved between FY26 and FY30.

 

With this bold investment roadmap, SKF India is gearing up to not just meet demand—but shape it.

 

Sources: Economic Times, Business Standard, SKF Investor Reports