SKF India Commits Rs14.6 Billion Investment by 2030 to Strengthen Manufacturing Capacity and Realign Business Segments
Svenska Kullagerfabriken (SKF) India, a leading player in the bearings and rotating equipment solutions industry, has announced a significant capital expenditure plan of up to ₹14.6 billion to be executed by the year 2030. This strategic investment aims to expand its manufacturing capacity across its key facilities in Haridwar, Pune, and Bangalore. The move reflects the company’s long-term vision of consolidating its leadership in both the industrial and automotive segments, while also realigning operations to meet the surging demand from India’s fast-evolving industrial, electric vehicle (EV), and mobility sectors.
The planned capital infusion is part of SKF India’s aggressive growth blueprint, with ₹8.0–9.5 billion earmarked specifically for the industrial business over the next five years. A significant portion of this, around ₹3.5–4.5 billion, will be directed toward expanding distribution channels and enhancing logistical capabilities across India, reflecting the growing demand from infrastructure, railways, renewables, steel, and manufacturing sectors. Simultaneously, the company is laying the foundation for a new manufacturing facility in Pune, a high-potential region for industrial expansion, with an investment of approximately ₹4.5–5.0 billion. The plant is scheduled to be operational by 2028 and is expected to play a pivotal role in ramping up SKF’s presence in the high-margin industrial solutions segment.
In tandem, SKF India will allocate between ₹4.1 and ₹5.1 billion to strengthen its automotive product portfolio by 2030, catering to the sharp rise in electrification and mobility-related applications. The company is sharply focusing on next-generation automotive technologies, particularly bearings for two-wheelers, electric vehicle (EV) powertrains, and unitised wheel-end applications for both passenger and commercial vehicles. These investments reflect SKF’s alignment with the automotive sector’s transition toward cleaner and more efficient vehicle technologies, with dedicated efforts toward building competence in EV-specific components.
The Haridwar facility, which already plays a central role in producing automotive bearings, will undergo an expansion to increase its production capacity by 50% specifically for EV powertrain bearings. This expansion, backed by an investment of ₹1.0–1.5 billion, is expected to be completed by 2029. The Haridwar plant’s strategic positioning, coupled with its technical capabilities, makes it a critical asset in SKF’s EV transformation strategy. Meanwhile, the Pune plant, already slated for industrial expansion, will also receive a separate capital infusion of ₹3.0–3.5 billion to boost production capacity by 30% for unitised wheel-end bearings. These bearings will serve both internal combustion engine (ICE) vehicles and emerging EV models, ensuring SKF maintains relevance across both legacy and future platforms. In Bangalore, SKF will invest ₹100 million to enhance production by 10%, focusing exclusively on two-wheeler and EV-specific bearing applications. This relatively smaller, yet sharply targeted investment is expected to be completed by 2026 and will support the growing demand from two-wheeler EV manufacturers, a segment experiencing exponential growth in India.
Beyond the production ramp-up, SKF India is also moving forward with a significant corporate restructuring initiative. The company has confirmed that the demerger of its automotive and industrial businesses is in advanced stages, with key milestones set throughout calendar year 2025. The final listing of the demerged entities is anticipated in the fourth quarter of CY2025. This demerger is not just a financial maneuver but part of a broader operational reconfiguration aimed at unlocking value, enhancing customer alignment, and enabling sharper business focus across distinct verticals. By separating its business units, SKF aims to ensure each segment has the independence to grow with greater strategic clarity, operational agility, and sector-specific innovation.
The decision to undertake this major capex and structural overhaul comes at a time when India is emerging as a global hub for both industrial innovation and electric mobility. With policy tailwinds such as the National Logistics Policy, PLI schemes, and rising investments in manufacturing and infrastructure, SKF’s proactive positioning places it ahead of the curve. The industrial segment is seeing a marked resurgence in demand, driven by sectors such as railways, defense, renewable energy, and construction equipment, all of which require high-performance, precision-engineered bearings. On the automotive side, India is witnessing an aggressive push toward electrification, supported by government incentives and rapidly growing consumer demand, particularly in the two-wheeler and urban mobility segments.
SKF’s upcoming plant in Pune is of particular strategic significance. As the industrial sector begins to rely more on predictive maintenance, IoT-enabled diagnostics, and high-efficiency equipment, SKF’s smart bearing technologies and connected solutions are poised to become essential components in the productivity playbooks of Indian manufacturers. By investing heavily in capacity expansion now, SKF is aiming to match and exceed the anticipated demand curve over the next decade.
While capital expenditure figures and timelines are significant, it’s the clear thematic direction of the investment that stands out. SKF India is betting big on two ideas: that India will remain a high-growth market for core industrial infrastructure over the next decade, and that the transition to electric and smart mobility is not just inevitable but already underway. These parallel trends demand a dual-track strategy—one that continues to serve legacy applications with unmatched quality and consistency, while simultaneously investing in the next-generation technologies shaping the future of transportation and production.
The upcoming demerger is expected to further sharpen this strategic approach, with each entity likely to have its own governance structure, R&D strategy, and go-to-market model. For investors and stakeholders, this could mean greater transparency, focused growth levers, and potentially enhanced returns in the long run. As India accelerates its push toward becoming a global manufacturing hub, SKF’s latest capex announcement sends a clear signal: it is ready, willing, and strategically aligned to scale with the nation’s ambitions.
