SKF India Group, a prominent player in the auto parts industry, has undertaken a strategic demerger, separating its automotive and industrial divisions. This move will see the company operate through two distinct units, with a total investment of roughly ₹1,460 crore planned by 2030 for capacity expansion and the establishment of new factories.
The demerger of the industrial business was implemented on October 1, 2025, following approval from the Mumbai NCLT. The new company, SKF India (Industrial) Ltd, is expected to be listed on the stock market by November 2025, subject to regulatory clearance. Under the demerger scheme, current shareholders of SKF India Ltd will receive shares in the newly formed SKF India (Industrial) Ltd. The original entity will now concentrate on the automotive business, providing investment opportunities in two distinct growth areas.
The automotive business will focus on India’s mobility transformation, including electric vehicles, hybrid models, premium segments, last-mile delivery, and advanced safety systems. The company is set to invest ₹410.510 crore by 2030 in Haridwar, Pune, and Bengaluru. The aim is to fulfill the increasing demands of OEMs and broaden its retail and service networks to become the preferred partner for automotive manufacturers.
SKF India (Industrial) Ltd will concentrate on expansion within the industrial sector, encompassing manufacturing, railways, renewable energy, cement, mining, and metals, all contributing to India’s energy transition and infrastructure growth. This unit is earmarked for an investment of ₹800.950 crore by 2030, including channel expansion and the construction of a new manufacturing unit in Pune by 2028.
SKF India’s core operations revolve around rotating shaft technology, encompassing bearings, seals, lubrication management, condition monitoring, and related services.
The demerger was approved by the board in the fourth quarter of FY24, and subsequently by shareholders and regulators. The objective is to increase the strategic focus of both businesses and generate better value for investors.