SKF to Invest Rs 150 cr in Haridwar Unit
Resource from: CBCC Likes:2955
Apr 27,2009
Indian arm of Swedish automotive component maker SKF is investing Rs 150 crore in a new ball bearings manufacturing plant at Haridwar, a senior executive of the company said. Mumbai-based SKF India, 51% owned by SKF, had put the investment on hold for the past two years due to slowing demand.
But the recent spurt in automotive sales has made the company go ahead with the investment. The Rs 1,620-crore public-listed firm is the largest domestic maker of automotive bearings and seals for aerospace, automotive & industrial sectors. SKF India MD Rakesh Makhija said, ”Auto sales have revived in the January-March quarter and we expect demand to grow in the future. As the economy is expected to improve in the next few months, we will be ready with the plant early next year.”
The proposed plant at Haridwar would be its fifth unit in the country, and SKF group has 120 manufacturing sites and sales companies in the world. It has four plants in India, which are already in operations including two units in Bangalore and one in Pune. Last year, it started production at Ahmedabad that absorbed investments worth Rs 250 crore.
The facility will supply to Hero Honda and eventually cater to other companies like Bajaj Auto, Tata Motors, Ashok Leyland and Mahindra & Mahindra. It will supply ball-bearings to Tata Motors for its Pantnagar plant and Bajaj Auto for its Rudrapur facility in the later stage. SKF is supplying ball-bearings to Hero Honda from its Bangalore unit.
“Hero Honda is doubling its production to one million motorcycles in Haridwar so its a strategic decision be close to the client. We have a five-year lock in supply agreement with Hero Honda but shall develop the 10-acre facility to supply to other auto makers,” Mr Makhija said.
He added that SKF India is targeting a turnover of Rs 100 crore after two years of operations at Haridwar, which is located in the northern state of Uttarakhand. Industrial units in Uttarakhand enjoy certain tax benefits which has attracted a number of manufacturing firms to the state over the last few years.
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