The Indian subsidiary of Swedish auto component maker SKF is planning to invest Rs. 150 crores in India. SKF is a leading technology and solutions provider of bearings, seals and related products. It will set up a new manufacturing plant in Haridwar in Uttrakhand. SKF is the largest auto component manufacturing firm in India for bearings and seals for aerospace.
The new production unit will increase the manufacturing capacity of ball bearings by at least 30 percent. It shall be company’s fifth manufacturing unit in India. SKF already has nearly 120 manufacturing units across the globe. The company has taken the decision looking at the increase in demand for auto parts. It had earlier put this investment on hold for past two years due to slowing demand.
“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,” said SKF India MD Rakesh Makhija. “Hero Honda is doubling production to one million motorcycles in Haridwar so 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,” he added.