SKF India Completes ₹1,460 Crore Demerger; Automotive, Industrial Units Split For Focused Growth By 2030

Auto components manufacturer SKF India has completed demerger of its automotive and industrial operations and it is committing substantial capital of up to ₹1,460 crore through 2030 for expansion across both segments, including enhanced production capabilities and a new manufacturing facility, news agency PTI has reported. The newly-formed industrial division, operating as SKF India (Industrial) Ltd, is likely to commence stock exchange trading by November 2025, pending final regulatory clearances.

The separation of the industrial operations took effect from October 1, 2025, following approval from the Mumbai bench of the National Company Law Tribunal (NCLT), according to a regulatory disclosure by SKF India Ltd.

The restructuring arrangement ensures that existing stakeholders in SKF India Ltd will obtain one fully paid equity share in SKF India (Industrial) Ltd for each share they currently hold in SKF India Ltd, which will maintain its focus on automotive operations. This structure maintains current ownership stakes while providing shareholders with direct participation in two distinct growth opportunities, the company announced.

SKF India (Industrial) Ltd will target expansion across key sectors including manufacturing, railways, renewable energy, cement, mining, heavy industries, and metals -- all critical pillars of India's industrial development and clean energy transformation.

The industrial entity has allocated ₹800-₹950 crore in planned expenditure extending through 2030, which will support extensive distribution network growth and the construction of a new production facility in Pune, expected to be operational by 2028.

The automotive division will maintain its emphasis on supporting India's transportation evolution during a period characterized by electric vehicle adoption, premium vehicle demand, last-mile delivery solutions, hybrid technology, and enhanced safety features.

The automotive business has earmarked ₹410-₹510 crore for investment by 2030 across its facilities in Haridwar, Pune, and Bangalore. These funds will support capacity enhancement to address growing requirements from original equipment manufacturers, solidifying its position as a preferred supplier for vehicle producers while expanding its service and retail presence.

Managing Director Mukund Vasudevan explained the strategic rationale behind the separationwas quoted as saying: "By establishing two specialised and autonomous entities, we are positioning ourselves to capitalize on India's dual growth drivers -- industrialisation and mobility."

He highlighted that SKF Industrial will reinforce its critical role supporting India's manufacturing expansion, infrastructure projects, railway modernisation, and renewable energy initiatives, particularly wind power. Meanwhile, SKF Automotive will expand alongside the electric vehicle revolution, last-mile commercial vehicle growth, and premium vehicle segment development.

"This organisational structure enhances our capability to deploy resources strategically, speed up innovation, and generate separate value propositions for customers and investors, while making significant contributions to India's economic development," Vasudevan was quoted as saying.

The board initially greenlit the demerger plan during the fourth quarter of 2024, receiving subsequent approvals from shareholders and regulatory authorities. The company specialises in products related to rotating shaft applications, encompassing bearings, seals, lubrication systems, condition monitoring technology, and related services.