SKF India outlines demerger strategy and growth plans

SKF India has released transcripts from its investor call held on June 30, 2025, outlining its strategic decision to demerge its automotive and industrial businesses. The company believes this will create two high-performing entities, better tailored to the unique demands of their respective markets. The demerger, expected to conclude in October or November 2025 with a listing targeted for December, will see resources allocated based on specific business needs, enhancing manufacturing efficiency and customer responsiveness. SKF India reported a strong FY24/25 performance, with revenue exceeding INR 5,000 crore, an EBITDA of 17.2%, and a PBT of 11.5%. Looking ahead, the company expects automotive growth in the 10%-12% range and industrial growth in the 8%-10% range over the next three years, with a maintained EBITDA profile of 17%-19%. The company will increase focus on localization and exports, supported by capital expenditures of approximately INR 500-600 crore between 2025 and 2030.