SKF India Limited , a leading manufacturer of bearings and lubrication systems, has received shareholder approval for its proposed demerger plan. The decision was made during a special meeting convened as per the directions of the National Company Law Tribunal (NCLT), Mumbai Bench, held on July 14, 2025.

Demerger Details

The approved scheme involves the demerger of a part of SKF India's business into a new entity called SKF India (Industrial) Limited. This strategic move aims to streamline operations and potentially unlock value for shareholders.

Shareholder Meeting Highlights

• The meeting was conducted through video conferencing, in compliance with regulatory guidelines.
• A total of 59 shareholders, representing 2,60,96,069 shares, participated in the virtual meeting.
• The resolution to approve the Scheme of Arrangement was passed as a special resolution.

Voting Results

The voting results demonstrated overwhelming support for the demerger plan:

Management Commentary

Mr. Kuldeep Kumar Kareer, the NCLT-appointed chairperson for the meeting, explained the salient features and rationale behind the demerger scheme to the shareholders. The company's management, including Mr. Mukund Vasudevan, addressed queries from shareholders during a Q&A session.

Next Steps

With shareholder approval secured, SKF India will now proceed to seek final approval from the NCLT for implementing the demerger. The company will keep stakeholders informed of further developments through appropriate disclosures to the stock exchanges.

Investors and stakeholders are advised to monitor official company communications for updates on the demerger process.

SKF India , a leading manufacturer of bearings and lubrication systems, has announced a bold investment strategy coupled with optimistic EBITDA projections for its industrial and automotive segments. The company's plans signal a strong commitment to growth and operational efficiency in the coming years.

Substantial Capital Expenditure Plans

SKF India has outlined a significant capital expenditure (capex) plan, demonstrating its confidence in future market opportunities:

• Total Investment: The company plans to invest up to Rs 1,460 crore by 2030 to enhance manufacturing capabilities across key facilities.
• Segment-wise Allocation:
  • Industrial Business: Rs 800-950 crore
  • Automotive Business: Rs 410-510 crore
• Focus Areas: Capacity increases in Haridwar, Pune, and Bangalore plants.

This substantial investment underscores SKF India's commitment to expanding its manufacturing capabilities and strengthening its market presence in both industrial and automotive segments.

EBITDA Projections

Alongside its investment plans, SKF India has provided EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) projections for its two main business segments:

These projections suggest that SKF India anticipates maintaining robust profit margins across both its industrial and automotive divisions, despite the substantial planned investments.

Strategic Implications

The announced investments and EBITDA projections provide several insights into SKF India's strategy:

1. Capacity Expansion: The significant investment indicates SKF India's expectation of increased demand and its intention to boost production capacity across key facilities.

2. Segment-focused Growth: With specific allocations for industrial and automotive businesses, SKF India appears to be pursuing a balanced growth strategy across its business lines.

3. Long-term Vision: The investment plan extending to 2030 demonstrates the company's long-term commitment to the Indian market and its confidence in sustaining growth.

4. Operational Efficiency: The focus on enhancing manufacturing capabilities suggests an emphasis on improving operational efficiency and productivity.

SKF India's ambitious Rs 1,460 crore investment plan and positive EBITDA outlook reflect a strategic move to strengthen its market position and capitalize on growth opportunities in both the industrial and automotive sectors. As these plans unfold over the coming years, stakeholders will be keenly watching how these investments translate into market share and financial performance for the company.