SKF India completes demerger to form independent industrial and automotive entities!

SKF India has completed its much-anticipated demerger, a landmark restructuring move that formally came into effect on October 1, 2025. The separation has created two distinct entities—SKF India (Industrial) Limited and SKF Automotive (SKF India Limited)—each with a clear mandate to strengthen its position in rapidly evolving industrial and mobility markets. The Industrial arm is expected to be listed on the exchanges by November 2025, subject to regulatory clearances. This step marks one of the most significant strategic shifts in SKF’s century-long presence in India and underscores the company’s ambition to align with the country’s manufacturing and mobility priorities.

The demerger was initially approved by SKF India’s Board in the fourth quarter of 2024 and subsequently received shareholder and regulatory approval. It has been positioned as a transformational change, allowing the businesses to sharpen their focus, enhance operational agility, and accelerate investments in their respective sectors. For shareholders, the move ensures continuity of ownership with additional value creation opportunities. Each shareholder of SKF India will now receive one equity share in SKF India (Industrial) Limited for every share held in SKF India Limited, providing exposure to two complementary but independent growth stories.

According to the leadership team, this restructuring represents more than a financial exercise—it is a strategic reorientation that reflects the divergent growth trajectories of India’s industrial and automotive sectors. Mukund Vasudevan, Managing Director of SKF India Limited, described the demerger as a defining milestone. He noted that the formation of two specialised companies positions SKF to capitalise on India’s twin growth engines: industrialisation and mobility. The Industrial company is expected to play a pivotal role in advancing India’s manufacturing capabilities, railway network expansion, infrastructure development, and renewable energy transition, particularly in wind power. At the same time, SKF Automotive is gearing up to leverage emerging opportunities in electric vehicles, last-mile delivery solutions, premiumisation of passenger vehicles, and advanced safety technologies.

The growth roadmap laid out by SKF for both businesses is ambitious. SKF Industrial plans investments of between ₹8,000 and ₹9,500 million through 2030, focusing on sectors such as manufacturing, railways, cement, mining, and metals. The company is set to expand its distribution channels and establish a new manufacturing facility in Pune by 2028, further strengthening its supply capabilities. SKF Automotive, on the other hand, has earmarked investments of ₹4,100 to ₹5,100 million over the same period. Its expansion strategy includes scaling up production capacities in Haridwar, Pune, and Bangalore, with a particular focus on meeting the demands of India’s growing electric vehicle ecosystem and enhancing bearing solutions for two-wheelers and passenger vehicles.

With independent boards and governance structures, both entities will enjoy greater strategic autonomy while continuing to draw on SKF’s global innovation and technology ecosystem. The restructuring not only enhances transparency for investors but also provides clearer performance metrics and sector-focused value streams. By separating its industrial and automotive operations, SKF India has set the stage for faster decision-making, improved resource allocation, and a sharper response to evolving market dynamics.

Industry experts believe the move is timely, given India’s push towards sustainable mobility and its aspiration to become a global manufacturing powerhouse. With this demerger, SKF India is not just reshaping its corporate structure but also positioning itself as a long-term enabler of the country’s economic growth. The creation of two independent entities underscores the company’s commitment to unlocking stakeholder value while reinforcing its legacy as a trusted partner in both industrial and automotive transformations.