Further to the announcement made on August 30, 2017, and following clearance of the transaction by the key stakeholders and regulatory authorities, Schaeffler India Ltd., formerly FAG Bearings India Ltd., has announced the successful completion of the merger of INA Bearings India Private Ltd. and LuK India Private Ltd. with Schaeffler India effective October 22, 2018.
The combined entity is one of the leading Indian automotive and industrial suppliers with over Rs. 41 billion in revenues and around 3,000 employees.
The Schaeffler Group, a leading global automotive and industrial supplier, also inaugurated a new production hall at its state-of-the-art facility in Pune marking the “One Schaeffler” entity. This will boost local manufacturing capabilities of the Schaeffler Group in India. It will manufacture engine and transmission components, serving both the domestic and export markets.
The facility was inaugurated by Mr. Georg F.W. Schaeffler, Chairman of the Supervisory Board, and Mr. Klaus Rosenfeld, CEO of Schaeffler AG, and Mr. Avinash Gandhi and Mr. Dharmesh Arora, Chairman and CEO respectively of Schaeffler India Ltd.
Commenting on the merger, Mr. Georg. F.W Schaeffler, said: “The consolidation of our three entities in India is a big step and in alignment with our approach of ‘One Schaeffler’. It will allow us to capitalise on the significant growth opportunities in India. We look forward to continuing a seamless integration across the Indian organizations to serve our customers even better.”
The combined entity will offer a full range of mobility solutions in engines, transmissions and chassis components as well as a wide range of ball and roller bearings, housings and services across mobility and industrial applications shaping Mobility For Tomorrow.
Commenting on future plans in India, Mr. Klaus Rosenfeld observed: “Being one strong Schaeffler entity in India now, it is important for us to focus on customer needs and look at expanding our product portfolio. The Schaeffler Group pursues the strategy of ‘a global player with local presence’ and remains committed to its India business.”
“India presents tremendous opportunities for us and, therefore, we have doubled the investment in India to the tune of Rs. 3,250 million this year and will continue to do so for the next few years. This will significantly boost our capacity, capability and competency to serve our customers in the region.” he added.
Brand strengthening
The merger also brings more visibility to the Schaeffler brand. All company locations will receive a new uniform brand identity governed by the corporate brand Schaeffler. This will help to standardize the worldwide image of all Schaeffler locations.
This changeover is taking place as part of the “Global Branding” project, one of the initiatives that make up the future program “Agenda 4 plus One” with which Schaeffler is implementing its strategy “Mobility for Tomorrow”. The corporate brand will further strengthen and complement the already strong and well-recognized product brands of FAG, LuK and INA.
Commenting on the developments, Mr. Dharmesh Arora said: “I thank our shareholders, Board of Directors and all other stakeholders, as this milestone has been possible only due to their strong support. It is a significant moment for Schaeffler in India as we become one strong entity focused on future growth. The new facility in Pune, once it starts production, will enhance our capability and capacity to serve our customers.”
As per the recently announced results, the company’s revenue from operations (net) for (July – September 2018 period) is Rs. 11,915 million, higher by 18.7% than the corresponding quarter of 2017, and PBT (before exceptional items) is Rs. 1,782 million, higher by 20.9%.