SKF AB (Sweden; Stockholm: SKFA) confirmed the latest developments in its efforts to continue aggressively expanding a manufacturing base in India.

SKF's sales in India hit a record Rs 13 billion ($295 million) in 2006, up more than 33% from 2005's Rs 10 billion ($223 million).

More than Rs 5 billion (USD $115 million) is already committed to develop additional manufacturing there to meet fast-growing demand from wind energy, oil and gas production, automotive, two-wheeler, and industrial sectors -- taking the total number of plants there to four. Constrained production remains a problem, so the company has set a goal of doubling its output from India 2010.

Rakesh Makhija, Managing Director of SKF India noted: "This will be the largest investment by SKF worldwide in one single country."

Historically, SKF has been investing around Rs 1 billion ($23 million) each year in India, so the new programs more than quintuple that level.

The company's plants in Pune and Bangalore are being expanded.

A greenfield facility is being built in Haridwar, Uttarakhand. It will produce tapered roller bearings physically closer to clients such as Hero Honda, Bajaj Auto, Tata Motors, and Mahindra & Mahindra.

article: SKF building new ball bearing plant in India
SKF has now formally announced its expansion into Ahmedabad, revealed earlier but never formalized. The new facility there is budgeted at Rs 2.7 billion and will be dedicated to producing large-size bearings for high-growth industrial markets such as oil & gas exploration, heavy industry, and wind power. Worldwide, manufacturers are rushing to add capacity for large industrial bearings, a market where shortages have become common.

Mr. Makhija said: "We acquired 50 acres of land for this facility only about a week ago. The land acquisition was delayed, but the deal is now closed."

Ahmedabad is expected to be online by mid-2009.

Tom Johnstone, SKF President and CEO, said: "Although India's share of our global turnover is only around 3% to 4%, it is one of the fastest growing markets, and involves some of our biggest investments."