Schaeffler India Ltd

Schaeffler India Limited, previously known as FAG Bearings India Ltd, is one of India's major ball and rolling bearing manufacturers, servicing the automotive and multiple core industrial segments. Schaeffler Group is a leading supplier of innovative solutions to automotive and industrial sectors. The Company is engaged in the development, manufacturing and distribution of high-precision roller and ball bearings, engine systems and transmission components, chassis applications, clutch systems and related machine building manufacturing activities. Its manufacturing units are located in Gujarat at Vadodara and Savli, in Maharashtra at Talegoan (Pune) and in Tamilnadu at Hosur. The Company offers a diverse range of products and services in three business segments: Automotive, Industrial and Automotive Aftermarket. In addition, it provide training to key garage influencer groups and hold fleet workshops for automotive aftermarket and industrial distribution markets. Its client-centric strategy, emphasis on innovation, and superior distribution network to maintain market leadership in these segments. Sales are evenly distributed across the automotive and industrial categories as well. FAG Bearings India Ltd was incorporated as Precision Bearings India Ltd in the year 1962. In the year 1986, the company changed their name to FAG Precision Bearings Ltd and in the year 1999, they got their present name FAG Bearings India Ltd. In the year 1993 and 1998, they became the first Indian Bearing company to achieve ISO 9001 and QS 9000 certification respectively and in the year 1999, they received ISO 14001 certification. In the year 2000, the company set up India's first production facilities to produce hub bearings. In the year 2001, the company entered a joint venture agreement with FAG Kugelfischer Georg Schaefer AG of Germany and formed FAG Roller Bearings Private Ltd for manufacture of taper roller bearings at Pune in Maharashtra. The Pune plant has the production capacity of 2 million tapered roller bearings of world class quality for automotive and industrial applications and in April 2002, they launched their product in the Indian Market. In 2002, at the global level FAG Kugelfischer Georg Sch fer KGaA became the part of Schaeffler Group. In 2003, FAG Bearings India established Validation Centre. In 2006, FAG Bearings India set up Special Machine Building unit. In 2007, FAG Bearings India commenced production of E1 spherical roller bearing. In 2009, FAG Bearings India achieved OHSAS 18001 Certification. In 2012, the company's new manufacturing unit at Savli near Vadodara was inaugurated. The company commenced production of Low-friction Ball Bearings and Large Size Bearings in October 2012. On 7 July 2017, FAG Bearings India Limited announced name change to Schaeffler India Limited. This change of name is an important step in the rollout of the new global strategy 'Mobility for tomorrow' of the company's parent group, Schaeffler AG. On 27 November 2017, Schaeffler India's INA Bearings Pvt Limited announced the expansion of its operations at Talegaon, Pune with an investment outlay of Rs 200 crore. The expansion will include a new manufacturing facility and a new R&D facility within the existing premises. The new production facility will manufacture engine and transmission components, serving the domestic and exports markets. The R&D facility will focus on enhancing product development and engineering capabilities driving innovation for customers. On 22 March 2018, Schaeffler India Limited announced that the requisite majority of the shareholders and creditors of the company have voted in favour of the scheme of amalgamation of the two unlisted entities, INA Bearings India Private Limited and LuK India Private Limited with Schaeffler India Limited at their respective meetings held on 20 March 2018, in line with the NCLT, Mumbai order and SEBI requirements. The company has also announced that requisite majority of shareholders and creditors of INA India, at their respective meetings, directed by NCLT, Mumbai, have also voted in favour of the merger. NCLT Chennai had dispensed with convening the meetings of creditors and shareholders of LuK India. The company has already obtained no objection clearance from SEBI. Under the scheme, after the sanction of NCLT and post completion of other legal formalities, Schaeffler India Limited shall issue 14.64 million new equity shares, in the ratio of 10 equity shares to shareholders of INA India, for every 65 equity shares held and 10 equity shares to shareholders of LuK India, for every 35 equity shares held. Shareholding of the Promoter group post the merger will be 74.13%. The merger is aimed at leveraging the synergies of the three companies. During the FY2018,the Company issued and allotted 14,643,464 fully paid up Equity Shares having face value of Rs 10/- each of the Company to the shareholders of INA and LuK in respect of Equity Shares held by them in INA and LuK, as per the share entitlement ratio provided under the Scheme. The synergies and economies of scale resulting from our recent unifying merger of three entities into one, and a commitment to sizeable capex into expanding our capabilities and capacity within India, makes Schaeffler a formidable force in the marketplace. During the year 2017-18, the company invested Rs 2,434 million, twice as much what we have done in the past years. These investments are for expanding plant buildings at Talegaon & Savli, and increasing the company's engineering capabilities. On 10 May 2018, Schaeffler India Ltd announced the launch of its new range of FAG SNV Housings with an aim to provide similar German quality products manufactured locally. SNV Housings' application includes agricultural machinery, paper processing industry, mining, materials processing and steel industry as well as power stations. During the FY2019, the company won the '2019 Indian Future of Mobility Product Line Strategy Leadership Award' at Frost & Sullivan's 2019 Intelligent Mobility Awards Banquet. The Hosur plant was awarded with Best Supplier Award by Tractors and Farm Equipment Limited (TAFE) India for achieving Zero PPM consistently in 2019. Schaeffler India, Pune, received the Best Supplier award for Zero Warranty and Zero PPM for 2018 from FCA India. The Company continues to make strategic investments and incurred capex of Rs 3200 million in 2019. During the FY2020, the company invested Rs 2,434 million towards CAPEX. These investments are for expanding plant buildings at Talegaon & Savli, and increasing the company's engineering capabilities. During the year, Schaeffler India won the CII's Supply Chain and Logistics Excellence (SCALE) Award'2020. The company started the Gurgaon Consolidation and Distribution Centre (GCDC) development project, Go-live is planned in February 2021. On account of the spread of COVID-19, the Government of India had imposed a complete nation-wide lockdown on March 24, 2020 leading to shut down of the Company's manufacturing facilities and logistics operations. Since then the Government of India had progressively relaxed lockdown conditions and allowed most of the industries and businesses to resume operations in a phased manner. The Company had resumed its manufacturing facilities post mandatory lockdown. In FY'21, large bearing refurbishment centre was inaugurated in Jamshedpur in partnership with Premier Bearings India Limited, a leading authorised distribution partner for Schaeffler India. It expanded distribution network in domestic market and ventured into the neighboring countries of Nepal, Bangladesh, and Sri Lanka to grow customer base. It expanded horizons and entered new growth sectors, including robotics, construction equipment, escalators, elevators, forklifts, food and beverages, defense, aerospace, and mineral processing. It launched OPTIME, SmartCheck and ProLink from the market. In 2021, the Company expanded product range in Automotive aftermarket segment to include radio coolant for sub-zero temperature markets, universal cross joint, push type clutch for CVs, among others. In addition, it launched shock absorbers that helped diversify the portfolio. During 2021-22, Company launched a new mechatronics centre in Pune, to provide smart solutions to the Indian market; launched wiper blades; increased the number of testing facilities for both local and global requirements; introduced 14 new BS-VI parts to help customers transition to the new norms. Thermal Management Module (TMM) for high-end cars was introduced which requires advanced engine/battery thermal management typically for conventional, fuel-cell, hybrid, and electric vehicles; the Company doubled warehousing capacity and modernised warehouse to service the customers better.