Schaeffler India, a manufacturer of automotive and industrial parts, proposes to undertake capacity expansion at an investment of Rs. 1,500 crore over the next three years, which will include establishment of a new factory at Hosur at an investment of Rs. 300 crore.
The Indian arm of Schaeffler Group, the €16-billion Germany-headquartered global automotive and industrial parts supplier, has invested close to Rs. 500 crore in capex in 2022, with the primary focus on enhancing capacities. Itproposes to continue this capex over the next three years for its export business, as well as to drive its growing domestic automotive and industrial businesses.
“We have reviewed our capex strategy, taking into account various internal and external factors, and are ambitious to invest Rs. 1,500 crore over the next three years,” said Satish Patel, Director – Finance & CFO, Schaeffler India, in the company’s Annual Report 2022.
These capex investments are targeted at relocation and export growth, besides growing its domestic industrial business. The company is setting up a large manufacturing facility at Savli near Vadodara in Gujarat for industrial business and another new plant for automotive business at Hosur in Tamil Nadu.
The first phase of the Hosur project is expected to become operational by the end of this calendar year. It will manufacture transmission components and systems for both the automotive and tractor segments. It will also invest in enhancing capacities for export business.
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