KOLKATA: Rolling bearings and linear products maker Schaeffler India will infuse about 40 million euro for expansion in 2018 and hopes to complete the merger of its group companies by end of the year.
Schaeffler has planned a capex of 40 million euro each for expansion in India in 2018 and 2019, Managing Director Dharmesh Arora told PTI. The company follows the calendar year for accounting.
The group has three companies in the country — Schaeffler India Ltd, INA India and Luk India.
"INA India and Luk India will merge with Schaeffler India and the process is expected to be completed by 2018," Arora said.
The plants of INA in Pune and the Schaeffler India plant (FAG) in Gujarat will be expanded, he said.
Arora is optimistic about robust growth from both the automotive and industrial sectors in the next few years, and said Schaeffler is also expected to gain from revenue synergies by bundling product offerings.
In the first quarter of calendar year 2018, the company's India revenues grew 17 per cent year-on-year, while in Q2, the topline rose by 14 per cent.
Following the merger, Schaeffler India will be able to expand its product portfolio to include needle roller bearings, linear roller bearings and precision spindle bearings, he said.
It would also enable the company to cater to the full range of solutions in engine, transmission and chassis, Arora added.
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