Schaeffler India consolidation strategy is to combine strengths and competencies of its three entities to establish one strong entity, bringing its total employee strength to around 3,000 and targeting revenue of Rs 3,570 crore.
31 Aug 2017 | 3829 Views | By Autocar Pro News Desk
The Board of Schaeffler India (formerly FAG Bearings India), INA Bearings India and LuK India have approved Amalgamation for merging INA India and Luk India into Schaeffler India.
As per Schaeffler India, the key objective of the merger is to combine the strengths and competencies of its three entities ...
This is an Autocar Pro Plus article. Subscribe to continue reading.
The Board of Schaeffler India (formerly FAG Bearings India), INA Bearings India and LuK India have approved Amalgamation for merging INA India and Luk India into Schaeffler India.
As per Schaeffler India, the key objective of the merger is to combine the strengths and competencies of its three entities and establish one strong listed entity in the country in line with the Group’s strategy “Mobility for tomorrow”.
The move aims to create a leading automotive and industrial supplier with target revenue of Rs 3,570 crore and employee strength of around 3,000. Schaeffler India will establish a diversified product offering across high growth automotive and industrial segments, along with realising revenue and cost synergies by bundling product offering, leveraging its distribution networks and reduce overhead costs.
“This is an important milestone towards creating a single Schaeffler entity in India and increasing long term value for all stakeholders. This raises the corporate profile and presence of Schaeffler in India and creates an umbrella brand over three key product brands LuK, INA and FAG,” said Klaus Rosenfeld, CEO Schaeffler AG.
Dharmesh Arora, MD and CEO, Schaeffler India, said, “Schaeffler has operated in India for more than 50 years, growing from a bearing manufacturer to an Automotive and Industrial supplier.”
The merger is subject to shareholders and regulatory approvals (including stock exchanges, SEBI and NCLT) and the entire process is expected to take approximately 12 months, in the ordinary course.