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Schaeffler India, the local arm of Euro 25 billion German motion technology major Schaeffler AG, plans to accelerate investment, ramp up localisation efforts, and deepen its R&D footprint as it looks to tap growth across conventional, hybrid, and electric mobility sectors, its chief executive said on Tuesday.
As part of this strategy, the company has more than quadrupled its capital expenditure as a percentage of revenue, rising from around 2.5% in earlier years to 8.6% currently.
The company, which has been operating in India for over six decades, inaugurated its fifth manufacturing plant in the country earlier in the day. “It was a total greenfield project,” said Harsha Kadam, President and CEO of Schaeffler India, adding that the facility is part of a long-term plan to expand capacity and technological capabilities in India.
“We have been consistently able to deliver a double-digit growth rate every year,” Kadam said during a media briefing. “Our focus is on creating and generating value for all stakeholders — investors, customers, and employees — and performance is the only way to deliver that.”
Schaeffler India employs over 3,600 people and operates three R&D centres. Kadam stated that the company’s recent internal survey yielded a customer satisfaction score of 8.62, indicating an improvement over the past three years.
Kadam stated that the company’s localization rate currently stands at 76%, with plans to increase it further. Capital investment has also doubled in recent years, underlining parent Schaeffler AG’s confidence in the Indian growth story.
The new plant, built on a 108,000 square metre plot, will manufacture a range of clutches and house advanced heavy-duty press machines. “This is just one-third of the planned capacity,” Kadam noted, with scope for two more identical halls to be added as demand rises.
Schaeffler also intends to localize the production of hybrid powertrains and e-mobility components at the site, in line with India’s evolving automotive technology mix. The company currently employs around 1,600 engineers at its two engineering centres in India, supporting both local and global development programs.
“With IC engines still performing well, hybrids gaining ground, and EVs coming up, we are in a beautiful, sweet spot,” Kadam said. “It is a challenge in terms of investment and competence, but it is also a big opportunity. And we see plenty of opportunities ahead.”
This article first appeared on Autocar
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