FAG Bearings and SKF India, the top two companies in the bearings industry both have a foreign parent and are vying to improve their market pies
23-Apr-2015 •Dhruv Singhvi
FAG Bearings India
FAG Bearings was incorporated in 1962. Schaeffler Group, Germany, is the promoter of the company, with a 51 per cent stake. It is the world's second largest rolling bearing manufacturer. In India, FAG is the second largest player in the bearings industry, with a market share of about 18 per cent. FAG's exposure to the auto segment is 35 per cent and industrial bearings contribute to 51 per cent of the revenue. Sixteen per cent of sales comes through exports.
SKF India, incorporated in 1961, is the Indian subsidiary of the Sweden-based SKF Group (54 per cent holding), which is a global leader in bearings. SKF, India's largest player in the bearings industry, holds a domestic market share of about 28 per cent. Around 42 per cent of the revenue comes from the automotive segment, 50 per cent from the industrial segment and the rest from exports. SKF has 400 distributors across India with around 25,000 retail touch points.
The bearing market size in India is approximately ₹85 billion. Domestic players account for about 53 per cent of this demand, and 40 to 45 per cent demand is met through imports. Though bearing manufacturers have also diversified in verticals like the industrial segment, the fortunes of the bearing industry are directly linked to the automotive industry in India. Aftermarket requirement from the automotive and industrial sectors constitutes approximately 35 per cent of the total bearing demand.
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