India’s Top 500 Companies 2019

INDIA’S TOP 500 COMPANIES 2019 110 Experts’ View Schaeffler India Limited Kindly share with us the key milestones that Schaeffler India Ltd has achieved in India since its inception? Established in 1962 as Precision Bearings India Ltd, Schaeffler India has grown leaps and bounds, from a bearingmanufacturer and supplier to components and systems supplier. In 1969, FAG Germany acquired shares in the company from Norma Hoffman. Realizing the growth potential, FAG Germany increased its shareholding from 40% to 51% . Pursuant to this, in 1986, the Company changed its name to FAG Bearings India Limited. In 2001, FAG becomes part of Schaeffler group and thereby other two companies– Luk India Pvt Ltd, INA Bearings India Pvt. Ltd. became part of the overall group. LuK commenced operations in India through a joint-venture with Rane for clutch systems. Subsequently, INA Bearings also started operations with a small manufacturing facility in Pune. Later in 2007, we set up a Greenfield plant in Talegaon, Pune. In 2012, new plants were set up at Savli and Hosur for advanced Gen C and Hydraulic CRS, respectively. In 2017, FAG Bearings India Ltd was renamed as Schaeffler India Ltd, following which, in 2018 INA Bearings India Pvt Ltd and LuK India Pvt Ltd were merged with Schaeffler India Ltd. Over the journey of 55 years, the company clocked double digit growth on a CAGR basis. From a sales turnover of ` 30- 40 crores in 1970s, the company is now close to nearly ` 5,000 crores. Today, the company is one of the leading automotive and industrial suppliers in India, with a workforce of around 3000 employees. Since its inception, the company has been a listed entity, which is one of its key strengths. The company’s reputation and market capitalization has also grown significantly over the years. What are the key differentiating factors for the company from its peers that have led to the overall success of the business? In my opinion, Schaeffler is uniquely positioned in the Indian market with a balanced business portfolio and long- standing customer relationship backed by strong manufacturing footprint and extensive distribution network. We also have a strong focus towards R&D. Over the years, we have successfully grown from a components manufacturer into a complete components and systems supplier by leveraging the collective strengths across our range of products and strong product brands. Another differentiating factor is the unification of our entities, which has helped in establishing ourselves in the domestic automotive and industrial markets, with a diversified product portfolio across both the segments and overcome business cycle risks We provide cutting-edge technology toour customers, ahead of competition – the company pioneered wheel bearing module units and Gen-C bearings (noiseless bearings). On the automotive side too, our acumen in mechanical tappets , drone technology and diaphragm technology is a key differentiator. We enjoy enhanced financial profile due to agility and strong capital efficiency emanating from our efficient operations (MOVE-Lean manufacturing principles), which render superior growth and margins, ensuring long-term sustainable value creation for our shareholders. Our robust and extensive pan-India distribution network in both automotive after-market as well as industrial distribution is another plus point. Our value-added services like remote condition monitoring (Industry 4.0), refurbishment, training solutions further add to our business proposition. How do you plan to capture the next phase of growth in the economy? The Indian economy offers immense growth opportunities to companies like Schaeffler India. As stated earlier, we have SATISH PATEL Director- Finance & CFO Dun & Bradstreet