Schaeffler India Limited
Schaeffler India Limited, formerly FAG Bearings India Limited, is an India-based company, which is engaged in the sale of ball/roller bearings and related components and sale of machines. Bearings are mechanical components used to reduce friction within the rotating equipment. Global bearings market is dominated by multinational companies like SKF, NTN Corporation, Schaeffler AG, JTEKT Corporation and few others. The Company produces its products under the brands, INA/FAG and LuK, across the world. Its portfolio of products and services include Rolling and Plain Bearings, Linear Rolling Bearings and Linear Plain Bearings, X-Life, Continuously Variable Transmission, Balance shaft Damper, Dual Mass Flywheel, Systems for Automatic Transmissions, Clutch Release systems, Internal Crankshaft Damper, Arc Spring Damper and Hydraulic Clutch Slave Cylinder.
It operates across sectors, including automotive original equipment manufacturer (OEM), industry OEM, aftermarket and exports. The Company manufactures over two and three wheeler, passenger vehicles, commercial vehicles and agricultural tractors. It offers value added services, such as bearing mounting, lubrication, shaft alignment, and roll shop maintenance. Demand in the Global bearings market has remained flat in the last few years however demand prospects are likely to improve in the long-term.
Indian bearing market is estimated at Rs 95 billion and it constitutes less than 5% of global bearing demand. In
terms of consumption, about 60% requirement is catered through domestic production while remaining is met
through imports. Domestic bearing industry is also facing heat from counterfeit market, primarily imports from China, which roughly accounts for 10% of domestic market in terms of revenue.
In terms of demand dynamics, OEMs constitute 60% of demand whereas rest is driven by aftermarket and exports. Industrial segment constitute 52% of domestic bearing demand which is largely driven by general machines/motors, electrical equipment (fans/appliances) as well as heavy industries. Increasing automation in manufacturing units, thrust by Government’s ‘Make in India’ program, spending towards railways and metros will support growth of manufacturing and engineering sector, which augurs well for bearing industry - ICRA