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Schaeffler India to build new plant for transmission components

Schaeffler India to build new plant for transmission components
Photo courtesy of Schaeffler India

Leading industrial and automotive supplier, Schaeffler India Limited, has signed a memorandum of understanding (MoU) with Guidance, the nodal agency for the Government of Tamil Nadu (GoTN), to extend its production footprint for transmission components and systems in the Indian state. 

Under the agreement, Schaeffler India will invest more than INR3,000 million (USD40.3 million) in next four years to set-up a new greenfield manufacturing facility in Hosur, Tamil Nadu, for manufacturing transmission components and systems for the Automotive and Tractor segments. The proposal will engender tangible economic and social benefits to the state, while generating direct employment for more than 300 individuals. 

According to the MoU, GoTN will facilitate and help Schaeffler India to get the necessary infrastructural and regulatory support on a best-effort basis, including the single window facilitation as per Tamil Nadu Business Facilitation Act 2018. 

The agreement was signed at the Tamil Nadu investment conclave in Coimbatore, in presence of Shri M.K. Stalin, Hon’ble Chief Minister of Tamil Nadu. Harsha Kadam, managing director and CEO, and Satish Patel, CFO and director of Finance, represented Schaeffler India at the signing ceremony on November 23.

“This expansion is in line with our strategic growth plans for India as we continue to localize and sustainably expand our footprint. We are certain that this agreement will further strengthen the relationship and take it to the next level,“ said Kadam. 

As a leading global supplier to the automotive and industrial sectors, Germany’s Schaeffler Group has been driving forward groundbreaking inventions and developments in the fields of motion and mobility for more than 70 years. The technology company manufactures high-precision components and systems for powertrain and chassis applications, as well as rolling and plain bearing solutions for a large number of industrial applications. The Schaeffler Group generated sales of approximately EUR12.6 billion (USD14 billion) in 2020. With around 83,900 employees, Schaeffler is one of the world’s largest family-owned companies. With more than 1,900 patent applications in 2020, Schaeffler is Germany’s second most innovative company according to the German Patent and Trademark Office (DPMA).