SKF India Ltd

- Currently, SKF India has historically spent around INR 150 crores annually on capex and plans to continue this level of investment for both Automotive and Industrial businesses post-demerger. - The company is internally evaluating additional investment opportunities for both segments, especially to address capacity constraints in Automotive and growth needs in Industrial. - No specific details or decisions on new fundraising via debt or equity have been shared yet. - Management indicated that further information on investments, including additional capex beyond the INR 150 crores, will be shared once decisions regarding infrastructure and allocations are finalized in the next few months. - There is no explicit mention or confirmation of any planned debt or equity fundraising as part of the demerger or expansion in the current disclosures. - The focus remains on growing the business in the Indian market while leveraging exports opportunistically.

- Historical capex spend of around INR 150 crores annually for SKF India will continue for both Automotive and Industrial segments. - The INR 150 crores capex figure is combined; it is not INR 150 crores per segment. - Additional investment opportunities are being evaluated for both companies, especially as the Automotive business is running out of capacity and space. - Further investments will be made to support growth in both Automotive and Industrial businesses. - More detailed information on additional capex plans will be shared once finalized, expected in a few months. - The demerger is expected to spur more focused capital allocation, potentially increasing capex and M&A opportunities in both businesses. - There will be additional investments irrespective of the demerger, timed with plant capacity expansion plans.

- SKF India is focusing primarily on growth within the Indian market for both Automotive and Industrial segments, leveraging export opportunities but not prioritizing them currently. - Automotive business growth drivers include product innovation targeting low-friction bearings to address emission and safety challenges, with emphasis on electrification (EVs) and premiumization. - Industrial business growth will be driven by expanding distribution networks, value selling, critical applications focus for better pricing, and investment in services like remanufacturing and condition monitoring. - Both segments anticipate additional capital expenditures beyond the historical INR 150 crores annually to support capacity expansion and business growth. - Manufacturing efficiencies, portfolio pruning, and pricing optimization are expected to improve margins and overall financial performance. - The demerger aims to create focused entities that accelerate growth and profitability through tailored strategies for each business.

- SKF India aims to accelerate growth and profitability by creating two focused entities (Automotive and Industrial) through demerger. - Both businesses expect to continue capex of around INR 150 crores annually with potential additional investments to expand capacity, especially in Automotive. - Margins expected to improve by 2-3 percentage points on EBITDA through manufacturing efficiencies, pricing optimization, and value selling. - Automotive growth drivers: value-driven innovation (low-friction bearings), electrification, premiumization, and localization. - Industrial growth drivers: expanding distribution, value selling, regionalization, and growing services like remanufacturing and condition monitoring. - Continued portfolio pruning and customer focus to improve profitability. - Overall, steady revenue and profit growth seen historically with strong return on capital employed (~27.4% in FY24) and expected to sustain or improve post-demerger. - Focus on India market growth with selective leveraging of export opportunities.

The transcript from the SKF India Limited demerger call on April 09, 2025, does not explicitly mention details regarding the current or expected order book or pending orders. However, some related points can be inferred: - Focus remains strongly on expanding business within India across both Automotive and Industrial segments. - Automotive business is encountering capacity constraints, leading to evaluation of additional investments to grow capacity. - Industrial business is increasing distribution reach and localization to drive competitiveness. - Export contribution is currently small with primary growth focus on domestic market. - Product innovation and value selling (such as energy-efficient and low-friction bearings) aim to capture additional business opportunities. - The company is continuing to prune low-profit businesses to improve profitability. No specific numbers or direct commentary on order book or pending orders were shared during this call. Further updates are expected once decisions on infrastructure and capacity expansions are finalized.