SKF India Ltd

- Planned capex of INR 250 to 300 crores over the next 2 to 3 years, approximately doubling the current capex of INR 130 to 150 crores. - Significant portion of capex focused on capacity expansion in Pune for both automotive and industrial segments. - New factory setup specifically for industrial bearings adjacent to existing Pune automotive plant using existing land. - Capex aims to address existing capacity shortages, especially in automotive, and to support industrial business growth. - Investments include both new capacity addition and infrastructure upgrades rather than solely localization. - Capex expected to continue doubling for the next 2 to 3 years to support demand and growth strategies. - Plans include increasing localization in industrial bearings to about 70%, up from current 30% plus. - Capital deployment tailored separately to automotive and industrial business needs post-demerger.

- Automotive sector expected to see strong growth, especially in smaller commercial vehicles driven by e-commerce and quick delivery. - Tractor segment growth anticipated to continue, supported by favorable monsoon predictions. - Larger passenger vehicle (SUV) segment showing continued growth. - EV segment is still small but growing. - Industrial segments like railways, freight, passenger, metro, and infrastructure expected to have robust demand. - Overall, the company expects continued improvements in EBITDA, PBT, and higher growth for both automotive and industrial entities post-demerger. - Full year FY25 showed solid 8% sales growth; industrial up 10%, automotive 6%. - The company expects economy-related industrial production and infrastructure growth to sustain 6%-7% GDP growth in relevant sectors. - Continued capacity expansion with capex doubling over next 2-3 years to support growing demand in both automotive and industrial segments.

- SKF India expects continued improvements in EBITDA, PBT, and higher growth post-demergers for automotive and industrial entities (Page 6). - For FY '25 and FY '26, margins are expected broadly in the 16%-19% PBT range, similar to FY '24 levels, despite increased capex and investments (Pages 7, 9). - Operational efficiencies, portfolio pruning, and pricing strategies are key drivers for margin expansion in the medium term (Page 9). - Localization efforts, especially in industrial bearings, aim to increase from ~30% to ~70%, which should improve margins over 3-4 years (Pages 12, 14). - Capex is expected to double to INR 250-270 crores over the next 2-3 years to support capacity expansions in both segments, potentially enhancing future earnings (Pages 8, 13). - Industrial segment margins projected to align closer with global industrial bearings margins of around 16%-17% EBITDA over time (Page 12).

- SKF India Limited currently has orders in hand that will be invoiced over the next few months. - There is a focus on managing inventory better through advanced forecasting and Sales & Operations Planning (S&OP) processes. - Efforts are ongoing to tighten policies for improved inventory management. - The buildup in inventory is partly to support automotive OEM customers anticipating higher demand. - Some inventory buildup is also related to expected orders in industrial segments like railways. - Overall, the company is optimistic about demand and is proactively preparing to meet it with appropriate inventory and capacity planning.

- The company plans a capex investment of approximately INR 250 to 300 crores over the next 2 to 3 years, doubling the current capex of around INR 130 to 150 crores annually. - The capex is aimed at expanding capacity for both automotive and industrial segments, including setting up a new plant in Pune for industrial bearings. - There is no explicit mention of new fundraising through debt or equity in the available transcript. - The company focuses on capacity expansion and localization but does not disclose specific plans for raising funds via debt or equity.