Schaeffler India targets double-digit growth; plans to invest Rs 1,000 cr in 3 years
Harsha Kadam, MD & CEO, Schaeffler India, on Friday, said that the company’s intention is to grow in double-digits. He mentioned that the company is looking to export key product lines in the industrial segment. On capex plans, he said that the company plans to invest Rs 1,000 crore in the next 3 years.
Harsha Kadam, MD and CEO, Schaeffler India, on Friday, said that the company’s intention is to grow in double-digits. He also mentioned that the company is looking to export key product lines in the industrial segment.
He said, "Our intention is to continue to grow in double-digits certainly, and the capex that we are already making is in line with that so that we continue to grow the market in double-digits."
"Talking about the industrial side of the business, while we do see demand in certain specific sectors, we have a very clear strategy to leverage cost competence and capability that exists in India to start exporting some of the key product lines. We will continue to make investments to grow our export business, which used to be in the range of 8-10 percent; we have reached a level of 14 to 15 percent and surely, we have plans to grow further on this number," he said.
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On capex plans, he said that the company plans to invest Rs 1,000 crore in the next 3 years. He also explained that the company has been making investments across a spectrum of applications in the automotive side.
"Coming to the investment part, we have a clear plan to invest Rs 1,000 crore in the next 3 years, which we will continue to do. On the automotive side, with the shift that has happened already from diesel to gasoline engine technology, we have been making consistent investments across a spectrum of applications, both in the transmission systems, which is mainly the clutch, as well as in the engine applications," he said.
Schaeffler India is an auto tech company, and has presence in the aftermarket and industrial spaces. The company recently posted its numbers. Its total revenue from operations for the December quarter came in at Rs 1,523.2 crore, up nearly 20 percent from the corresponding quarter of 2020 and 2.4 percent higher than the preceding quarter.
Meanwhile its net profit for the reporting quarter stood at Rs 190,6 crore as compared to Rs 141.6 crore on a year-on-year (YoY) basis. EBITDA margin also improved to 18.8 percent from 18 percent YoY.
On capacity utilisation, he said that the company is currently operating at 80 percent levels. However, it plans to make investments to augment capacity.
"We are running with 80 plus percentage of capacity utilization today. We will continue to make investments going forward and argument our capacity to ensure that we have enough headroom to deliver the much needed products in a growing market like India," he said.
On chip shortage, he mentioned that there was some slowdown caused by it. He explained that the passenger vehicle (PV) and two- wheeler segment got impacted by it.
On e-mobility, he said, "We will continue to make investments as demand grows in the electric vehicle space."
Watch the video for the full interview.
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First Published: Feb 18, 2022 1:23 PM IST
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