With a focus on fully digital operations, SKF is paving the way for digital monitoring, proactive analysis, and action
India is one of the fastest growing construction markets in the world and the country has the most infrastructure projects, following by the US and China. The economic growth is leading to an increased demand for better infrastructure, including improved road connectivity. With coal usage increasing to offset the global energy crisis, mining activities are also increasing.
– SHAILESH SHARMA
Director Operations, Industrial Region, SKF India and Southeast Asia
What is your outlook for the Indian component manufacturers of construction and mining equipment?
India is one of the fastest growing construction markets in the world and the country has the most infrastructure projects, following by the US and China. The economic growth is leading to an increased demand for better infrastructure, including improved road connectivity. With coal usage increasing to offset the global energy crisis, mining activities are also increasing. Demand for Indian-manufactured construction equipment is evolving globally with exports witnessing a growth of 60% YoY in FY22. As heavy-duty commercial EVs gain traction and automation takes hold in construction operations, we expect demand for an entirely new range of products and solutions to emerge as well. The outlook for the industry, therefore, looks positive, and provided there are no major economic shocks, the industry will continue to grow in the short and long term.
What is your strategy at a time when technological disruptions are rapidly defining businesses in the sector?
As the global economy moves towards sustainable development, Industry 4.0 is combining pioneering technologies and industrial processes to create intelligent and clean solutions and achieve decarbonization. SKF is leveraging Industry 4.0 and allied digital technologies in line with its initiatives to “digitalize the full value chain” and drive operational efficiencies in its manufacturing operations. SKF’s ‘Future Factory’ is bringing in visibility and traceability of materials for better planning and scheduling, generating insights from process data to ensure quality products, thereby reducing scrap. The company has also reduced average downtime by 15%. Predictive and preventive maintenance systems have helped SKF reduce corresponding costs by 20%. With a focus on fully digital operations, SKF is paving the way for digital monitoring, proactive analysis, and action.
As the year has ended, how do you look at the performance of your range of products (bearings) in terms of sales?
SKF’s products and solutions are witnessing strong demand from different sectors in the country. Our revenue in Q2 FY23 increased by 12% and PBT increased by 33% year-over-year. Despite the volatile operating environment, we continued to aggressively address costs, take pricing actions, and drive customer centricity to mitigate macro headwinds and position ourselves for growth.
What are the potential new areas for expansion and the proposed new launches for the year 2023?
We will continue to enhance our productivity, prioritize high-growth business segments, and sharpen our cash flow momentum to deliver improved margins and create long-term value for all our stakeholders. SKF is indigenously manufacturing several products and solutions to meet the demand for ‘Made-in-India’ products and solutions and will continue to leverage its state-of-the-art manufacturing footprint in India to produce more products locally. As the automotive industry transitions to cleaner fuel and EVs, we are helping OEMs reduce friction, noise, and pollution levels. We will continue to focus on electric vehicles, commercial vehicles, and aftermarket offerings. We are also working closely with our customers across sectors to create application specific offerings to meet their diverse needs.
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