SKF India To Spin Off Automotive and Industrial Units

SKF, the Swedish global leader in bearings and seals, has announced plans to separate its automotive business from its industrial division, setting them on separate lines going ahead. The automotive business will be listed independently on Nasdaq Stockholm by mid-2026. This  is all about giving each business the freedom to grow and make faster decisions.

Why the Split?

Think of this split like a workout routine tailored to two very different goals. The automotive division is facing a rapidly changing market—new technologies, electric vehicles, and shifting consumer demands. By separating, this division will have the flexibility to adapt more quickly to these changes, allowing it to make sharper, independent investment decisions. On the flip side, the industrial division, which already enjoys higher margins, will be able to zero in on its strengths and continue its work as a leader in industrial technology.

By the Numbers

Let’s talk numbers. In recent years, SKF’s automotive division pulled in more than SEK 30 billion (about Rs.24,000 crore) with an operating margin of 5.6%. Meanwhile, the industrial segment got more thain SEK 73 billion (around Rs.60,000 crore), and its margins were far healthier at 15.4%. This split gives both divisions a shot at playing to their strengths, automotive can get lean and mean for the future, while industrial can double down on what it already does best.

What’s in it for SKF India?

For SKF India, the parent company’s decision could be a game-changer. The automotive segment currently makes up around 40% of SKF India’s sales, while the industrial business leads with 51%, with 9% from exports. This split means both segments could see better profitability and faster growth. The industrial side, in particular, has been thriving, especially in industries like railways and heavy manufacturing. 

Timelines & Analyst Takes

This is expected to be completed by 2025, with the automotive division listing by mid-2026. Back home, SKF India’s board has already set up a committee to evaluate how the split will unfold locally. Analysts are optimistic, with firms maintaining ‘buy’ and ‘add’ ratings on SKF India’s stock. 

Conclusion: Splitting SKF’s automotive and industrial businesses is a move that positions both segments to work on their own terms. For SKF India, this could lead to better profitability, quicker growth, and more focus on each division’s strengths and resources. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.