German automotive components major Wednesday announced merger of all its India operations-- INA Bearings India and LuK India--with Schaeffler India, creating an entity with over Rs 41 billion in revenue under its 'One Schaeffler' plan.
The automotive and industrial supplier also opened a new facility in Pune with an investment of Rs 2 billion.
The merger was first announced in August 2017 and is effective October 22.
The combined entity will offer a full range of mobility solutions in engines, transmissions and chassis components as well as a wide range of ball and roller bearings, housings and services across mobility and industrial applications shaping future mobility, the company said.
Schaeffler India, formerly FAG Bearings India, is traded on both the BSE and the NSE.
The combined entity becomes a leading automotive and industrial supplier with over Rs 41 billion in annual revenues and around 3,000 employees, it said in a statement.
Announcing the completion of the merger and opening the new Pune plant, Georg FW Schaeffler, chairman, group supervisory board, said, "the consolidation of our three entities here is a big step and in alignment with our approach of 'One Schaeffler' and will allow us to capitalise on the significant growth opportunities in this market.
The new production facility will boost local manufacturing capabilities of the Schaeffler group and will manufacture engine and transmission components to be serves both in the domestic as well export markets, said Klaus Rosenfeld, chief executive of Schaeffler AG.
Commenting on plans for India, Rosenfeld said, the Schaeffler group pursues a strategy of 'a global player with local presence' and remains committed to India as this market presents tremendous opportunities.
"This year alone, we've doubled our India investments to Rs 325 crore and will continue to do so for the next few years. This will significantly boost our capacity, capability and competency to serve our customers in the region."
Avinash Gandhi, Schaeffler India chairman said the merger also brings more visibility to the Schaeffler brand and that all company locations will receive a new uniform brand identity governed by the corporate brand Schaeffler which will help standardise the worldwide image of all their locations.
"This changeover is taking place as part of our global branding project, "Agenda 4 plus One", Gandhi said, adding the corporate brand will further strengthen and product brands of FAG, LuK and INA.
For the September quarter, the company reported a revenue of Rs 11.91 billion, up 18.7 per cent over the same period in 2017 and an pre-tax profit of Rs 1.78 billion, which is 20.9 per cent more than the year-ago period.
Schaeffler has been present in the country for over 50 years and operates four plants and 19 sales offices under its three major widely known product brands- - FAG, INA and LuK.
Its Maneja and Savli (Vadodara) plants produce a vast range of ball bearings, cylindrical roller bearings, and spherical roller bearing and wheel bearings and sold under the brand name of FAG, while the Talegaon near Pune plant, manufactures engine and transmission components for front accessory drive system, chain drive systems, valve train, shift systems and a range of needle roller bearings and elements, under the brand INA.
The fourth plant in Hosur produces a range of clutch systems for passenger cars, light commercial vehicles, heavy commercial vehicles and tractors sold under the brand of LuK.