SKF India Ltd. informed the exchnage that it’s board of directors had approved the demerger of its automotive and industrial businesses. The decision was made to streamline its operations through this corporate restructuring.
A corporate restructuring committee has been assigned the task of preparing a detailed scheme for the demerger. According to the exchange filing, the scheme will be presented to the board and disclosed to the stock exchanges before a final decision is made.
As part of the restructuring, SKF India will create a new wholly-owned subsidiary to handle the industrial segment, with an authorized share capital of ₹15 lakh. Upon incorporation, SKF India will fully own the subsidiary’s issued and subscribed share capital.
The company’s focus spans five key areas: bearings and units, seals, lubrication, condition monitoring, and maintenance services.
Earlier, SKF India’s parent company, AB SKF, had announced plans to demerge its automotive business and list it separately on the Nasdaq Stockholm.
This demerger aims to enhance operational efficiency and allow both divisions to focus on their respective growth opportunities.