'60% of what we produce here is localised'

SKF, the world's largest manufacturer of bearings, is splitting into two companies—one focused on industrial and one on automotive by 2026.

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Rickard Gustafson, president and CEO, SKF Group, tells Geeta Nair that the split will create two strong, independent companies. Excerpts How will the split work out in the Indian company?

It will be a 55:45 split between automotive and industrial. Our Haridwar and Bengaluru plants will be fully automotive, while Pune will house both. A new facility for the industrial sector will be established in Pune.

What will SKF India gain from the split in the business into two companies? This move will unlock business benefits for both sides, and as we progress, we are increasingly confident it's the right thing to do. When you try to combine both models under one structure, you risk being "good enough" in both, but not world-class in either. In today's highly competitive global market, that is not sufficient for long-term success.

So, you are saying the businesses require different approaches?