Schaeffler India strengthens manufacturing footprint with inauguration of its fifth facility in Shoolagiri, Tamil Nadu

2025-05-29 | Hosur

• The fifth manufacturing facility will produce conventional and hybrid powertrain components
• Within land plot of 108,000 sqm, Phase 1 of 16,500 sqm is expected to reach full ramp-up by Q4 CY2025
• Steady investments reflect Schaeffler India’s commitment to strengthening stakeholder value

Schaeffler India Limited (BSE: 505790, NSE: SCHAEFFLER), a leading motion technology company, has announced the inauguration of its fifth manufacturing facility in Shoolagiri, Tamil Nadu, India. Dedicated to producing powertrain and chassis components and futuristic technologies, the facility at Shoolagiri marks a significant milestone in the company’s expansion strategy. The inauguration ceremony was graced by Mr. Georg F. W Schaeffler, Chairman of the Supervisory Board and Family Shareholder, Schaeffler AG; Ms. Eranti Sumithasri, Chairperson of the Board of Directors, Schaeffler India Limited; Matthias Zink, CEO Powertrain & Chassis, Schaeffler AG, and Mr. Dharmesh Arora, Regional CEO Asia Pacific, Schaeffler AG.

A new address to drive tomorrow’s mobility innovation

As part of Schaeffler India’s strategy to address growing market demands within the automotive industry, the 16,500 sqm manufacturing facility will serve as a hub for production and expansion of conventional and electrified powertrain technologies, including planetary gear systems, hybrid transmission components, and new emerging innovations primarily catering to the Indian market.

With the new manufacturing facility, the company also aims to increase its transmission component capacity significantly. It will also serve as a key contributor to the company’s expansion strategy for new products and advanced technologies, supporting its long-term global growth objectives.

Matthias Zink, CEO Powertrain & Chassis, Schaeffler AG, says: “India is a key market for Schaeffler. The new facility is a significant step in our efforts to expand our global manufacturing footprint and further localization in the region. It supports our long-term growth vision and positions us to better cater to the rising market demands and grow with the Indian market.”

Mr. Harsha Kadam, Managing Director and CEO, Schaeffler India Limited, added: “The inauguration at Shoolagiri exemplifies our commitment to expanding our capacities and competencies in India, enabling us to better meet the evolving needs of our customers. With the expansion of our production facilities, we are well-positioned to cater not only to the present local markets but also future needs as we transition towards E-mobility. We remain committed to the country’s ‘Make In India’ initiative, while embracing sustainable practices. It also underscores the Schaeffler Group’s focus towards India as a strategic growth driver”.

The inauguration of the Shoolagiri facility joins Schaeffler India’s four manufacturing facilities in the country and its three research and development centers. As compared to the initial commitment of ₹1,500 crores, Schaeffler India has invested ₹1,700 crore over last three years (from 2022 to 2024) to expand its local capabilities in India. This includes the expansion of new product lines for powertrain solutions, e-mobility solutions as well as large and medium-sized bearings for industrial applications.

Schaeffler India also strengthened its presence in the digital automotve aftermarket space, with the acquisition of KRSV Innovative Auto Solutions Pvt Ltd (Koovers), a B2B e-commerce platform in 2023.

Mr. Harsha Kadam adds: “As the industry continues to evolve against an increasingly complex environment, we remain committed to strengthening capabilities in India with our ever-evolving motion technology portfolio to seize emerging opportunities and retain our competitive edge.”

Sustainability strategy at the core

Schaeffler India aligns with Schaeffler Group’s global strategy on sustainability as a license to operate. With this commitment, even the Shoolagiri facility has been designed based on a holistic sustainability framework as part of a vision to transform the facility into a world-class manufacturing hub.

The facility incorporates several green features such as natural daylight utilization, battery-operated material handling equipment, rainwater harvesting, zero liquid discharge with reuse systems, and energy-efficient equipment with eco-mode functionality. Additional measures include waste heat recovery, 100% LED lighting, digitalized operations, ergonomic workstations, and a work environment aimed at being a diverse and inclusive. ”