Dear Stakeholders,

2024 marked a year of resilience for Schaeffler India. Your organization demonstrated remarkable spirit to fulfil its commitment towards responsible and sustainable growth. Guided by customer centricity and an innovative spirit, the Company desires to continuously introduce new products and solutions to the field of motion and mobility. Schaeffler India’s journey from a bearings manufacturer to being a ‘Leading Motion Technology Company’ enables it to provide products and solutions across the entire spectrum of motion.

I am happy to share that Schaeffler India reported solid financial results, driven by performance across all its businesses. It continued to benefit from investments in expanding its manufacturing facilities and enhancing its product portfolio to cater to growing market demands. Over the past year, Schaeffler India has strengthened its market position through innovation in sustainability and commitment to community and employee engagement, setting a strong foundation for future growth.

Economic overview
Despite persistent global headwinds, including the ongoing conflicts in Europe and the Middle East, the world economy was well placed to avoid recessionary pressures. As inflation moderated, major central banks, including those in the US and Europe, began calibrated rate cuts while maintaining prudent oversight. India’s growth trajectory, though slightly moderated from FY24, remains on a steady growth path. India is expected to have grown 6.4% in FY25 and for FY26, the RBI expects the country to grow between 6.3% to 6.8% following expansion in private capital expenditure.

As the world’s third-largest vehicle market, India’s automotive sector continues to be a crucial economic driver. While India witnessed strong growth in two-wheeler sales, particularly in the EV segment, other sectors faced varying challenges – from high inventory in passenger vehicles to declining commercial vehicle sales and regional variations in the tractor segment. However, your company was able to outperform industry growth through its focus on winning new businesses.

India is giving impetus to e-mobility through various schemes like subsidies for electric vehicle production, PLI scheme, and changes in the operating environment including tightened emission regulation norms, improvement of charging infrastructure, procurement of e-buses among others. With the competence and capability of Schaeffler India on offerings for components, sub-systems, and systems to OEMs, the organization is well placed to develop drive system technologies for both Battery Electric Vehicles (BEVs) and Hybrid Electric Vehicles (HEVs). Leveraging strong partnerships with key market leaders, Schaeffler India is uniquely positioned to seize emerging opportunities in this arena.

The automotive aftermarket landscape in India is experiencing a dynamic shift, fuelled by rapid urbanization, increased vehicle ownership, and shifting consumer preferences. As OEMs expand access to their parts beyond authorized dealerships, the aftermarket enters a new era. The advent of digital platforms and technology is redefining the market, providing greater access to products and services. Schaeffler India is strategically positioned to seize these emerging opportunities in one of the world’s fastest-growing automotive markets with its focus on delivering enhanced operational efficiencies, customized logistics solutions, and improved strategic focus is creating significant value for its customers.

The industrial landscape in India is expanding rapidly propelled by rising infrastructure development and industrialization. The need for highperformance, precisely built bearings is increasing as a result of Industry 4.0 and smart manufacturing. The railway industry is modernizing through large investments in high-speed train routes, electrification, and enhanced connection to satisfy the demands of rapidly increasing urbanization and economic growth. The industry is also witnessing a shift towards environmentally sustainable solutions. Favorable government regulations and a drive to lower carbon emissions are helping the renewable energy sector grow. All these developments are transforming India a pivotal hub for manufacturing and industrial development.

Schaeffler India has remained strategically focused to strengthen the foundation of a value-led organization. And sustained efforts for growth, innovation, operational excellence and advancing the ESG agenda has helped the company to shape a resilient business.

 

 

Prioritizing sustainability
At Schaeffler India, sustainability remains at the core of its business strategy. Over the past year, we have continued to make significant strides to advance its ESG focus across all aspects of operations. The Jal Sahara initiative has been expanded to reach more places, there has been an increased focus on employee well-being and safety, all while maintain an unwavering commitment to transparency and integrity in business conduct.

Schaeffler India remains steadfast in its commitment to minimizing environmental footprint and mitigating the impact of business activities on the planet. Dedication to implementing impactful energy efficiency and water conservation measures remains unwavering, as it continues to strive for a more sustainable future.

In 2024, the scope of CSR projects was expanded further to support initiatives for water conservation, skill development, enhancing the quality of education in rural India and improving community health. These efforts have not only empowered to delegate responsibility towards communities but also helped to strengthen the social fabric of the areas where we operate. Learning that Schaeffler India has been honoured at multiple forums for excellence in CSR and ESG leadership through its skill development programs fills me with immense pride.

At Schaeffler India, stakeholder trust is built on robust governance practices anchored in integrity, accountability and business ethics. Led by the experienced leadership team and Board of Directors, we believe in upholding the highest standards of corporate governance to sustainably create value for stakeholders across the organizational vertical.