Timken India Limited, a major auto bearing manufacturer, is set to close its Jamshedpur factory for a week from August 25 to September 3 due to poor demand, according to a corporate filing.
The news comes just days after the Jamshedpur plant's TS and roller lines were shut down for scheduled maintenance on July 24-29.
Timken, headquartered in Bengaluru, is a leading supplier of bearings to the automotive and other industries, including tapered roller bearings (TRB), spherical roller bearings (SRB), plain bearings, cylindrical roller bearings (CRB), needle bearings, and slewing rings, from its facilities in Jamshedpur and Bharuch.
The reasons for the poor demand at the Jamshedpur plant are unclear, but it is likely due to a combination of factors, including the moderation of upcycle in commercial vehicle and off-road segments, combined with the overall slowdown in the Indian economy.
In contrast, Timken is investing in its Bharuch plant. The company is spending Rs 600 crore to expand the plant and add new production capacity. The new facility will manufacture SRB, CRB, and components thereof. Commercial production is set to begin in January 2025. The expansion of the Bharuch plant is a sign of Timken's confidence in the long-term growth prospects of the Indian automotive industry. The company believes that the demand for bearings will continue to grow in India, as the country's economy expands and the automotive industry recovers from the current slowdown.
The global bearing market is also expected to grow in the coming years. The market is anticipated to grow at a CAGR of 10.6% from 2023 to 2030. The increasing demand for bearings from the automotive, aerospace, and industrial sectors is what is driving this growth.
While the closure of the Jamshedpur plant is a setback for Timken, analysts claim the company is still well-positioned to benefit from the growth of the global bearing market. The expansion of the Bharuch plant will help Timken meet the growing demand for bearings in India and other emerging markets.