Bearings are not only used in turning wheel of your car and bike but its being used to move trains , elevators, construction machines etc. Bearings are key element in machinary that defines how much power a machine will consume and produce. Hence with skyrocketing patrol prices its becoming more critical.

SKF is biggest bearing company in India backed my technology from its multinational parent SKF. SKF sales grew from 500 cr in 04 to 1700 cr in 08. Operating profit margin at 16%. SKF deservers premium due to it's brand and quality. At current market price of 277 stock is attractively trading at multiple of just 11.

The Bearings Industry in India can be divided into two segments - the organized sector and unorganized sector. The organized sector primarily caters to the original equipment manufacturers' (OEM)
segment, which are predominantly automotive, railways and other industrial users. The unorganized sector primarily caters to the replacement market and continues to serve the very low-end market as
well as forms the core of the counterfeit product in the market. With a renewed focus on quality & reliability, the replacement market is increasingly turning to the organized sector. The bearing industry in
India is estimated to be around Rs. 5000cr in size. The demand for bearing industry is derived from - demand in two key user segments -automotive and industrial sector. The automotive industry is the largest
user segment for Indian bearing market accounting for almost 50% of demand. India is one of the fastest growing passenger car markets in the world and it is already the second largest two-wheeler
manufacturer globally. The automotive industry is worth $28 billion, while the auto component industry is pegged at $10 billion. Automotive Mission Plan (AMP), prepared by the Ministry of Heavy Industries -
Public Enterprises, visualizes India emerging as a destination of choice in the world for the design and manufacture of automobiles and auto components, with output touching $145 billion, accounting for more
than 10% of the country GDP, by 2016.

Company The SKF Group is one of the leading global supplier of products,solutions and services in the area comprising rolling bearings, seals,mechatronics, services and lubrication systems (market share of approx
28%). The Group's service offer also includes technical support,maintenance services, condition monitoring and training. SKF’s business is organized into three divisions; Industrial, Automotive and Service.
SKF has 110 manufacturing sites distributed all over the world and its own sales companies in 70 countries. SKF is also represented in 140 countries through some 15000 distributors and dealers.