An International company is increasing activities in countries such as India for engineering activities not only for India but for the Group in total, not for cost reasons but for access to the highly qualified labor pool here. This is their strategy now to face global competition.
As a result in 2007, 18 per cent of SKF’s net sales came from Asia and another 13 per cent from other emerging regions such as Latin America and East Europe.
However, a part of sales in the more developed economies of West Europe and North America are to customers building equipment which has a final destination in emerging markets. Therefore a little over 40% of the Group sales are destined to emerging markets. It is expected the growth for emerging markets to continue on a good level.
Sustainability is a guiding light for our company in all that we do, both in how we develop our business and also how we run our operations. But it is not a recent development. However, they have found the word Sustainability a difficult word for all our employees to grasp so within the company we use another term, calling it “SKF Care”.
It has four dimensions Business Care – ensuring to give the right return to our shareholders. Environment care in reducing the negative impact has on the environment at the same time as helping our customers reduce their energy consumption. Employee care which means focusing on both health and safety within SKF as well as in developing the skills of our employees. And last but not least Community Care which is playing an active role in the communities in which we live and operate in. These four dimensions make up SKF Care. Let me comment a little more on Environment care.
In concrete terms this means that they are actively reducing carbon intensity and energy intensity within own facilities. For example, we have a target to reduce CO2 emissions with 5% per annum in absolute terms, despite production increases. Last year achievement was a reduction of 2.2% despite increasing production more than 12%. This year they are already in line with a target of 5% absolute reduction.
They are also actively developing products and services to lower customers’ environmental impact. They have a family of energy efficient bearings as well as a range of energy efficient solutions and service offerings aiming at different customer segments. The combination of reducing own CO2 emission while helping customers reduce their CO2 emissions is part of a strategy called ‘Beyond Zero’.
India has been and continues to be an important market for SKF. They have been present in the country since 1923 and have been manufacturing in India for 40 years. In recent years it has changed a lot. It is now developing very fast as a market both to operate in and also as a source of talent and knowledge for global business.
The population in India is young and highly qualified which means that increasing their presence particularly in the field of research, development and engineering. There are also many global leading companies in this market such as Tata Group, Suzlon Group, Hero Honda to name just a few because the list is growing all the time. This means that India is and will increasingly become an even more critical market place and source of talent for the SKF Group.
The key to developing your company whether through acquisitions or organically is to have a clear strategy and financial targets all based on the requirements from stakeholders. And then to implement recognising the strengths that different cultures bring to your company
They have had a fantastic first hundred years and are the global leader in their business. SKF Company has been built on a strong customer focus, a drive in innovation and is truly global with full respect for the different cultures. Their employees, today some 45,000 worldwide, have played a key role in the company being the company it is today and will continue to be so in the future also.