The company, which registered 25 per cent increase in sales in 2017 compared to 2016, will manufacture sealing products for automotive and other sectors.
Chennai, June 4, 2018
Freudenberg Group - a German family-owned diversified group of companies that make products such as housewares and cleaning products, automotive components, textiles, building materials, etc – has started construction work for its new Chennai plant. The project, which is coming up on a 13-acre site at Vallam Vadagal near Chennai, has cleared all the legal hurdles and construction work at the site has started, stated the company in a press release. The group is making an investment of around Euro 28 million or Rs 210 crores in the project. The plant, which will make sealing products for automotive and other sectors, it is expected to commence operations by the first quarter of 2019.
“We are on track. Our new facility in Chennai is an important next step - not only to grow, but also to underline our long-term commitment to the local market and to support the 'Make in India' initiative. These important decisions contribute to the sustainable growth of the entire Group. Both, operationally and strategically, 2017 was a successful year for Freudenberg worldwide. We are well on our way to being one of the most innovative and efficient technology companies,” said Georg Graf, Freudenberg Regional Representative India, at a press conference in Chennai on May 31, 2018.
The worldwide technology group Freudenberg has continued its good business development despite challenging economic conditions. In 2017, the German group boosted sales to Euro 9.3 billion or Rs 68,959 crore. That constitutes a rise of 18.3 per cent over the previous year. Freudenberg's business also performed strongly in India, with sales growing by 25 per cent to Rs 2,768 crore. This rise is the result of continuous investments in existing and new projects (including the new production facility in Chennai).
In India, Freudenberg's seven Business Groups have a total workforce of some 2,688 employees at around 50 locations - running six R&D centers and 14 production sites with state-of-the-art shop floors.
The company aims to balance its portfolio further towards generating one-third of sales each in Asia, North America and Europe. Graf said, "The Indian market plays a key role in our existing and future operations, and our diversified and innovative portfolio caters to the demands of India's industry.”
Innovation is key to Freudenberg's long-term corporate success. During the year under review, the Group globally invested more than ever before in innovation and conducted research and development activities in the amount of Rs 3,157 crore (previous year: Rs 2,764 crore). This corresponds to 4.6 per cent of sales (previous year: 4.3 percent). The share of products less than four years old reached 33 per cent. An average of 3,445 employees (previous year: 2,751 employees) were employed in research and development.
For Freudenberg, striving together for solutions that support global sustainability is part of its mission to improve living conditions all over the world. The Group's sustainability strategy is based on six core themes. They are materials, waste, energy, emissions, water and health. "Our solutions are already used in many India industries and we continue to support our local partners with innovative and sustainable products and processes,” said Georg Graf.
The Freudenberg Sealing Technologies' product portfolio is engineered to reduce weight, fuel consumption, emissions and ease installation challenges in today's start-of-the-art engines, transmissions and e-mobility platforms.
Freudenberg's sustainable solutions for the food and apparel industries are essential to the daily lives of tens of millions of Indians. High-performance specialty lubricants from Klüber Lubrication, a Freudenberg Chemical Specialities company, ensure the safe production of condiments and dairy products, while simultaneously lowering energy consumption and CO2 emissions.