The worldwide technology group Freudenberg has continued its good business development despite challenging economic conditions. In 2017, the German group boosted sales to €9.3 billion or Rs. 68,959 crores. That constitutes a rise of 18.3 per cent over the previous year. Freudenberg’s business also did well in India, with sales growing by 25% to Rs. 2,768 crores. This rise is the result of continuous investments in the existing and new projects. One example is a 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. “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,” said Georg Graf, Freudenberg Regional Representative India, at a press conference in Chennai. The project has cleared all the legal hurdles, and construction work at the site has started. The total investment is around 28 million Euro or Rs. 210 crores.
“These important decisions contribute to the sustainable growth of the entire group. Both operationally and strategically, 2017 was a successful year for Freudenberg worldwide,” Graf added. “We are well on our way to being one of the most innovative and efficient technology companies.”
The company aims to balance its portfolio further towards generating one-third of sales each in Asia, North America and Europe. Graf disclosed: “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 invested more than ever before in innovation and conducted research and development activities worth Rs. 3,157 crores (previous year: Rs. 2,764 crores). This corresponds to 4.6 per cent of sales (previous year: 4.3 per cent). 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.
Sustainability
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 – materials, waste, energy, emissions, water and health. “Our solutions are already used in many Indian industries and we continue to support our local partners with innovative and sustainable products and processes”, Georg Graf added.
The Freudenberg Sealing Technologies’ product portfolio is engineered to reduce weight, fuel consumption and emissions and ease installation challenges in today’s state-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.