Freudenberg India records Rs 1,553 crore turnover in 2015, targets 7-10% growth in 2016

Freudenberg, the global auto component major and technology group, has continued its positive business development trajectory in India. Its group sales in India last year have risen by 3.7 percent to Rs 1,553 crore from Rs 1,497 crore in 2014.

While the company caters to various industries, the bulk of its business comes from the automotive industry in India.

Given the current growth status of the Indian automotive industry and burgeoning demand for its range of products, Freudenberg India expects to achieve sales growth between 7-10 percent in 2016.

Addressing a press conference in Bangalore today, Dr Jörg Matthias Grossmann, Regional Representative India, Freudenberg Group, said around 40 percent of the company’s total India business came from the automotive sector – both from OEMs and the aftermarket. Freudenberg India’s varied product portfolio includes lubricants, releasing agents, cabin filters and vibration control systems. In comparison, the share of automotive goods in the Freudenberg Group’s total global business is 26 percent.

Focused on automotive

The German company has seven business divisions in India, the majority of them catering to the automotive sector. "We have completed another year of profitable and sustainable growth. And our companies in India will continue to grow, much faster than in most other regions of the world. Our share in total global sales should increase disproportionally," Dr Grossmann added.

The company’s global sales grew by 7.6 percent to 7.57 billion euros (Rs 53,730 crore), based on pro-rata consolidation of joint ventures.

As on December 31, 2015, Freudenberg employed around 2,800 full-time associates at around 50 locations in India – with four R&D centres and 14 production sites. Freudenberg has invested around Rs 300 crore in India in 2015, mainly to upgrade and expand its existing manufacturing as well as R&D facilities at almost all business groups. Freudenberg in India follows a strategy of continuous investment in R&D. “At our sites in Mysore, Pune and Mohali, the R&D facilities develop products tailored to the needs of our local customers,” said Dr Grossmann.

The biggest investment was made in a state-of-the-art production site, labs and warehouse in the existing specialty chemicals factory in Mysore. The facility was inaugurated in August and is owned by Klüber Lubrication India. It manufactures various specialty lubricating oils, greases, pastes, aerosols and release agents under the Chem-Trend, OKS and Klüber Lubrication brands, primarily for the automotive industry.

Furthermore, Freudenberg Sealing Technologies expanded its commitment in India. The company has been active in the market through its joint venture Sigma Freudenberg NOK in Mohali since 2001. In February 2015 a second, all-new factory in Basma was opened, where some 2,000 employees manufacture seals for the Indian market and for export.

“These two major investments with a total amount of more than Rs 290 crore in the past few years underscore our long-term commitment to India. Together with our partners, we will expand our presence and continue to invest in India,” concluded Dr Grossmann.