Freudenberg posts 32% YoY growth in 2014, plans bigger play in India

Global auto component major Freudenberg Group has posted overall sales of Rs 1,497 crore in 2014 in India, a growth of 32.8 percent over 2013.

The German company, which specialises in specialty lubricants and auto components including filters and non-woven products, has outlined plans for bigger play in the Indian auto segment.

Interacting with media persons in Bangalore last week, Dr Jorg Matthias Grossmann, regional representative India for the Freudenberg Group, said, “As of December 31, 2014, Freudenberg employed 2,800 full-time associates at around 50 locations in India – with four R&D centres and 14 production sites with state-of-the-art shop-floors. With that and various initiatives Freudenberg supports the national ‘Make in India’ programme of prime minister Narenda Modi, which aims to turn the country into a global manufacturing hub.”

The Freudenberg Group operates 11 business divisions in the country. Most of them cater to the automotive industry along with energy, chemicals, medical, textile, mechanical and plant engineering and consumer markets.

Of its plant sites in India, Mysore plays a key role as three of its main brands of special lubricants, release agents and chemotechnical maintenance products under the Klüber, OKS and Chem-Trend brands respectively for use in the automotive and infrastructure, energy and food industries.

Grossman said the company has invested Rs 135 crore at the new production site of Chem-Trend and Klüber Lubrication in Mysore, which will be officially inaugurated in the next two months. He added that its Indian JV, Sigma Freudenberg NOK has opened its second factory in Basma in Punjab to manufacture radial shaft sealing rings and O-rings for the automotive sector and general industry.

The growing demand in a number of segments – automotive, agricultural and construction machinery, mining, power stations, and the steel industry – made the construction of a second production facility essential, he added.

“India is a market of considerable potential for the Freudenberg Group and the country makes a considerable contribution to the Freudenberg Group’s innovative strength. We are therefore committed to systematic investment in this region over the long term. In 2014, the Group made local investments totaling to Rs 97.6 crore in India,” said Grossmann.

Total global sales of the Freudenberg Group amounted to Rs 56,860 crore or €7,039.1 million (2013: €6,662.5 million), representing growth of €416.6 million or 6.3 percent over the previous year, thus resulting in global record sales for the fifth consecutive year.

Overall, Freudenberg expects a successful year in 2015, with sales growth outpacing the market. The high quality of innovative products aimed specifically at meeting the needs of the Group`s customers, is expected to generate further growth in India.

The Freudenberg Group employs around 40,500 people in its operations across the world.