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FHP Establishes Indian JV

June 29, 2009

Cleaning products companies to target emerging market.

Freudenberg Household Products is the latest company to focus its growth strategy toward India. Its subsidiary Freudenberg Household Products and Gala Brush Limited, a leading Indian manufacturer of cleaning products, have signed an agreement to build up a production and sales joint venture.

The new company, Freudenberg Gala Household Products, will be located in Mumbai and take over Gala Brush’s current 200 employees. Construction of a modern plant using Gala Brush and FHP technologies is planned for 2010 in India. FHP holds a 60% share of the company.

"This joint venture continues our proven concept of long-term relations with local family companies," Peter Bettermann, speaker of the Freudenberg Management Board, said. "Values such as trust, reliability, responsible entrepreneurship and a high level of customer orientation have characterized both of our companies for many years."

The joint venture will operate both in the "consumer" and "professional" cleaning business in India, managed by an experienced management team of Gala family members and Freudenberg employees. The joint venture of two successful family companies will form a strong basis to build up a leading position in the growing mechanical cleaning market in India under the brands Gala and vileda.

"The two companies complement each other perfectly. The joint venture will form a strong platform to combine Gala Brush`s strong sales and customer network on the Indian market with FHP`s international expertise and customer relationships. We can now also provide our customers in India with our worldwide proven full service offering for the retail market," said Klaus Peter Meier, president and CEO of Freudenberg Household Products.

Gala Brush Limited is a 50-year old family company now managed by the third generation of family members. The company develops produces and markets high-quality mechanical household cleaning products in India under the Gala brand name. The product range includes cleaning systems and cloths for the “consumer" and "professional" business segments. The company employs 200 people at four sites in India.

"Together, we can continue to expand our position on the fast-growing Indian market with Freudenberg's international expertise, technical know-how and innovative products," stated Chandrakant Gala, designated President of Freudenberg Gala Household Products Pvt. Limited.

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