Freudenberg is investing Rs 210 crore or $3 million in a greenfield plant in Chennai, India to cater to its automotive customers in the region. This is the first investment of the group in Chennai which hosts several OEMs and Tier I suppliers to the automotives industry. Under construction, the new plant will sit on a 13 acre site near Chennai and is likely to start production by first quarter of 2019. It will manufacture high-quality sealing and vibration control solutions for the automotives and other sectors.
Speaking on the new investment in India, Georg Graf, regional representative India, Freudenberg group says, “We are on track, our new facility in Chennai is an important step-not only to the group but also to underline our long-term commitment to the local market and to support the ‘Make in India’ initiative.
The automotives segment is a major segment for Freudenberg in India, accounting for about 60% of its sales in the country. In 2017, Freudenberg India registered a revenue of more than $400 million and this figure is growing 25% per years. The group has been recording a healthy growth of over 20% over the last five years and is bullish on its growth in India, which is backed by strong demand for its products.
“The new investment will contribute to the sustainable growth of the entire group, both operational and strategic. 2017 was a successful year for Freudenberg group worldwide. The Indian market played a key role in our existing and future operations, and our diversified and innovative portfolio caters to the demands of India’s industry”, says Graf.
Freudenberg group is operating in India for over 90 years with seven business groups, 14 production facilities with six R&D centres and employing nearly 2,688 employees at around 50 locations.
Freudenberg group in India develops and produces seals, vibrations control technology components, filters, nonwovens, release agents and specialty lubricants. Besides the automotive sector, the group caters to mechanical, plant engineering, textile, clothing, construction, mining, energy, chemical, oil and gas etc.