BENGALURU, May 22, 2017 /PRNewswire/ --
Freudenberg CEO announces big investment in Chennai
The Freudenberg Group continued its profitable growth in 2016 despite challenging conditions in multiple market segments and world regions. The global technology group achieved sales of €8.6 billion or Rs. 63,835 crores, based on the pro-rata consolidation of joint ventures. That represents an increase of 13.5 percent compared to 2015. Freudenberg also continued its positive business development in India. "With our plan to invest in a new production facility in the city of Chennai we underline our long-term commitment to the local market and support the 'Make in India' initiative," said Dr. Mohsen Sohi, Freudenberg Group CEO, at the press conference in Bengaluru.
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Freudenberg continues to grow profitably and sustainably. The implementation of strategic projects is proceeding fully in line with the company`s plans. "This success is the result of the hard work and excellent performance of our more than 48,000 employees worldwide. We are on track to become one of the most innovative broadly diversified global technology groups," stated Dr. Mohsen Sohi, Freudenberg Group CEO .
In India, Freudenberg's 7 Business Groups generated sales of Rs. 1,483 crores, an improvement of 20 percent compared to the previous year. Employee numbers rose by 17 percent to 2,475 employees at around 50 locations in India - with six R&D centers and 14 production sites with state-of-the-art shop floors. This increase in sales and employees can be attributed to a large extent to the acquisition of Vibracoustic. The Business Group operates production, sales and service sites in India.
"In 2016, Freudenberg invested €8.6 million or Rs. 62 crores in India," said Georg Graf, Freudenberg Regional Representative India. "Investments were made across the board, at all Freudenberg Business Groups, in manufacturing and research facilities and equipment." Over the past five years Freudenberg has invested a total of Rs. 363 crores.
And Freudenberg continues to invest in India. The Group plans to start the construction of a new production facility in autumn 2017, 50 kilometers to the southwest of the city of Chennai. The total investment is 15 million euro or Rs. 111 crores. The site, located in the Vallam-Vadagal Industrial Park, plans to produce innovative sealing solutions for the automotive industry, among other products. The land acquired consists of more than 56,000 sq. metres - with the capacity for further site development. As a global market leader for automotive seals Freudenberg wants to best serve its customers in the strong automotive hub of Chennai.
Corporate citizenship
"As a values-oriented technology company, success for Freudenberg means not only being financially successful but also taking responsibility for society," said Dr. Mohsen Sohi,Freudenberg Group CEO . Corporate citizenship goes beyond the value chain. The objective of the 'e²' (education and environment) international program is to give people access to education and work and to encourage environmental protection. To that end Freudenberg is making a total of €12 million or Rs. 86 crores available over 6 years. From the launch of the initiative in summer 2015 up to the end of 2016, funding in the amount of about €2.6 million or Rs. 19 crores was approved for 36 projects, from small actions to major education programs in the direct neighborhood of Freudenberg sites.
As part of its e² program, the Freudenberg Group and its local employees are fostering the education of poor children in Bengaluru. The Group is contributing financially to the Parikrma Humanity Foundation, a non-profit organization that local Freudenberg employees in India have been visiting over the years. Parikrma runs four centers for learning, including a kindergarten and school as well as a junior college, and has a clear mission: providing under-privileged children from the slums of Bengaluru with a high quality education, excellent English language skills and the confidence to dream big - even about international careers.
Outlook for 2017
On the basis of its current assessment, despite all the challenges faced, the Freudenberg Group expects global organic growth in sales of between 1.0 and 3.0 percent and profit from operations slightly above the previous years figure. Almost all Business Groups are likely to contribute to this performance. On the basis of this forecast, Freudenberg expects stable development in its return on sales. The Freudenberg Group forecasts profitable double-digit growth in India for 2017.
About Freudenberg in India
Freudenberg has held business ties with companies in India for more than 90 years. The Group employs some 2,500 associates at 50 locations. Freudenberg in India recorded sales of Rs. 1,483 crores in 2016. For further information please go to http://www.freudenberg.in.
About the Freudenberg Group
Freudenberg is a global technology group that strengthens its customers and society long-term through forward-looking innovations. Together with its partners, customers and research institutions, the Freudenberg Group develops leading-edge technologies and excellent products and services for more than 30 markets and for thousands of applications. Strength of innovation, strong customer orientation, diversity, and team spirit are the cornerstones of the Group. The 168-year-old company holds strong to its core values: a commitment to excellence, reliability and pro-active, responsible action. In 2016, the Freudenberg Group employed more than 48,000 people in almost 60 countries worldwide and generated sales of approximately €8.6 billion. For more information, please visit http://www.freudenberg.com.
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