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Freudenberg India to invest Rs 111 Crore to set up automotive sealing facility in Chennai

Freudenberg

Freudenberg India, a subsidiary of German automotive solution provider, is setting up a green field production facility near Chennai to produce innovative sealing solutions for the automotive industry, among other products.

The German technology major is investing Rs 111 crore in the new plant and will start the construction of the new facility in autumn 2017.

The new production site is located in the Vallam-Vadagal Industrial Park, , 50 kilometers to the southwest of the city of Chennai.

The land acquired consists of more than 56,000 square meters 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.

Dr. Mohsen Sohi, Freudenberg Group CEOAddressing a press conference in Bangalore today, Dr. Mohsen Sohi, Freudenberg Group CEO, said,  “With our plan to invest in a new production facility in Chennai,  we underline our long-term commitment to the local market and support the ‘Make in India’ initiative,”

In India, Freudenberg’s seven Business Groups generated sales of Rs. 1,483 crore, 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 Rs  62 crore in India. Investments were made across the board, at all Freudenberg Business Groups, in manufacturing and research facilities and equipment,” said Georg Graf, Freudenberg Regional Representative India.

Over the past five years Freudenberg has invested a total of Rs 363 crore.

Outlook for 2017

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 year’s 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.

Click here to read all Freudenberg related developments  in India

About Jaishankar Jayaramiah

Jaishankar Jayaramiah is a well-known India-based award-winning international Journalist and columnist, who is familiar for his multi-subject expertise, especially in business Journalism. Many of his write-ups remained as game changers in the Indian trade industry while also guiding the government to chalk out its policies. An Engineer-turned Journalist Jayaramiah has worked for Autocar Professional, The Financial Express, The New Indian Express and Automotive World among others before joining Automotive India News. He has extensively traveled across the country, writing on multiple subjects and also visited countries like Germany, Italy, Japan, China, Taiwan, Singapore, Thailand, Hongkong, Sri Lanka, Maldives etc. Don’t wonder if you find a story on coffee or agriculture or even on politics when you Google his details as he has written on almost all subjects during his 18-year journey so far in Journalism. While keeping automotive as main beat all along his career, he has also covered all other verticals under Old & New Economy. For the past few years, he has been focusing only on B2B Automotive niche. Personally he likes to write more on the government policies; international trends related to automotive industry and new auto technologies.

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