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.
Addressing 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.